Amid Strong Q4 Numbers and Increased Payout, BP (BP) Still Hampered by Deepwater Horizon Liability
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BP plc (NYSE: BP) shares are lower Tuesday morning following a rather impressive fourth quarter and boosted payout from the energy giant.
Revenue for BP rose 14.7 percent from $83.99 billion during the fourth quarter of 2010 to $96.34 billion.
Net profit jumped 37.3 percent to $7.774 billion, or 40 cents per diluted share. On a per-ADS basis, net income moved 64 percent higher to $2.41.
The Street was looking for revs of $86.23 billion and earnings of $1.59 per share.
BP's clean replacement cost profit jumped 14 percent from $4.36 billion during the same quarter last year to $4.99 billion, beating views calling for a $4.88 billion increase.
Total production fell from 3.673 million barrels of oil equivalent per day in the year-ago quarter to 3.487 million BOE/day, though profits were bolstered by an increase in crude prices stemming from concerns over the Strait of Hormuz.
Additionally, BP boosted its quarterly dividend by about 14 percent from 7 cents prior to a new rate of 8 cents per quarter, or 48 cents per ADS. The new rate means an annual yield of 4.2 percent. This is the first increase in its quarterly payout since the tragic Deepwater Horizon incident in 2010.
Despite the news, investors are cautious on BP's liability to the Horizon incident moving forward. BP set aside a fund with $20 billion following the disaster and has paid-out about $7.8 billion to date. Many think BP could be liable for an additional $20 billion under the Clean Water Act.
Shares are off about 2 percent in early trading.
Revenue for BP rose 14.7 percent from $83.99 billion during the fourth quarter of 2010 to $96.34 billion.
Net profit jumped 37.3 percent to $7.774 billion, or 40 cents per diluted share. On a per-ADS basis, net income moved 64 percent higher to $2.41.
The Street was looking for revs of $86.23 billion and earnings of $1.59 per share.
BP's clean replacement cost profit jumped 14 percent from $4.36 billion during the same quarter last year to $4.99 billion, beating views calling for a $4.88 billion increase.
Total production fell from 3.673 million barrels of oil equivalent per day in the year-ago quarter to 3.487 million BOE/day, though profits were bolstered by an increase in crude prices stemming from concerns over the Strait of Hormuz.
Additionally, BP boosted its quarterly dividend by about 14 percent from 7 cents prior to a new rate of 8 cents per quarter, or 48 cents per ADS. The new rate means an annual yield of 4.2 percent. This is the first increase in its quarterly payout since the tragic Deepwater Horizon incident in 2010.
Despite the news, investors are cautious on BP's liability to the Horizon incident moving forward. BP set aside a fund with $20 billion following the disaster and has paid-out about $7.8 billion to date. Many think BP could be liable for an additional $20 billion under the Clean Water Act.
Shares are off about 2 percent in early trading.
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