Energy giant BP this morning revealed that underlying global profits for the third quarter of 2022 had dipped slightly to £7.064billion when compared to the £7.325billion recorded in Q2.
The company explained that the Q3 results were impacted by weaker refining margins, an average oil trading result and lower liquids realisations - partly offset by an exceptional gas marketing and trading result and higher gas realisations.
During the third quarter, BP generated surplus cash flow of £3.03billion and intends to execute a £2.17billion share buyback prior to announcing its fourth-quarter results.
This will bring its total announced share buybacks from 2022 surplus cash flow to £7.37billion - equivalent to 60% of 2022 surplus cash flow in the year to date.
BP also revealed it expected to pay nearly £700million in the UK windfall tax this year.
Chief executive Bernard Looney said: "This quarter's results reflect us continuing to perform while transforming.
Energy trilemma
"We remain focused on helping to solve the energy trilemma - secure, affordable and lower-carbon energy. We are providing the oil and gas the world needs today while at the same time investing to accelerate the energy transition."
At the Adipec conference in Abu Dhabi yesterday, the CEO spoke about this strategy.
He told the event: "What the world needs, more than ever right now, is a conversation and a series of actions that are involved in the practicalities and realities of today and tomorrow.
"And by that I mean our strategy as BP - which we're executing in the UK, we're working on here in the Middle East and we're doing it in the United States and across the world - is to invest in hydrocarbons today, because today's energy system is a hydrocarbon system."
Mr Looney said his company was "obviously trying to produce those hydrocarbons with the lowest possible emissions" whilst at the same time investing in "accelerating the energy transition".
He added: "And we're doing that in Britain, we're doing that in the United States, we're doing it here (in the Middle East)," - and he mentioned activities such as carbon capture, electric vehicle charging, hydrogen and offshore wind.
Transformation
In today’s results, BP said it was progressing its transformation to an integrated energy company.
It added: "BP is accelerating its biogas strategy - part of its bioenergy transition growth engine - agreeing to acquire Archaea Energy, a leading US biogas company.
"BP has also continued to make progress high-grading its portfolio: completing the creation of Azule Energy, a 50:50 joint venture combining its Angolan assets with those of Eni; taking the final investment decision on the Cypre project offshore Trinidad; and announcing an agreement to sell its upstream business in Algeria to Eni."
The company said it was continuing to advance its growth strategy in electric vehicle charging and convenience - announcing plans to collaborate with Hertz in North America to install a national network of EV charging solutions.
In low-carbon energy, BP said it has continued to progress its renewables and hydrogen strategy.
And, in the UK, two BP-led projects - H2Teesside and Net Zero Teesside Power - have been shortlisted in phase 2 of the UK Government's cluster sequencing process for support of carbon capture, use and storage.