BP posts $US6.5b loss amid oil price downturn
British oil and gas company BP posted its biggest annual loss
last year, and announced it would cut 7,000 jobs by the end
of 2017, as the company grapples with the worst oil
downturn in over a decade.
BP said it lost $US6.5 billion ($9.2 billion) in 2015, and
reported a 91 per cent decline in fourth quarter earnings.
Profit adjusted for one-time items and inventory changes was
$US196 million, which missed analyst expectations of $US815
million according to a survey of ten analysts by Bloomberg.
"The recent sharp fall in oil prices has had a big impact on
our results as it has for the whole industry, the key in time is
to adapt and compete in the new environment," chief
executive Bob Dudley told investors in a teleconference.
"This time last year we predicted that the deteriorating
environment would bring about an intense change for our
industry.
"We talked about a reset phase of 2 years or so with
outcomes defined by the level of oil and gas prices and we
are seeing all of that playing out across the sector."
The price of oil has slumped more than 70 per cent since
June 2014. West Texas crude fell around 6 per cent last
night to $US29.85.
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