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BP share price rallies as group’s profit more than doubles

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Shares in BP (LON:BP) have jumped in London this morning as the blue-chip oil major updated investors on its third-quarter performance, revealing that its profits had more than doubled. The group, which has benefitted from a recovery in the oil price, further raised its dividend.

As of 08:10 BST, BP’s share price had added 3.74 percent to stand at 555.20p. The stock is lending support to the blue-chip FTSE 100 index which is currently 0.17 percent better off at 7,039.02 points.

BP posts Q3 results

BP announced in a statement this morning that its underlying replacement cost profit for the third quarter of the year was $3.8 billion, more than double a year earlier and marking the highest quarterly result in more than five years. The operating cash flow excluding Gulf of Mexico oil spill payments for the quarter was $6.6 billion. The oil spill payments meanwhile came in at $500 million on a post-tax basis. The oil major further announced a dividend of 10.25 cents per share for the quarter, 2.5 percent higher than in the prior-year period.

“Our focus on safe and reliable operations and delivering our strategy is driving strong earnings and growing cash flow,” BP’s chief executive Bob Dudley commented, adding that the group had also made good progress with its acquisition from BHP Billiton (LON:BLT), with the transaction expected to complete tomorrow.

Analysts on group

“BP has set the bar high for the oil majors in general, delivering a blockbuster set of earnings which have comfortably outpaced expectations,” Richard Hunter at Interactive Investor commented, as quoted by Proactive Investors. “The strength of the oil price over the quarter was of course a factor, particularly with BP’s breakeven level pinned somewhere around $50 per barrel.”

As of 09:10 GMT, Tuesday, 30 October, BP plc share price is 555.20p.

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