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BP’s Q4 Earnings Rose across Its Segments

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Feb. 6 2019, Updated 8:26 a.m. ET

BP’s Upstream segment

BP (BP) posted its fourth-quarter earnings on February 5. The company’s results beat the earnings estimate. To learn more, read BP Reported Strong Q4 Numbers, Beat Estimates.

BP’s Upstream adjusted EBIT rose from $2.2 billion in the fourth quarter of 2017 to $3.9 billion in the fourth quarter. The adjusted EBIT rose due to better liquids and natural gas realizations as well as higher production. The average hydrocarbon realizations rose from $37 per boe (barrel of oil equivalent) in the fourth quarter of 2017 to $43 per boe in the fourth quarter. The hydrocarbon production rose 1.8% to 2.6 million barrels of oil equivalent per day in the fourth quarter.

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ExxonMobil’s (XOM) Upstream earnings increased from $2.5 billion in the fourth quarter of 2017 to $3.7 billion in the fourth quarter. Chevron’s (CVX) Upstream segment’s adjusted earnings rose from $1.9 billion in the fourth quarter of 2017 to $3.3 billion in the fourth quarter. Royal Dutch Shell’s (RDS.A) adjusted Upstream earnings rose from $1.7 billion in the fourth quarter of 2017 to $1.9 billion in the fourth quarter.

BP’s other segments

BP’s Downstream adjusted EBIT rose 47% YoY to $2.2 billion in the fourth quarter. The adjusted EBIT rose due to the higher adjusted EBIT in the Fuels and Petrochemical segment. The increase was partially offset by the Lubricants segment’s lower EBIT. The Fuels and Petrochemical segment’s earnings rose due to improved margins in fuel marketing and petrochemicals. However, the industry’s refining margins and BP’s refinery utilization fell during the quarter.

BP’s Rosneft segment encompasses equity earnings from Rosneft, which is a giant oil company in Russia. BP owns a 19.8% stake in Rosneft. The Rosneft segment’s adjusted EBIT rose from $321 million in the fourth quarter of 2017 to $431 million in the fourth quarter.

Overall, BP’s adjusted EBIT rose from $3.5 billion in the fourth quarter of 2017 to $6.3 billion in the fourth quarter due to higher upstream, downstream, and Rosneft earnings.

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