BP New Zealand report a 70% drop in annual profit for 2014

BP New Zealand reported a 70% slump in their annual profit for 2014, making it their lowest earnings in more than a decade, reported NZ Herald.

New Zealand´s fuel distributor saw their net earnings collapse due the falling oil prices during 2014 that diminished the value of their large inventory.

In 2013 BP New Zealand announced net earnings of $102.4 million. A year later, their net profit has fallen to $30.3 million, while their sales revenues had kept a steady pace at $3.3 billion, according to the company´s financial statements.

Las year´s net earnings are the smallest since 2003, when BP had an annual revenue of $1.74 billion.

2015 has also seen BP´s competition steep with Z Energy recently acquiring all Caltex assets from Chevron New Zealand in a deal worth $785 million, gaining 146 Caltex gas stations, 73 truck fuelling stations and a million-barrel inventory, as reported by PetrolPlaza. With this acquisition Z Energy overtake BP as the biggest distributor in the country with an estimated 49% share of the market.

BP currently employ over 3,000 people across the country in all their company branches, and operate a network of over 200 service stations, two thirds of which are owned and operated by local entrepreneurs, according to company data.