Surging oil and gas prices helped energy giant BP report better-than-expected third quarter profits on Tuesday driven by higher demand and announced a $1.25bn share buyback.
Underlying replacement cost profit came in at $3.32bn, beating forecasts of $3.06bn and compared with a $2.8bn profit in the previous three months and $86m a year ago. The dividend was maintained at 5.46 cents a share.
BP added that it aimed plans a $1.25bn share buyback prior to announcing its fourth quarter results.
Looking ahead, the company said it expected fourth quarter reported upstream production to be higher than the third quarter reflecting major project ramp-up, mainly in gas regions, recovery from seasonal maintenance activity and continuing impacts from Hurricane Ida on our non-operated production in the US Gulf of Mexico.
“Within this, we expect production from both oil production & operations and gas & low carbon to be higher,” it added.
“In our customer businesses, we expect lower product demand due to seasonal impacts and continued base oil tightness and additive supply shortages in Castrol.”
