BP has seen its profits slump by 45 per cent as it continues to grapple with low crude prices and the repercussions from the Gulf of Mexico oil spill in 2010.

The oil giant saw underlying profits of $720 million for the second quarter of 2016, against a $1.3 billion profit in the same period last year.

The company booked a total loss of $2.2 billion for the period, because of a $5.2bn charge relating to the Deepwater Horizon spill. BP said it had now drawn a line under payouts from Horizon. The total cost of the spill now stands at $61.6bn.

Bob Dudley, BP group chief executive said: “We are very pleased to have finally drawn a line under the material liabilities for Deepwater Horizon. We will always be mindful of what we have learned from that tragic accident. BP today is a stronger, more focused and more disciplined company.”