07 February 2012 12:59 [Source: ICIS news]
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LONDON (ICIS)--BP’s profit from petrochemicals fell 60.5% in the fourth quarter of 2011 to $96m (€73.7m) from the year-earlier period on weaker market conditions and additional Asia supply, the energy major said on Tuesday.
Replacement cost operating profit (RCOP) for the segment was down 59.3% from the third quarter.
“In our petrochemicals business, compared with 2010, the fourth-quarter result was impacted by weakening market conditions as additional Asian capacity has come on stream at a time of weaker demand.” BP said.
“The full-year result benefited from the strength in aromatics margins and volumes in the first half of the year, but this benefit was more than offset by weakening market conditions as the year progressed.”
The RCOP for petrochemicals for the full year was down 1.5% on 2010, at $5,474m.
BP’s petrochemicals production was down 3.8% year on year in the fourth quarter, at 3.7m tonnes, and full-year 2011 dropped 4.7% to 14.9m tonnes.
BP reported on Tuesday a 41.5% year-on-year fall in fourth-quarter RCOP for its refining and marketing businesses, which include fuels, lubricants and petrochemicals, to $564m.
Reduced refining and petrochemical margins, coupled with negative exchange-rate impacts hit profits for the quarter.
BP said it expects the marketing environment for fuels, lubricants and petrochemicals “to remain subdued, given the outlook for global demand”.
For the full year of 2011, BP posted a group RCOP of $23.9bn, compared with a loss of $4.91bn a year earlier.
($1 = €0.76)
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