The company recorded underlying replacement cost profits - the company's preferred measure - of £13.8bn (£11bn) during 2023.

That was down from the record $27.7bn (£22.1bn) sum achieved in 2022.

It was largely due to lower oil prices but remained its second highest figure since 2012.

The annual profit total was aided by a better than expected performance in the final quarter - boosted by stronger than anticipated gas trading.

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It helped the FTSE 100 firm reveal a 10% rise in its dividend for the three-month period to almost 7.3 cents per share.

A share buyback of a further $3.5bn will take place over the first half of 2024, the company said, adding that buybacks worth at least $14bn were planned over 2024-25.

BP is under pressure to keep its shareholders happy as its stock has lagged growth seen by rivals, including Shell.

Sky News has previously reported how its plans for the transition to clean energy were not universally welcomed by investors.

According to the Financial Times, a number of activist investors are demanding the company rows back on its plans.

Shares were up 6% in the wake of BP's update.

BP said it was committed to its strategy under new chief executive Murray Auchincloss, who was confirmed in the role on a permanent basis last month.

He was initially appointed interim CEO after the sudden departure of the architect of BP's push for the transition towards a green future, Bernard Looney.

He was forced out in September after misleading BP's board about personal relationships with colleagues.

Mr Auchincloss told investors: "Looking back, 2023 was a year of strong operational performance with real momentum in delivery right across the business.

"And as we look ahead, our destination remains unchanged... focused on growing the value of BP."

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Susannah Streeter, head of money and markets at Hargreaves Lansdown, said of the performance: "The priorities of BP's new chief executive Murray Auchincloss have been made clear.

"Although on appointment he pledged that BP's strategy to transition from an international oil company to an integrated energy company was unchanged, the big share buyback announcement shows the immediate focus is on boosting the share price and returning value to shareholders."

As ever with energy company profits, there was a backlash from climate campaigners.

The Global Witness group described the shareholder rewards as "reckless", saying the money would be better spent on securing zero emissions.

That assessment was echoed by the IPPR thinktank.

Its researcher, Joseph Evans, said: "BP has decided to prioritise its shareholders over investing in the green transition.

"With profits down on last year, you might expect BP's executives to be looking for profitable investments in the growing industries of the future, like renewable energy.

"Instead, they've chosen to enrich their investors. It's clear that BP and other fossil-fuel giants can't be trusted to drive the green transition."