Global oil firm BP has announced a large rise in their quarter profits, with senior spokespeople calling the rise a “turning point” for its oil and gas operations.
The firm reported $5.14 billion (£3.2 billion) in profits, which is almost triple the profits made in the same period a year ago ($1.85 billion).
Selling off assets
Because of this incredible leap in profits, chief executive Bob Dudley said that BP’s operations and production were “regaining momentum” and had much more confidence.
Still, last year’s profits as well as BP’s reputation were hit by the devastating oil spill in the Gulf of Mexico.
In an effort to pay for the ongoing clean up operations and compensate victims, BP is stepping up its asset selling programme from $30 billion to $45 billion.
The firm has decided to sell all non-core assets to contribute towards the clean up.
Higher oil prices largely spurred on BP’s incredible profit margins this quarter. Brent crude is currently trading at $110 a barrel, as opposed to $84 a barrel in October of last year.
This kind of price increase helped offset the firm’s lower production levels while still tripling profits.
Due to the suspension of Gulf oil production, oil production in the third quarter of last year fell by 12%.
It looks as though BP will be re-entering the Gulf soon, however, as last week BP got approval to resume its drilling operations in the Gulf of Mexico.
The decision to let them resume Gulf operations happened 18 months after the Deepwater Horizon oil spill.
BP’s chief executive, Bob Dudley, says that BP has responded well to all of the “unprecedented” challenges it has faced in the past year, and has laid “firm foundations” for the future.
In response to the good news from the oil giants, shares in BP rose 4.5% during Tuesday’s morning trading.