We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
BP Q3 Earnings Beat on Higher Oil Production, Revenues Rise Y/Y
Read MoreHide Full Article
Key Takeaways
BP posted Q3 adjusted earnings of $0.85 per share, topping estimates and up from $0.83 last year.
Revenue grew to $49.3B from $48.3B, driven by higher oil output and stronger refining margins.
Oil production rose to 1,556 Mboe/d, while refining availability improved to 96.6% in the quarter.
BP plc (BP - Free Report) reported third-quarter 2025 adjusted earnings of 85 cents per American Depositary Share on a replacement-cost basis, excluding non-operating items. The figure beat the Zacks Consensus Estimate of 72 cents. The bottom line also improved from the year-ago reported figure of 83 cents.
Total quarterly revenues of $49.3 billion lagged the Zacks Consensus Estimate of $63 billion and increased from $48.3 billion reported a year ago.
The strong quarterly earnings can be primarily attributed to an increase in oil production volumes and higher realized refining margins. However, lower hydrocarbon price realization partially offset the positives.
For the third quarter, BP reported a total production of 1,556 thousand barrels of oil equivalent per day (Mboe/d), up from 1,488 MBoe/d recorded in the year-ago quarter. The metric beat our estimate of 1,441.3 MBoe/d.
BP sold liquids at $59.58 per barrel in the third quarter, down from $70.22 reported a year ago. The company sold natural gas at $3.32 per thousand cubic feet (mcf), up from $2.25 reported in the year-ago quarter. Overall, hydrocarbon price realization decreased year over year to $47.89 per Boe from $53.65.
After adjusting for non-operating items, underlying replacement cost earnings before interest and tax for the segment amounted to $2.3 billion. The figure was below the $2.8 billion recorded in the year-ago quarter. The reported figure met our estimate of $2.3 billion. The segment was affected by lower price realizations and an increased depreciation, depletion and amortization charge. However, this was partially offset by production gains and lower exploration write-offs.
Gas & Low Carbon Energy
Segmental profits totaled $1.52 billion, lower than $1.76 billion registered in the year-ago quarter. The segment’s results were impacted by a decline in production and lower liquids price realization. The figure beat our projection of $1.13 billion.
Total production of 806 MBoe/d declined from 890 MBoe/d in the year-ago quarter.
Customers & Products
After adjusting for non-operating items, underlying replacement cost earnings before interest and tax for the segment were reported at $1,716 million, significantly higher than $381 million in the year-ago quarter. The increase can be primarily attributed to higher realized refining margins. In the customers segment, structural cost reductions supported earnings, while in the products business, lower turnaround activity further supported the results.
BP-operated refining availability in the September-ended quarter was 96.6%, compared to 95.6% in the year-ago quarter.
Total refinery throughputs were 1,516 thousand barrels per day (MBbl/D), higher than 1,440 MBbl/D in the corresponding period of 2024.
Capex
Organic capital expenditure in the reported quarter totaled $3.33 billion. The company registered a total capital spending of $3.4 billion for the quarter.
Financials
BP's net debt was $26.1 billion at the end of the third quarter. Also, the firm announced a gearing of 25.1% for the quarter.
Outlook
BP expects fourth-quarter 2025 upstream production to remain flat compared to the previous quarter’s level. It also anticipates a seasonal decline in volumes in its customers' business and a similar refinery turnaround activity compared to the third quarter.
For 2025, BP forecasts slightly lower overall upstream production versus 2024, with oil output higher and gas & low-carbon output lower. Growth is anticipated in its customer segment, supported by cost reductions. BP expects divestment proceeds of over $4 billion, a slightly higher DD&A compared to 2024 levels and approximately 40% effective tax rate.
Cenovus Energy is a leading integrated energy firm. Starting with pumping out oil from its oil sands projects in Canada, the company’s operations include marketing the produced oil, natural gas and natural gas liquids. Cenovus Energy operates key projects at Christina Lake, Foster Creek and Sunrise, contributing to a robust production outlook in the future.
Canadian Natural Resources is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The company boasts a diversified portfolio of crude oil, natural gas, bitumen and synthetic crude oil. It has delivered 25 consecutive years of dividend increases, one of the longest streaks among global oil producers.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
BP Q3 Earnings Beat on Higher Oil Production, Revenues Rise Y/Y
Key Takeaways
BP plc (BP - Free Report) reported third-quarter 2025 adjusted earnings of 85 cents per American Depositary Share on a replacement-cost basis, excluding non-operating items. The figure beat the Zacks Consensus Estimate of 72 cents. The bottom line also improved from the year-ago reported figure of 83 cents.
