BP squeezed by oil price slumpComments Off on BP squeezed by oil price slump
OIL major BP suffered more pain due to the global oil price rout with a sharp slump in profits last quarter.
The group, which recemtly came under fire for its generous pay deal for chief executive Bob Dudley, said adjusted profits for the start of the year fell to $532 million from $2.57 billion – an 80% drop.
This beat analyst estimates, who had forecast a loss of $140 million.
Dudley said: “Market fundamentals continue to suggest that the combination of robust demand and weak supply growth will move global oil markets closer into balance by the end of the year.”
The dividend was held at 10 cents.
Brent crude hit a 13 year low during the quarter, adding to Dudley’s difficulties in turning around the underperforming company.
Refining margins at its fuel business were the weakest in five years, weighed down by weak fuel demand due to a warmer winter.
The company said it expected “significantly higher level of turnaround activity” and “some seasonal improvement in industry refining margins” in the second quarter.
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