BP Reports Significant Rise in Net Profit for Third Quarter

British energy group BP has announced a substantial increase in net profit for the third quarter, driven by its ongoing turnaround plan. Despite falling oil prices, the company’s profit after tax rose to $1.16 billion for the July-September period, compared to $206 million in the same quarter of 2024. Underlying net profit, excluding exceptional items, dipped but exceeded analysts’ forecasts.

According to BP’s chief executive, Murray Auchincloss, the company is making progress in cutting costs, strengthening its balance sheet, and increasing cash flow and returns. Auchincloss noted that while there is still work to be done, BP is moving at a rapid pace to improve its performance for investors.

In February, BP shifted its focus back to its more profitable oil and gas business, scaling back its targets for reducing carbon emissions and slashing clean energy investment. However, energy prices have been under pressure due to concerns over US President Donald Trump’s tariffs and increased oil production by OPEC+ nations.

BP expects divestments for the full year to be higher than forecast as it seeks to simplify its business and boost performance. The company’s announcement comes after British rival Shell reported a jump in third-quarter net profit, driven by improved trading margins and sales volumes.

The rise in BP’s net profit is a significant development in the energy sector, particularly in light of the current market challenges. As the company continues to execute its turnaround plan, it will be closely watched by investors and industry analysts. With its focus on increasing efficiency and profitability, BP aims to demonstrate its ability to adapt to changing market conditions and deliver value to its stakeholders. The company’s progress will be crucial in determining its position in the global energy landscape.