Oil major BP misses estimates for third quarter as profits plummet

LONDON — Oil major BP on Tuesday reported a steep year-on-year fall in profits, missing analyst estimates.

The British energy giant logged underlying replacement cost profit, used as a proxy for net profit, of $3.293 billion in the third quarter. Last year, it reported $8.15 billion over the same period.

Analysts had expected profit to come in at $4.059 billion, according to a collection of estimates by LSEG.

The company flagged a pre-tax $540 million impairment charge related to U.S. offshore wind projects.

It also announced a further $1.5 billion share buyback.

The year-on-year profits of BP and other energy majors plunged in the previous quarter, following weaker fossil fuel prices that have since risen sharply.

BP was rocked in September by the sudden departure of CEO Bernard Looney, who resigned after admitting he had not been “fully transparent” in his disclosures about past relationships with colleagues, before taking the top job.

The role is being filled on an interim basis by CFO Murray Auchincloss.

The company’s U.S. boss, Dave Lawler, announced his resignation shortly after Looney without providing further details.

Leadership challenges have not dented BP’s share price, which gained 15.8% in the quarter ending on Sept. 30 and is up nearly 12% in the year to date, according to LSEG data.