BP Profits Soar Despite Green Investment Losses

BP has reported its highest profits in 18 years, with underlying earnings quadrupling to $8.5bn for the third quarter of 2026. This substantial financial gain was primarily fueled by a sharp increase in oil prices, influenced by ongoing conflicts in Iran and Ukraine. Despite the record profits, BP faced a significant setback, recording a $4bn impairment charge related to its investments in renewable and low-carbon energy initiatives, including its solar subsidiary. Refining profits were a major contributor to the earnings jump, with margins nearly tripling year-on-year. CEO Meg O'Neill highlighted that BP's refineries operated at near-capacity to meet demand amid disrupted global fuel flows. The company is actively reshaping its strategy, refocusing on oil and gas production and sales, and is proceeding with the sale of its North Sea operations. This divestment is partly attributed to the UK's high corporate tax rates on oil and gas profits. BP is also selling its US renewable natural gas company, Archaea Energy. Meanwhile, other major oil companies like ExxonMobil and Chevron also reported strong third-quarter earnings, driven by increased refinery output and higher commodity prices.