Soaring oil prices raise BP’s Q3 profits 34 percent |
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Tue, 25 Oct 2005 18:05
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BP PLC, one of the world’s largest oil companies reported a 34 percent increase in third quarter profits matching expectations despite some disruption in its production and refining facilities in the wake of hurricane Katrina.
The company said the surge in profits was due to strong refining margins and soaring oil prices. Underlying profit Y-O-Y, excluding one-off items of $921 million was up over 27.5 percent at $5.33 billion (£3bn).
Replacement cost profit, excluding gains or losses from changes in fuel prices had
risen 16 percent at $4.41 billion.
The company said profits would have been higher still had it not been forced to shut down production of 145,000 bpd after being hit by hurricanes Rita and Katrina.
Production at its new Thunder Horse oil platform in the Gulf of Mexico had also been deferred after it was hit by hurricane Dennis which caused it to tilt dangerously. Repairs will cost around $250m. It will commence production in the second half of next year.
Thunder Horse is the world’s largest semi submersible platform built at the cost of $1 billion and expected to produce up to 250,000 bpd at full capacity. Exxon Mobile has a 25 percent stake in this facility.
The company’s refinery in Texas will also remain shut until the yearend.
However, the drop in production due to the hurricanes was more than covered by the record oil prices during the quarter.
The company also announced quarterly dividend of 8.925 cents (5.061p) a share, 7.1 percent more than was paid for the same quarter last year.
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BP records production increase in second quarter 