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BP CEO Robert Dudley. Image courtesy of BP.

BP’s underlying replacement cost profit for the second quarter of 2014 rose to $3.6 billion, 34 percent higher than the same period in 2013, the company said Tuesday.

BP’s second quarter cost profit increased by $3.2 billion over the first quarter, a 13 percent hike.

Total operating cash flow for the first half of 2014 was $16.1 billion.

In the second quarter, BP’s upstream segment reported $4.7 billion underlying pre-tax replacement cost profit, compared with $4.3 billion a year earlier and $4.4 billion in the first quarter of 2014.

Increasing output from the key regions, primarily the Gulf of Mexico, drove overall underlying production of oil and gas, excluding Russia, up by over 3 percent compared to 2013.

Total upstream production was 2.1 million barrels of oil equivalent a day for the quarter.

The end of the company’s Abu Dhabi concession in January 2014 and divestment impacts led to a 6 percent drop in upstream production during the quarter.

Reported production in the third quarter is expected to be lower due to turnaround and seasonal maintenance activities, BP said.

Downstream refining availability was again maintained above 95 percent for the quarter.

The company also announced a quarterly dividend of 9.75 cents per ordinary share, the same level as the previous quarter but 8.3 percent higher than a year earlier.

“This operational momentum keeps us well on track to meet our 2014 targets and underpins our longer-term commitment to grow distributions to our shareholders,” said BP group chief executive Bob Dudley.