BP's profits plummet by 95% compared with the third quarter of 2023

British oil giant BP announced on Tuesday a drastic fall in profits in the third quarter of 2024, reaching just $206 million, compared with $4.9 billion a year earlier. This significant drop is attributed to lower refining margins, disappointing sales and asset write-downs, against a backdrop of falling oil prices.

BP had already warned on October 11 of its pessimistic outlook for this quarter, stressing that results would be well below the "very good results" achieved during the same period last year. Lower refining margins were a key factor in the fall in profits, while oil prices came under continued pressure from weakening global demand, particularly in China, the world's largest importer of crude.

BP does not expect much improvement in the fourth quarter. The Group expects refining margins to remain weak and production to be lower than in the previous quarter. Although oil prices were temporarily buoyed by geopolitical tensions in the Middle East towards the end of the third quarter, the longer-term outlook remains worrying. Sluggish demand from China and forecasts of abundant global production in 2025 continue to weigh on the market.

Despite these short-term challenges, BP CEO Murray Auchincloss expressed optimism for the future, saying the company will focus on value over volume in the oil and gas sector. He also reaffirmed BP's commitment to the energy transition, a key element of the company's long-term strategy.

The third quarter also saw BP's debt increase to $24.3 billion, compared with $22.6 billion at the end of the second quarter. This increase is due in particular to the impact of lower refining margins and the deferral to the fourth quarter of a credit of around one billion dollars linked to asset disposals.

The oil sector as a whole appears to be facing similar challenges. Shell, BP's rival, will publish its results on Thursday and has already warned of a fall in its refining margins in the third quarter. The current situation highlights the difficulties faced by the major players in the sector, who have to deal with fluctuating global demand, geopolitical tensions and the challenges of the energy transition.

Against a backdrop of increased volatility, BP, like its competitors, will have to adapt to maintain its profitability while responding to the imperatives of energy sustainability and industrial transformation.