May 02, 2012, 08.25 AM | Source: Reuters
Oil producer BP reported a bigger-than-expected drop in profits on Tuesday, despite an increase in crude prices, as production fell after it was forced to sell fields to pay for the oil spill.
London-based BP said replacement cost (RC) net profit was USD 4.93 billion in the quarter, compared to usd 5.61 billion in the same period last year.
Stripping out one-off items such as the profit on asset sales, the result was USD 4.80 billion, below an average forecast of USD 5.10 billion from a Reuters poll of nine analysts.
Brent crude prices averaged USD 118.60 per barrel last quarter, up from USD 105.43 in the same period a year before.
RC earnings strip out unrealised gains or losses related to changes in the value of inventories, and as such are comparable with net income under US accounting rules.