MercoPress. South Atlantic News Agency

BP third quarter profits lower than expected

According to the company's report, “while oil production was strong, gas trading had been weak in recent months.”

British Petroleum posted profits of US$ 3.3bn (£2.7bn) between July and September, lower than predictions of US$ 4bn. Earnings were down from US$ 8.1bn in the same period in 2022 when BP made huge profits following Russia's invasion of Ukraine, which led to oil prices soaring.

Oil prices are currently lower than that period, but have risen recently. According to the company's report, “while oil production was strong, gas trading had been weak in recent months.”

Its latest results are the first to be released after Bernard Looney resigned as the CEO in September following a review of his personal relationships with colleagues.

Mr Looney, who had led the company since 2020, stepped down with immediate effect.

While BP's profits for the three months to the end of September were lower than predicted by analysts, earnings were up from US$ 2.6bn in the previous quarter.

“I think the business is stable despite not having a chief executive at the moment full-time properly, but I think there's a touch of complacency,” former BP executive Nick Butler told the BBC's Today programme.

But interim chief executive Murray Auchincloss said the quarter had been solid and the company expected to “grow earnings through this decade, and on track to deliver strong returns for our shareholders”.

The company said the rise in profits from earlier this year was a result of higher oil refining margins and increased oil and gas production. However, it added that money made on its oil was “partly offset by weak gas marketing and trading”.

BP said it expected refining margins across the oil and gas industry to be “significantly lower” towards the end of 2023.