Clean net income beats consensus by 10% on below EBIT items
4Q14 net income beat consensus despite a 15% miss on Upstream EBIT (with the low
price realisations pre-released). The beat came largely below the operating line, with a
low interest charge driven by a credit in respect of a mark to market on the Sunpower
convertible bonds, while tax charge was also lower than forecast (mix). As with the
many other majors) the reported results were impacted by an impairment charge
($7.8bn) – attributed to: $2.2bn for the Canadian oil sands (mostly relating to the
cancellation of Joslyn); $2.1bn for US unconventional gas assets; and $1.4bn related to
European refineries (part reflecting the Lindsey capacity reduction).