BP Stock: Profit Dip Expected Amid Refining Challenges

BP, the oil and gas giant, anticipates a significant profit decrease in the third quarter of 2024, ranging from $400 to $600 million. This downturn is primarily attributed to reduced refining margins and weak performance in oil trading. Despite maintaining stable production across its oil, gas, and renewable energy sectors, the company faces headwinds that are likely to impact its quarterly results. Additionally, BP expects an increase in net debt by the end of Q3, influenced by the weaker refining margins and a delay in divestment proceeds of approximately $1 billion, which have been pushed to the fourth quarter.

Share Buyback Program Continues

In spite of these challenges, BP demonstrates confidence in its long-term strategy by continuing its share buyback program. On October 11, 2024, the company acquired 7,357,056 of its own shares at an average price of about 410 pence per share. This move underscores BP's commitment to shareholder value, even as its stock experienced a slight decline in London trading, settling at around £4.09. Investors are closely monitoring the situation, with analysts projecting an average target price of £5.43, signaling potential upside despite current market pressures.