BP chief ‘at turning point’ even though production figures fall

Chief executive Bob Dudley revealed the group was increasing the size of its asset sale programme from £18.8bn to £28.1bn as a part of a programme to boost its financial firepower.

BP posted replacement cost profits of £3.2bn for the three months to September, up from £1.1bn a year ago when the company was hit by heavy charges for cleaning up the Gulf spillage.

BP will also release a detailed strategic plan next February, which will include an update on its dividend policy.

BP accounts for £1 in every £6 invested by pension schemes and an increase in how much it pays out in dividends could mean a boost for pensioners.

Profits fell three per cent quarter-on-quarter and daily oil production dropped by 12 per cent to 3.32 million barrels, due to the suspension of production in the Gulf, though BP expects output to be higher in the current quarter. The company was producing four billion barrels a day before the disaster.

Mr Dudley said production in the last three months was a “low point” for the group but he would not be drawn on whether the increase in planned divestments would hit future production.

BP has already sold sites in the United States, Egypt, Venezuela, Vietnam and Colombia.

BP said it intended to boost the amount of cash it generated by 50 per cent by 2014 through new exploration projects and after it ceases payments to its £12.5bn Gulf of Mexico trust fund a year ahead of schedule at the end of 2012.

Mr Dudley denied the group was building up its cash reserves in case of a possible adverse outcome in next year’s trial over the Gulf disaster. He said the group was preparing “vigorously” for the case.