BP Reports 4Q Profit of $4 Billion (UK)

BP Reports 4Q Profit of $4 Billion (UK)

British oil giant BP today announced reported profit of $4.0 billion for the fourth quarter 2012, compared to $5.0 billion for the same period in 2011. For the full year the profit was $17.6 billion compared to $21.7 billion in 2011.

According to Reuters, the results are better than those predicted by the analysts who expected a quarterly profit of $3.305 billion.

Bob Dudley, BP Group Chief Executive, said: “We have moved past many milestones in 2012, repositioning BP through divestments and bringing on new projects. This lays a solid foundation for growth into the long term. Moving through 2013 we will deliver further operational milestones and remain on track for delivery of our ten-point strategic plan, including our target for operating cash flow growth, by 2014.”

Operating cash flow in the fourth quarter of 2012 was $6.3 billion, and $20.4 billion for the full year compared to $22.2 billion in 2011. At the end of 2012, BP’s net debt was $27.5 billion — down from $31.5 billion at the end of the third quarter — representing a gearing level of 18.7%, within BP’s 10-20% target gearing range.

BP announced a quarterly dividend of 9c a share, to be paid in March.

In BP’s upstream, underlying production of oil and gas, excluding TNK-BP, in 2012 was broadly flat with 2011, in line with guidance. Fourth quarter production, excluding TNK-BP, was 2.29 million barrels of oil equivalent a day (mmboed), 7% lower than in 4Q 2011, with the impact of divestments, production sharing agreement effects and natural field declines partially offset by new production from major projects.

New upstream projects in 2013

BP expects four new major upstream projects to begin production by the end of 2013 — Angola LNG, North Rankin 2 in Australia, Na Kika 3 in the Gulf of Mexico, and the Chirag Oil project in Azerbaijan. A further six major projects are expected to come onstream through 2014. In addition, the major upgrade of the Whiting refinery in Indiana is expected to come online in the second half of 2013.

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February 5, 2013