BP records profit of over £400 a second

Oil giant BP has reported another set of record profits as booming oil prices boost its coffers.

Oil giant BP has reported another set of record profits as booming oil prices boost its coffers.

Profits for the first six months of the year came in at £6.94 billion - up by almost a third on the same time last year. The figure works out at well over £400 a second.

BP, the world's second-largest oil company in terms of market capitalisation, has seen the price of crude oil gush higher in recent times - at one point to well over $60 a barrel.

Shareholders and pension funds are also benefiting from the huge influx of cash.

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BP is returning billions to investors and pensioners through higher dividends and share buy-backs. It said buy-backs will total some £3.4 billion in its second half.

Capital investment for the whole of 2005 will come in at around £8.3 billion - £300 million more than last year. BP expects to spend almost £8.6 billion in 2006.

The profit figure for the second quarter was £3.33 billion, which was above even the most optimistic forecasts by City analysts, who had thought it would be £100 million lower. That was compared to £2.33 billion only a year before.