BP profits fall by nearly 40%

Bitterwallet - BP redesigned logo BP have confirmed that their profits have dropped by 39% and this is thanks to falling oil prices. Do you feel sorry for them? We suspect not. They're still absolutely loaded, of course.

This performance comes on the back of a drop of 60% in world oil prices since last summer, and while BP have made some ground back on that, the whole industry is looking at ways of saving money, which means cutting back on 'non-core operations'.

Chief executive Bob Dudley said: "We are resetting and rebalancing BP to meet the challenges of a possible period of sustained lower (oil) prices. Our results today reflect both this weaker environment and the actions we are taking in response."

BP's woes were solidified thanks to their exposure to sanctions-filled Russia (thanks to their 20% stake in Rosneft), with profits from Russia's largest oil company dropping by 65%. Oh, and let us not forget that BP have a $332m charge hanging over them thanks to their part in the Gulf of Mexico disaster five years ago.

However, it is the price of crude oil that's giving them a kicking. Last year, BP could charge $108 per barrel, while now, it is more like $54.

Dudley continued: "We are continuing to progress our planned divestment programme, we are resetting our level of capital spending, and we are addressing costs through focusing on simplification and efficiency throughout BP."

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