Oil giant BP (LON:BP) reported a jump second quarter in profits on Tuesday, boosted by higher production and a recovery in the oil market.

Profit on a an underlying replacement cost basis hit $2.79 billion, up from $684 million a year earlier. Statutory pre-tax profits were up almost 150pc to $10 billion.

First-half underlying replacement cost profit nearly doubled to $4.18 billion from $2.2 billion, after oil and gas production for the quarter rose 1.4 percent to 3.6 million barrels of oil equivalent per day.

Bob Dudley, chief executive, said: “We continue to make steady progress against our strategy and plans, delivering another quarter of strong operational and financial performance.

“Given this momentum and the strength of our financial frame, we are increasing our dividend for the first time in almost four years.

“This reflects not just our commitment to growing distributions to shareholder but our confidence in the future.”

BP shares are currently trading up 1.36 percent at 573.20 (0901GMT).