BP Reports Strong Third Quarter Profit
By Christian Moess Laursen
British oil and gas company, BP, announced a rise in third-quarter profit driven by higher refining margins and increased oil and gas production. However, the company's results fell short of analysts' expectations.
BP's underlying replacement cost profit, a metric similar to net income used by US oil companies, reached $3.29 billion in the three months ending September, up from $2.59 billion in the previous quarter. Despite this positive performance, the figure was lower than the average forecast of $4.01 billion by analysts.
The energy giant also reported a surplus cash flow of $3.11 billion, leading to plans for an additional $1.5 billion share buyback before the release of its fourth-quarter results. Furthermore, BP raised its dividend payout to 7.27 cents per share from the previous year's 6.006 cents.
The largest portion of BP's trading revenue came from its oil production and operations segment, which generated $3.14 billion in profits for the quarter, excluding interest and taxes. This represented an increase from the $2.78 billion reported in the second quarter.
The growth in profit can be attributed to higher refining margins, a strong performance in oil trading, and increased oil and gas production. However, these gains were still insufficient to match the record profits achieved in the prior year when high natural gas prices in Europe significantly boosted earnings for major energy companies.
Interim Chief Executive Murray Auchincloss expressed satisfaction with the company's solid quarter and highlighted their commitment to operational excellence.
BP's net income for the quarter rose to $4.89 billion from $1.79 billion.
Looking ahead, BP anticipates that fourth-quarter production levels for oil, gas, and low-carbon energy will remain relatively stable compared to the previous quarter. However, the company expects significantly lower refining margins.
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