BP reports "staggering" profits of $25.4 billion

A telling development below, partly a consequence of the leap in oil prices. And what's that point there? Besides the wealth of oil under Iraq, guess who sits on a 10th of the world's oil... what do you know, Iran! Oh what a surprise.


The Sunday Times: Browne admits 'staggering' amounts of cash flowing at BP
by Dan Box
January 23, 2005

LORD BROWNE, chief executive of oil giant BP, has described his company’s performance as “staggering” as he prepares to unveil record profits for a British company.

City analysts expect BP to report pre-tax profits next month of $25.4 billion (£13.5 billion), a rise of about 47% on the previous year.

The bumper figures will dwarf both the £9.2 billion pre-tax profit that the oil group announced for 2003 and the £9.6 billion that HSBC, Britain’s largest bank, is expected to reveal in March.

The increase, which reflects the impact of record oil prices, means the company made about $69.6m (£37.1m) of profit a day.


The Sunday Times: On top of the world
by Dan Box
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A few years ago — before the World Trade Center attacks of 2001 — Browne and BP were readying themselves to enter Iran, which sits on almost a tenth of the world’s oil. Now, he regards this as impossible.

“Right now it is impractical for BP, because 40% of BP is in the US and we are the largest producer of oil and gas in the US,” he said. BP currently produces a third more American indigenous oil and gas than its nearest competitor, and that share is growing. “Politically Iran is not a flyer,” he said. “One day I hope it is.”

-- snip --

In the meantime, Browne worries about the public perception of companies and intends to improve the image of the corprate world. “People say that companies put making money above everything — they will do anything to increase their value — that they are of no value to society,” he said. “The best way to do business is to consider the mutual advantage between the company and the people you touch.”