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Oil giant BP reports $3.2bn profits | Oil giant BP reports $3.2bn profits |
(about 4 hours later) | |
Oil giant BP has reported a 23% drop in profits to $3.22bn (£1.92bn) for the first quarter of 2014. | |
The underlying replacement cost profit figure, which strips out the effect of oil price movements, compared to profits of $4.22bn recorded in the same period in 2013. | |
But the latest figure was still ahead of analyst forecasts. | |
BP also said it would increase its dividend by 8% to 9.75 cents a share - the second increase in six months. | |
BP said its first quarter results had been affected by lower production and write-offs in its exploration activity, including $521m from a decision not to proceed with a shale project in Utica, in the U.S. | |
The company said it expects production to edge even lower in the second quarter. | |
Compensation and legal costs relating to the 2010 oil spill in the Gulf of Mexico had not risen in the quarter and remained at $42.7bn, BP added. | |
Russia sanctions | Russia sanctions |
BP's profits, compared to the previous quarter, were also hit by a falling contribution from its 20% stake in Russia's Rosneft. | |
On Monday BP said it would not sever its ties with the Russian energy firm, despite Rosneft's chief executive being the target of another round of US sanctions. | |
Igor Sechin is on a list of individuals thought to be in Vladimir Putin's "inner circle", whose assets will be blocked in the US, following Russia's intervention in Crimea and Ukraine. | Igor Sechin is on a list of individuals thought to be in Vladimir Putin's "inner circle", whose assets will be blocked in the US, following Russia's intervention in Crimea and Ukraine. |
But BP said it would continue to work with the company, despite the sanctions, which prevent US companies from engaging with those named. | But BP said it would continue to work with the company, despite the sanctions, which prevent US companies from engaging with those named. |
Mr Sechin has said sanctions imposed on him will not affect Rosneft. | Mr Sechin has said sanctions imposed on him will not affect Rosneft. |