Thousands of BP Jobs Cut As Q4 Profits Slide

BP has announced it is to cut 5,000 jobs after reporting "very disappointing" profits due to losses in its refining and marketing operations.

The company says the jobs represent about five percent of its total global workforce.

The cuts follow BP's reported fall in profits by 24 percent with fourth-quarter replacement cost profit at US$2,972m, compared with $3,895m a year ago.

For the full year, replacement cost profit was down 22 percent from US$17,287m compared with US$22,253m.

The figures contrast sharply with Shell's record European fourth quarter profits announced last week.

BP says its refining profits have been squeezed and two of its US refineries have seen output reduced but hopes to build up capacity this quarter.

"Although our fourth-quarter profits were very disappointing in refining and marketing in particular, we made good, step-by-step progress in bringing new oil and gas fields on stream and rebuilding refining capacity during the period," says BP's Chief Executive Tony Hayward.

Despite falling profits, BP raised it fourth quarter dividend by 31 percent.

Dividends have been used to return value to shareholders instead of reducing the number of shares in circulation.

Last week, US based-major Exxon Mobil saw yearly profits of US$40.6bn, a record for a US company.

By Ozge Ibrahim