BP Exceeds Expectations with Strong Q3 Profit

BP (LON: BP) reported a stronger-than-expected third-quarter profit on Tuesday, driven by robust operational performance and strategic advancements.

The energy giant posted an underlying replacement cost (RC) profit, a key metric akin to net profit, of $2.21 billion for the July-September period, surpassing analyst estimates of $2.03 billion.

The company's financial summary reveals a profit attributable to BP shareholders of $1.161 billion for the quarter, compared to $206 million in the same period last year.

Operating cash flow stood at $7.786 billion, while capital expenditure amounted to $3.381 billion. Net debt remained relatively stable at $26.054 billion.

BP's performance was underpinned by significant progress in its upstream operations, with plant reliability reaching 96.8%, leading to a 3% quarter-on-quarter increase in underlying production.

The company also highlighted improved reliability and profitability in its downstream operations, with refining availability increasing to 96.6%.

Shareholder value is being returned through dividends and buybacks, with the company announcing a dividend per ordinary share of 8.320 cents. BP intends to execute a $0.75 billion share buyback before reporting its fourth-quarter results.

BP CEO Murray Auchincloss stated, “We've delivered another quarter of good performance across the business with operations continuing to run well,” reinforcing the company’s focus on cost reduction, balance sheet strength, and increased cash flow.

He also stated that the company is “looking to accelerate delivery of our plans, including undertaking a thorough review of our portfolio to drive simplification and targeting further improvements in cost performance and efficiency.”

The company expects fourth-quarter upstream production to be broadly flat compared to the third quarter. BP anticipates seasonally lower volumes in its customers business and similar levels of refinery turnaround activity.