Oil giant BP reported its worst annual loss in 20 years and further restructuring charges as low oil prices continue to weigh on the company.
For 2015 as a whole, the company reported a loss of $6.5 billion. The stock opened down over 5 percent in London trade.
On an underlying basis, fourth quarter replacement cost profit came in at $196 million, well below expectations of $730 million in a poll of analysts provided by the company, and down from $2.2 billion a year earlier.
Replacement cost profit is a common accounting measure to report profits in the oil industry which takes into account the fluctuations in the price of oil. Oil prices are wallowing around a 12-year low of around $33 a barrel for benchmark Brent crude as demand fails to keep pace with a glut in global supply.
BP took $2.6 billion in non-operating post-tax charges in the fourth quarter, primarily related to impairments of upstream assets as well as restructuring charges for the group. Including these charges and other offsetting effects, BP reported a replacement cost loss for the fourth quarter of 2015 of $2.2 billion.
Cumulative restructuring charges from the beginning of the fourth quarter 2014 totaled $1.5 billion by the end of 2015. A further $1.0 billion of restructuring charges are expected to be incurred in 2016, the group said.
Still, it reported a quarterly dividend of 10 cents per ordinary share.