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Losses all across the board for BP

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Miguel A. Rodriguez
Miguel A. Rodriguez
17 February 2021
Difficult quarter, and year for BP

The UK-based company posted a Q4 net profit of $115 million, missing the $285.5 million consensus. The underlying replacement cost loss for the full year came in at $5.7 billion. During the same period in fiscal 2019, it posted a net profit of $10 billion. The market was expecting a full-year net loss of $4.8 billion.

According to BP, the weaker-than-expected figures were caused by lower oil and gas prices, impacted by the restrictions meant to curb COVID-19. The same is expected to happen in the future.

“We have had the worst recession, I guess, in the world since the ’40s. It was a brutal year, I think, for the oil business — negative prices, fuel demand down 14%, aviation down 50%, and of course we had adjustments to our planning prices which resulted in impairments and write-offs,” stated CEO of BP, Bernard Looney.

Following the news, BP stock price lost more than 3%. Year-to-date, its stock price added around 6%. In 2020, the company’s stock price fell 46%.

Read how other companies have performed in the past quarter here!

Source: cnbc.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.