BP plunges into net loss as output, oil prices drop

PanARMENIAN.Net - British energy giant BP said Tuesday, July 31 that it plunged into a net loss in the second quarter of 2012, hit by lower oil prices and a huge $5.0-billion (4.1-billion-euro) writedown on the value of assets, AFP said.

BP made a loss after tax of $1.39 billion in the three months to June, compared with net profit of $5.72 billion in the year-earlier period, it said in a results statement.

The London-listed company was hit by an impairment charge of $4.78 billion on the value of US assets, including certain refineries, shale gas assets and its decision to suspend the Liberty (Berlin: RS3.BE - news) offshore oil project in Alaska.

Total (Other OTC: TTFNF.PK - news) production fell 7.4 percent to 2.28 million barrels of oil equivalent a day on the back of asset sales and an extended maintenance programme in the Gulf of Mexico. Revenue dipped 8.0 percent to $94.89 billion.

Adjusted earnings, stripping out movements in the value of inventories and other exceptional items like writedowns, sank 35 percent to $3.69 billion.

BP is still attempting to turn its fortunes around after the devastating Gulf of Mexico oil spill disaster in 2010.