BP First-Quarter Net Profit Slides 18%

Adjusted earnings, which strip out movements in the value of inventories and other non-operating items, sank 12.8% to $4.8 billion, falling short of analyst forecasts.

British energy giant BP PLC (IW 1000: 3) said its first-quarter net profit slumped 18% due to a large accounting provision and falling output that more than offset higher oil prices.

Earnings after tax fell to $5.92 billion (4.46 billion euros) in the three months to March from $7.25 billion in the 2011 period, London-based BP said.

Adjusted earnings, which strip out movements in the value of inventories and other non-operating items, sank 12.8% to $4.8 billion, falling short of analyst forecasts for $5.10 billion, according to Dow Jones Newswires.

Revenues were up 9% to $96.70 billion.

BP said total first-quarter production fell 3% to 3.47 million barrels of oil equivalent per day, hit by asset sales that are aimed at meeting the cleanup bill for the devastating Gulf of Mexico oil spill.

The group has now sold $23 billion of assets as part of its ongoing $38 billion divestment program.

BP's fortunes were ravaged two years ago by an explosion on the BP-leased Deepwater Horizon rig that killed 11 workers, sent millions of barrels of oil spewing into the sea and left it with huge compensation costs.

The blast on April 20, 2010, sparked what was been widely acknowledged to be the worst environmental catastrophe in U.S. history.

BP returned to profit last year with net earnings of $23.9 billion.

Copyright Agence France-Presse, 2012

TAGS: The Economy
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