BP raises dividend by 12.5% but profits fall

BP has raised its dividend by 12.5% to 9c a share, but reported a fall in profits in the third quarter.

Replacement cost profit, which strips out the effect of oil price movements, declined sharply in Q3 to $4.69bn (£3bn), down from $5.27bn for the same period in 2011. However, net income rose to $5.4bn from $5bn in the third quarter of 2011. BP also announced it would raise its quarterly dividend to 9c per share - an increase of 12.5% - which is expected to be paid in the fourth quarter. Bob Dudley, chief executive of the group, said: "BP's performance and the strong progress we are making in transforming the company give us the confidence to increase distributions to our shareholde...