BP profits sink after sale of stake in Russian firm
BP is set to report profits estimated at just $3.3 billion (£2.1 billion) for the first quarter this week as it waits for vital new production projects to come on stream.
In the next quarter, the oil company can also look forward to a production boost from its new venture with Russian oil giant Rosneft.
The earnings are down from $3.85 billion (£2.49 billion) in the last quarter due to the production lost after the sale of its stake in Russian venture TNK-BP. They compare with profits of $4.65 billion (£3.01 billion) a year ago.
New “upstream” assets, such as liquefied natural gas from Angola, form a central plank of the oil giant’s recovery plan in the wake of the Gulf of Mexico oil spill three years ago. The 10-point recovery plan is expected to bear fruit next year.
In the next quarter, the oil company can also look forward to a production boost from its new venture with Russian oil giant Rosneft.
BP has been shedding assets since the Gulf spill which has also tied it up in a long-running US trial.
The first phase of the trial came to a close earlier this month but a decision on potential liabilities may not be clarified for another year.
To add to the company’s woes, a dispute has arisen over last year’s civil and criminal settlement. The original estimate of the cost was $7.8 billion (£5 billion) but the administrator has been paying out on losses on claims which BP describes as fictitious.