BP Plc (BP/) , Europe ’s second-largest oil company, said fourth-quarter profit fell from a year earlier as output declined and refining margins weakened. Profit adjusted for one-time items and inventory changes dropped to $2.8 billion from $3.9 billion a year earlier, the London-based company said in a statement. That matched the average estimate of 12 analysts surveyed by Bloomberg. BP follows Royal Dutch Shell Plc (RDSA) and Exxon Mobil Corp., the two biggest oil companies by market value, in reporting lower earnings as the cost of drilling rises, refining profits slump and oil prices stagnate. Chief Executive Officer Bob Dudley has sold less profitable fields in the wake of the 2010 Gulf of Mexico spill and focused on profit margins rather than volume targets. “Capital discipline is central to BP’s strategy,” Dudley said in a statement. That’s “making the right investment choices, sticking to our capital limits, and […]