Oil and gas giant BP beat third-quarter earnings expectations on Tuesday, fueled by surging energy prices.

The British energy major posted an underlying replacement cost profit, a proxy for net profit, of $3.3 billion for the third quarter, above analyst estimates of $3.1 billion, according to Refinitiv. The figure compares to $2.8 billion of net profit in the previous quarter and $100 million for the same period in 2020.

“Rising commodity prices certainly helped, but I am most pleased that quarter by quarter, we’re doing what we said we would – delivering significant cash to strengthen our finances, grow distributions to shareholders and invest in our strategic transformation,” CEO Bernard Looney said in the company’s earnings report.

However, the company reported a headline loss of $2.5 billion for the third quarter as a result of “significant adverse fair value accounting effects.” These saw the company take a $6.1 billion hit which it attributed to the “exceptional” rise in forward gas prices towards the end of the quarter. 

This is a breaking news story and will be updated shortly.