BP PLC Tuesday posted a fall of 5.4% in adjusted profit for the third quarter due to seasonal maintenance in the North Sea and Alaska and the impact of Hurricane Isaac in the Gulf of Mexico.
Despite the lower earnings, BP said it would increase its quarterly dividend by 12.5% to 9 cents a share, payable in the fourth quarter.
"The strong progress we are making in transforming the company gives us the confidence to increase distributions to our shareholders," said BP chief executive Bob Dudley in a statement. "We are on track with our strategy to 2014 and are laying the right foundations for sustainable growth during the coming decade."
BP said that its clean replacement cost profit, a figure that is closely watched by analysts because it strips out changes in the value of inventories and does not include one-off gains or losses, was $5.17 billion, down from $5.46 billion in the same quarter a year ago.
This was 26.5% above expectations of $4.09 billion in a Dow Jones Newswires poll of 11 analysts.
The London-based energy giant posted a net profit for the three months to September 30 of $5.43 billion, up 7.8% from $5.04 billion for the third quarter of 2011.
Total oil and gas production was 2.259 million barrels of oil equivalent a day, a decline of 2.7% on the year from 2.321 million barrels of oil equivalent a day, due to the cumulative effect of asset sales and an extended maintenance program in the Gulf of Mexico.
Total revenues for the third quarter were down 4.7% to $93.12 billion, from $97.73 billion in the same period in 2011.
Diluted earnings per share were 28.39 cents, compared with 26.28 cents the previous year.
BP shares closed down 1.5% Monday at 425.25 pence. The stock still lags its sector peers, more than two years after the Deepwater Horizon disaster, with many investors still wary of buying into the firm until the precise size of billions of dollars in potential fines becomes clearer.