LONDON, Oct. 23 (UPI) -- BP's profits continue to fall with a 45 percent drop in third-quarter profits to $3.87 billion largely due to issues at its U.S. refineries, the company said.
Analysts expected something negative to happen after Tony Hayward, the oil giant's chief executive, reportedly described BP's September operating performance as "dreadful." Still, the loss in profit was higher than expected, analysts said, with BP's profits between July and September down 26 percent.
BP's Refining and Marketing division profit dropped from $1.5 billion to $376 million, also because of operational difficulties and an increase in maintenance and repair costs. Also to blame are several recent safety incidents, including a fire at a Texas refinery and several leaks and explosions that have marred BP's image.
"Realized refining margins were lower due to the effects of narrowing light heavy crude differentials," the company said in a statement.
As a result, BP's three main divisions will be reduced to two. The Gas, Power and Renewables will be dissolved into the Exploration & Production and Refining & Marketing divisions.
