Higher refining margins, trading boost BP’s 3Q profit

Spanish Market: Crude oil, Natural gas, Oil products
30/10/26

Significantly higher refining margins and a strong gas trading performance helped BP more than quadruple its profit for July-September, its third-quarter results show.

BP reported profit of $4.7bn for the quarter, up from $1.16bn in the same period last year. Adjusted for inventory valuation effects and one-off items, profit rose to $8.46bn from $2.21bn a year earlier, well ahead of analysts' expectations of $7.3bn.

BP's downstream Customers and Products segment saw its pre-tax adjusted profit jump to $6.95bn from $1.72bn a year earlier. The segment benefited from higher realised refining margins, stronger commercial optimisation and lower turnaround activity, BP said.

BP's refining indicator margin averaged $46.70/bl during the quarter, up from $15.80/bl a year earlier.

Within the upstream, the Oil Production and Operations segment posted a pre-tax adjusted profit of $3.53bn, up by 54pc from a year earlier, mainly reflecting higher oil and gas prices.

BP's other upstream segment, Gas and Low Carbon Energy, more than doubled its pre-tax adjusted profit to $3.18bn, also benefiting from higher realisations. Gas marketing and trading was "significantly higher" than a year earlier, BP said.

Upstream production averaged 2.22mn b/d of oil equivalent (boe/d), down by 6pc from the third quarter last year. BP expects fourth-quarter production of 2.09mn-2.23mn boe/d, reflecting continued disruption in the Middle East, seasonally lower gas demand and a roughly 20,000 boe/d impact from a weather event in the US Gulf of Mexico.

Operating cash flow rose by 90pc on the year to $14.83bn. BP used this cash bonanza to bolster its balance sheet, cutting net debt, excluding lease liabilities, to $13.9bn at 30 September from $22.3bn three months earlier.

Chief executive Meg O'Neill welcomed the progress on debt reduction but cautioned: "We are still too leveraged and further strengthening of the balance sheet remains our number one job."

The company held its quarterly dividend at 8.66¢/share. It suspended its share buyback programme after announcing its 2025 full-year results in February.

BP continues to expect capital spending of $13.5bn-$14bn this year.

By Jon Mainwaring

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