BP’s first quarter profits fall

Profits at oil giant BP have fallen as the costs of the 2010 Deepwater Horizon blast continue to affect the firm.

Replacement cost profit for the first quarter from January to March was $5.5bn (£3.33bn) compared with $5.6bn for the first quarter of 2010.

The firm said it had incurred costs of $400m during the quarter as part of its efforts to clean up the Gulf.

BP’s output has also dropped as the firm has sold oil fields and refineries to help pay for the the clean up costs.

US regulators have banned drilling in the Gulf, further restricting the BP’s production levels.

BP’s accounts for 2010 set aside $41bn to pay for the Gulf spill – two and a half times more than BP’s entire profit in 2009.

The firm says the majority of the subsea clean up work had now been completed.
Source: BBC