UK's BP Q2 petchem underlying replacement cost profit slumps 90%

31 July 2012 07:58  [Source: ICIS news]

SINGAPORE (ICIS)--BP’s petrochemicals operations posted an underlying replacement cost profit before interest and tax of $28m (€23m) in the second quarter of this year, from $270m in the same period a year earlier, the UK energy major said on Tuesday.

“This reflects particular weakness in aromatics margins, resulting from growing capacity and subdued demand compared with particularly strong margins in the first half of 2011,” the company said in a statement.

For the first six months of 2012, BP’s petrochemicals operations posted an underlying replacement cost profit before interest and tax of $140m, compared with $789m in the same period a year earlier.

The firm’s downstream operations posted an underlying replacement cost profit before interest and tax of $1.13bn in the second quarter of this year, representing an 18.9% decrease from the same period a year earlier, the company said.

Overall, BP’s underlying replacement cost profit for the second quarter was $3.69bn, down by 35% year on year.

The company swung to a net loss of $1.39bn in the second quarter, compared with a net profit of $5.72bn in the same period last year.

For the first six months of this year, the company’s overall underlying replacement cost profit fell by 24% year on year to $8.48bn, while it net profit slumped 65% to $4.53bn during the period.

($1 = €0.82)


By: Nurluqman Suratman



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