BP Reports Lower Profits on Falling Oil Prices

BP has reported lower profits and says it will cut spending on exploration because of the fall in oil prices.

Underlying profits in the final three months of 2014 were down 20% on a year earlier at $2.2bn (£1.5bn). For the full year, profits fell 10% to $12.1bn.

The oil giant also said it would be cutting capital expenditure plans by $4bn-$6bn this year.

BP’s share price is down 16% since last summer due to lower oil prices, which have fallen 50% in the past six months.

Separately, fellow UK energy company BG Group said it was writing down assets worth almost $6bn due to the weaker oil price.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza