Signs for British oil and gasoline company BP (British Petroleum) are photographed in Warsaw, Poland, on July 29, 2024.
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British oil major BP on Tuesday reported stronger-than-expected third-quarter earnings.
The energy company reported underlying replacement cost earnings, used as a proxy for net profit, of $2.3 billion for the July-September period. This exceeded analyst expectations of $2.1 billion, according to the LSEG consensus.
BP reported net earnings of $2.8 billion for the second quarter of the year and $3.3 billion for the third quarter of 2023.
BP's London-listed shares have fallen more than 14% since the start of the year, underperforming its European rivals as investors continue to question the company's investment case.
BP's third-quarter results come shortly after reports emerged that the company had scrapped its pledge to cut oil and gas production by 2030, rolling back a core tenet of the company's ambition to achieve net-zero emissions by mid-century — or sooner.
The move, reported by Reuters on October 7 citing three unnamed sources, will be seen as further evidence of CEO Murray Auchincloss' plan to prioritize near-term returns from the company's more profitable fossil fuel operations.
The news agency reported that BP is also targeting several new investments in the Middle East and the Gulf of Mexico to boost oil and gas production.
“As Murray said at the beginning of the year in Q4 results, the trend is the same — but we will deliver services as a simpler, more focused, higher-value company,” a BP spokesperson told CNBC.
Britain coincidence And France Total energies It is scheduled to announce its quarterly results on Thursday, along with major American companies Exxon Mobil and Chevron It is scheduled to follow suit on Friday.
Last week, Norwegian oil and gas producer Equinor reported a 13% decline in adjusted operating income in the July-September period, which fell short of analysts' expectations.
