BP Increases Asset Sales Plans After Q3 Profit Beat

BP reported third-quarter underlying replacement cost profits of $2.21 billion, surpassing analyst expectations despite a 3% decline year-on-year and a 6% drop from the previous quarter. The company attributes its results to increased oil and gas production and stronger refining margins, which offset weaker trading results. CEO Murray Auchincloss emphasized an accelerated overhaul plan that includes a thorough review of BP's portfolio to simplify operations, enhanced cost-cutting measures, and increased asset disposals, with divestment proceeds expected to exceed $4 billion in 2025, up from earlier targets. BP has already announced or completed asset sales totaling around $5 billion this year, including stakes in US shale assets and wind business units, as it pivots back towards oil and gas extraction while scaling back green energy investments. The company also confirmed a $750 million share buyback program and is under pressure from activist investor Elliott Management, which holds a 5% stake and advocates for boosting returns and cutting costs. BP aims to reduce its net debt from around $26 billion to between $14 billion and $18 billion by 2027, while streamlining the business and improving efficiencies to enhance shareholder value.