Energy giant BP slumped to a pre-tax loss of £19.4 million in the third quarter due to lower oil prices, storms and a £2 billion charge related to divestments.

The London-headquartered firm recorded pre-tax profits of £4.2bn in the same period last year.

Third-quarter revenues totalled £53.9bn, down 14% year-on-year.

Underlying replacement cost profit was £1.8bn in Q3, compared to £2.9bn a year earlier.

BP said it was hit by lower upstream earnings, caused by lower crude prices, maintenance activities and the impact of Hurricane Barry in the US Gulf of Mexico.

Reported oil and gas production for the quarter averaged 3.7 million barrels of oil equivalent a day, compared to 3.6 million barrels of oil equivalent a day a year earlier.

But underlying upstream production fell 2.5% year-on-year.

The business was affected by impairment charges relating to the divestment of heritage US onshore assets, the Greater Kuparuk Area in Alaska and its interests in Gulf of Suez oil concessions in Egypt.

Divestments announced in 2019 totalled £5.6 billion at the end of the third quarter. BP expects this to reach around £7.7bn by year end.

BP repurchased 34m shares at a cost of £167m during Q3. The share buyback programme is expected to fully offset the impact of scrip dilution since the third quarter 2017, by the end of 2019.

Chief executive Bob Dudley, who will retire next year, said: “BP delivered strong operating cash flow and underlying earnings in a quarter that saw lower oil and gas prices and significant hurricane impacts.

“Our focus remains firmly on maintaining financial discipline and delivering safe and reliable operations throughout BP.

“We’re also continuing to advance our strategy, making strong progress with our divestment plans and building exciting new opportunities in fast-growing downstream markets in Asia.”

Chief financial officer Brian Gilvary said: “BP’s third quarter results demonstrate the resilience of our financial performance, even at lower prices.

“Net debt stayed flat in the quarter, though gearing rose slightly following a reduction in equity as a result of divestment-related impairment charges.

“With growing free cash flow and receipt of disposal proceeds, we continue to expect net debt to trend down over time.

“In addition, the underlying effective tax rate for the quarter was lower than previously indicated, mainly due to higher-than-expected estimated Rosneft earnings and a lower-than-expected impact from the upstream profit mix.”

David Barclay, head of office at Brewin Dolphin Aberdeen, said: “Lower oil prices, maintenance and weather impacts have combined to swing BP to a loss – albeit, the results are ahead of expectations.

“This quarter’s performance could be seen as a reminder of just how much of a difference volatile oil prices can have on the majors’ results.

“Despite the loss, there are positives to take from the expansion of the downstream business, the progress of BP’s divestment programme, and greater cash flow.

“However, the upstream division and gearing remaining beyond target are areas for concern, while investors will also take a short-term hit from the scrapping of the scrip dividend.”