In its latest financial report, British energy giant BP recorded a significant decline in its third-quarter profits. Despite an increase from the previous quarter, from $2.6 billion to $3.3 billion, the result fell short of analysts' expectations, who had forecast a profit of about $4 billion. This development led to a noticeable decline in BP's share price by more than four percent on the London Stock Exchange.
BP's results reflect an industry-wide trend, as other oil and gas companies like Chevron and Exxon also failed to meet investor expectations. In contrast, European competitors Total, Eni, and Equinor exceeded forecasts. Compared to the previous year, when the industry recorded record profits due to high oil and gas prices following Russia's attack on Ukraine, all major producers experienced a decline. BP's net profit fell by nearly five billion dollars year-on-year.
Despite the disappointing figures, BP plans to buy back its own shares worth $1.5 billion by the end of the year. Analysts had expected a slight increase in the buyback due to the strong macroeconomic background. Oil and gas prices had normalized after last year's surge, leading to less price pressure. BP reported a strong oil business, while the gas division delivered weaker results.
Interim CEO Murray Auchincloss, who took over the company's leadership after the surprise resignation of Bernard Looney, emphasized the company's solid operational performance in the last quarter. Auchincloss reaffirmed his intention to continue the green transformation of the company initiated by his predecessor, although the goals for reducing oil and gas production were lowered from 40 to 25 percent by 2030.
BP expects significantly lower profit margins in the refinery business for the fourth quarter and plans to keep investments at the lower end of forecasts. Auchincloss dismissed takeover speculation and emphasized BP's good condition and a similar valuation on the stock markets as competitors Shell and Total.
