Oil giant BP took a loss in the fourth quarter of 2014 as oil prices slumped, becoming the first major to do so amid slumping prices.
BP took a $969 million hit when accounting for writing down assets and other one-off measures, an accounting method known as replacement-cost, the firm noted. It posted an $8.1 billion replacement-cost profit for the entire year, down from $23.6 billion in 2013.
“We have entered a challenging phase of low oil prices. Our focus must now be on resetting BP, while maintaining safe operations,” said CEO Bob Dudley.
The results underscore the effect low oil prices have had on the firm. While crude has rebounded trade above $50 per barrel, it’s still lost half its value since June.
As such, BP joined other drillers big and small in announcing capital spending cuts. The firm said capital expenditures would hit $20 billion this year, down from previous projections of at least $24 billion. It also will shed $10 billion of assets this year.
