Amadeusz Juskowiak

Bp oil raises operating profit

BP Oil Ltd the UK Marketing and refining arm of British Petroleum Co Plc BPL raised its pretax operating profit on a replacement cost basis to 182 mln stg in calendar 1986 compared with 66 mln stg in 1985

Sales and operating revenue fell to 31 billion stg from 42 billion on a replacement cost basis Historical cost operating profit was 61 mln stg up from 16 mln

BP Oil said 1985 profits had been depressed by exceptional items Its profit figures were stated before interest charges

Chief executive David Kendall said improved results mirrored benefits of a restructuring program undertaken in recent years

However he warned future financial pressure on the industry will be severe

The UK Oil marketing and refining industry will need to invest larger sums probably around 500 mln stg a year for a good many years he said in a statement

Reuter