BP has reported a sharp fall in profits for the three months to the end of June as lower oil prices continue to hurt.
Underlying replacement cost profit (RCP) was $US1.31billion ($F281b) compared with $US3.63b ($F778b) a year ago.
However, after setting aside $US7.5b ($F16.09b) for further costs relating to the 2010 Deepwater Horizon oil spill disaster, BP recorded a loss of $US6.26b ($F13.43b).
On July 2, BP reached an $US18.7b ($F40.12b) settlement with the US Department of Justice (DoJ) over the oil spill.
BP said it was setting aside $US9.8b ($F21.02b) in the quarter for costs related to settlements with the DoJ and 400 local governments in relation to the oil spill, which became one of the worst environmental disasters in US history and claimed the lives of 11 people.
The results come at a time of continuing uncertainty for oil companies, with oil prices more than 50 per cent lower than last year.
Brent crude oil stood at $US52.93 ($F113) a barrel on Tuesday, compared with roughly $US115 ($F246) a year ago.
The lower oil price is not only hurting the profits of the major oil firms, but also means they have cut back on investment in exploration in areas where they consider it makes little economic sense to drill.
