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Profits Slip at BP

Third-quarter revenue is up from last year.
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third-quarter revenue rose by nearly $3 billion year over year, but profits declined and the U.K. oil giant said this year's production will be below 2005.

Total revenue for the third quarter climbed to $70.73 billion from $67.96 billion in the year-ago period. Earnings for the quarter fell to $6.23 billion from $6.46 billion last year. However, on a per-share basis, the company earned 31.4 cents a share, up from about 30.5 cents.

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For all of 2006, BP expects that production will average around 3.95 million barrels of oil equivalent a day, down slightly from last year, mainly because of asset divestments and the effect of higher prices on entitlements under production sharing contracts.

This past August, BP temporarily shut down nearly half the production from its Prudhoe Bay oil field in Alaska for pipeline repairs. Output has been largely restored and is now running at about 400,000 barrels a day.

Capital expenditures, excluding acquisitions, will probably be around $16 billion for the year. Divestment proceeds should be roughly $6 billion.

"Our strategy is unchanged. We continue to execute it with discipline and focus," BP Chief Executive John Browne said in a statement.

Shares of BP were up 10 cents to $67.96 in U.S. trading Tuesday.