Oil giant BP is expected to reveal a plunge in full-year profits due to the collapse in oil prices, analysts have warned.
BP, which is due to unveil its fourth quarter and full year results on 3 February, could see annual earnings slashed by 60% to £6.2billion on 2013, says BMO Capital.
Shell reports its results this Thursday, when it is set to pledge a 5% to 10% cut to its £23billion spending plans for 2015, targeting onshore operations in the US and Canada.
The company’s results have been undermined by its 19.75% stake in Rosneft, the Russian state-owned oil firm that has been hit by western sanctions and the collapsing rouble.
Earlier this week,BP revealed it would be freezing its base pay across the group, the latest in a series of steps by oil majors to cut costs in response to sinking oil prices.
Many have accelerated cuts in capital and operating expenditures, including freezing some projects, as crude prices more than halved since June to below $50 per barrel.
Salaries in the oil sector are a major part of operating expenses.
BP employed 83,900 staff in 2013 and paid them approximately £9billion in benefits, including wages and pensions,according to the company’s website.
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