British Petroleum swings to profit in the fiscal fourth quarter

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is an active follower of world affairs, technology, an avid reader, and loves to play table tennis in… read more.
on Feb 2, 2021
  • British Petroleum plc swings to profit in the fiscal fourth quarter.
  • The oil major declares 3.83 pence per share of quarterly dividend.
  • British Petroleum lost more than 45% in the stock market last year.

British Petroleum plc (LON: BP) said on Tuesday that it concluded the fiscal fourth quarter in profit as prices showed signs of recovery in recent months after an unprecedented hit from the Coronavirus pandemic that has so far infected more than 3.8 million people in the United Kingdom and caused over 106 thousand deaths.

British Petroleum was reported about 2.5% down in premarket trading on Tuesday and slid another 1% on market open. Including the price action, the stock is now exchanging hands at 259 pence per share. In comparison, it had plummeted to as low as 194 pence per share in October 2020. If you want to invest in the stock market, you’ll need a reliable stockbroker – here’s a comparison of the top few to make selection easier for you.

British Petroleum reports £990 million of net profit

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British Petroleum said that its net profit printed at £990 million in the three months that concluded on 31st December. In the comparable period of last year, it had recorded £328.57 million of net loss.

Underlying replacement cost profit, as per the oil major, came in at £83.97 million in the recent quarter versus the quarter-ago figure of a much lower £62.79 million. Company-compiled market consensus for underlying replacement cost profit in Q4, on the other hand, stood at a sharply higher £270.15 million.  

The underlying replacement cost profit is a metric identical to what the United States-based oil companies call net profit, but it excludes non-recurring items. British Petroleum raised £9.50 billion via its first hybrid bonds issue in June 2020.

BP declares 3.83 pence per share of quarterly dividend

The British multinational’s board also declared 3.83 pence per share of quarterly dividend on Tuesday that pushed the annual payment to 23 pence per share versus 29.94 pence per share in fiscal 2019.

In separate news from the UK, pub operator Marston’s rejected a takeover proposal worth £666 million from Platinum Equity Advisors on Monday.

BP expressed confidence that recovery in oil prices that started in late October showed resilience in recent months. Demand, as per the London-based firm, is likely to see improvement in 2021.

British Petroleum performed largely downbeat in the stock market last year with an annual decline of more than 45%. At the time of writing, the British multinational oil and gas company has a market cap of £52.69 billion.

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