BP second-quarter profit rises 23%

Oil giant BP reported second-quarter profit at the bottom end of market forecasts today but said it would continue a share buy…

Oil giant BP reported second-quarter profit at the bottom end of market forecasts today but said it would continue a share buy-back programme that has buoyed investor sentiment.

The world's second-biggest oil group, which has outshone scandal-hit rival Royal Dutch/Shell this year, said pro forma net profit for the second quarter rose 23 per cent from a year ago to $3.908 billion.

A range of analyst forecasts had given an average forecast of $4.17 billion.

BP's earnings were boosted by soaring oil prices and rising production at its new Russian venture. BP said it had achieved a record half-year result, though second-quarter profit was below the first-quarter figure of $4.717 billion.

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"This has been another strong performance against the backdrop of a robust trading environment," chief executive Mr John Browne said.

BP said it would increase its quarterly dividend to 7.10 cents from 6.75 cents, and added it would continue the share buy-back plan.

BP shares closed at 489-3/4 pence yesterday. The stock has gained around 13 per cent since the start of 2004.