By Jonathan Davies

Oil giant BP has reported a 20% fall in profits as a result of oil prices, and announced huge cost cutting measures.

Underlying profits for the final three months of 2014 were down 20% to $2.2bn (£1.5bn), with full year profits down 10% to $12.1bn.

BP attributed the majority of the fall to oil prices which have lost around 60% of their value since summer 2014.

It led to the oil giant announce that it was cutting capital expenditure by $4-6bn in 2015 alone.

"We have now entered a new and challenging phase of low oil prices through the near and medium term," said BP chief Bob Dudley.

BP shares have fallen by 16% since last summer when oil prices start their decline.

BP wrote down $3.6bn of assets and expects to sell off a total of $10bn assets.

Join us on
Follow @freshbusiness