Reuters today reports that the company also cheered shareholders with a 26% jump in its quarterly dividend to US8.5 cents.
But BP also rekindled general wider concerns about western oil firms’ ability to find sufficient new fields by failing to achieve 100% reserves replacement as measured under US Securities and Exchange Commission rules. BP said it achieved 89% reserves replacement.
BP said fourth-quarter proforma profit rose to US$3.646 billion and, by adding back non-operating charges of US$1.13 billion, its “clean” result was US$4.8 billion, 80% up on the corresponding 2003 quarter and ahead of the average forecast of US$4.6 billion.
BP’s full-year profits were over US$16 billion, just short of the UK corporate record of US$17.59 billion posted last week by Royal Dutch-Shell.
BP's EP division was the main driver of earnings, benefiting from higher prices and volumes, although analysts said its performance was slightly below expectations.
Group hydrocarbon production grew 11% in 2004 and BP said it was on track to meet its target of raising production in excess of 5% during 2004-2008, with projected 2005 production of 4.1-4.2 million barrels of oil per day.
In the past year, output growth has been driven by low-margin Russian production and investors are hoping BP can start to boost production from more profitable areas in 2005.
Company chief executive Lord John Browne said BP still expected its performance to be underpinned by oil prices above long-term trends in coming years, with oil prices likely to have a support level of around US$30 per barrel for at least the medium term.
