BP records 'one of the strongest years'

BP records 'one of the strongest years'

BP records 'one of the strongest years'

By comparison, a year earlier, it had a profit of 400 million Dollars, and in the third quarter of 2017 it was 1.9 billion USD.

"The results primarily reflected higher oil prices", the London-listed giant said. The group also said that 2017 saw a reduction in the number of process safety events for the fifth year running.

"The a year ago was one of the strongest in the BP's recent history", said the CEO of BP, Bob Dudley.

BP further reported that its exploration had delivered the most successful year for the company since 2004, while the group's upstream production jumped 12 percent. "And we did all this while maintaining safe and reliable operations", Dudley added. Gulf of Mexico oil spill payments in 2017 were $5.2 billion, compared with $6.9 billion in 2016.

The net profit for the year rose 2.5-times to 6.2 billion United States dollars from 2.6 billion USD in 2016.

Downstream earnings were very strong, with an underlying replacement cost profit of $7.0 billion, 24 percent higher than 2016.

Operational reliability was high, with refining availability and Upstream BP-operated plant reliability* both 95%.

Full-year production rose 12% to 2.47-million barrels per day (bpd) after BP launched seven new oil and gas fields in 2017, a record year.

BP invested $90 billion in the United States over the past decade, excluding $65 billion in fines and clean up costs over the 2010 Deepwater Horizon disaster, making it the country's biggest investor in the energy sector, Dudley said. Oil and gas realizations were 25% higher.

CFO Brian Gilvary thinks crude oil prices are "ahead of where we expected them to be" and sees Brent correcting to $50-$55/bbl by year-end, which will keep a tight rein on BP's spending, with this year's capital budget capped at $15B-$16B vs. $16.5B last year.

Performance, meanwhile, spilled over to shareholders in the form of a 10 cent quarterly dividend, payable March 29.

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