BP earnings smash forecasts, allowing it to complete its purchase of U.S. shale oil assets in cash, without a rights issue.
Investors are filling up on BP stock after the oil giant more than doubled its profits.
Quarterly earnings surged to a five-year high of 3.8 billion dollars.
The numbers boosted by higher oil prices.
Analysts say cost cutting also paid off.
In a sign of confidence, BP says it now plans to finance a big acquisition with cash.
It's buying U.S. shale oil assets from miner BHP for 10.5 billion dollars.
The deal is the company's largest in 20 years.
Reuters Breakingviews financial editor George Hay:
(SOUNDBITE) (English) REUTERS BREAKINGVIEWS EUROPEAN FINANCIAL EDITOR GEORGE HAY, SAYING:
"The real issue for Bob Dudley, the chief executive of BP, is what to do with all this extra cash. His investors are terrified that he's going to splurge it on something that will end up losing money, because that's what the big oil groups have historically done".
Some reassurance for investors on that score.
The company sticking to existing capital spending plans despite its newfound riches.
Of course it is still haunted by ghosts of the past.
BP paying off more than $65 billion in penalties and clean-up costs over the Gulf of Mexico oil spill in 2010.
But that no longer seems to worry investors.
Shares in the firm up around three percent on Tuesday's (October 30) numbers.
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