BP: Cash Flow and Dividend Rise, but Shares Slip

BP (BP) fell 1.7% early trading on Tuesday despite boosting its dividend by 14% and predicting a steady rise in cash flow.

BP posted $4.99 billion in earnings in the fourth quarter, against expectations for $4.89 billion. On a year over year basis, production fell 5%, but was up 5% from the third quarter. CEO Bob Dudley said he expects underlying production to be “broadly flat” in 2012.

By 2014, as long as oil prices stay around $100 per barrel, operating cash flow should rise by about 50%, Dudley predicted.

�2012 will be a year of increasing investment and milestones as we build on the foundations laid last year. 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.�

The company also boosted its dividend to 8 cents per share (48 cents per ADS), up from 7 cents. Before the Macondo spill last year, BP paid out 14 cents per share.