British oil giant BP announced a further share buyback on Tuesday as it reported an $8.2 billion (£7.1 billion) profit for the third quarter.
The third quarter underlying replacement cost profits—a measure that oil companies often use—were slightly down from the second quarter’s $8.5 billion (£7.4 billion) owing to dropping oil and gas prices, but more than double the amount made in the third quarter last year of $3.3 billion (£2.9 billion).
The profit reported for the first nine months of 2022 is $23 billion (£20 billion), more than double the $9 billion (£8 billion) of the same period in the previous year.
The London-listed company said its net debt has fallen for the 10th successive quarter to reach $22 billion (£19 billion) at the end of the third quarter.
It announced further share buybacks of $2.5 billion (£2.2 billion), because the $3.5 billion (£3 billion) share buyback programme it announced with the second quarter results was completed on Oct. 27.
The company also sought to reassure investors of the company’s future amid the global transition away from oil and gas by updating shareholders on its investments in biogas, electric vehicle charging, and renewable energy.
CEO Bernard Looney said the quarter’s results showed BP is “continuing to perform while transforming.”
The price of oil and gas shot up at the beginning of this year as economies emerged from the COVID-19 restrictions and prices further rocketed after Russia invaded Ukraine.
Prices have fallen in recent months, but remain at elevated levels.
In June the cost of a barrel of Brent crude oil hovered at around $114 (£100) per barrel, but since early July the measure has rarely risen above the $100 (£87) mark.
On Tuesday, a barrel of crude would set a buyer back around $94 dollars (£81).
Unlike its rival Shell, BP confirmed it will pay UK windfall taxes this year.
It told shareholders it will pay out $2.5 billion (£2.2 billion) in taxes for its UK North Sea business in 2022, including $800 million (£695 million) of tax related to the energy profits levy.
Shell confirmed last week that it does not expect to pay out for the tax this year as firms are able to offset potential tax payments through investment.
The temporary tax, which will be levied on higher-than-normal profit until the end of 2025, was introduced to fund an energy bill relief package for households.
Labour has been calling for an extension of the policy.
Following BP’s publication of its third quarter result on Tuesday, shadow climate change secretary Ed Miliband said on Twitter that the company’s profits are “damning evidence of the failure of the Tories to levy a proper windfall tax” and said Sunak “should be hanging his head in shame that he has left billions of windfall profits in the pockets of oil + gas firms during an energy crisis.”
