BP Full-Year Profit Down 9.7% Amid Crude Slide

Oil giant BP has seen its full-year profit drop by almost 10%, amid a global slide in crude prices.

It said the underlying replacement profit for the 12 months ending in December was $12.1bn (£8bn) against $13.4bn (£9bn) in the previous year.

The fall of 9.7% was less than expected by industry analysts.

Its major production partnership with Russia's Rosneft saw a profit decline of almost 15%.

BP said net debt for the company at the end of 2014 stood at $22.6bn, compared with $25.2bn in 2013.

The company, which is still feeling the effects of the Gulf of Mexico oil spill in 2010, said it suffered a fourth quarter pre-tax charge of $477m, taking the full-year total to $819m.

The declining fortunes come as global crude prices have dropped by around half since June.

Chief executive Bob Dudley said the company's focus will now be on "resetting BP, managing and rebalancing our capital programme and cost base for the new reality of lower prices".

On Monday, an oil summit was held in Aberdeen where Scotland's First Minister Nicola Sturgeon described the situation as "very challenging".

Industry leaders called for tax cuts in the sector that employs around 440,000 people across Britain.

BP said it would reduce its global capital expenditure this year to around $20bn, down from a previous estimate of some $25bn.

Rival Shell last week said it would cut its expenditure by around 4.5%, while Chevron said it would slice spending by 13%.

Conoco is cutting expenditure by a third.

Meanwhile, BG Group has announced a decision to write down the value of its business by nearly $6bn in 2014, forcing it to slash its 2015 investment budget by around 30%.

BG, Britain's third largest energy firm, said full-year total operating profit fell by 14% year-on-year in 2014 to $6.5bn.

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