Feb 7, 2017
BP focuses on growth as earnings disappoint market
Higher oil prices helped BP double profits in the fourth quarter and the UK energy group on Tuesday signalled a shift from cost-cutting to renewed investment after years of retrenchment following the Deepwater Horizon oil spill. BP reported $400m of underlying replacement cost profits - the main earnings measure watched by analysts - in the three months to December 31, compared with $196m during the same period in 2015. This performance fell short of analysts' expectations for earnings of $560m and shares in BP were down 2.9 per cent at 462.8p in early trading on Tuesday. In a tentative sign of confidence returning to the oil sector as oil prices stabilise, BP tightened upwards its projected range for capital expenditure this year to between $16bn and $17bn. The shift to investment was reflected in BP raising its projected break-even point - the oil price at which it can cover its dividend and spending - to $60 per barrel at the end of 2017.
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