BP slumps to a loss as Russian arm struggles
UK OIL company BP yesterday reported a loss of $335m (£207m) during the third quarter of 2014, down from a $1bn profit in the same period of last year.
The firm’s Rosneft business in Russia took a major hit, with profit plunging to $107m, compared with $792m. BP said that this result was “principally affected by adverse foreign exchange movements”, but was also impacted by “an unfavourable duty lag effect and lower oil prices”.
The company also stated that further US and EU sanctions imposed on Russia and Rosneft during the third quarter “have had no material adverse impact on BP” to date. Bob Dudley, BP group chief executive, said: “Growing underlying production of oil and gas, and a good downstream performance generated strong cash flow in the third quarter, despite lower oil prices. This keeps us well on track to hit our targets for 2014.”
Brian Gilvary, chief financial officer at BP, said: “It’s been another quarter of momentum, building on strategy laid out back in 2011. We remain confident of delivering that plan, although we are in a very different environment now.”
Gilvary also took the opportunity yesterday to pay tribute to the late Total chief executive, Christophe de Margerie, who died in Moscow last week, saying: “The oil industry has lost one of its most distinguished champions. We will all miss him greatly.”
BP’s share price was up 1.57 per cent yesterday.