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BP was able to exceed analysts’ expectations in its Q3 2022 profits due to high commodity prices.
British multinational oil and gas company BP p.l.c. (NYSE: BP) has announced an $8.2 billion profit in Q3 of 2022. While announcing its quarterly financial results, the oil and gas giant revealed stronger-than-expected profits. Analysts had expected the quarterly net profit to come in at $6 billion. Additionally, the company said underlying replacement cost profit, which is used as a proxy for net profit, was $8.2 billion in the period. The Q3 2022 profits represent a huge jump from what BP reported in the same period in 2021. British energy noted that its net profit was $33 billion at the time.
CEO Bernard Looney commented:
”This quarter’s results reflect us continuing to perform while transforming. We remain focused on helping to solve the energy trilemma- secure, affordable and lower carbon energy. We are providing the oil and gas the world needs today – while at the same time – investing to accelerate the energy transition. Our agreement on Archaea Energy is the most recent step in our strategic transformation of bp.”
Meanwhile, BP said its Q2 earnings were driven by strong realized refining margins, continuing exceptional oil trading performance, and higher liquids realizations.”
BP Reports Impressive Q3 2022 Earnings
BP was able to exceed analysts’ expectations in its Q3 2022 profits due to high commodity prices. In addition, broad gas marketing and trading also contributed to the remarkable performance. According to the Q3 earnings report, BP completed shares buybacks of $2.9billion in the three months that ended in September. It added that the $3.5 billion share buyback program announced while reporting its Q2 results was concluded on the 27th of October. The company’s net debt also reduced from $22.8 billion in the second quarter to $22 billion in the last quarter. BP said the net debt reduction in Q3 2022 marks the tenth successive quarter of lower net debt.
However, the oil giant also reported a net loss for the quarter of $2,2 billion. This is in comparison to the $9.3 billion in Q2. Per BP, inventory holding losses net of tax of $2.2 billion is included in the Q2 2022 financial performance report. Inclusive is also the charge for adjusting items net of tax of $8.1 billion.
Besides BP, many other oil majors have released impressive results in Q3 2022 and other quarterly reports. The likes of TotalEnergies, Exxon (NYSE: XOM), Chevron (NYSE: CVX), and Shell all amassed significant profits in Q3, resulting in almost $50 billion. These oil and gas giants mostly benefited from increasing commodity prices after Russia invaded Ukraine.