BP 4Q Profits Up, But Shares Fall

By: Clean Skies News, Published: 02/02/10 2:13pm

British Petroleum has up and down news in its latest earnings report.

The British energy giant reports a net profit in the fourth quarter, spurred by increased oil and gas production and higher average oil prices.

But BP's shares fell more than 4 percent as the company's performance in refining was weaker than expected. Analysts say results demonstrate how big integrated oil companies are struggling to capitalize on higher oil prices because of a dire commercial environment in their refining businesses.

BP Chief Executive Tony Hayward said he expects the economic recovery this year to be "slow and gradual," so BP will continue to focus on improving upstream operational performance and reducing downstream costs.

BP trimmed its costs by $4 billion in 2009.

Overall, BP says it expects its oil and gas output to be lower in 2010 than 2009, but resume growth in 2011 in line with the company's target of a 1-2 percent annual increase.