BP announces $3.7bn profits for third quarter of 2013



Oil giant BP has revealed a $1m increase in profits for the third quarter of 2013, compared to the second, but a loss compared to the same period last year.

The firm said it made profits of $3.7 billion (£2.3 billion) between July and September, compared to the $2.7 billion (£1.6 billion) between April and June, with $6.3 billion (£3.9 billion) operating cash flow.

The oil giant’s CEO Bob Dudley said, “In 2011 we set a clear target for operating cash flow in 2014 and we are confident in its delivery.

“The strong operational progress we are now seeing across the group, combined with our focus on disciplined investment, also underpins our confidence in growing long-term sustainable free cash flow and being able to increase shareholder distributions. Today’s announcement is a further demonstration of this.”

The company also said it is planning to divest $10 billion (£6.2 billion) in assets before the end of 2015.

According to the Herald Scotland however, BP registered much greater profits in the same period last year – around $5 billion (£3.1 billion).

Earlier this month, BP won an appeal over the suspension of compensation to businesses affected by the 2010 Deepwater Horizon oil spill in the Gulf of Mexico.

The firm argued that many were inappropriately” claiming payments without actually being affected by the spill and there were fears that it could even run out of money.

Under the recent court order, BP obtained a review of some fines and the temporary stop to compensation’s claims.

The oil spill resulted in the death of 11 workers, while 5m barrels’ worth of oil was spilled into the Gulf of Mexico. BP was fined £2.8 billion in criminal charges and according to the firm, the “total cumulative net charge to BP’s accounts related to the Gulf of Mexico oil spill now stands at $42.5 billion”.

Further reading:

BP wins appeal over Deepwater Horizon compensation payouts

BP returns to US courts over Deepwater Horizon spill

BP plans legal action over ‘inappropriate and unjustified’ US contracts ban

BP Gulf compensation fraud hotline hijacked to accuse oil giant of misbehaviour

BP contests Deepwater Horizon payback scheme amid fears it could run out of money


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