Statoil, BP Suffer But Reduce Debts

Statoil and BP continue suffering current market conditions, but both managed to decrease net debt in the second quarter.

In their second quarter results, the two majors reported lower profits and revenues with respect to the second quarter of 2014. In particular, BP bore the brunt of geopolitical complexities . 

‘BP today reported its results for the second quarter of 2015. Underlying replacement cost profit1 for the quarter was $1.3 billion, compared with $2.6 billion for the previous quarter and $3.6 billion for the second quarter of 2014. The result reflected the impact of continued low oil and gas prices, a reduced contribution from Rosneft, and one-off charges arising from circumstances in Libya, but also continuing strong earnings from BP’s downstream businesses and lower cash costs throughout the Group’ reads a note released by the UK-based company on Tuesday. 

BP’s net debt was $24.8 billion, $293 million lower than at the end of the first quarter, equivalent to a gearing level of 18.8%. Similarly, Statoil reduced its debt too.

‘Statoil maintained a strong capital structure, and net debt to capital employed at the end of the quarter is reduced to 22.4%’ the Norway-based company wrote on its website.  

On the other hand, its net income for the second quarter was NOK 10.1 billion, compared to NOK 12.0 billion in the same period in 2014.