BP’s (LSE: BP) stock rose 3% on Tuesday and another 1,73% today, despite reporting its weakest quarterly earnings since the pandemic’s onset. The oil giant’s earnings for Q3 totaled $2.6 billion, significantly below last year’s figure of $8.2 billion for the same period. Analysts had expected better results, but shareholders seemed unfazed by the lackluster performance.
The unexpected bump in BP’s share price stems from increased interest from activist investors. Stakeholders lauded the company’s ongoing commitment to transitioning towards renewable energy. Mark Lacey, portfolio manager at Schroders, stated, “Investors are banking on BP’s shift in focus to sustain long-term growth.”
BP’s CEO, Bernard Looney, acknowledged the disappointing earnings but reinforced the company’s strategic pivot. “We remain steadfast in our efforts to grow in the renewable energy sector,” Looney remarked during Tuesday’s earnings call. BP plans to spend $8 billion on renewable projects by 2025, aligning with global sustainability goals.
Simultaneously, BP’s refining margins took a hit with the dip in oil prices. The company reported a refining marker margin of $13.20 per barrel, down from $32.40 last year. Despite this, BP’s daily oil output remains robust, maintaining levels around 3.3 million barrels per day.
This earnings report comes amid a larger industry trend of oil companies facing pressure to diversify energy portfolios. Rival companies like Shell and ExxonMobil have also announced similar measures to embrace cleaner energy. BP investors appear optimistic about future returns bolstered by renewable investments.
Subscribe to Investomania for more BP news and updates.
