BP’s profit drops in 3Q 2016
Baku, Azerbaijan, Nov.1
By Leman Zeynalova – Trend:
BP’s profit stood at $933 million on an underlying replacement cost basis in the third quarter of 2016, as compared to $720 million for the previous quarter and $1.8 billion for the third quarter of 2015, according to the company’s report posted on its website.
The quarter’s result was affected by a weaker price and margin environment, according to the report.
The Brent oil price averaged $46 a barrel in the third quarter of 2016, compared with $50 a barrel in 3Q 2015, and gas prices outside the US were also weaker.
“We continue to make good progress in adapting to the challenging price and margin environment. We remain on track to rebalance organic cash flows next year at $50 to $55 a barrel, underpinned by continued strong operating reliability and momentum in resetting costs and capital spending,” BP’s Chief Financial Officer Brian Gilvary said.
“At the same time we are investing in the projects, businesses and options to deliver growth in the years ahead,” he added.
BP is the largest foreign investor in Azerbaijan's oil and gas sector and the operator of Azeri-Chirag-Gunashli offshore oil and gas fields’ block, as well as Shah Deniz gas and condensate field.
BP is also a member of such pipeline projects as the Baku-Tbilisi-Ceyhan and South Caucasus Gas Pipeline.