Wednesday 2 November 2016

Oil giant BP sees profits nearly halve


Oil giant BP has reported a near 50% fall in third-quarter profits from last year as the sector continues to struggle with low prices.

The company made £933m on an underlying replacement cost basis, compared with £1.8bn a year earlier, reports the BBC.

BP blamed falling oil prices for its fall, saying it was affected by a “weaker price and margin environment”.

Rival oil company Royal Dutch Shell also warned over oil prices, although its profits rose by 18% from last year.

The company reported better-than-expected third-quarter profits of $2.8bn.

BP’s chief financial officer Brian Gilvary said, “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.”



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