Partly Cloudy

Partly Cloudy

max temp: 15°C

min temp: 9°C

ESTD 1874 Search

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


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.”

Search hundreds of local jobs at Jobs24


Santander UK has reported a rise in profit.

Santander UK has reported a rise in profit, but again warned that earnings could take a hit as a result of Brexit.

Mobile phone giant Vodafone has been slapped with a £4.6 million fine by Britain's telecom watchdog for breaching consumer protection rules.

Vodafone has been slapped with a £4.6m fine by Britain’s telecom watchdog for breaching consumer protection rules.

Emma Kelly, Lisa Thomasson, Robert Rennie, Eddie Cheung, Ben Ward and David Wright were six of 1500 people taking on the coldest rivers, muddiest bogs and more than 20 obstacles.

A team of six IPRS Group employees from head office in Ipswich are celebrating their achievements after putting their fitness and teamwork to the test in the 2016 Whole Hog Race Suffolk.

Several jobs are up for grabs at an Ipswich-based law company.

Undated handout photo issued by John Lewis of Paula Nickolds who has been appointed as their new managing director, becoming the first woman in the role in the department store chain's 152-year history. PRESS ASSOCIATION Photo. Issue date: Tuesday October 25, 2016. Ms Nickolds has been promoted from her current role as commercial director and replaces long-serving boss Andy Street, who stepped down after joining the West Midlands mayoral race on a Conservative Party ticket. See PA story CITY JohnLewis. Photo credit should read: Greg Funnell/PA Wire

NOTE TO EDITORS: This handout photo may only be used in for editorial reporting purposes for the contemporaneous illustration of events, things or the people in the image or facts mentioned in the caption. Reuse of the picture may require further permission from the copyright holder.

Paula Nickolds has been appointed managing director of John Lewis, becoming the first woman in the role in the department store chain’s 152-year history.


Show Job Lists

Most read

Most commented

Topic pages


Newsletter Sign Up

Sign up to the following newsletters:

MyDate24 MyPhotos24