FINANCIAL ANALYSIS OF THE BRITISH PETROLEUM COMPANY PLCINTRODUCTIONThe paper discusses the British Petroleum Company PLC, based in Britain, as the company to be assessed. As a new stock analyst, a group of investors can given the advice on investing in the British Petroleum Company PLC after careful financial analysis of the company. The British Petroleum Company PLC which was formerly the Anglo-Persian Oil Company (APOC) is providing worldwide services in Africa, North and South America, Australia, Europe and Asia. Their head offices are found in Europe particularly in London, the United Kingdom and in England. Most of the companies resources are coming from the Caspian Sea, Mediterranean Sea and in the Gulf of Mexico.
They also have their operations off shore specifically in Angola, Azerbaijan, Trinidad, Algeria, Alaska and the famous BTC pipeline or the Baku-Tbilisi-Ceyhan or the BTC pipeline running through Azerbaijan, Georgia, and Turkey to the Ceyhan Marine Terminal. HistoryIn 1901, William Knox requested the then Iran president to search for the oil. In 1908 they found the oil and form that time the British petroleum firm came into existence. It was in 2000 that the name was changed to the British Petroleum Plc.
Its logo was made green and the yellow sunflower pattern. It became controversial as the emblem of the company’s alternative and environment-friendly awareness. However, the green logo did not matter to people because it was listed as one of the “ten worst corporations” in 2001 and 2006.In 1992, the Greenpeace International named the company as one of Scotland’s largest polluters. It was during this time that the BTC pipeline was condemned for the company’s human rights, environment and safety violations.
Together with the Royal Dutch/Shell or RD, the BP was also assessed to be responsible with most of the climate change due to the oil industry. Although it provides various services and products, it is still bound to have problems and controversies. Last March 2005, BP's Texas City Refinery in Texas City – one of the largest refinery in the United States and in the world – had an explosion due to an unidentified ignition source injured where almost 100 people and led to death of 15 people including those who are working at BP.
On March 2006, a leak in one of BP’s pipelines found on the North Slope of Alaska caused an oil spill in the tundra of the region. The incident led to the replacement of the federally regulated Oil Transit Lines (OTL's) in Alaska. Another unpleasant incident last August 2006 which led to the shutdown in the oil operations of BP in Prudhoe Bay. The shutdown decision was made because of corrosion in their pipelines. This event would eventually cause a reduction of 400,000 barrels per day and the increase of oil price. Recently, the Alaska Department of Environmental Conservation stated that the Prudhoe Bay oil field discharged toxic spill of methanol combined with crude oil and water spilled into the tundra which may poison the ecosystem in that location. The firm deals in world top six supper products.
It is the largest private sector petroleum firm dealing with 115,000 employees. Other controversies that happened to BP were the controversial contribution to politics and to political campaigns. They were also criticised due to the rise of fuel prices in the United Kingdom.