BP 3Q Profit Beat Views; Declares $2.5 Billion Buyback -- Update
November 01 2022 - 4:10AM
Dow Jones News
By Joe Hoppe
BP PLC on Tuesday reported an on-quarter slip in third-quarter
underlying replacement cost profit, but significantly outperformed
expectations, declared a further quarterly share buyback and said
it expects upstream production to rise for 2022.
The FTSE 100 energy group said it is planning an additional $2.5
billion share buyback before its fourth-quarter results and that it
expects upstream reported production to slip slightly on quarter in
the fourth quarter, but to slightly rise for the full-year when
compared to 2021.
BP added that the board remains committed to using 60% of 2022
surplus cash flow for share buybacks.
The British oil-and-gas major made an underlying replacement
cost profit of $8.15 billion in the three months through the end of
September, down from $8.45 billion in the previous quarter due to
weaker refining margins, average oil trading results and lower
liquids realizations, though offset by exceptional gas marketing
and trading results and higher gas realizations.
Underlying replacement cost profit significantly beat the $3.32
billion reported in the third quarter of 2021, and was above a
market consensus of $6.14 billion, provided by the company and
averaged from the forecasts of 29 analysts.
The company swung to a net loss of $2.16 billion, reflecting
inventory losses net of tax of $2.2 billion, and a charge for
adjusting items net of tax of $8.1 billion, primarily due to
further increases in forward gas prices compared to the end of the
second quarter. This compares with a net profit of $9.26 billion in
the immediately prior quarter, it said.
Sales and other operating revenue fell to $55.01 billion from
$67.87 billion, BP said.
The company said it expects oil prices, gas prices and refining
margins to remain elevated during the fourth quarter, largely due
to the reduced supply of Russian products amid sanctions.
The board declared a dividend of 6.006 cents a share, flat on
the prior quarter.
Write to Joe Hoppe at joseph.hoppe@wsj.com
(END) Dow Jones Newswires
November 01, 2022 03:55 ET (07:55 GMT)
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