reports profit fall on declining production
07 24 07
British oil giant BP announced a fall in net profit
in the three months to June following 24 months of continuously falling production
despite strong world demand for energy.
Net profit on the basis of replacement costs, which excludes the effect of changes
in the value of oil and gas inventories, fell by 0.5 percent to 6.087 billion
dollars (4.406 billion euros) during the second quarter, compared with the same
period in 2006.
The replacement cost figure is closely watched by the market.
BP, the world's third-biggest energy group, was also hit by a slight fall in
average oil prices during the second quarter compared with prices 12 months earlier.
The results were seen as posing a big challenge to the new head of the group,
Tony Hayward, who took over in May after the dramatic resignation of chief executive
BP said that replacement cost net profit, excluding one-off gains, dropped by
12.5 percent to 5.346 billion dollars during the second quarter.
This was in-line with analysts' forecast range of 4.764-5.634 billion dollars
and slightly ahead of the consensus figure of 5.051 billion.
BP is hoping that Hayward, whose previous role was head of exploration and production,
will herald a brighter future for Europe's second-biggest energy company behind
Royal Dutch Shell.
Its competitor publishes second-quarter earnings on Thursday.
BP said on Tuesday that during the second quarter, oil production fell by 5.3
percent to 3.804 million barrels per day, as the group faced disruptions at US
Widely-respected business heavyweight John Browne, who transformed BP into a
corporate giant, quit as chief executive in May after revelations that he lied
High Court judge over how he had met his gay partner of four years.
He had been due to step down in July but quit early because of his personal scandal.
AFP 24 0938 GMT 07 07
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