Saturday, February 7, 2015

BP annual report 2014


BP, annual, report, 2014, front page

To me this report was like a comet hitting the water in a still mountain lake. I had expected the fourth quarter to be bad but this bad? No, that I just did not see coming. The response by the stock market was not very big... I think the share price decreased by only -1%.

The report in full can be found here. For the previous annual summary by me see British Petroleum (BP) annual report 2013 and for the previous quarter report please see BP report Q3 2014.

First off let us take a look at the income statement below. So the total revenue dropped by around -9.5% for the full year which is a lot and with a significant decrease coming in the fourth quarter! One could have thought that this comes from them deciding to build up their inventory when the oil price dropped but that has not been the case they even decreased it with 11 billion USD going from 29 billion to only 18 billion. During the fourth quarter BP made a loss of 4.4 billion which gives for the full year a total earning of 3.7 billion or 0.20 USD per share so the earnings does not even cover the dividends paid out (since that was 0.37 USD). Bad, bad, bad!


BP, annual, 2014, income statement


Let us have even more fun and take a look at the comprehensive statement so that we also bring in the fact that BP have large activity in Russia but that everything is being reported in USD what then comes out is even greater! So... we then go from have a extremely bad year with earnings around 4 billion to being even worse and making a loss of -8.9 billion or -0.489 USD per share! Excellent! Bravo!


BP, 2014, comprehensive, income


Conclusion: I am very unhappy with this final quarter by BP. I have always thought that by having both upstream and downstream these oil giants can leverage for instance a decreased oil price by then having a larger margin on their downstream products. Now in this fourth quarter I do not see that at all! Not at all! Both upstream and downstream shows bunk results! I will remain as shareholder but I am not amused.

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