BP announced lower-than-anticipated earnings of $3.3 billion (£2.7 billion) for the third quarter of this year due to a decrease in energy prices worldwide and a decline in their gas trading division.
The company reported a 50% decrease in profits for the three-month period ending in September compared to the previous year, when it earned $8.2 billion due to a spike in oil and gas prices following Russia’s takeover of Ukraine.
The outcome was significantly lower than the anticipated $4 billion for the quarter, according to analysts’ predictions.
BP’s recent financial results show lower profits than anticipated, which is the first report since their CEO’s sudden departure last month.
Bernard Looney resigned from his position as leader after three years due to not fully disclosing his relationships with colleagues. He was additionally facing criticism from shareholders regarding his proposal to decrease oil production by the end of the next ten years.
BP’s current chairman, Helge Lund, is actively searching for a new CEO. This could potentially result in the company hiring an external candidate for the first time in many years. In the meantime, the position is being temporarily filled by BP’s chief financial officer, Murray Auchincloss.
Auchincloss stated that the company had a successful quarter due to its strong operational performance.
He stated: “As we discussed in our investor presentation in Denver, we are dedicated to implementing our plan, anticipate earning growth in the next decade, and are on schedule to provide significant returns for our investors.”
BP is facing increased scrutiny from environmental organizations after adjusting its climate goals while also reporting a significant increase in annual profits to $28 billion for 2022.
According to a study by IPPR, a progressive research organization, BP has put nine times more money into fossil fuels than renewable energy in the past two years.
According to Joseph Evans, an IPPR researcher, BP’s focus is on making profits rather than prioritizing the well-being of people and the environment. Despite the urgent need for energy companies to shift their investments away from fossil fuels in response to climate change, BP has instead chosen to heavily invest in their oil and gas business to generate significant profits and benefit their shareholders through buybacks totaling over $1 billion.
According to Charlie Kronick, a top climate advisor at Greenpeace UK, BP’s profits continue to soar while regular individuals bear the brunt of climate change through devastating storms on both sides of the Atlantic.
The oil industry has had a significant impact on contributing to climate change. In the upcoming Cop talks, global leaders must hold BP and other companies accountable for their drilling practices and make them responsible for the harm they are causing to the environment, as the UK government has not taken action.
On Tuesday morning, BP’s stock dropped by over 5% following the release of their results, causing it to be the top decliner on the FTSE 100.