On July 29, 2024, the logo of British oil and gasoline company BP (British Petroleum) was photographed in Warsaw, Poland.
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British oil major BP reported its weakest quarterly earnings in nearly four years on Tuesday, weighed down by lower crude prices and lower refining margins.
The energy company reported underlying replacement cost profit, used as a proxy for net income, of $2.3 billion in the July-September period. That beat analysts’ expectations of $2.1 billion, according to consensus compiled by LSEG.
BP announced a net profit of US$2.8 billion in the second quarter of 2023 and a net profit of US$3.3 billion in the third quarter.
The company’s third-quarter results were the weakest since the fourth quarter of 2020, when industry profits fell sharply amid the coronavirus pandemic.
BP Chief Executive Murray Auchincloss said in a statement: “We have made significant progress since setting out six priorities earlier this year to make BP simpler, more focused and higher value. .
“In oil and gas, we see growth potential over the next decade, with a focus on value rather than volume. We also strongly believe in the opportunities presented by the energy transition – we have established many leading positions and will continue to do so – right Our investments are rated to ensure they are competitive with the rest of our business.
Shares in London-listed BP have fallen more than 14% so far this year, underperforming European rivals as investors continue to question the company’s investment rationale.
Oil prices fell more than 17% in the third quarter on concerns about the outlook for global oil demand.
BP’s latest results come shortly after the report The company abandoned its pledge to reduce oil and gas production by 2030, defeating the core purpose of its ambition to achieve net-zero emissions by mid-century or earlier.
This move According to Reuters On October 7, citing three unnamed sources, it will be considered further evidence Chief Executive Officer Auchincloss plans to prioritize near-term returns from the company’s more profitable fossil fuel businesses.
BP is also said to be planning several new investments in the Middle East and the Gulf of Mexico to boost oil and gas production, the news agency reported.
“As Murray said in his fourth-quarter results at the beginning of the year, the direction is the same, but we will become a simpler, more focused and higher-value company,” a BP spokesperson told CNBC.
British shell and french total energy Quarterly results are scheduled to be announced on Thursday, with major U.S. companies Exxon Mobil and Chevron Scheduled to follow up on Friday.
Last week, Norwegian oil and gas producer Equinor report Adjusted operating income fell 13% between July and September, missing analysts’ expectations.
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