BP sees fit huge losses but oil recovery – Investing.com Spain

Judith Mora

London, February 2 (EFE) .- The British oil BP (L today announced a net loss of 6.482 million dollars (5.943 million euros) in 2015, its worst result in 20 years due to the falling price Crude, but he predicted a recovery in 2016 of this raw material.

Its CEO, American Bob Dudley, predicted that demand and supply converge in the second half of the year and demand could even outbid in 2017, causing a rise in prices.

In a webcast with investors to present the annual results, said the depreciation of crude “will be maintained because the bases market have not changed, but not last forever. “

While acknowledging that the sector faces a” turbulent period “, he was confident that there will be prices” lower for longer, but not forever. ”

The collapse of oil prices in the last year and a half, when it has lost almost 75% of its value, the excess supply in the market has caused severe losses to the industry.

The decline recorded by BP in 2015 contrasts with the 3,780 million dollars (3.466 million euros) of profits obtained in 2014, with lower prices.

Gross losses were last year of 9.571 million dollars (8.776 million euros), compared to a profit before tax of 4.950 billion dollars (4.539 million euros) last year.

In 2015, company revenues were of 225.982 million dollars (207.225 million euros), a fall of 36.9% over 2014, with net debt of 27.200 billion dollars (24.924 million euros), up 20%.

Given these results, BP announced today that it will intensify its cost reduction program with another 3,000 layoffs before the end of 2017 in the area of ​​refining and sale, in addition to the 4,000 already announced in January in the area of ​​exploration and production .

With the new cuts, the total number of jobs eliminated by BP since the beginning of 2015 amounted to 11,000, as part of a restructuring process which aims to reduce annual costs by about 7,000 million dollars 2017.

At the impact of the depreciation of crude expenses incurred by the company to meet the compensation for the oil spill in 2010 from one of its wells in the Gulf of Mexico are added, that killed eleven people and an environmental disaster.

The costs related to the event and amounted to 55,500 million dollars (50,000 million euros), the company said, noting that the program has been completed divestment worth about 10,000 million dollars (9,170 million euros) that began in 2013 to meet the costs of litigation in the US.

BP prepares more divestments 2016, between 3,000 and 5,000 million dollars (2700-4500 million), he said.

Despite the losses, the multinational promised to pay a dividend of 10 cents per common share, which hopes to cash on March 24 .

Looking ahead to 2016, Dudley acknowledged to be a difficult year, but believes that the oil market “responded” to lower prices and “is rebalancing”, particularly crude oil and shale gas in the United States.

The CEO told the conference that BP “has adapted best” to the environment and remains committed to maintaining its production cost discipline, the dividend and divestitures.

BP today crowned the losers chart the London Stock Exchange, with a drop of almost 10% to a price of 331 pence per share.