Gushing profits allow BP to pay cash for BHP assets

Higher oil prices more than doubled BP's earnings in the third quarter from a year ago, priming the UK energy company to fund its $10.5bn acquisition of miner BHP Billiton's US shale assets all in cash. The results far exceeded expectations and shares in the company rose more than 3 per cent on Tuesday, with BP saying it was able to bring new, higher-margin barrels into production faster and better execute oil and gas projects, driving earnings. The company said it would pay for the whole acquisition in cash should oil prices continue to stay at elevated levels. Like peers such as France's Total and Norway's Equinor, which reported earnings last week, BP has emphasised financial discipline despite oil prices being 40 per cent higher than a year ago. BP announced a dividend of 10.25 cents a share, after raising it for the first time in four years last quarter.

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