BP hikes dividend as profits rise

Shares in BP soared by more than 4 per cent yesterday after the oil giant unveiled a better-than-expected third-quarter profit and hiked its dividend by 12.5 per cent to $0.09.

BP said a strong performance in its refining operation helped push profits to $5.2bn (£3.2bn) from $3.7bn in the previous three months.

Its chief executive Bob Dudley said: "BP's performance and the strong progress we are making in transforming our company give us confidence to increase distributions to our shareholders."

BP this month offloaded its 50 per cent stake in the troublesome TNK-BP Russian joint venture to Rosneft for $27bn.

Although the third-quarter profits were stronger than in the previous three months they were lower than the $5.5bn reported the year before as the company suffered from reduced production after selling assets to raise cash to pay compensation claims relating to the Gulf of Mexico oil spill.

The shares added 17.85p to 442.85p.