30 October 2009 | Jake Kanter
Supplier negotiations helped BP post better than expected results last month.
The oil firm reported profits of $4.98 billion (£3.04 billion) for the three months to 30 September, a 50 per cent fall on the same period last year, but higher than forecast.
BP said supplier negotiations were a major part of the cost-cutting effort that contributed to the strong profits. The company had been 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 will make 5,000 redundancies by the end of this year as it has "improved the efficiency of its operations".
As a result of the successful savings efforts, the oil company raised its cost reduction target to $4 billion (£2.4 billion), up from $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 (News, 23 July