BP’s chief executive Bob Dudley has declared that BP has reached a turning point and is now profitable after the last disastrous year that it has been through following the Macondo oil spill.
“We have now reached a definite turning point. Our operations are regaining momentum and we are facing the future with great confidence. I believe we will build on our strengths to substantially grow operating cash flows, allowing us to directly increase returns to shareholders as well as invest for future growth.” said chief executive Bob Dudley.
The company also announced its third quarter 2011 financial results which showed replacement cost profits for the first nine months of 2011 of US$ 15.9 billion, compared to a US$ 9.5 billion loss for the same period in 2010. This huge loss was driven by the US$ 40 billion loss the company incurred as a result of the Gulf clean-up operation. The reported replacement cost profit for the third quarter of 2011 was US$ 5.1 billion.
The company plans to continue refocusing its investments upon its strengths including exploration, where it intends to double its investment. The company will also continue to develop its downstream business, which is competitively strong.
It also plans to extend its current divestment programme to US$ 45 billion, divesting a further US$ 15 billion in assets by the end of 2013 in addition to the current programme of US$ 30 billion.
Dudley said he has been encouraged by the significant progress BP has already made in 2011, “These past 12 months have been our most successful for a decade in gaining new access for exploration – with 67 new exploration licences in 11 countries — and we have completed major deals to enter both Brazil and India. We have also agreed asset sales totalling $26 billion.”
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