BP's Q3 refining profits fall 75% on lower margins

23 October 2007 08:54  [Source: ICIS news]

MUMBAI (ICIS news)--BP’s refining and marketing business, which includes much of its remaining chemical activities, saw a marked 75% year-on-year fall in its third-quarter replacement cost profits before interest and tax, due to lower refining margins particularly in the US, it said on Tuesday.

Profits for the segment, which fell to $376m, reflected the adverse impact of operational issues, particularly at its Whiting refinery, and scheduled turnarounds, added the UK-based oil major.

Reduced supply optimisation benefits and higher integrity and repair costs also affected the division’s results for the third quarter ended 30 September, it added.

BP’s refining throughputs in the third quarter were lower, at 2.1bn bbl/day compared with 2.3bn bbl/day a year ago, mainly due to the disposal of its Coryton refinery and lower output at its Whiting refinery, partially offset by the ongoing recommissioning at the group’s Texas City refinery and the acquisition of the remaining interests in the Rotterdam refinery.

"We continue to make progress in the recommissioning of both the Texas City and Whiting refineries. We expect to restore both refineries to their full crude capacity and flexibility in the first half of 2008," BP said.

Meanwhile, lower profits from the segment and other divisions such as exploration and production and gas, power and renewables affected BP’s overall performance, it said.

At group level, BP posted a 38.2% year-on-year fall in profits before interest and tax (EBIT) from continuing operations to $6.8bn for the third quarter

By: Divya Chowdhury
+65 6780 4359

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