British oil giant BP reported stronger-than-expected third-quarter profit on Tuesday, as higher crude and gas production helped offset weaker oil trading results.
The company posted an underlying replacement cost profit — a key measure of net income — of $2.21 billion for the July–September period, beating analyst expectations of $2.03 billion, according to LSEG consensus estimates. That compares with $2.3 billion in the same quarter last year and $2.35 billion in the second quarter of 2025.
“We’ve delivered another quarter of good performance across the business with operations continuing to run well,” said BP CEO Murray Auchincloss. “We are looking to accelerate delivery of our plans, including undertaking a thorough review of our portfolio to drive simplification and target further improvements in cost performance and efficiency.”
BP’s net debt stood at $26.05 billion, little changed from the previous quarter but up from $24.27 billion a year earlier.
Other highlights for the quarter included operating cash flow of $7.8 billion, up from $6.3 billion in the prior quarter. The company also said it expects divestment and other proceeds to exceed $4 billion in 2025.
BP announced a $750 million share buyback over the next three months, maintaining its pace of shareholder returns — though at a slightly lower level than earlier in the year.
The results come roughly eight months after BP launched a strategic reset aimed at rebuilding investor confidence. The company has shifted focus toward its core oil and gas operations, scaling back renewable investments after shareholder pressure.
Investors have responded positively to the shift, with BP shares up more than 13% so far this year. The improved sentiment has also been fueled by leadership changes, cost-cutting progress, and new oil discoveries.
In a separate move, BP agreed to sell minority stakes in several U.S. onshore pipeline assets in the Permian and Eagle Ford basins to private equity firm Sixth Street for $1.5 billion. The company is targeting $20 billion in divestments by the end of 2027.
Last week, BP’s rival Shell also reported stronger-than-expected third-quarter results, supported by solid operational performance and higher trading profits.