BP (LON:BP.) has increased its dividend as it revealed it was back in profit in 2011.
The oil giant said that replacement profits increased to US$7.6 billion for the fourth quarter (Q4 2010 : US$4.6 billion), which will see the firm posts just shy of US$24 billion in profits for the full year.
It comes after a difficult 2010 in which the Gulf of Mexico oil lead to a near US$5 billion loss.
Today, BP said that a total of U$1 billion has been committed for the early restoration of natural resources following the Deepwater Horizon accident, while US$7.8 billion has now been paid to meet claims and government payments and a further US$15.1 billion has been paid into the Deepwater Horizon Oil Spill Trust fund.
Meanwhile the company is preparing to go to court in New Orleans on February 27.
"As I have said before, we are prepared to settle if we can do so on fair and reasonable terms, but equally, if this is not possible, we are preparing vigorously for trial," chief executive Bob Dudley said.
BP revealed that it generated around US$22 billion in operating cash flows during the year, which is a 60 per cent increase from last year. And due to high oil prices it expects cash flows will continue to grow.
Cash flows may be as much a 50 per cent higher still by 2014.
Some of the cash will be returned to shareholders. It confirmed today that it will increase the fourth quarter dividend by 14 per cent to 8 cents a share.
Meanwhile half of the cash will be re-invested, it said.
In the coming year BP plans to start six major upstream projects. It is also planning to drill twelve exploration wells.
"2012 will be a year of increasing investment and milestones as we build on the foundations laid last year,” Dudley added.
“As we move through 2013 and 2014, we expect financial momentum will build as we complete payments into the Gulf of Mexico Trust Fund, restore high-value production and bring new projects on stream."