Business News

BP in 2008 profit jump despite sharp 4Q fall (Roundup)

Feb 3, 2009, 11:30 GMT

London - Oil giant British Petroleum (BP) Tuesday reported an annual profit rise of nearly 40 per cent to 25.6 billion dollars despite being hit by the dramatic slide in the price for crude oil in the last quarter of 2008.

For the last three months of 2008, BP's replacement cost profit was 2.58 billion dollars, down 24 per cent from a year earlier and 74 per cent lower than the previous quarter.

Oil prices hit an all-time high of 147 dollars a barrel in July, but have since fallen back sharply to about 40 dollars this week.

Despite the fall in profits at the end of the year, BP's profit rose by 39 per cent for 2008 as a whole.

BP, Europe's second-biggest oil company, said it expected continued low demand for its products as many countries were entering a recession.

'The economic environment remains challenging, with continued slowing of global economies and uncertainty in the global financial markets,' it said.

Last week, BP's rival, Royal Dutch Shell, announced 2008 profits of 31.4 billion dollars, a rise of 14 per cent over 2007.

BP said the fourth quarter was also weak because of a loss of 700 million dollars suffered at its Russian joint venture TNK-BP.

A protracted dispute between BP and the Russian shareholders in the venture was resolved in September when Robert Dudley had to step down as TNK-BP's chief executive.

However, oil analysts in London said that BP's profit figures had remained below forecasts, as challenges continued to exist for the group's Russian business.

'The group's refining business remains under pressure, whilst weather-hit production has been restored at a time of lower oil prices,' said Keith Bowman, equity analyst at Hargreaves Lansdown Stockbrokers.

BP chief executive Tony Hayward said BP was striving to reduce costs, with 3,000 jobs lost in 2008 and cuts expected to exceed 5,000 by the middle of 2009.



COMMENT

blog comments powered by Disqus

Latest Headlines in Business

Older Talkback

Follow Us

Follow M&C on Pinterest

Search

Custom Search

Also Check Out

Justin Bieber buys $6.5m home

Justin Bieber buys $6.5m home
Justin Bieber has splashed out $6.5 million on his very first home, a seven-bedroom mansion in the Californian suburb of Calabasas. ... more

will.i.am splashes out £15k on laptops for talented youngsters

will.i.am splashes out £15k on laptops for talented youngsters
Will.i.am spent £15,000 on computers for members of a youth music project in London after they impressed him with their talent. ... more

Rochelle Wiseman and Una Healy party on hen night

Rochelle Wiseman and Una Healy party on hen night
Rochelle Wiseman and Una Healy celebrated their forthcoming weddings to Marvin Humes and Ben Foden with a joint hen party on Saturday night (26.05.12). ... more

Justin Timberlake celebrates engagement to Jessica Biel

Justin Timberlake celebrates engagement to Jessica Biel
Justin Timberlake and Jessica Biel celebrated their engagement with a star-studded party at Estee Stanley's Californian home on Saturday (26.05.12). ... more

Jennifer Lopez reunites with Marc on stage

Jennifer Lopez reunites with Marc on stage
Jennifer Lopez and estranged husband Marc Anthony reunited on stage over the weekend at their live finale of their TV talent show in Las Vegas. ... more

Charlize Theron wants to go into space

Charlize Theron wants to go into space
Charlize Theron has admitted she would love to go into space - but thinks it would be very expensive ... more

Cheryl Cole: Personal life is 'right'

Cheryl Cole: Personal life is right
Chderyl Cole wants to have lots of children but thinks she is right to wait to start a family. ... more

Peter Andre ready to move on

Peter Andre ready to move on
Peter Andre is finally ready to move on from ex-wife Katie Price and wonders if he has already met the person he is 'supposed' to marry. ... more

Prince William's tribute to role model Queen

Prince Williams tribute to role model Queen
Britain's Prince William has paid tribute to his grandmother Queen Elizabeth for being an 'incredible role model'. ... more

Mariah Carey's sister wants reconciliation

Mariah Careys sister wants reconciliation
Mariah Carey's estranged sister Alison is desperate to mend her rift with the singer and meet the star's twins Moroccan and Monroe for the first time. ... more