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BP said it would adjust its “financial framework” as it prepares for an era of cut-price oil, targeting $60 a barrel for 2017.
The oil price has stayed mostly below $50 a barrel this quarter, falling from $100 last year. BP said it would cut costs by as much as $6 billion (£3.9 billion) by 2017, as it released its third-quarter results on Tuesday.
Chief Executive Officer Bob Dudley said: “BP has successfully adapted to changing circumstances many times in its history and, in a hard time for the entire industry, I believe we will once again successfully take on today’s challenges,”
BP reported third quarter profit of $1.8 billion. That’s less than the $3 billion a year earlier but higher than market estimates of $1.2 billion.
The company has been hit with a $20 billion bill to settle claims against it in the wake of the Deepwater Horizon oil spill in 2010, along with low oil prices caused by oversupply and shrinking economic growth in emerging market economies such as China.
The stock is up on the news at the London market open: