We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedFinancial Planning

BP's Q4 profits down to US$3.98bn


Oil giant expects 4 new projects to begin production by end-2013

Article comments

Oil giant BP said its fourth quarter net profit, adjusted for non-operating items, currency and accounting effects, fell to US$3.98 billion (£2.5 billion) from US$4.98 billion recorded over the corresponding quarter last year.

With a legal battle related to the Gulf of Mexico spill being imminent, the company said on Tuesday that the dip in profits was mainly as a result of asset sales to pay for its spill liabilities. BP has sold US$37.8 billion worth of assets since the oil spill and taken a total charge against profits of US$42.2 billion; bulk of which has already been paid out.

In October, BP agreed to sell its 50 percent stake in TNK-BP to the Russian state-owned energy company Rosneft in return for cash and shares. A trial that is due to begin on February 25.

BP’s organic capital expenditure would be US$24-$25 billion in 2013, up from US$23 billion in 2012.

Elsewhere in its update, the company said it expects four new major upstream projects to begin production by the end of 2013. These include the Angola LNG, North Rankin 2 (Australia), Na Kika 3 (Gulf of Mexico), and Chirag Oil project (Azerbaijan).

Furthermore, it expects an additional six projects to come onstream through 2014.

The company also said its downstream business performed well. It added that a major upgrade of the Whiting refinery in Indiana,US is expected to come onstream in the second half of this year.

"We have moved past many milestones in 2012, repositioning BP through divestments and bringing on new projects. This lays a solid foundation for growth into the long term," said BP chief executive Bob Dudley.

Share:

Comments

BP's Q4 profits down to US$3.98bn
Financial Planning

Budget: What business wants

Budget: What business wants

CFOs are keen for the chancellor to avoid any uncertaintymore ..


Co-operative Group posts £2.5bn loss

Annual loss the worst in its 150 year historymore ..

Google sees 19% rise in Q1 revenue

However, company missed analysts' expectation as ad prices slidmore ..

Starbucks to move Europe HQ to UK

Coffee chain says move reflects growing importance of UK marketmore ..

Stay ahead of the curve

CFOs used to low interest rates ignore working capital optimisation at their perilmore ..

Digital streamlining of travel and expense claims [Part II]

Concur shows CFOs how to make life easier when the auditors come knockingmore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
How M&A teams can create value by challenging the CEO

How M&A teams can create value by challenging the CEO

A typical “hold” period of nine to 18 months can generate increased sale value more ..

In Depth
What every company needs to do about big data?

What every company needs to do about big data?

In the first of a three part series, Pat Brans explores just how big 'big data' will get? more ..

Advertisement

* *