BP profits surge on higher oil prices

BP more than doubled profits in the third quarter after riding the wave of higher oil prices.

The energy giant said underlying replacement cost profit – the market’s preferred measure – rose to $3.8 billion (£2.9bn) over the three-month period, up from $1.86bn (£1.4bn) in the same quarter last year.

It added that oil and gas production during the third quarter averaged 3.6 million barrels of oil per day.

Revenue during the quarter rose to $80.8bn (£63bn), up substantially from $60.8bn (£47.5bn) in the same period last year.

Chief executive Bob Dudley said: “Our focus on safe and reliable operations and delivering our strategy is driving strong earnings and growing cash flow.

“Operations are running well across BP and we’re bringing new, highermargin barrels into production faster through efficient project execution.”

The group, along with other oil firms, has been riding high on the back of rising oil prices this year.

Since January, the price of Brent crude has risen from $66 a barrel to $76 today.

BP also said its deal to acquire the US shale oil and gas assets from BHP Billiton for $10.5bn (£8bn) will complete this week.

BP is still counting the cost of the Deepwater Horizon disaster in 2010.

BP said Gulf of Mexico oil spill payments came in at $500 million in the third quarter.

It said full-year payments linked to the disaster would be around $3bn (£2.34bn).

BP chief executive Bob Dudley.