BP reported stronger-than-anticipated full-year profits on Tuesday, citing a strong operating performance across all business segments.
The British oil giant said its underlying replacement cost profit, used as a proxy for net profit, came in at $12.7 billion in 2018. A company-provided consensus forecast had expected full-year underlying replacement cost profit of $11.88 billion.
"This is a really good quarter and, actually, the end of a great year for us," Bob Dudley, chief executive of BP, told CNBC's "Squawk Box Europe" on Tuesday.
"We've doubled our earnings from last year (and) we've doubled our returns from last year — that's what shareholders wanted to see," he added.
Shares of BP rose toward the top of the European benchmark Tuesday morning, up more than 3 percent.
BP's fourth-quarter profit jumped more than 65 percent when compared to the same period in 2017, following a sharp rise in oil and gas production and the acquisition of BHP's U.S. shale assets.
Here are the key takeaways:
Market participants saw large gains in energy shares over the first nine months of 2018 largely wiped out by a dramatic decline in crude futures in the fourth quarter.
The value of a barrel of Brent crude soared to a four-year high of $86 a barrel in early October, before collapsing to around $50 within weeks.
"It is part of a journey, returns will always move a bit with the oil price. So, if the oil price continues to go up then that number should go up as well," Dudley said.
When asked how he was expecting oil prices to perform this year, Dudley replied: "As we look it, it feels like the markets will be firmer. I couldn't predict the oil price but we are planning BP between $50 and $65."
Crude futures have hovered around $60 a barrel so far this year.