Oil giant BP said today that first-quarter profits slid 62 per cent after oil prices slumped from last summer’s record level.
The decline to £2.39 billion in the first three months of this year came as global oil prices dived below $50 a barrel, compared with the peak of $147 in July.
BP, which last year reported record annual profits of $25.6 billion, said profits more than halved at its exploration and production division, to $4.32 billion.
A year ago, BP and rival Royal Dutch Shell reported first quarter results on the same day and fuelled motorists’ anger over rising petrol prices by reporting a combined surplus of more than $7 billion.
Today’s update from BP was still stronger than market expectations, with the profit figure excluding one-off items coming in at $2.58 billion - stronger than the $2.23 billion forecast in the City.
There was further cheer for shareholders as BP announced a 4 per cent increase in the company’s dividend payment. In sterling terms, the increase is 40 per cent.
PA
Analysts have expressed concern in recent months that, with oil prices falling, the company may be forced to stall dividend growth.