BP Q3 profit up as high oil prices offset weak output
BP Q3 profit up as high oil prices offset weak output
LONDON: BP PLC saw earnings rise 27% in the third quarter, in line with expectations, as gains from high oil prices and refining margins far outweighed the production and earnings hit from hurricanes Rita and Katrina.
Third quarter net profit, after adding back one-off charges, rose to US$5.33bil from US$4.185bil last time.
One-off charges increased to US$921mil from US$394mil last time, mainly reflecting the US$724mil loss from the sale of Innovene and the impact of the hurricanes that cut the group's output by 2% to 3.824 million barrels of oil equivalent per day.
“The recent hurricanes in the US have impacted our results. However, underlying performance is strong, amplified by high but volatile prices of oil, gas and products,” said chief executive Lord Browne.
Browne remains upbeat on the future, with oil prices likely to remain “well supported” into the winter despite the recent weakness brought about by signs of easing US demand.
BP estimated that capital spending for 2005 should reach US$14bil, slightly below its upgraded budget of US$14.5bil.
For next year, it reaffirmed the planned spending of US$15bil.
BP raised quarterly dividends by 26% to 8.925 US cents per share from 7.1 US cents previously. –AFX-Asia
LONDON: BP PLC saw earnings rise 27% in the third quarter, in line with expectations, as gains from high oil prices and refining margins far outweighed the production and earnings hit from hurricanes Rita and Katrina.
Third quarter net profit, after adding back one-off charges, rose to US$5.33bil from US$4.185bil last time.
One-off charges increased to US$921mil from US$394mil last time, mainly reflecting the US$724mil loss from the sale of Innovene and the impact of the hurricanes that cut the group's output by 2% to 3.824 million barrels of oil equivalent per day.
“The recent hurricanes in the US have impacted our results. However, underlying performance is strong, amplified by high but volatile prices of oil, gas and products,” said chief executive Lord Browne.
Browne remains upbeat on the future, with oil prices likely to remain “well supported” into the winter despite the recent weakness brought about by signs of easing US demand.
BP estimated that capital spending for 2005 should reach US$14bil, slightly below its upgraded budget of US$14.5bil.
For next year, it reaffirmed the planned spending of US$15bil.
BP raised quarterly dividends by 26% to 8.925 US cents per share from 7.1 US cents previously. –AFX-Asia
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