Total first-quarter revenue was down 41 per cent compared with last year. Jason Alden / Bloomberg
Total first-quarter revenue was down 41 per cent compared with last year. Jason Alden / Bloomberg

BP earnings down 19 per cent in quarter as it cuts spending and jobs



BP reported sharply lower earnings for the first quarter of the year as the effect of lower oil and gas prices were felt, especially in the US where the company reported a loss in its upstream business.

BP reported an underlying replacement cost profit (which strips out the effects of inventory valuation and various other erratic financial effects) of US$2.6 billion for the first quarter of the year, down 19 per cent on a year earlier.

Total revenue for the quarter was down 41 per cent compared to last year, at $55bn. A more than doubling in the underlying profit for downstream — which includes refining — to $2.2bn was not enough to compensate for a huge slump in upstream profit, from last year’s first quarter profit of $4.4bn to just $600 million in the first three months.

Brian Gilvary, BP's chief financial officer, said that the outlook for the oil and gas market still remained "challenging", and the company was not expecting a rebound in prices any time soon. However, he also said that BP was reaping the benefit of lower industry costs, including much lower rates for oil rigs, as well as the effects of large-scale job cuts.

BP has been cutting costs longer and by more than its peers because of the after-effects of its Gulf of Mexico oil spill disaster five years ago, when an explosion on its Macondo platform killed 11 workers and spilled hundreds of millions of gallons of oil into the sea.

The huge compensation bill forced BP to sell off billions in dollars of assets, massively reducing its presence and staff numbers. The trend has deepened as oil prices slumped.

Mr Gilvary said that job cuts at BP since 2012 have reached 3,500, with a further 800 jobs lost in the first quarter.

“We expect to see more of that,” Mr Gilvary said. “It is a painful process but we are trying to treat people fairly and equitably.”

He said that the job losses are being seen “across the piece” — in upstream, downstream and corporate — and that many are owing to asset disposals the company has been making. In all, BP had sold off $38bn in assets by the end of 2013 and targeted a further $10bn by the end of this year. Mr Gilvary said that, so far, just over $7bn of assets had been sold under that programme, including the sale of a 40 per cent stake in its Oman gas project. But he said the company would be back to a more normal “churn” of $3bn to $4bn of assets after the latest wave is complete.

BP had provisioned $43.5bn for the Gulf of Mexico spill by the end of last year but it has been mired in a legal process that has made it difficult to estimate the final costs, which comprise a combination of government fines and costs, as well as compensation to a vast range of businesses along the US Gulf of Mexico.

In the first quarter, BP had to take an additional charge of more than $300m to meet some of these claims for disruption to business.

Those charges have been running at $300m to $400m a quarter, but Mr Gilvary said that the deadline for such claims will be early June this year.

In terms of its operations, BP benefited from improvements. Total oil and gas production was up about 13 per cent in the first quarter from a year earlier, at 2.3 million barrels of oil equivalent.

In the US, output was hardly changed at 653,000 boe, but the company booked an underlying loss of $545m, versus a $731m profit the year before, with the cancellation of two deepwater rigs costing BP $400m in the quarter. However, while Mr Gilvary said BP expects further pressure on costs in the months ahead, which should help the bottom line. Asked about delays to one of BP’s big Gulf of Mexico projects — Mad Dog Phase Two — Mr Gilvary said that it would make the project more profitable down the line.

“When you look at what is happening with rig rates, moving Mad Dog sideways [delaying it, that is] was best thing to do,” Mr Gilvary said. “We had 13 rigs stacked at the end of Q4, 21 rigs now and expect 41 to be scrapped by the end of the year. Rig rates are looking pretty soft.”

amcauley@thenational.ae

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RESULTS

6.30pm Al Maktoum Challenge Round-2 – Group 1 (PA) $49,000 (Dirt) 1,900m

Winner RB Frynchh Dude, Pat Cosgrave (jockey), Helal Al Alawi (trainer)

