BP reported on Tuesday a rise in third quarter profit, lifted by oil and gas prices and a strong trading performance, allowing it to expand its share buyback programme by more than a billion dollars.
Natural gas and power prices around the world surged this autumn as tight gas supplies collided with strong demand in economies recovering from the COVID-19 pandemic.
BP said it expected natural gas prices to remain strong in the coming months of peak winter demand.
Underlying replacement cost profit, the company’s definition of net earnings, reached $3.32 billion in the third quarter, BP said, exceeding analysts’ expectations for $3.06 billion.
That compares with $2.8 billion in profit in the second quarter and $86 million a year earlier, when energy demand and prices collapsed due to the coronavirus epidemic.
The results were boosted by “very strong trading” which helped BP weather large fluctuations in gas and liquefied natural gas (LNG) prices throughout the quarter.
Reuters reported last month that BP’s trading arm made at least $500 million in the quarter.
“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,” Chief Executive Officer Bernard Looney said.
The company said it will repurchase a further $1.25 billion of its shares by early 2022, after buying $900 million during the third quarter. BP had vowed to use 60% of its surplus cash to boost shareholder returns.
BP’s net debt fell further to $32 billion from $32.7 billion in the second quarter.
The long-term outlook for fossil fuel demand however remains uncertain as world leaders gathers this week in Glasgow, Scotland for a U.N. conference critical to averting the most disastrous effects of climate change.
BP plans to sharply reduce its carbon emissions in the coming decades by increasing its renewable power capacity 20-fold by 2030, while reducing its oil output by 40% and diverting more funds to low-carbon investments.
(Reporting by Ron Bousso; Editing by Kirsten Donovan and Kenneth Maxwell)
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
