(MRC) - BP Plc kicked off the results season for top global oil firms on Tuesday with forecast-beating profits and a dose of what the industry's investors want - a dividend hike, plans for asset sales, and a promise to keep a lid on spending, said Reuters.
The world No. 5 among investor-controlled oil and gas groups worldwide scaled back its guidance on capital spending next year to USD24-25 billion compared with previous guidance of USD24-27 billion for the years up to 2020.
BP also raised its quarterly dividend by 5.6% to 9.5 cents a share and said it would sell USD10 billion (6.2 billion pounds) of assets over the next two years, returning most of the proceeds to shareholders - a higher rate of disposals than previously promised under a programme aimed at jettisoning USD2 to USD3 billion dollars worth of assets per year until 2020.
BP's underlying replacement cost net profit for the third quarter of 2013 was USD3.692 billion compared with a company-supplied consensus analyst forecast of USD3.170 billion.
The figure was sharply lower than the USD5.017 billion a year earlier - mainly because of much weaker refining margins, divestment of refineries and reduced income from its Russian business, but it was more than the second quarter's USD2.712 billion when a big Russian tax charge hit the bottom line.
BP has already sold USD38 billion of assets - mainly to pay for the 2010 Gulf of Mexico oil spill of 2010 - but asset sales have become a theme throughout the sector as it struggles with rising costs and eyes potentially lower oil prices in future.
Most of the top oil companies have been making noises this year about "active portfolio management" and "value over volume". BP recently won a small victory in its sea of legal defeats over the oil spill and to reflect that, it derecognised about USD400 million of provisions within the USD20 billion fund it has set aside for certain types of compensation.
BP is one of the world's leading international oil and gas companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items.
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