BP sees profits drastically plummet as oil prices falter

BP’s rivals are performing better

Oil giant BP has seen its profits drastically fall by 50 per cent in its third quarter as the sector continues to grapple with falling prices.

On an underlying replacement cost basis, the company made $933m (£763m), this is compared to $1.8bn this time last year.

BP has blamed the loss on the fall of oil prices.

Royal Dutch Shell, the company’s rival, also warned of the fall in prices but it saw 18 per cent rise in profits from last year.

BP’s chief financial officer Brian Gilvary told the BBC: “We continue to make good progress in adapting to the challenging price and margin environment.

“We remain on track to rebalance organic cash flows next year at $50 to $55 a barrel, underpinned by continued strong operating reliability and momentum in resetting costs and capital spending.

“At the same time, we are investing in the projects, businesses and options to deliver growth in the years ahead.”

BP has also had to cut investment plans for this year as well. It will only spend $16bn on capital expenditure compared with the last prediction of $17-19bn. Next year’s forecasts look to be between $15bn and $17bn.

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