BP Posts Third-quarter Loss Of $2.2bn
BP reported a third-quarter (Q3) net loss of $2.2 billion, compared with a profit of $9.3 billion in the previous quarter. The result includes inventory holding losses net of tax of $2.2 billion and a charge for adjusting items net of tax of $8.1 billion, according to reports by Oil and Gas Journal.
This charge includes adverse fair value accounting effects of $10.1 billion, primarily due to further increases in forward gas prices compared to the end of the second quarter, partly offset by $2 billion gain on sale relating to the formation of Azule Energy.
However, the underlying replacement cost profit, used as a proxy for net profit, was $8.2 billion for third-quarter 2022, supported by high commodity prices and robust gas marketing and trading. That compared with $8.5 billion in the previous quarter. Compared to the second quarter, the third-quarter results were impacted by weaker refining margins, an average oil trading result and lower liquids realizations, partly offset by an exceptional gas marketing and trading result and higher gas realizations, OGJ reports.
“This quarter’s results reflect us continuing to perform while transforming,” bp chief executive officer Bernard Looney said in a statement. “We remain focused on helping to solve the energy trilemma – secure, affordable, and lower carbon energy. We are providing the oil and gas the world needs today—while at the same time—investing to accelerate the energy transition,” Looney said.
Capital expenditure in the quarter was $3.2 billion. bp now expects capital expenditure of around $15.5 billion in 2022 if the acquisition of Archaea Energy completes before yearend.
During the third quarter, bp completed share buybacks of $2.9 billion. The $3.5 billion share buyback program announced with the second quarter results was completed on Oct. 27, 2022. bp’s net debt fell for the tenth successive quarter to reach $22 billion at the end of the third quarter.
Source: OGJ
