Shares in oil giant BP (BP) were higher today after its decision to ditch its focus on green energy and switch back to its natural heartland of oil and gas seemed to have helped it get its “mojo back.”
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Beating Expectations
In its Q3 results, BP, which made the strategic turnaround earlier this year after a period of share underperformance, said profits came in at $2.21 billion. This was lower than the $2.35 billion reported in the previous quarter and down from $2.27 billion for the same period last year. However, it topped analyst expectations of $2.02 billion.
Profit attributable to BP shareholders came in at $1.16 billion for the third quarter, which was down from $1.62 billion in the second quarter, but higher than the $206 million reported last year.
Further cheering BP investors was the announcement of another share buyback worth $750 million, which will happen prior to its Q4 results. The company also announced a dividend of 8.32 cents for the third quarter, up from 8 cents for the same period last year.
BP is now on track to return almost $9.5 billion to its shareholders via dividends and buybacks in 2025 – see below:
Murray Auchincloss, CEO of BP, said: “We’ve delivered another quarter of good performance across the business with operations continuing to run well. All six of the major oil and gas projects planned for 2025 are online, including four ahead of schedule.”
He added that the company had sanctioned a seventh operated production hub in the Gulf of America.
Looking Handsome
Mark Crouch, market analyst for eToro, said: “BP seems to have rediscovered its mojo. After years of drifting between green-energy ambitions and shareholder frustration, the UK oil major has turned in a surprisingly muscular third-quarter profit.”
He said that the results looked like a “course correction” and that BP’s “tighter discipline, leaner portfolio and renewed focus on its strengths have paid off handsomely”.
Russ Mould, investment director at AJ Bell, added: “A good set of third-quarter figures still represents a step in the correct direction, though, and BP continues to churn out a pretty consistent level of profits, even as oil and gas prices remain fairly flaccid.”
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