On Tuesday, BP (NYSE: BP) reported a third-quarter profit of $8.15 billion, far exceeding expectations thanks to a strong natural gas trade.The company also announced another $2.5 billion in share repurchases.
After rivals such as Shell (LON:RDSa), Exxon Mobil (NYSE:XOM), and TotalEnergiesPA last week reported another round of bumper profits, calls from politicians to hit the sector with new windfall taxes to help governments with soaring energy costs were revived. BP is the last major Western energy giant to report quarterly results.
U.S. President Joe Biden warned major oil firms on Monday not to engage in “war profiteering” and threatened to impose taxes if they don’t improve production.
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BP will repurchase $2.5 billion worth of shares after having already spent $7.6 billion this year. BP hiked its dividend by 10% during the quarter. BP has pledged to return 60% of its surplus income to shareholders.
According to BP, its definition of net income was an underlying replacement cost profit for the third quarter of $8.15 billion, as opposed to analysts’ estimates of a $6 billion loss.
Stronger refining margins and “average” oil trading were countered by “an extraordinary gas marketing and trading result” and higher gas prices, which contributed to the positive outcome.
In the first quarter of 2022, BP earned $3.3 billion, and in the second quarter of 2022, it earned $8.45 billion, which was a 14-year high.
