BP’s quarterly profit increases as oil and gas prices soar
BP said on Tuesday that higher prices for oil and natural gas led to a sharp increase in profits in the third quarter. The company said its “underlying replacement cost profit” from July to September was $ 3.3 billion, up from $ 86 million in the previous year period.
Oil prices have risen steadily over the past year as economies have grown since the pandemic lockdowns, and BP has joined other oil companies to report a sharp increase in quarterly profits.
London-based BP said it received about $ 66.39 on average for a barrel of oil in the quarter, up from $ 37.77 in the previous period. BP also said it earned $ 868 million from its minority stake in Russian oil giant Rosneft, down from a loss of $ 278 million a year ago.
Analysts said the results were slightly better than expected.
“Rising commodity prices have certainly helped,” Chief Executive Officer Bernard Looney said in a statement.
Recognizing the role the Organization of the Petroleum Exporting Countries and its allies have played in driving prices up in recent months, BP said that “producer decision-making on production levels continues to be a key driver of oil price “.
OPEC and its allies, including Russia, are expected to meet on Thursday to discuss production levels. President Biden is relying on them to speed up their pace of increased production to lower gasoline prices for consumers. Brent crude, the international benchmark, now sells for around $ 85 a barrel.
BP kept its dividend stable for the quarter at 5.46 cents per share and announced a $ 1.25 billion share buyback.
On a call with analysts, Mr. Looney ignored what could be mounting pressures to break up big oil companies. Recently, Third Point, a New York-based fund management firm, suggested that BP’s rival Royal Dutch Shell could be considerably more valuable if split into an oil company and a low-emission energy company. carbon.
“We are not hearing this call from our investors,” Mr. Looney said.