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BP Q4 profit slumps to $2.8B

  • BP's (BP) Q4 underlying replacement cost profit - which strips out the effect of oil-price movements - dropped to $2.8B from $3.9B a year earlier but met analyst forecasts.
  • Underlying pretax replacement cost profit at BP's upstream segment fell to $3.9B from $4.4B.
  • The decline in profits was mainly due to asset sales, weaker refining margins, and higher depreciation and exploration write-downs.
  • Production excluding Russia -1.9% to 2.25M barrels of oil equivalent a day, although underlying output rose 3.7%. BP expects the latter metric to rise this year but overall output to fall.
  • The refining marker margin slumped to $11 a barrel from $18.7 a year earlier.
  • The provision to cover the Deepwater Horizon oil spill rose slightly to $42.7B from $42.5B.
  • Net debt $25.2B vs $27.5B.
  • "The result benefited from higher underlying production and a one-off credit to production taxes," BP said. (PR)
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Comments (6)
  • ploppo
    , contributor
    Comments (3) | Send Message
     
    hmm not as good as some predicted, but the main question still lurks: How much more will have to be thrown at Macondo?
    4 Feb 2014, 04:13 AM Reply Like
  • june1234
    , contributor
    Comments (3257) | Send Message
     
    37% drop in profits , refining margins down, production expected to fall going forward
    4 Feb 2014, 08:59 AM Reply Like
  • daphnex2
    , contributor
    Comments (130) | Send Message
     
    Well, I'll still continue to reinvest the dividends.
    4 Feb 2014, 12:37 PM Reply Like
  • LongT
    , contributor
    Comments (10) | Send Message
     
    I keep accumulating shares on dips. I expect to see this @ $70 by 2016.
    4 Feb 2014, 04:22 PM Reply Like
  • Me_not_you
    , contributor
    Comments (253) | Send Message
     
    I agree with LongT; I think USD70 by 2016 is likely.
    There is nothing that was unexpected in today's earning call.
    Albeit, I wish they had less of a drop, but this is the industry.
    I think 2014 will be harder on the entire industry if oil stays at USD90 - 92, instead of the budgeted USD100.

     

    Long BP and the sector as a whole.
    4 Feb 2014, 05:22 PM Reply Like
  • Elz4107
    , contributor
    Comments (272) | Send Message
     
    To Long T: Also long BP, but depending on the Gulf outcomes and BPs dividend policies and the trend in interest rates you are just as likely to see under $40 per share. Could go either way. Sorry to rain on your parade, but be cautious.
    9 Feb 2014, 05:28 PM Reply Like
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