BP slumps into $6.5b loss for 2015 on oil collapse

AFP, LONDON: British energy giant BP on Tuesday posted the company’s biggest loss in at least 20 years, ravaged by tumbling oil prices, and axed another 3,000 jobs.
BP suffered a loss after taxation of $6.48 billion (5.97 billion euros) last year, compared with a net profit of $3.78 billion in 2014, it said in a results statement.
The energy major added it would slash 3,000 positions in its downstream business—including refining, marketing and distribution—by the end of 2017.
Earnings were hit by a $2.6-billion charge in the fourth quarter that was mostly linked to impairments in the upstream division, or exploration and production, as well as restructuring costs. The company took another $12-billion hit for the Gulf of Mexico oil spill, taking its total bill for the tragedy to $55.5 billion.
BP added that underlying replacement-cost profit—which excludes fluctuations in the value of crude oil inventories—more than halved to $5.9 billion last year.
The earnings measure tumbled to just $196 million in the fourth quarter, from $2.2 billion a year earlier.
“The lower underlying result was predominantly driven by the impact of steeply lower oil and gas prices on BP’s upstream segment,” the company said.
In late morning deals, BP’s share price tanked 8.26 per cent to 336.60 pence on the London stock market, which sank 1.72 per cent in a global selloff.
“Sustained low prices have seen BP post their worst annual loss in 20 years as the company looks to cut more jobs in order to cut costs and fight back towards profitability,” noted GKFX analyst James Hughes.
Rival energy major Royal Dutch Shell, which reports its annual earnings on Thursday, saw its ‘A’ share price slide 3.33 per cent to 1,450 pence.
Oil prices have crashed about 75 per cent since mid-2014, hit by the slowing global economy, the strong US dollar—and a chronic supply glut that has been exacerbated by OPEC’s refusal to curb crude output.
The energy sector has meanwhile slashed jobs and investment in response to the oil price collapse.
BP had already announced plans last year to axe 4,000 jobs in its upstream division in a radical restructuring of the company.
The latest job cuts take its total cull to 11,000 positions since the start of 2015.

 

BP slumps into $6.5b loss for 2015 on oil collapse

AFP, LONDON: British energy giant BP on Tuesday posted the companys biggest loss in at least 20 years, ravaged by tumbling oil prices, and axed another 3,000 jobs. BP suffered a loss after taxation of $6.48 billion (5.97 billion euros) last year, compared with a net profit of $3.78 billion in 2014, it said in a results statement. The energy major added it would slash 3,000 positions in its downstream businessincluding refining, marketing and distributionby the end of 2017. Earnings were hit by a $2.6-billion charge in the fourth quarter that was mostly linked to impairments in the upstream division, or exploration and production, as well as restructuring costs. The company took another $12-billion hit for the Gulf of Mexico oil spill, taking its total bill for the tragedy to $55.5 billion. BP added that underlying replacement-cost profitwhich excludes fluctuations in the value of crude oil inventoriesmore than halved to $5.9 billion last year. The earnings measure tumbled to just $196 million in the fourth quarter, from $2.2 billion a year earlier. The lower underlying result was predominantly driven by the impact of steeply lower oil and gas prices on BPs upstream segment, the company said. In late morning deals, BPs share price tanked 8.26 per cent to 336.60 pence on the London stock market, which sank 1.72 per cent in a global selloff. Sustained low prices have seen BP post their worst annual loss in 20 years as the company looks to cut more jobs in order to cut costs and fight back towards profitability, noted GKFX analyst James Hughes. Rival energy major Royal Dutch Shell, which reports its annual earnings on Thursday, saw its A share price slide 3.33 per cent to 1,450 pence. Oil prices have crashed about 75 per cent since mid-2014, hit by the slowing global economy, the strong US dollarand a chronic supply glut that has been exacerbated by OPECs refusal to curb crude output. The energy sector has meanwhile slashed jobs and investment in response to the oil price collapse. BP had already announced plans last year to axe 4,000 jobs in its upstream division in a radical restructuring of the company. The latest job cuts take its total cull to 11,000 positions since the start of 2015.