ConocoPhillips (COP), BP (BP) Q3 profits rise on high energy demand

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ConocoPhillips (COP), BP (BP) Q3 profits rise on high energy demand

 ConocoPhillips (COP), BP (BP) Q3 profits rise on high energy demand
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Highlights

  • ConocoPhillips (NYSE: COP) total production excluding Libya surged over 41% YoY in Q3.

  • The now expects Q4 production to be between 1.53 million boe and 1.57 million boe per day.

  • BP plc (NYSE: BP) announced to buy back an additional US$1.25 billion shares.

Stocks of ConocoPhillips (NYSE: COP) and BP plc (NYSE: BP) gained traction on Tuesday after reporting their quarterly earnings before the bell.

The COP stock was priced at US$74.94, up 0.47%, while BP shares traded at US$28.64, down 2.19%, at around 8:23 am ET from their previous closing price.

Highlights of their quarterly performance.

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ConocoPhillips (NYSE: COP)

ConocoPhillips is a Houston, Texas-based company engaged in hydrocarbon exploration.

On Tuesday, the company reported strong quarterly earnings, topping Wall Street estimates, bolstered by gains due to rising crude prices.

The company's total production, excluding Libya, increased by more than 41% YoY to 1.51 million barrels of oil equivalent (boe) per day in Q3, FY21. Meanwhile, the firm expects its production to be between 1.53 million boe and 1.57 million boe per day in the ongoing quarter.

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The cash provided by operating activities was US$4.8 billion in Q3, FY21. Its adjusted earnings came in at US$2.4 billion, or US$1.77 per share, in the third quarter of fiscal 2021, against a loss of US$0.33 billion, or US$0.31 per share, in Q3, FY20.

According to Refinitiv data, analysts were expecting earnings of US$1.51 per share.

The firm has a market cap of US$99.88 billion, a P/E ratio of 64.3, and a forward P/E one year of 13.74. Its EPS is US$1.16. The 52-week highest and lowest stock prices were US$77.98 and US$28.51, respectively. Its trading volume was 11,944,580 on November 1.

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ConocoPhillips (COP) and BP p.l.c. report strong quarterly profit on soaring crude prices

Source: Pixabay

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BP plc (NYSE: BP)

BP plc is a London-based global energy company. It provides fuel, energy, power, and other petrochemical products to customers.

The company's underlying profit on a replacement cost basis came in at US$3.32 billion in Q3, FY21, compared to US$86 million a year ago. For the same period, it reported a loss attributable to shareholders of US$2.54 billion, compared to a loss of US$450 million in Q3, FY20.

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Meanwhile, due to strong underlying profit, the company has announced a share buyback program.

CEO Bernard Looney said the increasing commodity prices made the company a "cash machine".

The firm has kept its dividend unchanged, but to win back investors, it said it would repurchase an additional US$1.25 billion shares.

The market cap of the company is US$97.45 billion, the P/E ratio is 11.44, and the forward P/E one year is 7.79. Its EPS is US$2.56. The stock saw the highest price of US$30.29 and the lowest price of US$15.52 in the last 52 weeks. Its share volume on November 1 was 10,519,930.

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Bottomline

The stocks saw significant gains this year as energy prices and demand rose globally. The COP stock surged 88.5% YTD, while the BP stock rose 40.57% YTD. Meanwhile, the S&P 500 Energy sector grew 54.86% YTD while increasing 11.93% QTD. However, investors should evaluate the companies carefully before investing in stocks.

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