2nd Feb 2016 07:21
LONDON (Alliance News) - BP PLC on Tuesday reported an underlying replacement cost profit that was way below analysts expectations for the last quarter of 2015, causing the oil and gas company's underlying profit for the full year to more than halve.
The FTSE 100 oil and gas company said it made an underlying cost replacement profit of USD196.0 million in the fourth quarter of 2015, way below the USD730.0 million analysts were expecting, according to a market consensus provided by BP.
Replacement cost profit is a standard measure used in the oil industry that takes into account the price of oil, and that USD196.0 million underlying profit is down from USD2.23 billion a year ago and down from USD1.81 billion in the third quarter of 2015.
BP reported a total replacement cost loss of USD2.23 billion in the last quarter of the year compared to a USD969.0 million loss a year earlier.
For the full year, BP reported an underlying replacement cost profit of USD5.90 billion, less than half the USD12.13 billion booked in 2014, but BP swung to an overall replacement cost loss of USD5.16 billion in 2015 from a USD8.07 billion profit a year earlier.
Revenue for the full year came in at USD222.89 billion, falling from USD353.56 billion a year earlier, as BP swung to a pretax loss of USD9.57 billion from a USD4.95 billion profit in 2014.
BP, as expected, maintained its dividend for the year, announcing an interim dividend for the final quarter of the year of 10.0 cents per share.
On Monday, BP promoted Lamar McKay to become the company's deputy to work under Chief Executive Bob Dudley. McKay was the chief executive of BP's upstream division prior to the promotion, with current chief operating officer of production, Bernard Looney, taking over his role.
By Joshua Warner; [email protected]; @JoshAlliance
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