BP back in profit despite cost of oil spill
Oil giant BP announced a return to profit today despite a further hit of 7.7 billion US dollars (£4.8 billion) from the Gulf of Mexico disaster.
The embattled firm posted profits of 1.85 billion US dollars (£1.1 billion) in the third quarter of 2010, compared with a loss of 17.1 billion US dollars (£10.6 billion) in the previous three months and profits of 5 billion US dollars (£3,1 billion) for the same period a year earlier.
The additional charge in the third quarter, which follows one of 32.2 billion US dollars (£20 billion) in July, reflected a delay in completing the relief well which finally sealed the Macondo well in September.
With BP benefiting from higher oil prices, its third-quarter profits excluding items relating to the spill rose 18% to 5.5 billion US dollars (£3.4 billion).
This was despite its exploration and production division recording lower production volumes due to the impact of the disaster on its Gulf of Mexico operations and as a result of seasonal changes.
Bob Dudley, the company's new American chief executive, said the results showed that BP was on "track for recovery".
He added: "We have made good progress during the quarter. This strong operating performance shows the determination of everyone at BP to move the company forward and rebuild confidence after the terrible events of the past six months."
The firm has already taken steps to rebuild trust after Mr Dudley unveiled a new safety and operational risk unit, a review of pay focusing on safety-led incentives and a review of third-party contractors.
Mr Dudley, who replaced embattled predecessor Tony Hayward on October 1, was frank in a speech at the CBI last week - saying the disaster "threatened the very existence" of the company.
However, he also sought to put to bed the many rumours surrounding the firm, stressing that it was financially "healthy" and would not, as many have speculated, be quitting the US.
The oil spill charge of 32.2 billion US dollars (£20 billion) in the second quarter included a 20 billion dollar (£12.9 billion) compensation fund and sent BP into the red for the first time in 18 years.
Shares in BP plunged from their year high of 658.2p on April 21 - the day after the explosion which killed 11 workers and triggered the spill - and hit a low of 296p at the end of June. The value recovered to 425.4p last night.
BP reaffirmed the company's intention to review the possible return of dividends with the full-year results early next year.
- 1 UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
- 2 Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
- 3 The enemy within: People who hear voices in their heads are being encouraged to talk back
- 4 Phil Neville backtracks on Tomas Rosicky 'I'd smash him' comments from Match of the Day 2
- 5 SAG Awards: Fake applause track interrupts Reese Witherspoon
Rowan Atkinson to sell £10 million McLaren 'supercar' he crashed into a tree and a lamppost
Paris attacks: Do not call Charlie Hebdo killers 'terrorists', BBC says
Asteroid narrowly scrapes past Earth: how to watch the closest space rock for decades as it flies by
UK weather: Snow to fall in the coming week with sub-zero temperatures to last until early February
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Nigel Farage: NHS might have to be replaced by private health insurance
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
French court convicts three over homophobic tweets, in case hailed as a 'significant victory' by LGBT rights campaigners
Greece elections: Syriza and EU on collision course after election win for left-wing party
George Galloway condemns 'racist, Islamophobic, hypocritical rag' Charlie Hebdo at freedom of speech rally
British Muslim school children suffering a backlash of abuse following Paris attacks
iJobs Money & Business
£30000 - £32000 per annum + benefits : Ashdown Group: A highly successful, int...
£18000 - £20000 per annum: Recruitment Genius: This rapidly expanding business...
£25 - 28k + Bonus: Guru Careers: An In-house / Internal Recruiter is needed to...
Negotiable: Recruitment Genius: A Tax Assistant is required to join a leading ...