BP Hits Rough Patch ($BP)
BP has seen a rough few years. They maintain strength, but keep having little issues along the way. What are the problems they are seeing now? What else could possibly happen? Agustino Fontevecchia has the details.
The company decided to separate its upstream business from TNK-BP, the joint venture run with a group of Russian oligarchs. Profits there were flat at $1.157 billion, with production actually up 4% to 1.019 million barrels of oil equivalent per day after the acquisition of assets in Vietnam and Venezuela.
Moving on to the challenging refining and marketing business, BP saw downstream profits fall dramatically to $924 million from $2.2 billion. The guilty party was the fuels business, where profits fell to $487 million from $1.3 billion.
BP highlighted its refining advantage in the U.S. by having access to cheaper WTI prices, but noted those benefits were more than offset by weak supply and trading performance; the chemicals business did horribly as well.
BP has had a disappointing first quarter. Hopefully, they can step it up again in the next. We will only see as time passes!
Quotes taken from report by Agustino Fontevecchia, Read the entire article here.
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