UK's BP posts Q3 petchem underlying replacement cost loss of $20m

30 October 2012 08:41  [Source: ICIS news]

SINGAPORE (ICIS)--BP’s petrochemicals business posted an underlying replacement cost loss before interest and tax of $20m (€15.6m) in the third quarter of this year, compared with a profit of $235m in the same period a year earlier, the UK energy major said on Tuesday.

“This reflected continued weakness in margins globally resulting from recent capacity additions in Asia, high feedstock prices for aromatics production and lower demand,” it said in a statement.

For the first nine months of this year, its petrochemical business’ underlying replacement cost profit before interest and tax slumped to $120m, from $1.02bn in the same period last year.

“Looking ahead, we expect petrochemical margins to remain depressed in the fourth quarter,” the company said.

Overall, BP’s underlying replacement cost profit for the third quarter was $5.17bn, down by 5.36% year on year.

The company’s net profit for the third quarter was up by 7.75% year on year to $5.43bn.

For the first nine months of 2012, the company’s overall underlying replacement cost profit fell by 22.1% year on year to $13.7bn, while its net profit slumped by 44.7% to $9.96bn.

($1 = €0.78)

By: Nurluqman Suratman

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