BP reports slump in profits

BP has announced a 53% slump in profits

BP has announced a 53% slump in profits, but the oil giant said it continued to steer "a steady course through choppy waters".

The haul of 3.14 billion US dollars (£1.9 billion) between April and June was well down on the 6.75 billion US dollars seen a year ago, a period when oil prices were approaching record high levels.

However, chief executive Tony Hayward said the figure was 30% higher than the first quarter of the year, helped by a 4% rise in BP's daily production to more than four million barrels of oil equivalent in the three months.

He added: "We are in turbulent times, volatile and uncertain.

"But we continue to steer a steady course through choppy waters."

Despite the inevitable impact of falling crude prices on profits, BP has shown signs of progress in turning around years of under-performance, particularly in its refining operation.

Two years into the turnaround programme, Mr Hayward said BP was making good progress in growing its exploration and production business, as well as turning around its downstream operations and improving efficiency.

He added that the company's target for a reduction of two billion US dollars (£1.21 billion) in costs in 2009 had already been exceeded, with a further one billion US dollars (£607 million) saving expected over the rest of the year.

The company reduced headcount by 3,000 last year and is on track for another 5,000 by the end of 2009.

"We will continue to push efficiencies into the group and make sure every dollar counts," Mr Hayward said.