BP reported a sharp rise in third-quarter profit on Friday, with earnings attributable to shareholders climbing to $4.7 billion from $1.16 billion a year earlier. The company said higher refining margins and stronger oil trading income, linked to supply disruptions from the Iran war, drove the gain.
Profit beats forecasts
Underlying replacement cost profit, BP’s preferred measure, came in at $8.5 billion for the quarter, up from $2.2 billion a year earlier and above the $6.2 billion analysts had expected. The quarter also included $4 billion in impairment charges, largely tied to transformation activities.
Net debt fell by $8.4 billion to $13.9 billion, down from $22.3 billion three months earlier. BP said it had met its debt and cost reduction targets after suspending its share buyback programme in February. The quarterly dividend was held at 8.66 cents per share.
Louisiana settlement and outlook
BP said it would prioritise payments tied to its 2010 Deepwater Horizon liabilities, having agreed last week to accelerate payments under its $16 billion settlement with the US state of Louisiana. Chief executive Meg O’Neill, who took office in April, said the results were strong, achieved in an environment where higher prices and higher margins were effective. BP’s new chief executive is expected to present the company’s strategy on 15 December.
Brent had been trading around $72 a barrel before the Iran war began in late February, though it fell more than 6 percent on Monday on diplomatic signs. BP shares rose 0.3 percent in early trading. The company raised its average Brent price forecast for 2024 prices this year to $87 a barrel, up from $70 previously.
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Source: BP
