bp has confirmed it stopped 18 early-stage hydrogen projects as it posted its weakest quarterly profit in almost four years.
The energy major’s underlying profit for July-September was $2.2bn, down from $3.3bn in the third quarter of 2023, while in the first nine months in 2024 it totalled $7.7bn, down from $10.8bn in the corresponding period last year.
CEO Murray Auchincloss said it laid out its priorities earlier this year to make the company “simpler, more focused and higher value”, and insisted it has a “deep belief in the opportunity afforded by the energy transition” despite curtailing investment in hydrogen. Altogether 24 projects have been stopped or paused.
“This allows our team to now focus on delivering the highest value projects,” he said, in a video accompanying the results, adding that this strategy will continue through 2025. “Furthermore we continue to divest assets that won’t compete for capital.”
Hydrocarbons will continue to be “central” to the energy system as the world decarbonises, the CEO added.
Source: bp Q3 results
bp is targeting $200m cost savings in its renewables and hydrogen businesses and will focus on 5-10 hydrogen project costs. It has sold its US onshore wind business and four mature fields in Trinidad, and will continue to work with suppliers “to take out waste” and reduce third party spends. Overall it has identified at least $2bn in sustainable cost reductions by the end of 2026.
Kate Thomson, Chief Financial Officer, said in the gas & low carbon energy segment, underlying profit was $400m higher, largely driven by higher gas realisations, although the gas marketing and trading result was “average”.
This year’s final investment decisions (FIDs) include ADNOC Ruwais LNG (10% stake), and Castellon 25MW green hydrogen project in Spain.
Auchincloss said it was accelerating the digitisation of its refinery operations, working with Palantir and Infosys.
“We are firmly focused on improving the underlying performance of the business, and taking important and pragmatic steps positioning bp to be competitive in the future,” he said.
