BP share price: Group's annual profits surge as oil price recovers

By comparison, a year earlier, it had a profit of 400 million Dollars, and in the third quarter of 2017 it was 1.9 billion USD. Last week, Royal Dutch Shell announced its annual profits had surged to £8.5bn - a leap of 242% on the previous year. On an annual basis, BPs profits spiked to $US6.2 billion from $US2.6 billion in 2016. RC loss per ADS was $0.18, compared to profit of $0.02 a year ago.

Overall profit for the full year was USD3.39 billion compared to USD115.0 million in 2016.

"2017 was one of the strongest years in BP's recent history", BP Chief Executive Bob Dudley said in a statement.

"We delivered operationally and financially, with very strong earnings in the Downstream, Upstream production up 12%, and our finances rebalanced". "And we did all this while maintaining safe and reliable operations", Dudley added. Brent crude, a benchmark for worldwide oil prices, averaged $61.26 a barrel in the fourth quarter, up 24 percent from a year earlier. Output tallied 3.6mln barrels oil equivalent per day, including contributions for the company's stake in Rosneft.

Fourth-quarter oil and gas production rose 18 percent from a year earlier to 2.58 million barrels of oil equivalent a day. BP completed seven major project start-ups during 2017, capped off by bringing online Zohr in Egypt in December. Last week, the oil giant hadannounced that it hoped to double North Sea oil production to 200,000 barrels by 2020.

The results come one year after BP launched a five-year strategy aimed at returning the group to growth, as it continues to recover from the devastating 2010 oil spill catastrophe.

Sales and other operating revenues climbed to $67.82 billion from last year's $51.01 billion.

Operating cashflow amounted to $6.2bn and $24.1bn for the fourth quarter and the full year respectively.

While BP also fell victim to an under-performing refining business and booked another $1.7 billion charge related to the Macondo oil spill, the rapid rebound in its production was a bright spot.

  • Wendy Palmer