BP Chief Executive Officer Bob Dudley notes tough market conditions reflected in weak second quarter results. Photo courtesy of BP.
LONDON, July 28 (UPI) -- Despite taking a major loss as a result of the Deepwater Horizon settlement, BP said Tuesday it would be able to navigate the weak energy market successfully.
BP in its quarterly earnings report said it lost $5.8 billion, which in part was a reflection of the July 2 settlement reached to resolve claims associated with the oil spill in the Gulf of Mexico in 2010. The British company reported also that it earned $228 million from oil and gas exploration, compared with $4 billion year-on-year, reflecting the long slump in crude oil prices.
"The external environment remains challenging, but BP moved quickly in response and we continue to do so," BP Chief Executive Officer Bob Dudley said in a statement.
Crude oil prices are down near record lows for the year and more than 50 percent below the price one year ago. Most companies focused on the exploration and production sector have cut costs and staff further during the second quarter in response to the decline.
BP's quarterly statement reflected a weak global market, noting there was a reduced contribution from Russia and charges associated with simmering conflict in Libya.
Dudley remained optimistic about future prospects in the oil sector, saying his company was positioned well to weather the storm.
"In the past few weeks oil prices have fallen back in response to continued oversupply and market weakness and the recent [nuclear] agreements regarding Iran," he said. "I am confident that positioning BP for a period of weaker prices is the right course to take, and will serve the company well for the future."
BP shares moved up more than 2.5 percent in after hours trading.
