BP has reported an underlying replacement cost (RC) profit, proxy for net profit, of $2.26bn in the third quarter of 2024 (Q3 2024), a 31.1% drop from $3.29bn during the same period in 2023.

The decrease has been attributed to weaker refining margins, poor oil trading performance and lower liquid realisations, although this was partially offset by higher gas realisations.

The UK-based oil and gas company's total revenues and other income during the three months under review was $48.33bn, down 10.5% from $54.01bn in Q3 2023.

BP's operations maintained upstream production at 2.4 million barrels of oil equivalent per day and a refining availability of 95.6%.

During the quarter, BP’s capital expenditure was $4.54bn, up from $3.60bn.

In the first three quarters of 2024, BP’s underlying RC profit was $7.74bn and during Q2 2024 the energy major reported underlying RC profit of $2.75bn.

BP declared a dividend of $0.08 per ordinary share and announced a $1.75bn share buyback for Q3 2024.

Looking forward, the company expects reported upstream production in Q4 2024 to be lower than in Q3 2024.

In its customer business, BP expects seasonally lower volumes and fuel margins sensitive to supply costs, and in products, refining margins are due to remain low but responsive to changes in product crack spreads.

BP CEO Murray Auchincloss said: “We have made significant progress since we laid out our six priorities earlier this year to make bp simpler, more focused and higher value. In oil and gas, we see the potential to grow through the decade with a focus on value over volume.

“We also have a deep belief in the opportunity afforded by the energy transition – we have established a number of leading positions and will continue high-grading our investments to ensure they compete with the rest of our business.”