BP sell-off boosts shares

Shares in BP jumped today after the FTSE 100 oil major announced plans to sell a further $10 billion (£6.2 billion) of businesses within the next two years and return most of the proceeds to investors.

BP also hiked its dividend to 5.6% to 9.5 cents a share, outweighing a 30% decline in third-quarter profits to $3.2 billion.

This was largely due to a 74% dive in profits from BP’s “downstream” refining and marketing division, which was hit by weak refining margins in the US and production declines resulting from the sale of its Texas City and Carson refineries. Shares added 23.2p to 475.3p.

A BP spokesman warned refining margins would continue to be weak this quarter “due to very high gasoline stocks and new competitor capacity additions as well as seasonal demand”.

BP’s latest assets sale follows the disposal of $38 billion of businesses in the wake of the Gulf of Mexico oil spill in 2010.

The proceeds from these have been used to fund costs relating to the disaster.