BP profits dip 35%

By Jonathan Barlow

BP has announced that its profits dipped by 35 per cent in the second quarter of 2012.

Its underlying profit was £2.35 billion for the period, which is significantly down on the £3.62 billion recorded in 2011.

The figure is also lower than the £3.05 billion profit the oil giant took in the first quarter of this year.

Chief executive of the BP group Bob Dudley said that the effects of price movements severely impacted the organisation's earnings in the quarter.

A pre-tax charge of £540 billion was taken in Q2 as a result of the need to increase provision for a range of costs and litigation relating to the Gulf of Mexico oil spill.

"We recognise this was a weak earnings quarter, driven by a combination of factors affecting both the sector and BP specifically," Mr Dudley commented, adding that near-term results are being affected by an extensive turnaround and maintenance programme.