Member Article

BP witness profit decline

BP has witnessed a sharp decline in profits in Q2 of the year, following cuts in the value of a number of key assets.

A replacement cost profit, which strips out the effects of oil price movements, of $238 million (£151 million) was registered between April and June, in comparison with profits of $5.4 billion in 2011.

The oil giant was forced to cut the value of US shale gas assets and a number of refineries, while profits were also reduced by the decision to suspend the Liberty offshore oil project in Alaska.

Despite these one-off factors, profits were still lower due to weak global oil prices and a fall in the price of natural gas in America.

BP chief executive Bob Dudley said: “We recognise this was a weak earnings quarter, driven by a combination of factors affecting both the sector and BP specifically.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .