BP's profits plunge in first quarterTuesday 29 April 2014 08.06
Profits at British energy giant BP plunged in the first quarter compared with one year earlier when the group sold its stake in a Russian joint venture, according to the company.
Net profit stood at $3.53bn (€2.5bn) in the first three months of 2014 compared with profit after tax of $16.863 billion in the first quarter one year earlier, BP said in an earnings statement.
BP - still seeking to reposition itself after the Gulf of Mexico oil spill disaster in 2010 - has since sold its 50% stake in TNK-BP to Rosneft that gave it a near 20% stake in the Russian energy company.
"First quarter 2013 included a $12.5bn gain relating to the disposal of our interest in TNK-BP," the British company said in a statement, explaining the main reason for the heavy fall to net profit.
BP's performance was hit also by a $521m write-off relating to its decision not to develop the Utica shale energy acreage in the United States.
Stripping out the one-off gains and losses, as well as changes to the value of its oil and gas inventories, BP said that profit after tax dropped to $3.22bn in the first quarter - which was also lower compared with market expectations.
Analysts' consensus had been for so-called underlying replacement cost profit of $5.42bn, according to a survey from Dow Jones Newswires.