BP’s first quarter profits slip

Profits at oil giant BP have fallen as the costs of the 2010 Deepwater Horizon blast in the Gulf of Mexico continue to affect the firm.

Replacement cost profit for the first quarter from January to March was $5.5bn (£3.33bn) compared with $5.6bn for the first quarter of 2010.

The firm said it had incurred costs of $400m during the quarter as part of its efforts to clean up the Gulf.

BP said the majority of the subsea clean up work had now been completed.

However, BP’s output has dropped in recent months, after the firm sold oil fields and refineries to help pay for the cost of the clean up operation.

US regulators have banned drilling in the Gulf, further restricting the BP’s production levels.