Author Osaemezu Ogwu is a cryptocurrency journalist with several years of experience in the crypto-verse.
UK-based oil and gas company BP is experiencing not the best times at the moment as well as the industry in general. The net profit in 2019 was 21% lower than in 2018.
UK-based oil and gas company BP has released its full-year underlying replacement cost profit, which is used as a substitute for net profit. The company recorded a net profit of $10 billion in 2019, 21% below the $12.7 billion it made in 2018, reports revealed on February 4, 2020.
According to data from Refinitiv, the expectation of analysts was that BP’s net profit would come in at $9.7 billion. Although it failed to match the figures it released in the preceding year, the company still managed to beat that expectation with its record of $10 billion net profit for 2019.
Speaking about the statistics, BP’s CEO, Bob Dudley believes the company is in the right direction and has no doubt it will survive the rapidly-changing energy landscape even after he steps down from his office. He said in a statement:
“BP is performing well, with safe and reliable operations, continued strategic progress and strong cash delivery. After almost ten 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.”
“I am confident that under their leadership, BP will continue to successfully navigate the rapidly-changing energy landscape,” added he.
According to the statistics, the underlying replacement cost profit for the fourth quarter and full-year 2019 stood at $2.6 billion and $10.0 billion respectively, in contrast with the $3.5 billion and $12.7 billion recorded for the same periods 365 days earlier.
It also mentioned that the Gulf of Mexico oil spill payments are expected to be less than $1 billion in 2020 after totaling $2.4 billion on a post-tax basis last year. BP also announced a dividend of 10.5 cents per share for the quarter, which comes at an increase of 2.4% on a year earlier.
Meanwhile, concerns over the outbreak of coronavirus in China and other Asian countries is having effects on the earnings of oil and gas companies. Both Brent Crude and West Texas Intermediate (WTI) have both fallen 20% owing concerns over the spread of the virus. The CFO at BP, Brian Gilvary has stated that the outbreak of coronavirus could wipe out as much as 300,000 to 500,000 barrels per day of oil demand in 2020.
BP has been a bit silent for a while but the latest development should keep it on the front page of newspapers for the coming weeks. On November 14th, 2018, Coinspeaker reported that the company has partnered with Shell and a host of other oil industry giants to launch a platform to facilitate post-trade processes.