BP reports £11bn profits

Oil giant BP made profits of $22.25bn (£11.34bn/€17.2bn) during 2006, despite reporting a fall of 12% for the final three months of the year today.

The fourth quarter slide to $3.89bn (£1.98bn/€3bn) came as a result of pressure on refining margins and a disappointing production performance.

Higher oil prices meant the group still saw a 15% gain in annual profits, although the year was tarnished by a series of high-profile problems, including the temporary shutdown of its large Prudhoe Bay oil field in Alaska.

And chief executive Lord Browne announced last month that he would be standing down earlier than expected.

Production in the fourth quarter was hit by weather-related delays in Alaska, unusually low seasonal gas demand and Opec quota restrictions.

BP indicated that production rates were likely to remain flat in the coming year after it forecast output in the range of 3.8 to 3.9 million barrels of oil equivalent, compared with 3.93 million in 2006 and 4.01 million in 2005.

Looking further ahead, BP said it expected production of more than four million barrels by 2009 and more than 4.3 million barrels by 2012.