7.05pm Al Bastakiya Trial – Conditions (TB) $50,000 (D) 1,900m

Winner El Patriota, Vagner Leal, Antonio Cintra

7.40pm Zabeel Turf – Listed (TB) $88,000 (Turf) 2,000m

Winner Ya Hayati, Mickael Barzalona, Charlie Appleby

8.15pm Cape Verdi – Group 2 (TB) $163,000 (T) 1,600m

Winner Althiqa, James Doyle, Charlie Appleby

8.50pm UAE 1000 Guineas – Listed (TB) $125,000 (D) 1,600m

Winner Soft Whisper, Frankie Dettori, Saeed bin Suroor

9.25pm Handicap (TB) $68,000 (T) 1,600m

Winner Bedouin’s Story, Frankie Dettori, Saeed bin Suroor

23-man shortlist for next six Hall of Fame inductees

Tony Adams, David Beckham, Dennis Bergkamp, Sol Campbell, Eric Cantona, Andrew Cole, Ashley Cole, Didier Drogba, Les Ferdinand, Rio Ferdinand, Robbie Fowler, Steven Gerrard, Roy Keane, Frank Lampard, Matt Le Tissier, Michael Owen, Peter Schmeichel, Paul Scholes, John Terry, Robin van Persie, Nemanja Vidic, Patrick Viera, Ian Wright.

Tips for job-seekers
  • Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
  • Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.

David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East

Five famous companies founded by teens

There are numerous success stories of teen businesses that were created in college dorm rooms and other modest circumstances. Below are some of the most recognisable names in the industry:

  1. Facebook: Mark Zuckerberg and his friends started Facebook when he was a 19-year-old Harvard undergraduate. 
  2. Dell: When Michael Dell was an undergraduate student at Texas University in 1984, he started upgrading computers for profit. He starting working full-time on his business when he was 19. Eventually, his company became the Dell Computer Corporation and then Dell Inc. 
  3. Subway: Fred DeLuca opened the first Subway restaurant when he was 17. In 1965, Mr DeLuca needed extra money for college, so he decided to open his own business. Peter Buck, a family friend, lent him $1,000 and together, they opened Pete’s Super Submarines. A few years later, the company was rebranded and called Subway. 
  4. Mashable: In 2005, Pete Cashmore created Mashable in Scotland when he was a teenager. The site was then a technology blog. Over the next few decades, Mr Cashmore has turned Mashable into a global media company.
  5. Oculus VR: Palmer Luckey founded Oculus VR in June 2012, when he was 19. In August that year, Oculus launched its Kickstarter campaign and raised more than $1 million in three days. Facebook bought Oculus for $2 billion two years later.
TECH SPECS: APPLE WATCH SERIES 9

Display: 41mm – 352 x 430; 45mm – 396 x 484; always-on Retina LTPO OLED, 2000 nits max; Ion-X glass (aluminium cases), sapphire crystal (stainless steel cases)

Processor: Apple S9 64-bit, W3 wireless, 2nd-gen Ultra Wideband

Capacity: 64GB

Memory: 1GB

Platform: watchOS 10

Health metrics: Blood oxygen sensor, electrical heart sensor and ECG, 3rd-gen optical heart sensor, high and low heart rate notifications, irregular rhythm notifications, sleep stages, temperature sensing

Emergency services: Emergency SOS, international emergency calling, crash detection, fall detection

Connectivity: GPS/GPS + cellular; Wi-Fi, LTE, Bluetooth 5.3, NFC (Apple Pay)

Durability: IP6X, water resistant up to 50m, dust resistant

Battery: 308mAh Li-ion, up to 18h regular/36h low power; wireless charging

Cards: eSIM

Finishes: Aluminium – midnight, pink, Product Red, silver, starlight; stainless steel – gold, graphite, silver

In the box: Watch Series 9, woven magnetic-to-USB-C charging cable, band/loop

Price: Starts at Dh1,599 (41mm) / Dh1,719 (45mm)

ALRAWABI SCHOOL FOR GIRLS

Creator: Tima Shomali

Starring: Tara Abboud, Kira Yaghnam, Tara Atalla

Rating: 4/5

The specs

Engine: 4.0-litre twin-turbo V8
Power: 640hp at 6,000rpm
Torque: 850Nm from 2,300-4,500rpm
Transmission: 8-speed auto
Fuel consumption: 11.9L/100km
Price: Dh749,800
On sale: now

How the UAE gratuity payment is calculated now

Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.

The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.

1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):

a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33

b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.

2. For those who have worked more than five years

c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.

Note: The maximum figure cannot exceed two years total salary figure.

