British Oil and gas major bp plc (BP.L,BP_UN.TO,BP) reported Tuesday wider replacement cost or RC loss in its fourth quarter, despite higher sales amid a weaker oil price environment. Underlying RC profit was in line with market estimates, while top line beat their view.
Further, the company said its board has decided to suspend the share buyback and fully allocate excess cash to accelerate strengthening of balance sheet.
In the overnight trading, bp shares were losing around 3.34 percent, at $37.91.
In the fourth quarter, RC loss was $2.76 billion, compared to prior year's loss of $1.95 billion.
Underlying RC profit was $1.54 billion, compared to $1.17 billion a year ago. Underlying RC profit per share was 10 US cents, compared to 7.36 US cents last year.
Underlying RC profit per ADS was $0.60, compared to last year's $0.44.
The Wall Street analysts on average also expected the company to report earnings of $0.60 per share. Analysts' estimates typically exclude special items.
In the quarter, loss before taxation widened to $1.50 billion from last year's loss of $503 million. Loss per ADS was $1.33, compared to loss of $0.74 per ADS a year earlier.
The latest quarter results reflected a net adverse pre-tax impact of $3.9 billion, compared with a net adverse pre-tax impact of $3.4 billion in 2024.
Adjusted EBITDA, however, grew to $8.96 billion from $8.41 billion last year.
Total revenues and other income dropped to $47.74 billion from prior year's $48.09 billion, due to a $1.04 billion loss from joint ventures. Sales and other operating revenues grew to $47.38 billion from $45.75 billion last year.
The Street was looking for sales of $42.33 billion for the quarter.
Looking ahead for the first quarter, bp expects reported upstream production to be broadly flat compared with the fourth quarter 2025.
In its customers business, bp expects seasonally lower volumes compared to the fourth quarter.
For fiscal 2026, bp expects reported upstream production to be slightly lower and underlying upstream production to be broadly flat compared with 2025.
bp expects divestment and other proceeds to be $9 billion to $10 billion in 2026, including approximately $6 billion from the announced Castrol transaction, all significantly weighted to the second half.
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