Shares in oil giant BP fall as it posts $999m annual loss

Feb 08, 2017, 00:25
Shares in oil giant BP fall as it posts $999m annual loss

On an underlying basis, fourth-quarter replacement cost profits more than doubled to 400 million U.S. dollars (£322 million) from 196 million United States dollars (£158 million) a year earlier.

Oil giant BP plc (BP.L,BP_UN.TO,BP) reported Tuesday a profit in its fourth quarter, compared to last year's hefty loss, benefited from higher oil prices and significantly lower costs.

BP narrowed its loss last year and expects recent acquisitions in Abu Dhabi and Egypt to help grow its output again after a long period of retraction following the Deepwater Horizon disaster seven years ago.

Stripping out these and one-off costs, annual profits were well down on 2015 as BP battled the "challenging" price environment for oil - which averaged $44 a barrel for the year. This helped annual losses improve from the mammoth 5.2bn USA dollars (£4.2bn) loss posted in 2015, which was its worst result for at least 20 years.

"BP needs oil to fetch $60 a barrel this year to effectively break even, and with Brent now trading at around $56, it is still dependent on fair winds from the commodity markets to push it along", Laith Khalaf, senior analyst at Hargreaves Lansdown stockbrokers, said in reaction to yesterday's results update.

"Continued tight discipline on costs remains essential", Bob Dudley, BP group chief executive, said in the accompanying press release.

The company, whose fourth-quarter profits fell short of street expectations, had previously targeted a breakeven oil price of $50/bbl to $55/bbl.

The British oil giant also delivered some surprising news when executives said Tuesday that the company now needs oil prices of about $60 a barrel to balance its spending and cash flow, up from the $50 to $55 a barrel they had previously indicated, after a series of acquisitions late previous year. Everything we have done during the year has made us a more resilient and competitive company. The oil major said this year's results included a total of $4bn non-operating charges relating to the 2010 Gulf of Mexico oil spill.

The results differentiate BP fro competitors including Royal Dutch Shell and Exxon Mobil, who are now breaking even, with BP unlikely to achieve this status until the end of the year.

Laith Khalaf, senior analyst at Hargreaves Lansdown, said BP's performance and the 7% yield on its shares showed the company was "still dependent on fair winds from the commodity markets to push it along".

Shares fell on the fourth-quarter earnings disappointment.

Dudley added: "With our Deepwater Horizon financial liabilities now substantially behind us, BP is fully focused on the future".

YOU MIGHT ALSO LIKE
  • Sam Allardyce's Sunderland reunion a forgettable one as Crystal Palace get hammered

    Sam Allardyce's Sunderland reunion a forgettable one as Crystal Palace get hammered

    We made a couple of chances in the first half, but we need to try to get a situation where we are creating more chances. We've got to make sure we're not too far away that the run wouldn't have an effect.

    Washington state suing Trump over immigration order

    Along with Washington State, the ACLU and CAIR have also filed lawsuits in response to Trump's executive order. Ferguson argues that the Executive Order violates the U.S.

    The Hawks and Knicks played insane 4 OT Basketball Game Sunday Night

    Westbrook plays alongside the second youngest roster in the National Basketball Association with Kevin Durant in Golden State now. Knicks guard Derrick Rose left the game with a sprained left ankle midway through the third quarter and didn't return.
  • Someone Broke Into Nicki Minaj's Home and Stole $175000 Worth of Property

    Someone Broke Into Nicki Minaj's Home and Stole $175000 Worth of Property

    In his response to her home burglary, this is what he said about that "I wonder if they took the slides I bought her". Nicki Minaj's home in the Hollywood Hills has been burglarized, Los Angeles Police announced Friday.
    Snapchat Owner Seeks $3B In IPO

    Snapchat Owner Seeks $3B In IPO

    As is the nature of these kinds of filings, Snap has to admit that it "may never achieve or maintain profitability." Hmm. The company's chief executive is 26-year-old Evan Spiegel, and its chief technology officer is 28-year-old Bobby Murphy.
    Lowry and the Raptors beat the Pelicans

    Lowry and the Raptors beat the Pelicans

    Winning in Boston on a back-to-back is no gimme, but Toronto proved on December 9th that they're capable of just that. The Raptors scored the first eight points of the third quarter, including 3-pointers by Patrick Patterson and Lowry.
  • Sasikala to be next Tamil Nadu CM: Events as they unfolded

    Sasikala to be next Tamil Nadu CM: Events as they unfolded

    In December a year ago , four state ministers had asked Sasikala to become the Chief Minister, besides AIADMK General Secretary. The Chief Minister's Office, the official said, is preparing to call a conference of all district collectors and police chiefs.
    Ralph Lauren Corporation (NYSE:RL)

    Ralph Lauren Corporation (NYSE:RL)

    The Next Year EPS growth is 1.3%, Long term annual growth estimate of 6.87%, Annual EPS growth past 5 years of -6.95 percent. Ralph Lauren Corporation (NYSE:RL) announced that Stefan Larsson , President and CEO, will depart from the company on May 1.
    Tuesday was busiest day on N.Y.'s Obamacare exchange

    Tuesday was busiest day on N.Y.'s Obamacare exchange

    Numerous reforms the Legislature included in the Medicaid law it passed previous year depend on parts of the Affordable Care Act. About 16,500 North Country residents gained health-insurance coverage as a result of the Affordable Care Act, Dr.
  • 21st Century Fox Earnings Rise Amid Strong Results From Cable Networks

    21st Century Fox Earnings Rise Amid Strong Results From Cable Networks

    But the stock was ranked Underweight by 1 of analysts in current phase while overall the consensus rank was for Overweight. After the closing bell, Fox said adjusted earnings were 53 cents per share, above analysts' projected 49 cents per share.
    Brady, beer and chicken wings it's Super Bowl time

    Brady, beer and chicken wings it's Super Bowl time

    Usually, the Patriots suss out their opponent and strike in the second quarter, but the Falcons can keep them off the field. Last year, the Broncos had Von Miller, who terrorized Brady and then terrorized Cam Newton en route to a Super Bowl MVP.
    Small group protests Bank of America's funding of Dakota Access Pipeline

    Small group protests Bank of America's funding of Dakota Access Pipeline

    The main protest camp has dwindled to several hundred after the Standing Rock tribe asked activists to leave when the U.S. The Canadian-owned Keystone XL pipeline was also approved by the executive order.
popular