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BP PLC on Tuesday said third quarter performance was driven by higher-than-expected upstream volumes, robust refining margins although the oil trading result is expected to be ‘weak’. In response, shares in the London-based oil major were down 1.5% to 415.70 pence each in London on Tuesday. The wider FTSE 100 was down 0.3%. Brent crude was trading down at $62.42 per barrel compared to $63.40 at the time of the London equity market close on Monday. In a trading update, BP said upstream production in the third quarter is now expected to be higher compared to the prior quarter, with production higher in both oil production & operations, primarily higher gas production in bpx energy, and in gas & low carbon energy. In gas & low carbon energy, realisations are expected to have an impact of around $100 million, compared to the prior quarter, including changes in non-Henry Hub natural gas marker prices. The gas marketing and trading result is expected to be average. In oil production & operations, realisations are expected to be broadly flat compared to the prior quarter, including the impact of the price lags on BP’s production in the Gulf of America and the United Arab Emirates. Compared to the prior quarter, exploration write-offs are expected to be around $100 million higher. In customers & products, results are expected to be influenced by seasonally higher volumes with broadly flat fuels margins, stronger realised refining margins in the range of $300 million to $400 million and a significantly lower level of turnaround activity, partly offset by environmental compliance costs and the impact of unplanned Whiting outage due to exceptional weather conditions. BP said its refining indicator margin averaged $15.8 per barrel in the third quarter compared to $11.9 per barrel in the second quarter. The oil trading result is expected to be weak, BP added. In addition, BP expects third quarter asset impairments in the range of $200 million to $500 million. These items are excluded from underlying replacement cost profit. Net debt at the end of the third quarter is expected to be broadly flat compared to the end of the second quarter at around $26 billion. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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