BP announces 18% profits fall

on 05/02/2013 08:17:43

Profits at energy giant BP fell 18% last year as it continued to count the cost of the fatal Gulf of Mexico oil platform explosion in 2010.

Underlying replacement cost profits at the group were $17.6bn ($12.9bn) in the year to December 31 after BP said the cumulative cost of the incident had reached $42.2bn (€31bn).

It still needs to settle the bill for civil claims but warned it would only be on "reasonable terms", with the trial scheduled to start later this month.

Profits in its fourth quarter fell by a less-than-expected 20% to $4bn (€2.94bn), despite the group being hit with the biggest fine in US history after agreeing a $4.5bn (€3.3bn) penalty with authorities, which it will pay in instalments over five years.

BP said it was still assessing the impact of the terrorist attack at its joint venture in the In Amenas gas site in Algeria last month, but said it was committed to the country, where it has operated for 60 years and intends to resume production when it is safe.