BP profit beats expectations, helped by refining margins
It made an underlying replacement cost profit, or adjusted net income, of US$2.21 billion
[LONDON] Oil major BP reported a smaller than expected fall in third-quarter underlying profit on Tuesday (Nov 4) as higher refining margins partly offset the impact of lower crude prices.
The company said it made an underlying replacement cost profit, or adjusted net income, of US$2.21 billion, compared with the average estimate of US$2.02 billion in a company-provided poll of analysts and US$2.27 billion a year ago.
BP kept the pace of its quarterly share buyback programme at US$750 million through the third quarter.
Chief executive Murray Auchincloss said he expected completed or announced asset sale agreements would reach around US$5 billion this year.
BP’s European rivals Shell and TotalEnergies also posted third-quarter profit falls last month, dragged down by lower oil prices, though Shell beat expectations helped by better trading results in its huge gas division and Total benefited from higher refining margins.
Average Brent crude prices during the quarter declined 13% from the same period last year.
There was no update on the closely-watched sale process for BP’s Castrol lubricants unit, which is the centre-piece of its US$20 billion disposal programme.
BP’s customers and products division, boosted by higher refining margins, reported profit before interest and tax of US$1.61 billion, slightly above analysts’ forecast of US$1.59 billion and outperformed last year’s US$381 million.
BP’s operating cash flow in the quarter was US$7.8 billion, above last year’s US$6.8 billion. As previously guided, net debt was steady at around US$26 billion compared with the previous quarter. REUTERS
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