BP earnings sharply drop

Baku. 2 February. REPORT.AZ/ Oil giant BP reported its worst annual loss in 20 years and further restructuring charges as low oil prices continue to weigh on the company, Report informs the company's statement on results of year 2015 declares.

For 2015 as a whole, the company reported a loss of $6.5 billion. The stock opened down over 5 percent in London trade.

On an underlying basis, fourth quarter replacement cost profit came in at $196 million, well below expectations of $730 million in a poll of analysts provided by the company, and down from $2.2 billion a year earlier.

Replacement cost profit is a common accounting measure to report profits in the oil industry which takes into account the fluctuations in the price of oil. Oil prices are wallowing around a 12-year low of around $33 a barrel for benchmark Brent crude as demand fails to keep pace with a glut in global supply.

BP took $2.6 billion in non-operating post-tax charges in the fourth quarter, primarily related to impairments of upstream assets as well as restructuring charges for the group. Including these charges and other offsetting effects, BP reported a replacement cost loss for the fourth quarter of 2015 of $2.2 billion.