British energy giant BP today reported a 58% jump in net profits during the third quarter of its financial year, but warned that it would miss its target for annual output.
The results were boosted by high crude oil prices and retail margins, combined with significant disposal gains, but were impacted by rising tax charges, BP said.
Net profit, excluding changes to the value of its crude oil inventories, leapt to $6.975 billion in the three months to September 30, 2006, compared with $4.410 billion the same time last year.
Looking ahead, BP's CEO Lord Browne said 'near-term global outlook is for slower but resilient growth'.
'World economic growth has been sustained. US economic growth appears to have slowed compared to the second quarter, but growth in Europe and Asia has been robust,' he said.
Third-quarter net profit, excluding exceptional items, climbed to $5.75 billion from $5.3 billion. That beat analysts' consensus forecast of a range between $4.66-5.06 billion.
Net profit, including changes in the value of inventories, decreased 3.6% over the same period to $6.231 billion. Group revenue climbed 4% to $70.726 billion.
BP said that production fell to 3.816 million barrels of oil equivalent per day (boepd) in the third quarter, down from 3.954 million previously.
BP also forecast that production would average about 3.95 million barrels of oil equivalent per day (boepd) for the year - which was a downgrade from its earlier guidance of 4.1-4.2 million boepd.
The group's key exploration and production business, meanwhile, raised pre-tax profits by 52% to $9.94 billion, including $2.5 billion in one-time gains largely from asset sales.
At the refining and marketing unit, profits fell 20% to $1.5 billion from $1.87 billion previously, owing to weak refining margins and a further $400m provision for compensation claims arising from the Texas City refinery explosion in 2005.
The group added that its Prudhoe Bay oil field in Alaska was now producing about 400,000 boepd. Prudhoe Bay, which accounts for about 8% of total US oil production, was temporarily shut down last August after BP discovered severe pipeline corrosion.
The field is operated by BP on behalf of a consortium that includes also US giants ExxonMobil Corp, Chevron Corp and ConocoPhillips.
After news broke of the pipeline leak, the price of London Brent crude soared to a record high point of $78.64 a barrel on August 7. Oil prices have since slumped beneath $58 on fading supply concerns.
BP said today that the average price of a barrel of Brent crude had been $69.60 in the third quarter, compared with $61.63 the previous year.
BP is embarking on a review of global operations following the Prudhoe Bay incident and other big setbacks in the US. These include a fourth delay to BP's new Thunder Horse platform in the Gulf of Mexico, which is now due to begin operating in mid-2008.
Proceedings also began recently in a lawsuit against the oil giant for an explosion at the Texas refinery in March last year, which left 15 people dead and 170 injured.
