BP refining profits double
28 Apr 2015
BP today announced downstream oil & gas pre-tax profits of $2.2 billion (£1.44bn) for the first three months of 2015, more than double the $1 billion (£660m) of profits recorded in the first quarter of 2014.
BP said the doubling of downstream profits reflected “the stronger overall refining environment, increased refining optimisation and production, and improved marketing performance”.
Simplification and efficiency programmes also contributed to lower costs in downstream, the company said.
Within its downstream segment, the fuels business reported a pre-tax profit of $1.8 billion for the first quarter compared with $700 million for the same period in 2014, lubricants reported profits of $345 million compared with $307 million, and petrochemicals reported $17 million of profits compared with $4 million.
The doubling of refining profits came as BP’s overall profits fell 20% from $3.2 billion in Q1 2014 to $2.6 billion in Q1 2015.
This overall fall was due to the ongoing low oil price, with Brent crude averaging $54 per barrel in Q1 2015 compared with $108 in Q1 2014.
BP chief executive Bob Dudley said his company’s results reflected “this weaker environment” and that the market was entering “a possible period of sustained lower prices”.
In response BP has begun a period of divesting upstream oil & gas assets, having already sold off $7.1 billion of infrastructure including last week’s announcement that the firm is selling off its interest in the CATS pipeline system in the North Sea.
A further $10 billion of divestments are planned to occur by the end of 2015.
