After fourth-quarter results tanked more than 90 percent, BP has announced that it will eliminate approximately 7,000 jobs, according to a BP press release. Shareholders are expected to keep the dividend.
Profit results for 2015 plunged by 51 percent to $5.9 billion compared with 2014’s report of $12.1 billion. Fourth quarter results for 2015 were $196 million, down 91 percent when compared to the $2.2 billion reported in the fourth quarter in 2014.
Despite the steep plummet reflected in the fourth quarter results, stockholders are expected to receive dividends. According to BP, a dividend of 10 cents per ordinary share for the quarter will be payable in March.
Negative fourth-quarter results came to no surprise as oil prices have also experienced a dramatic fall. Both WTI and Brent crude oil hit 12-year lows in January as prices steadily declined in the weeks and months preceding 2016. Oil prices increased briefly in the last week of January before decreasing again on Feb. 1.
BP did not go into detail as to which employees will be affected by the massive layoff. According to the press release, 4,000 staff and contractors in the upstream sector and 3,000 in the downstream sector will be affected. The upstream sector includes the search for, recovery and production of crude oil and natural gas. Downstream sector jobs include refining of crude oil and the marketing and distribution of products derived from crude oil.
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