BP said Tuesday that higher oil and natural gas prices had led to sharply higher earnings in the third quarter. The company said that its “underlying replacement cost profit” for July through September was $3.3 billion, compared with $86 million in the period a year earlier.
Prices for oil have steadily risen over the last year as economies have expanded since pandemic lockdowns, and BP joined other oil companies in reporting a big jump in quarterly earnings.
BP, which is based in London, said that it received about $66.39 on average for a barrel of oil in the quarter, compared with $37.77 in the earlier period. BP also said it earned $868 million from its minority holding in the Russian oil giant, Rosneft, compared with a $278 million loss a year ago.
Analysts said the results were slightly better than forecasts.
“Rising commodity prices certainly helped,” the chief executive, Bernard Looney, said in a statement.
Acknowledging the role that the Organization of the Petroleum Exporting Countries and its allies have played in lifting prices in recent months, BP said that the producers’ “decision making on production levels continues to be a key factor in oil prices.”
OPEC and its allies, including Russia, are expected to meet on Thursday to discuss production levels. President Biden is leaning on them to accelerate their pace of increasing output to bring down gasoline prices for consumers. Brent crude, the international benchmark, is now selling for about $85 a barrel.
BP held its dividend steady for the quarter at 5.46 cents per share, and announced a $1.25 billion share buyback.
On a call with analysts, Mr. Looney shrugged off what may be growing pressures to break up big oil companies. Recently, Third Point, a New York-based fund management firm, suggested that Royal Dutch Shell, BP’s rival, could be substantially more valuable if broken up into an oil business and a lower carbon energy business.
“We are not hearing that call from our investors,” Mr. Looney said.
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November 02, 2021 at 06:48PM
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BP’s Quarterly Profit Rises as Oil and Gas Prices Soar - The New York Times
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