BP 4Q Underlying Profit Improved Less Than Expected -- Earnings Review
February 02 2021 - 4:34AM
Dow Jones News
By Jaime Llinares Taboada
BP PLC reported results for the fourth quarter and the whole of
2020 on Tuesday. Here's what you need to know:
UNDERLYING REPLACEMENT COST PROFIT: The FTSE 100 oil major
posted an underlying replacement cost profit of $115 million for
the fourth quarter, up from $86 million in the third quarter but
down from $2.57 billion a year earlier. In addition, it came below
the market consensus of $370 million, collected by the company from
26 brokers.
NET PROFIT: BP made a net profit of $1.36 billion in
October-December, swinging from a $450 million loss in the third
quarter and higher than a $19 million profit a year earlier. The
result was mainly driven by a $2.3 billion gain on the sale of the
petrochemicals business. It beat the market consensus of $181.2
million--taken from FactSet and based on seven analysts'
estimates.
WHAT WE WATCHED:
-UPSTREAM AND DOWNSTREAM: The underlying financial performance
of both the upstream --excluding Rosneft-- and downstream divisions
worsened in the fourth quarter of 2020, reflecting lower liquids
and gas realizations, a drop in production, and significantly
weaker gas marketing and trading income.
-DEBT REDUCTION PROGRESS: BP net debt as at Dec. 31 was $38.9
billion, down from $45.4 billion a year earlier. The company
forecast that debt will increase in the first half of 2021 and then
fall in the second half, and continues to expect to reach the $35
billion debt target in the fourth quarter of 2021 or first quarter
of 2022.
Write to Jaime Llinares Taboada at jaime.llinares@wsj.com;
@JaimeLlinaresT
(END) Dow Jones Newswires
February 02, 2021 04:19 ET (09:19 GMT)
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