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Oil prices drag BP to worst annual loss

Tuesday, February 02, 2016 - 01:40

BP slumps to its worst annual loss in 2015, the British oil and gas company announces, and says it will cut thousands more jobs in the face of a deep rout in oil prices. Hayley Platt reports

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It's been working hard to rebuild its business since the 2010 Gulf of Mexico oil spill. But the low oil price environment and large debts are taking their toll on BP. Annual losses for 2015 were $6.5 billion - its worst loss in a single year. 3,000 further job cuts will now go before the end of 2017 on top of 4,000 already announced - that's nearly 9 percent of its workforce. Simon Smith is from FXPro. (SOUNDBITE) (English) FXPRO, HEAD OF RESEARCH, SIMON SMITH, SAYING: "It's being hit at both ends, both the upstream in terms of the refining. It's expensive getting it out of some of their fields, more so than other competitors and the downstream as well with the down move we've seen in the price at the pumps." The 2010 oil spill has cost BP $55 billion It's had to sell assets, reduce capital spending and lower operating costs But it's maintaining its dividend at 10 cents per share And some aren't sure that's sustainable. (SOUNDBITE) (English) FXPRO, HEAD OF RESEARCH, SIMON SMITH, SAYING: "It depends on whether they think or deep down they believe what we've seen in the oil price is just something that's cyclical. 'Oil is a cyclical commodity and will recover', and all will be well or whether we're down here to stay in the 30s or 20s for a much longer period." BP shares fell more than eight percent on the news - it's also appointing Lamar McKay as a new deputy to CEO Bob Dudley It's not the only one finding it tough Last week Chevron, the No. 2 U.S. producer, reported its first quarterly loss in more than 13 years. And Royal Dutch Shell is expected to report a near halving of its profits .

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Oil prices drag BP to worst annual loss

Tuesday, February 02, 2016 - 01:40