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Cheap oil claims new casualty as BG Group profits slide: BG Group’s profits slumped by 37% during the third quarter as the former exploration arm of British Gas became the latest casualty of tumbling oil prices. The company, which is in the process of being taken over by Shell, reported a $1.2 billion (£783 million) profit for the period as the oil price - which stood at $115 a barrel last summer - averaged around $50.

Brent oil prices gained last week, swinging between gains and losses, after the US refineries boosted their operations to convert crude into other refined products and raised their utilisation rate in the week ended 23 October. Brent crude oil prices rose 3.3% to $49.56/barrel

Royal Dutch Shell: stained: Royal Dutch Shell has had to scrub two big projects in Alaska and Canada in just the past month alone. Shell’s management got the mop out again in its third-quarter earnings report. Even with a good outcome in Shell’s refining and marketing division, the results missed analysts’ expectations in every area. But the fact that Shell could internally fund its investment and dividend requirements this quarter deserved some attention.

Shell's third quarter results showed a loss of $6.1bn (£4bn) compared with $5.3bn (£3.5bn) profit for the same quarter in 2014. Adjusted profits of $1.77bn were well short of estimates for $2.92bn

British American Tobacco remains a top dividend income stock: British American Tobacco may be suffering from falling revenues, but an ability to increase prices steadily is ensuring that full year profits remain on track. That means the chunky 4.1% dividend income is safe. Sales fell 6.5% in the nine months to the end of September, largely because of currency movements. Adjusting for foreign currency fluctuations, revenue increased 4.2% in the period, well ahead of market expectations for growth of 3.5%. Investors cheered the results and sent the shares almost 3% higher. Brands such as Dunhill, Kent, Rothmans and Lucky Strike increased sales by 10% in the third quarter, an acceleration on the first half, and brought total growth to 7.2% during the nine months to the end of September. BAT has a solid record of raising prices to offset falling sales of cigarettes across the developed world. This is why revenue fell by £2.1 billion over the past two years but pretax profits remained relatively flat. This steady profit performance enables the company to churn out dividend payments. BAT is expected to pay 156p in dividends this year, offering a prospective yield of 4.1%. The payout is expected to rise by 5% a year, which protects shareholders’ income from the effect of inflation. The company has tidied up its structure this year, with £1.7 billion spent buying out the 25% share in its Brazilian subsidiary Souza Cruz that it did not already own. This comes after the £3 billion spent earlier in the year to maintain a 42% stake in Reynolds, in the wake of that company’s mega-merger with Lorillard. BAT has problems. Its Canadian subsidiary was ordered by a court to pay a deposit of £380 million while it appeals against a ruling ordering it to pay £5.5 billion in damages to about one million claimants who say they were never warned about the health risks associated with smoking. However, the price reflects what investors are willing to pay for the steady performance and dividend income, which remains attractive over the long term. British American Tobacco at £38.93 +99.5p. Questor says “Hold”.

BP says thousands of jobs will go as low oil price savages profits: BP has warned of further job cuts as it revealed a 40% dive in third quarter profits and announced plans to slash costs to deal with the prolonged oil price slump. Announcing the profit plunge to $1.8 billion (£1.2 billion), the BP Chief Executive Bob Dudley warned that the crude price was unlikely to exceed $60 a barrel for the next two years. Oil is trading around $47, compared with $90 a year ago and $115 a barrel last summer, as slowing demand from China and a surge in supply from the U.S. has created a glut in supply

Social housing builder Genesis blames rent cut as it slashes affordable homes: One of Britain’s biggest housing associations plans to cut the number of affordable homes it builds each year and double the amount of properties it will sell after George Osborne said he would cut social rents. Neil Hadden, the Chief Executive of Genesis Housing Association, which operates in London and the East of England, said it would cut the number of affordable homes it builds each year and those for social rent to about 100, while it will construct about 500 for shared ownership and 400 for market rent and sale

