Top of
page 1
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FOR IMMEDIATE RELEASE
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London 29 October 2024
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BP
p.l.c. Group results
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Third quarter and nine months
2024
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"For a
printer friendly version of this announcement please click on the
link below to open a PDF version of the announcement"
http://www.rns-pdf.londonstockexchange.com/rns/9450J_1-2024-10-28.pdf
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Driving focus and efficiencies;
delivering resilient operations
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Financial summary
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Third
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Second
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Third
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Nine
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Nine
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quarter
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quarter
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quarter
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months
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months
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$ million
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2024
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2024
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2023
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2024
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2023
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Profit (loss) for the period
attributable to bp shareholders
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206
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(129)
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4,858
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2,340
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14,868
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Inventory holding (gains) losses*,
net of tax
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906
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113
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(1,212)
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362
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(211)
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Replacement cost (RC) profit
(loss)*
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1,112
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(16)
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3,646
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2,702
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14,657
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Net (favourable) adverse impact of
adjusting items*, net of tax
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1,155
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2,772
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(353)
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5,044
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(3,812)
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Underlying RC profit*
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2,267
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2,756
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3,293
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7,746
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10,845
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Operating cash flow*
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6,761
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8,100
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8,747
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19,870
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22,662
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Capital expenditure*
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(4,542)
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(3,691)
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(3,603)
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(12,511)
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(11,542)
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Divestment and other
proceeds(a)
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290
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760
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655
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1,463
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1,543
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Net issue (repurchase) of
shares(b)
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(2,001)
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(1,751)
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(2,047)
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(5,502)
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(6,568)
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Net debt*(c)
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24,268
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22,614
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22,324
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24,268
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22,324
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Adjusted EBITDA*
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9,654
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9,639
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10,306
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29,599
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33,142
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Announced dividend per ordinary
share (cents per share)
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8.000
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8.000
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7.270
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23.270
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21.150
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Underlying RC profit per ordinary
share* (cents)
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13.89
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16.61
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19.14
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46.79
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61.83
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Underlying RC profit per ADS*
(dollars)
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0.83
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1.00
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1.15
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2.81
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3.71
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Highlights
• Resilient operations:
3Q24 upstream production 2.4mmboe/d; 3Q24 refining
availability 95.6%.
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Focus and efficiencies: in
action to deliver at least $2 billion of sustainable cash cost*
savings.
• Growth and access:
Signed two memorandums of understanding to join
SOCAR in two exploration and development blocks offshore Azerbaijan
and to negotiate a material integrated redevelopment programme for
the Kirkuk region; Completed the bp Bunge Bioenergia and
Lightsource bp transactions in 4Q.
• Shareholder
distributions: Dividend per ordinary
share of 8 cents; $1.75 billion share buyback announced for 3Q24,
as part of our commitment to announce $3.5 billion for the second
half of 2024.
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We have made significant progress
since we laid out our six priorities earlier this year to make bp
simpler, more focused and higher value. In oil and gas, we see the
potential to grow through the decade with a focus on value over
volume. We also have a deep belief in the opportunity afforded by
the energy transition - we have established a number of leading
positions and will continue high-grading our investments to ensure
they compete with the rest of our business. I am absolutely clear
that the actions we are taking will grow the value of
bp.
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Murray Auchincloss
Chief executive officer
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(a)
Divestment proceeds are disposal proceeds as per the condensed
group cash flow statement. See page 3 for more information on other
proceeds.
(b) Third
quarter and nine months 2024 include $0.3 billion to offset the
expected dilution from the vesting of awards under employee share
schemes (third quarter 2023 $0.2 billion, nine months 2023 $0.7
billion).
(c)
See Note 9 for more information.
RC profit (loss), underlying RC
profit, net debt, adjusted EBITDA, underlying RC profit per
ordinary share and underlying RC profit per ADS are non-IFRS
measures. Inventory holding (gains) losses and adjusting items are
non-IFRS adjustments.
*
For items marked with an asterisk throughout this document,
definitions are provided in the Glossary on page
31.
Top of
page 2
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In the third quarter, we delivered
an underlying replacement cost profit* of $2.3 billion while
continuing to transform our business. We are in action to deliver
efficiencies and are confident in achieving at least $2 billion of
cash cost* savings by the end of 2026 relative to 2023. Our
financial frame is unchanged. Today, we are announcing a dividend
of 8 cents per share and a $1.75 billion share buyback as part of
our $3.5 billion commitment for the second half of
2024.
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Kate Thomson
Chief financial officer
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Highlights
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3Q24 underlying replacement cost (RC) profit $2.3
billion
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Underlying RC profit for the quarter
was $2.3 billion, compared with $2.8 billion for the previous
quarter. Compared with the second quarter 2024, the underlying
result reflects weaker realized refining margins, a weak oil
trading result and lower liquids realizations, partly offset by
higher gas realizations. The gas marketing and trading result was
average. The underlying effective tax rate (ETR)* in the quarter
was 42%.
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Reported profit for the quarter was
$0.2 billion, compared with a loss of $0.1 billion for the
second quarter 2024. The reported result for the third quarter is
adjusted for inventory holding losses* of $1.2 billion (pre-tax)
and a net adverse impact of adjusting items* of $1.6 billion
(pre-tax) to derive the underlying RC profit. Adjusting items
pre-tax include impairments of $1.7 billion (see Note 3) and
favourable fair value accounting effects* of $0.4 billion. See
page 27 for more information on adjusting items.
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Segment results
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Gas & low carbon energy: The RC
profit before interest and tax for the third quarter 2024 was
$1.0 billion, compared with a loss of $0.3 billion for
the previous quarter. After adjusting RC profit before interest and
tax for a net adverse impact of adjusting items of
$0.7 billion, the underlying RC profit before interest and
tax* for the third quarter was $1.8 billion, compared with
$1.4 billion in the second quarter 2024. The third quarter
underlying result before interest and tax is largely driven by
higher gas realizations. The gas marketing and trading result was
average.
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Oil production & operations: The
RC profit before interest and tax for the third quarter 2024 was
$1.9 billion, compared with $3.3 billion for the previous
quarter. After adjusting RC profit before interest and tax for a
net adverse impact of adjusting items of $0.9 billion, the
underlying RC profit before interest and tax for the third quarter
was $2.8 billion, compared with $3.1 billion in the
second quarter 2024. The third quarter underlying result before
interest and tax reflects lower liquids realizations and higher
exploration write-offs.
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Customers & products: The RC
profit before interest and tax for the third quarter 2024 was $23
million, compared with a loss of $0.1 billion for the previous
quarter. After adjusting RC profit before interest and tax for a
net adverse impact of adjusting items of $0.4 billion, the
underlying RC profit before interest and tax (underlying result)
for the third quarter was $0.4 billion, compared with $1.1 billion
in the second quarter 2024. The customers third quarter underlying
result was higher by $0.1 billion, reflecting broadly flat fuels
margins, seasonally higher volumes partly offset by costs. The
products third quarter underlying result was lower by $0.9 billion,
mainly reflecting weaker realized refining margins and a weak oil
trading contribution which was lower than the second
quarter.
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Operating cash flow* $6.8 billion and net debt* $24.3
billion
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Operating cash flow in the quarter
was $6.8 billion. This includes a working capital* release of $1.4
billion (after adjusting for inventory holding losses, fair value
accounting effects and other adjusting items), reflecting the
unwind of a working capital build in the first quarter, impact of
the price environment and timing of various payments (see page 28).
Net debt increased to $24.3 billion compared to the second quarter,
primarily driven by lower operating cash flow, higher capital
expenditures and lower divestment and other proceeds.
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Growing distributions within an unchanged financial
frame
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A resilient dividend is bp's first
priority within its disciplined financial frame, underpinned by a
cash balance point* of around $40 per barrel Brent, $11 per barrel
RMM and $3 per mmBtu Henry Hub (all 2021 real). For the third
quarter, bp has announced a dividend per ordinary share of 8
cents.
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bp is committed to maintaining a
strong balance sheet and strong investment grade credit rating.
Through the cycle, we are targeting to further improve our credit
metrics within an 'A' grade credit range.
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bp continues to invest with
discipline and a returns focused approach in our transition growth*
engines and in our oil, gas and refining businesses.
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The $1.75 billion share buyback
programme announced with the second quarter results was completed
on 25 October 2024. Related to the third quarter results, bp
intends to execute a $1.75 billion share buyback prior to reporting
the fourth quarter results. Furthermore, bp is committed to
announcing $1.75 billion for the fourth quarter of 2024. In
addition, our previous guidance for at least $14 billion of share
buybacks through 2025 at market conditions around bp's fourth
quarter 2023 results(a) and subject to maintaining a
strong investment grade credit rating, is currently unchanged,
although as part of the update to our medium term plans in February
2025, we intend to review elements of our financial guidance,
including our expectations for 2025 share buybacks.
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•
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In setting the dividend per ordinary
share and buyback each quarter, the board will continue to take
into account factors including the cumulative level of and outlook
for surplus cash flow, the cash balance point and maintaining a
strong investment grade credit rating.
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(a) 6
February 2024.
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The commentary above contains forward-looking statements and
should be read in conjunction with the cautionary statement on page
37.
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Top of
page 3
Financial results
In addition to the highlights on
page 2:
(b)
Profit attributable to bp shareholders in the
third quarter and nine months was $0.2 billion and
$2.3 billion respectively, compared with a profit of
$4.9 billion and $14.9 billion in the same periods of
2023.
- After
adjusting profit attributable to bp shareholders for inventory
holding losses or gains* and net impact of adjusting items*,
underlying replacement cost (RC) profit* for the third quarter and
nine months was $2.3 billion and $7.7 billion
respectively, compared with $3.3 billion and
$10.8 billion for the same periods of
2023. The underlying RC profit for the third quarter mainly
reflects lower refining margins and a weak oil trading contribution
compared with a very strong result in the same period of 2023. The
gas marketing and trading result for the quarter was average
compared with a weak result in the third quarter of 2023. For the
nine months, the reduction mainly reflects lower refining margins,
a lower gas marketing and trading result, a lower oil trading
contribution and lower realizations, partly offset by lower
taxation.
- Adjusting items in the third
quarter and nine months had a net adverse pre-tax impact of
$1.6 billion and $5.9 billion respectively, compared with
a net favourable pre-tax impact of $0.5 billion and
$3.8 billion in the same periods of 2023.
- Adjusting items include impacts of
fair value accounting effects*, relative to management's internal
measure of performance, which are a favourable pre-tax impact of
$0.4 billion for the third quarter and an adverse pre-tax impact of
$0.9 billion for the nine months, compared with a favourable
pre-tax impact of $1.5 billion and $6.8 billion in the
same periods of 2023. This is primarily due to an increase in the
forward price of LNG over the 2024 periods, compared to a decline
in the comparative periods of 2023. The third quarter 2024 is also
impacted by the favourable impact of the fair value accounting
effects relating to the hybrid bonds.
- Adjusting items for the third
quarter and nine months of 2024 include an adverse pre-tax impact
of asset impairments of $1.7 billion and
$3.7 billion respectively, compared with an adverse pre-tax impact
of $0.6 billion and $1.8 billion in the
same periods of 2023. Third quarter and nine months 2023 included a
$0.5 billion impairment charge recognized through equity-accounted
earnings relating to US offshore wind projects.
• The effective tax rate (ETR) on RC
profit or loss* for the third quarter and nine months was 51% and
59% respectively, compared with 33% and 32% for the same periods in
2023. Excluding adjusting items, the underlying ETR* for the third
quarter and nine months was 42% and 40%, compared with 33% and 39%
for the same periods a year ago. The higher underlying ETR for the
third quarter reflects changes in the geographical mix of profits
and the absence of adjustments in respect of prior periods. ETR on
RC profit or loss and underlying ETR are non-IFRS
measures.
• Operating cash flow* for the third
quarter and nine months was $6.8 billion and
$19.9 billion respectively, compared with $8.7 billion
and $22.7 billion for the same periods in 2023. The decrease
for the third quarter is driven by the lower underlying pre-tax
profit and lower working capital release, with the nine months
decrease driven by lower underlying pre-tax profit and working
capital build partly offset by lower tax payments.
• Capital expenditure* in the third
quarter and nine months was $4.5 billion and
$12.5 billion respectively, compared with $3.6 billion
and $11.5 billion in the same periods of 2023. Third quarter
and nine months 2024 include a $0.7-billion initial payment in
respect of German offshore wind. Nine months 2023 includes $1.1
billion in respect of the TravelCenters of America
acquisition.
• Total divestment and other
proceeds for the third quarter and nine months were
$0.3 billion and $1.5 billion respectively, compared with
$0.7 billion and $1.5 billion for
the same periods in 2023. There were no other proceeds for the
third quarter 2024. Other proceeds for the nine months 2024 were
$0.5 billion of proceeds from the sale of a 49% interest in a
controlled affiliate holding certain midstream assets offshore US.
Other proceeds for the third quarter and nine months of 2023 were
$0.5 billion of proceeds from the sale of a 49% interest in a
similar controlled affiliate holding certain midstream assets
onshore US.
• At the end of the third quarter,
net debt* was $24.3 billion, compared with $22.6 billion at
the end of the second quarter 2024 and $22.3 billion at the
end of the third quarter 2023 driven primarily by the impact of
weaker realized refining margins and by the rephasing of around $1
billion of divestment proceeds into the fourth quarter.
Top of
page 4
Analysis of RC profit (loss) before
interest and tax and reconciliation to profit (loss) for the
period
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Third
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Second
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Third
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Nine
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Nine
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quarter
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quarter
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quarter
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months
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months
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$
million
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2024
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2024
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2023
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2024
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2023
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RC
profit (loss) before interest and tax
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gas & low carbon
energy
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1,007
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(315)
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2,275
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1,728
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11,911
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oil production &
operations
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1,891
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3,267
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3,427
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8,218
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9,312
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customers & products
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23
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(133)
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1,549
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878
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4,784
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other businesses &
corporate
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653
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(180)
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(500)
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173
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(887)
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Consolidation adjustment -
UPII*
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65
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(73)
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(57)
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24
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(109)
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RC profit before interest and
tax
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3,639
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2,566
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6,694
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11,021
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25,011
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Finance costs and net finance
expense relating to pensions and other post-retirement
benefits
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(1,059)
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(1,176)
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(978)
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(3,269)
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(2,622)
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Taxation on a RC basis
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(1,304)
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(1,207)
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(1,859)
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(4,541)
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(7,156)
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Non-controlling interests
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(164)
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(199)
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(211)
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(509)
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(576)
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RC profit (loss) attributable to bp
shareholders*
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1,112
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(16)
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3,646
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2,702
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14,657
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Inventory holding gains
(losses)*
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(1,182)
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(136)
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1,593
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(467)
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261
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Taxation (charge) credit on
inventory holding gains and losses
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276
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23
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(381)
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105
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(50)
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Profit (loss) for the period
attributable to bp shareholders
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206
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(129)
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4,858
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2,340
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14,868
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Analysis of underlying RC profit
(loss) before interest and tax
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Third
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Second
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Third
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Nine
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Nine
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quarter
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quarter
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quarter
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months
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months
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$
million
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2024
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2024
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2023
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2024
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2023
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Underlying RC profit (loss) before interest and
tax
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gas & low carbon
energy
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1,756
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1,402
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1,256
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4,816
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6,945
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oil production &
operations
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2,794
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3,094
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3,136
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9,013
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9,232
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customers & products
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381
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1,149
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2,055
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2,819
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5,610
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other businesses &
corporate
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231
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(158)
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(303)
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(81)
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(769)
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Consolidation adjustment -
UPII
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65
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(73)
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(57)
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24
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(109)
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Underlying RC profit before interest
and tax
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5,227
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5,414
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6,087
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16,591
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20,909
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Finance costs and net finance
expense relating to pensions and other post-retirement
benefits
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(1,001)
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(971)
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(882)
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(2,914)
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(2,303)
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Taxation on an underlying RC
basis
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(1,795)
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(1,488)
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(1,701)
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(5,422)
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(7,185)
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Non-controlling interests
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(164)
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(199)
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(211)
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(509)
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(576)
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Underlying RC profit attributable to
bp shareholders*
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2,267
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2,756
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3,293
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7,746
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10,845
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Reconciliations of underlying RC
profit attributable to bp shareholders to the nearest equivalent
IFRS measure are provided on page 1 for the group and on pages 6-14
for the segments.
Operating Metrics
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Operating metrics
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Nine months
2024
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vs Nine
months 2023
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Tier 1 and tier 2 process safety events*
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35
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+6
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Reported recordable injury frequency*
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0.286
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+4.8%
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upstream* production(a) (mboe/d)
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2,378
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+3.0%
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upstream unit production costs*(b)
($/boe)
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6.25
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+6.3%
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bp-operated upstream plant reliability*
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95.3%
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-0.4
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bp-operated refining
availability*(a)
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94.1%
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-1.9
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(a)
See Operational updates on pages 6, 9 and 11. Because of rounding,
upstream production may not agree exactly with the sum of gas &
low carbon energy and oil production & operations.
(b) Mainly
reflecting portfolio mix.
Top of
page 5
Outlook & Guidance
4Q
2024 guidance
• Looking ahead, bp expects fourth
quarter 2024 reported upstream* production to be lower compared
with the third-quarter 2024.
• In its customers business, bp
expects seasonally lower volumes compared to the third quarter and
fuels margins to remain sensitive to movements in the cost of
supply.
• In products, bp expects realized
refining margins to remain low in the fourth quarter, albeit to
continue to remain sensitive to relative movements in product
cracks.
2024 guidance
In addition to the guidance on page
2:
• bp continues to expect both
reported and underlying upstream production* to be slightly higher
compared with 2023. Within this, bp continues to expect underlying
production from oil production & operations to be higher and
production from gas & low carbon energy to be lower.
• In its customers business, bp
continues to expect growth from convenience, including a full year
contribution from TravelCenters of America; a stronger contribution
from Castrol underpinned
by volume growth in focus markets; and continued margin growth from
bp pulse driven by higher energy sold. In addition, bp continues to
expect fuels margins to remain sensitive to the cost of
supply.
• In products, bp continues to
expect a lower level of industry refining margins relative to 2023,
with realized margins impacted by narrower North American heavy
crude oil differentials. bp continues to expect refinery turnaround
activity to have a lower financial impact compared to 2023,
reflecting the lower margin environment. Phasing of turnaround
activity in 2024 is heavily weighted towards the second half, with
the highest impact in the fourth quarter.
• bp now expects other businesses
& corporate underlying annual charge to be $0.3-0.4 billion for
2024.
• bp continues to expect the
depreciation, depletion and amortization to be slightly higher than
2023.
• bp continues to expect the
underlying ETR* for 2024 to be around 40% but it is sensitive to a
range of factors, including the volatility of the price environment
and its impact on the geographical mix of the group's profits and
losses.
• bp continues to expect capital
expenditure* for 2024 to be around $16 billion.
• bp now expects divestment and
other proceeds to be greater than $3 billion in 2024. Having
realized $19.2 billion of divestment and other proceeds since the
second quarter of 2020, bp continues to expect to reach $25 billion
of divestment and other proceeds between the second half of 2020
and 2025.
• During the fourth quarter, bp
completed the transactions to acquire a further 50% of the issued
ordinary shares of bp Bunge Bioenergia and 50.03% of the issued
ordinary shares of Lightsource bp (see Note 10) and now owns 100%
of the ordinary shares of both companies. Full earnings from both
companies will be included in bp's results from the date the
transactions complete and finance debt acquired is expected to be
approximately $3.7 billion.
• bp continues to expect Gulf of
Mexico settlement payments for the year to be around $1.2 billion
pre-tax including $1.1 billion pre-tax paid during the second
quarter.
bp expects to update on our
medium-term plans at the same time as our full year results in
February 2025.
|
The commentary above contains forward-looking statements and
should be read in conjunction with the cautionary statement on page
37.
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Top of
page 6
gas & low carbon
energy*
Financial results
• The replacement cost (RC) profit before interest and tax for
the third quarter and nine months was $1,007 million and $1,728
million respectively, compared with $2,275 million and $11,911
million for the same periods in 2023. The third quarter and nine
months are adjusted by an adverse impact of net adjusting items* of
$749 million and $3,088 million respectively, compared with a
favourable impact of net adjusting items of $1,019 million and
$4,966 million for the same periods in 2023. Adjusting items
include impacts of fair value accounting effects*, relative to
management's internal measure of performance, which are an adverse
impact of $275 million and $1,173 million for the third quarter and
nine months in 2024 and a favourable impact of $1,816 million and
$6,972 million for the same periods in 2023. Under IFRS, reported
earnings include the mark-to-market value of the hedges used to
risk-manage LNG contracts, but not of the LNG contracts themselves.
The underlying result includes the mark-to-market value of the
hedges but also recognizes changes in value of the LNG contracts
being risk managed. See page 27 for more information on adjusting
items.
•
After adjusting RC profit before interest and tax for adjusting
items, the underlying RC profit before interest and tax* for the
third quarter and nine months was $1,756 million and $4,816 million
respectively, compared with $1,256 million and $6,945 million for
the same periods in 2023.
• The
underlying RC profit before interest and tax for the third quarter
compared with the same period in 2023, reflects a lower
depreciation, depletion and amortization charge partly offset by
lower production. The gas marketing and trading result for the
quarter was average compared with a weak result in the third
quarter of 2023. The underlying RC profit before interest and tax
for the nine months, compared with the same period in 2023,
reflects a lower gas marketing and trading result, lower
realizations, lower production, higher exploration write-offs and
the foreign exchange loss in the first quarter, partly offset by a
lower depreciation, depletion and amortization charge.
Operational update
•
Reported production for the quarter was 890mboe/d, 6.0% lower than
the same period in 2023. Underlying production* was 4.0% lower,
mainly due to base decline, partially offset by major
projects*.
•
Reported production for the nine months was 901mboe/d, 4.1% lower
than the same period in 2023. Underlying production was 2.4% lower,
mainly due to reduced performance partially offset by major
projects ramp up.
•
Renewables pipeline* at the end of the quarter was 46.8GW (bp net),
including 20.5GW bp net share of Lightsource bp's (LSbp's)
pipeline. The renewables pipeline decreased by 11.5GW net during
the nine months following high-grading and focus of hydrogen and
CCUS projects. In addition, there is over 10GW (bp net) of early
stage opportunities in LSbp's hopper.
Strategic progress
gas
• On 1 August bp
announced it has completed the acquisition of GETEC ENERGIE GmbH, a
leading supplier of energy to commercial and industrial (C&I)
customers in Germany. Agreement for this deal was announced in
January 2024 and will accelerate the growth of bp's European gas
and power presence.
• On 27 August bp
announced it has agreed with EOG Resources Trinidad Limited (EOG)
to partner on the Coconut gas development. Coconut will be a 50/50
joint venture with EOG as operator. The final investment decision
has been taken by the joint venture partners and first gas is
expected in 2027.
• On 2 September bp
announced it has entered into an agreement with Perenco T&T to
sell four mature offshore gas fields and associated production
facilities in Trinidad & Tobago (Immortelle, Flamboyant,
Amherstia and Cashima). The deal will also include undeveloped
resources from the Parang area. Subject to government approval, the
deal is expected to complete by the end of 2024.
• On 16 September bp
announced it has agreed for Apollo-managed funds to purchase a
non-controlling stake in bp Pipelines TAP Limited, the bp
subsidiary that holds a 20% share in Trans Adriatic Pipeline AG
(TAP). Upon completion, bp will remain the controlling shareholder
of bp Pipelines TAP Limited.
low
carbon energy
• On 12 September bp
announced that bp and Iberdrola have taken a final investment
decision for construction of a 25MW green hydrogen project at bp's
Castellón refinery in Spain which is expected to be operational in
second half of 2026. The project will be developed by Castellón
Green Hydrogen S.L., a 50:50 joint venture between bp and
Iberdrola.
• On 16 September bp
announced plans to sell its existing US onshore wind energy
business and aims to bring together the development of onshore
renewable power projects through Lightsource bp. The sale comprises
10 operating onshore wind farms across seven US states with a
combined gross capacity of 1.7GW (1.3GW net to bp).
• On 24 October bp
announced it has completed its acquisition of the remaining 50.03%
interest in Lightsource bp, one of the world's leading developers
and operators of utility-scale solar and battery storage assets
operators.
Top of
page 7
gas & low carbon energy
(continued)
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$
million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Profit (loss) before interest and
tax
|
|
1,007
|
(315)
|
2,275
|
|
1,728
|
11,912
|
|
Inventory holding (gains)
losses*
|
|
-
|
-
|
-
|
|
-
|
(1)
|
|
RC profit (loss) before interest and
tax
|
|
1,007
|
(315)
|
2,275
|
|
1,728
|
11,911
|
|
Net (favourable) adverse impact of
adjusting items
|
|
749
|
1,717
|
(1,019)
|
|
3,088
|
(4,966)
|
|
Underlying RC profit before interest
and tax
|
|
1,756
|
1,402
|
1,256
|
|
4,816
|
6,945
|
|
Taxation on an underlying RC
basis
|
|
(545)
|
(369)
|
(448)
|
|
(1,432)
|
(1,984)
|
|
Underlying RC profit before
interest
|
|
1,211
|
1,033
|
808
|
|
3,384
|
4,961
|
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$
million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|
Total depreciation, depletion and
amortization
|
|
1,180
|
1,209
|
1,543
|
|
3,682
|
4,390
|
|
|
|
|
|
|
|
|
|
|
Exploration write-offs
|
|
|
|
|
|
|
|
|
Exploration write-offs
|
|
1
|
28
|
15
|
|
232
|
13
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA*
|
|
|
|
|
|
|
|
|
Total adjusted EBITDA
|
|
2,937
|
2,639
|
2,814
|
|
8,730
|
11,348
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure*
|
|
|
|
|
|
|
|
|
gas
|
|
1,188
|
869
|
833
|
|
2,696
|
2,177
|
|
low carbon energy
|
|
908
|
136
|
222
|
|
1,703
|
778
|
|
Total capital expenditure
|
|
2,096
|
1,005
|
1,055
|
|
4,399
|
2,955
|
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Production (net of
royalties)(a)
|
|
|
|
|
|
|
|
|
Liquids* (mb/d)
|
|
92
|
98
|
106
|
|
97
|
107
|
|
Natural gas (mmcf/d)
|
|
4,627
|
4,648
|
4,875
|
|
4,661
|
4,826
|
|
Total hydrocarbons*
(mboe/d)
|
|
890
|
899
|
946
|
|
901
|
940
|
|
|
|
|
|
|
|
|
|
|
Average realizations*(b)
|
|
|
|
|
|
|
|
|
Liquids ($/bbl)
|
|
74.80
|
79.92
|
76.69
|
|
77.23
|
76.51
|
|
Natural gas ($/mcf)
|
|
5.80
|
5.47
|
5.38
|
|
5.57
|
6.11
|
|
Total hydrocarbons
($/boe)
|
|
37.91
|
36.85
|
36.82
|
|
37.13
|
40.23
|
(a)
Includes bp's share of production of equity-accounted entities in
the gas & low carbon energy segment.
(b)
Realizations are based on sales by consolidated subsidiaries only -
this excludes equity-accounted entities.
Top of
page 8
gas & low carbon energy
(continued)
|
|
|
30
September
|
30 June
|
30
September
|
|
low
carbon energy(c)
|
|
2024
|
2024
|
2023
|
|
|
|
|
|
|
|
Renewables (bp net, GW)
|
|
|
|
|
|
Installed renewables
capacity*
|
|
2.8
|
2.7
|
2.5
|
|
|
|
|
|
|
|
Developed renewables to
FID*
|
|
6.6
|
6.5
|
6.1
|
|
Renewables pipeline
|
|
46.8
|
59.0
|
43.9
|
|
of
which by geographical area:
|
|
|
|
|
|
Renewables pipeline -
Americas
|
|
17.8
|
18.4
|
18.4
|
|
Renewables pipeline - Asia
Pacific
|
|
12.9
|
21.5
|
12.1
|
|
Renewables pipeline -
Europe
|
|
15.4
|
15.5
|
13.4
|
|
Renewables pipeline -
Other
|
|
0.7
|
3.5
|
-
|
|
of
which by technology:
|
|
|
|
|
|
Renewables pipeline - offshore
wind
|
|
9.6
|
9.6
|
9.3
|
|
Renewables pipeline - onshore
wind
|
|
6.7
|
12.7
|
6.1
|
|
Renewables pipeline -
solar
|
|
30.5
|
36.7
|
28.5
|
|
Total Developed renewables to FID and Renewables
pipeline
|
|
53.4
|
65.5
|
50.0
|
(c)
Because of rounding, some totals may not agree exactly with the sum
of their component parts.
Top of
page 9
oil production &
operations
Financial results
• The
replacement cost (RC) profit before interest and tax for the third
quarter and nine months was $1,891 million and $8,218 million
respectively, compared with $3,427 million and $9,312 million for
the same periods in 2023. The third quarter and nine months are
adjusted by an adverse impact of net adjusting items* of $903
million and $795 million respectively, compared with a favourable
impact of net adjusting items of $291 million and $80 million for
the same periods in 2023. See page 27 for more information on
adjusting items.
•
After adjusting RC profit before interest and tax for adjusting
items, the underlying RC profit before interest and tax* for the
third quarter and nine months was $2,794 million and $9,013 million
respectively, compared with $3,136 million and $9,232 million for
the same periods in 2023.
• The
underlying RC profit before interest and tax for the third quarter
and nine months, compared with the same periods in 2023, primarily
reflect increased depreciation charges, higher costs and higher
exploration write-offs partly offset by increased
volume.
Operational update
•
Reported production for the quarter was 1,488mboe/d, 7.7% higher
than the third quarter of 2023. Underlying production* for the
quarter was 6.8% higher compared with the third quarter of 2023
reflecting bpx energy performance and major projects* partly offset
by base performance and adverse weather conditions in the Gulf of
Mexico.
•
Reported production for the nine months was 1,477mboe/d, 7.8%
higher than the nine months of 2023. Underlying production for the
quarter was 7.5% higher compared with the nine months of 2023
reflecting bpx energy performance and major projects* partly offset
by base performance.
