BP Q4 profit slumps to $2.8B

|About: BP p.l.c. (BP)|By:, SA News Editor

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)