BP boosts margins at the pumps
OIL GIANT BP has fattened its margins from petrol retailing, it said, as it reported a 20% decline in underlying third-quarter profits to $3.05bn (£2.09bn).
The company, which with all fuel retailers came under fire last year for alleged profiteering at the height of the petrol crisis, said retail margins had widened because of lower wholesale prices.
Operating profits in the refining and marketing division, which includes petrol retailing, increased from $964m to $1bn in the three months to September. During the crisis, BP said it made virtually no profit from UK retailing.
BP chief executive Lord Browne said: 'Retail margins have benefited recently from falling product prices.' But overall, the fall in crude oil prices hit the company, sending adjusted proforma profits down from $3.8bn to $3.05bn, in line with expectations. Demand had softened since 11 September, especially for aviation fuel, Browne said, while Opec continued to produce beyond its quotas.
The average price BP realised for its output in the quarter was $23.08 a barrel, down 17% on a year earlier. UK petrol margins had widened slightly, a BP spokesman said, but prices had still come down - from 78p a litre at the start of the quarter to 71.5p by the end.