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BP profit down on weaker oil and gas prices

BP profit down on weaker oil and gas prices

London, February 5 - Neftegaz.RU. BP said that its uderlying replacement cost profit for the Q4 and full year 2019 was $2.6 billion and $10 billion respectively, compared to $3.5 billion and $12.7 billion for the same periods a year earlier, largely reflecting the impact of the weaker environment.

BP’s reported profit for the Q4 and full year was $19 million and $4.026 billion respectively, compared with $766 million and $9.383 billion for the same periods in 2018.

Non-operating items in the quarter included a $1.9 billion after-tax impairment charge, mainly for the disposal of US gas assets, and a $0.9 billion charge arising from the reclassification of past foreign exchange losses on the formation of BP’s new biofuels joint venture.

The company’s full-year organic capital expenditure of $15.2 billion was at the bottom of the guided range. Divestments and other disposals announced since the start of 2019 now total $9.4 billion, keeping BP ahead of schedule to meet its target of $10 billion proceeds by end-2020. BP expects to announce a further $5 billion of agreed disposals by mid-2021.

Upstream production for the Q4, which excludes Rosneft, was 2,698mboe/d, 2.7% higher than a year earlier. For the full year, production was 2,637mboe/d, 3.8% higher than 2018.

Bob Dudley, BP CEO, said: “BP is performing well, with safe and reliable operations, continued strategic progress and strong cash delivery. This all supports our commitment to growing distributions to shareholders over the long term and the dividend rise we announced today. After almost 10 years, this is now my last quarter as CEO. In that time, we have achieved a huge amount together and I am proud to be handing over a safer and stronger BP to Bernard and his team.”