Kate Mackenzie BP profits down, production rises

Falling oil prices have caused BP’s pre-tax first quarter profits to fall by 62 per cent, after adjusting for the effect of changing prices on inventories.

Costs in exploration and production were down 11 per cent, so the company is already driving deflation into its costs as Tony Hayward, chief executive, proclaimed earlier in the year.

Production levels for the first three months of 2009 were 4.02m barrels of oil equivalent per day – 2 per cent higher than BP’s production levels last year, and higher than that produced last year by ExxonMobil, the world’s biggest oil company by market capitalisation, which produced 3.92m b/d

Read more:

Falling oil price hits BP profits (FT, 28/04/09)
BP first quarter results (PDF) (BP, 28/04/09)