BP has reported bumper third-quarter profits today on the back of high oil prices and stronger-than-expected refining and chemicals margins.
The world's second-biggest oil company said pro forma net profits rose 43 per cent to $3.937 billion, including a $401-million exceptional charge related to environmental clean-up costs and the write-off of a production platform destroyed by fire.
Excluding exceptional items, net profits rose nearly 46 per cent to a record $4.338 billion, which compares with the average forecast of $4.18 billion given in a Reuters poll of 13 analysts.
Profits surged thanks mainly to good results from BP's exploration and production operations, but refining margins were also significantly up on a year ago, despite the higher oil price.
BP said its Russian operations had also performed well, with profits rising despite a tougher tax regime. The company said upstream profits had been buoyed by higher oil and gas output and prices.
However, a drop in higher margin non-Russian production, partly due to damage from Hurricane Ivan in the Gulf of Mexico, did weigh on profits.
BP also announced a 9 per cent increase in the third-quarter dividend payout to 7.1 US cents per share and predicted capital expenditure, excluding acquisitions, of slightly above $14 billion for 2004 and around $14 billion for 2005.