BP, the British energy giant, has reported a substantial decline in profits for the third quarter of 2024, primarily due to lower oil and gas prices and a weaker performance in its refinery business.
The company’s underlying profits fell to $3.3 billion (£2.7 billion), a significant drop from $8.2 billion recorded in the same period last year.
This represents a year-on-year decline of about 60%, reflecting the impact of lower oil and gas prices and reduced refinery output.
Despite this considerable decrease, BP’s financial results surpassed analysts’ expectations.
The company attributed the profit reduction to several factors, including diminished oil and gas prices and planned maintenance work that affected its refinery output.
Murray Auchincloss, BP’s chief executive, said: “We have made significant progress since we laid out our six priorities earlier this year to make bp simpler, more focused and higher value.
“In oil and gas, we see the potential to grow through the decade with a focus on value over volume. We also have a deep belief in the opportunity afforded by the energy transition – we have established a number of leading positions and will continue high-grading our investments to ensure they compete with the rest of our business.
“I am absolutely clear that the actions we are taking will grow the value of bp.”
The company also announced plans to buy back $1.75bn of shares over the next three months, demonstrating continued confidence in its financial position despite the challenging market conditions.
This downturn in profits reflects the broader volatility in the global energy market, with fluctuating commodity prices impacting major players in the industry.
However, BP’s ability to exceed expectations suggests a degree of resilience in its business model amidst these challenging circumstances.
