Higher Prices, Increased Production Raise BP's Profits

LONDON -- Surging crude oil prices and robust production from its Russian subsidiary pushed net profit at British energy giant BP Group plc 8.6 percent higher in the fourth quarter, reports the Associated Press.

The London-based oil company earned $2.53 billion for the final quarter of 2004, up from $2.33 billion a year earlier. Revenues rose 35 percent to $80.66 billion from $59.66 billion.

"Against the backdrop of strong oil demand, we have had a very successful year both operationally and financially," said CEO Sir John Browne. "Our strong cash flow is now reflecting the results of our significant investment program over the past few years and improvements in underlying performance in line with strategy."

BP's operating profit, which excludes losses or gains from the sale of assets or termination of operations, was $3.65 billion, up from $2.89 billion a year ago. That result included $1.1 billion in non-operating charges.

The company's production for the quarter was up more than 4 percent to 4,095 barrels per day, compared with a year ago, largely due to increased volumes from TNK-BP, the company's Russian subsidiary.

Refining margins slipped 60 cents per barrel from the third quarter to $5.60 per barrel, but were still the highest fourth-quarter margins for at least 15 years.

For the full year, BP's profits increased 50 percent to $15.73 billion, while revenues rose to $294.85 billion from $236.05 billion in 2003.

Total production for the year was 3,997 barrels per day, an increase of 10 percent on the previous year, but just short of the company's target of 4,000 barrels.