Total quarterly revenues of $49.3 billion lagged the Zacks Consensus Estimate of $63 billion and increased from $48.3 billion reported a year ago.
The strong quarterly earnings can be primarily attributed to an increase in oil production volumes and higher realized refining margins. However, lower hydrocarbon price realization partially offset the positives.
BP p.l.c. Price, Consensus and EPS Surprise
BP p.l.c. price-consensus-eps-surprise-chart | BP p.l.c. Quote
Operational Performance
Oil Production & Operations
For the third quarter, BP reported a total production of 1,556 thousand barrels of oil equivalent per day (Mboe/d), up from 1,488 MBoe/d recorded in the year-ago quarter. The metric beat our estimate of 1,441.3 MBoe/d.
BP sold liquids at $59.58 per barrel in the third quarter, down from $70.22 reported a year ago. The company sold natural gas at $3.32 per thousand cubic feet (mcf), up from $2.25 reported in the year-ago quarter. Overall, hydrocarbon price realization decreased year over year to $47.89 per Boe from $53.65.
After adjusting for non-operating items, underlying replacement cost earnings before interest and tax for the segment amounted to $2.3 billion. The figure was below the $2.8 billion recorded in the year-ago quarter. The reported figure met our estimate of $2.3 billion. The segment was affected by lower price realizations and an increased depreciation, depletion and amortization charge. However, this was partially offset by production gains and lower exploration write-offs.
Gas & Low Carbon Energy
Segmental profits totaled $1.52 billion, lower than $1.76 billion registered in the year-ago quarter. The segment’s results were impacted by a decline in production and lower liquids price realization. The figure beat our projection of $1.13 billion.
Total production of 806 MBoe/d declined from 890 MBoe/d in the year-ago quarter.
Customers & Products
After adjusting for non-operating items, underlying replacement cost earnings before interest and tax for the segment were reported at $1,716 million, significantly higher than $381 million in the year-ago quarter. The increase can be primarily attributed to higher realized refining margins. In the customers segment, structural cost reductions supported earnings, while in the products business, lower turnaround activity further supported the results.
BP-operated refining availability in the September-ended quarter was 96.6%, compared to 95.6% in the year-ago quarter.
Total refinery throughputs were 1,516 thousand barrels per day (MBbl/D), higher than 1,440 MBbl/D in the corresponding period of 2024.
Capex
Organic capital expenditure in the reported quarter totaled $3.33 billion. The company registered a total capital spending of $3.4 billion for the quarter.
Financials
BP's net debt was $26.1 billion at the end of the third quarter. Also, the firm announced a gearing of 25.1% for the quarter.
Outlook
BP expects fourth-quarter 2025 upstream production to remain flat compared to the previous quarter’s level. It also anticipates a seasonal decline in volumes in its customers' business and a similar refinery turnaround activity compared to the third quarter.
For 2025, BP forecasts slightly lower overall upstream production versus 2024, with oil output higher and gas & low-carbon output lower. Growth is anticipated in its customer segment, supported by cost reductions. BP expects divestment proceeds of over $4 billion, a slightly higher DD&A compared to 2024 levels and approximately 40% effective tax rate.
BP’s Zacks Rank and Key Picks
BP currently carries a Zacks Rank #3 (Hold).
Some top-ranked stocks from the energy sector are Cenovus Energy (CVE - Free Report) , Canadian Natural Resources Ltd. (CNQ - Free Report) and FuelCell Energy (FCEL - Free Report) . While Cenovus Energy currently sports a Zacks Rank #1 (Strong Buy), Canadian Natural Resources and FuelCell carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cenovus Energy is a leading integrated energy firm. Starting with pumping out oil from its oil sands projects in Canada, the company’s operations include marketing the produced oil, natural gas and natural gas liquids. Cenovus Energy operates key projects at Christina Lake, Foster Creek and Sunrise, contributing to a robust production outlook in the future.
Canadian Natural Resources is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The company boasts a diversified portfolio of crude oil, natural gas, bitumen and synthetic crude oil. It has delivered 25 consecutive years of dividend increases, one of the longest streaks among global oil producers.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.