BP gives investors a good surprise

BP joined its Big Oil peers by giving investors a positive surprise, exceeding profit estimates and earning better returns than its closest European rival.

New projects delivered an increase in oil and gas output, while the company worked its existing fields and refineries more efficiently. That helped offset the effect of a slump in crude prices in the fourth quarter.

The better-than-expected earnings should give shareholders some comfort after BP took on more debt to pay for a swath of US shale assets, its biggest deal in 20 years.

The company’s facilities were still able to churn out cash even as the oil market turned south towards the end of 2018. While higher leverage gives BP less flexibility than its peers should the commodities cycle worsen again, so far prices have rebounded swiftly this year.

Its willingness to spend money delivered six major new projects in 2018, increasing oil and gas output 2.4% to 3.683million barrels of oil equivalent a day.

2.4% the increase in oil and gas output at BP in 2018, helped by six major new projects