BP sees profits drop

Source: Exec Digital UK

Date :23/10/2007 12:35:20

BP Plc reported a 29 percent drop in third-quarter earnings on Tuesday due to problems at its refining division and lower oil and gas production.

BP, the world's third-largest western oil company, said its profit during the quarter fell to $4.41 billion.

Excluding $346 million in charges as well as the impact of energy price changes on unsold inventory, and BP would have earned $4.21 billion, compared with $5.75 billion in the same quarter last year.

According to BP, analysts on average had expected adjusted earnings of $3.96 billion.

Revenue rose three percent to $72.61 billion.

“Dreadful”

BP is cutting jobs and breaking up a division as part of a shake-up following what new Chief Executive Tony Hayward described as a ``dreadful'' quarter in a widely leaked memo.

Hayward, who took over from John Browne in May, is seeking to revive profit growth.

Refining margins throughout the industry have narrowed, with BP's margins in particular down because of operational woes that limited U.S. production, notably in Texas City, following a blast in 2005 that killed 15 workers, as well at as a facility in Whiting, Ind.

BP said it expected Whiting and Texas City to be working at full capacity in the first half of next year.

October 23 2007

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