02 February 2010 08:19 [Source: ICIS news]
SINGAPORE (ICIS news)--UK oil and gas major BP said on Tuesday that its refining and marketing business had a $1.94bn (€1.40bn) replacement cost loss before interest and tax in the fourth quarter, reversing a $416m profit made in the same period last year, due to weaker refining margin and hefty impairment charges.
“The fourth quarter’s result included a net non-operating charge of $1.85bn … [which] included restructuring charges of $500m and a $1.6bn one-off, non-cash, impairment of all of the segment’s goodwill in the US West Coast fuels value chain relating to our 2000 ARCO acquisition,” BP said in a statement.
In the December quarter, BP had heavy losses of $2.33bn from the segment’s US operations, little offset by the $388m earnings recorded from other regions.
Refining and market also recorded $1.07bn in inventory losses in the October-to-December 2009 period, against hefty gains of $8.5bn in the previous corresponding period, the company said.
For the whole of 2009, replacement cost profit for this business segment shrank to $743m from $4.18bn in 2008.
BP said it expects refining margins to remain weak this year.
($1 = €0.72)
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