BP plc (LON: BP) reports 2012 profits of $22bn.
The shares of BP (LSE: BP) (NYSE: BP.US) edged 9p higher to 471p during early London trade this morning despite the oil major admitting its full-year profits had declined 19%.
BP, the third-largest constituent within the FTSE 100, said adjusted earnings on a replacement cost basis had dropped from $21.6bn to $17.6bn. The company added that its fourth-quarter profit calculated on the same basis fell by $1bn to $4bn.
BP claimed the earnings shortfall was due to lower downstream production following various asset sales made during the last year or two. Some 2.3 million barrels of oil were produced a day during 2012, down 6% on 2011.
Today's annual figures also included a further $5bn charge relating to the Gulf of Mexico oil spill, which took the aggregate cost recognised by BP to $42bn. Other figures of interest included net debt of $28bn and total capital expenditure of $23bn.
BP declared a $0.09 fourth-quarter dividend to match the higher payout set three months ago.
Bob Dudley, BP's 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."
BP's results revealed earnings of about 58p per share and suggested the current twelve-month dividend would be around 23p per share.
Those numbers place the shares on a P/E of 8 and yield of 5%.
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> Maynard does not own any share mentioned in this article.