BP on road to recovery with return to profit for 2016

BP on road to recovery with return to profit for 2016

BP announced a return to marginal profits for 2016, a drastic improvement from last year’s numbers.

The British oil major reported headline profit of US$115 million compared to the 2015 loss of $6 billion. The earnings impaired by Gulf of Mexico legacy charges of $4.1 billion.

It is still a positive set of results for BP, returning to the black despite last year’s low oil price environment and the hefty fines imposed for the Deepwater Horizon oil spill in the Gulf of Mexico.

“2016 was the year we made significant strides in creating a stronger platform for growth,” said BP CEO Bob Dudley.

He highlighted how BP had launched six major projects in 2016, from Algeria to the Gulf of Mexico, and made final investment decisions on a further five major projects.

“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,” Dudley explained.

“Continued tight discipline on costs remains essential. Everything we have done during the year has made us a more resilient and competitive company.

The BP executive also noted that the financial liabilities incurred from the Deepwater Horizon oil spill were ‘substantially behind’ the company.