• BP says quarterly profit sinks on lower oil prices

    BP’s profits slumped by 35 percent in the second quarter on the back of sliding crude oil prices, the British energy major said on Tuesday.

    Profits after taxation tanked to $1.8 billion (1.6 billion euros) in the three months to the end of June from $2.8 billion a year earlier, BP said in a results statement, adding that this partly “reflects lower oil prices”.

    Weaker crude prices translate into falling profits and revenues for the energy sector.

    The energy major also took a $634-million impairment charge on the back of asset sales in Egypt and the United States.

    BP added however that its underlying replacement cost profit — a widely-watched measure which strips out exceptional items and changes in the value of oil inventories — was broadly unchanged at $2.8 billion.

    That beat the average analyst forecast of $2.48 billion, according to Bloomberg.

    BP noted that this reflected the company’s “continued good operating performance” thanks to its growth strategy that was launched in 2016.

    “At the midpoint of our five-year plan, BP is right on target,” said BP Chief Executive Bob Dudley in Tuesday’s earnings release.

    “Reliable performance and disciplined growth across our businesses are delivering strong earnings, cash flow and returns to shareholders.

    “And this is also allowing us to grow businesses that can make a significant contribution in the energy transition, helping deliver the energy the world needs with lower carbon.”

    Revenues dipped four percent to $73.747 billion in the second quarter, but production rose four percent to 3.8 million barrels of oil equivalent per day.

    Output remains boosted by last year’s vast purchase of US shale oil and gas operations from mining titan BHP.

    Benchmark Brent crude oil prices averaged $62.63 per barrel in the reporting period. That was down from $67.24 a year earlier.

    BP added Tuesday that it paid another $1.4 billion for scheduled costs arising from the 2010 Gulf of Mexico oil spill catastrophe.

    The London-listed energy major’s total bill so far for the Gulf of Mexico disaster stands at about $70 billion.

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