BP Suffers $2.2 Billion Loss As Oil Slump Continues To Bite

Published at 08:53AM - 02/02/16

BP suffers $2.2 billon loss in the fourth quarter of 2015 as the ongoing slump in global oil prices continues to bite.

The UK based supermajor announced the results Tuesday saying: “Despite strong operational performance and growing cost reductions, the lower underlying result was predominantly driven by the impact of steeply lower oil and gas prices.”

BP Suffers $2.2 Billion Loss

BP took $2.6 billion in non-operating post-tax charges in the fourth quarter, primarily related to impairments of Upstream assets as well as restructuring charges for the Group.

Including these charges and other offsetting effects, BP reported a replacement cost loss for the fourth quarter of 2015 of $2.2 billion.

BP Chief Executive, Bob Dudley, said: “We are continuing to move rapidly to adapt and rebalance BP for the changing environment.”

“We’re making good progress in managing and lowering our costs and capital spending, while maintaining safe and reliable operations,”

“Our plans set out a clear course for BP for the medium term and will allow us to deliver growth in the longer term.”

BP Job Cuts

Last month BP announced cuts of 4,000 from its upstream oil and gas workforce. BP is hoping to complete the cuts during 2016, before looking to decrease the amount of staff it employes in its downstream business.

In the announcement released Tuesday, BP said the size of its downstream reductions will be in the region of 3,000.

Deepwater Horizon

The effects of litigation from the Deepwater Horizon continue to cost BP dear, with its 2015 Q4 accounts stating a charge of $443 in relation to the 2010 Gulf of Mexico spill.

The total cost of the incident to BP currently stands at $55.5 billion, with more costs likely to be incurred.

BP Live Webcast

A live webcast showing a presentation on BP’s results, hosted by chief executive Bob Dudley and chief financial officer will be held Brian Gilvary on Tuesday.

The webcast is due to start at 1400 GMT / 0900 EST with registration made here.