Strategic Progress
• The
Azeri and Chirag fields and the deepwater portion of the Gunashli
field (ACG) venture announced the signing of an addendum to the
existing production-sharing agreement (PSA)* which enables the
parties to progress the exploration, appraisal, development of and
production from the non-associated natural gas reservoirs of the
ACG field (bp operator with 30.37% equity).
• bp
and the State Oil Company of Azerbaijan Republic (SOCAR) signed a
memorandum of understanding announcing bp's intention to join SOCAR
in two exploration and development blocks in the Azerbaijan sector
of the Caspian Sea. The first block is the Karabagh oil field, the
second block is the Ashrafi - Dan Ulduzu - Aypara area, containing
a number of existing discoveries and prospective
structures.
•
Following on from the final investment decision on the Kaskida
project in the Gulf of Mexico, bp entered into agreements with
Enbridge Offshore Facilities LLC to construct, own and operate oil
and gas export pipelines to transport oil from Kaskida to the Green
Canyon 19 platform and gas to markets in Louisiana. bp also entered
into agreements with Shell Pipeline Company LP to transport oil
from Green Canyon 19 to markets in Louisiana via a new build
pipeline.
• bp
has signed a memorandum of understanding with the government of the
Republic of Iraq to negotiate a material integrated redevelopment
programme for the Kirkuk region, spanning oil and gas investment,
power generation and solar, together with wider exploration
activities.
• Aker
BP - Oil production has started from the Tyrving field in the
Alvheim area. Tyrving is operated by Aker BP (61.26% working
interest).The Tyrving development is part of the life extension of
the Alvheim field and is expected to increase production while
reducing both unit costs and, at just 0.3kg of CO2 per
barrel, emissions per barrel. Recoverable resources in Tyrving are
approximately 25 million barrels of oil equivalent (gross) (bp
15.9% holding in Aker BP).
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$
million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Profit before interest and
tax
|
|
1,889
|
3,268
|
3,426
|
|
8,216
|
9,312
|
|
Inventory holding (gains)
losses*
|
|
2
|
(1)
|
1
|
|
2
|
-
|
|
RC profit before interest and
tax
|
|
1,891
|
3,267
|
3,427
|
|
8,218
|
9,312
|
|
Net (favourable) adverse impact of
adjusting items
|
|
903
|
(173)
|
(291)
|
|
795
|
(80)
|
|
Underlying RC profit before interest
and tax
|
|
2,794
|
3,094
|
3,136
|
|
9,013
|
9,232
|
|
Taxation on an underlying RC
basis
|
|
(1,259)
|
(1,171)
|
(1,386)
|
|
(3,939)
|
(4,565)
|
|
Underlying RC profit before
interest
|
|
1,535
|
1,923
|
1,750
|
|
5,074
|
4,667
|
Top of
page 10
oil production & operations
(continued)
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$
million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|
Total depreciation, depletion and
amortization
|
|
1,708
|
1,698
|
1,432
|
|
5,063
|
4,129
|
|
|
|
|
|
|
|
|
|
|
Exploration write-offs
|
|
|
|
|
|
|
|
|
Exploration write-offs
|
|
309
|
99
|
59
|
|
411
|
352
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA*
|
|
|
|
|
|
|
|
|
Total adjusted EBITDA
|
|
4,811
|
4,891
|
4,627
|
|
14,487
|
13,713
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure*
|
|
|
|
|
|
|
|
|
Total capital expenditure
|
|
1,410
|
1,534
|
1,644
|
|
4,720
|
4,642
|
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Production (net of
royalties)(a)
|
|
|
|
|
|
|
|
|
Liquids* (mb/d)
|
|
1,084
|
1,085
|
1,011
|
|
1,075
|
1,005
|
|
Natural gas (mmcf/d)
|
|
2,348
|
2,292
|
2,155
|
|
2,335
|
2,118
|
|
Total hydrocarbons*
(mboe/d)
|
|
1,488
|
1,481
|
1,382
|
|
1,477
|
1,371
|
|
|
|
|
|
|
|
|
|
|
Average realizations*(b)
|
|
|
|
|
|
|
|
|
Liquids ($/bbl)
|
|
70.22
|
73.01
|
71.10
|
|
71.26
|
70.65
|
|
Natural gas ($/mcf)
|
|
2.25
|
2.02
|
3.44
|
|
2.32
|
4.37
|
|
Total hydrocarbons
($/boe)
|
|
53.65
|
55.78
|
56.76
|
|
54.51
|
57.86
|
(a)
Includes bp's share of production of equity-accounted entities in
the oil production & operations segment.
(b)
Realizations are based on sales by consolidated subsidiaries only -
this excludes equity-accounted entities.
Top of
page 11
customers & products
Financial results
• The
replacement cost (RC) profit before interest and tax for the third
quarter and nine months was $23 million and
$878 million respectively, compared with $1,549 million and $4,784
million for the same periods in 2023. The
third quarter and nine months are adjusted by an adverse impact of
net adjusting items* of $358 million and $1,941 million
respectively, mainly related to impairment of the Gelsenkirchen
refinery and associated onerous contract provisions, compared with
an adverse impact of net adjusting items of $506 million and $826
million for the same periods in 2023. See page 27 for more
information on adjusting items.
•
After adjusting RC profit before interest and tax for adjusting
items, the underlying RC profit before interest and tax*
(underlying result) for the third quarter and nine months was $381
million and $2,819 million respectively, compared with $2,055
million and $5,610 million for the same periods in 2023.
• The
customers & products underlying result for the third quarter
was significantly lower than the same period in 2023, primarily
reflecting lower refining margins and a weak oil trading
contribution compared with a very strong result in the same period
last year, partly offset by a higher customers result. The
customers & products underlying result for the nine months was
significantly lower than the same period in 2023, primarily
reflecting lower refining margins and a lower oil trading
contribution, partly offset by a higher customers
result.
• customers
- the customers underlying result for the third
quarter and nine months was higher compared with the same periods
in 2023, benefiting from higher retail fuels margins, a stronger
Castrol result driven by higher volumes and margins and favourable
foreign exchange movements. The underlying result was partly offset
by a weaker European midstream performance driven by biofuels
margins, lower retail volumes, and the continued impact of the US
freight recession on TravelCenters of America.
•
products - the
products underlying result for the third quarter and nine months
was significantly lower compared with the same periods in 2023. In
refining, the underlying result for the third quarter was mainly
impacted by lower industry refining margins, partly offset by
higher commercial optimization. The oil trading contribution for
the third quarter was weak, compared with the very strong result in
the same period last year. The underlying result for the nine
months was lower, primarily due to lower realized refining margins
and the first quarter plant-wide power outage at the Whiting
refinery, partly offset by a lower impact of turnaround activity.
The underlying oil trading result for the nine months was lower
than the same period last year.
Operational update
• bp-operated refining availability* for the third quarter and
nine months was 95.6% and 94.1%, compared with 96.3% and 96.0% for
the same periods in 2023, with the nine months lower mainly due to
the first quarter Whiting refinery power outage.
Strategic progress
• In
July, bp and Audi announced a new strategic partnership for Formula
1, including bp's development of the FIA defined advanced
sustainable fuel(a) for Audi's 2026 entry and Castrol's
development of lubricants and EV fluids for Audi's V6 turbo engine
and electric motor and battery. The collaboration also included
long-term sponsorship, making bp the first official partner of
Audi's future Formula 1 factory team.
• On 1
October, bp took full ownership of bp Bunge Bioenergia, one of
Brazil's leading biofuels-producing companies, with capacity to
produce around 50,000 barrels a day of ethanol equivalent from
sugarcane.
• EV
charge points* installed and energy sold in the first nine months
grew by around 20% and two-fold respectively, compared to the same
period last year, with energy sales now more than 1 TWh. bp
continues to grow its global charging network, announcing an
agreement in September with LAZ Parking, a privately owned parking
operator in the US to collaborate in the development, deployment,
and operation of ultra-fast(b) public charging hubs at
LAZ-managed locations; and in India, Jio-bp, our fuels and mobility
joint venture with Reliance, has now installed 5,000 charge points
across India.
• In
the third quarter, we continued to strengthen our convenience offer
for our US customers, expanding the number of products offered by
more than 50% in our recently launched private label brand
epic goods. epic goods is our own line of private
label consumer-packaged products for sale across our stores. In
addition, bp announced the launch of earnify a loyalty program designed to
provide customers with a seamless, integrated and rewarding
experience, including exclusive discounts on retail store products
and fuel purchases to around 5,500 bp, Amoco and ampm branded stores across the
US.
•
During the third quarter bp's Archaea Energy started up three
renewable natural gas (RNG) landfill plants with a total capacity
of more than 4 million mmBtu per annum, bringing the total to seven
RNG landfill plants started-up year to date, and expects to
commission a further eight plants this year.
(a)
For further details please refer to the press release dated 15 July
2024 on bp.com.
(b)
"ultra-fast" includes charger capacity of ≥150kW.
Top of
page 12
customers & products
(continued)
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$
million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Profit (loss) before interest and
tax
|
|
(1,157)
|
(270)
|
3,143
|
|
413
|
5,044
|
|
Inventory holding (gains)
losses*
|
|
1,180
|
137
|
(1,594)
|
|
465
|
(260)
|
|
RC profit (loss) before interest and
tax
|
|
23
|
(133)
|
1,549
|
|
878
|
4,784
|
|
Net (favourable) adverse impact of
adjusting items
|
|
358
|
1,282
|
506
|
|
1,941
|
826
|
|
Underlying RC profit before interest
and tax
|
|
381
|
1,149
|
2,055
|
|
2,819
|
5,610
|
|
Of which:(a)
|
|
|
|
|
|
|
|
|
customers - convenience &
mobility
|
|
897
|
790
|
670
|
|
2,057
|
1,762
|
|
Castrol - included in customers
|
|
216
|
211
|
185
|
|
611
|
517
|
|
products - refining &
trading
|
|
(516)
|
359
|
1,385
|
|
762
|
3,848
|
|
Taxation on an underlying RC
basis
|
|
(67)
|
(125)
|
(167)
|
|
(525)
|
(1,215)
|
|
Underlying RC profit before
interest
|
|
314
|
1,024
|
1,888
|
|
2,294
|
4,395
|
(a) A
reconciliation to RC profit before interest and tax by business is
provided on page 29.
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$
million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Adjusted EBITDA*(b)
|
|
|
|
|
|
|
|
|
customers - convenience &
mobility
|
|
1,410
|
1,281
|
1,151
|
|
3,545
|
3,032
|
|
Castrol - included in customers
|
|
261
|
253
|
228
|
|
740
|
641
|
|
products - refining &
trading
|
|
(66)
|
807
|
1,819
|
|
2,120
|
5,184
|
|
|
|
1,344
|
2,088
|
2,970
|
|
5,665
|
8,216
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|
Total depreciation, depletion and
amortization
|
|
963
|
939
|
915
|
|
2,846
|
2,606
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure*
|
|
|
|
|
|
|
|
|
customers - convenience &
mobility
|
|
455
|
497
|
435
|
|
1,518
|
2,345
|
|
Castrol - included in customers
|
|
50
|
74
|
60
|
|
167
|
172
|
|
products - refining &
trading
|
|
476
|
548
|
367
|
|
1,578
|
1,305
|
|
Total capital expenditure
|
|
931
|
1,045
|
802
|
|
3,096
|
3,650
|
(b) A
reconciliation to RC profit before interest and tax by business is
provided on page 29.
Top of
page 13
customers & products
(continued)
|
Retail(c)
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
bp retail sites* - total
(#)
|
|
21,200
|
21,200
|
21,150
|
|
21,200
|
21,150
|
|
Strategic convenience
sites*
|
|
2,950
|
2,950
|
2,750
|
|
2,950
|
2,750
|
(c)
Reported to the nearest 50.
|
Marketing sales of refined products (mb/d)
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
US
|
|
1,240
|
1,271
|
1,280
|
|
1,197
|
1,212
|
|
Europe
|
|
1,130
|
1,077
|
1,093
|
|
1,049
|
1,041
|
|
Rest of World
|
|
457
|
462
|
474
|
|
463
|
469
|
|
|
|
2,827
|
2,810
|
2,847
|
|
2,709
|
2,722
|
|
Trading/supply sales of refined
products
|
|
354
|
387
|
392
|
|
364
|
359
|
|
Total sales volume of refined
products
|
|
3,181
|
3,197
|
3,239
|
|
3,073
|
3,081
|
|
Refining marker margin*
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
bp average refining marker margin
(RMM) ($/bbl)
|
|
16.5
|
20.6
|
31.8
|
|
19.2
|
28.2
|
|
Refinery throughputs (mb/d)
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
US
|
|
671
|
670
|
690
|
|
622
|
671
|
|
Europe
|
|
769
|
722
|
760
|
|
774
|
773
|
|
Total refinery
throughputs
|
|
1,440
|
1,392
|
1,450
|
|
1,396
|
1,444
|
|
bp-operated refining availability* (%)
|
|
95.6
|
96.4
|
96.3
|
|
94.1
|
96.0
|
Top of
page 14
other businesses &
corporate
Other businesses & corporate
comprises technology, bp ventures, launchpad, regions, corporates
& solutions, our corporate activities & functions and any
residual costs of the Gulf of Mexico oil spill.
Financial results
• The
replacement cost (RC) profit before interest and tax for the third
quarter and nine months was $653 million and $173 million
respectively, compared with a loss of $500 million and $887 million
for the same periods in 2023. The third quarter and nine months are
adjusted by a favourable impact of net adjusting items* of $422
million and $254 million respectively, compared with an adverse
impact of net adjusting items of $197 million and $118 million for
the same periods in 2023. Adjusting items include impacts of fair
value accounting effects* which are a favourable impact of $494
million for the quarter and $272 million for the nine months in
2024, and an adverse impact of $146 million and a favourable impact
of $51 million for the same periods in
2023. See page 27 for more information on adjusting
items.
•
After adjusting RC profit before interest and tax for adjusting
items, the underlying RC profit or loss before interest and tax*
for the third quarter and nine months was a profit of $231 million
and a loss of $81 million respectively, compared with a loss of
$303 million and $769 million for the same periods in
2023.
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$
million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Profit (loss) before interest and
tax
|
|
653
|
(180)
|
(500)
|
|
173
|
(887)
|
|
Inventory holding (gains)
losses*
|
|
-
|
-
|
-
|
|
-
|
-
|
|
RC profit (loss) before interest and
tax
|
|
653
|
(180)
|
(500)
|
|
173
|
(887)
|
|
Net (favourable) adverse impact of
adjusting items(a)
|
|
(422)
|
22
|
197
|
|
(254)
|
118
|
|
Underlying RC profit (loss) before
interest and tax
|
|
231
|
(158)
|
(303)
|
|
(81)
|
(769)
|
|
Taxation on an underlying RC
basis
|
|
(64)
|
3
|
162
|
|
38
|
201
|
|
Underlying RC profit (loss) before
interest
|
|
167
|
(155)
|
(141)
|
|
(43)
|
(568)
|
(a)
Includes fair value accounting effects relating to hybrid bonds.
See page 32 for more information.
