BP has shown a strong recovery in Quarter Three of 2010 with a return to profit after the financial impact of the Deepwater Horizon disaster.
Replacement cost profits for the three months to September were $1.85bn (1.15bn) following a massive $17bn loss in Q2 as a result of the Gulf of Mexico spill.
Although profits are more than $3bn lower than the same period last year, the figures show clear evidence that BP is gradually recovering and, along with its rivals, has benefitted from strong oil prices particularly in its exploration and production division.
However, the British oil giant constinues to see financial impact from the Gulf incident, with a further $7.7bn of charges being levied in Q3, taking the total costs to date to nearly $40bn. More may yet follow and new CEO, Bob Dudley, is continuing the drive consolidation of the business and recover costs with the sale of assets estimated at up to $30bn.
As the financial markets received the news by boosting BP's share price, Dudley stated that the company is determined to move on. “We have made good progress during the quarter," Dudley said. "This strong operating performance shows the determination of everyone at BP to move the company forward and rebuild confidence after the terrible events of the past six months.
Profits also suffered slightly after Russian oil company TNK-BP , a joint venture that makes up more than a quarter of BP's reserves, announced a drop in its Q3 net profits, blaming high transportation costs and poor foreign exchange rates.