BP Slips To RC Loss In Q4, Warns On Weak Production; Plans To Reset Strategy

(RTTNews) - British energy major BP Plc. reported Tuesday a replacement cost or RC loss in its fourth quarter, compared to prior year's profit, amid weak revenues. The company also warned on sequentially lower upstream production in its first quarter, and weak production in fiscal 2025.

Chief executive officer Murray Auchincloss said, "In 2024 we laid the foundations for growth. We have been reshaping our portfolio - sanctioning new major projects, and focusing our low-carbon investment - and we have made strong progress in reducing costs. Building on the actions taken in the last 12 months, we now plan to fundamentally reset our strategy and drive further improvements in performance, all in service of growing cash flow and returns. It will be a new direction for bp and we look forward to sharing it at our Capital Markets Update on 26 February."

In London, BP shares were trading at 462.35 pence, down 0.6 percent. In pre-market activity on the NYSE, the shares were at $34.29, down 0.38 percent.

Looking ahead for the first quarter, bp expects reported upstream production to be lower sequentially, primarily due to the already announced divestments in Egypt and Trinidad, and base decline in both regions, totaling around 90 thousand barrels of oil equivalent per day.

In its customers business, bp expects seasonally lower volumes compared to the fourth quarter. For fiscal 2025, bp expects reported upstream production to be lower and underlying upstream production to be slightly lower compared with 2024.

bp further expects divestment and other proceeds to be around $3 billion in 2025 weighted towards the second half.

In its fourth quarter, bp's RC loss was $1.95 billion, compared to prior year's profit of $1.53 billion.

Underlying RC profit declined to $1.17 billion from $2.99 billion last year. Underlying RC profit per ordinary share was 7.36 cents compared to 17.77 cents.

Underlying RC profit per ADS was $0.44, compared to last year's $1.07.

On a reported basis, loss before taxation was $503 million, compared to prior year's profit of $1.10 billion. Loss to shareholders was $1.96 billion, compared to profit of $371 million a year ago. Loss per share, in cents, was 12.33, compared to profit of 2.15. Loss per ADS was $0.74, compared to profit of $0.13 a year ago.

Underlying RC profit before interest and tax fell to $4.03 billion from prior year's $6.13 billion. Adjusted EBITDA also dropped to $8.41 billion from $10.57 billion a year ago.

Total revenues and other income was $48.09 billion, compared to $52.59 billion last year. Sales and other operating revenues declined to $45.75 billion from $52.14 billion in the previous year.

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