Profit attributable to BP Plc shareholders fell to $27 million in the fourth quarter of 2017 from $497 million in 2016, as production and revenues jumped even as the company booked a $1.69 billion posttax charge to settle claims related to the 2010 Deepwater Horizon disaster in the Gulf of Mexico.
Diluted earnings were 0.14 cents per ordinary share, down from $2.60 per ordinary share in the year-ago period. The oil giant's earnings included a tax charge of $3.01 billion associated with the revaluation of U.S. deferred tax assets with regard to the Gulf of Mexico oil spill.
Comprehensive income attributable to BP shareholders was $1.31 billion, down from $2.67 billion in the same quarter of 2016. Production was 18.1% higher year over year.
Fourth-quarter sales and operating revenues for the group reached $67.82 billion, up from $51.01 billion in 2016.
For full year 2017, BP posted a jump in attributable profit to $3.39 billion from $115 million in 2016. Sales and other operating revenues amounted to $240.21 billion during 2017, up from $183.01 billion. Group production rose 10% year over year in 2017.
The company maintained its interim dividend at 10 cents per ordinary share for the fourth quarter of 2017, which is expected to be paid March 29.
BP expects first-quarter 2018 reported production to be largely flat compared to the last quarter of 2017, reflecting growth from new projects offset by the expiration of the Abu Dhabi offshore concession and divestment impacts. For full year 2018, the company anticipates underlying production to be higher than 2017 due to the ramp-up of major projects, though actual reported outcome is contingent on the timing of the planned strategic moves and OPEC quotas, among other things.
BP repurchased 51 million ordinary shares during the quarter for a total consideration of $343 million, including transaction costs of $2 million.
