BP first quarter profits dip 18 per cent as output falls | Irish Sun

BP first quarter profits dip 18 per cent as output falls

Irish Sun Tuesday 1st May, 2012

• The first quarter profits of $4.8 billion is an 18 per cent dip compared to $7.25 billion in the corresponding 2011 quarter

• British energy major reported a 6 per cent decline in oil and gas production to 2.45million barrels of oil a day

• To pay for clean-up compensation costs BP has so far raised $23 billion out of the target of $38 billion

LONDON - British energy major BP, is still feeling the impact of the disastrous Gulf of Mexico oil spill and the consequent asset disposal programme, which has led to a dip in oil producing assets and thereby a hit in profits despite soaring global oil prices, the company admitted Tuesday.

BP's underlying profits were $4.8billion (2.95billion pounds) in the first three months of 2012, lower than market expectations of $5 billion, and a dip compared to $4.98billion (3.06billion pounds) profits in the previous quarter. The first quarter profits this year were an 18 per cent dip compared to $7.25 billion in the 2011 first quarter.

The group reported a 6 per cent decline in oil and gas production to 2.45million barrels of oil a day as its programme of asset disposals since 2010 climbed to $23billion (14.2billion pounds).

Brent crude oil prices averaged $118.60 a barrel in the past quarter, up from $105.43 a year before.

In order to pay for the clean-up and compensation costs from the Gulf of Mexico incident BP is aiming to sell off around $38 billion of its non-core assets by the end of next year; so far it has managed to raise $23 billion. Currently on the block are five of its fields in the Gulf of Mexico.

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