- BP’s Q3 profit decline
- Maintains shareholder returns
- Criticisms from climate activists
Despite a decline in oil and gas prices compared to the same period last year, BP maintains its dedication to providing substantial returns for investors.
Maintains Shareholder Returns
BP disclosed a decline in profits for the third quarter, primarily attributable to weakened energy prices, but maintained shareholder returns.
The organization disclosed a primary pre-tax metric, underlying replacement cost profit, amounting to $3.3 billion (£2.7 billion), for the quarter ending in September.
Compared to the same period last year, the amount exceeded $8 billion and even fell short of analysts’ expectations of $4 billion.
The company primarily attributed this to decreased energy and gas expenses compared to the previous year.
Greater oil and gas production, robust refining margins, decreased refinery maintenance, and “a very strong oil trading result” all contributed to the third-quarter revenue, according to BP.
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It was the first set of results for BP since September when CEO Bernard Looney abruptly resigned after acknowledging personal relationships with staff were not “completely transparent.
Interim CEO’s Strategy
BP’s interim CEO Murray Auchincloss, who has pledged to ensure the company maintains its transition to zero net emissions by 2050, informed investors: “Our continued emphasis on delivery was evident in our robust underlying operational performance during this quarter.
Archaea Energy’s inaugural modular biogas plant in Indiana, Tangguh Expansion, and bpx Energy’s ‘Bingo’ central processing facility are just a few of the recent ventures that have contributed to the ongoing growth of momentum throughout our organizations.
He continued: “We remain committed to executing our strategy, expect to grow earnings through this decade, and are on track to deliver strong returns for our shareholders.”
The corporation maintained its dividend policy at 7.27 cents per share and extended its share repurchase program by $1.5 billion for the following three months.
Additionally, the company stated that its dividend guidance, which is based on board discretion and an assumed $60 per barrel cost for Brent crude oil, remained unchanged.
Since June, BP has benefited from an increase in oil prices; Brent is presently trading just below $90, having approached $100 earlier this month.
This has been primarily attributed to Saudi Arabia and Russia’s production cuts, which have contributed to the volatile nature of global prices since the Israel-Hamas conflict.
Market and Stock Performance
Nonetheless, the stock declined 4% at the opening bell and maintained its losses through the close.
Analysts hypothesized that the company’s profit miss and the absence of a new CEO constituted the primary concerns, exposing it to the potential peril of veering off course.
Climate activists and consumer charities reacted negatively to the profit figure, as usual, accusing BP of profiteering while millions of households face impending financial hardship due to the impending winter.
Warm Homes Campaigner for Friends of the Earth Emi Murphy remarked, “This year, BP has truly gone all out for Halloween.
“In the same year that it reneged on its climate commitments, unprecedented ocean warming, record-breaking temperatures, and devastating flooding have occurred; is there anything more chilling than this?
“Although its profits may be significantly lower than the record-breaking earnings it achieved last year due to the energy crisis, it is still generating substantial revenue despite the fact that millions of people are unable to finance home heating this winter.
“The government has been presented with innumerable opportunities to reduce our energy costs and emissions by implementing a nationwide insulation program supported by an appropriate windfall tax on the surplus profits of fossil fuel corporations and inexpensive, clean renewables.”
As a result, we have been left with weakened environmental policies and enormous tax breaks for oil and gas titans.
