BP reported a replacement-cost loss of $969 million for the fourth quarter of 2014, after taking a $3.6-billion post-tax net charge relating to impairments of upstream assets given the fall in oil prices. On an underlying basis, replacement cost profit came in at $2.2 billion, above analyst expectations of $1.5 billion.
The company said that organic capex was set to be around $20 billion in 2015, significantly lower than previous guidance of $24-26 billion. Capex for 2014 came in at $22.9 billion, lower than initial guidance of $24-25 billion.
Dudley attributed the cut in capex to both falling oil prices and the aftermath of its Deepwater Horizon spill in 2010.
"We needed to do it, one to rebase the costs and put BP in a world that might be $50 oil for some time," Dudley told CNBC on Tuesday.
"In addition, we were a very complicated company after our events in 2010. We overcomplicated it, we were simplifying the company anyway, were were going to be streamlining it, so these have come together."
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London-listed BP shares rose by around 3.5 percent in early trade after the company posted its results. They then fell back to trade around 2.6 percent higher on the day.