BP profits up 26%
Oil giant BP today announced annual profits of $16.2bn (£8.72bn / €12.7bn), a rise of 26% on last year.
BP added to the bumper profits haul from the oil industry today after reporting a surplus of $16.2bn (£8.72bn / €12.7bn) for 2004.
The figure, which is certain to heighten calls for the British government to impose a windfall tax, comes after Shell posted annual profits of £9.3bn (€13.5bn) - equivalent to more than £1m (€1.4m) an hour.
The soaring oil price lifted BP’s results performance, which chief executive Lord Browne described as being strong “both operationally and financially”.
In contrast to Shell, BP has avoided the crisis that saw its rival downgrade its book of proven oil and gas reserves five times in little more than a year.
And while Shell replaced between 15% and 25% of oil used in 2004, BP said it had more than replaced annual output for the 12th year running – by 106%.
The company also announced a “significant one-time step-change” in the level of dividend payments it planned to make to shareholders.
Citing the “strong prevailing circumstances of the group”, Lord Browne said the company would lift its fourth quarter dividend in dollar terms by 26% – the biggest single increase in recent history.
Despite the record profits figure of $16.2bn (€12.7bn), the performance was below the expectations of some City analysts.
The figure was 26% higher than last year and included profits of $3.65bn (£1.97bn / €2.9bn) for the final three months of 2004 – down on the $3.94bn (£2.12bn / €3bn) in the third quarter.
