BP and Total outspent their operating cash flows last quarter and their profits plummeted, as the average oil price fell to its lowest in any quarter in 12 years. Cost savings, investment cuts, asset sale proceeds and a solid downstream performance helped limit the impact. But further spending reductions may be needed before the companies can get back into a position of balancing cash coming in and cash going out. BP has revised its capital expenditure (capex) guidance. The firm earlier this year said capex would be $17bn-19bn/yr in 2016-17, with spending this year at the lower end of the range. Its new guidance is $17bn for 2016, potentially falling to $15bn-17bn next year if lower oil prices persist.
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