The chief executive of Europe’s second-largest oil company, BP, stated Tuesday that he sees company costs falling “$1 billion more than expected” by year-end after a two-year campaign to cut expenses by $2 billion.
Chief exec Tony Hayward, whose first promise was to streamline company operations, said $2 billion in costs had already been cut in 2009 by simplifying the corporate structure with more specialists at the operational tip.
"Based on this strong progress, we can expect cash costs for the full year to be down by more than $3 billion compared with 2008," he was quoted as saying. His comment is line with similar remarks made by Royal Dutch Shell and StatoilHydro leadership, where controlling expenses and a crisis-induced "cascade" in supplier costs have been cited.
Net cash from operations was steady year-on-year at $6.8 billion, as tax rates remained an overall 35 percent on average.
Hayward was scheduled to speak late in the London business day to discuss Tuesday’s financial result.
Tags:
BP PLC,
Royal Dutch Shell plc,
StatoilHydro
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