FTSE 100 oil giant BP has reported strong-than-expected earnings for the third quarter.
On Tuesday,it posted an underlying replacement cost profit,used as a proxy for net profit,of$2.3bn(£1.8bn)for the three months to 30 September.
The figure beat analyst expectations of$2.1bn(£1.6bn),according to an LSEG-compiled consensus.
However,the figure was worse than the$2.8bn(£2.2bn)profit reported for the second quarter of 2024 and far below the$3.3bn(£2.5bn)reported for the third quarter of 2023.
The company also announced a$1.75bn(£1.4bn)share buyback prior to reporting the fourth quarter results and a commitment to return another$1.75bn(£1.4bn)in buybacks relating to the current financial year.
The company reiterated its commitment to return$14bn(£10.8bn)of cash via buybacks to investors in 2025,subject to market conditions.
Shares in the company have fallen 14 per cent year-to-date as the price of oil has declined from the multi-year highs printed in the years after the pandemic and at the start of Russia’s war against Ukraine.
Oil prices fell sharply at the beginning of this week,with Brent crude,the international oil benchmark,trading down by as much as six per cent on Monday.
The price of Brent settled at$71.42 a barrel as fears of a wider escalation in the Middle East receded.This time last year,the price of Brent was trading at around$90 a barrel.
The results follow BP’s decision to scale back its pledge to reduce oil and gas production by 2030.
Murray Auchincloss chief executive officer said:“We have made significant progress since we laid out our six priorities earlier this year to make BP simpler,more focused and higher value.In oil and gas,we see the potential to grow through the decade with a focus on value over volume.
“We also have a deep belief in the opportunity afforded by the energy transition–we have established a number of leading positions and will continue high-grading our investments to ensure they compete with the rest of our business.I am absolutely clear that the actions we are taking will grow the value of BP.”