Top of
page 15
Financial statements
Group income statement
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$
million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
|
|
|
|
|
|
|
|
|
Sales and other operating revenues
(Note 5)
|
|
47,254
|
47,299
|
53,269
|
|
143,433
|
157,989
|
|
Earnings from joint
ventures - after interest and tax
|
|
406
|
250
|
(198)
|
|
834
|
357
|
|
Earnings from
associates - after interest and tax
|
|
280
|
266
|
271
|
|
844
|
675
|
|
Interest and other income
|
|
438
|
414
|
410
|
|
1,233
|
1,036
|
|
Gains on sale of businesses and
fixed assets
|
|
(48)
|
21
|
264
|
|
197
|
389
|
|
Total revenues and other
income
|
|
48,330
|
48,250
|
54,016
|
|
146,541
|
160,446
|
|
Purchases
|
|
30,139
|
28,891
|
29,951
|
|
86,677
|
88,245
|
|
Production and manufacturing
expenses
|
|
5,004
|
6,692
|
6,080
|
|
18,543
|
19,293
|
|
Production and similar
taxes
|
|
469
|
484
|
456
|
|
1,397
|
1,334
|
|
Depreciation, depletion and
amortization (Note 6)
|
|
4,117
|
4,098
|
4,145
|
|
12,365
|
11,868
|
|
Net impairment and losses on sale of
businesses and fixed assets (Note 3)
|
|
1,842
|
1,309
|
542
|
|
3,888
|
1,899
|
|
Exploration expense
|
|
372
|
179
|
97
|
|
798
|
496
|
|
Distribution and administration
expenses
|
|
3,930
|
4,167
|
4,458
|
|
12,319
|
12,039
|
|
Profit (loss) before interest and
taxation
|
|
2,457
|
2,430
|
8,287
|
|
10,554
|
25,272
|
|
Finance costs
|
|
1,101
|
1,216
|
1,039
|
|
3,392
|
2,802
|
|
Net finance (income) expense
relating to pensions and other post-retirement benefits
|
|
(42)
|
(40)
|
(61)
|
|
(123)
|
(180)
|
|
Profit (loss) before
taxation
|
|
1,398
|
1,254
|
7,309
|
|
7,285
|
22,650
|
|
Taxation
|
|
1,028
|
1,184
|
2,240
|
|
4,436
|
7,206
|
|
Profit (loss) for the
period
|
|
370
|
70
|
5,069
|
|
2,849
|
15,444
|
|
Attributable to
|
|
|
|
|
|
|
|
|
bp shareholders
|
|
206
|
(129)
|
4,858
|
|
2,340
|
14,868
|
|
Non-controlling interests
|
|
164
|
199
|
211
|
|
509
|
576
|
|
|
|
370
|
70
|
5,069
|
|
2,849
|
15,444
|
|
|
|
|
|
|
|
|
|
|
Earnings per share (Note 7)
|
|
|
|
|
|
|
|
|
Profit (loss) for the period
attributable to bp shareholders
|
|
|
|
|
|
|
|
|
Per ordinary share
(cents)
|
|
|
|
|
|
|
|
|
Basic
|
|
1.26
|
(0.78)
|
28.24
|
|
14.19
|
84.77
|
|
Diluted
|
|
1.23
|
(0.78)
|
27.59
|
|
13.83
|
82.99
|
|
Per ADS (dollars)
|
|
|
|
|
|
|
|
|
Basic
|
|
0.08
|
(0.05)
|
1.69
|
|
0.85
|
5.09
|
|
Diluted
|
|
0.07
|
(0.05)
|
1.66
|
|
0.83
|
4.98
|
Top of
page 16
Condensed group statement of
comprehensive income
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$
million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) for the
period
|
|
370
|
70
|
5,069
|
|
2,849
|
15,444
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
Items that may be reclassified
subsequently to profit or loss
|
|
|
|
|
|
|
|
|
Currency translation
differences
|
|
838
|
(142)
|
(590)
|
|
248
|
(126)
|
|
Exchange (gains) losses on
translation of foreign operations reclassified to gain or loss on
sale of businesses and fixed assets
|
|
-
|
-
|
(2)
|
|
-
|
(2)
|
|
Cash flow hedges and costs of
hedging
|
|
(111)
|
(100)
|
(56)
|
|
(326)
|
434
|
|
Share of items relating to
equity-accounted entities, net of tax
|
|
(41)
|
10
|
25
|
|
(39)
|
(205)
|
|
Income tax relating to items that
may be reclassified
|
|
91
|
40
|
(69)
|
|
127
|
(74)
|
|
|
|
777
|
(192)
|
(692)
|
|
10
|
27
|
|
Items that will not be reclassified
to profit or loss
|
|
|
|
|
|
|
|
|
Remeasurements of the net pension
and other post-retirement benefit liability or asset
|
|
(51)
|
(240)
|
(111)
|
|
(357)
|
(1,053)
|
|
Remeasurements of equity
investments
|
|
(8)
|
(17)
|
-
|
|
(38)
|
-
|
|
Cash flow hedges that will
subsequently be transferred to the balance sheet
|
|
10
|
-
|
(1)
|
|
7
|
(1)
|
|
Income tax relating to items that
will not be reclassified(a)
|
|
12
|
59
|
57
|
|
745
|
388
|
|
|
|
(37)
|
(198)
|
(55)
|
|
357
|
(666)
|
|
Other comprehensive
income
|
|
740
|
(390)
|
(747)
|
|
367
|
(639)
|
|
Total comprehensive
income
|
|
1,110
|
(320)
|
4,322
|
|
3,216
|
14,805
|
|
Attributable to
|
|
|
|
|
|
|
|
|
bp shareholders
|
|
922
|
(520)
|
4,140
|
|
2,705
|
14,241
|
|
Non-controlling interests
|
|
188
|
200
|
182
|
|
511
|
564
|
|
|
|
1,110
|
(320)
|
4,322
|
|
3,216
|
14,805
|
(a)
Nine months 2024 includes a $658-million credit in respect of the
reduction in the deferred tax liability on defined benefit pension
plan surpluses following the reduction in the rate of the
authorized surplus payments tax charge in the UK from 35% to
25%.
Top of
page 17
Condensed group statement of changes
in equity
|
|
|
bp
shareholders'
|
Non-controlling
interests
|
Total
|
|
$
million
|
|
equity
|
Hybrid
bonds
|
Other
interest
|
equity
|
|
At 1 January 2024
|
|
70,283
|
13,566
|
1,644
|
85,493
|
|
|
|
|
|
|
|
|
Total comprehensive
income
|
|
2,705
|
470
|
41
|
3,216
|
|
Dividends
|
|
(3,739)
|
-
|
(282)
|
(4,021)
|
|
Cash flow hedges transferred to the
balance sheet, net of tax
|
|
(8)
|
-
|
-
|
(8)
|
|
Repurchase of ordinary share
capital
|
|
(5,554)
|
-
|
-
|
(5,554)
|
|
Share-based payments, net of
tax
|
|
903
|
-
|
-
|
903
|
|
Issue of perpetual hybrid
bonds(a)
|
|
(4)
|
1,300
|
-
|
1,296
|
|
Redemption of perpetual hybrid
bonds, net of tax(a)
|
|
9
|
(1,300)
|
-
|
(1,291)
|
|
Payments on perpetual hybrid
bonds
|
|
-
|
(520)
|
-
|
(520)
|
|
Transactions involving
non-controlling interests, net of tax
|
|
231
|
-
|
201
|
432
|
|
At 30 September 2024
|
|
64,826
|
13,516
|
1,604
|
79,946
|
|
|
|
|
|
|
|
|
|
|
bp
shareholders'
|
Non-controlling
interests
|
Total
|
|
$
million
|
|
equity
|
Hybrid
bonds
|
Other
interest
|
equity
|
|
At 1 January 2023
|
|
67,553
|
13,390
|
2,047
|
82,990
|
|
|
|
|
|
|
|
|
Total comprehensive
income
|
|
14,241
|
438
|
126
|
14,805
|
|
Dividends
|
|
(3,598)
|
-
|
(326)
|
(3,924)
|
|
Repurchase of ordinary share
capital
|
|
(6,666)
|
-
|
-
|
(6,666)
|
|
Share-based payments, net of
tax
|
|
531
|
-
|
-
|
531
|
|
Issue of perpetual hybrid
bonds
|
|
(1)
|
163
|
-
|
162
|
|
Payments on perpetual hybrid
bonds
|
|
(5)
|
(494)
|
-
|
(499)
|
|
Transactions involving
non-controlling interests, net of tax
|
|
363
|
-
|
(86)
|
277
|
|
At 30 September 2023
|
|
72,418
|
13,497
|
1,761
|
87,676
|
(a)
During the first quarter 2024 BP Capital Markets PLC issued $1.3
billion of US dollar perpetual subordinated hybrid bonds with a
coupon fixed for an initial period up to 2034 of 6.45% and
voluntarily bought back $1.3 billion of the non-call 2025 4.375% US
dollar hybrid bond issued in 2020. Taken together these
transactions had no significant impact on net debt or
gearing.
Top of
page 18
Group balance sheet
|
|
|
30
September
|
31 December
|
|
$
million
|
|
2024
|
2023
|
|
Non-current assets
|
|
|
|
|
Property, plant and
equipment
|
|
99,555
|
104,719
|
|
Goodwill
|
|
12,873
|
12,472
|
|
Intangible assets
|
|
10,626
|
9,991
|
|
Investments in joint
ventures
|
|
12,446
|
12,435
|
|
Investments in associates
|
|
7,932
|
7,814
|
|
Other investments
|
|
1,340
|
2,189
|
|
Fixed assets
|
|
144,772
|
149,620
|
|
Loans
|
|
2,270
|
1,942
|
|
Trade and other
receivables
|
|
2,270
|
1,767
|
|
Derivative financial
instruments
|
|
11,849
|
9,980
|
|
Prepayments
|
|
1,419
|
623
|
|
Deferred tax assets
|
|
5,478
|
4,268
|
|
Defined benefit pension plan
surpluses
|
|
7,968
|
7,948
|
|
|
|
176,026
|
176,148
|
|
Current assets
|
|
|
|
|
Loans
|
|
220
|
240
|
|
Inventories
|
|
21,493
|
22,819
|
|
Trade and other
receivables
|
|
26,133
|
31,123
|
|
Derivative financial
instruments
|
|
6,358
|
12,583
|
|
Prepayments
|
|
1,149
|
2,520
|
|
Current tax receivable
|
|
1,153
|
837
|
|
Other investments
|
|
167
|
843
|
|
Cash and cash equivalents
|
|
34,595
|
33,030
|
|
|
|
91,268
|
103,995
|
|
Assets classified as held for sale
(Note 2)
|
|
2,414
|
151
|
|
|
|
93,682
|
104,146
|
|
Total assets
|
|
269,708
|
280,294
|
|
Current liabilities
|
|
|
|
|
Trade and other payables
|
|
54,385
|
61,155
|
|
Derivative financial
instruments
|
|
3,762
|
5,250
|
|
Accruals
|
|
5,818
|
6,527
|
|
Lease liabilities
|
|
2,726
|
2,650
|
|
Finance debt
|
|
4,484
|
3,284
|
|
Current tax payable
|
|
1,706
|
2,732
|
|
Provisions
|
|
4,106
|
4,418
|
|
|
|
76,987
|
86,016
|
|
Liabilities directly associated with
assets classified as held for sale (Note 2)
|
|
32
|
62
|
|
|
|
77,019
|
86,078
|
|
Non-current liabilities
|
|
|
|
|
Other payables
|
|
9,063
|
10,076
|
|
Derivative financial
instruments
|
|
12,303
|
10,402
|
|
Accruals
|
|
1,197
|
1,310
|
|
Lease liabilities
|
|
8,292
|
8,471
|
|
Finance debt
|
|
52,986
|
48,670
|
|
Deferred tax liabilities
|
|
8,950
|
9,617
|
|
Provisions
|
|
14,649
|
14,721
|
|
Defined benefit pension plan and
other post-retirement benefit plan deficits
|
|
5,303
|
5,456
|
|
|
|
112,743
|
108,723
|
|
Total liabilities
|
|
189,762
|
194,801
|
|
Net assets
|
|
79,946
|
85,493
|
|
Equity
|
|
|
|
|
bp shareholders' equity
|
|
64,826
|
70,283
|
|
Non-controlling interests
|
|
15,120
|
15,210
|
|
Total equity
|
|
79,946
|
85,493
|
Top of
page 19
Condensed group cash flow
statement
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$
million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Operating activities
|
|
|
|
|
|
|
|
|
Profit (loss) before
taxation
|
|
1,398
|
1,254
|
7,309
|
|
7,285
|
22,650
|
|
Adjustments to reconcile profit
(loss) before taxation to net cash provided by operating
activities
|
|
|
|
|
|
|
|
|
Depreciation, depletion and
amortization and exploration expenditure written off
|
|
4,427
|
4,225
|
4,219
|
|
13,008
|
12,233
|
|
Net impairment and (gain) loss on
sale of businesses and fixed assets
|
|
1,890
|
1,288
|
278
|
|
3,691
|
1,510
|
|
Earnings from equity-accounted
entities, less dividends received
|
|
(196)
|
19
|
421
|
|
(273)
|
391
|
|
Net charge for interest and other
finance expense, less net interest paid
|
|
324
|
524
|
136
|
|
1,040
|
301
|
|
Share-based payments
|
|
278
|
507
|
298
|
|
946
|
519
|
|
Net operating charge for pensions
and other post-retirement benefits, less contributions and benefit
payments for unfunded plans
|
|
(52)
|
(34)
|
(40)
|
|
(118)
|
(130)
|
|
Net charge for provisions, less
payments
|
|
(48)
|
764
|
(342)
|
|
33
|
(1,662)
|
|
Movements in inventories and other
current and non-current assets and liabilities
|
|
1,798
|
1,556
|
(783)
|
|
1,223
|
(5,280)
|
|
Income taxes paid
|
|
(3,058)
|
(2,003)
|
(2,749)
|
|
(6,965)
|
(7,870)
|
|
Net cash provided by operating
activities
|
|
6,761
|
8,100
|
8,747
|
|
19,870
|
22,662
|
|
Investing activities
|
|
|
|
|
|
|
|
|
Expenditure on property, plant and
equipment, intangible and other assets
|
|
(4,223)
|
(3,463)
|
(3,456)
|
|
(11,404)
|
(10,038)
|
|
Acquisitions, net of cash
acquired
|
|
(218)
|
(116)
|
(9)
|
|
(440)
|
(761)
|
|
Investment in joint
ventures
|
|
(76)
|
(95)
|
(102)
|
|
(524)
|
(692)
|
|
Investment in associates
|
|
(25)
|
(17)
|
(36)
|
|
(143)
|
(51)
|
|
Total cash capital
expenditure
|
|
(4,542)
|
(3,691)
|
(3,603)
|
|
(12,511)
|
(11,542)
|
|
Proceeds from disposal of fixed
assets
|
|
16
|
35
|
59
|
|
117
|
102
|
|
Proceeds from disposal of
businesses, net of cash disposed
|
|
274
|
219
|
79
|
|
840
|
924
|
|
Proceeds from loan
repayments
|
|
19
|
24
|
12
|
|
59
|
39
|
|
Cash provided from investing
activities
|
|
309
|
278
|
150
|
|
1,016
|
1,065
|
|
Net cash used in investing
activities
|
|
(4,233)
|
(3,413)
|
(3,453)
|
|
(11,495)
|
(10,477)
|
|
Financing activities
|
|
|
|
|
|
|
|
|
Net issue (repurchase) of shares
(Note 7)
|
|
(2,001)
|
(1,751)
|
(2,047)
|
|
(5,502)
|
(6,568)
|
|
Lease liability payments
|
|
(703)
|
(679)
|
(663)
|
|
(2,076)
|
(1,838)
|
|
Proceeds from long-term
financing
|
|
2,401
|
2,736
|
8
|
|
7,396
|
6,046
|
|
Repayments of long-term
financing
|
|
(956)
|
(623)
|
(264)
|
|
(2,253)
|
(3,891)
|
|
Net increase (decrease) in
short-term debt
|
|
(73)
|
49
|
(71)
|
|
(8)
|
(948)
|
|
Issue of perpetual hybrid
bonds(a)
|
|
-
|
-
|
30
|
|
1,296
|
162
|
|
Redemption of perpetual hybrid
bonds(a)
|
|
-
|
-
|
-
|
|
(1,288)
|
-
|
|
Payments relating to perpetual
hybrid bonds
|
|
(271)
|
(271)
|
(258)
|
|
(798)
|
(744)
|
|
Payments relating to transactions
involving non-controlling interests (Other interest)
|
|
-
|
-
|
-
|
|
-
|
(180)
|
|
Receipts relating to transactions
involving non-controlling interests (Other interest)
|
|
(7)
|
508
|
527
|
|
517
|
536
|
|
Dividends paid - bp
shareholders
|
|
(1,297)
|
(1,204)
|
(1,249)
|
|
(3,720)
|
(3,585)
|
|
- non-controlling
interests
|
|
(96)
|
(60)
|
(191)
|
|
(282)
|
(326)
|
|
Net cash provided by (used in)
financing activities
|
|
(3,003)
|
(1,295)
|
(4,178)
|
|
(6,718)
|
(11,336)
|
|
Currency translation differences
relating to cash and cash equivalents
|
|
179
|
(11)
|
(104)
|
|
(92)
|
(118)
|
|
Increase (decrease) in cash and cash
equivalents
|
|
(296)
|
3,381
|
1,012
|
|
1,565
|
731
|
|
Cash and cash equivalents at
beginning of period
|
|
34,891
|
31,510
|
28,914
|
|
33,030
|
29,195
|
|
Cash and cash equivalents at end of
period
|
|
34,595
|
34,891
|
29,926
|
|
34,595
|
29,926
|
(a)
See Condensed group statement of changes in equity - footnote (a) for further
information.
