BP reveals profits boost

My Account
Logout

Create an Evening Standard Account

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Welcome! Sign in here

Use your social network

Save time by using your existing account to sign in to Evening Standard

We'll never share your information or post anything to your account without your permission

Forgot your password ?

Registration

* indicates fields that are mandatory

Email *

Password *

Confirm Password *

First name *

Surname *

Postcode *

Country *

Mobile phone number

Username *

Gender *

Year of birth *

When you sign up...

You will have access to all our online competitions, discounted offers and can post comments on our site.

You will also receive The Weekender newsletter sent every Thursday - it’s full of fantastic offers and ideas for the weekend. You can update your email preferences in your account page when you log in.

Other newsletters and emails

Homes & Property Newsletter - Yes I want to receive the weekly email with all the latest news on property in the capital

Occasionally we would also like to send you relevant emails detailing specific offers either from ourselves or carefully selected partners. If you would prefer not to receive these then please tick the appropriate boxes below. We will never pass on your details.

I do not want to receive additional offers and information from the Evening Standard

I do not want to receive additional offers and information sent by Evening Standard on behalf of carefully selected partners

Terms and Conditions

* I have read, understood and agree to be bound by the terms and conditions of Evening Standard

Registration

Mail Sent for Registration Confirmation.

A confirmation email has been sent. Please activate your account by clicking on the activation link sent in your mail box.

The oil major's shares fell as much as 5% as markets focused on a 24% drop in fourth-quarter profits to 2.6 billion US dollars (£1.8 billion), below most forecasts.

As developed economies slid into recession last year, oil demand fell by 500,000 barrels a day and is set to fall further this year, the firm said.

BP's average selling prices dropped by more than half to 52 dollars in the final three months of 2008 compared to 111 dollars between July and September as demand fell away.

As well as lower oil prices, BP also suffered from a higher tax bill and 700 million US dollars (£493 million) in one-off losses from its Russian joint venture, TNK-BP, which was dogged by political infighting last year.

Over the full year, BP gained from a spike in prices which hit a peak of almost 150 US dollars a barrel in July. Added to rival Royal Dutch Shell's European record of £22 billion in profit last week, the duo have gained a combined £40 billion haul from 2008.

But prices are currently hovering around the 40 dollars a barrel mark - below the 50 to 60 dollars a barrel break-even point suggested by BP. Chief executive Tony Hayward said: "I don't see the record financial performance repeated for some time."

The fourth-quarter results overshadowed a much-improved operational showing from BP, which has been hit by refining problems in recent years.

BP has rebuilt capacity at its Texas City and Whiting sites in the US. The availability of its refineries rose to 91% in the last three months of 2008 - the highest level for three years.

But Collins Stewart analyst Gordon Grey said: "BP has demonstrated a solid recovery from its recent operational problems, but we see significant challenges ahead in terms of the visibility of its growth post-2009 and its susceptibility to prolonged sub-40 dollars crude prices."