BP posts £2.7billion profit as oil prices rise again

31/10/2023

BP has reported third-quarter earnings below forecasts as strong oil trading was offset by weak gas results.

The energy giant recorded underlying replacement cost profit (net income) of $3.3billion (£2.7m), below the forecasted $4billion (£3.3m).

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It’s an improvement on the $2.6billion (£2.1m) profit recorded in Q2, primarily due to higher oil and gas production.

The lower than expected profits are an enormous fall-off from last years third-quarter profits of $8.15billion (£6.7m), recorded during soaring prices after Russia’s invasion of Ukraine.

In the first set of financial results since Bernard Looney stepped down last month, interim chief financial officer Murray Auchincloss insisted it was a “solid quarter” for BP, “supported by strong underlying operational performance”.

He added: “Momentum continues to build across our businesses, with recent start-ups including Tangguh Expansion, bpx energy’s ‘Bingo’ central processing facility and Archaea Energy’s first modular biogas plant in Indiana.

“As we laid out at our investor update in Denver, we remain committed to executing our strategy, expect to grow earnings through this decade, and on track to deliver strong returns for our shareholders.”

BP has kept its dividend unchanged at 7.27 cents per share, as well as extending its $1.5billion (£1.2m) share buyback programme over the next three months.

The company has benefitted from the ongoing conflict in the Middle East, which was sent Brent Crude prices close to $100 a barrel.

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