BP takes profit hit from oil spill clean-up

BP's profits fell in the first quarter as the firm continued to suffer the impact of the Gulf of Mexico oil spill, which has so far cost the oil major $40.9bn.

Replacement cost profit for the first quarter was $5.5bn (£3.33bn) compared with $5.6bn for the first quarter of 2010, slightly below analysts' expectations.  BP's net cash for operating activities in Q1 plummeted by $5.3bn compared to last year, from $7.7bn to $2.4bn, despite the soaring price of oil. The group said profit has declined by 2% after it was forced to sell off $24bn of assets to pay for the spill, while costs of $400m were incurred during Q1 to clean up the Gulf.  BP's share price is still about a third lower than it was before the Deepwater Horizon disaster. The f...