BP announces $1.5bn buyback as Q3 underlying profits rise 27%

(Sharecast News) - Oil titan BP has announced a new $1.5bn share buyback after reported an underlying replacement cost profit of $3.3bn for the third quarter. The bottom line result was an improvement from the $2.6bn recorded in the second quarter but well below the $8.2bn in the third quarter of 2022, which benefitted from a massive $8bn-plus favourable accounting adjustment.

The quarter-on-quarter growth was helped by higher realised refining margins, lower levels of refining turnaround activity, a very strong oil trading result and higher oil and gas production, partly offset by a weak gas marketing and trading result, the company said.

Operating cash flow rose to $8.7bn from $6.3bn in the second quarter and $8.3bn the year before, while net debt reduced to $22.3bn from $23.7bn three months earlier.

The company declared a dividend of 7.27 cents per share, the same as the second quarter but higher than the 6.006 cents reported last year.

"This has been a solid quarter supported by strong underlying operational performance demonstrating our continued focus on delivery," said chief executive Murray Auchincloss.

"Momentum continues to build across our businesses, with recent start-ups including Tangguh Expansion, bpx energy's 'Bingo' central processing facility and Archaea Energy's first modular biogas plant in Indiana."