BP sees profits more than double

BP has seen profits more than double to 12.7 billion US dollars (£9.7 billion) for 2018, following higher oil prices and after it launched a raft of new projects.
Library image of a BP petrol station, as the energy giant has seen profits more than double to 12.7 billion US dollars (£9.7 billion) for 2018, following higher oil prices and after it launched a raft of new projects.  PRESS ASSOCIATION Photo. Issue date: Tuesday February 5, 2019. Photo: Nick Ansell/PA WireLibrary image of a BP petrol station, as the energy giant has seen profits more than double to 12.7 billion US dollars (£9.7 billion) for 2018, following higher oil prices and after it launched a raft of new projects.  PRESS ASSOCIATION Photo. Issue date: Tuesday February 5, 2019. Photo: Nick Ansell/PA Wire
Library image of a BP petrol station, as the energy giant has seen profits more than double to 12.7 billion US dollars (£9.7 billion) for 2018, following higher oil prices and after it launched a raft of new projects. PRESS ASSOCIATION Photo. Issue date: Tuesday February 5, 2019. Photo: Nick Ansell/PA Wire

The energy giant’s underlying replacement cost profit - BP’s preferred income measure - surged from 6.2 billion US dollars (£4.8 billion) in 2017.

Its fourth quarter underlying earnings also jumped higher despite oil prices easing back at the end of last year, to 3.5 billion US dollars (£2.7 billion) against 2.1 billion US dollars (£1.6 billion) a year earlier.

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The FTSE 100 stalwart has been riding the wave of a rebound in the cost of crude in recent years, as has rival Royal Dutch Shell, which last week reported a 36% jump in annual profits.

But BP has also been embarking on a number of new projects, which has been boosting production.

Bob Dudley, group chief executive of BP, said: “We now have a powerful track record of safe and reliable performance, efficient execution and capital discipline.

He added: “Our strategy is clearly working and will serve the company and our shareholders well through the energy transition.”

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BP’s annual figures were higher than expected for both the full year and the fourth quarter.

On a reported basis, full-year profit rose to 10 billion US dollars (£7.7 billion) while fourth-quarter results showed it swinging to a 2.7 billion US dollar (£2.1 billion) profit from a 583 million US dollar (£447 million) loss a year earlier.

The group said payments relating to the 2010 Gulf of Mexico fatal oil spill tragedy stood at 3.2 billion US dollars (£2.5 billion) in 2018.

BP recently announced plans to pump 100,000 more barrels of oil a day in the region, where it sparked one of the world’s biggest environmental disasters nearly nine years ago.

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Full-year results also showed it made divestments of 3.5 billion US dollars (£2.7 billion) of assets and the group announced plans to complete more than 10 billion US dollars (£7.7 billion) over the next two years.

BP said it expects recent major projects to ramp up production in 2019.

It confirmed fourth-quarter shareholder dividend payments of 10.25 cents (7.85p) a share, up 2.5% on a year earlier.