In article by Ron Bousso and Shadia Nasralla of Reuters, the oil company British Petroleum or BP profit increased to a 5 year high as higher oil prices along with strong production. The company reported 3rd quarter of $3.8 billion exceeding the expected $2.85 billion of analysts.
It has been a number of years since the Deepwater Horizon disaster and the cost of the clean up; BP is doing new projects or has a lively step to it.
BP said they will pay for the BHP deal with available cash and not need a rights issue and expects to sell $5 to $6 billion in assets to reduce debt.
BP launched 9 major oil and gas fields including in Azerbaijain, Oman, Egypt and Angola. Much of the production is gas. Higher profits came from new fields and bringing new higher margin barrels into production faster through efficient project execution.
Linking to dividend paying stocks, while BP has never stopped paying dividends the Deepwater Horizon because of the payments needing to be done has been a pull on the company’s revenues. When disaster happens, it takes time and effort to return to what is normal. How the company handles the disaster and when it can see a more optimistic outlook determines if you keep your shares or look for alternatives
There are more questions than answers, till the next time – to raising questions.