BP heading for record profits
Oil giant BP was on course today to set a new benchmark for annual profits by a British company despite disruption caused by the hurricane season in the US.
BP reported profits of $14.88bn (€12.5bn) for the nine months to September 30 – up 25% on a year earlier – and close to its annual surplus of $15.4bn (€12.8bn) in 2004.
The performance was achieved on the back of oil prices rising to a record high above $70 a barrel, higher gas prices and better refining margins.
BP’s results would have been better had it not lost profits after hurricanes Katrina and Rita shut down rigs in the Gulf of Mexico and left many in need of repairs.
Production for the quarter was 2% lower than a year ago because of storm damage in the Gulf and more platforms being shut down in the North Sea for maintenance than expected.
BP disclosed that the cost of repairing its Thunder Horse platform in the Gulf totalled $107m (€89.5m) in the quarter and production was unlikely to restart before the second half of next year.
Chief executive Lord Browne said: “The recent hurricanes in the United States have impacted our results.
“However, underlying performance is strong, amplified by high but volatile prices of oil, gas and products.”
