British oil and gas giant BP p.l.c. (NYSE:BP) reported mixed third-quarter 2025 results on Tuesday.
Details
The energy company posted adjusted earnings of 85 cents per American depositary share, topping the consensus estimate of 75 cents.
Total revenue rose to $48.42 billion from $47.25 billion in the same quarter last year, falling short of analyst projections of $51.38 billion.
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GAAP profit attributable to shareholders was $1.16 billion, significantly higher than the year-ago profit of $206 million.
Underlying replacement cost (RC) profit for the quarter totaled $2.21 billion, compared with $2.27 billion a year ago.
Operating cash flow was $7.8 billion, up from $6.8 billion in the prior year quarter.
Capital expenditures totaled $3.38 billion, and divestments and other proceeds were $28 million.
BP ended the quarter with $26.05 billion in net debt.
Segment Performance
The Oil Production & Operations segment recorded replacement cost profit before interest and tax of $2.1 billion. After adjusting for $200 million in net adverse impact of adjusting items, the segment’s underlying profit rose to $2.3 billion. Results reflected higher production, mainly in bpx energy.
The Gas & Low Carbon Energy segment generated $1.1 billion in RC profit before interest and tax. After $400 million in adjustments, the underlying profit reached $1.5 billion. Compared with the previous quarter, results improved on higher production and lower depreciation, depletion & amortization costs.
The Customers & Products segment posted $1.6 billion in RC profit before interest and tax. On an underlying basis, profit increased to $1.7 billion after adjusting for $100 million. The segment benefited from seasonally higher volumes, strong integrated performance across fuels and midstream, and a decline in underlying operating expenditure.
Management Commentary
“We’ve delivered another quarter of good performance across the business with operations continuing to run well. All six of the major oil and gas projects planned for 2025 are online, including four ahead of schedule. We’ve sanctioned our seventh operated production hub in the Gulf of America and have had further exploration success. We delivered record 3Q underlying earnings in customers and refining captured a better margin environment,” commented Murray Auchincloss, CEO of BP.
BP Moves To Cut Costs And Sell Assets
The company plans deeper cost cuts and faster asset sales as it faces pressure from activist investor Elliott Management, The Guardian reported on Tuesday.
Auchincloss, under shareholder pressure to refocus on oil and gas rather than renewables, said BP will conduct a broad review of its business to simplify operations and improve efficiency.
BP aims to sell $20 billion in assets by 2027 and expects $5 billion of sales by year-end, including recent US shale and wind divestments.
Outlook
Looking to the fourth quarter, BP expects reported upstream production to be broadly flat sequentially.
Customer business volumes are projected to be lower due to seasonal trends, while product turnaround activity is expected to be at a similar level sequentially.
For 2025, BP expects reported upstream production to dip slightly, while underlying upstream output is projected to remain largely unchanged quarter over quarter.
The company now anticipates divestment and other proceeds exceeding $4 billion, supported by roughly $5 billion in completed or announced asset sales.
Meanwhile, BP maintains its expectation for Gulf of America settlement payments in 2025 at approximately $1.2 billion pre-tax, with $1.1 billion already paid in the second quarter.
BP reaffirmed its outlook for capital expenditure at roughly $14.5 billion in 2025, with the $13–15 billion range for 2026 and 2027.
Shareholder Returns
BP announced a quarterly dividend of 8.32 cents per ordinary share.
The company plans to finish $750 million share buyback program before reporting the fourth quarter results.
The company reaffirmed its commitment to return 30% to 40% of operating cash flow to shareholders through buybacks and dividends.
Recent Key Events
BP announced the sale of its non-controlling stakes in midstream assets to a private investor for $1.5 billion.
Price Action: BP shares were trading higher by 0.20% to $34.93 premarket at last check Tuesday.
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