BP plc (LON: BP) said its underlying replacement cost profit topped estimates in the fiscal third quarter, but upstream production will remain weighed this year. The London-listed shares of the oil giant are down about 3.0% on Tuesday.
Highlights from CEO Looney’s interview with CNBC’s ‘Squawk Box Europe’
On CNBC’s “Squawk Box Europe”, CEO Bernard Looney said the underlying results were “very strong” as he announced plans of buying back $1.25 billion worth of stock in the current quarter.
It was our third strong quarter in a row; another beat. More importantly, $6.0 billion in operating cash, dividend sustained, and the net debt down came down for the sixth quarter in a row.
Looney also confirmed that trading in natural gas remained strong in the recent quarter. He reiterated that BP was investing aggressively in renewable energy for a cleaner future.
In China, we’ve increased the number of charging points eight-fold in the past twelve months. In Germany, we signed a deal with Burger King to put charging points at their outlets. In the UK, Hammersmith is the most widely used charging retail station. We signed a deal with Daimler to build a hydrogen fuelling infrastructure for trucks in Britain and in the EU, we invested into DCS.
BP is also working with Piaggio in Europe and Bluesmart in India to accelerate the shift to EVs. Looney, therefore, expects the world to eventually see that companies like BP “can be a part of the solution”.
Key takeaways from BP’s Q3 financial report
BP said its underlying replacement cost profit printed at $3.32 billion in Q3 versus the year-ago figure of $86 million only. In comparison, analysts had called for $3.06 billion in underlying replacement cost profit.
The London-based company, however, reported $2.54 billion in net loss on higher prices, which was particularly surprising considering it had posted $3.12 billion in net profit just a quarter ago.
BP forecasts upstream underlying production to come in only slightly higher than 2020.
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