BP posts first-half net loss of $2.73 billion

BP PLC recorded a $2.25-billion net loss in the second quarter and $2.73-billion net loss for the first half. Those totals compare with a $6.27-billion net loss in second-quarter 2015 and $4.16-billion net loss for first-half 2015.

The firm says its quarterly results were impacted by lower oil and gas prices and significantly lower refining margins, partly offset by the benefit of lower cash costs throughout the group as well as lower exploration write-offs.

The second-quarter results include the previously reported $5.2-billion pretax charge for the Macondo well blowout, whose total cumulative pretax charge to BP is $61.6 billion (OGJ Online, July 15, 2016).

Companywide production during the quarter averaged 2.09 million boe/d, down 1% year-over-year. First-half production averaged 2.26 million boe/d, up 2.3% year-over-year. BP expects planned new upstream projects to add 800,000 boe/d of production by 2020, with 500,000 boe/d of new capacity expected by yearend.

Organic capital expenditure for the first half was $7.9 billion. Full-year capex is now expected to be below $17 billion. During the half, BP received $1.9 billion from divestments, including the partial sale of its interest in Castrol India.

“We continue to reset our capital and cost base and are moving steadily towards our aim of rebalancing organic sources and uses of cash by 2017 in a $50-55/bbl oil-price range,” said Brian Gilvary, BP’s chief financial officer.