BP Profits Dry Up Amid Asset Restructuring
Oil giant BP has seen its full-year pre-tax profit drop by more than 21%, amid a restructuring of its assets.
It said operating profit for the 12 months to the end of December was £8.2bn, compared to £10.5bn the previous year.
Profit in the last three months of 2013 fell by 28%, to £1.7bn. The Q4 profit in 2012 was £2.4bn.
The company said the figures were affected by its "major divestment programme" of asset selling, along with weaker refining margins.
It added that exploration write-offs added to the drop.
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BP, the world's fourth biggest oil firm, said key regions continue to be the North Sea, Angola and the Gulf of Mexico.
Its results are in keeping with the wider industry malaise, where slow profit growth and rising costs have affected the bottom line.
Exxon Mobil, the world's largest publicly traded oil company by value, reported below-expected quarterly profit last week, while Chevron and Shell issued January profit warnings.
BP has also been forced to deal with the environmental, political and economic impact after the Gulf of Mexico oil spill, which killed 11 men.
Before the Deepwater Horizon disaster, which began in April 2010, BP was worth £120bn.
It now worth £87bn - a loss of value of 27%.
The firm said the provision to cover the spill's clean-up, fines, compensation and legal costs had risen to $42.7bn (£26.2bn) from $42.5bn (£26bn) the previous year.
The company added that the Rosneft deal, which BP put its Russian business into the state-controlled firm in exchange for a 19.75% stake, injected £675m into the overall profit.
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