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BP PLC on Tuesday said it continued to make good progress in the third quarter as it delivered better-than-expected profit and announced a new share buyback. The London-based oil major reported underlying replacement cost profit of $2.21 billion in the third quarter, down 2.6% from $2.27 billion a year ago, but ahead of $2.02 billion company compiled consensus. Underlying RC profit per share improved 2.5% to 14.24 US cents from 13.89 cents last year. Adjusted earnings before interest, tax, depreciation and amortisation increased 3.4% to $9.98 billion from $9.65 billion a year ago. Pretax profit jumped to $3.24 billion from $1.40 billion a year ago, while total revenue and other income advanced 1.9% to $49.25 billion from $48.33 billion. Operating cash flow improved to $7.79 billion from $6.76 billion a year ago. In response, shares in BP were up 0.6% at 450.05 pence each in London on Tuesday morning. Chief Executive Murray Auchincloss called it another quarter of ‘good performance across the business’ with operations continuing to run well. ‘We continue to make good progress to cut costs, strengthen our balance sheet and increase cash flow and returns. We are looking to accelerate delivery of our plans, including undertaking a thorough review of our portfolio to drive simplification and targeting further improvements in cost performance and efficiency. There is much more to do but we are moving at pace, and demonstrating that BP can and will do better for our investors.’ BP said it expects divestment and other proceeds received in 2025 to be above $4 billion. Full year capital expenditure guidance continues to be around $14.5 billion with organic capital expenditure remaining on track to be below $14 billion. Net debt increased to $26.05 billion from $24.27 billion. BP said it expects total shareholder distributions of between 30% and 40% of operating cash flow over time. It intends to execute a $750 million share buyback programme prior to reporting the fourth quarter results, unchanged from the level seen in the second quarter. The dividend was increased to 8.32 cents from 8.00 cents a year ago, and unchanged from the prior quarter. Looking ahead, BP expects fourth quarter reported upstream production to be broadly flat compared with the third quarter. Within this, it expects reported production from oil production & operations to be ‘slightly higher’ and production from gas & low carbon energy to be lower. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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