BP last Tuesday reported that its fourth-quarter replacement cost profit was $72 million, compared with a loss of $2,233 million for the same period in 2015. After adjusting for a net charge for non-operating items of $180 million and net unfavourable fair value accounting effects of $148 million (both on a post-tax basis), underlying RC profit for the fourth quarter was $400 million, compared with $196 million for the same period in 2015 and $933 million for the third quarter of 2016. Fourth quarter revenue was $52.12 billion, up from $49.23 billion during the fourth quarter of 2015. For the full year 2016, underlying replacement cost profit was $2,585 million compared to $5,905 million in 2015.
The headline reported result for the full year was a profit of $115 million, compared with the headline loss of $6.48 billion reported for 2015. The 2016 headline result included a total of $4 billion non-operating charges taken through the year associated with resolution of the remaining legacy of the 2010 oil spill. The headline profit excluding these legacy charges was $4.1 billion for 2016, compared with $2.0 billion for 2015 .
BP's downstream fourth quarter profit was $1,457 million compared to a loss of $644 million in the fourth quarter 2015. Underlying replacement cost profit was $877 million compared to $1,218 million in the fourth quarter of 2015.
BPs lubricant business reported an underlying replacement cost profit before interest and tax of $357 million in the fourth quarter, up 21.4 percent from $294 million in 2015s fourth quarter. For full year 2016, profit was more than $1.5 billion, up 7 percent from just below $1.4 billion in 2015.