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Shares in oil giant BP fall as it posts $999m annual loss

BP has reported an annual loss of $999m (£808m) for 2016, although an increase in the oil price helped it enjoy an improvement in the last three months of the year.

Results were short of analysts' forecasts though the full-year loss was smaller than 2015's record $5.2bn (£3.7bn) shortfall.

Shares (Berlin: DI6.BE - news) in the oil giant - a staple of many UK pension funds - fell 3%.

BP has continued to be dogged by the cost of the deadly Gulf of Mexico Deepwater Horizon disaster in 2010, though it says these charges, totalling $63bn so far, are now "substantially" behind it.

Stripping out these and one-off costs, annual profits were well down on 2015 as BP battled the "challenging" price environment for oil - which averaged $44 a barrel for the year.

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But for the fourth quarter, underlying profits doubled to $400m (£323m) - as plans by oil-producing nations to limit production saw the price of a barrel of Brent crude climb above $50.

BP chief executive Bob Dudley said: "We have delivered solid results in tough conditions - and are well prepared for any volatility in oil pricing."

The company has, like other oil giants, been cutting billions in costs and investment to reflect the weakness in the oil price which had peaked at more than $100 a barrel in the summer of 2014.

Last month, Sky News revealed that the company was facing a renewed showdown with investors over Mr Dudley's multi-million pound pay package, a year after an embarrassing investor revolt.

BP's results come a week after rival Royal Dutch Shell (LSE: 0LN9.L - news) reported a 44% dip in earnings.