BP gets lift from higher oil prices and increased production

LONDON (AP) - BP says fourth-quarter earnings jumped 65 percent as the London-based energy company benefited from higher oil prices and increased production.

The company said Tuesday that underlying replacement cost profit, the industry's preferred gauge of earnings, rose to $3.48 billion from $2.11 billion in the same period a year earlier. The figure excludes one-time items and fluctuations in the value of inventories.

Net income increased 28 times to $766 million.

Oil companies are profiting after cutting costs and selling assets to adjust to an era of lower oil prices - crude dropped below $30 a barrel in January 2016.

Brent crude, a benchmark, averaged $68.81 a barrel in the quarter, 12 percent higher than a year earlier.

BP's production increased 1.8 percent 2.63 million barrels of oil equivalent per day.