BP shares slipped on Tuesday after the oil major said third quarter profits benefited from higher oil and gas prices than in the same period last year. However, profits were slightly weaker than the second quarter this year.
BP’s Non-GAAP $2.59 EPS beat analyst estimates by 64 cents as net debt fell and the oil giant announced a $2.5 billion buyback.
BP has demonstrated the war in Ukraine is still the root of exceptional profits with higher oil prices supporting revenues.
Although profit is around three times higher than the same period last year, BP’s underlying replacement cost profit has slipped from $8.5bn in the second quarter to $8.1bn in the third quarter.
Shares in BP were around 1% lower at the time of writing, trading at 474p.
“This quarter’s results reflect us continuing to perform while transforming. We remain focused on helping to solve the energy trilemma – secure, affordable and lower carbon energy,” said Bernard Looney, BP Chief executive officer.
“We are providing the oil and gas the world needs today – while at the same time – investing to accelerate the energy transition. Our agreement on Archaea Energy is the most recent step in our strategic transformation of bp.”
Cleaner Energy Investment
BP’s revenue will be earned predominantly in oil for the foreseeable future, however the company has continued to make significant investments in cleaner forms of fuel.
BP is finalising a US biogas deal and is divesting upstream businesses.
A drive into low carbon energy is well underway with the rollout of EV charging points and the completion of an acquisition of a green hydrogen plant in Australia.
Green hydrogen is seen as the most sustainable form of hydrogen as the process is powered by renewable energy and produces nearly zero carbon.
BP have submitted a bid to government for the HyGreen Teesside green hydrogen plant which will be one of the UK’s largest green hydrogen facilities and is targeting production of an initial 80 megawatts (MW) of hydrogen by 2025.