OIL major BP will announce its second-quarter results on Tuesday.
More than a year ago, the company hit the headlines when a devastating explosion at its Macondo well in the Gulf of Mexico led to the largest accidental marine oil spill in the industry’s history. The repercussions are still reverberating around the oil and gas industry.
The financial impact of Macondo has also been severe. BP took a £25billion pre-tax charge for costs relating to the spill and undertook a programme of disposals of non-core assets to reshape its finances. It also cancelled its dividend, which was restored at the start of this year, albeit at about half previous levels.
After the departure of chief executive Tony Hayward, successor Bob Dudley was instrumental in negotiations with Russian oil company Rosneft to explore offshore in the Russian Arctic. However, the proposed deal collapsed.
Looking to rebuild its tarnished reputation and financial position, BP has embarked on joint ventures in Indonesia, China and Azerbaijan, and is pushing ahead on its Brazilian deepwater portfolio.
Next week’s figures will give an indication of the company’s progress through this transition phase. Analysts are expecting operating profits of £5.6-£5.8billion for the second quarter on revenue of about £57.6billion. Operating profit for the first quarter was about £5.6billion.
Alan MacPhee is an investment manager at investment-management and financial-planning specialist Brewin Dolphin in Aberdeen
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