"Our fourth quarter performance capped an excellent year for the company," said chairman and CEO Dave O'Reilly. "On the strength of our upstream operations and much-improved results from our downstream businesses, we achieved near-record profits in 2003.

"The sustained profit levels, along with strong cash flows and our positive outlook for the future, enabled us to raise the common stock dividend in the third quarter - maintaining an unbroken 16-year record of annual dividend payment increases," O'Reilly added.

An added bonus for the company was the success of its exploration and development sector which has yielded oil and gas reserves replacement exceeding 100% for the 11th consecutive year.

For the full year, net income was $7.2 billion ($6.96 per share - diluted), versus $1.1 billion ($1.07per share - diluted) in 2002.