BP Plc (NYSE: BP) announced its financial results for the fourth quarter, with revenues and profits increasing but missed analysts estimates. Shares of BP were down on early trading Tuesday.
According to the statement, the company reported EPS of $0.13 per share in the fourth quarter of 2016, which was more than the $0.06 per share in the same period of 2015. However, the results were below previous estimates of $0.16 per share.
BP’s revenue for the fourth quarter was $52.12 billion, increasing from the $49.23 billion in the same period last year. However, it also missed analysts’ expectations of $54.70 billion.
In addition, the company reported its underlying replacement cost profits of $400 million for the fourth quarter of 2016, increasing from $196 million in the same period last year. The results were below estimates of $567.7 million, and were partly due to the low-than-expected earnings from the company’s stake in Rosneft of Russia.
“2016 was the year we made significant strides in creating a stronger platform for growth. We launched six major project start-ups – from Algeria to the Gulf of Mexico – and made final investment decisions on a further five major projects. And we see exciting opportunities ahead,” Bob Dudley, the chief executive of BP group, said in the statement.
“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. Continued tight discipline on costs remains essential. Everything we have done during the year has made us a more resilient and competitive company,” he added.
In recent years, the world’s biggest oil companies have struggled to bring their spending in line with cash generation, when the oil prices dropped sharply and investors lose confidence about the sustainability of dividend programs.