BP's profits surged to a record $8.5bn last quarter, nearly quadrupling year-on-year and beating analyst forecasts of $7.3bn. The bumper profit was driven by the company's five refineries in the US and Europe, which reported an earnings rise of $2.5bn as fuel shortages pushed prices higher. BP earned nearly $47 per barrel refined, up from $30 previously.
The windfall has helped the company cut its net debt by over 45% since Meg O'Neill took over as CEO in April, reducing it to $13.9bn. BP also met its cost-reduction targets and plans to focus on paying off remaining liabilities from the Deepwater Horizon disaster. O'Neill emphasized maintaining production at 2.2 million barrels a day and improving refining performance to capture the opportunity provided by higher prices.
BP's results follow bumper earnings at European rivals Shell, TotalEnergies, Eni and Repsol. The UK oil major had previously aimed to reduce net debt to between $14bn and $18bn by the end of next year, but has now hit that target early. BP will set out a new strategy in December.
O'Neill said much of the strategy "shouldn't surprise anyone" as the company continues to focus on financial resilience and improving performance in oil and gas production, refining and trading.
Source: Financial Times Companies · Summarized by HeadlinesBriefing