04 February 2014 08:25 [Source: ICIS news]
SINGAPORE (ICIS)--BP’s petrochemical business posted a 4.34% year-on-year drop in its underlying replacement cost profit before interest and tax to $44m in the fourth quarter of 2013 partly because of poorer margins, the energy major said on Tuesday.
For the full year of 2013, the petrochemical business’ underlying replacement cost profit before interest and tax fell by 21.7% year on year to $130m.
BP's downstream segment’s underlying replacement cost profit before interest and tax slumped to $70m in the fourth quarter, compared with $1.39bn in the same period in 2012. Profit was partly weighed down by significantly weaker refining margins at its fuels business in the US.
On a full-year basis, the downstream segment posted a 43.8% year-on-year drop in its underlying replacement cost profit before interest and tax to $3.63bn in 2013.
“Going forward, in 2014 we expect refining margins to improve somewhat from the particularly low levels seen in the fourth quarter of 2013,” BP said.
However, the company expects the fuel and petrochemical environments to remain challenging in general.
“Additionally, we expect to see increased exposure to heavy crude differentials in the US as we ramp up heavy crude processing at the Whiting refinery,” BP said.
On a group-wide basis, the company’s fourth-quarter net profit fell by 30% year on year to $1.04bn, while its underlying replacement cost profit was down by 27.1% at $2.81bn.
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