Against the backdrop of falling oil prices to fresh lows, the British company BP Plc reported a decline in profits in the fourth quarter by 91%.
Profit oil and gas company, taking into account one-off items and changes in inventories fell to $ 196 million. The average forecast of analysts in a Bloomberg survey was $ 814.7 million. Last year the figure was $ 2.24 billion. The company's shares fell 5.1%.
Due to the rapid fall in oil prices, CEO Bob Dudley decided to cut billions of dollars in costs, as well as thousands of jobs and freeze some projects. The level of debt of the company continues to grow: BP among the major oil producers, for which the international rating agency Standard & Poor's has lowered its forecasts. The market value of British companies has fallen below $ 100 billion for the first time since the disaster at the Gulf of Mexico in 2010.
Last week, other oil companies also reported a decline in profits: PetroChina Co. predicts drop in earnings for the entire 2015 by 60%; Friday the company Chevron Corp. It reported its first quarterly loss since 2002; Royal Dutch Shell Plc predicts drop in profits in the fourth quarter by 42%.
The ratio of net debt to equity ratio at the end of 2015 increased to 21.6%, which is almost 5% more than in the previous year. Net loss was $ 3.31mlrd BP. In the fourth quarter of 2014, the figure was $ 4.41 billion.
This year, BP shares rose 3.7% after falling 14% last year. It is the best performer after BG Group Plc among eight companies within the FTSE 350 Oil & Gas Producers Index.