BP Q3 profit misses as weak gas trading offsets strong oil
BP’S third-quarter profit rebounded from the prior period, but fell short of estimates as weak results in gas marketing offset a strong performance in oil trading.
Like its Big Oil peers, BP’s earnings were well below last year’s record levels, yet high by historical standards as geopolitical tensions keep energy prices elevated. The huge cash inflows have stimulated a spate of dealmaking, with ExxonMobil and Chevron announcing a pair of acquisitions totalling more than US$100 billion over the past month – widening their lead over Europe’s majors.
“We remain committed to executing our strategy and expect to grow earnings through this decade. We are on track to deliver strong returns for our shareholders,” said Murray Auchincloss, who became interim chief executive officer of BP after the surprise resignation of Bernard Looney.
The company maintained the pace of buybacks, pledging to repurchase US$1.5 billion of shares prior to reporting fourth-quarter results.
BP’s third-quarter adjusted net income was US$3.3 billion, down from US$8.2 billion a year earlier, but up from US$2.6 billion in the prior period, the oil giant said on Tuesday (Oct 31). The figure was well below the average analyst estimate of US$4.1 billion.
BP said its oil trading unit had a “very strong” quarter. In contrast, gas trading and marketing was “weak” after having had an “exceptional” start to the year. Despite the earnings miss, BP’s debt pile resumed its downward path – net debt fell US$1.3 billion to US$22.3 billion.
The earnings of BP’s European peers TotalEnergies, Equinor and Eni came in ahead of expectations last week. In contrast, Exxon and Chevron missed estimates. BLOOMBERG
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