BP’s third-quarter profits fell by 60 per cent to $3.3 billion after oil and gas prices receded from last year’s highs.
The FTSE 100 oil and gas group fell significantly short of analyst expectations of $4 billion, adding to the company’s woes as it reels from the sudden exit of Bernard Looney as chief executive.
The 53-year-old Irishman resigned last month after admitting that he had misled the board over past relationships with colleagues.
BP blamed a “weak” performance by its gas traders for the worse-than-expected third-quarter result but said it would press ahead with another $1.5 billion share buyback in the coming three months. Shares in BP fell 4.5 per cent, or 24p, to 503¼p.
Murray Auchinchloss, 53, interim chief executive, insisted it had been a “solid quarter”, adding: “We remain committed to executing our strategy, expect to grow earnings through this decade, and are on track to deliver strong returns for our shareholders.”
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BP employs about 67,000 people in more than 60 countries and made record underlying profits of $28 billion last year as oil and gas prices surged on fears of supply shortages following Russia’s invasion of Ukraine.
Concerns about the health of the global economy have since weighed on oil prices and Brent crude, the benchmark global oil price, averaged $86.75 per barrel in the third quarter, down from $100.84 per barrel in the same period of last year.
Gas prices have fallen even more sharply, with the UK benchmark price dropping by more than 70 per cent from an average of 281p per therm in the third quarter of 2022, when Russia curtailed pipeline supplies to Europe, to 82p per therm in the same period this year.
As chief executive since 2020, Looney had committed BP to cutting its production emissions to net zero by 2050 and set out bold goals to reduce its oil and gas production this decade and build a vast renewables business. Earlier this year BP weakened its planned oil and gas output cut — to 25 per cent from 40 per cent previously — citing the global need for secure energy supplies.
Auchinchloss served as chief financial officer from 2020 until he became interim chief executive on Looney’s departure. The Canadian was seen as a close ally of Looney’s, having worked closely with him in BP’s oil and gas production division.
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Auchincloss told investors this month that BP’s strategy remained unchanged.
