The company has announced that the replacement cost profit for 2007 was $17.28 billion, down 22% when compared with $22.25 billion in 2006.
Net cash provided by operating activities for the fourth quarter and full year 2007 was $4.3 billion and $24.7 billion, respectively, compared with $5 billion and $28.2 billion in the preceding year.
The effective tax rate on replacement cost profit from continuing operations was 45% in the fourth quarter of 2007, compared with 25% in the same period of 2006. The rate for the full year 2007 was 37% while it was 35% in 2006.
BP said that the increased rate in the fourth quarter reflected the effect of inventory holding gains and losses, which were eliminated in the replacement cost profit, while the tax charge remained unadjusted and included the tax effect on inventory holding gains and losses. If this effect was excluded, the rate would have been 38% for the quarter in 2007 compared to 31% a year ago.
