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BP revenues set to be 'dreadful,' CEO says: report
AFP
LONDON
Petroleumworld.com 09 25 07
British energy giant BP's third-quarter revenues are set to be "dreadful," the company's chief executive Tony Hayward told a meeting of BP employees in Houston, the Financial Times reported in an early edition of its Tuesday paper.
Citing a summary of the "town hall"-style meeting put together by a BP manager and sent to colleagues that it had obtained, the business daily said that Hayward told BP workers that the company's financial performance was at its worst since 1992-93.
The summary, under the heading "BP Confidential," noted that Hayward added that the energy company's fourth-quarter revenues would be an improvement on the previous three-month period because of an additional 250,000 barrels of oil per day in extra production as various projects start operating.
Hayward, who took over from John Browne as chief executive in May, reportedly blamed BP's underperformance on missing revenues from its Texas City and Whiting refineries in the United States.
BP has yet to recover from the fallout of the Texas City refinery explosion in 2005, which killed 15 people and raised doubts about safety across the group's US facilities.
A BP spokeswoman declined to comment on the report when contacted by AFP.
"There is a massive duplication and lack of clarity of who does what," Hayward was quoted as saying in the summary, the FT said.
"We will reduce the number of organisation limits ... (We) will reduce the number of layers from the workers up to the CEO from 11 to about seven."
He added that BP needed to shift its company culture so that it took well-judged risks, telling the meeting: "Assurance is killing us."
Hayward also said that BP's Texas City and Whiting refineries would be at full capacity by the end of this year, while the FT reported that BP has said in the past that the two sites would not be operating at that level until 2008.
AFP 24 2255 GMT 09 07
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