After taking it on the nose earlier this year in connection with the oil spill in the Gulf of Mexico, BP has returned to profitability, earning $1.85 billion for the third quarter of this year. BP has revised the cost of the spill to themselves upwards to $39.9 billion, after pressure from the US government forced them to set aside $20 billion in funds to cover compensation to those who lost out on income.
BP’s shares rose 6% on the news, and it also comes on the heels of news indicating that BP and Halliburton knew the concrete they were using in the construction of the well was substandard. Whenever Halliburton’s involved, I’ve come to expect some general screwing of the American public to occur.
So, even months after the explosion that killed 11, the company has roared back to profitability. They may be hurting for cash now, but they’re well equipped to pay the damages and handle compensation.