BP experience a fall in share price as they announce Q4 results

BP service station and M S Cockfosters 02BP's share price fell by 2.4 per cent on the morning of 7 February as it reported a fourth-quarter profit of US$400mn, US$160mn short of what analysts at Reuters were expecting

As BP announced its fourth-quarter results of 2016 on the morning of the 7 February, its share price fell by 2.4 per cent. However, the story is more complex than just a lack of market confidence. For the year 2016, the underlying profits of BP fell to US$2.6bn from US$5.6bn in 2015. The volatile oil prices are largely to blame for this. However, BP also says that significantly lower operating costs affected this figure as well. BP also took an additional charge of US$799mn for the Deepwater Horizon disaster. 

"We have adapted by cutting our controllable cash costs by US$7bn from 2014 - a full year earlier than planned. Continued tight discipline on costs remains essential," Bob Dudley, BP group chief executive, said.

Another reason the market lost some confidence in BP is that, while it achieved US$400mn underlying cost replacement profit for Q4 of 2016, Reuters predicted that BP would achieve US$560mn. 

BP have announced that when the oil price reaches US$60 per barrel, it will balance the book by the end of 2017. The average price of brent crude in 2016 was just US$44 per barrel, the lowest in 12 years. 

The group has been making acquisitions recently, including obtaining Australian petrol stations at the end of2016, agreeing to take a 10 per cent stake in Abu Dhabi Company, giving it access to the emirate's largest oilfields, and taking a stake in exploration areas off the coast of Mauritania and Senegal.

Hits: 1535

FPSO vessel integral to Vitol, Eni and GNPC development of Sankof Gye Nyame fields in Ghana named

FPSO3The Floating Production, Storage and Offloading (FPSO) vessel “John Agyekum Kufuor”, was named on 3 February by Ghana’s First Lady, H.E. Rebecca Akufo-Addo, after Ghana’s President Emeritus, H.E. John Agyekum Kufuor

Hits: 1913

Read more ...

Nigeria seize OPL 245 in US$1.2bn Shell/Eni fraud operation

DAF CF Shell Fuel bowser GTL Fuel OliecentraleNearly two decades after the OPL was awarded in Nigeria, the federal government is taking back control of the controversial OPL245 bloc and will continue the prosecution of oil giants Shell and Eni

Hits: 3143

Read more ...

Shell to sell stake in Vivo Energy to Vitol Africa BV

Cityscape of The Hague viewed from Het Plein The SquareShell signed an agreement with Vitol Africa BV to sell its 20 per cent stake in Vivo Energy in the Netherlands before Christmas 

Hits: 2295

Read more ...

Equatorial Guinea agree to cut production and present offer to join OPEC

LocationEquatorialGuineaEquatorial Guinea's Minister of Mines and Hydrocarbons, HE Gabriel Mbaga Obiang, met OPEC officials in Vienna on 20 January 2017 to present the Government of Equatorial Guinea's offer to become to the 14th member of the organisation 

Hits: 2440

Read more ...

Alain Charles Publishing, University House, 11-13 Lower Grosvenor Place, London, SW1W 0EX, UK
T: +44 20 7834 7676, F: +44 20 7973 0076, W:

twn Are you sure that you want to switch to desktop version?