Oil producer BP reported a bigger than expected 13 per cent drop in underlying quarterly profit, as production fell after the group was forced to sell fields to pay for the Gulf of Mexico disaster, offsetting an increase in crude prices.
BP said output would continue to decline in the second quarter as it unveiled plans to sell a number of mature fields in the Gulf.
A spokesman denied the company was making a general pullback from the region, saying the disposals reflected a new strategy of churning assets more quickly and focusing on newer projects.
The London-based group also said it would have to spend more than earlier expected to clean up America’s worst-ever offshore oil spill, although this was offset by a drop in the expected cost of paying out claims after the company agreed a settlement with individuals and firms.
BP said its replacement cost net profit reached $4.93 billion (€3.72 billion) in the quarter, compared with $5.61 billion in the same period last year. – (Reuters)
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