On Tuesday, BP increased its share repurchase program by more than a billion dollars, comparing itself to a "cash machine" benefiting from higher oil and gas prices and great third-quarter trading performance.

As restricted gas supplies combined with increasing demand in economies recovering from the pandemic, natural gas and power prices soared around the world.

Natural gas prices are projected to stay high in the coming months of peak winter consumption, according to BP.

Chief Executive Officer Bernard Looney told a major Newswire that the company "is a cash machine at these sorts of (oil and gas) prices, and the business is functioning quite well."Oil: BP announces write downs, lowers Brent price expectations to 2050

The company's definition of net earnings, underlying replacement cost profit, was $3.32 billion in the third quarter, beating analysts' forecasts of $3.06 billion.

This compared to a profit of $2.8 billion in the second quarter and $86 million a year ago, when the pandemic caused energy demand and prices to plummet.

"Very robust trade" helped BP whether substantial changes in gas and liquefied natural gas (LNG) prices during the quarter, boosting the results.

According to a major Newswire, BP's trading arm made at least $500 million in the third quarter.

"It's not just a story about commerce. Our firms have improved their reliability and availability as a result of increased production "Looney said.

Although the headline profit represents a robust business, BP reported a $2.54 billion loss attributable to shareholders as a result of accounting impacts and hedges related to LNG price variations, which are expected to balance out over time.

By 1320 GMT, BP shares had fallen 2.5%, compared to a 1.1% drop in the broader European energy index.

After purchasing $900 million in the third quarter, the business announced that it would buy back another $1.25 billion of its stock by early 2022. If oil prices remain at $60 a barrel or above, BP aims to continue buying back shares at a rate of roughly $1 billion every quarter.

BP's net debt declined to $32 billion in the third quarter, down from $32.7 billion in the second.

As world leaders convene this week in Glasgow, Scotland, for a United Nations conference vital to preventing the most severe effects of climate change, the long-term forecast for fossil fuel use remains dubious.

BP wants to cut carbon emissions in half over the next two decades by doubling renewable power capacity by 2030, cutting oil production by 40%, and devoting more funding to low-carbon developments.

Its current income is completely derived from oil and gas operations.

The corporation said it aims to spend $14 to $16 billion on projects next year, with $9 billion going to oil and gas. BP plans to increase its investment in shale oil and gas in the United States to $1.5 billion in 2022, up from roughly $1 billion this year, according to Chief Financial Officer Murray Auchincloss.

"The firm may talk all it wants about 'Performing while Transforming,' but it needs to show shareholders and the markets that it can transition to renewables without hammering its margins, and the jury is still out on that," Michael Hewson, chief market analyst at CMC Markets UK, wrote in a note.

After an activist fund called for rival Royal Dutch Shell to divide up its business last week, Looney told a major Newswire that the company had not received calls from investors to split into separate low-carbon and oil and gas sectors.