BP's shares have dropped to their lowest level since 2022, after the company reported a sharp reduction in profit in its third quarter 2024 results. Shares are currently down 4.3% at £3.82.on the London Stock Exchange.
The British energy giant reported a replacement cost profit — its proxy for net profit — of US$2.3bn for July through September, marking a 30% decline from the previous quarter’s US$3.3bn. Despite beating the analyst consensus forecast of US$2.1bn, BP’s results reflect its weakest quarter since 2020, primarily due to the falling price of oil and lower refining margins.
CEO Murray Auchincloss highlighted BP's ongoing restructuring efforts, focusing on simplifying operations and enhancing value over volume. This shift includes a partial pivot from aggressive renewable energy expansion toward bolstering more profitable fossil fuel projects. Auchincloss noted BP’s “significant progress” since implementing the six priorities announced in April at its AGM, aiming to make BP "simpler, more focused, and higher value."
The company maintained its dividend at 8 cents per share and committed to a US$1.75bn share buyback over the next three months. Despite these moves, BP’s share price remains down 16% year-to-date, underperforming some European competitors, as investors continue to evaluate BP’s long-term investment strategy amid concerns over oil demand. Recent global oil price reductions — down 17% in the third quarter — have compounded challenges for the company.
