Global fuel provider BP sees $2.7bn cost profit loss

A global oil and gas company has confirmed a multi-billion dollar loss in cost profits in its year-end report today.

BP, which is headquartered in London, announced that its full year cost profit for 2019 was $10bn, compared to $12.7bn in 2018.

The company said that the difference largely reflected the impact of a weaker environment.

However, it also reported that in the fourth quarter of the year, it had a dividend of 10.5 cents per share, a rise of 2.4 per cent against the same quarter in 2018.

It also reduced its net debt by $1.1bn, with gearing at 31.1 per cent.

Bob Dudley, chief executive for BP Group, commented: “BP is performing well, with safe and reliable operations, continued strategic progress and strong cash delivery.

“This all supports our commitment to growing distributions to shareholders over the long term and the dividend rise we announced today.”

Brian Gilvary, the company’s chief financial officer, added: “We continue to make strong progress on our divestment programme, with announced transactions totalling $9.4bn since the start of 2019. “We are ahead of our target of $10bn of proceeds by end-2020, and now plan a further $5bn of agreed disposals by mid-2021.

“Net debt fell $1bn in the fourth quarter, and with further disposal proceeds expected, and assuming recent average oil prices, we continue to expect gearing to move towards the middle of the 20 to 30 per cent range through this year.

“Together with the continued strong operational momentum, growing free cash flow, and our confidence in delivery of 2021 free cash flow targets, this underpins our announcement today of an increase in the dividend to 10.5 cents per ordinary share.”