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BP suffers heavy losses amid oil price fall

BP has announced a drop in profits Credit: PA

BP has reported a £3.6 billion ($5.2 billion) annual loss for 2015, its largest in 20 years, and announced a further 30,000 job losses, following substantial writedowns and amid a collapse in the oil price.

The oil giant recorded a a £1.5 billion ($2.2 billion ) loss in the fourth quarter of last year, and said that underlying replacement cost profits - a key measure watched by financial analysts - dropped to £136 million ($196 million), well short of expectations.

Underlying profits for last year more than halved to £4.1 billion ($5.91 billion), but the company protected its dividend to shareholders.

The oil giant's figures come as oil prices hit a 13-year low earlier this month.

Bob Dudley, chief executive for BP group, said the company was attempting to "adapt and rebalance", amid challenging conditions.

We're making good progress in managing and lowering our costs and capital spending, while maintaining safe and reliable operations."

– Bob Dudley, BP group chief executive