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BP profits slip 12 per cent

06/02/2007

Oil giant BP has announced a drop in profits of 12 per cent in the last three months of 2006 after increased safety spending.

However for the year the company's profits have increased by 15 per cent to $22.25 billion (£11.3 billion).

The increase in safety spending by the oil giant comes after criticism from the US Chemical safety and hazard investigation board (CSB), which has argued that BP was aware of safety problems at the Texas City refinery before the fatal explosion in 2005.

Seen as the worst US industrial accident in over ten years the explosion, caused by flammable vapours igniting, killed 15 employees and injured another 180.

BP group chief executive Lord Browne said: "The fourth quarter result reflects the recent declines in the overall price and margin environment, as well as operational factors and increased safety and integrity investments."

In January BP warned of output difficulties in 2006 caused by the closure of Prudhoe Bay oilfield in Alaska. The oilfield was forced to close in August due to severe corrosion in the transit pipes. Before the closure, Prudhoe produced 400,000 barrels of oil a day.

Lord Browne added: "Our record full-year replacement cost profit and operating cashflow supported the group's capital programme and increased dividends and share buybacks. We remain committed to addressing the recent operational issues while executing our strategy with discipline and focus."

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