BP, the world's third biggest oil group, reported third-quarter profits at the lower end of market forecasts today, joining rival Royal Dutch/Shell Group with a set of underwhelming results.
Net profit for BP, which has seen signs of turmoil in its new Russian market, rose 25 per cent from last year to $2.87 billion. The figure was adjusted for special items.
Analysts had forecast profits between $2.7 and $3.2 billion, with an average at $3.05 billion.
Profits were boosted by a surge in oil and natural gas prices from a year ago, following the war on Iraq and supply disruptions elsewhere.
BP shares were down 0.4 per cent at 411 pence in morning trade, as analysts expressed disappointment at the results. The stock has also suffered from negative sentiment following the arrest in Russia of the chief executive of oil group YUKOS on fraud and tax evasion charges.
The arrest shook financial markets in Russia, where BP has made a $7 billion investment that it hopes will spur its output growth.