|
BP PLC shares fell early on Tuesday, after the London-based oil major saw underlying replacement profit fall in the third quarter, although it rose at a statutory pretax level, while revenue fell. The London-based oil major also announced a further $1.5 billion share buyback programme, the same amount it announced with its second quarter results in August. Shares in BP were down 5.1% to 500.00 pence each in London on Tuesday morning. In the third quarter of 2023, underlying replacement cost profit fell 60% to $3.29 billion from $8.15 billion a year earlier. BP said analysts estimated third quarter underlying replacement cost profit would be higher at $4.01 billion. Statutory pretax profit multiplied to $7.31 billion to $1.98 billion, however. Revenue fell 6.6% to $54.02 billion from $57.81 billion. In Gas & Low Carbon Energy, third quarter total hydrocarbons production fell to 946,000 barrels of oil equivalent per day from 981,000 barrels, with average realisations falling to $36.82 per barrel of oil equivalent per day from $60.80. In Oil Production & Operations, total hydrocarbons production rose to 1.38 million barrels per day from 1.32 million, with average realisations falling to $56.76 per barrel from $86.83. ‘This has been a solid quarter supported by strong underlying operational performance demonstrating our continued focus on delivery,’ said Interim Chief Executive Officer Murray Auchincloss. ‘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.’ BP said the purpose of announcing a further $1.5 billion share buyback was to reduce the shares of the company towards distributing 60% of surplus cash flow generated in 2023 by the company. It will run until February 2. BP also announced a third quarter dividend, rising to 7.27 US cents from 6.00 cents a year earlier. Looking ahead, said it expects oil prices in the fourth quarter to be supported by Opec+ production restrictions and the continued demand rebound. ‘European gas and Asian [liquefied natural gas] prices will be driven by weather, demand recovery in Europe and China and ongoing geopolitical tension. In the US, weather is also a risk factor, but higher than normal storage levels and higher production should help to dampen volatility,’ the company said, adding it expects industry refining margins to be significantly lower than the third quarter. It expects fourth quarter Upstream production to be broadly flat from the third quarter. For 2023, it expects both reported and underlying upstream production to be higher compared with 2022. Within this, it expects underlying production from Oil Production & Operations to be higher and production from Gas & Low Carbon Energy to be slightly lower. Based on current forecasts, BP said it continues to expect to deliver share buybacks of around $4.0 billion per year, at the lower end of its $14 billion to $18 billion capital expenditure range, and to have capacity for annual dividend increase of around 4%. Copyright 2023 Alliance News Ltd. All Rights Reserved.
|
