BP’s underlying profit rose to $8.46 billion in the third quarter — The Guardian

BP reported that its underlying replacement cost profit in the third quarter rose to $8.46 billion, compared with $2.2 billion in the same period last year. The figure, which BP uses as a key earnings metric, also exceeded analysts’ expectations of $7.33 billion, The Guardian reports.

Refining margins and trading

BP said the jump in profit was driven by significantly higher realized oil refining margins and better results in gas trading and the marketing business. The company’s earnings were supported by increased profits from refining oil into fuel products, including diesel fuel.

The publication notes that global oil prices remained below the peak levels of the 2022 energy crisis. At the same time, retail fuel prices in the United Kingdom, Europe and the United States have reached record levels in recent months amid serious disruptions at oil refineries in the Persian Gulf region and Russia.

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BP chief executive Meg O’Neill said that energy markets continue to be shaped by volatility and disruptions to trade flows. According to her, oil refineries operated at nearly full capacity, vessels took alternative and longer routes, while strategic and commercial reserves helped cover supply shortages.

Funds for Deepwater Horizon payments

BP said it would direct the surplus cash flow generated by the profits toward fully settling its remaining obligations related to the 2010 Deepwater Horizon platform accident. According to the company, payments and provisions related to the accident amounted to $5.94 billion.

On December 15, BP is due to present its first major strategy update under O’Neill. Market observers expect the company to outline plans to increase oil and gas production and may resume share buybacks from next year.