BP profits shrink as ruble hits new lowOctober 28, 2014 - 17:30 AMT PanARMENIAN.Net - BP has released its third quarter 2014 results to reveal that profits shrunk to $1,290mln compared to $3,369mln in the second quarter and $3,504mln during the same period last year, according to RIA Novosti. The company explains it by the slump in world oil prices, as Brent crude prices dropped 25% over the past four months, amid increasing oil production in OPEC countries. Goldman Sachs recently forecast that the price of Brent crude, currently $85 per barrel, would fall to $75 initially before recovering slightly to $80 by the middle of next year. The oil giant, which is a big investor in Russia via its 20% stake in Rosneft, said the depreciation of the ruble against the dollar has also dragged profits down. On Friday, Oct 24, the Russian currency hit a new low against the U.S. dollar, reaching an all-time low of RUB 42/USD 1. Despite the fall in profits, the company remains upbeat about its performance, and hopes that its growing underlying production of oil and gas and good downstream [oil refining] performance, which generated strong cash flow in the third quarter, will keep them on track to hit their targets in 2014. Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | European Parliament to discuss repression in Azerbaijan The European Parliament will discuss repression of civil society in Azerbaijan on April 24 PACE wants concessions from Azerbaijan to accept Baku back A PACE co-rapporteur said that Azerbaijani authorities must make certain concessions so that the country can return to PACE. Cyprus parliament honors Armenian genocide victims Acting House President Zacharias Koulias noted that April 24 marks the “black anniversary” of the Armenian genocide. Armenia PM, France envoy discuss regional matters Issues related to the consistent development of Armenia-France cooperation were discussed. |