Top of
page 20
Notes
Note 1. Basis of
preparation
The interim financial information
included in this report has been prepared in accordance with IAS 34
'Interim Financial Reporting'.
The results for the interim periods
are unaudited and, in the opinion of management, include all
adjustments necessary for a fair presentation of the results for
each period. All such adjustments are of a normal recurring nature.
This report should be read in conjunction with the consolidated
financial statements and related notes for the year ended 31
December 2023 included in bp
Annual Report and Form 20-F 2023.
bp prepares its consolidated
financial statements included within bp Annual Report and Form 20-F
on the basis of International Financial Reporting Standards (IFRS)
as issued by the International Accounting Standards Board (IASB),
IFRS as adopted by the UK, and European Union (EU), and in
accordance with the provisions of the UK Companies Act 2006 as
applicable to companies reporting under international accounting
standards. IFRS as adopted by the UK does not differ from IFRS as
adopted by the EU. IFRS as adopted by the UK and EU differ in
certain respects from IFRS as issued by the IASB. The differences
have no impact on the group's consolidated financial statements for
the periods presented. The financial information presented herein
has been prepared in accordance with the accounting policies
expected to be used in preparing bp Annual Report and Form 20-F
2024 which are the same as those used in preparing bp Annual Report
and Form 20-F 2023.
In July 2024, the new UK government
announced further changes (effective from 1 November 2024) to the
Energy Profits Levy including a 3% increase in the rate, an
extension to 31 March 2030 and the removal of the Levy's main
investment allowance. The 30 October 2024 Autumn Budget may also
announce further restrictions on capital allowance claims for Levy
purposes. These changes have not yet been substantively enacted and
therefore have not been applied in accounting for deferred tax in
the third quarter 2024. The impacts will be reflected in the group
consolidated financial statements when the changes are
substantively enacted.
There are no new or amended
standards or interpretations adopted from 1 January 2024 onwards
that have a significant impact on the financial
information.
Significant accounting judgements and
estimates
bp's significant accounting
judgements and estimates were disclosed in bp Annual Report and Form 20-F 2023.
These have been subsequently considered at the end of this quarter
to determine if any changes were required to those judgements and
estimates. No significant changes were identified.
Note 2. Non-current assets held for
sale
The carrying amount of assets
classified as held for sale at 30 September 2024 is
$2,414 million, with associated liabilities of
$32 million and includes agreed sales of receivables relating
to a prior divestment monetized at the beginning of the fourth
quarter and divestments that are agreed but not yet completed as
described below.
On 14 February 2024, bp and ADNOC
announced that they had agreed to form a new joint venture (JV) in
Egypt (51% bp and 49% ADNOC). As part of the agreement, bp will
contribute its interests in three development concessions, as well
as exploration agreements, in Egypt to the new JV. ADNOC will make
a proportionate cash contribution. Subject to regulatory approvals
and clearances, the formation of the JV is expected to complete
during the fourth quarter of 2024. The carrying amount of assets
classified as held for sale at 30 September 2024 is
$1,453 million, with associated liabilities of
$23 million.
On 16 November 2023, bp entered into
an agreement to sell its Türkiye ground fuels business to Petrol
Ofisi. This includes the group's interest in three joint venture
terminals in Türkiye. Completion of the sale is subject to
regulatory approvals and is expected to complete during the fourth
quarter 2024. The carrying amount of assets classified as held for
sale at 30 September 2024 is $107 million, with associated
liabilities of $9 million. Cumulative foreign exchange losses
within reserves of approximately $950 million are expected to
be recycled to the group income statement at completion.
Top of
page 21
Note 3. Impairment and losses on
sale of businesses and fixed assets
Net impairment charges and losses on
sale of businesses and fixed assets for the third quarter and nine
months were $1,842 million and $3,888 million
respectively, compared with net charges of $542 million and
$1,899 million for the same periods in 2023 and include net
impairment charges for the third quarter and nine months of
$1,730 million and $3,675 million respectively, compared
with net impairment charges of $612 million and
$1,779 million for the same periods in
2023.
Gas & low carbon energy
Third quarter and nine months of
2024 impairments includes a net impairment charge of
$734 million and $1,859 million respectively, compared
with net charges of $224 million and $1,284 million for
the same periods in 2023 in the gas & low carbon energy
segment. 2024 includes amounts in Mauritania & Senegal which
principally arose as a result of increased forecast future
expenditure. The recoverable amount of the cash generating unit
within this business was based on a value-in-use
calculation.
Oil production & operations
Third quarter and nine months of
2024 impairments includes a net impairment charge of
$767 million and $900 million respectively, compared with
net charges of $142 million and $178 million for the same
periods in 2023 in the oil production & operations segment.
2024 includes amounts in the North Sea. The recoverable amounts of
the cash generating units within this business were based on
value-in-use calculations.
Customers & products
Third quarter and nine months of
2024 impairments includes a net impairment charge of
$223 million and $914 million respectively, compared with
net charges of $221 million and $247 million for the same
periods in 2023 in the customers & products segment. 2024
includes amounts in Germany relating to the ongoing review of the
Gelsenkirchen refinery. The recoverable amount of the cash
generating unit within this business was based on a value-in-use
calculation.
Note 4. Analysis of replacement cost
profit (loss) before interest and tax and reconciliation to profit
(loss) before taxation
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$
million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
gas & low carbon
energy
|
|
1,007
|
(315)
|
2,275
|
|
1,728
|
11,911
|
|
oil production &
operations
|
|
1,891
|
3,267
|
3,427
|
|
8,218
|
9,312
|
|
customers & products
|
|
23
|
(133)
|
1,549
|
|
878
|
4,784
|
|
other businesses &
corporate
|
|
653
|
(180)
|
(500)
|
|
173
|
(887)
|
|
|
|
3,574
|
2,639
|
6,751
|
|
10,997
|
25,120
|
|
Consolidation
adjustment - UPII*
|
|
65
|
(73)
|
(57)
|
|
24
|
(109)
|
|
RC profit (loss) before interest and
tax
|
|
3,639
|
2,566
|
6,694
|
|
11,021
|
25,011
|
|
Inventory holding gains
(losses)*
|
|
|
|
|
|
|
|
|
gas & low carbon
energy
|
|
-
|
-
|
-
|
|
-
|
1
|
|
oil production &
operations
|
|
(2)
|
1
|
(1)
|
|
(2)
|
-
|
|
customers & products
|
|
(1,180)
|
(137)
|
1,594
|
|
(465)
|
260
|
|
Profit (loss) before interest and
tax
|
|
2,457
|
2,430
|
8,287
|
|
10,554
|
25,272
|
|
Finance costs
|
|
1,101
|
1,216
|
1,039
|
|
3,392
|
2,802
|
|
Net finance expense/(income)
relating to pensions and other post-retirement benefits
|
|
(42)
|
(40)
|
(61)
|
|
(123)
|
(180)
|
|
Profit (loss) before
taxation
|
|
1,398
|
1,254
|
7,309
|
|
7,285
|
22,650
|
|
|
|
|
|
|
|
|
|
|
RC
profit (loss) before interest and tax*
|
|
|
|
|
|
|
|
|
US
|
|
1,122
|
1,545
|
1,467
|
|
4,277
|
6,786
|
|
Non-US
|
|
2,517
|
1,021
|
5,227
|
|
6,744
|
18,225
|
|
|
|
3,639
|
2,566
|
6,694
|
|
11,021
|
25,011
|
Top of
page 22
Note 5. Sales and other operating
revenues
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$
million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
By
segment
|
|
|
|
|
|
|
|
|
gas & low carbon
energy
|
|
8,526
|
5,809
|
10,313
|
|
23,010
|
38,627
|
|
oil production &
operations
|
|
6,468
|
6,659
|
6,225
|
|
19,559
|
18,155
|
|
customers & products
|
|
38,437
|
41,100
|
42,908
|
|
119,432
|
119,841
|
|
other businesses &
corporate
|
|
614
|
526
|
672
|
|
1,746
|
2,000
|
|
|
|
54,045
|
54,094
|
60,118
|
|
163,747
|
178,623
|
|
|
|
|
|
|
|
|
|
|
Less: sales and other operating
revenues between segments
|
|
|
|
|
|
|
|
|
gas & low carbon
energy
|
|
385
|
371
|
367
|
|
1,026
|
1,743
|
|
oil production &
operations
|
|
5,860
|
5,982
|
5,747
|
|
17,755
|
17,244
|
|
customers & products
|
|
(138)
|
25
|
508
|
|
180
|
472
|
|
other businesses &
corporate
|
|
684
|
417
|
227
|
|
1,353
|
1,175
|
|
|
|
6,791
|
6,795
|
6,849
|
|
20,314
|
20,634
|
|
|
|
|
|
|
|
|
|
|
External sales and other operating
revenues
|
|
|
|
|
|
|
|
|
gas & low carbon
energy
|
|
8,141
|
5,438
|
9,946
|
|
21,984
|
36,884
|
|
oil production &
operations
|
|
608
|
677
|
478
|
|
1,804
|
911
|
|
customers & products
|
|
38,575
|
41,075
|
42,400
|
|
119,252
|
119,369
|
|
other businesses &
corporate
|
|
(70)
|
109
|
445
|
|
393
|
825
|
|
Total sales and other operating
revenues
|
|
47,254
|
47,299
|
53,269
|
|
143,433
|
157,989
|
|
|
|
|
|
|
|
|
|
|
By
geographical area
|
|
|
|
|
|
|
|
|
US
|
|
19,388
|
20,340
|
22,032
|
|
59,586
|
61,257
|
|
Non-US
|
|
36,712
|
36,832
|
43,382
|
|
112,752
|
128,224
|
|
|
|
56,100
|
57,172
|
65,414
|
|
172,338
|
189,481
|
|
Less: sales and other operating
revenues between areas
|
|
8,846
|
9,873
|
12,145
|
|
28,905
|
31,492
|
|
|
|
47,254
|
47,299
|
53,269
|
|
143,433
|
157,989
|
|
|
|
|
|
|
|
|
|
|
Revenues from contracts with customers
|
|
|
|
|
|
|
|
|
Sales and other operating revenues
include the following in relation to revenues from contracts with
customers:
|
|
|
|
|
|
|
|
|
Crude oil
|
|
618
|
538
|
496
|
|
1,704
|
1,653
|
|
Oil products
|
|
30,997
|
32,548
|
35,486
|
|
93,385
|
96,845
|
|
Natural gas, LNG and NGLs
|
|
6,458
|
4,987
|
6,396
|
|
17,196
|
21,881
|
|
Non-oil products and other revenues
from contracts with customers
|
|
3,213
|
3,108
|
2,765
|
|
9,249
|
7,387
|
|
Revenue from contracts with
customers
|
|
41,286
|
41,181
|
45,143
|
|
121,534
|
127,766
|
|
Other operating
revenues(a)
|
|
5,968
|
6,118
|
8,126
|
|
21,899
|
30,223
|
|
Total sales and other operating
revenues
|
|
47,254
|
47,299
|
53,269
|
|
143,433
|
157,989
|
(a)
Principally relates to commodity derivative transactions including
sales of bp own production in trading books.
Top of
page 23
Note 6. Depreciation, depletion and
amortization
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$
million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Total depreciation, depletion and amortization by
segment
|
|
|
|
|
|
|
|
|
gas & low carbon
energy
|
|
1,180
|
1,209
|
1,543
|
|
3,682
|
4,390
|
|
oil production &
operations
|
|
1,708
|
1,698
|
1,432
|
|
5,063
|
4,129
|
|
customers & products
|
|
963
|
939
|
915
|
|
2,846
|
2,606
|
|
other businesses &
corporate
|
|
266
|
252
|
255
|
|
774
|
743
|
|
|
|
4,117
|
4,098
|
4,145
|
|
12,365
|
11,868
|
|
Total depreciation, depletion and amortization by geographical
area
|
|
|
|
|
|
|
|
|
US
|
|
1,735
|
1,703
|
1,479
|
|
5,008
|
4,071
|
|
Non-US
|
|
2,382
|
2,395
|
2,666
|
|
7,357
|
7,797
|
|
|
|
4,117
|
4,098
|
4,145
|
|
12,365
|
11,868
|
Note 7. Earnings per share and
shares in issue
Basic earnings per ordinary share
(EpS) amounts are calculated by dividing the profit (loss) for the
period attributable to ordinary shareholders by the weighted
average number of ordinary shares outstanding during the period.
