BP Reports Lower Profits on Falling Oil Prices

BP has reported lower profits and says it will cut spending on exploration because of the fall in oil prices.

Underlying profits in the final three months of 2014 were down 20% on a year earlier at $2.2bn (1.5bn). For the full year, profits fell 10% to $12.1bn.

The oil giant also said it would be cutting capital expenditure plans by $4bn-$6bn this year.

BP’s share price is down 16% since last summer due to lower oil prices, which have fallen 50% in the past six months.

Separately, fellow UK energy company BG Group said it was writing down assets worth almost $6bn due to the weaker oil price.

via BBC