BP plans job cuts as profits slump

Energy giant BP on Tuesday reported a 90-per-cent slump in profit for the last three months of 2015, linking the drop to lower oil prices and warning that it expects to cut up to 7,000 staff and contractor jobs over the next two years.

BP said its underlying replacement cost profit - a standard accounting measure of performance in the oil industry - fell to 196 million dollars in the fourth quarter of 2015, down from 2.2 billion dollars in the same period of 2014.

It said it had allocated another 443 million dollars in the quarter for payments related to the Deepwater Horizon oil spill in 2010, bringing the total set aside for the disaster in the Gulf of Mexico to 55.5 billion dollars.

"Despite strong operational performance and growing cost reductions, the lower underlying result was predominantly driven by the impact of steeply lower oil and gas prices on BP's upstream segment," it said.

Bob Dudley, BP's chief executive, said the group was "continuing to move rapidly to adapt and rebalance BP for the changing environment."

"We're making good progress in managing and lowering our costs and capital spending, while maintaining safe and reliable operations and continuing disciplined investment into the future of our portfolio," Dudley said.

The BP group employs about 84,500 people worldwide.

Last update: Tue, 02/02/2016 - 12:54

More from Business

ECB to hold rates, decides against extending bond-buying scheme

The European Central Bank left its key interest rates at historic lows on Thursday and left its 80-billion-euro-a-...

Nissan finishes purchase of 34-per-cent stake in Mitsubishi Motors

Nissan Motor has completed its purchase of a 34-per-cent stake in scandal-plagued Mitsubishi Motors for 237 billion...

EU seeks to strengthen trade defence measures as China threat looms

The European Commission proposed a new compromise Wednesday to protect EU industry against unfairly cheap imports,...

Study shows Europeans work 19 per cent fewer hours than Americans

Europeans work on average 19 per cent fewer hours per year than Americans, a new study by three economists from the...

Final decision on VW settlement expected within week

Volkswagen seems well on the way to get final approval on a proposed settlement in the emissions test scandal, but...