BP reported that its underlying replacement cost profit in the fourth quarter of 2014 was $2.2 billion in contrast with $2.8 billion for the same period in 2013, while the full-year replacement cost profit declined from $13.4 billion to $12.1 billion year-on-year.
"Our focus must now be on resetting BP: managing and rebalancing our capital program and cost base for the new reality of lower prices while always maintaining safe, reliable and efficient operations," BP CEO Bob Dudley said as quoted in the statement.
According to the statement, BP is planning to cut its capital expenditures by over $4 billion to reach $6 billion in 2015. Some projects will be postponed.
World oil prices have fallen by almost 60 percent since June 2014 due to market oversupply. The price of a barrel of Brent crude, which peaked at about $115 in summer 2014, currently hovers around $50.
During a November 2014 meeting, the Organization of the Petroleum Exporting Countries (OPEC) announced it would not lower its oil production level, which might have stabilized prices.