London, U.K., Oct. 27--BP said its profit rose 25% in the third quarter, boosted by higher crude-oil prices.
BP said its net income rose to $2.87 billion in the latest quarter from $2.29 billion a year earlier, on a current-cost-of-supplies basis that strips out inventory gains and losses and makes the result comparable to net income reported by U.S. companies.
"Crude-oil prices in the third quarter were supported by strong crude demand on the back of high refining margins, the slow recovery in Iraqi exports and lower OPEC-10 production following the quota reductions that became effective in June," BP Chief Executive John Browne said in a statement.
"The future path of oil prices will depend upon the recovery of exports from Iraq and the degree of OPEC's production restraint," Lord Browne said.
"U.S. natural-gas prices softened in the third quarter but remained high by historical standards and above residual fuel oil parity," he said.
"Refining margins have started the fourth quarter below the third-quarter average but remain above historic average levels, particularly in the USA," Lord Browne said. "Retail margins in the third quarter were below the second quarter levels but continued to be relatively strong, especially in western Europe and western U.S. Fourth-quarter margins are expected to soften further and revert to more typical levels," he said.
BP said interest expense for the latest quarter was $213 million, up from $191 million for the prior quarter, partly reflecting the impact of the inclusion of TNK-BP.
Capital expenditure, excluding acquisitions, was $3.3 billion, the company said. Total capital expenditure and acquisitions was $9.2 billion. Disposal proceeds were $900 million, it said.
Net cash outflow was $2,426 million, compared with $523 million; higher cash flow from operating activities was more than offset by lower disposal proceeds, the company said.
Net debt at the end of the quarter was $18.5 billion.
For the first nine months of the year, BP's net income rose 60% to $9.7 billion from $6.08 billion a year earlier, on a current-cost-of-supplies basis.
