BP has revealed a drop in third quarter profits, largely due to weaker energy prices, but maintained its rewards for shareholders.

The company reported underlying replacement cost profit, its main pre-tax measure, of $3.3bn (£2.7bn) for the three months to September.

The sum had stood at more than $8bn in the same period a year ago and even came in below analysts’ forecasts of $4bn.

The company said it was largely explained by lower oil and gas costs compared to a year ago.

BP said the third quarter sum reflected higher oil and gas production, strong refining margins, lower refinery
maintenance and “a very strong oil trading result”.

It was the first set of results for BP since its chief executive Bernard Looney quit the business abruptly in September after admitting not being “fully transparent” about personal liaisons with staff.

Please use Chrome browser for a more accessible video player

Interim CEO Murray Auchincloss, who has vowed to maintain BP’s transition towards zero net emissions by 2050, told investors: “This has been a solid quarter supported by strong underlying operational performance demonstrating our continued focus on delivery.

Fourteen million UK adults used buy now pay later in six months, the FCA says

US carmaker strikes over as GM agrees pay deal with union

Food inflation 8.8% in year to October, BRC and NielsenIQ say

“Momentum continues to build across our businesses, with recent start-ups including Tangguh Expansion, bpx energy’s ‘Bingo’ central processing facility and Archaea Energy’s first modular biogas plant in Indiana.”

He added: “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.”

Be the first to get Breaking News

Install the Sky News app for free

The company kept its dividend unchanged at 7.27 cents per share and extended its $1.5bn share buyback programme over the next three months.

It also said there was no change to its dividend guidance – which is based on an assumed cost for Brent crude oil of $60 a barrel alongside board discretion.

Read more from Sky News:
14 million UK adults used buy now pay later in six months, the FCA says
Food inflation at ‘8.8%’ in year to October
US carmaker strikes over as GM strikes deal with union

BP has benefited from a lift to oil prices since June, with Brent currently standing just below $90 having pushed closer to $100 earlier this month.

That has been largely explained by production cuts initiated by Saudi Arabia and Russia – with global prices remaining volatile in the wake of the Israel-Hamas war.

Related posts:

Digital giant LadBible weighs £400m float as audiences boom Owner of Las Iguanas to open 50 new restaurants and create 1,250 jobs Schroders swoops for River & Mercantile arm in £230m deal Scaled-back Christmas as consumers become ‘more used to seeing fewer things on shelves’ Bulb creditor Sequoia inflames insolvency row over £55m secured loan Abramovich slaps £3bn price tag on Chelsea as Russian sets bid deadline The retail outlook appears gloomy but, as PepsiCo shows, there’s more to it than that Revolution Beauty lenders hire advisers amid accounting chaos ‘Guilt-free flying’: Rolls-Royce and easyJet test aircraft engine running on hydrogen Tesla vehicles sales up in first quarter after price cuts Ultimate Fighting Championship owner and WWE combining to create $21.4bn company ‘The Saudis are calling the shots in the cartel’: Why OPEC+ has announced a cut in oil production