BP’s petrochemicals business posts loss of $98m in Q2 2014

SINGAPORE (ICIS)–BP’s petrochemicals business reported an underlying replacement cost loss before interest and tax of $98m in the second quarter of this year, compared with a $24m profit in the same period of 2013, the energy major said on Tuesday.

“The loss was principally due to environmental factors, especially in the aromatics business, as excess supply in Asia and high xylene prices in the US created downward pressures on product margins,” BP said in a statement.

On a group-wide basis, the underlying replacement cost profit for the second quarter and first half of the year was $3.64bn and $6.86bn respectively, compared with $2.71bn and $6.93bn for the same periods in 2013.

BP said: “In the petrochemicals business, the challenging environment is expected to continue, but we should benefit from a lower level of [plant] turnarounds.”