BP hikes dividend on strong third quarter profit

BP this morning announced a quarterly dividend hike of 12.5 per cent, on the back of strong third quarter results.

The dividend, which will increase to nine cents a share, will be paid in the fourth quarter.

Third quarter profit came in at $5.2bn (£3.2bn), up from $3.7bn in the previous quarter, which was boosted by strong refining margins in the downstream business.

BP chief executive Bob Dudley said this morning: "BP’s performance and the strong progress we are making in transforming the company give us the confidence to increase distributions to our shareholders.

"We are on track with our strategy to 2014 and are laying the right foundations for sustainable growth during the coming decade."