- British Petroleum (BP) on Tuesday announced earnings of $3.3B in the third quarter of this year, missing the forecast of $4B net income.1
- The energy giant’s earnings were down from $8.1B in the same period during 2022 when oil prices soared after Russia’s invasion of Ukraine.2
- Although oil prices have risen recently, they are sitting lower now than in that period, and BP stated that gas trading has been down in recent months.2
- The company’s adjusted net income, however, increased from the $2.59B it made in the second quarter.3
- BP’s bottom line was also damaged by a $540M impairment charge from the value of three wind farms, which are part of the company’s 'performing while transforming' strategy that involves BP making profits off oil while shifting toward green energy options.4
- Murray Auchincloss, BP’s interim CEO, in a statement, said the company expects 'to grow earnings through this decade' and that it remains dedicated to executing its current strategy.3
- Narrative A, as provided by CNBC. BP is in turmoil, and it might take a while for the petroleum giant to get back on track. Both its CEO and its US boss departed the company, and the windfall that came with Russia’s invasion has tapered off. The dip in oil prices, plus several other worldwide economic factors, will probably combine to keep BP from experiencing the success in the near future that it had hoped for this quarter.
- Narrative B, as provided by FT. BP isn't panicking over this news. Overall the company had a solid quarter except for the blip in gas trading. The company is still committed to its green energy programs, and its stock buyback program will continue. Soon there will be new leadership in place and BP will be meeting expectations once again.