At 0430GMT today, Brent crude oil one month futures contract is trading 0.43% or $0.21 lower at $48.84 per barrel, amid profit booking. Yesterday, the contract climbed 4.79% or $2.24, to settle at $49.05 per barrel, after the Energy Information Administration reported an increase of 3.4 million barrels in the US crude supplies for the week ended 23 October, which was slightly less than the market expectations of 3.7 million barrels rise

Antofagasta lowered its full-year production guidance, reported falls in copper, gold and molybdenum production and said its cash costs have risen throughout 2015 whilst commodity prices have plummeted

BP highlights importance of North Sea amid crude price plunge: BP has signalled it sees long term potential in the North Sea which will remain a major source of production for years although the company is buckling down for a long period of low oil prices. Chief Executive Bob Dudley said the oil and gas giant is preparing for Brent crude to trade around $60 per barrel for some time, well below the levels seen amid the boom in the industry which ended last year

BP: beyond payouts: The good ship BP has plotted its course using $60 oil as its North Star. At $60, that is, it can generate enough cash to cover its investment needs and pay shareholders the $6bn a year in dividends to which they have become accustomed.

U.S. natural gas crashes to lowest level since 2012: U.S. natural gas prices tumbled to their lowest level in three-and-a-half years on Tuesday as expectations of an unusually warm winter heaped more pain on energy producers already reeling from the collapse in oil prices

Shell takes $2 billion charge on Canada oil sands project: : Royal Dutch Shell is to take a $2 billion writedown after cancelling its Carmon Creek project in the oil sands of western Canada, saying the decision was partly a result of a shortage of pipeline capacity in the region.

At 0430GMT today, Brent crude oil one month futures contract is trading 0.09% or $0.04 lower at $46.77 per barrel, ahead of the Energy Information Administration weekly oil inventory data, scheduled to be released later today. Yesterday, the contract declined 1.54% or $0.73, to settle at $46.81 per barrel, after the American Petroleum Institute reported that the US crude oil inventories climbed 4.1 million barrels for the week ended 23 October

Older homeowners withdrew a record total of £5m from their properties each day as an increasing number of retired people used their main asset as a source of income at a time of dismal savings rates. Equity release lending to homeowners over the age of 55, which allows people to use money drawn on their property without having to make monthly repayments or downsize, jumped by £68.3m to £452.6m in the three months between June and September, compared with the previous quarter

BP has reported a sharp fall in third quarter replacement cost profit to $1.819bn from $3.03bn in 2014 as the company revealed the impact of plunging oil prices over the last year.

U.K. factory output suffers biggest fall for six years amid warnings thousands more jobs could be lost in the steel industry: British factories have suffered their biggest fall in output for six years amid warnings that thousands more jobs could be lost in the steel industry. The CBI said just 18% of manufacturers reported increased production in the three months to October while 23% saw a decrease.

Oil explorer’s African art for sale: Afren, the one-time golden boy of small investors, went bust earlier this year amid debts of $1.7 billion- but not before it amassed an enviable collection of African art. Bonhams, the auction house, is selling some 97 works by mainly Nigerian artists with estimated values of up to £8,000

At 0430GMT today, Brent crude oil one month futures contract is trading 0.5% or $0.24 lower at $47.30 per barrel, ahead of the American Petroleum Institute weekly oil inventory data, scheduled to be released later today. Yesterday, the contract declined 0.94% or $0.45, to settle at $47.54 per barrel, amid concerns surrounding a persistent glut in global supplies and weak demand for the commodity.

ShareCast News) - Shares in Upland Resources rose sharply on Monday, as the oil and gas group made its debut on the London Stock Exchange's Main Market. The group, which is currently awaiting the result of the 14th UK Onshore Oil and Gas Licensing round, in which it has bid along with two other firms for a licence in the East Midlands, raised £1.3m via the issue of 130m shares priced at 1p each. The company's directors believe that the recent climate of lower oil prices has created particularly advantageous conditions for companies such as Upland, which has excellent bid partners and has submitted a strong application for what it considers to be attractive, low risk, low cost plays in a proven hydrocarbon system. In a statement, the company said in addition to its UK onshore bid and North African discussions, it was assessing other potential acreage positions in Western Europe. Upland shares were up 5.92% to 1.26p at 1525 BST on Monday.