BP Profits Fall Nearly 53 Percent

For BP, their second quarter net profits was not what they were hoping to see. In fact, their second quarter net profits have fallen 53 percent. This news came in according to the results of a statement from the energy giant themselves.

Despite the fact that BP has had a higher output, the firm says that falling oil prices have caused a 53 percent drop in net profits to about $3.14 billion in the three months to June. This is compared to the $6.75 billion that was made during the same time last year.

BP has also announced that they have cut costs by about $2 billion, and hope to cut another $1 billion by the end of the year. The chief executive of BP, Tony Hayward said that the company is in turbulent times. He said that they must continue to steer a steady course through the very choppy waters.

He went on to say that despite the current climate, they are making very good progress in growing their operations and trying to drive forward with cost efficiency. The current oil prices range from $60 to $70 a barrel. This is a far cry from what they were last year when they peaked at $147 a barrel. Despite this big drop, the price per barrel is still up from the $30 that was seen as this year’s low.

The investment adviser at The Share Center, Nick Raynor, said that the key reason for profits halving is ongoing volatility of oil prices. Oil has recently been traded for around $60 a barrel, which is the price that oil companies claim they need to sell each barrel to break even.