LONDON: British oil giant BP, whose profits soared during the third quarter, may cut 2,500 jobs or nearly nine per cent of its European refining and marketing divison as part of a confirmed restructuring programme, a spokewoman said.
“There is a reorganisation project at the moment which is in the very early stages,” the spokeswoman said.
Commenting on an earlier report from Germany, she said there would be a “maximum” of 2,500 job cuts that would take effect “right across Europe”.
“It’s streamlining in order to be more efficient,” she said, adding that BP was “in the process of going through with appropriate consultations”.
The cuts would be implemented over the next two years, according to AFX News, AFP’s financial news wire service.
A BP spokesman told AFX that “the refining and marketing business is very competitive” as “European markets are very mature”.
“Companies are competing for what growth there is available.
There is a definite pressure on our business to create a right organisation to approach this kind of market.” BP’s European refining and marketing unit currently employs 28,000 people, with the under-threat jobs accounting for some 8.9 per  cent.
Details emerged the same week that BP posted a surge in third-quarter net profit to $4.41 billion, as record energy prices helped to offset production damage caused by recent US hurricanes Katrina and Rita.
Third quarter net profit, excluding gains from the value of its crude oil inventories, increased by 16 per cent when compared with the $3.79 billion BP earned during the third quarter of 2004.
Profits at the Refining and Marketing division, meanwhile, swelled 41 per cent to a record $1.858 billion in the third quarter from $1.318 billion in 2004.
Following publication of the results, BP chief executive John Browne had said that high oil prices and refining margins were likely to continue to underpin the group’s future performance.
Oil prices reached a historic high point of $70.85 per barrel on August 30, the day after Hurricane Katrina had battered oil facilities in the US Gulf of Mexico.
However, crude futures have eased significantly in recent weeks on signs of weakening demand and a build-up in petroleum reserves in the United States, the world’s biggest energy user.                              – AFP
Last update on: 30-10-2005