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BP turns back to profit, 18 months after Gulf oil disaster

10-26-2011 11:10 BJT

BP surged back into profit in the first nine months of the year, it said Tuesday, declaring that it has now reached a "clear turning point" after the devastating Gulf of Mexico oil disaster in April 2010.

The energy major added it will sell another $15 billion of non-core assets by 2013, expanding its divestment program to $45 billion, as it seeks to recover oil spill-related costs and re-invest in high-growth activities.

And the London-listed company, whose reputation was ravaged by the fatal Gulf of Mexico catastrophe, predicted that the company's cashflow would grow by around 50 percent by 2014 –which would mean greater returns for shareholders.

Net profits struck $17.7 billion in the nine months to September, helped by high oil prices, BP said in a results statement. That compared with a loss of $9.3 billion in the same part of 2010 when it was hit by huge oil spill costs.

And BP's replacement cost profit, a keenly-watched measure that strips out gains or losses from inventories and other non-operating items, hit $15.9 billion in the nine-month period.

That also contrasted sharply with a loss of $9.5 billion last time around on the back of the $40 billion charge it took in respect of spill-related costs.

"The company has steadied, turned round and now, this month, with high-margin assets returning on stream, we have reached a clear turning point," said Chief Executive Bob Dudley.

Third quarter production meanwhile fell 12 percent to 3.319 million barrels of oil equivalent per day, due to the suspension of production in the Gulf, though BP expects output to be higher in the current fourth quarter.

"Our operations are regaining momentum and we are facing the future with great confidence," added Dudley.

Editor:Zhang Jianfeng |Source: Global Times

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