Bumper BP profits fail to get City purring as FTSE 100 closes lower

A resurgence in profits at BP was not enough to prompt investors to flood into the oil giant as London markets posted a muted day yesterday.

The capital’s premier FTSE 100 index dipped 0.08 per cent to 7,567.07 points, while the domestically-focused FTSE 250 index, which is more aligned with the health of the UK economy, edged down 0.05 per cent to 21,787.46 points.

Results posted yesterday morning revealed BP swung back from deep losses driven by a slump in oil prices due to Covid-19 restrictions depressing global demand for the commodity.

Profits came in at £9.5bn for the whole year, with most of the haul booked in the final three months of 2021 as it reaped the rewards of a rebound in oil prices, sending BP’s shares to near the top of the FTSE 100’s biggest risers’ table during the first few hours of trading.

But, they came crashing down during the afternoon session and eventually finished 2.36 per cent lower. BP reported around £5bn in losses in 2020.

Oil prices have been hoisted from their pandemic lows over the course of last year, driven by a resurgence in demand as economies around the world emerged from Covid-19 curbs.

BP represents an enormous share of the FTSE 100, meaning movements in its share price exert a strong influence over the direction of the index.

Middle-class favourite and online supermarket Ocado was by far the worst performer on the premier index tumbling nearly 13 per cent.

The pound was flat against the dollar.