Bp Earnings Up Despite Margin Pressure

BP said net earnings before exceptional items in the three months to September 30 rose 22 per cent to 650 million from 532 million a year before.

This was towards the top end of analysts forecasts for net earnings of between 600 and 675 million.

In the first nine months of the year net earnings jumped 28 per cent to a record 1.93 billion ($3.19 billion) on a replacement cost basis.

British Petroleum said prductivity gains more than offset a slightly weaker operating environment, with higher oil prices making up for lower profit margins on chemicals.

Crude oil prices rose during the third quarter, helped by strong demand, low stock levels and uncertainty about Iraqi exports.

 

BP said these factors were likely to underpin oil prices, which have risen to their highest levels since the Gulf War, in the near term. It said oil and gas output this year would probably be four per cent above 1995 levels.