Oil price rout hits BP profits, as it unveils spending cuts and $3.6 billion write downComments Off on Oil price rout hits BP profits, as it unveils spending cuts and $3.6 billion write down
BP said it would spend about $20 billion in 2015, around $3 billion less than the year before to cope with the slump in oil prices, which have halved since last summer.
The $3.6 billion charge mainly related to upstream assets in the North Sea and Angola.
There was reason for shareholders to cheer, however, as BP maintained its quarterly dividend – a huge attraction for investors – at 10 cents per ordinary share.
The company also booked a surprise $470 million profit from its stake in Russian oil company Rosneft.
Shares in BP were around 3.7% in early trading.
BP has already announced job cuts at its maturing North Sea operations. Around 200 staff and 100 contractor roles will go under the plan, which is part of an $1 billion cost savings programme.
BP peers Chevron and Shell have both unveiled spending cuts to adjust to the new oil price level.
British firm BG said earlier it would spend a third less in 2015 than it did in 2014 and that it had taken a $8.9 billion impairment charge.
Additional reporting by Reuters