BP Announced Its Annual Profits Fallen By 51% to $5.9bn

BP has announced its annual underlying profits have fallen by 51% to $5.9bn (£4.1bn), compared with $12.1bn in 2014.

 

Underlying fourth-quarter profits fell to $196m (£136m), compared with $2.2bn for the same period the previous year.

BP said its upstream business, which is exploration and production, slumped to a $728m loss in the final quarter.

It has confirmed up to 7,000 job cuts - 4,000 in its upstream business in 2016 and 3,000 in its downstream by 2017.

Downstream refers to its refined oil products, such as fuel, lubricants and petrochemicals, for making products such as paint and plastic bottles.

It said the fall in profits was mainly due to the "impact of steeply lower oil and gas prices in its upstream operations".

Bob Dudley, BP's group chief executive, said the company was making good progress in managing and lowering costs and capital spending. 

"We are continuing to move rapidly to adapt and rebalance BP for the changing environment," he added.

Its dividends will remain unchanged at 10 cents per ordinary share for the quarter.

BP's results are the latest in a round of weak fourth-quarterly earnings in the sector.

Last week, Chevron announced its first quarterly loss in more than 13 years.