Annual profits

BP sees annual profits more than double

BP saw profits more than double to US $ 12.7 billion (£ 9.7 billion) for 2018, after applauding a year of “transformative” deals.

Shares of the oil giant rose 4% after earnings beat expectations, with underlying earnings from replacement costs – BP’s preferred income measure – dropping from US $ 6.2 billion ( £ 4.8 billion) in 2017.

Its underlying fourth quarter profit also jumped 67% to US $ 3.5 billion (£ 2.7 billion), its recent takeover of US oil and shale gas assets from BHP Billiton. offsetting the drop in oil prices at the end of last year.

BP finalized the US $ 10.5 billion (£ 8.1 billion) BHP shale deal at the end of October.

Bob Dudley, CEO of BP Group, said: “We now have a solid track record of safe and reliable performance, efficient execution and capital discipline.

“And we’re doing it while growing the business – bringing more high-quality projects online, expanding downstream marketing, and making transformative deals like BHP.”

He added: “Our strategy clearly works and will serve the company and our shareholders well throughout the energy transition. “

The mainstay of the FTSE 100 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 its best annual profit in four years.

But BP has also embarked on a number of new projects, which have boosted production and are helping to counter the recent slowdown in the rise in oil prices.

The price of Brent crude has fallen sharply from its four-year highs of nearly US $ 87 per barrel in the fall to around US $ 63 amid fears of slowing demand as global growth continues to grow. slows, combined with rising inventories.

BP bosses recently said they believe oil prices will now remain stable at between $ 50 and $ 65 a barrel.

On a reported basis, BP’s annual profit reached US $ 10 billion (£ 7.7 billion) while fourth-quarter results showed it reached US $ 2.7 billion (2.1 billion pounds) versus 583 million US dollars (447 million pounds) loss a year earlier.

The group made an additional $ 3.2 billion (£ 2.5 billion) in payments in 2018 for the Deepwater Horizon tragedy in 2010, which killed 11 workers and triggered one of the biggest environmental disasters in the world history of the company.

BP’s total bill for the Gulf of Mexico oil spill reached US $ 67 billion (£ 51 billion) – but the group recently announced plans to pump an additional 100,000 barrels of oil per day from the region.

Annual results also showed it had made divestments of US $ 3.5 billion (£ 2.7 billion) in assets and the group announced plans to complete more than $ 10 billion. Americans (£ 7.7 billion) over the next two years.

BP said it expects recent major projects to ramp up production in 2019 as its pipeline of new projects around the world bears fruit.

He confirmed the payment of dividends to shareholders in the fourth quarter of 10.25 cents (7.85 pence) per share, up 2.5% from the previous year.

Nicholas Hyett, equity analyst at Hargreaves Lansdown, said: “What stands out at BP right now is its pipeline of new projects around the world – the benefits of which we saw in 2018.

“This shows few signs of slowing down, and with the group also moving into renewable and green technologies, BP has its eyes on the future.”

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