BP makes first annual loss in nearly two decades

BP has made its first annual loss in nearly two decades following a disastrous year for the oil giant.

After taking into account the tens of billions of pounds it set aside to cover costs relating to last year's Gulf of Mexico oil spill, the company has reported a loss of £3.1bn for 2010.

In 2009 the company reported a profit of £13.9 billion.

Although BP suffered an annual loss, profits in the fourth quarter of 2010 were a third higher at £2.8 billion compared to the same quarter in 2009. This was in part due to rising oil prices.

BP has also said it will resume dividend payments to shareholders, after their suspension over the summer, paying 7 cents per share.

This will come as welcome news to many pension holders as well as investors given the stock previously accounted for an estimated one in every six pension pounds invested.

BP also said in its results statement that it would sell two US oil refineries, including the Texas City refinery, where 15 workers were killed and 170 injured in an explosion at the plant in 2005.

The company is restructuring its business and has already sold interests in Argentina, North America, Venezuela, Vietnam, Colombia and Egypt.

BP suffered a public relations disaster after the explosion on the Deepwater Horizon rig last April which killed 11 people and dumped millions of gallons of oil into the Gulf of Mexico.