BP Q1 net profit down 18 pct with big drop in fuels

by News Staff Posted May 1, 2012 7:29 am MDT BP Q1 net profit down 18 pct with big drop in fuels business AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email LONDON – BP PLC saw its first-quarter net profit fall by 18 per cent as its downstream business, which sells fuels, lubricants and fertilizer, struggled.The company also announced Tuesday that it intends to sell its stakes in several assets in the Gulf of Mexico which it regards as non-strategic.BP suffered huge damage to its reputation following the catastrophic blowout of the Macondo well on April 20, 2010, which triggered an explosion that killed 11 rig workers and leaked more than 200 million gallons of oil into the Gulf.For the three months ending March 31, BP said its net profit was $5.9 billion compared to $7.3 billion a year earlier.Replacement cost profit, a closely watched industry measure, was down 12 per cent at $4.9 billion from $5.6 billion a year earlier. The big difference came in the downstream category, where underlying replacement cost profit fell 58 per cent to $924 million compared to $2.2 billion a year earlier.Within downstream, profits in the fuels business was down 63 per cent at $487 million, because of a much weaker performance from the supply and trading division, weaker demand, and the temporary shutdown of the Cherry Point refinery in the U.S. state of Washington following a fire in February.Underlying replacement cost profit, excluding non-operating items and fair value accounting effects, was $4.8 billion, below the market consensus of $5.1 billion.BP shares were down 2.1 per cent at 435.5 pence in early trading.Despite a downbeat quarter, CEO Bob Dudley said the company had made a good start on its strategic priorities.“During the quarter we gained access to significant new deep water and U.S. shale exploration acreage, our ongoing divestment program has reached $23 billion, and we have five deep water rigs at work in the Gulf of Mexico,” Dudley said. “This operational progress will underpin the financial momentum we expect to come through as we move into 2013 and 2014.”BP said it was putting its stakes in several Gulf of Mexico assets up for sale, including the Marlin, Horn Mountain, Holstein, Ram Powell and Diana Hoover fields.The company expects to have eight rigs working in the Gulf by the end of the year.During the quarter, the company also reached agreements to resolve the majority of private economic loss and medical claims stemming from the Macondo leak.“In all, despite legal uncertainty in relation to the Gulf of Mexico, the world’s addiction to oil and a bargain valuation continue to underlie favourable long-term sentiment,” said Keith Bowman, analyst at Hargreaves Lansdown Stockbrokers. read more

7 weird things that happened this week

first_imgOH BABY, BABY it’s a wild world. If you find it a bit difficult to keep up with the crazy shenanigans going on around the globe, don’t fret – DailyEdge.ie is here to help. We’ve sorted through the bonkers carry-on to bring you the best of the bizarre. A woman in England found a two foot python in her oven after cooking an oven pizza. Karen Jackson, of Northumberland, was bewildered to find the snake coiled inside her oven after cooking her dinner. After contacting the RSPCA and the people who sold her the oven, she discovered it belonged to the previous owner’s daughter and had been hiding in a cool spot at the rear. Slippery little bugger, evidently. (Mirror)A used condom shattered a car windscreen in eastern China. After the prophylactic was thrown from a multi-storey building, it landed on a man’s parked car below, where it shattered his windscreen. Reports indicate that DNA evidence left at the scene might reveal who the article belongs to. Best not to think too much about that. (Metro)A motorcycle reported stolen in 1967 has been returned to its original owner. The motorbike was stolen from his home and returned to him this week when Customs checked its identification number on its way out to Japan and realised it was stolen. Donald DeVault DeVault said that what initially attracted him to the motorbike was its blue colour and the name “Li’l Blue Bitch” airbrushed on its side. (AP) Source: LeatherupA missing undergraduate student, Asher Vongtau, has been located after spending two days wedged between two buildings in New York City. He was found “conscious and moaning” last Sunday after somehow becoming lodged between a parking garage and a dorm building in downtown Manhattan. The circumstances of how he came to be there are as yet unclear, but sources indicate the only way into the gap appeared to be from the roofs of the buildings. Party on, Asher. (Reuters)A woman ran over her husband repeatedly after he refused to stop at McDonald’s. Crystal Brooks, of Tennessee, became incensed when her partner would not stop for delicious, delicious fast food and let her hunger get the better of her by backing over her husband, Santiago Hernandez, three times. Hernandez sustained no serious injuries and Brooks is currently in custody. We’ve all experienced regrets after Micky D’s, but this is something else. (DailyEdge.ie) Source: GarbhabdasA Californian man did his first skydive to celebrate turning 100 years of age. When asked by his friends, Vernon Maynard said that jumping from a plane was the one thing he wished he had done in his life. After receiving the go-ahead from doctors, he jumped from 13,000 feet. Fair play, old timer. (Yahoo)Gloucestershire Police have revealed that they have received calls reporting “werewolves, wizards and a coven of witches” to their emergency 999 number. One boy rang to report himself as a wizard, meanwhile a taxi driver called to notify authorities that his wife was a werewolf. Our sympathies, mate. (Mirror)Rivers of caramel, lost dentures and a bust-up bingo brawl – it’s last week’s weird news>last_img read more