The Zhitong Finance App learned that, benefiting from the sharp rise in refining profit margins, British Petroleum (BP.US) quarterly profit jumped to the highest level in 18 years, which provided strong support for CEO Meg O'Neill to reform the British energy giant. British Petroleum said in a statement on Friday that adjusted net profit for the third quarter was 8.46 billion US dollars, up from 2.21 billion US dollars in the same period last year, and far exceeded the market's previous forecast of 7.3 billion US dollars. More than half of profits come from divisions that include refining and trading businesses. The company's net debt fell sharply.
The refining business contributed more than half of profits, and net debt fell more than expected
This is O'Neill's second full quarter in charge of British Petroleum. As the CEO of British Petroleum's first external airlift, O'Neill prioritizes operational performance. Currently, she is cutting costs, selling assets, repaying debts, and is preparing to announce the company's long-term strategy in December.
The company said that both the oil and gas trading business performed strongly. The refining profit margin indicator for the quarter soared to $46.70 from $29.60 per barrel in the previous quarter.
The customer and products division, which includes oil trading and refining operations, achieved a profit of $4.8 billion for the quarter, while the division's profit for the full year of 2025 was $5.3 billion.
Net debt fell sharply from US$22.3 billion three months ago to US$13.87 billion, exceeding the target by one year ahead of the company's original plan.
The refining business became a “banknote printer,” but BP chose to prioritize balance sheet repair
At the time of the release of this round of results, European oil giants are benefiting from the rich cash flow brought about by the refining boom. The war involving Iran and Russia disrupted refineries and trade routes, curtailed the world's ability to convert crude oil into diesel, gasoline, and aviation fuel, and allowed refineries that are still in operation to make excessive profits.
Competitors have announced large-scale shareholder returns: Shell announced on Thursday that it would increase the quarterly share buyback scale from $3 billion to $5 billion; Total promised to repurchase up to $2.5 billion this quarter; and Repsol and Eni have also increased the scale of repurchases.
In contrast, BP suspended share buybacks earlier this year to prioritize debt repayment and balance sheet improvements. In this financial report, BP did not announce a new buyback plan.
O'Neill said, “This has really been a brilliant quarter for the refining business. Our refineries operated by BP have very strong profit margins and strong overall performance, and we have successfully grasped the opportunities brought by the market.”
O'Neill is currently working to cut costs, sell assets, and reduce debt, and plans to announce a long-term strategy in December. The market is concerned about whether the new CEO can fix his balance sheet while finding a new growth path for British Petroleum.