BP's third-quarter underlying replacement cost profit nearly quadrupled year-on-year to $8.5 billion, beating analyst forecasts. Higher refining margins and stronger gas and marketing trading drove the result, and the company used the windfall to cut net debt.
BP reported $8.5 billion in underlying replacement cost profit for the third quarter on Friday, nearly four times the year-earlier figure. The number is used as a proxy for net profit, and it topped the $6.191 billion analysts expected in an LSEG-compiled consensus.
Refining margins and trading lift profit
The result primarily reflects better performance in gas and marketing trading, along with "significantly higher" realized refining margins, BP said. Rival Shell and TotalEnergies said on Thursday their own refining margins hit historically high levels.
The Financial Times described the quarter as a new record for BP, after the Middle East energy shock delivered a windfall. It said BP's previous recent high came in 2022, after Russia's full-scale invasion of Ukraine.
Net debt falls as CEO flags leverage
Operating cash flow reached $28.55 billion over the first nine months, up from $16.89 billion in 2025. Net debt fell to $13.87 billion from $26.05 billion over the same period.
Meg O'Neill, who became chief executive in April, has prioritised cutting debt, the FT reported. BP said it had met its cost-reduction targets and would now focus on paying off its remaining Deepwater Horizon liabilities.
Still, the debt cut has not closed the gap with competitors. According to the FT, O'Neill said: "We continue to be more levered than our peers."
BP will set out a new strategy in December, the FT said.
Sources: CNBC, Financial Times
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