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. Last Updated: 07/27/2016

BP Amoco Reaps Restructure Benefits Early

LONDON -- Oil giant BP Amoco PLC on Tuesday unveiled a 13.6 percent increase in underlying second-quarter profits as the benefits of the merger it unveiled a year ago began to take effect ahead of schedule.

"We have almost achieved the projected annual run rate of $2 billion in merger benefits, significantly earlier than previously indicated," chief executive John Browne said in a statement.

The group reported underlying second-quarter profits of $1.226 billion, compared with $1.079 billion in the same period last year. After adjusting for nonrecurring charges of $141 million, profits were $1.367 billion, up 19 percent.

Analysts had estimated replacement-cost profit before exceptional items of between $1.175 billion and $1.28 billion, with a consensus forecast of $1.199 billion.

The group proposed an unchanged second-quarter dividend of 10 cents a share.

Analysts cheered the results and BP Amoco shares, strong in recent months, were 21 pence (34 cents) higher at 1,244 ($20.05) by late Tuesday morning.