By james art The FTSE 100 company reported profits fell compared with the same period a year earlier as fluctuating global oil demand hit its refining business.
BP reported an underlying profit from replacement costs of $2.27bn (£1.75bn), beating analysts’ expectations but lower than $2.76bn (£2.15bn) in the second quarter .
The profit represented a more than 30% drop from the $3.3bn (£2.54bn) reported at this time last year.
Results for the third quarter of 2024
— bp Press (@bp_Press) October 29, 2024
The decline in margins comes in part from a more general decline in global oil demand of late in the consumer and industrial sectors, as Brent crude prices remain well down from early 2024.
This comes despite escalating tensions in the Middle East and concerns about how the conflict could affect energy sites in the region, which has pushed prices up a bit in recent weeks.
Opec, the cartel of major global oil-producing nations, also lowered its outlook for global oil demand growth this year and next in a report earlier this month.
The figures come amid a push by chief executive Murray Auchincloss to boost the oil company’s performance amid a long-term decline in its share price of late.
This includes scaling back the firm’s renewable energy plans and focusing on oil and gas to restore investor confidence.
BP said it had opted for more than $500m (£385m) of cost cuts for next year, as part of $2bn (£1.5bn) of savings expected by the end of 2026.
Mr Auchincloss said on Tuesday: “We have made significant progress since we set out our six priorities earlier this year to make BP simpler, more focused and of higher value.
“In oil and gas, we see growth potential over the decade with an emphasis on value
volume.
“We also have a deep belief in the opportunity presented by the energy transition – we have established a number of leading positions and will continue to value our investments highly to ensure they are competitive with the rest of our business.
“I am absolutely clear that the actions we are taking will increase the value of BP.”
BP kept its dividend to shareholders steady at 8 cents (6.17p) per share, while keeping the rate of its share buyback program unchanged at $1.75bn (£1.35bn) over the next three months.