BP has reported underlying replacement cost profit $8.5bn during the third quarter, $2.7bn higher than the prior quarter.<\/p>\n
The underlying result “mainly reflects significantly higher realised refining margins and significantly higher gas and marketing trading result”, while reported profit for the quarter was $4.7bn, compared with $3.9bn in the second quarter.<\/p>\n
Operating cash flow came in at $14.8bn, backed by improved operational performance. This quarter upstream plant reliability rose from 92.4% to 95.3% quarter-on-quarter, while refining availability hit 96.5%; up from 94.7%.<\/p>\n
A decision to allocate excess cash to strengthen the balance sheet enabled an $8.4bn reduction in net debt to $13.9bn.<\/p>\n
Plans to simplify the portfolio continue, with the sale agreed of BP’s Austrian mobility and convenience business during the period, along with completion of the sale of the Gelsenkirchen refinery, and the announcement of plans to market the North Sea and Archaea businesses.<\/p>\n
Still to come is the expected imminent closure of the Castrol divestment, “unlocking $6bn to further strengthen the balance sheet”.<\/p>\n
Chief executive Meg O’Neill said: “These are dynamic times with volatility and disruption to trade flows continuing to define energy markets.<\/p>\n
“The industry as a whole has been showing remarkable adaptability: refineries have been running close to capacity to make up for shortfalls, shipping has been taking different and longer routes, and releases from strategic and commercial reserves are helping to bridge supply gaps.<\/p>\n
“We maintained upstream production at around 2.2 million barrels per day, upstream plant reliability and refining availability both improved compared to the previous quarter, and our trading performance was also higher.<\/p>\n
“This has generated a strong set of results, supported by the higher-price, higher-margin environment and some good progress on performance improvement across the business.”<\/p>\n
She added: “We have now delivered our net debt and structural cost reductions targets and have line of sight on the remaining two of the four primary financial targets we set ourselves for 2027.”<\/p>\n
A strategy and outlook update is due on 15 December.<\/p>\n
Last week, BP announced an agreement with the State of Louisiana to accelerate the delivery of Deepwater Horizon settlement commitments. “Our intent is now to prioritise the use of excess cashflow to address our remaining Deepwater Horizon liabilities in full,” read a statement.<\/p>\n
“As we move forward, we will continue working with urgency to turn one good set of results into strong performance quarter after quarter,” it continued, adding: “We have much more to do on the five priorities set out at mid-year to deliver a step change in performance and realise the full potential of this company.”<\/p>\n
The combined sum of BP’s net debt, hybrids, lease liabilities and Gulf of America settlement liabilities is down by $9.3bn, compared with the second quarter of the year.<\/p>\n
“This is good progress, but we are still too leveraged and further strengthening of the balance sheet remains our number one job,” the results noted.<\/p>\n","protected":false},"excerpt":{"rendered":"
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