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* Shares up 2 percent
* CEO says reshaping impact will continue into 2013
By Andrew Callus
LONDON, Feb 5 (Reuters) - Shrinking British oil company BPPlc announced quarterly profit down a fifth from a yearago, after it sold assets in preparation for what could be itsbiggest oil spill payout when the case comes to trial later thismonth.
BP, the last of the big four western world oil companies toreport fourth quarter figures, still beat expectations becauseof one-off taxes related to its divestments and liabilitypayments, and its shares rose nearly 2 percent.
Once the world No. 2 but now the smallest of the four "oilmajors" by market value, BP turned in net profit adjusted fornon-operating items and accounting effects of $3.984 billiondown from $4.986 billion a year earlier.
Analysts had expected a figure of $3.305 billion, but theyhad warned that the result was hard to predict given thechanging nature of BP, and put the difference down to one-offtax effects. Before tax, underlying profit was $5.098 billiondown from $7.179 billion, broadly in line with forecasts.
The company has sold $37.8 billion worth of assets since theMacondo spill and taken a total charge against profits of $42.2billion - most of which has already been paid out incompensation and fines. It also expects to receive $12.3 billionthis year from the sale of its Russian interests to Rosneft along with a one-fifth stake in the state company.
More billions could flow out of the business this year,either via a settlement with U.S. authorities, or as a result ofa civil penalties trial that is due to begin on Feb. 25.
As a result of its trimming, BP's oil and gas output fell by7 percent in the quarter.
"We will continue to see the impact of this reshaping workin our reported results in 2013," said chief executive BobDudley. "By 2014, I expect the underlying financial momentum tobe strongly evident."
STOCK RECOVERY
The oil spill, which killed 11 men and leaked 5 millionbarrels of crude into the sea, has had a debilitating effect onBP's share price performance, as has a long-running dispute withits former partners in Russia which casts a shadow over itsprospects there.
The stock has recovered in recent weeks after the sales toRosneft last year, and as investors start to price in closure onthe spill. However, BP shares still trade and just 8.3 timespast earnings per share and 8.6 times predicted earnings pershare compared with 9.3 and 9.2 times respectively on averageamong its big rivals Exxon Mobil, Chevron andRoyal Dutch/Shell.
The company's stock was up 2.0 percent at 471 pence by 0930GMT on Tuesday, outperforming Shell which was up 0.5 percent.
BP expects four new major upstream projects to beginproduction by the end of 2013 -- Angola LNG, North Rankin 2 inAustralia, Na Kika 3 in the Gulf of Mexico, and the Chirag Oilproject in Azerbaijan.
A further six major projects are expected to come onstreamthrough 2014. In addition, the major upgrade of the Whitingrefinery in Indiana is expected to come online in the secondhalf of 2013, BP said.
Like its sector peers, BP is facing rising costs and isspending fast to keep production growing and to replacereserves. The company confirmed its prediction from Decemberthat organic capital expenditure would be $24-$25 billion in2013, up from $23 billion in 2012.
BP's dividend for the quarter was 9 cents, unchanged fromthe third quarter.
Exxon Mobil and Chevron reported results on Friday of lastweek. Royal Dutch/Shell's figures were releasedon Thursday. [ID:nL5N0B032D}
