BP posted a net loss of nearly $1.4 billion for the second quarter of the year, down from a profit of more than $5.7 billion during the same period a year ago.
Dragging down the second quarter result was impairment losses of nearly $4.8 billion which BP said was related mainly to certain refineries, US shale gas assets and the decision to suspend the Liberty project in Alaska.
Underlying replacement cost profit for the period, which is adjusted for non-operating items and fair value accounting effects, totaled $3.7 billion which was still well below the $5.7 billion booked a year earlier.
Dragging down underlying profits was a dip in revenue with the company generating $94.9 billion during the three months to 30 June, down from $103.9 billion during the second quarter of 2011.
BP attributed the decline to weaker oil and US gas prices combined with a fall in output and lower net income from TNK-BP.
It noted that net income from TNK-BP during the quarter totaled $700 million, which BP said was below the amount the Russian joint venture brought in during the first quarter of the year due to “a rapid fall in oil prices” which was amplified by the in Russian oil export duty which it said was based on earlier higher prices.
Output during the quarter, excluding TNK-BP, averaged about 2.3 million barrels of oil equivalent per day, compared to nearly 2.5 million boepd during the second quarter of 2011.
BP attributed the fall to planned downtime in the higher-margin Gulf of Mexico and in Trinidad but noted it was partly offset by production in India and start-ups in Angola and Trinidad.
More to follow…