Energy company BP has claimed its earnings have fell a whopping 45% in the second quarter of this year (1st April – EOP 30 June) and substantially lower oil prices hitting the business, which is one of the UK’s largest energy companies in the UK, is looking to be the main cause.
The company also lost a huge amount of money on underlying replacement cost profit, which decreased from $1.3 billion to $720 million, the amount of the same quarter but in 2015. The energy giant also received a pre-tax cost of $5.2 billion in the second quarter of this year for charges from the Deepwater Horizon oil leak in 2010, covered by Energy Jobline here. However, the company expects to end the charges related to the oil spill this month after releasing its final estimated costs of the accident.
BP insists that despite the April 2010 oil spill and the worryingly low oil prices that hit the world in the first half of this year, the company is now looking to grow and convince investors that the world’s sixth-largest oil and gas company (ranked 2012) is worth spending on again.
“The sigh of relief emanating from BP HQ is almost palpable as the Gulf of Mexico spill is finally consigned to the history books,” said Richard Hunter, head of research at Wilson King Investment Management. “This is not to say that the challenges are over, not least of which is an underlying oil price still markedly short of the level which would provide comfort for the company.”
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