Partly Cloudy

Partly Cloudy

max temp: 15°C

min temp: 10°C

ESTD 1874 Search

The pigs are coming. Find out more about

Pigs Gone Wild

here.

UK: BP profits down 18% as cost of Gulf of Mexico disaster hits £27bn

09:32 05 February 2013

Oil giant BP today confirmed a fall in profits as it continued to count the cost of the Gulf of Mexico disaster

Oil giant BP today confirmed a fall in profits as it continued to count the cost of the Gulf of Mexico disaster

Archant

PROFITS at energy giant BP fell 18% last year, the group revealed today, as it continued to count the cost of the fatal Gulf of Mexico oil platform explosion in 2010.

Underlying replacement cost profits at the group were 17.6billion US dollars (£11.2bn) in the year to December 31 after BP said the cumulative cost of the incident had reached 42.2bn US dollars (£27bn).

It still needs to settle the bill for civil claims but warned it would only be on “reasonable terms”, with the trial scheduled to start later this month.

Profits in its fourth quarter fell by a less-than-expected 20% to 4bn US dollars (£2.5bn), despite the group being hit with the biggest fine in US history after agreeing a 4.5bn US dollar (£2.9bn) penalty with authorities, which it will pay in instalments over five years.

BP said it was still assessing the impact of the terrorist attack at its joint venture in the In Amenas gas site in Algeria last month, but said it was committed to the country, where it has operated for 60 years and intends to resume production when it is safe.

BP said it had reached its target to raise 38bn US dollars (£24bn) from the sale of assets since the beginning of 2010 a year early. It made 6.8bn US dollars (£4.3bn) from sell-offs in the fourth quarter, excluding its 50% interest in the Russian TNK-BP venture to Rosneft.

In November it sold a range of North Sea oil fields to Abu Dhabi National Energy Company, Taqa, in a 1.1bn US dollar (£687million) deal.

But the sell-offs pushed production in its upstream business 7.1% lower and the group said it would also be lower in 2013, although its expects major projects in Angola, Australia, the Gulf of Mexico and Azerbaijan to come on stream.

Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said that while BP had made much progress during the full year, it was still “far from being out of the woods”.

He said: “Despite having disposed of 38 billion US dollars of assets to cover the known costs of the Macondo spill, the spectre of the impending trial casts a long shadow on prospects.”

But Sam Wahab, analyst at Seymour Pierce, said: “Following a difficult period for the company, we are beginning to see a resolution to BP’s various legal issues following Macondo.

“Investors may believe that this places the company in a robust financial position ahead of a significant year of upstream activity.”

0 comments

An artist's impression of what St James’ Business and Logistics Park will look like.

More than 600 jobs could be created if a major £72m business park planned for the outskirts of Ipswich gets the go-ahead.

File photo dated 06/10/11 of a trainee bricklayer. Chancellor of the Exchequer George Osborne delivers his Autumn Statement and Spending Review in the House of Commons today. PRESS ASSOCIATION Photo. Issue date: Wednesday November 25, 2015. See PA BUDGET stories. Photo credit should read: Ian Nicholson/PA Wire

Bricklayers are being paid up to £25 an hour as building firms struggle to recruit skilled workers, a new report has revealed.

Bids for Tata Steels UK business are being finalised.

Bids for Tata Steel’s UK business are being finalised ahead of a crucial week for the crisis-hit industry and the job prospects of thousands of workers.

Paul Evans, who has set up Boosty, an Ipswich-based start-up which aims to give people a faster and more reliable broadband service.

Much of northern Ipswich still receives speeds slower than 10 megabits per second, the speed that Ofcom has now ruled must be the minimum speed for broadband services across the UK, says Paul Evans:

Profits after tax at Ryanair are up 43%.

Ryanair said it plans to cut fares by 7% this year as annual profits at the budget airline soared by almost half.

Most read

Great Days Out

cover

Click here to view
the Great Days Out
supplement

View

Most commented

HOT JOBS

Show Job Lists

Streetlife

Newsletter Sign Up

Great British Life

Great British Life
MyDate24 MyPhotos24