BP clean-up bill spirals to $40bn

BP has reported a £1.1bn in the third quarter – but us still being weughed down by the siralling cost of the Gulf clean-up operation.

The company lifted its estimate of the likely cost of its Gulf of Mexico oil spill by $7.7bn (£4.7bn) to $39.9bn.

BP said third-quarter replacement cost profit - the key industry measure of profitability - fell 63% to $1.8 billion (£1.1bn).

But the underlying results rose 18 per cent on the period last year, stripping out one-offs including the oil spill costs, to $5.53bn (£3.4 billion) – ahead of an average City forecast $4.6bn.