Expectations for these third quarter numbers from BP (BP.) would already have been elevated thanks to the direction oil prices have taken for most of 2018.

So, for BP to beat those expectations is a particularly impressive feat. Replacement cost profit, an industry standard measure of income, comes in at $3.8bn, up from $1.86bn for the same period a year ago, and against consensus forecasts for $2.85bn. The shares are marked 4.1% higher to 557p.

All areas of the business contributed, with the company getting more money for the crude oil it produces and seeing improved performance from its refining and marketing arms. Its stake in Rosneft performed well supported by a currency tailwind.

The company is also suffering less downtime and its efficient operations are driving strong cash generation with quarterly operating cash flow of $6.6bn.

As a result, BP now expects to be able to fully complete its $10.5bn acquisition of US shale asset from BHP Billiton (BLT) without resorting to a rights issue. The dividend has also been increased 2.5% to 10.25 cents per share.

ANALYST COMMENT

Berenberg analyst Henry Tarr reiterates his ‘buy’ recommendation and 665p price target. He says: ‘The broad-based strength of these results is likely to be taken positively, and we expect it to drive meaningful upgrades to 2018 consensus estimates.'

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