Shares in BP dropped sharply on Tuesday after the British oil major fell short of analysts’ expectations in posting a 60% drop in its third-quarter profits, following a weak performance from its gas trading division.
In the first set of results following its CEO reshuffle, the London-listed company missed analysts’ forecasts in posting third-quarter replacement cost profits worth $3.29 billion, compared to the $4.01 billion forecast by 23 analysts polled by the company itself.The $3.29 billion worth of profits marks a 60% drop on the bumper $8.15 billion profits it posted in the third quarter of 2022, after oil and gas prices surged following Russia’s invasion of Ukraine.
Higher earnings from BP’s oil segment were partially offset by lower profits from its gas business, which the firm blamed on weak results from its gas market and trading division. BP, in turn, held its dividend 7.27 cents per share, as the company said it would buy back a further $1.5 billion worth of its own shares in the fourth quarter, after it bought back $2 billion worth of shares in the third quarter.