BP (NYSE: BP) reported third-quarter profits more than doubled on Tuesday, far outdistancing analyst expectations amid stronger oil prices.
The British oil giant posted first-quarter underlying replacement cost profit, used as a proxy for net profit, of $3.8 billion for the three-month period ending Sept 30. Analysts had been expecting third-quarter net profit to come in at around £3.013 billion.
In the third quarter of 2017, BP reported net profit of $1.865 billion. Its dividend was 10.25 cents a share for the third quarter, 2.5% higher than a year earlier
Earlier this year, BP announced the acquisition of BHP's Billiton's shale assets for $10.5 billion. At the time, the oil firm claimed the purchase would allow it to beef up its U.S. business and increase earnings and cash per share.
The original deal was agreed with BP offering 50% cash and 50% shares for BHP Billiton's shale assets. However, the company announced it would now complete the transaction at the end of the month from available cash without resorting to a rights issue as planned.
Oil and gas production for the first nine months of the year rose to 2.5 million barrels of oil equivalent per day and was well placed to increase further, BP said, thanks in large part to its acquisition of BHP's U.S. shale business.
BP shares began Tuesday up $1.18, or 2.9%, to $42.21, within a 52-week trading range of $36.15 to $47.83.
