BP is issuing caveats about results as oil keeps getting cheaper. If it stays cheap, the consequences could be far-reaching
Decreases in oil, gas or product prices are likely to have an adverse effect on revenues, margins and profitability, and a material rapid change, or a sustained change… may mean investment or other decisions need to be reviewed [or] assets may be impaired, says oil group BP in its annual report. A prolonged period of low oil prices may impact our cash flow, profit and ability to maintain our long-term investment programme… and may impact shareholder returns.
The comments may have been written by a lawyer with an overwhelming hatred of the English language, but the sentiments are instructive as we await third-quarter results from both BP and Shell this week both of which will be delivered against the backdrop of the falling oil price.