BP has reported underlying replacement cost profit, the company’s definition of net earnings, of $3.32bn for the third quarter of 2021, compared to $86m in the same quarter a year ago.
The surge in profit was attributed to a rebound in oil and gas prices, and refining availability and throughput, as well as ‘robust’ gas marketing and trading result.
However, the British oil major posted a loss of $2.54bn attributable to shareholders due to accounting effects of $6.1bn as a result of the forward gas price surge.
At the end of the quarter, the oil firm reduced its net debt to $31.97bn and received $313m in divestment and other proceeds.
Commenting on the performance, BP CEO Bernard Looney said: “This has been another good quarter for BP. Our businesses are generating strong underlying earnings and cash flow while maintaining their focus on safe and reliable operations.
“Rising commodity prices certainly helped, but I am most pleased that quarter by quarter, we’re doing what we said we would, delivering significant cash to strengthen our finances, grow distributions to shareholders and invest in our strategic transformation.”
For Q3 2021, BP announced a $0.0546 per ordinary share dividend, which will be paid in the fourth quarter.
The oil firm’s operating cash flow stood at $5.97bn for the quarter ending 30 September 2021.
The company also plans to undertake a share buyback programme of $1.25bn prior to announcing its Q4 2021 results.
In a press statement, BP said: “BP expects to outline plans for the final tranche of buybacks from 2021 surplus cash flow at the time of such results.”