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

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