BP posted a sharp jump in quarterly profit on Friday, as the ongoing war in the Middle East continues to drive up oil and gas prices and fuel what the company called "significantly higher" trading activity. Third-quarter underlying replacement-cost profit — BP's preferred measure of underlying income — rose to $8.46bn, up from $2.2bn a year earlier and above the $7.33bn analysts had expected.
The company said the jump "mainly reflects significantly higher realised refining margins and significantly higher gas and marketing trading result." Although global crude prices remain below the peaks of the 2022 energy crisis, pump prices for fuels including diesel have soared to all-time highs across the UK, Europe and the US in recent months, as severe disruption to refineries in the Gulf region and across Russia has tightened supply.
Chief executive Meg O'Neill said: "These are dynamic times, with volatility and disruption to trade flows continuing to define energy markets. The industry as a whole has been showing remarkable adaptability. Refineries have been running close to capacity to make up for shortfalls, shipping has been taking different and longer routes, and releases from strategic and commercial reserves are helping to bridge supply gaps."
The results angered climate campaigners. "As millions of households brace themselves for a cold winter, huddling under blankets and clutching hot-water bottles as they struggle to pay their bills, BP is raking in huge profits while doubling down on gas and oil production and slashing investment in renewables," said Danny Gross of Friends of the Earth. BP's windfall follows similarly strong refining-driven results this quarter from Shell and France's TotalEnergies, both of which reported their best profits since 2022.
BP said it would use the extra cashflow to clear its remaining liabilities from the 2010 Deepwater Horizon oil spill, which still stood at $5.94bn. The company is expected to lay out its first full strategy update under O'Neill on December 15, with analysts watching for signs BP will grow oil and gas production further and potentially restart share buybacks next year.