BP Reports $2.3 Billion Third Quarter Profit Amid Weak Demand Environment

BP Plc (NYSE:BP) announced on Tuesday that it recorded a third-quarter profit of $2.3 billion, marking its lowest earnings in nearly four years. This significant profit drop, down 30% compared to the same period last year, is attributed to lower refining profits and weaker performance in oil trading.

The decline reflects broader challenges in the global economy, including a slowdown in oil demand from China. This development intensifies scrutiny during a time when CEO Murray Auchincloss aims to improve BP's financial results while attempting to manage investor concerns regarding the company's strategy for transitioning to cleaner energy sources.

Despite the downturn, BP's third-quarter underlying replacement cost profit, which the company uses as a measure of net income, exceeded analyst expectations. The reported figure of $2.27 billion surpassed the anticipated $2.05 billion, although it remains lower than the $2.8 billion recorded in the second quarter of 2024 and the $3.3 billion from the same quarter last year.

These results, the weakest since the fourth quarter of 2020, did not affect BP's shareholder returns. The company maintained its dividend at 8 cents per share, consistent with the increase implemented in the previous quarter. Additionally, BP confirmed it would continue its share buyback program at a rate of $1.75 billion over the next three months.