Charge of petrochemicals business reorganisation to BP at US$444 mln

29-Oct-14

BP took a US$444 mln non-operating charge on its petrochemicals operations in the third quarter. The charge arose from reorganisation across the petrochemicals business, including write-offs on numerous plants. It was not ascribed to any particular shutdown or event, according to a company spokesman. BP reported a 37% increased in its underlying replacement cost profit before interest and tax for its petrochemicals business in Q3 to US$70 mln. The year-on-year profits increase in the quarter was largely due to margin improvement in the acetyls market. The company reported an underlying replacement cost loss before interest and tax of US$24 mln for petrochemicals in the first nine months of the year, however, which compares with an US$86 mln profit in the same period of 2013. Decrease in the nine months was mainly due to lower aromatics margins resulting from ongoing oversupply in the market.