BP pumps profit fall on slower output

LONDON (AFP) – British oil giant BP reported a drop in net profit for the three months to June on Tuesday, as energy production dropped for an eighth quarter running despite strong world demand for oil and gas.

Net profit on the basis of replacement costs, which excludes the effect of changes in the value of oil and gas inventories, fell by 0.5 percent to 6.087 billion dollars (4.406 billion euros) during the second quarter, compared with the same period in 2006.


The replacement cost figure is closely watched by the market.

BP, the world’s third-biggest energy group, was also hit by a slight fall in average oil prices during the second quarter compared with prices 12 months earlier.

The results were seen as posing a big challenge to the new head of the group, Tony Hayward, who took over in May after the dramatic resignation of chief executive John Browne.

AFP