The UK-based firm has slumped into the red amid a plunge in the global price of oil over the last 18 months to 12-year lows.
BP has announced thousands of fresh job cuts as it crashed to a £3.6bn ($5.2bn) annual loss for 2015 amid an oil price slump.
The loss compares to a profit of £5.6bn ($8.1bn) for 2014. Brent crude has dipped to around $30 a barrel having topped $115 in the summer of 2014.
BP announced 3,000 job cuts in its global downstream operations - which include refineries, trading and fuels marketing - in addition to the recently announced 4,000 upstream exploration and production job cuts - which include 600 in the North Sea.
The total of 7,000 represents nearly 9% of its workforce.
Chief executive Bob Dudley said: "We are continuing to move rapidly to adapt and rebalance BP for the changing environment."
BP's profits were weighed down by the ongoing cost of the deadly Gulf of Mexico oil well blast in 2010 which accounted for £8.1bn ($11.7bn) over the course of 2015. The total charge for this now stands at £38.6bn ($55.5bn).
On an underlying basis, annual earnings still fell by more than half, to £4.1bn ($5.9bn). Shares fell 7%.
But the company, a stalwart of many UK pension funds, maintained its dividend at 7p (10 cents) per share.
BP said oil prices "continue to be challenging in the near term". It has been cutting back billions from investment and day-to-day operating costs in the wake of the slump and indicated that it could go further should the current downturn continue for an extended period.
Finance director Brian Gilvary said: "Should current conditions persist for longer than anticipated, we expect that all the actions we are taking will capture more deflation."
BP took charges of £1.8bn ($2.6bn) against the value of assets in the Gulf of Mexico, US shale oil fields and Libya amid the energy price fall.
