BP raises dividend by 12.5% but profits fall
Replacement cost profit, which strips out the effect of oil price movements, declined sharply in Q3 to $4.69bn (£3bn), down from $5.27bn for the same period in 2011.
However, net income rose to $5.4bn from $5bn in the third quarter of 2011.
BP also announced it would raise its quarterly dividend to 9c per share – an increase of 12.5% – which is expected to be paid in the fourth quarter.
Bob Dudley, chief executive of the group, said: “BP’s performance and the strong progress we are making in transforming the company give us the confidence to increase distributions to our shareholders.
“We are on track with our strategy to 2014 and are laying the right foundations for sustainable growth during the coming decade.”
It has been a volatile year for investors in BP. The income giant has lost ground amid a flat stock market, off around 7% over the last 12 months.
In the second quarter it announced a replacement cost profit of $238m (£151m), compared with a profit of $5.4bn a year earlier.
Shares plunged alongside equity markets during the brutal summer sell-off, hitting a low of 393p, but have since rebounded.
Last week it was once again back in the spotlight as it announced it had agreed a deal to sell its stake in joint venture TNK-BP to Russian rival Rosneft, in exchange for $17.1bn in cash and shares in the state-owned oil major.
Ahead of its results, BP fell 1.5% yesterday, to close at 425.1p.
Overall it remains well below highs seen before the catastrophic Gulf of Mexico disaster.
Prior to the disaster in 2010 the stock had traded well above 600p, and it has shown little sign of returning to such levels, with 500p the high point for the company’s shares since the disaster.