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Oil major BP reported a jump in profit in the fourth quarter of the year, as higher energy prices bolstered refining margins.
For the fourth quarter, underlying replacement cost profit was $4.07 billion, up from $115 million a year earlier, while pre-tax profit jumped to £4.04 billion from £1.09 billion last year.
Annual production fell 4.5% to 3.3 million barrels of oil per day year-year, with upstream output down about 6.6%
Capital expenditure in the fourth quarter and full year was $3.6 billion and $12.8 billion, respectively.
BP said it now expected capital expenditure of $14-to-$15 billion in 2022.
Based on BP's current forecasts, at around $60 per barrel Brent, the company expects to be able to deliver share buybacks of around $4.0 billion per annum and have capacity for an annual increase in the dividend per ordinary share of around 4% through 2025.
Looking ahead, the company forecast first-quarter 2022 upstream production to be lower than fourth-quarter 2021, and full year 2022 upstream production to be broadly flat compared with 2021.
We expect divestment and other proceeds for the year of $2-3 billion, the company said.
In a separate statement, BP said it expects investment in transition growth businesses to be over 40% of capex by 2025, and to increase the proportion of its capital expenditure in transition growth businesses to more than 40% by 2025 and around 50% by 2030.
These businesses are expected to generate earnings of $9-to-10 billion by 2030, driven by 'five transition growth engines - bioenergy, convenience, electric vehicle charging, renewables and hydrogen,' the company said.