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BP floats in cash as profits rise due to high oil prices



LONDON-

BP PLC


BP -0.17%

said on Tuesday that earnings in the third quarter more than doubled as strong oil prices put Big Oil at record highs.

London-based BP has found its successor The cost-earnings figure, a figure equal to the net profit of US oil companies, was $ 3.1 billion in the third quarter, compared to $ 1.4 billion US dollars in the same period last year. Underlying earnings rose to $ 3.8 billion, a five-year high, and about one-third higher than analysts expected.

BP shares rose 3% in early London trade.

Exxon Mobile
Corp.

.

Chevron
Corp.

and

Royal Dutch Shell

The PLC will release its results later this week.

Years of cost cutting due to the collapse of the oil price are beginning to pay off for the giants of the industry as the market recovers. However, investors remain skeptical and make solid results that are crucial for companies like BP.

Last week French oil giant

total
SA

and Norway

Equinor
AS

A ̵

1; formerly known as Statoil – announced strong earnings growth in the third quarter and continued to emphasize its commitment to control spending and increase production.

BP repeated this assessment. The company said it remains committed to capital discipline and growing payouts to shareholders. The British oil giant has already delivered popular shareholder programs and raised its dividend in July.

BP said that it is currently generating so much money that the company will pay for its near $ 11, assuming oil prices remain in the current range of billion oil and gas assets of BHP Biliton Ltd. completely in cash on land in the USA. When the deal was announced in July, BP had planned to fund 50% of the purchase through equity.

The company announced that it will complete the transaction on Wednesday. As part of the deal, BP plans to divest $ 5-6 billion worth of divestments, with the proceeds intended to pay off the company's debts.

He is also nearing his goal of recovering production levels from the fatal end of the company eight years ago in the Gulf of Mexico. To pay for the catastrophe that killed 11 people and caused the worst offshore oil spill in US history, BP sold billions of dollars in assets and shrank its output. In addition to taking over BHP's assets, BP also began production of two major new projects this month.

The company announced that payments related to the 2010 disaster year were $ 500 million in the third quarter and are expected to exceed $ 3 billion this year. BP's US $ 20 billion milestone with the US government in 2015 requires the company to make annual payments of approximately $ 1 billion by the end of the next decade.

Write to Sarah Kent at sarah.kent@wsj.com


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