BP says first-quarter profit fell 26 percent in the wake of the sharp drop in oil prices.

The company says Tuesday that net income for the quarter was $2.6 billion, compared with $3.5 billion in the same period last year.

BP says the company is "rebalancing" its business to meet the challenges of sustained lower prices. The price of Brent crude, the benchmark for North Sea oil, averaged $54 a barrel in the first quarter, half the level of a year earlier.

CEO Robert Dudley says the results "reflect both this weaker environment and the actions we are taking in response."