Cost-cutting returns BP to profits

HEAVY cost-cutting helped British Petroleum, the oil and chemicals group, to return to the black in the first three months of this year with net profits of pounds 325m compared with a pounds 66m loss a year earlier, writes Neil Thapar.

The result, which was better than market expectations, pushed the shares 10p higher to 306p.

Earnings recovered to 6p against a 1.1p loss in 1992. But the first quarter dividend has been halved to 2.1p in line with the group's dividend cut announced last June when Robert Horton was forced to step down as chairman and chief executive.

BP said the profits recovery stemmed from massive cost-cutting involving the loss of 10,000 jobs. The group plans to reduce its total costs by about pounds 600m a year.

Operating profits on a replacement cost basis rose from pounds 423m to pounds 585m. BP's oil exploration and production arm lifted operating profits from pounds 414m to pounds 516m. Refining and marketing profits jumped from pounds 36m to pounds 124m despite weaker industry profit margins. The chemicals division's loss rose from pounds 6m to pounds 14m.

Group interest costs fell from pounds 190m to pounds 170m, thanks to a pounds 600m reduction in net debts to pounds 9.6bn.

View from City Road, page 24

Hamish McRae, page 25

Suggested Topics
PROMOTED VIDEO
News
ebooksNow available in paperback
Arts and Entertainment
theatreSinger to join cast of his Broadway show after The Last Ship flounders at the box office
News
Valerie Trierweiler’s book paints Hollande as a cold-hearted hypocrite
people
Arts and Entertainment
Jennifer Lawrence as Katniss Everdeen in The Hunger Games: Mockingjay Part 1
filmsMockingjay Part 1 taking hit franchise to new levels
News
Bill Cosby
peopleActor has firmly defended himself against all claims
Arts and Entertainment
Carey Mulligan as Bathsheba Everdene in Far From The Madding Crowd
filmsAlso much to look forward to for Thomas Hardy fans
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Argyll Scott International: Business Analyst - MGA - London Market - Insurance Broker

£50000 - £60000 per annum + benefits: Argyll Scott International: A Business A...

Ashdown Group: PR, Marketing & Events Executive - Southwark, London - £35,000

£30000 - £35000 per annum + benefits: Ashdown Group: PR Marketing & Events Exe...

Selby Jennings: C++ Developer – Hedge Fund – New York

$80000 - $110000 per annum, Benefits: Bonus and Employee Investment Scheme: Se...

Selby Jennings: Java Developer Enterprise Specialist –Paris,France

€30000 - €50000 per annum, Benefits: Competitive Bonus: Selby Jennings: Java D...

Day In a Page

In a world of Saudi bullying, right-wing Israeli ministers and the twilight of Obama, Iran is looking like a possible policeman of the Gulf

Iran is shifting from pariah to possible future policeman of the Gulf

Robert Fisk on our crisis with Iran
The young are the new poor: A third of young people pushed into poverty

The young are the new poor

Sharp increase in the number of under-25s living in poverty
Greens on the march: ‘We could be on the edge of something very big’

Greens on the march

‘We could be on the edge of something very big’
Revealed: the case against Bill Cosby - through the stories of his accusers

Revealed: the case against Bill Cosby

Through the stories of his accusers
Why are words like 'mongol' and 'mongoloid' still bandied about as insults?

The Meaning of Mongol

Why are the words 'mongol' and 'mongoloid' still bandied about as insults?
Mau Mau uprising: Kenyans still waiting for justice join class action over Britain's role in the emergency

Kenyans still waiting for justice over Mau Mau uprising

Thousands join class action over Britain's role in the emergency
Isis in Iraq: The trauma of the last six months has overwhelmed the remaining Christians in the country

The last Christians in Iraq

After 2,000 years, a community will try anything – including pretending to convert to Islam – to avoid losing everything, says Patrick Cockburn
Black Friday: Helpful discounts for Christmas shoppers, or cynical marketing by desperate retailers?

Helpful discounts for Christmas shoppers, or cynical marketing by desperate retailers?

Britain braced for Black Friday
Bill Cosby's persona goes from America's dad to date-rape drugs

From America's dad to date-rape drugs

Stories of Bill Cosby's alleged sexual assaults may have circulated widely in Hollywood, but they came as a shock to fans, says Rupert Cornwell
Clare Balding: 'Women's sport is kicking off at last'

Clare Balding: 'Women's sport is kicking off at last'

As fans flock to see England women's Wembley debut against Germany, the TV presenter on an exciting 'sea change'
Oh come, all ye multi-faithful: The Christmas jumper is in fashion, but should you wear your religion on your sleeve?

Oh come, all ye multi-faithful

The Christmas jumper is in fashion, but should you wear your religion on your sleeve?
Dr Charles Heatley: The GP off to do battle in the war against Ebola

The GP off to do battle in the war against Ebola

Dr Charles Heatley on joining the NHS volunteers' team bound for Sierra Leone
Flogging vlogging: First video bloggers conquered YouTube. Now they want us to buy their books

Flogging vlogging

First video bloggers conquered YouTube. Now they want us to buy their books
Saturday Night Live vs The Daily Show: US channels wage comedy star wars

Saturday Night Live vs The Daily Show

US channels wage comedy star wars
When is a wine made in Piedmont not a Piemonte wine? When EU rules make Italian vineyards invisible

When is a wine made in Piedmont not a Piemonte wine?

When EU rules make Italian vineyards invisible