BP third quarter profit slumps to $2.3 billion as oil demand sags

By Ron Bousso

LONDON (Reuters) – BP (NYSE:BP) on Tuesday reported higher-than-expected third quarter profits of $2.3 billion, their lowest in almost four years, weighed down by a drop in refining profits and weaker oil trading.

The 30% drop in profits from a year earlier comes amid a slowdown in global economy activity and oil demand, particularly in China, raising pressure on CEO Murray Auchincloss who has vowed to boost BP’s performance amid investor concerns over its energy transition strategy.

BP’s underlying replacement cost profit, the company’s definition of net income, reached $2.27 billion in the third quarter, exceeding forecasts of $2.05 billion in a company-provided survey of analysts.

That compared with a $2.8 billion profit in the previous quarter and $3.3 billion a year earlier.

The results were the weakest since the fourth quarter of 2020, when profits collapsed during the pandemic.

The energy giant maintained its dividend at 8 cents a share after raising it in the previous quarter. It also kept unchanged the rate of its share buyback programme at $1.75 billion over the next three months.