Oil giant BP saw profit fall in 2013 as lost income from asset sales hit.
Underlying replacement cost profit - which strips out one-off gains and the effect of oil price movements - was $13.4bn (£8.2bn) last year, down from $17.1bn in 2012.
BP said lost income from asset sales, weaker margins on refining and higher exploration write-offs were to blame. For the final three months of last year, BP said underlying replacement cost profit fell to $2.8bn from $3.9bn.
The result for the third quarter was just above average analyst forecasts for $2.7bn. Including the impact of the asset sales and one-off gains, BP said replacement cost profit for the year more than doubled to $23.7bn compared with $11.4bn in 2012.
This was largely thanks to the one-off gain from BP's $17bn sale of its interest in the joint venture TNK-BP, which it sold to Russia's Rosneft.
'Transformation under way'
BP has sold off $38bn worth of assets since the Deepwater Horizon oil spill in the Gulf of Mexico, helping it to fund compensation payouts. However, this sell-off has hit production.
BP said it expected reported production to be lower in 2014 due to the sales. The oil firm said in October it still plans to sell off a further $10bn worth of assets by the end of next year.
"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," said BP chief executive Bob Dudley.
Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said BP's results were in line with expectations and its transformation into "a more lean and focused business is well under way".
"Weaker refining margins accompanied higher writedowns as BP increased exploration, whilst the previously announced disposals programme has had an inevitable impact on earnings," he added.
bbc.co.uk
Underlying replacement cost profit - which strips out one-off gains and the effect of oil price movements - was $13.4bn (£8.2bn) last year, down from $17.1bn in 2012.
BP said lost income from asset sales, weaker margins on refining and higher exploration write-offs were to blame. For the final three months of last year, BP said underlying replacement cost profit fell to $2.8bn from $3.9bn.
The result for the third quarter was just above average analyst forecasts for $2.7bn. Including the impact of the asset sales and one-off gains, BP said replacement cost profit for the year more than doubled to $23.7bn compared with $11.4bn in 2012.
This was largely thanks to the one-off gain from BP's $17bn sale of its interest in the joint venture TNK-BP, which it sold to Russia's Rosneft.
'Transformation under way'
BP has sold off $38bn worth of assets since the Deepwater Horizon oil spill in the Gulf of Mexico, helping it to fund compensation payouts. However, this sell-off has hit production.
BP said it expected reported production to be lower in 2014 due to the sales. The oil firm said in October it still plans to sell off a further $10bn worth of assets by the end of next year.
"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," said BP chief executive Bob Dudley.
Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said BP's results were in line with expectations and its transformation into "a more lean and focused business is well under way".
"Weaker refining margins accompanied higher writedowns as BP increased exploration, whilst the previously announced disposals programme has had an inevitable impact on earnings," he added.
bbc.co.uk
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