29 October 2009 | Jake Kanter
Supplier negotiations helped BP post better than expected results.
This week the oil firm reported profits of $4.98 billion (£3.04 billion) for the three months to 30 September. It represented a 50 per cent fall on the same period last year, but was higher than analysts had forecast.
BP said supplier negotiations were a major part of the cost-cutting efforts that contributed to the strong profits. As reported, the company was in negotiations with UK and US suppliers earlier this year to reduce costs on some commodity contracts where prices had fallen (News, 19 February
"We're always looking at costs and will continue to work with suppliers to make cuts in the future," said BP.
The company has also improved the efficiency of its operations and will make 5,000 redundancies by the end of this year.
As a result of successful savings efforts, the oil company raised its cost reduction target to $4 billion (£2.4 billion), up from the $3 billion ($1.8 million) set out in July.
Earlier this year, a BP procurement team directly achieved $20 million (£12.2 million) savings in the past two years and contributed to at least $690 million (£420 million) more in 2008.
The eight-strong team, in refining and marketing, made savings through improved market intelligence (News, 23 July