BP PLC (LSE:BP.)’s profit more than halved in the third quarter, falling short of City forecasts, as weak results in gas marketing offset a strong performance in oil trading.
Murray Auchincloss, who became interim chief executive officer of after the resignation of Bernard Looney, said it had been a “solid quarter” and that “momentum continues to build across our businesses”.
“We remain committed to executing our strategy, expect to grow earnings through this decade, and on track to deliver strong returns for our shareholders,” he said.
The oil major said third-quarter adjusted net income was US$3.29 billion, down from US$8.15 billion a year earlier, but up from US$2.59 billion in the prior three-month period.
However, the figure was well below the average analyst estimate of US$4.05 billion.
BP said compared to the second quarter, the result reflected higher refining margins, lower level of refining turnaround activity, a very strong oil trading result, and higher oil and gas production, partly offset by a weak gas marketing and trading result.
The oil major pledged to repurchase US$1.5 billion of shares prior to reporting fourth-quarter results and remains committed to using 60% of 2023 surplus cash flow for buybacks.
BP paid a dividend of 7.270 US cents and said its guidance for distributions remains unchanged.
Capital expenditure in the third quarter was US$3.6 billion. and BP now expects the full-year level to total around US$16 billion in 2023.