BP's 2018 profit doubles to five-year high as output soars

Credit: Reuters Studio
Published on February 6, 2019 - Duration: 01:21s

BP's 2018 profit doubles to five-year high as output soars

BP joined its competitors in posting a strong 2018 performance, with a doubling of profits driven by strong growth in oil and gas output following a large U.S. shale acquisition.

Francesca Lynagh reports.

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BP's 2018 profit doubles to five-year high as output soars

BP was star of the stock market on Tuesday morning - after doubling its profit in 2018 - surpassing analyst expectations for the year.

An eight percent growth in oil and gas output brought the company to a five-year high of $12.7 billion profit - thanks to the acquisition of a large portfolio of U.S. shale assets.

The results saw a 4.2 percent rise in BP shares on Tuesday morning, set for their best day since September 2016.

And helped push European shares too to a nine-week high - the good news from BP offsetting disappointing results from Apple supplier AMS. Royal Dutch Shell, Exxon Mobil and Chevron all reported stronger-than-forecast earnings last week.

That was also driven by higher production in U.S. shale basins where oil majors have invested billions in recent years.

The strong gains came despite a sharp drop in crude prices at the end of the year.

While BP did better than expected, its debt rose and the pace of its share buyback scheme slowed in the last quarter after it paid the first and largest tranche of the $10.5 billion BHP acquisition.

BP plans to sell $10 billion of assets over the next two years to help pay for the deal.

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