BP has beaten its profit expectations in the third quarter, despite profits falling by 6% quarter-on-quarter to $2.2bn.

The oil and gas giant reported good earnings and cash generation in Q3, with its operating cash flow totalling $7.8bn in the 13 weeks to 30 September, reflecting underlying earnings across its operating segments.

BP also said that it had made "significant progress" in its upstream production, with plant reliability standing at 96.8%, which supported a 3% increase in its quarter-on-quarter production.

In the year-to-date, BP has started on six major projects, with 12 exploration sites discovered in this period.

Chief executive officer at BP, Murray Auchincloss, said: "We've delivered another quarter of good performance across the business with operations continuing to run well. All six of the major oil and gas projects planned for 2025 are online, including four ahead of schedule.

"We've sanctioned our seventh operated production hub in the Gulf of America and have had further exploration success. We delivered record 3Q underlying earnings in customers and refining captured a better margin environment. Meanwhile, we expect full year divestment proceeds to be higher - underpinned by around $5bn of completed or announced disposal agreements."

Looking ahead, BP expects its Q4 upstream production to be broadly flat, with oil production to be slightly higher than in Q3 and gas and low carbon energy to be lower.

It also expects to see continued growth in its customers businesses, including a full year contribution from BP bioenergy, with its earnings growth expected to be supported by structural cost reduction.

Global energy analyst at Quilter Cheviot, Maurizio Carulli, described BP’s latest results as "strong".

He concluded: "This is the second consecutive quarter that BP results are strong, and it is a marked difference with the now seemingly almost distant past when the company was delivering poor performance quarter after quarter.

"Management, led by Auchinchloss and CFO Kate Thomson, has clearly steadied the ship and started to deliver sound operational performance. We can now confidently declare that the turnaround is underway and is looking successful.

"A refreshed board, now with strong energy experience, plus a new chairman, should add additional impetus to strategic choices going forward. This should also quell some of the activist voices that have been present for BP over the last 12 months."

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