The Specs

Engine: 1.6-litre 4-cylinder petrol
Power: 118hp
Torque: 149Nm
Transmission: Six-speed automatic
Price: From Dh61,500
On sale: Now

SPEC SHEET: NOTHING PHONE (2A)

Display: 6.7-inch flexible Amoled, 2,412 x 1,080, 394ppi, 120Hz, Corning Gorilla Glass 5

Processor: MediaTek Dimensity 7,200 Pro, 4nm, octa-core

Memory: 8/12GB

Capacity: 128/256GB

Platform: Android 14, Nothing OS 2.5

Main camera: Dual 50MP main, f/1.88 + 50MP ultra-wide, f/2.2; OIS, EIS, auto-focus, ultra XDR, night mode

Main camera video: 4K @ 30fps, full-HD @ 60fps; slo-mo full-HD at 120fps

Front camera: 32MP wide, f/2.2

Battery: 5,000mAh; 50% in 30 minutes with 45-watt charger

Connectivity: Wi-Fi, Bluetooth 5.3, NFC (Google Pay)

Biometrics: Fingerprint, face unlock

I/O: USB-C

Durability: IP54, limited protection from water/dust

Cards: Dual-nano SIM

Colours: Black, milk, white

In the box: Nothing Phone (2a), USB-C-to-USB-C cable, pre-applied screen protector, Sim tray ejector tool

Price (UAE): Dh1,199 (8GB/128GB) / Dh1,399 (12GB/256GB)

DUBAI BLING: EPISODE 1

Creator: Netflix

Stars: Kris Fade, Ebraheem Al Samadi, Zeina Khoury

Rating: 2/5

COMPANY PROFILE

Company name: Revibe
Started: 2022
Founders: Hamza Iraqui and Abdessamad Ben Zakour
Based: UAE
Industry: Refurbished electronics
Funds raised so far: $10m
Investors: Flat6Labs, Resonance and various others

Kill

Director: Nikhil Nagesh Bhat

Starring: Lakshya, Tanya Maniktala, Ashish Vidyarthi, Harsh Chhaya, Raghav Juyal

Rating: 4.5/5

The Super Mario Bros Movie

Directors: Aaron Horvath and Michael Jelenic
Stars: Chris Pratt, Anya Taylor-Joy, Charlie Day, Jack Black, Seth Rogen and Keegan-Michael Key
Rating: 1/5

RESULTS

4pm: Al Bastakiya Listed US$250,000 (Dirt) 1,900m
Winner: Yulong Warrior, Richard Mullen (jockey), Satish Seemar (trainer)

4.35pm: Mahab Al Shimaal Group 3 $200,000 (D) 1,200m
Winner: Jordan Sport, Adrie de Vries, Fawzi Nass

5.10pm: Nad Al Sheba Conditions $200,000 (Turf) 1,200m
Winner: Jungle Cat, William Buick, Charlie Appleby

5.45pm: Burj Nahaar Group 3 $200,000 (D) 1,600m
Winner: Kimbear, Patrick Dobbs, Doug Watson

6.20pm: Jebel Hatta Group 1 $300,000 (T) 1,800m
Winner: Blair House, James Doyle, Charlie Appleby

6.55pm: Al Maktoum Challenge Round-3 Group 1 $400,000 (D) 2,000m
Winner: North America, Richard Mullen, Satish Seemar

7.30pm: Dubai City of Gold Group 2 $250,000 (T) 2,410m
Winner: Hawkbill, William Buick, Charlie Appleby.

Profile box

Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)

Inside Out 2

Director: Kelsey Mann

Starring: Amy Poehler, Maya Hawke, Ayo Edebiri

Rating: 4.5/5

The Afghan connection

The influx of talented young Afghan players to UAE cricket could have a big impact on the fortunes of both countries. Here are three Emirates-based players to watch out for.

Hassan Khan Eisakhil
Mohammed Nabi is still proving his worth at the top level but there is another reason he is raging against the idea of retirement. If the allrounder hangs on a little bit longer, he might be able to play in the same team as his son, Hassan Khan. The family live in Ajman and train in Sharjah.

Masood Gurbaz
The opening batter, who trains at Sharjah Cricket Academy, is another player who is a part of a famous family. His brother, Rahmanullah, was an IPL winner with Kolkata Knight Riders, and opens the batting with distinction for Afghanistan.

Omid Rahman
The fast bowler became a pioneer earlier this year when he became the first Afghan to represent the UAE. He showed great promise in doing so, too, playing a key role in the senior team’s qualification for the Asia Cup in Muscat recently.

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