BP Plc Full-Year Profits Fall 28%


The shares of BP (LSE: BP) (NYSE: BP.US) fell 7p to 466p during early trade this morning after the energy giant today announced its fourth-quarter and yearly results.  

The FTSE 100 member, which operates in more than 80 countries and employs nearly 90,000 staff, reported underlying replacement cost profits for 2013 had dropped $4bn, or 28%, to $13bn.

The statement also revealed total profit for 2013 had doubled to $23bn, but was offset by one-off gains totalling $10bn.   

BP attributed the results to “weaker refining margins, and higher depreciation and exploration write-offs”.

Bob Dudley, BP’s chief executive, said:

“BP delivered strong operating performance throughout 2013, with increased asset reliability and major project delivery in both our Upstream and Downstream businesses. These achievements underpin our financial targets for 2014 and lay the foundation for continued growth in sustainable free cash flow.

“Capital discipline is central to BP’s strategy; making the right investment choices, sticking to our capital limits, and actively managing our portfolio in pursuit of long-term value.”

Mr Dudley added that shareholders could expect a fourth-quarter dividend payment of around 5.8p per share, up 5.8% on last year. The total dividend reported for 2013 was approximately 23p per share.

Following this morning’s price reaction, BP’s shares could offer investors a trailing dividend of 4.9%. 

Of course, whether that dividend income, today’s full-year results as well as the wider prospects for the energy sector both combine to make BP a ‘buy’ right now is something only you can decide.

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> Douglas does not own any share mentioned in this article.