BP PLC (LSE:BP.) boasted strong underlying results and cash flows whilst it talks energy transition.
The oil supermajor today confirmed it generated some US$5.9bn of operating cash flow for the third quarter, versus US$5.2mln a year ago, driven by higher oil and gas prices.
Underlying replacement cost profit was marked at US$3.3bn, up from US$2.8bn in the preceding three-month period - whilst BP reported a US$2.5bn loss in the accounts for the quarter as it took a US$6.1bn paper-hit due to exponentially higher gas prices and the accountancy rules for handling hedging.
“This has been another good quarter for bp - our businesses are generating strong underlying earnings and cash flow while maintaining their focus on safe and reliable operations,” said BP chief executive Bernard Looney.
“Rising commodity prices certainly helped, but I am most pleased that quarter by quarter, we're doing what we said we would - delivering significant cash to strengthen our finances, grow distributions to shareholders and invest in our strategic transformation.
“This is what we mean by performing while transforming.”
BP noted that it received US$5.4bn of divestment proceeds in the quarter and it reduced net debt to US$32bn by the end of the quarter.
The oil firm is to pay an unchanged 5.46 cents per share dividend for the third quarter. The company intends to conduct a further share buy-back, using 60% of surplus cash flow, to repurchase some US$1.25bn of additional shares in the coming months.
BP said it added some 2 gigawatts of projects to its renewable power pipeline as it aims for a lower carbon business by 2025.
In terms of hydrocarbons projects, BP noted that it had delivered a six-year programme of major project execution which brought online some 900,000 barrels oil equivalent per day and the campaign came in 15% under budget.