Against the authority granted at bp's 2024 annual general meeting,
350 million ordinary shares repurchased for cancellation were
settled during the third quarter 2024 for a total cost of
$2,001 million. A further 150 million ordinary shares
were repurchased between the end of the reporting period and the
date when the financial statements are authorised for issue for a
total cost of $796 million. This amount has been accrued at 30
September 2024. The number of shares in issue is reduced when
shares are repurchased, but is not reduced in respect of the
period-end commitment to repurchase shares subsequent to the end of
the period.
The calculation of EpS is performed
separately for each discrete quarterly period, and for the
year-to-date period. As a result, the sum of the discrete quarterly
EpS amounts in any particular year-to-date period may not be equal
to the EpS amount for the year-to-date period.
For the diluted EpS calculation the
weighted average number of shares outstanding during the period is
adjusted for the number of shares that are potentially issuable in
connection with employee share-based payment plans using the
treasury stock method.
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$
million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Results for the period
|
|
|
|
|
|
|
|
|
Profit (loss) for the period
attributable to bp shareholders
|
|
206
|
(129)
|
4,858
|
|
2,340
|
14,868
|
|
Less: preference dividend
|
|
-
|
1
|
-
|
|
1
|
1
|
|
Less: (gain) loss on redemption of
perpetual hybrid
bonds(a)
|
|
-
|
-
|
-
|
|
(10)
|
-
|
|
Profit (loss) attributable to bp
ordinary shareholders
|
|
206
|
(130)
|
4,858
|
|
2,349
|
14,867
|
|
|
|
|
|
|
|
|
|
|
Number of shares (thousand)(b)(c)
|
|
|
|
|
|
|
|
|
Basic weighted average number of
shares outstanding
|
|
16,321,349
|
16,590,173
|
17,204,488
|
|
16,553,408
|
17,537,170
|
|
ADS
equivalent(d)
|
|
2,720,224
|
2,765,028
|
2,867,414
|
|
2,758,901
|
2,922,861
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of shares
outstanding used to calculate diluted earnings per share
|
|
16,709,108
|
16,590,173
|
17,609,601
|
|
16,980,519
|
17,914,383
|
|
ADS
equivalent(d)
|
|
2,784,851
|
2,765,028
|
2,934,933
|
|
2,830,086
|
2,985,730
|
|
|
|
|
|
|
|
|
|
|
Shares in issue at
period-end
|
|
16,155,806
|
16,491,420
|
17,061,004
|
|
16,155,806
|
17,061,004
|
|
ADS
equivalent(d)
|
|
2,692,634
|
2,748,570
|
2,843,500
|
|
2,692,634
|
2,843,500
|
(a)
See Condensed group statement of changes in equity - footnote (a) for further
information.
(b) If the
inclusion of potentially issuable shares would decrease loss per
share, the potentially issuable shares are excluded from the
weighted average number of shares outstanding used to calculate
diluted earnings per share. The numbers of potentially issuable
shares that have been excluded from the calculation for the second
quarter 2024 are 374,406 thousand (ADS equivalent 62,401
thousand).
(c)
Excludes treasury shares and includes certain shares that will be
issued in the future under employee share-based payment
plans.
(d) One ADS
is equivalent to six ordinary shares.
Top of
page 24
Note 8. Dividends
Dividends payable
bp today announced an interim
dividend of 8.000 cents per ordinary share which is expected to be
paid on 20 December 2024 to ordinary shareholders and American
Depositary Share (ADS) holders on the register on 8 November 2024.
The ex-dividend date will be 7 November 2024 for ordinary
shareholders and 8 November 2024 for ADS holders. The corresponding
amount in sterling is due to be announced on 5 December 2024,
calculated based on the average of the market exchange rates over
three dealing days between 29 November 2024 and 3 December 2024.
Holders of ADSs are expected to receive $0.48 per ADS (less
applicable fees). The board has decided not to offer a scrip
dividend alternative in respect of the third quarter 2024 dividend.
Ordinary shareholders and ADS holders (subject to certain
exceptions) will be able to participate in a dividend reinvestment
programme. Details of the third quarter dividend and timetable are
available at bp.com/dividends and further details
of the dividend reinvestment programmes are available at
bp.com/drip.
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Dividends paid per ordinary share
|
|
|
|
|
|
|
|
|
cents
|
|
8.000
|
7.270
|
7.270
|
|
22.540
|
20.490
|
|
pence
|
|
6.050
|
5.683
|
5.732
|
|
17.425
|
16.592
|
|
Dividends paid per ADS
(cents)
|
|
48.00
|
43.62
|
43.62
|
|
135.24
|
122.94
|
Note 9. Net debt
|
Net
debt*
|
|
30
September
|
30 June
|
30
September
|
|
$
million
|
|
2024
|
2024
|
2023
|
|
Finance
debt(a)
|
|
57,470
|
54,986
|
48,810
|
|
Fair value (asset) liability of
hedges related to finance debt(b)
|
|
1,393
|
2,519
|
3,440
|
|
|
|
58,863
|
57,505
|
52,250
|
|
Less: cash and cash
equivalents
|
|
34,595
|
34,891
|
29,926
|
|
Net debt(c)
|
|
24,268
|
22,614
|
22,324
|
|
Total equity
|
|
79,946
|
82,199
|
87,676
|
|
Gearing*
|
|
23.3%
|
21.6%
|
20.3%
|
(a)
The fair value of finance debt at 30 September 2024 was
$54,324 million (30 June 2024 $50,677 million, 30 September
2023 $43,387 million).
(b)
Derivative financial instruments entered into for the purpose of
managing foreign currency exchange risk associated with net debt
with a fair value liability position of $123 million at
30 September 2024 (second quarter 2024 liability of
$144 million and third quarter 2023 liability of
$102 million) are not included in the calculation of net debt
shown above as hedge accounting is not applied for these
instruments.
(c)
Net debt does not include accrued interest, which is reported
within other receivables and other payables on the balance sheet
and for which the associated cash flows are presented as operating
cash flows in the group cash flow statement.
Top of
page 25
Note 10. Events after the reporting
period
On 1 October 2024, the group
acquired a further 50% of the issued ordinary shares of bp Bunge
Bioenergia and now owns 100% of the ordinary shares. The
transaction will be accounted for as a business combination
achieved in stages using the acquisition method. Total
consideration is estimated at $0.8 billion including deferred
consideration. Reported finance debt and cash acquired in the
transaction is expected to be approximately $0.7 billion and $0.3
billion, respectively.
On 24 October 2024, the group
acquired a further 50.03% of the issued ordinary shares of
Lightsource bp and now owns 100% of the ordinary shares. The
transaction will be accounted for as a business combination
achieved in stages using the acquisition method. Total
consideration is estimated at $0.5 billion including deferred and
contingent consideration. Reported finance debt and cash acquired
in the transaction is expected to be approximately $3.0 billion and
$0.3 billion, respectively.
Immediately prior to the business
combination, 2.4GW of Lightsource bp's operational and construction
assets in the United States were transferred from Lightsource bp
into a new joint venture between bp and the Lightsource bp
founders, and certain management and staff. bp will apply equity
accounting to this investment for bp's approximate 50%
share.
As the above transactions have only
recently completed, the initial provisional purchase price
allocations and the related measurement of acquired asset and
liability fair values, and accounting policy alignments are
ongoing.
Note 11. Statutory
accounts
The financial information shown in
this publication, which was approved by the Board of Directors on
28 October 2024, is unaudited and does not constitute statutory
financial statements. Audited financial information will be
published in bp Annual Report and
Form 20-F 2024. bp Annual Report and Form 20-F 2023 has been
filed with the Registrar of Companies in England and Wales. The
report of the auditor on those accounts was unqualified, did not
include a reference to any matters to which the auditor drew
attention by way of emphasis without qualifying the report and did
not contain a statement under section 498(2) or section 498(3) of
the UK Companies Act 2006.
Top of
page 26
Additional information
Capital expenditure*
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$
million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Capital expenditure
|
|
|
|
|
|
|
|
|
Organic capital
expenditure*
|
|
4,341
|
3,586
|
3,597
|
|
11,906
|
10,325
|
|
Inorganic capital
expenditure*(a)
|
|
201
|
105
|
6
|
|
605
|
1,217
|
|
|
|
4,542
|
3,691
|
3,603
|
|
12,511
|
11,542
|
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$
million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Capital expenditure by segment
|
|
|
|
|
|
|
|
|
gas & low carbon
energy
|
|
2,096
|
1,005
|
1,055
|
|
4,399
|
2,955
|
|
oil production &
operations
|
|
1,410
|
1,534
|
1,644
|
|
4,720
|
4,642
|
|
customers &
products(a)
|
|
931
|
1,045
|
802
|
|
3,096
|
3,650
|
|
other businesses &
corporate
|
|
105
|
107
|
102
|
|
296
|
295
|
|
|
|
4,542
|
3,691
|
3,603
|
|
12,511
|
11,542
|
|
Capital expenditure by geographical area
|
|
|
|
|
|
|
|
|
US
|
|
1,389
|
1,636
|
1,583
|
|
4,801
|
5,941
|
|
Non-US
|
|
3,153
|
2,055
|
2,020
|
|
7,710
|
5,601
|
|
|
|
4,542
|
3,691
|
3,603
|
|
12,511
|
11,542
|
(a)
Nine months 2023 includes $1.1 billion, net of adjustments, in
respect of the TravelCenters of America acquisition.
Top of
page 27
Adjusting items*
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$
million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
gas
& low carbon energy
|
|
|
|
|
|
|
|
|
Gains on sale of businesses and
fixed assets
|
|
19
|
8
|
-
|
|
29
|
16
|
|
Net impairment and losses on sale of
businesses and fixed assets(a)
|
|
(772)
|
(590)
|
(224)
|
|
(1,898)
|
(1,284)
|
|
Environmental and related
provisions
|
|
-
|
-
|
-
|
|
-
|
-
|
|
Restructuring, integration and
rationalization costs
|
|
(24)
|
-
|
(1)
|
|
(24)
|
-
|
|
Fair value accounting
effects(b)(c)
|
|
(275)
|
(1,011)
|
1,816
|
|
(1,173)
|
6,972
|
|
Other(d)
|
|
303
|
(124)
|
(572)
|
|
(22)
|
(738)
|
|
|
|
(749)
|
(1,717)
|
1,019
|
|
(3,088)
|
4,966
|
|
oil
production & operations
|
|
|
|
|
|
|
|
|
Gains on sale of businesses and
fixed assets
|
|
(82)
|
7
|
246
|
|
109
|
352
|
|
Net impairment and losses on sale of
businesses and fixed assets(a)
|
|
(770)
|
(29)
|
(52)
|
|
(919)
|
(184)
|
|
Environmental and related
provisions
|
|
(53)
|
195
|
99
|
|
65
|
6
|
|
Restructuring, integration and
rationalization costs
|
|
(1)
|
-
|
-
|
|
(1)
|
(1)
|
|
Fair value accounting
effects
|
|
-
|
-
|
-
|
|
-
|
-
|
|
Other
|
|
3
|
-
|
(2)
|
|
(49)
|
(93)
|
|
|
|
(903)
|
173
|
291
|
|
(795)
|
80
|
|
customers & products
|
|
|
|
|
|
|
|
|
Gains on sale of businesses and
fixed assets
|
|
12
|
4
|
18
|
|
21
|
21
|
|
Net impairment and losses on sale of
businesses and fixed assets(a)
|
|
(295)
|
(678)
|
(242)
|
|
(1,069)
|
(361)
|
|
Environmental and related
provisions
|
|
(4)
|
7
|
-
|
|
3
|
(11)
|
|
Restructuring, integration and
rationalization costs
|
|
(39)
|
-
|
1
|
|
(38)
|
-
|
|
Fair value accounting
effects(c)
|
|
157
|
25
|
(198)
|
|
38
|
(230)
|
|
Other(e)
|
|
(189)
|
(640)
|
(85)
|
|
(896)
|
(245)
|
|
|
|
(358)
|
(1,282)
|
(506)
|
|
(1,941)
|
(826)
|
|
other businesses & corporate
|
|
|
|
|
|
|
|
|
Gains on sale of businesses and
fixed assets
|
|
3
|
-
|
-
|
|
35
|
-
|
|
Net impairment and losses on sale of
businesses and fixed assets
|
|
(6)
|
(11)
|
(23)
|
|
9
|
(60)
|
|
Environmental and related
provisions
|
|
(8)
|
28
|
(8)
|
|
11
|
(39)
|
|
Restructuring, integration and
rationalization costs
|
|
(50)
|
1
|
(3)
|
|
(38)
|
(13)
|
|
Fair value accounting
effects(c)
|
|
494
|
(29)
|
(146)
|
|
272
|
51
|
|
Gulf of Mexico oil spill
|
|
(20)
|
(8)
|
(19)
|
|
(39)
|
(46)
|
|
Other
|
|
9
|
(3)
|
2
|
|
4
|
(11)
|
|
|
|
422
|
(22)
|
(197)
|
|
254
|
(118)
|
|
Total before interest and
taxation
|
|
(1,588)
|
(2,848)
|
607
|
|
(5,570)
|
4,102
|
|
Finance
costs(f)
|
|
(58)
|
(205)
|
(96)
|
|
(355)
|
(319)
|
|
Total before taxation
|
|
(1,646)
|
(3,053)
|
511
|
|
(5,925)
|
3,783
|
|
Taxation on adjusting
items(g)
|
|
535
|
585
|
(158)
|
|
1,229
|
(203)
|
|
Taxation - tax rate change
effect(h)
|
|
(44)
|
(304)
|
-
|
|
(348)
|
232
|
|
Total after taxation for
period
|
|
(1,155)
|
(2,772)
|
353
|
|
(5,044)
|
3,812
|
(a)
See Note 3 for further information.
(b) Under
IFRS bp marks-to-market the value of the hedges used to risk-manage
LNG contracts, but not the contracts themselves, resulting in a
mismatch in accounting treatment. The fair value accounting effect
includes the change in value of LNG contracts that are being risk
managed, and the underlying result reflects how bp risk-manages its
LNG contracts.
(c)
For further information, including the nature of fair value
accounting effects reported in each segment, see pages 3, 6 and
32.
(d) Third
quarter and nine months 2023 include a $540 million impairment
charge recognized through equity-accounted earnings relating to US
offshore wind projects.
(e)
All periods in 2024 include recognition of onerous contract
provisions related to the Gelsenkirchen refinery. The unwind of
these provisions will be reported as an adjusting item as the
contractual obligations are settled.
(f) Includes the unwinding
of discounting effects relating to Gulf of Mexico oil spill
payables and the income statement impact of temporary valuation
differences associated with the group's interest rate and foreign
currency exchange risk management of finance debt. Nine months 2023
also includes the income statement impact associated with the
buyback of finance debt. Third quarter and nine months 2024 also
includes the unwinding of discounting effects relating to certain
onerous contract provisions.
(g)
Includes certain foreign exchange effects on tax as adjusting
items. These amounts represent the impact of: (i) foreign exchange
on deferred tax balances arising from the conversion of local
currency tax base amounts into functional currency, and (ii)
taxable gains and losses from the retranslation of US
dollar-denominated intra-group loans to local currency.
