BP Turns To Profit In Q3; To Execute Further $1.5 Bln Share Buyback

British energy major BP Plc (BP.L,BP_UN.TO,BP) reported that its third quarter profit attributable to shareholders was $4.86 billion or $1.66 per ADS compared to a loss of $2.16 billion or $0.69 per ADS in the same quarter last year.

BP intends to execute a further $1.5 billion share buyback prior to reporting fourth quarter results. The $1.5 billion share buyback program announced with the second quarter results was completed on 27 October 2023.

bp announced a dividend per ordinary share of 7.270 cents for the third quarter.

In the fourth quarter, bp expects oil prices to be supported by OPEC+ production restrictions and the continued demand rebound.

Looking ahead, the company expects fourth-quarter 2023 reported upstream production to be broadly flat compared to third-quarter 2023.

For 2023, bp expects both reported and underlying upstream production to be higher compared with 2022.

bp continues to expect to be able to deliver share buybacks of around $4.0 billion per annum, at the lower end of its $14 billion – $18 billion capital expenditure range, and have capacity for an annual increase in the dividend per ordinary share of around 4%.

BP reported that its profit before taxation for the third quarter climbed to $7.31 billion from $1.98 billion in the prior year.

After adjusting profit attributable to bp shareholders for inventory holding gains and net impact of adjusting items, underlying replacement cost profit for the third quarter was $3.29 billion or $1.15 per ADS, compared with $8.15 billion or $2.59 per ADS last year. The reduction in underlying replacement cost profit for the third quarter mainly reflects lower oil and gas realizations and a weak gas marketing and trading result.

Analysts polled by Thomson Reuters expected the company to report earnings of $1.37 per share for the third quarter. Analysts’ estimates typically exclude special items.

Total revenues and other income for the third quarter declined to $54.02 billion from $57.81 billion in the prior year. Analysts expected revenue of $57.71 billion for the quarter.

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