BP results set to be ‘dreadful’

Tony Hayward, BP’s new chief executive, has prepared staff for a far-reaching shake-up of the oil company as he delivered a blunt warning that third-quarter revenues would be “dreadful”.

Mr Hayward told a staff meeting in Houston he would be announcing a streamlining of the company’s organisation next month, the Financial Times has learnt. He said that BP’s financial performance was at its lowest since 1992-93.


The remarks were made to a “town hall” meeting and summarised by a BP manager in a note circulated to colleagues under the heading “BP Confidential”.

Mr Hayward’s prediction of a “dreadful” third quarter comes as analysts prepare for downbeat results in spite of record high oil prices.

BP has been suffering from well-publicised problems including a squeeze on refining margins and falling US natural gas prices, as well as operational hold-ups such as damage to a North Sea gas pipeline.

Financial Times