BP profits rise 42% after oil and gas increases

EUROPE’S second-largest oil company BP’s Plc reported profit rose 42% because of higher oil and natural gas prices and said it may spend $2.3 billion to cover pension liabilities.

Second-quarter profit rose to $3.12bn, or 14 cents a share, from $2.2bn, or 10 cents, a year earlier, excluding special items and the amortisation of acquisition costs, BP said Shares fell as much as 1.7% on investor concern the pension costs may limit stock buybacks.

Like bigger rivals Royal/Dutch and Shell Group, BP and chief executive Lord Browne are benefiting from a surge in US natural gas prices and export disruptions from Venezuela, Iraq and Nigeria.