BP profits slump on oil price fall

BP made $3.14bn in the April to June second quarter, well below the figure last year of $6.75bn, when oil was trading at highs. Overall the first half saw profits 57 per cent lower at $5.5bn, earnings were down 53 per cent. The performance will come as a disappointment to the company’s investors, as will the admission by BP that any recovery will take some time to complete. However the maintaining of the dividend at last year’s level of 14 cents will go some way towards placating shareholders.

The price of oil has been bouncing between $60 and $70 this year after reaching a peak of $147 last summer as buyers flooded into the market. There is no indication that there will be any recovery until the global economy starts to recover in earnest.

Chief executive Tony Hayward said of the figures "We are in turbulent times, volatile and uncertain. But we continue to steer a steady course through choppy

waters."

The company’s focus is now on cost-cutting and it confirmed that it is on schedule with its plans, having cut over $2bn in costs so far, with another $1bn to come. 3,000 workers were cut last year and another 5,000 are for the chop by the end of this year.

Poor though they were the company’s results did at least beat consensus estimates. Analysts had expected around $2.8bn in profits.