BP’s Q3 net profit quadruples on higher oil prices

British energy company BP reported a quadrupling of its net profit in the third quarter due to surging oil prices and higher refining margins, according to a statement released on Friday. The profit after tax surged to US$4.70 billion from US$1.16 billion in the same period last year. BP's Chief Executive, Meg O'Neill, expressed satisfaction with the strong results, which were bolstered by the prevailing higher-priced, higher-margin environment.

The group's Q3 performance benefited significantly from strong refining margins, reflecting the difference between crude oil prices and the fuels produced from it. Global supplies of refined products in the Middle East, heavily impacted by the Middle East war, have been disrupted, allowing refineries unaffected by the conflict to capitalize on tighter global supplies.

O'Neill, who assumed the role of chief executive in April, noted that the market remains volatile and that trade flow disruptions continue to shape energy markets. BP's net debt in the third quarter stood at US$13.87 billion, a decrease from US$22.25 billion in the previous quarter, and the company had also achieved its cost-reduction targets.

Despite generally lagging behind its rivals in recent years, BP has recently reduced investments in clean energy as it refocuses on its more profitable oil and gas business under O'Neill's leadership. O'Neill plans to unveil the company's new strategy in December, with a primary focus on debt reduction and cost-cutting measures.

BP's performance is expected to be compared to that of its competitors, including Britain's Shell and France's TotalEnergies, which announced substantial profits earlier in the week due to improved refining margins and hydrocarbon prices.