(h) Nine
months 2024 and nine months 2023 include revisions to the deferred
tax impact of the introduction of the UK Energy Profits Levy (EPL)
on temporary differences existing at 31 December 2022 that are
expected to unwind before 31 March 2028. The EPL increases the
headline rate of tax to 75% and applies to taxable profits from
bp's North Sea business made from 1 January 2023 until 31 March
2028. In July 2024 the new UK government announced further changes
to the EPL including a 3% increase in the rate and an extension to
31 March 2030, together with changes to investment allowances and
capital allowances. These changes have not yet been substantively
enacted and have therefore not been accounted for at 30 September
2024. The impacts will be reflected in the financial statements
when the changes are substantively enacted.
Top of
page 28
Net debt including leases
|
Net
debt including leases*
|
|
30
September
|
30 June
|
30
September
|
|
$
million
|
|
2024
|
2024
|
2023
|
|
Net debt*
|
|
24,268
|
22,614
|
22,324
|
|
Lease liabilities
|
|
11,018
|
10,697
|
10,879
|
|
Net partner (receivable) payable for
leases entered into on behalf of joint operations
|
|
(98)
|
(112)
|
(124)
|
|
Net debt including leases
|
|
35,188
|
33,199
|
33,079
|
|
Total equity
|
|
79,946
|
82,199
|
87,676
|
|
Gearing including leases*
|
|
30.6%
|
28.8%
|
27.4%
|
Gulf of Mexico oil spill
|
|
|
30
September
|
31 December
|
|
$
million
|
|
2024
|
2023
|
|
Gulf of Mexico oil spill payables
and provisions
|
|
(7,869)
|
(8,735)
|
|
Of which - current
|
|
(1,115)
|
(1,133)
|
|
|
|
|
|
|
Deferred tax asset
|
|
1,192
|
1,320
|
During the second quarter 2024
pre-tax payments of $1,129 million were made relating to the 2016
consent decree and settlement agreement with the United States and
the five Gulf coast states. Payables and provisions presented in
the table above reflect the latest estimate for the remaining costs
associated with the Gulf of Mexico oil spill. Where amounts have
been provided on an estimated basis, the amounts ultimately payable
may differ from the amounts provided and the timing of payments is
uncertain. Further information relating to the Gulf of Mexico oil
spill, including information on the nature and expected timing of
payments relating to provisions and other payables, is provided in
bp Annual Report and Form 20-F
2023 - Financial statements - Notes 7, 22, 23, 29, and
33.
Working capital*
reconciliation
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$
million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Movements in inventories and other
current and non-current assets and liabilities as per condensed
group cash flow statement(a)
|
|
1,798
|
1,556
|
(783)
|
|
1,223
|
(5,280)
|
|
Adjusted for inventory holding gains
(losses)* (Note 4)
|
|
(1,182)
|
(136)
|
1,593
|
|
(467)
|
261
|
|
Adjusted for fair value accounting
effects* relating to subsidiaries
|
|
319
|
(1,071)
|
1,443
|
|
(1,026)
|
6,738
|
|
Other adjusting
items(b)
|
|
451
|
182
|
(300)
|
|
(201)
|
(1,040)
|
|
Working capital release (build)
after adjusting for net inventory gains (losses), fair value
accounting effects and other adjusting items
|
|
1,386
|
531
|
1,953
|
|
(471)
|
679
|
(a)
The movement in working capital includes outflows relating to the
Gulf of Mexico oil spill on a pre-tax basis of $4 million and
$1,140 million in the third quarter
and nine months of 2024 respectively (second quarter 2024
$1,129 million, third quarter 2023 $6 million, nine
months 2023 $1,222 million).
(b) Other
adjusting items relate to the non-cash movement of US emissions
obligations carried as a provision that will be settled by
allowances held as inventory.
Top of
page 29
Adjusted earnings before interest,
taxation, depreciation and amortization (adjusted
EBITDA)*
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$
million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Profit for the period
|
|
370
|
70
|
5,069
|
|
2,849
|
15,444
|
|
Finance costs
|
|
1,101
|
1,216
|
1,039
|
|
3,392
|
2,802
|
|
Net finance (income) expense
relating to pensions and other post-retirement benefits
|
|
(42)
|
(40)
|
(61)
|
|
(123)
|
(180)
|
|
Taxation
|
|
1,028
|
1,184
|
2,240
|
|
4,436
|
7,206
|
|
Profit before interest and
tax
|
|
2,457
|
2,430
|
8,287
|
|
10,554
|
25,272
|
|
Inventory holding (gains) losses*,
before tax
|
|
1,182
|
136
|
(1,593)
|
|
467
|
(261)
|
|
RC profit before interest and
tax
|
|
3,639
|
2,566
|
6,694
|
|
11,021
|
25,011
|
|
Net (favourable) adverse impact of
adjusting items*, before interest and tax
|
|
1,588
|
2,848
|
(607)
|
|
5,570
|
(4,102)
|
|
Underlying RC profit before interest
and tax
|
|
5,227
|
5,414
|
6,087
|
|
16,591
|
20,909
|
|
Add back:
|
|
|
|
|
|
|
|
|
Depreciation, depletion and
amortization
|
|
4,117
|
4,098
|
4,145
|
|
12,365
|
11,868
|
|
Exploration expenditure written
off
|
|
310
|
127
|
74
|
|
643
|
365
|
|
Adjusted EBITDA
|
|
9,654
|
9,639
|
10,306
|
|
29,599
|
33,142
|
Reconciliation of customers &
products RC profit before interest and tax to underlying RC profit
before interest and tax* to adjusted EBITDA* by business
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$
million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
RC profit before interest and
tax for customers & products
|
|
23
|
(133)
|
1,549
|
|
878
|
4,784
|
|
Less: Adjusting items* gains
(charges)
|
|
(358)
|
(1,282)
|
(506)
|
|
(1,941)
|
(826)
|
|
Underlying RC profit before interest
and tax for customers & products
|
|
381
|
1,149
|
2,055
|
|
2,819
|
5,610
|
|
By business:
|
|
|
|
|
|
|
|
|
customers - convenience &
mobility
|
|
897
|
790
|
670
|
|
2,057
|
1,762
|
|
Castrol - included in customers
|
|
216
|
211
|
185
|
|
611
|
517
|
|
products - refining &
trading
|
|
(516)
|
359
|
1,385
|
|
762
|
3,848
|
|
|
|
|
|
|
|
|
|
|
Add back: Depreciation, depletion
and amortization
|
|
963
|
939
|
915
|
|
2,846
|
2,606
|
|
By business:
|
|
|
|
|
|
|
|
|
customers - convenience &
mobility
|
|
513
|
491
|
481
|
|
1,488
|
1,270
|
|
Castrol - included in customers
|
|
45
|
42
|
43
|
|
129
|
124
|
|
products - refining &
trading
|
|
450
|
448
|
434
|
|
1,358
|
1,336
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA for customers
& products
|
|
1,344
|
2,088
|
2,970
|
|
5,665
|
8,216
|
|
By business:
|
|
|
|
|
|
|
|
|
customers - convenience &
mobility
|
|
1,410
|
1,281
|
1,151
|
|
3,545
|
3,032
|
|
Castrol - included in customers
|
|
261
|
253
|
228
|
|
740
|
641
|
|
products - refining &
trading
|
|
(66)
|
807
|
1,819
|
|
2,120
|
5,184
|
Top of
page 30
Realizations* and marker
prices
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Average realizations(a)
|
|
|
|
|
|
|
|
|
Liquids* ($/bbl)
|
|
|
|
|
|
|
|
|
US
|
|
63.31
|
65.88
|
63.95
|
|
63.83
|
62.44
|
|
Europe
|
|
75.45
|
80.55
|
90.76
|
|
80.44
|
80.59
|
|
Rest of World
|
|
80.79
|
83.58
|
78.34
|
|
81.39
|
80.05
|
|
bp average
|
|
70.68
|
73.73
|
71.85
|
|
71.89
|
71.40
|
|
Natural gas ($/mcf)
|
|
|
|
|
|
|
|
|
US
|
|
1.18
|
1.29
|
2.24
|
|
1.39
|
2.09
|
|
Europe
|
|
12.22
|
9.49
|
11.22
|
|
10.68
|
17.20
|
|
Rest of World
|
|
5.80
|
5.47
|
5.38
|
|
5.57
|
6.11
|
|
bp average
|
|
4.75
|
4.47
|
4.88
|
|
4.61
|
5.66
|
|
Total hydrocarbons* ($/boe)
|
|
|
|
|
|
|
|
|
US
|
|
42.18
|
44.26
|
45.39
|
|
42.65
|
43.77
|
|
Europe
|
|
74.03
|
73.21
|
80.61
|
|
74.73
|
87.43
|
|
Rest of World
|
|
47.57
|
47.49
|
45.61
|
|
47.22
|
48.73
|
|
bp average
|
|
46.81
|
47.49
|
47.28
|
|
46.91
|
49.47
|
|
Average oil marker prices ($/bbl)
|
|
|
|
|
|
|
|
|
Brent
|
|
80.34
|
84.97
|
86.75
|
|
82.79
|
82.07
|
|
West Texas Intermediate
|
|
75.28
|
80.82
|
82.54
|
|
77.71
|
77.36
|
|
Western Canadian Select
|
|
59.98
|
67.20
|
65.42
|
|
62.22
|
60.72
|
|
Alaska North Slope
|
|
78.95
|
86.42
|
87.95
|
|
82.24
|
81.74
|
|
Mars
|
|
74.20
|
81.37
|
82.99
|
|
77.50
|
76.80
|
|
Urals (NWE - cif)
|
|
70.10
|
72.79
|
73.62
|
|
70.39
|
58.20
|
|
Average natural gas marker prices
|
|
|
|
|
|
|
|
|
Henry Hub gas price(b)
($/mmBtu)
|
|
2.15
|
1.89
|
2.54
|
|
2.10
|
2.69
|
|
UK Gas - National Balancing Point
(p/therm)
|
|
81.77
|
76.57
|
82.04
|
|
75.75
|
99.01
|
(a)
Based on sales of consolidated subsidiaries only
- this excludes
equity-accounted entities.
(b) Henry
Hub First of Month Index.
Exchange rates
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
$/£ average rate for the
period
|
|
1.30
|
1.26
|
1.27
|
|
1.28
|
1.24
|
|
$/£ period-end rate
|
|
1.34
|
1.27
|
1.22
|
|
1.34
|
1.22
|
|
|
|
|
|
|
|
|
|
|
$/€ average rate for the
period
|
|
1.10
|
1.08
|
1.09
|
|
1.09
|
1.08
|
|
$/€ period-end rate
|
|
1.12
|
1.07
|
1.06
|
|
1.12
|
1.06
|
|
|
|
|
|
|
|
|
|
|
$/AUD average rate for the
period
|
|
0.67
|
0.66
|
0.65
|
|
0.66
|
0.67
|
|
$/AUD period-end rate
|
|
0.69
|
0.67
|
0.64
|
|
0.69
|
0.64
|
|
|
|
|
|
|
|
|
|
Top of
page 31
Legal proceedings
For a full discussion of the group's
material legal proceedings, see pages 242-243 of bp Annual Report and Form 20-F
2023.
Glossary
Non-IFRS measures are provided for
investors because they are closely tracked by management to
evaluate bp's operating performance and to make financial,
strategic and operating decisions. Non-IFRS measures are sometimes
referred to as alternative performance measures.
Adjusted EBITDA is a non-IFRS
measure presented for bp's operating segments and is defined as
replacement cost (RC) profit before interest and tax, excluding net
adjusting items* before interest and tax, and adding back
depreciation, depletion and amortization and exploration write-offs
(net of adjusting items). Adjusted EBITDA by business is a further
analysis of adjusted EBITDA for the customers & products
businesses. bp believes it is helpful to disclose adjusted EBITDA
by operating segment and by business because it reflects how the
segments measure underlying business delivery. The nearest
equivalent measure on an IFRS basis for the segment is RC profit or
loss before interest and tax, which is bp's measure of profit or
loss that is required to be disclosed for each operating segment
under IFRS. A reconciliation to IFRS information is provided on
page 29 for the customers & products businesses.
Adjusted EBITDA for the group is
defined as profit or loss for the period, adjusting for finance
costs and net finance (income) or expense relating to pensions and
other post-retirement benefits and taxation, inventory holding
gains or losses before tax, net adjusting items before interest and
tax, and adding back depreciation, depletion and amortization
(pre-tax) and exploration expenditure written-off (net of adjusting
items, pre-tax). The nearest equivalent measure on an IFRS basis
for the group is profit or loss for the period. A reconciliation to
IFRS information is provided on page 29 for the group.
Adjusting items are items that
bp discloses separately because it considers such disclosures to be
meaningful and relevant to investors. They are items that
management considers to be important to period-on-period analysis
of the group's results and are disclosed in order to enable
investors to better understand and evaluate the group's reported
financial performance. Adjusting items include gains and losses on
the sale of businesses and fixed assets, impairments, environmental
and related provisions and charges, restructuring, integration and
rationalization costs, fair value accounting effects and costs
relating to the Gulf of Mexico oil spill and other items. Adjusting
items within equity-accounted earnings are reported net of
incremental income tax reported by the equity-accounted entity.
Adjusting items are used as a reconciling adjustment to derive
underlying RC profit or loss and related underlying measures which
are non-IFRS measures. An analysis of adjusting items by segment
and type is shown on page 27.
Blue hydrogen - Hydrogen made
from natural gas in combination with carbon capture and storage
(CCS).
Capital expenditure is total
cash capital expenditure as stated in the condensed group cash flow
statement. Capital expenditure for the operating segments, gas
& low carbon energy businesses and customers & products
businesses is presented on the same basis.
Cash balance point is defined
as the implied Brent oil price 2021 real to balance bp's sources
and uses of cash assuming an average bp refining marker margin
around $11/bbl and Henry Hub at $3/mmBtu in 2021 real
terms.
Cash costs is a non-IFRS
measure and a subset of production and manufacturing expenses plus
distribution and administration expenses and excludes costs that
are classified as adjusting items. They represent the substantial
majority of the remaining expenses in these line items but exclude
certain costs that are variable, primarily with volumes (such as
freight costs). Management believes that cash costs is a
performance measure that provides investors with useful information
regarding the company's financial performance because it considers
these expenses to be the principal operating and overhead expenses
that are most directly under their control although they also
include certain foreign exchange and commodity price
effects.
Consolidation adjustment - UPII is unrealized profit in inventory arising on inter-segment
transactions.
Developed renewables to final investment decision
(FID) - Total generating capacity
for assets developed to FID by all entities where bp has an equity
share (proportionate to equity share at the time of FID). If asset
is subsequently sold bp will continue to record capacity as
developed to FID.
Divestment proceeds are
disposal proceeds as per the condensed group cash flow
statement.
Effective tax rate (ETR) on replacement cost (RC) profit or
loss is a non-IFRS measure. The ETR
on RC profit or loss is calculated by dividing taxation on a RC
basis by RC profit or loss before tax. Taxation on a RC basis for
the group is calculated as taxation as stated on the group income
statement adjusted for taxation on inventory holding gains and
losses. Information on RC profit or loss is provided below. bp
believes it is helpful to disclose the ETR on RC profit or loss
because this measure excludes the impact of price changes on the
replacement of inventories and allows for more meaningful
comparisons between reporting periods. Taxation on a RC basis and
ETR on RC profit or loss are non-IFRS measures. The nearest
equivalent measure on an IFRS basis is the ETR on profit or loss
for the period.
