In the United Kingdom, BP is reporting its results for the third quarter of 2022, noting a loss of $2.2 billion over that period. However, the company is seeing a profit of $9.3 billion in the second quarter.
Good results
In the UK, however, BP sees an underlying benefit to the replacement cost of $8.2 billion. This indicator is stable compared to the previous quarter, which stood at $8.5 billion. The loss is mainly due to accounting adjustments.
This quarter’s result includes a charge for inventory adjustment items of $8.1 billion. A charge of $2.2 billion is also included for inventory holding losses. This charge includes accounting effects related to further increases in forward gas prices.
However, the company’s debt is decreasing and reaches $22 billion. On the other hand, BP continues to buy back $2.9 billion worth of shares in the third quarter. Finally, the firm also generates $3.5 billion in excess cash flow
Diversification strategy
During the presentation of its results in the United Kingdom, BP is also communicating on the diversification of its investments. First, the firm is accelerating its biogas strategy by acquiring Archaea Energy. BP is finalizing the creation of Azule Energy, a 50/50 joint venture with Eni.
In the convenience and mobility sector, the company announces that it wants to develop the charging of electric vehicles. For this, BP is considering a partnership with Hertz in North America. An agreement has been reached with REWE, the main supermarket chain in Germany, for the installation of fast charging stations.
Finally, in the field of low-carbon energy, BP is acquiring a 40.5% stake in the Australian company AREH. It operates one of the largest renewable energy and hydrogen centers. In addition, two BP-led projects focus on carbon capture, utilization and storage.
