BP Profits Fall By Half Amid Oil Price Slump!
BP has taken a fresh hit from the slump in oil and gas prices as third-quarter profits fell by half and it set out plans for a further $1bn cut to 2015 spending.
The company, a staple of many UK pension funds, said replacement cost profits dipped to $1.23bn (£804m) from $2.38bn (£1.55bn) in the same period last year.
BP has been hit by the slide in the price of a barrel of Brent crude which has tumbled by more than half from over $100 last summer to less than $50.
Chief executive Bob Dudley is now trying to adjust the company to a future in which prices will remain below $60.
BP has already sharply reduced its plans for capital spending for 2015.
A year ago it aimed to invest up to $26bn (£16.9bn) for 2015 but by earlier this year this figure was down to $20bn (£13bn).
Now this has been cut to around $19bn (£12.4bn) and will be in the range of $17-19bn (£11.1bn-£12.4bn) a year until 2017.
Meanwhile, BP expects to dispose of assets worth $10bn (£6.5bn) this year and up to $5bn (£3.3bn) in 2016.
Mr Dudley said: "BP has successfully adapted to changing circumstances many times in its history and, in a hard time for the entire industry, I believe we will once again successfully take on today's challenges."
Executives were setting out to investors in detail how the company would respond to lower oil prices and providing an update on how major projects will proceed over the next few years.
BP continued to be dogged by the costs of the Deepwater Horizon accident in the Gulf of Mexico in 2010, taking an additional $426m (£278m) charge mainly from businesses who claimed they lost out as a result of the devastating oil spill.
Its total cost so far now stands at $55bn (£35.8bn).