In spite of a 12.5% increase in the price of oil, profits at BP have fallen by $680 million.
BP recorded replacement cost profits of $4.8 billion – a decline of 14% from the same period last year. Profits are expected to continue to fall in the next quarter.
The oil giant was forced to sell some of its oil fields to make reparations for the Gulf of Mexico spill.
Also thought to have contributed to the disappointing profits is Chief executive Bob Dudley’s ‘shrink to grow’ policy, which has seen the business investing in new projects rather than focusing on more mature areas.
Keith Bowman at Hargreaves Lansdown commented on the news: ‘Like rivals Exxon and Chevron, BP has failed to take advantage of the higher oil price. For BP, the Gulf of Mexico accident continues to overhang, with asset sales impacting production.
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