BP plc (BP) shares fell to the bottom of the FTSE 100 Tuesday after the oil major posted lower than expected profits for the fourth quarter despite a rise in global oil prices and held its dividend unchanged.
BP said earnings per share came in at $0.13, firmly higher than the $0.06 recorded in the final three months of 2015 but just shy of the $0.16 total forecast by analysts. Revenues for the period were just over $51 billion, the company said, up 3.7% from the year ago period but shy of the consensus estimate of $54.7 billion. The quarterly dividend will remain unchanged at 10 cents per share, the company said.
"We have delivered solid results in tough conditions - and are well prepared for any volatility in oil pricing. We have adapted by cutting our controllable cash costs by $7 billion from 2014 - a full year earlier than planned," said CEO Bob Dudley. "Continued tight discipline on costs remains essential. Everything we have done during the year has made us a more resilient and competitive company."
"With our Deepwater Horizon financial liabilities now substantially behind us, BP is fully focused on the future. You have seen that focus in the string of strategic portfolio additions during the last two months of the year," Dudley said. "From increasing gas interests and renewing long-term low-cost oil to expanding our retail operations - these investments will generate significant long term value for our shareholders. We start this year with considerable momentum - and a sense of disciplined ambition. We have laid the foundations for BP to be back to growth."
