GOM - BP profit soars on higher oil and gas prices

Driven by higher oil and gas prices and refining margins and strong trading results as the world is recovering from the pandemic, energy major BP saw its profit soar in the third quarter of 2021 when compared to the same period last year.

Underlying replacement cost profit was $3.3 billion, compared with $2.8 billion for the second quarter of 2021 and compared with $86 in the third quarter of 2020 amid volatile and challenging market conditions due to the Covid-19 pandemic.

According to BP, this result was driven by higher oil and gas realizations, higher refining availability and throughput enabling the capture of a stronger environment and a stronger gas marketing and trading result, partly offset by a higher underlying tax charge.

BP received $5.4 billion of divestment and other proceeds in the first nine months including $0.3 billion during the third quarter and the company now expects proceeds of $6-7 billion by the end of 2021.

BP’s net debt fell to $32 billion at the end of the third quarter from $40.4 billion in the same period last year.

For the third quarter, BP has announced a dividend of 5.46 cents per ordinary share payable in the fourth quarter – unchanged following the 4 per cent increase announced with second-quarter results.

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