BP informed its full-year profit was $12.1 billion, compared with $13.4 billion reported for 2013.
The company’s profit for the fourth quarter was $2.2 billion, compared with $2.8 billion for the same period in 2013, BP said in a statement.
“We have now entered a new and challenging phase of low oil prices through the near and medium term,” said Bob Dudley, BP group chief executive . “Our focus must now be on resetting BP: managing and rebalancing our capital programme and cost base for the new reality of lower prices while always maintaining safe, reliable and efficient operations. ”
In 2015, BP plans to reduce exploration expenditure and postpone marginal projects in the upstream, and not advance selected projects in the downstream and other areas. As a result, organic capital expenditure in 2015 is expected to total around $20 billion, significantly lower than previous guidance of $24-26 billion. Total organic capital expenditure in 2014 was $22.9 billion, lower than initial guidance of $24-25 billion.
At the end of 2014 BP carried net debt of $22.6 billion, equivalent to a gearing level of 16.7%. BP intends to maintain gearing within its existing target range of 10-20%, the statement said.
Overall Group oil and gas production, including Russia, was 3.2 million barrels of oil equivalent a day (boe/d). Excluding Russia, underlying upstream production was 2.3% higher than a year earlier, but reported production of 2.2 million boe/d was 2.6% lower than 4Q 2013, primarily due to the expiry of the Abu Dhabi concession in January 2014.
Underlying pre-tax replacement cost profit for BP’s Downstream segment was $1.2 billion for the quarter, compared with $70 million in 4Q 2013, with improved refinery business delivery and marketing performance.
BP also reported a reserves replacement ratio, including Russia, for 2014 of 62%, excluding the impact of acquisitions and divestments.
BP has gained new exploration access in the North Sea, Gulf of Mexico and Egypt; and in December signed a production sharing agreement with SOCAR of Azerbaijan for exploration and potential development in the shallow water around the Absheron Peninsula in the Caspian Sea.
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Image: BP