BP Earnings at 10-Year Low as Oil Struggles to Rally, StatOil Loss Widens

Sarla Buch
07 Feb, 2017
New York City

BP net swung to profit and revenues jumped 6%. BNP Paribas profit surged 15%. Hannover Re said preliminary net income rose 2% to

[R]4:00 PM Frankfurt – BP net swung to profit and revenues jumped 6%. BNP Paribas profit surged 15%. Hannover Re said preliminary net income rose 2% to €1.2 billion. Statoil net loss widened and the Norwegian oil driller plans to explore two wells in Newfoundland.[/R]

In London trading, FTSE 100 index jumped 43.46 or 0.6% to 7,216.53 and in Frankfurt the DAX index increased 81.88 or 0.7% to 11,591.71.

In Paris, CAC 40 index slid 7.53 or 0.2% to 4,770.78.

BP Plc slumped 2.6% to 464.10 pence after the U.K.-based oil and gas producer reported revenues in the fourth-quarter ending in December jumped 5.9% from a year ago to $52.1 billion.

Net in the quarter swung to profit $543 million or 16 cents per diluted share compared to the loss of $3.3 billion or $1.08 per share in the same quarter last year.

BP said remaining claims arising from the oil spill in 2010 are expected to be substantially paid in 2017. The total cumulative charge for the incident is now $62.6 billion on a pre-tax basis, $44.1 billion after tax.

BP added oil and gas production in the quarter dropped 5.5% to 2.19 million barrels of oil equivalent per day from a year earlier.

BNP Paribas SA declined 3.8% to €57.76 after France-based banking and financial services provider said total revenues in the year ending in December increased 1.1% from a year ago to €43.4 billion.

Net profit in the quarter surged 14.9% from a year ago to €7.7 billion compared to the €6.7 billion and diluted earnings per share advanced to €6 from €5.13.

BNP Paribas said gross operating income in the year jumped 2.6% to €14.03 billion and operating income advanced 10.1% to €10.77 billion. Pre-tax income rose 8% to €11.21 billion.

The board will propose the payment of dividend of €2.70 per share to be paid in cash.

Hannover Rueck SE increased 1.9% to €104.10 after Germany-based reinsurance services provider said preliminary net income in the year ending on December rose 1.7% from a year ago to €1.17 billion from €1.15 billion and diluted earnings per share advanced to €2.01 from €1.69.

The reinsurer said operating profit in the year declined 4% to €1.69 billion compared to the €1.76 billion in the same period a year ago.

Statoil slumped 2.3% to 152.30 Norwegian kroner after Norway-based oil and gas explorer said revenues in the fourth-quarter ending in December slipped 0.8% from a year ago to $12.7.

Net loss in the quarter widened from a year ago to $2.8 billion compared to the $1.1 billion and diluted loss per share increased to 87 cents from 35 cents.

The oil producer said it is plans to explore two wells in the Flemish Pass Basin in Newfoundland''s offshore in this year.