bp has reported an underlying replacement cost (RC) profit of US$2.3 billion for the third quarter of 2024, down from US$2.8 billion in Q2. The decrease reflects weaker refining margins, lower liquids realizations, and weaker oil trading results, partially offset by higher gas realizations. BP’s reported profit for Q3 was US$0.2 billion, a significant improvement from a US$0.1 billion loss in Q2, with adjustments for inventory holding losses and impairment-related items.
Segment results show a varied performance. The Gas & Low Carbon Energy division saw an RC profit of US$1.0 billion, improved by higher gas realizations. Oil Production & Operations reported a RC profit of US$1.9 billion, reflecting lower liquids realizations and higher exploration write-offs. In Customers & Products, RC profit reached US$23 million, influenced by flat fuel margins, higher volumes, and weaker refining margins.
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Operating cash flow reached US$6.8 billion, aided by a US$1.4 billion working capital release. However, net debt rose to US$24.3 billion due to increased capital expenditures and lower divestment proceeds.
bp announced a dividend of eight cents per ordinary share for Q3, emphasizing its goal of maintaining a strong balance sheet and credit rating. The company completed a US$1.75 billion share buyback in October and plans another buyback of the same amount before Q4 results. bp aims to complete US$14 billion in share buybacks by 2025, though financial guidance for buybacks may be reassessed in February 2025.
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Chief Executive Officer Murray Auchincloss stated, “We have made significant progress since we laid out our six priorities earlier this year to make BP simpler, more focused and higher value.” He emphasized bp’s focus on “value over volume” in oil and gas, alongside strategic investments in the energy transition, affirming that these actions will “grow the value of BP.”
