BP Plc, the world's second largest oil company, beat analysts' expectations to report bumper third quarter earnings on Tuesday on the back of high oil prices and strong refining and chemicals margins.
BP said proforma net profit was $3.937 billion, including a charge for exceptional items of $401 million.
Excluding net exceptional and non-operating items, BP notched up a result of $4.338 billion. This compares with a poll of 13 analysts conducted by Reuters which gave an average forecast of $4.18 billion.
BP said profits had been buoyed by higher oil and gas output and prices, and strong refining and chemicals margins.
BP had already flagged strong production levels in its quarterly trading statement released earlier in the month, with volumes rising 11 percent on the year. However, a drop in higher margin non-Russian production, partly due to damage from Hurricane Ivan in the Gulf of Mexico, did weigh on profits.
BP also announced a third quarter dividend of 7.1 U.S. cents per share and predicted capital expenditure, excluding acquisitions, of slightly above $14 billion for 2004 and around $14 billion for 2005.
The 2005 figure was revised up by around $1 billion to compensate for weaker dollar and higher service costs.