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BP Plc Posts RC Loss In Q4; Sees Higher FY18 Production

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British energy giant BP Plc (BP.L,BP_UN.TO,BP) reported Tuesday a replacement cost loss in its fourth quarter, compared to prior year's profit, hurt by charges related to US Tax reforms and Gulf of Mexico Oil Spill. Sales climbed with increased production and prices.

Looking ahead, the company expects first-quarter reported upstream production to be broadly flat sequentially, reflecting continued growth from the 2017 major project start-ups, offset by the expiration of the Abu Dhabi offshore concession and divestment impacts. For fiscal 2018, underlying production would be higher than 2017 due to the ramp-up of major projects.

Group chief executive Bob Dudley said, "2017 was one of the strongest years in BP's recent history. We enter the second year of our five-year plan with real momentum, increasingly confident that we can continue to deliver growth across our business, improving cash flows and returns for shareholders out to 2021 and beyond. At the same time, we are embracing the energy transition, seeking new opportunities in a changing, lower-carbon world."

Further, BP announced a quarterly dividend of 10 cents per ordinary share or $0.600 per ADS, which is expected to be paid on 29 March 2018

In its fourth quarter, BP's replacement cost or RC loss was $583 million, compared to profit of o$72 million last year. RC loss per ADS was $0.18, compared to profit of $0.02 a year ago. Profit attributable to shareholders was $27 million, down from $497 million a year ago.

The latest results included non-operating items of a $0.9 billion charge for US tax changes and a $1.7 billion post-tax charge relating to a further provision for claims associated with the Gulf of Mexico oil spill.

Underlying replacement cost profit was $2.11 billion for the fourth quarter, compared to $400 million a year ago. Underlying RC profit per ordinary share was 10.64 cents, compared to 2.11 cents a year ago. Underlying RC profit per ADS was $0.64, compared to $0.13 last year.

Sales and other operating revenues climbed to $67.82 billion from last year's $51.01 billion.

Upstream production for the quarter was 2,581mboe/d, 18.1% higher than last year. The production reflects the fifth consecutive quarter of growth as well as the highest production since first quarter 2011, the company noted. Underlying production for the quarter increased 11.1%, due to the ramp-up of major projects.

Divestment proceeds were $2.5 billion for the fourth quarter and $3.4 billion for the full year, while it expects divestments to be in the range of $2 billion to $3 billion for the year 2018.

In London, BP shares were trading at 479.15 pence, down 0.60%.

by RTT Staff Writer

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