BP profits slide 24 per cent

Energy giant BP has announced a 24 per cent year-on-year drop in quarterly profits in the final quarter of last year.

BP said its profits in the last three months of 2008 were $2.587 billion, 74 per cent lower than the previous quarter.

The group said an unexpected $700 million loss at joint Russian venture TNK-BP was to blame for the diminished profits.

Tony Hayward, chief executive, said BP still recorded annual profits of $25.593 billion, a rise of 39 per cent on the previous year.

But he admitted that the group would continue to cut jobs, with 5,000 posts to go by the summer.

"In the current climate we especially need to maintain the momentum we have established in the drive to make BP more efficient," Mr Hayward said.

"The mantra in BP today is: 'Every dollar counts, every seat counts'."

BP, like all oil companies, has been stung by the falling price of oil. Last summer a barrel was worth $150, but now the value is less than a third of that.