“This quarter’s results reflect us continuing to perform while transforming. We remain focused on helping to solve the energy trilemma – secure, affordable and lower carbon energy. We are providing the oil and gas the world needs today – while at the same time – investing to accelerate the energy transition. Our agreement on Archaea Energy is the most recent step in our strategic transformation of BP,”Bernard Looney, chief executive officer.
Underlying replacement cost profit was $8.2 billion, compared with $8.5 billion for the previous quarter. Compared to the second quarter, the result was impacted by weaker refining margins, an average oil trading result and lower liquids realizations, partly offset by an exceptional gas marketing and trading result and higher gas realizations. Capital expenditure in the quarter was $3.2 billion. BP now expects capital expenditure of around $15.5 billion in 2022, if the acquisition of Archaea Energy completes before year end.
In resilient hydrocarbons BP is accelerating its biogas strategy – part of its bioenergy transition growth engine – agreeing to acquire Archaea Energy a leading US biogas company. bp has also continued to make progress high-grading its portfolio: completing the creation of Azule Energy a 50:50 joint venture combining its Angolan assets with those of Eni; taking the final investment decision on the Cypre project offshore Trinidad; and announcing an agreement to sell its upstream business in Algeria to Eni.
In convenience and mobility bp continued to advance its growth strategy in EV charging and convenience: announcing plans to collaborate with Hertz in North America to install a national network of EV charging solutions for Hertz and its customers powered by BP pulse; and expanding its partnership with leading retailer REWE in Germany, to install fast, reliable, convenient charging for customers while they shop.
In low carbon energy BP continued to progress its renewables and hydrogen strategy. In Australia, BP closed its acquisition of a 40.5% stake in AREH, one of the world’s largest planned renewables and green hydrogen energy hubs. And in the UK, two BP-led projects – H2Teesside and Net Zero Teesside Power –have been shortlisted in Phase 2 of the UK government’s cluster sequencing process for support of carbon capture, use and storage.