Wednesday 20 May 2015

BP report Q1 2015

BP, Q1, 2015, report, front page

 The oil giant British Petroleum arrived with their Q1 report for 2015 and here I will make a brief summary regarding what I found in it which was a bit of a mixture.

For the report in full please click here and to see the previous summary regarding BP annual report 2014 or why not take a look at the latest analysis of BP 2015.

Looking at the income statement we see that they drop in revenue is huge! Both compared to Q1 2014 as well as to Q4 2014! The only comfort is that the costs have also dramatically decreased and almost no impairment losses had to be realised which leaves us with a bit of a profit but not as much as I would have liked to see. Their decrease in exploration expenses is a problem for my other holding Fugro and for me as a shareholder here in BP since to me that is something that must always continue. Finding more oil and gas is the bread an butter of the future and I want to continue to eat.

BP, Q1, 2015, income statement

I also wanted to see the segments and that is in the table below. We now clearly see the effect of decreased oil price giving a low Upstream income and how that is leveraged with decreased costs of the raw materials in Downstream. We also see that the impact on Rosneft due to dropped prices as well as the sanctions are dramatic.

BP, Q1, 2015, segment, profit

Conclusion: Difficult times for BP and I assume that when they thought they were almost out of the fire with the litigations they stepped into a new one with the drop in oil price. Their trimming of the organization will hopefully pay off and as long as they can keep pushing out their Downstream products to us customers at an equal price compared to before the oil price drop then things will work out fine. I will remain as a shareholder and I will continue to buy my petrol at Aral.

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