ANNUAL profits at oil giant BP dropped 21 per cent to US$13.4 billion (£8.3bn) last year. Earnings were hit by a fall in production after assets were sold off, as well as from weaker margins in its refining business. Fourth quarter underlying profits were also down, by 27 per cent, to US$2.8bn (£1.7bn). Markets had been expecting a fall and the figures were slightly better than expected. BP's profits were also hit by write-offs due to the failure of an exploration well in Brazil to encounter commercial quantities of oil or gas. Chief executive Bob Dudley said BP had delivered a "strong operating performance". It announced a fourth quarter dividend of 9.5 cents (5.8p) per share to be paid in March.