Terrible downturn in performance, new figures today mean now only £47 million in profit.....! Due to crude going from £100 a barrel to £30 a barrel.
3000 jobs due to be cut.
If my firm were £47 million in profit we'd be cracking the champagne out and taking people on!
http://www.techworld.com/news/startups/bp-outsources-sap-to-ibm--in-five-year-deal-3200872/
SAP implementation on that scale ain't cheap!
A lot of UK Pensions rely on oil company dividends.
Be interesting how the investment companies paying the pensions decide to make up the shortfall - ride the oil price wave and hope it peaks again or divest of increasingly volatile stock and reduce expectations?
4500 jobs went in 2015 - my wife being one of them. The company is paying the price for the drop in oil price and is still paying for Deepwater Horizon.
51% drop in profits they say. If oil price stays this low then apparently we're looking at a 1% increase in GDP in uk which can turn into 90k extra jobs.....
Only if pump prices stay low and you can bet George Osborne's pampered left testicle that there will be a tax rise on the horizon
Also
The oil and gas sector is the UK’s largest corporation tax payer, contributing 16.4%
http://www.pwc.co.uk/services/tax/insights/total-tax-contribution-of-the-uk-oil-gas-industry.html
wwaswas - Member
A lot of UK Pensions rely on oil company dividends.Be interesting how the investment companies paying the pensions decide to make up the shortfall - ride the oil price wave and hope it peaks again or divest of increasingly volatile stock and reduce expectations?
They will down grade payment then when stock recover they will not reincrease payments and pocet the differnece.
burko73 - Member
51% drop in profits they say. If oil price stays this low then apparently we're looking at a 1% increase in GDP in uk which can turn into 90k extra jobs.....
but are they working in tesco jobs or well paid jobs.....
If they are as good a jobs as were lost all is good but so often you hear of an industry retracting that employed a large number of skilled people with a deent wadge that could support a family and then there is a call of xyz is opening offering loads of jobs but hey are largly minimum wadge jobs that need tiopping up.
Profits and profitability are not the same thing
If my firm were £47 million in profit we'd be cracking the champagne out and taking people on!
I'm guessing your firm does not invest as much capital as BP in order to generate its profits?
£47 million would be bad - it's £4.1 billion. They are huge so profits at this level are needed to justify the capital employed.
As alluded to above BP spends a lot of capital also, it isn't cheap to develop oil fields in harsh environments. In the North Sea alone the redevelopment of the Schiehallion and Loyal fields is in the order of £3 billion, the Clair Ridge is £4.5 billion and Kinnoull was £700 million (which was a smaller figure due to using a lot of existing infrastructure).