BP’s Bottom Line Takes a Hit – Profits Tumble by Nearly a Third
BP’s latest quarterly figures have come in a bit lighter on the ton, with earnings slipping to £1.75 billion—a stark contrast to the market’s expectation of roughly £2.15 billion. It’s a 30% drop from a £2.54 billion haul two years ago, largely thanks to shrinking refining margins that have been chewing into the company’s bottom line.
Where the Crunch Lies
- Refining Margins Down: Tighter spreads at BP’s distillation plants are pulling the earnings needle down.
- Market Conditions: Global oil prices have been volatile, making it harder for BP to keep margins healthy.
- Competitive Pressure: Peer companies are constantly tightening price spreads, which puts extra pressure on BP.
Numbers that Speak Volumes
- Quarterly profit: £1.75 billion
- Analyst consensus: £2.15 billion
- Same‑period last year: £2.54 billion
CEO Murray Auchincloss on the Road Ahead
“We’ve made significant strides since we laid out our six priorities earlier this year to simplify, focus, and boost value,” says Auchincloss. He adds:
- “In oil and gas, we see the chance to grow over the decade with a focus on value rather than just volume.”
- “The energy transition is a golden opportunity. We’re already carving out strong positions and will keep tightening our investments so they stay competitive.”
- “I’m absolutely certain that the steps we’re taking will raise BP’s value.”
So while the numbers have dipped, BP’s leadership remains optimistic—ready to navigate a tougher market by putting quality over quantity and staying ahead of the energy shift.
