BP profits jump as oil prices smash record highs

LONDON, July 29, 2008 (AFP) – British energy giant BP said on Tuesday that its net profit rallied by 28 percent to 9.47 billion dollars (6.02 billion euros) in the second quarter as oil prices surged to record highs.

BP’s revenue soared by 49 percent to 111 billion dollars in the three months to June 30 compared with a year earlier as gas prices also soared, but production was flat at 3.83 million barrels of oil equivalent per day.

The group added in its earnings statement that it continues to work to resolve its dispute with Russian investors over their joint venture TNK-BP.

“However, currently, it is not possible to predict the ultimate outcome if these matters remain unresolved,” the British group said.

BP was to hold a press conference to talk about its results and TNK-BP at 0930 GMT.

BP, the world’s third biggest energy group, last week said it had recalled all 148 staff sent to Russia to work for TNK-BP amid ongoing Russian attempts to end foreign control of major energy assets.

BP added on Tuesday that net profit, excluding gains from the value of its crude oil inventories, grew six percent to 6.85 billion dollars in the second quarter.

Analysts had expected the figure to re