BP profit drops 26%, Total SA down 20% as oil price bites

Profit at France's Total SA fell 20 per cent in the first quarter and profit at U.K.-based BP fell 26 per cent as the dramatic fall in oil prices took its toll.

Total has pulled back capital investment by 10 per cent this year from $26 billion US in 2014.  

It said net profit for the quarter was $2.66 billion, down from $3.34 billion a year earlier.

Total produced 10 per cent more crude in the first quarter of 2015 than it did the same time last year, but it got 50 per cent less for its product, an average of  $53.90 per barrel.

The company said it expected low prices to persist and would cut down on operating costs  as well as investing only in new projects with a low breakeven price.

BP pays for Gulf spill

British Petroleum says first-quarter profit fell 26 per cent to $2.6 billion, compared with $3.5 billion in the same period last year.

It said it was able to realize about $54 a barrel for Brent crude during the period.

BP said it was able to earn more from its downstream business – the refining of petroleum products – and that helped offset losses on oil exploration and other upstream activities – getting energy out of the ground.

"Upstream result was significantly affected by lower oil and gas prices as well as weaker gas marketing and trading and $375 million in costs associated with the cancellation of contracts for two deepwater rigs in the Gulf of Mexico," BP said. 

At the end of the quarter the total cumulative pre-tax charge for its Gulf of Mexico oil spill was $43.8 billion.

BP plans to sell off about $10 billion of assets this year, but will spend $20 billion in new investment.