BP second quarter profits slump 53pc
Wednesday, 29 July 2009
LONDON, July 28 (AFP): Energy giant BP said on Tuesday its second-quarter net profits slumped 53 per cent to 4.39 billion dollars (2.65 billion pounds) due to falling oil prices and despite higher output.
Stripping out oil inventories held, net profit was also down 53 per cent to 3.14 billion dollars in the three months to the end of June, BP said in a results statement.
That compared with 6.75 billion dollars in the same period of 2008 when oil had struck record highs above 147 dollars per barrel. Prices have since tumbled in the global slowdown but in recent weeks have come of their lows to trade close to 69 dollars.
Daily production climbed four per cent to 4.005 million barrels of oil and gas in the second quarter, due largely to the startup of the 300,000-barrel-per-day Thunder Horse field in the Gulf of Mexico.
Group revenues fell to 56.56 billion dollars in the second quarter from 110.98 billion dollars.
BP said it has already achieved its goal of cutting costs by 2.0 billion dollars in 2009 -- and expected to slash another 1.0 billion dollars before the end of the year.
Chief Executive Tony Hayward said the group was delivering in very tough conditions.
"We are in turbulent times, volatile and uncertain. But we continue to steer a steady course through choppy waters," Hayward said.
"Despite the current climate, we are making good progress in growing our upstream (operations), turning around our downstream and driving cost-efficiency across the group."
Capital spending in the three months to June was 4.8 billion dollars and 9.4 billion dollars for the six month period, and should be less than 20 billion dollars for the full year, according to BP.
Hayward said a recovery in global energy demand would be sluggish.
"The overall picture is of energy demand now stabilising following significant falls in the first half of the year," Hayward said.
Stripping out oil inventories held, net profit was also down 53 per cent to 3.14 billion dollars in the three months to the end of June, BP said in a results statement.
That compared with 6.75 billion dollars in the same period of 2008 when oil had struck record highs above 147 dollars per barrel. Prices have since tumbled in the global slowdown but in recent weeks have come of their lows to trade close to 69 dollars.
Daily production climbed four per cent to 4.005 million barrels of oil and gas in the second quarter, due largely to the startup of the 300,000-barrel-per-day Thunder Horse field in the Gulf of Mexico.
Group revenues fell to 56.56 billion dollars in the second quarter from 110.98 billion dollars.
BP said it has already achieved its goal of cutting costs by 2.0 billion dollars in 2009 -- and expected to slash another 1.0 billion dollars before the end of the year.
Chief Executive Tony Hayward said the group was delivering in very tough conditions.
"We are in turbulent times, volatile and uncertain. But we continue to steer a steady course through choppy waters," Hayward said.
"Despite the current climate, we are making good progress in growing our upstream (operations), turning around our downstream and driving cost-efficiency across the group."
Capital spending in the three months to June was 4.8 billion dollars and 9.4 billion dollars for the six month period, and should be less than 20 billion dollars for the full year, according to BP.
Hayward said a recovery in global energy demand would be sluggish.
"The overall picture is of energy demand now stabilising following significant falls in the first half of the year," Hayward said.