Oil and gas producers were making gains on Tuesday afternoon despite declining oil prices, as BP lifted sentiment in the sector with forecast-beating third-quarter results and a hiked quarterly dividend.

In its first quarterly announcement since the recent deal with Rosneft, BP reported a clean net income of $5,170m on an underlying replacement cost (RC) basis, well ahead of Investec's $4,020m estimate.

"BP's performance and the strong progress we are making in transforming the company give us the confidence to increase distributions to our shareholders," said Chief Executive Bob Dudley.

The quarterly dividend has been hiked to nine cents from eight cents in the second quarter. The group's dividend payment used to be a mainstay of UK pension funds before it was suspended in the wake of the Gulf of Mexico oil well disaster, but the group resumed dividend payments at the beginning of last year.

Elsewhere, US-focused Caza Oil & Gas jumped after it confirmed it had reached total vertical depth on its Forehand Ranch well on schedule.

Log and core data confirmed the presence of multiple potential pay zones containing oil and liquids-rich natural gas, the AIM-listed firm said. The company added that a 12-stage frac at its Caza Ridge site went off successfully, and it hoped to provide post frac production results in the coming weeks. Shares rose 7.25% following the announcement.

President Energy gained after saying it had completed farm-in agreements to both its Pirity and Demattei concessions in Paraguay.

Elsewhere in the sector, Ascent Resources, Max Petroleum and Leni Gas & Oil were among the better performers this afternoon.

Crude prices were down today after producers Phillips 66, Hess Corp, NuStar Energy and PBF Energy were forced to lower refinery operations on the east coast of America as a result of Hurricane Sandy. Brent crude futures were down 0.2%, or 0.22 cents, on the day at $109.22 a barrel.

However, analysts Tarry Tchilinguirian, head of commodity markets strategy at BNP Paribas, suggested today that this could be just a temporary slip in prices.

He was cited as saying on Bloomberg that "We do not see much downside risk for oil demand", adding that Sandy is only "mildly bearish" for crude prices.


Top performing sectors so far today
Automobiles & Parts 4,905.26 +2.59%
Oil & Gas Producers 8,089.93 +1.97%
Oil Equipment, Services & Distribution 24,301.47 +1.56%
Personal Goods 18,738.25 +1.54%
Life Insurance 4,736.07 +1.31%

Bottom performing sectors so far today
Industrial Transportation 2,304.81 -1.23%
Gas, Water & Multiutilities 5,259.81 -0.63%
Real Estate Investment Trusts 2,146.72 -0.24%

BC

Related share prices
BP (BP.) share price
President Energy (PPC) share price
Ascent Resources (AST) share price
Max Petroleum (MXP) share price
Leni Gas & Oil (LGO) share price
Caza Oil & Gas Inc. (CDI) (CAZA) share price