BP’s best profits in 3 years

BP has reported its best results for three years after notching up a 71pc rise in profits as oil prices surged.

Profits jumped to £1.9bn for the first three months of 2018, up from £1.1bn a year earlier.

BP said its upstream operations – which cover exploration and production – were the best since the third quarter of 2014 and production rose 6pc.

But the group continued to count the cost of its 2010 Deepwater Horizon tragedy in the Gulf of Mexico, with another £1.2bn forked out in the first quarter. This included £873m for the final payment of its 2012 settlement with the US Department of Justice.

Bob Dudley, chief executive, said: ‘Our safe and reliable operations and strong financial delivery have continued into 2018.’

The sector has been buoyed by rising oil prices, which hit $75 a barrel on Monday.

Rival oil major Royal Dutch Shell last week reported a 42pc rise in quarterly profits to £3.8bn. BP’s figures come after it last week named energy industry veteran Helge Lund as its next chairman, succeeding CarlHenric Svanberg.

Lund, who has previously headed BG Group and was a long- standing chief executive at Statoil, will join BP’s board as chairman- designate and a non- executive director on September 1, before taking on the role of chairman on January 1 next year.

Russ Mould, investment director at AJ Bell, said: ‘BP beating expectations on trading is particularly impressive.’

Shares rose 1.8pc, or 9.7p, to 547.7p.