BP profits fall for first time in two decades

BP profits fell for the first time in almost two decades following the Gulf of Mexico disaster, according to figures out today (February 1).

The oil and energy giant has announced a full year loss of £3.1 billion in the year up to December 31.

In the same period last year BP posted profits of £8.7 billion in 2009, revealing the true cost of the oil spill for the first time.

However, BP also said today it plans to resume the payment of quarterly dividends, which were suspended in June 2010 following the oil spill, at a rate of 7 cents a share.

In an update to investors later today, BP group chief executive Bob Dudley is due to confirm his immediate priority is to complete the process of ’embedding world-class safety’ and ‘operational risk management’ at the heart of the group’s approach to all its activities and throughout all its operations.

He will also reconfirm BP’s commitment to meet all of its obligations arising from the Gulf of Mexico oil spill.

Mr Dudley plans to say: “2010 will rightly be remembered for the tragic accident and oil spill in the Gulf of Mexico and it is clear that as a result BP is a company in transition.

“I am determined that we will emerge from this episode as a company that is safer, stronger, more sustainable, more trusted and also more valuable.

“2011 will be a year of recovery and consolidation as we implement the changes we have identified to reduce operational risk and meet our commitments arising from the spill.

2But it will also be a year in which we have the opportunity to reset the company, adjusting the shape of our business, and focus on growing value for shareholders.”

Luke Walsh

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