BP’s quarterly profits fell by 20 per cent to 2.2 billion dollars in the last three months of 2014 due to plunging oil prices, the energy giant said Tuesday.
The fourth quarter fall took BP’s annual profits to 12.1 billion dollars, 10 per cent below the 2013 figure.
It reported a replacement-cost loss of 969 million dollars for the quarter.
“We have entered a challenging phase of low oil prices,” said Bob Dudley, BP’s chief executive.
“Our focus must now be on resetting BP: managing and rebalancing our capital programme and cost base for the new reality of lower prices while always maintaining safe, reliable and efficient operations,” Dudley said.
The company said it plans to reduce spending on oil and gas exploration this year and postpone or curtail “marginal projects.”
Capital expenditure on growth in 2015 was likely to total about 20 billion dollars, down from a previous forecast of up to 25 billion dollars and below the 22.9 billion dollars spent last year.
“BP is now taking action to respond to the likelihood of oil prices remaining low into the medium term and to rebalance its sources and uses of cash accordingly,” it said.
The blow of falling oil prices was partially offset by net income of 470 million dollars from BP’s share in Russian energy firm Rosneft in the fourth quarter.
Investors reacted positively to the quarterly report, with BP shares rising more than 2 per cent in London.
GNA
