Bp has announced that it recorded a 4.9 billion dollars loss in 2010

Bp has announced that it recorded a 4.9 billion dollars loss in 2010 mainly due to the cost related to the oil spill in the Gulf of Mexico.

Bp reported that its replacement cost loss was 4.914 billion dollars in 2010. The loss is in contrast to the 13.955 billion dollars profit earned in 2009.the loss was diminished as the fourth quarter had a replacement of cost profit of 4.6 billion dollars.

The profit was approximately three times than that in the third quarter of 2010 which was reported to be at 1.8 billion dollars. The fourth quarter profit was also higher than the 3.44 billion dollars registered in the period 2009.

The group statement for the fourth quarter and full year reflects the pre-tax charge of 1.0 billion and 40.9 billion dollars respectively related to the Gulf of Mexico oil spill.

The charges related to the oil spill were reported as non-operating items. Such items and fair value accounting effects for the fourth quarter, on a post-tax basis, and a net favoured impact of $250 million compared with a net unfavoured impact of %937 million in the fourth quarter of 2009.

For the full year, the respective net unfavourable impacts were $25.43 billion and $622 million. Including the impact of the Gulf of Mexico oil spill, net cash used in operating activities for the fourth quarter was $0.2 billion and net cash provided by operating activities for the full year was $13.6 billion.

These amounts included a net cash outflow of $5.4 billion and $16 billion for the fourth quarter and full year respectively in relation to the Gulf of Mexico oil spill.

Bp also announced that it will sell its Texas refinery and the southern part of its U.S west coast fuels value chain, including the Carson refinery by the end of 2011.

In November 2011, bp agreed to sell five southern African marketing businesses to puma energy for approximately $296 million. The decision was a result of a strategic review of bp’s southern African refining and marketing businesses.

The five businesses supply commercial fuels, aviation fuel, lubricants, and a total of almost 190 service stations across Namibia, Botswana, Malawi, Tanzania and Zambia.

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