Up and Coming: BP reports annual loss of $4.9bn

Tuesday, February 1, 2011

BP reports annual loss of $4.9bn

BP's chief executive Robert Dudley took over the role from Tony Hayward in the wake of the oil spill

BP has reported a loss of $4.9bn (£3.1bn) for 2010, its first annual loss since 1992.

The replacement cost loss comes after taking into account $40.9bn set aside for costs relating to the giant oil spill in the Gulf of Mexico.

The loss compares with a profit of $13.9bn that BP had recorded in 2009.

The company's chief executive, Robert Dudley, said BP would restore its dividend payment to shareholders, paying 7 cents a share.

The dividend payouts had been suspended in the wake of the Gulf of Mexico oil spill.

BP's profits during the fourth quarter of 2010 were $4.6bn, a third higher than in the same quarter a year previously.

Some of the increase in profits during the fourth quarter was thanks to the rising oil price, which had climbed to £$90 a barrel by the end of last year.

BP also said in its results statement that it would sell its Texas City oil refinery, where 15 workers were killed in an explosion at the plant in 2005.

The company is restructuring its business and has already sold interests in Argentina, North America, Venezuela, Vietnam, Colombia and Egypt.

Later on Tuesday BP will give further details on its future strategy.

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