BP cuts capex for third time this year to deal with weak oil

LONDON: Oil major BP has reduced its full-year capital expenditure (capex) for the third time this year as it grapples with a halving in oil prices.

BP said on Tuesday that investments for this year would now come in at close to $19 billion, down from a previous estimate of under $20 billion, and capex would fall to $17-19 billion a year through to 2017.

The oil producer reported better-than-expected third-quarter underlying replacement cost profit, the company's definition of net income, of $1.8 billion, compared with analysts' consensus of $1.2 billion.

"All of this underpins our strong priority of sustaining our dividend and then growing free cash flow and shareholder distributions over the long term," BP Chief Executive Bob Dudley said in a statement.