BP Reports Significant Q3 Profit Increase on Higher Energy Prices
··2 min read
BP, the British energy giant, reported a significant increase in third-quarter net profit, reaching $4.7 billion, a fourfold rise from $1.2 billion in the same period last year. The surge was driven by higher oil and gas prices, improved refining margins, and stronger trading performance, according to the company's financial results released Friday.
The company's underlying replacement cost profit, BP's preferred measure of earnings, increased to $8.5 billion from $2.2 billion. Operating cash flow also saw a substantial rise, climbing to $14.8 billion from $7.8 billion a year earlier, supported by higher underlying earnings.
Despite the strong financial performance, BP recorded $4 billion in post-tax net impairments during the quarter, primarily related to its energy transition businesses.
For the first nine months of 2026, BP's net profit reached $12.4 billion, compared with $3.5 billion in the same period last year. Capital expenditure declined to $9.4 billion from $10.4 billion.
BP's upstream production stood at 2.2 million barrels of oil equivalent per day in the third quarter, down from approximately 2.4 million a year earlier. The company's average Brent crude price reached $97 per barrel, up from $69.1 in the corresponding period of 2025.
BP's refining indicator margin increased to $46.7 per barrel from $15.8 a year earlier, while refining availability reached 96.5%, compared with 94.7% in the previous quarter. The customers and products division reported underlying replacement cost profit before interest and tax of $6.9 billion, up from $1.7 billion a year earlier, driven largely by higher refining margins and stronger oil trading.
BP reduced its net debt to $13.9 billion at the end of September from $22.3 billion at the end of June, supported by stronger cash generation and its decision to prioritize balance sheet improvements. The company completed the sale of its Gelsenkirchen refinery in Germany during July and agreed to divest its Austrian mobility and convenience business.
BP also announced plans to market its North Sea and Archaea businesses as part of a broader portfolio review.
