British energy giant, BP plc (BP - Analyst Report) reported third-quarter 2014 adjusted earnings of 99 cents per American Depositary Share (ADS) on a replacement cost basis, excluding non-operating items. The bottom line came above the Zacks Consensus Estimate of 90 cents but decreased from the year-ago earnings of $1.17.

BP's total revenue decreased to $94,767 million in the quarter from the year-ago level of $98,203 million.
 
Dividend Hike
 
BP raised its quarterly dividend to 60 cents per ADS. The new dividend would be paid on Dec 19 to ADS holders as of Nov 7.
 
Production and Price Realization
 
Total production of 2.147 million barrels of oil equivalent per day (MMBoe/d) was down 2.7% year over year.

The company sold liquids for $91.42 per barrel in the third quarter (versus $100.66 in the year-earlier quarter) and natural gas for $5.40 per thousand cubic feet (versus $5.01). Overall price realization fell to $61.61 per Boe from the year-ago level of $62.80 per Boe.
 
Affected by lower oil price realizations, the Upstream segment experienced nearly a 11.8% year-over-year decrease in adjusted underlying profit. This was partly offset by higher gas prices and increased production from key higher-margin regions.

Downstream
 
Segmental profit rose to $1,484 million from $720 million in the year-ago quarter. The improvement came on the back of a stronger refining environment as well as increased contribution from supply and trading activities.
 
Refining Marker Margin increased to $15.6 per barrel from $13.6 in the third quarter of 2013. Total refinery throughput increased to 1,729 thousand barrels per day (MB/d) from 1,702 MB/d in the year-earlier period. Refining availability was 94.8% versus 95.3% in the year-ago period.
 
Rosneft
 
The Rosneft segment includes equity-accounted earnings from associates, representing BP’s stake in the former. The segment posted profits of $110.0 million in the reported quarter.
 
Financials
 
BP's net debt was $22,447 million at the end of the third quarter compared with $20,051 million a year ago. Net debt-to-capitalization ratio was 15.0% versus 13.3% in the third quarter of 2013. In the reported quarter, BP's total capex was $5,349 million.

Company Outlook
 
BP expects fourth-quarter production to be lower than the third quarter primarily due to weather disruptions and the closing of the Alaska assets sale. Similarly, its fuels business would be affected by a lower level of turnarounds and seasonal demand. Margins are expected to drop for both fuels and petrochemicals businesses in the fourth quarter.

Zacks Rank
 
BP – one of Europe’s leading oil companies by market value – currently carries a short-term Zacks Rank #5 (Strong Sell). Some better-ranked stocks in the same sector include Tallgrass Energy Partners LP (TEP - Snapshot Report), Delek Logistics Partners LP (DKL - Snapshot Report) and Enbridge Energy Management LLC (EEQ - Snapshot Report). All these stocks sport a Zacks Rank #1 (Strong Buy).