BP Shipping has revealed red ink for 2020 as tanker markets struggled in the second half.
According to accounts filed at Companies House in the UK, the net loss was $90.16m last year, down from a deficit of $159.6m in 2019.
The shipping and ship management arm of the UK oil major said that, together with the loss brought forward from 1 January 2020, the accumulated loss at year-end stood at $1.21bn.
The company charters, manages and operates tankers, LNG and LPG carriers, as well as platform supply vessels.
BP Shipping operated 60 vessels at the end of 2020, up from 58 at the end of 2019, including 36 owned ships.
The share of BP's cargoes of more than 9,000 tonnes carried by the managed fleet was 28%, compared with 25% in 2019.
The fleet carried out 797 voyages, three up on the previous year.
The cargo volume increased to 61.6m tonnes, from 53m tonnes in 2019.
Revenue last year was $928m, up from $777m the year before, as freight rates rose and demand for storage vessels increased in the first six months.
Supply cut back
But in the second half, rates dropped "following a reduction in supply levels of hydrocarbons", BP Shipping said.
The lower loss was attributed to reduced impairment charges of $49m, against $120m in 2019.
Looking ahead, the company added that the Covid-19 pandemic is causing major volatility and uncertainty regarding rates.
But the operator said it is in a "healthy net assets" position. This figure stood at $1.56bn at year-end.
There are ongoing funding arrangements with parent BP International, the company added.
BP Shipping chief executive Carol Howle was tasked last year with helping group efforts to reach net-zero carbon emissions by 2050.
In January this year, the company reportedly secured two LR2 product tankers from UK-based Union Maritime for up to two years at high rates.
The 109,000-dwt Ampleforth (built 2008) and Wellington (built 2009) were fixed for one year at close to $20,000 per day, with an option for one more year.
