BP preparing 'vigorously' for oil spill lawsuits

LONDON Feb 6 (Reuters) - BP said it was preparing "vigorously" for lawsuits related to its Gulf of Mexico oil spill, which are due to start later this month, as it unveiled a rise in fourth quarter earnings on the back of higher oil prices.

Chief Executive Bob Dudley said BP was ready to settle on "fair and reasonable terms" but added he was also ready to fight.

Europe's second-largest oil group by market capitalisation added it would end payments into the $20 billion fund created to compensate those impacted by the United States' worst-ever offshore oil spill a year early after receiving contributions from its partners in the doomed Macondo well.

BP said it made a replacement cost (RC) net profit of $7.61 billion in the quarter, up from $4.61 billion in the same period last year.

Stripping out one-offs, the result was $4.99 billion, in line with an I/B/E/S consensus forecast of $4.89 billion, although one analyst said the result was flattered by a lower than expected tax rate