BP Q3 refining/marketing op profit falls 25%

24 October 2006 09:32  [Source: ICIS news]

LONDON (ICIS news)--BP’s refining and marketing business, which includes much of its remaining chemical activities, suffered a 25% decrease in year-on-year third quarter replacement cost operating profits to $1.50bn (€1.20bn), the company said on Tuesday.

 

The result included a charge of $431m for non-operating items, including a provision of $400m for fatality and personal injury claims associated with the accident at its Texas City refinery.

 

The reduction in operating results in respect of Texas City, including the impact on associated businesses, was $320m compared to the third quarter of 2005. This reflected the absence of hurricane activity which negatively impacted the third quarter of 2005.

 

BP said the quarter’s result reflected lower refining margins and reduced supply optimisation benefits driven by lower crude and product prices. It also included the impact of higher levels of refining turnaround activity.

 

Global chemicals production decreased by 1% compared to the same period last year to 3.57m tonnes, led by a large reduction in UK production in the quarter.

 

At group level, BP recorded a 58% surge in replacement cost profit in the third quarter to $6.975bn from $4.410 the previous year..

 

This was driven by higher liquid realisations offset by lower gas realisations, and higher production taxes and costs reflecting the exploration and production sector’s inflation, revenue investment and production growth.

 

“The third quarter result benefited from significant disposable gains and IFRS accounting effects,” said chief executive Lord Browne.

 

“Results are being impacted by higher tax charges. The share buyback programme is continuing, with $3.5bn of share repurchases during the quarter.”

 

By: Mark Watts
+44 20 8652 3214

< previous article(ICIS Podcast: Chemical News Central 2 November 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly