BP'S COMPETITIVE BEHAVIOUR

BP's Competitive Behaviour



BP's Competitive Behaviour

Introduction

BP formerly British Petroleum is an international energy company headquartered in London, United Kingdom. In 2009, BP generated worldwide consolidated sales of 239 billion U.S. dollars and employed 80, 300 people. It is vertically-integrated and is active in every area of the oil and gas industry, including exploration and production, refining, distribution and marketing, petrochemicals, power generation and trading. It also has major renewable energy activities, including in biofuels, hydrogen, solar and wind power. BP has operations in over 80 countries, produces around 3.8 million barrels of oil equivalent per day and has 22,400 service stations worldwide. (Hanig, 2005)

British Petroleum is among the three largest energy companies in the world. Daily BP sells more than 5.8 million barrels of oil, 2.6 million barrels of crude oil and condensate and more than 8.4 billion cubic feet of gas. Annual revenue is more than 262 billion dollars in market capitalization of 224 billion dollars. (Wereley, 2010)



Recent Performance

Key Statistics of the company

In 2005, the company's revenue model for IFRS amounted to 249.5 billion dollars, increasing by 24.8% compared with 2004. Net profit reached 22.4 billion dollars, 18.9% from the previous year. BP has total assets as at 31 December 2005 amounted to 206.9 billion dollars, including current assets - 75.3 billion dollars. Company's own funds amount to 80 billion borrowing - 126.1 billion dollars, of which current liabilities account for 71.5 billion dollars. Net flow from operating activities (CHPOD) in 2005 was at 26.7 billion dollars.

The net outflow from investing activities, which amounted to (1.7) billion, the investment activity of the company was at a significant level. Thus, the company made capital expenditures amounting to nearly 12.3 billion dollars, while actively getting rid of some non-profit companies, businesses and assets - in 2005 it brought the company more than 11.2 billion dollars. Most of the net operating flux was spent on payments to shareholders. Thus, the net flow from financing activities amounted to 23.3 billion dollars, of which more than 19.5 billion dollars were paid to shareholders as dividends (8.2 billion dollars) and through the repurchase of own shares (11.3 billion dollars). Given this volume of net income and equity rate of return on equity is around 20%.

The company's revenue from exploration and production in 2005 was just 47.2 billion, while on the processing and marketing - more than 220 billion dollars. About 28.6 billion company's revenues amounted to revenues from the sale of gas, electricity and jobs in alternative energy sources. At the same time, exploration and production segment brought the company the major share of net profit of $ 15 billion, while refining and marketing - just below 3.2 billion, while gas, electricity and alternative energy sources - no more than 0.6 billion dollars of net profit. (Lawrence, 2005)

In 2010, BP has suffered a loss of $ 4.9 billion, largely because of the cost of responding to the tragedy in the Gulf of Mexico, a total of $ 40.9 billion Company has suffered losses for the first time ...