BP: Recovery will be 'slow and gradual'
BP: Recovery will be 'slow and gradual'
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Tuesday, 02, Feb 2010 09:02
By Sarah Garrod.
Oil giant BP has today said economic recovery in the US and Europe will be "slow and gradual" following its fourth quarter (Q4) results.
Posting the results on Tuesday, the oil producer said it had seen a 45 per cent fall in annual profit in 2009, compared to the year before, as oil and gas prices deflated.
BP cautioned 2010 could see output fall, compared to last year when oil and gas production rose four per cent, seeing the company continue "its industry-leading 17-year run of increasing reserves".
The oil giant said replacement cost profit for 2009 was $13.96 billion (£8.75 billion), down from $25.59 billion (£16.09 billion) in 2008.
Group chief executive Tony Hayward said 2009 had been a "very good" year for BP, exceeding many of the expectations he had set out for the company at the beginning of the year, despite the weak external environment.
"These results provide the clearest demonstration of the progress we have made and the momentum we have established in growing our business and making it more efficient," Mr Hayward said.
Looking forward, Mr Hayward said that BP expects recovery in the major economies of the US and Europe to be "slow and gradual".
"Our strategy remains the same: delivering profitable growth in the upstream; driving cost efficiency in the downstream and at the corporate centre; and investing with discipline and focus in alternative energy," he added.
"2009 has been one of the best years for BP and its shareholders since the merger with Amoco. But we are not resting on our laurels. There's a lot more to be done."
Shares in BP was down 4.56 per cent on the FTSE 100 in early trading on Tuesday as the markets reacted to today's results.