UpdateBP's Q1 petchems profits drop to $112m in margin squeeze

01 May 2012 11:39  [Source: ICIS news]

(adds petrochemicals volumes and Q4 2011 profits data)

BPSINGAPORE (ICIS)--BP’s petrochemicals operations posted an underlying replacement cost profit before interest and tax of $112m (€85m) in the first quarter of 2012, representing a 78% slump from the same period last year, the UK energy giant said on Tuesday.

“This reflects a challenging margin environment compared with the particularly strong aromatics margins a year ago, although we have seen volumes improve from the low levels in the fourth quarter as a result of improved demand and higher availability,” BP said in a statement.

Petrochemicals profits in the fourth quarter were $96m.

BP’s first-quarter petrochemicals production was down 3.3% year on year at 3.91m tonnes but up 9.1% on the 2011 fourth quarter.

Volumes were down 5.0% in the US at 1.08m tonnes year on year in the first quarter and up 2.6% at 1.01m tonnes in Europe. Petrochemicals production outside these two regions was 5.3% lower at 1.82m tonnes.

BP said it expected petrochemicals margins to remain subdued given the difficult economic conditions.

The company’s downstream operations recorded a 59% decline in replacement cost profit before interest and tax for the first quarter to $856m, it said.

BP’s overall underlying replacement cost profit for January-March this year stood at $4.80bn, down 12.8% year on year.

($1 = €0.76)

Nigel Davis contributed to this article


By: Pearl Bantillo
+65 6780 4359



AddThis Social Bookmark Button

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

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index