BP reported better-than-expected quarterly profits and announced an accelerated overhaul of its business, including increased asset sales and further cost cuts. The oil giant posted underlying replacement cost profits of 2.21 billion US dollars for the three months to September 30, beating analyst expectations of 2.02 billion dollars despite falling 3% year-on-year.
Chief Executive Murray Auchincloss said the company is intensifying efforts to streamline operations. "We are looking to accelerate delivery of our plans, including undertaking a thorough review of our portfolio to drive simplification and targeting further improvements in cost performance and efficiency," he stated. The profits were 6% down from the previous quarter amid benchmark Brent crude prices falling 13% year-on-year.
BP now expects to raise more than four billion dollars from divestments in 2025, up from earlier targets. The company has already completed or announced asset sale agreements worth around five billion dollars this year. It also announced another 750 million dollar share buyback ahead of full-year results.
Shareholder Pressure
The accelerated overhaul comes as activist investor Elliott Management recently acquired a 5% stake in BP, putting pressure on the company to boost returns. BP in August announced 6,200 job cuts, representing roughly 15% of its office-based workforce. The company has already slashed 3,200 contractor roles since January, with another 1,200 expected by end of 2025.
BP earlier this year unveiled a growth strategy pivoting back towards oil and gas extraction, scaling back its green energy ambitions and cutting renewable spending. "There is much more to do but we are moving at pace, and demonstrating that BP can and will do better for our investors," Auchincloss added. The company's customers and products division saw profits before interest and tax jump to 1.72 billion dollars from 381 million dollars the previous year, driven by higher refining margins.
Note: This article was created with Artificial Intelligence (AI).
