BPs lubricant business profits decreased 20 percent to $311 million in the fourth quarter, down from $375 million during the year-earlier period.
The London-based company posted a 14 percent decrease in underlying replacement cost profit before interest and tax for its lubricant business during the full year to almost $1.3 billion.
The result for the quarter and full year reflects continued premium brand growth, more than offset by the adverse lag impact of increasing base oil prices, as well as adverse foreign exchange rate movements. Volumes in the fourth quarter were lower due to a planned systems implementation, the company stated in its stock exchange announcement.
Replacement cost refers to the replacement cost of inventories sold during the period, and is arrived at by excluding inventory holding gains and losses from profit or loss, according to BP.