BP Share News (BP.)

- 2013 underlying RC profit falls to 13.43bn dollars, from 17.07bn dollars- Underlying production expected to fall in 2014- Capex guidance in line with 2013Oil major BP has reported a weaker bottom line for the fourth quarter, leading to a steep drop in underlying profits for 2013.The company also warned that underlying production in 2014 would be lower than last year due to divestments and a reduction of around 140,000 barrels of oil per day due to the expiry last month of the Abu Dhabi onshore concession.Production totalled 2.256bn barrels of oil per day in 2013, 2.7% lower than 2012. Underlying production rose by 3.2%.Group replacement cost (RC) profits, which excludes the impact of oil-price movements, totalled $23.68m last year, more than double the $11.43bn reported in 2012.However, on an underlying basis, RC profit dropped to $13.43bn in 2013, from $17.07bn previously. Underlying RC profit in the fourth quarter fell to $2.8bn from $3.9bn in the fourth quarter of 2012. BP said this was a result of its major divestment programme, weaker refining margins and higher exploration write-offs as it brought new projects online and increased investment in drilling.This was partially offset by strong growth in underlying oil and gas production, particularly from the North Sea, Angola and the Gulf of Mexico.Nevertheless, the company declared a quarterly dividend of 9.5 cents for the fourth quarter, up from 9.0 cents the year before.Organic capital expenditure is expected to be $24-25bn in 2014, compared with $24.6bn in 2013, and will remain in the $24-27bn range through to the end of the decade, BP said.The company has now completed its $38bn divestment programme and expects to divest a further $10bn of assets by the end of 2015.Chief Executive Bob Dudley said: "Capital discipline is central to BP's strategy; making the right investment choices, sticking to our capital limits, and actively managing our portfolio in pursuit of long-term value."BC