BP posts USD 12.1 bln profit in 2014

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.

[mappress mapid=”16643″]

Image: BP