Electric vehicle charge points / EV charge
points are defined as the number of
connectors on a charging device, operated by either bp or a bp
joint venture as adjusted to be reflective of bp's accounting share
of joint arrangements.
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Glossary (continued)
Fair value accounting effects are non-IFRS adjustments to our IFRS profit (loss). They
reflect the difference between the way bp manages the economic
exposure and internally measures performance of certain activities
and the way those activities are measured under IFRS. Fair value
accounting effects are included within adjusting items. They relate
to certain of the group's commodity, interest rate and currency
risk exposures as detailed below. Other than as noted below, the
fair value accounting effects described are reported in both the
gas & low carbon energy and customer & products
segments.
bp uses derivative instruments to
manage the economic exposure relating to inventories above normal
operating requirements of crude oil, natural gas and petroleum
products. Under IFRS, these inventories are recorded at historical
cost. The related derivative instruments, however, are required to
be recorded at fair value with gains and losses recognized in the
income statement. This is because hedge accounting is either not
permitted or not followed, principally due to the impracticality of
effectiveness-testing requirements. Therefore, measurement
differences in relation to recognition of gains and losses occur.
Gains and losses on these inventories, other than net realizable
value provisions, are not recognized until the commodity is sold in
a subsequent accounting period. Gains and losses on the related
derivative commodity contracts are recognized in the income
statement, from the time the derivative commodity contract is
entered into, on a fair value basis using forward prices consistent
with the contract maturity.
bp enters into physical commodity
contracts to meet certain business requirements, such as the
purchase of crude for a refinery or the sale of bp's gas
production. Under IFRS these physical contracts are treated as
derivatives and are required to be fair valued when they are
managed as part of a larger portfolio of similar transactions.
Gains and losses arising are recognized in the income statement
from the time the derivative commodity contract is entered
into.
IFRS require that inventory held for
trading is recorded at its fair value using period-end spot prices,
whereas any related derivative commodity instruments are required
to be recorded at values based on forward prices consistent with
the contract maturity. Depending on market conditions, these
forward prices can be either higher or lower than spot prices,
resulting in measurement differences.
bp enters into contracts for
pipelines and other transportation, storage capacity, oil and gas
processing, liquefied natural gas (LNG) and certain gas and power
contracts that, under IFRS, are recorded on an accruals basis.
These contracts are risk-managed using a variety of derivative
instruments that are fair valued under IFRS. This results in
measurement differences in relation to recognition of gains and
losses.
The way that bp manages the economic
exposures described above, and measures performance internally,
differs from the way these activities are measured under IFRS. bp
calculates this difference for consolidated entities by comparing
the IFRS result with management's internal measure of performance.
We believe that disclosing management's estimate of this difference
provides useful information for investors because it enables
investors to see the economic effect of these activities as a
whole.
These include:
•
Under management's internal measure of performance the inventory,
transportation and capacity contracts in question are valued based
on fair value using relevant forward prices prevailing at the end
of the period.
• Fair
value accounting effects also include changes in the fair value of
the near-term portions of LNG contracts that fall within bp's risk
management framework. LNG contracts are not considered derivatives,
because there is insufficient market liquidity, and they are
therefore accrual accounted under IFRS. However, oil and natural
gas derivative financial instruments used to risk manage the
near-term portions of the LNG contracts are fair valued under IFRS.
The fair value accounting effect, which is reported in the gas and
low carbon energy segment, represents the change in value of LNG
contacts that are being risk managed and which is reflected in the
underlying result, but not in reported earnings. Management
believes that this gives a better representation of performance in
each period.
Furthermore, the fair values of
derivative instruments used to risk manage certain other oil, gas,
power and other contracts, are deferred to match with the
underlying exposure. The commodity contracts for business
requirements are accounted for on an accruals basis.
In addition, fair value accounting
effects include changes in the fair value of derivatives entered
into by the group to manage currency exposure and interest rate
risks relating to hybrid bonds to their respective first call
periods. The hybrid bonds which were issued on 17 June 2020
are classified as equity instruments and were recorded in the
balance sheet at that date at their USD equivalent issued value.
Under IFRS these equity instruments are not remeasured from period
to period, and do not qualify for application of hedge accounting.
The derivative instruments relating to the hybrid bonds, however,
are required to be recorded at fair value with mark to market gains
and losses recognized in the income statement. Therefore,
measurement differences in relation to the recognition of gains and
losses occur. The fair value accounting effect, which is reported
in the other businesses & corporate segment, eliminates the
fair value gains and losses of these derivative financial
instruments that are recognized in the income statement. We
believe that this gives a better representation of performance, by
more appropriately reflecting the economic effect of these risk
management activities, in each period.
Gas
& low carbon energy segment
comprises our gas and low carbon businesses. Our gas business
includes regions with upstream activities that predominantly
produce natural gas, integrated gas and power, and gas trading. Our
low carbon business includes solar, offshore and onshore wind,
hydrogen and CCS and power trading. Power trading includes trading
of both renewable and non-renewable power.
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Glossary (continued)
Gearing and net debt are
non-IFRS measures. Net debt is calculated as finance debt, as shown
in the balance sheet, plus the fair value of associated derivative
financial instruments that are used to hedge foreign currency
exchange and interest rate risks relating to finance debt, for
which hedge accounting is applied, less cash and cash equivalents.
Net debt does not include accrued interest, which is reported
within other receivables and other payables on the balance sheet
and for which the associated cash flows are presented as operating
cash flows in the group cash flow statement. Gearing is defined as
the ratio of net debt to the total of net debt plus total equity.
bp believes these measures provide useful information to investors.
Net debt enables investors to see the economic effect of finance
debt, related hedges and cash and cash equivalents in total.
Gearing enables investors to see how significant net debt is
relative to total equity. The derivatives are reported on the
balance sheet within the headings 'Derivative financial
instruments'. The nearest equivalent measures on an IFRS basis are
finance debt and finance debt ratio. A reconciliation of finance
debt to net debt is provided on page 24.
We are unable to present
reconciliations of forward-looking information for net debt or
gearing to finance debt and total equity, because without
unreasonable efforts, we are unable to forecast accurately certain
adjusting items required to present a meaningful comparable IFRS
forward-looking financial measure. These items include fair value
asset (liability) of hedges related to finance debt and cash and
cash equivalents, that are difficult to predict in advance in order
to include in an IFRS estimate.
Gearing including leases and net debt including
leases are non-IFRS measures. Net
debt including leases is calculated as net debt plus lease
liabilities, less the net amount of partner receivables and
payables relating to leases entered into on behalf of joint
operations. Gearing including leases is defined as the ratio of net
debt including leases to the total of net debt including leases
plus total equity. bp believes these measures provide useful
information to investors as they enable investors to understand the
impact of the group's lease portfolio on net debt and gearing. The
nearest equivalent measures on an IFRS basis are finance debt and
finance debt ratio. A reconciliation of finance debt to net debt
including leases is provided on page 28.
Green hydrogen - Hydrogen
produced by electrolysis of water using renewable power.
Hydrocarbons - Liquids and
natural gas. Natural gas is converted to oil equivalent at 5.8
billion cubic feet = 1 million barrels.
Hydrogen pipeline - Hydrogen
projects which have not been developed to final investment decision
(FID) but which have advanced to the concept development
stage.
Inorganic capital expenditure is a subset of capital expenditure on a cash basis and a
non-IFRS measure. Inorganic capital expenditure comprises
consideration in business combinations and certain other
significant investments made by the group. It is reported on a cash
basis. bp believes that this measure provides useful information as
it allows investors to understand how bp's management invests funds
in projects which expand the group's activities through
acquisition. The nearest equivalent measure on an IFRS basis is
capital expenditure on a cash basis. Further information and a
reconciliation to IFRS information is provided on page
26.
Installed renewables capacity is bp's share of capacity for operating assets owned by
entities where bp has an equity share.
Inventory holding gains and losses are non-IFRS adjustments to our IFRS profit (loss) and
represent:
• the
difference between the cost of sales calculated using the
replacement cost of inventory and the cost of sales calculated on
the first-in first-out (FIFO) method after adjusting for any
changes in provisions where the net realizable value of the
inventory is lower than its cost. Under the FIFO method, which we
use for IFRS reporting of inventories other than for trading
inventories, the cost of inventory charged to the income statement
is based on its historical cost of purchase or manufacture, rather
than its replacement cost. In volatile energy markets, this can
have a significant distorting effect on reported income. The
amounts disclosed as inventory holding gains and losses represent
the difference between the charge to the income statement for
inventory on a FIFO basis (after adjusting for any related
movements in net realizable value provisions) and the charge that
would have arisen based on the replacement cost of inventory. For
this purpose, the replacement cost of inventory is calculated using
data from each operation's production and manufacturing system,
either on a monthly basis, or separately for each transaction where
the system allows this approach; and
• an
adjustment relating to certain trading inventories that are not
price risk managed which relate to a minimum inventory volume that
is required to be held to maintain underlying business activities.
This adjustment represents the movement in fair value of the
inventories due to prices, on a grade by grade basis, during the
period. This is calculated from each operation's inventory
management system on a monthly basis using the discrete monthly
movement in market prices for these inventories.
The amounts disclosed are not
separately reflected in the financial statements as a gain or loss.
No adjustment is made in respect of the cost of inventories held as
part of a trading position and certain other temporary inventory
positions that are price risk-managed. See Replacement cost (RC)
profit or loss definition below.
Liquids - Liquids comprises
crude oil, condensate and natural gas liquids. For the oil
production & operations segment, it also includes
bitumen.
Low
carbon activity - An activity
relating to low carbon including: renewable electricity; bioenergy;
electric vehicles and other future mobility solutions; trading and
marketing low carbon products; blue or green hydrogen* and carbon
capture, use and storage (CCUS).
Note that, while there is some
overlap of activities, these terms do not mean the same as bp's
strategic focus area of low carbon energy or our low carbon energy
sub-segment, reported within the gas & low carbon energy
segment.
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Glossary (continued)
Major projects have a bp net
investment of at least $250 million, or are considered to be of
strategic importance to bp or of a high degree of
complexity.
Operating cash flow is net cash
provided by (used in) operating activities as stated in the
condensed group cash flow statement.
Organic capital expenditure is
a non-IFRS measure. Organic capital expenditure comprises capital
expenditure on a cash basis less inorganic capital expenditure. bp
believes that this measure provides useful information as it allows
investors to understand how bp's management invests funds in
developing and maintaining the group's assets. The nearest
equivalent measure on an IFRS basis is capital expenditure on a
cash basis and a reconciliation to IFRS information is provided on
page 26.
We are unable to present
reconciliations of forward-looking information for organic capital
expenditure to total cash capital expenditure, because without
unreasonable efforts, we are unable to forecast accurately the
adjusting item, inorganic capital expenditure, that is difficult to
predict in advance in order to derive the nearest IFRS
estimate.
Production-sharing agreement/contract (PSA/PSC)
is an arrangement through which an oil and gas
company bears the risks and costs of exploration, development and
production. In return, if exploration is successful, the oil
company receives entitlement to variable physical volumes of
hydrocarbons, representing recovery of the costs incurred and a
stipulated share of the production remaining after such cost
recovery.
Realizations are the result of
dividing revenue generated from hydrocarbon sales, excluding
revenue generated from purchases made for resale and royalty
volumes, by revenue generating hydrocarbon production volumes.
Revenue generating hydrocarbon production reflects the bp share of
production as adjusted for any production which does not generate
revenue. Adjustments may include losses due to shrinkage, amounts
consumed during processing, and contractual or regulatory host
committed volumes such as royalties. For the gas & low carbon
energy and oil production & operations segments, realizations
include transfers between businesses.
Refining availability represents Solomon Associates' operational availability for
bp-operated refineries, which is defined as the percentage of the
year that a unit is available for processing after subtracting the
annualized time lost due to turnaround activity and all planned
mechanical, process and regulatory downtime.
The Refining marker margin
(RMM) is the average of regional
indicator margins weighted for bp's crude refining capacity in each
region. Each regional marker margin is based on product yields and
a marker crude oil deemed appropriate for the region. The regional
indicator margins may not be representative of the margins achieved
by bp in any period because of bp's particular refinery
configurations and crude and product slate.
Renewables pipeline - Renewable
projects satisfying the following criteria until the point they can
be considered developed to final investment decision (FID): Site
based projects that have obtained land exclusivity rights, or for
power purchase agreement based projects an offer has been made to
the counterparty, or for auction projects pre-qualification
criteria has been met, or for acquisition projects post a binding
offer being accepted.
Replacement cost (RC) profit or loss / RC profit or loss
attributable to bp shareholders reflects the replacement cost of inventories sold in the
period and is calculated as profit or loss attributable to bp
shareholders, adjusting for inventory holding gains and losses (net
of tax). RC profit or loss for the group is not a recognized IFRS
measure. bp believes this measure is useful to illustrate to
investors the fact that crude oil and product prices can vary
significantly from period to period and that the impact on our
reported result under IFRS can be significant. Inventory holding
gains and losses vary from period to period due to changes in
prices as well as changes in underlying inventory levels. In order
for investors to understand the operating performance of the group
excluding the impact of price changes on the replacement of
inventories, and to make comparisons of operating performance
between reporting periods, bp's management believes it is helpful
to disclose this measure. The nearest equivalent measure on an IFRS
basis is profit or loss attributable to bp shareholders. A
reconciliation to IFRS information is provided on page 1. RC profit
or loss before interest and tax is bp's measure of profit or loss
that is required to be disclosed for each operating segment under
IFRS.
Reported recordable injury frequency
measures the number of reported work-related
employee and contractor incidents that result in a fatality or
injury per 200,000 hours worked. This represents reported incidents
occurring within bp's operational HSSE reporting boundary. That
boundary includes bp's own operated facilities and certain other
locations or situations. Reported incidents are investigated
throughout the year and as a result there may be changes in
previously reported incidents. Therefore comparative movements are
calculated against internal data reflecting the final outcomes of
such investigations, rather than the previously reported
comparative period, as this represents a more up to date reflection
of the safety environment.
Retail sites include sites
operated by dealers, jobbers, franchisees or brand licensees or
joint venture (JV) partners, under the bp brand. These may move to
and from the bp brand as their fuel supply agreement or brand
licence agreement expires and are renegotiated in the normal course
of business. Retail sites are primarily branded bp, ARCO, Amoco, Aral, Thorntons and TravelCenters of America
and also includes sites in India through our Jio-bp JV.
Solomon availability - See
Refining availability definition.
Strategic convenience sites are
retail sites, within the bp portfolio, which sell bp-supplied
vehicle energy (e.g. bp,
Aral, Arco, Amoco, Thorntons, bp pulse, TA and PETRO) and
either carry one of the strategic convenience brands (e.g. M&S,
Rewe to Go) or a differentiated bp-controlled convenience offer. To
be considered a strategic convenience site, the convenience offer
should have a demonstrable level of differentiation in the market
in which it operates. Strategic convenience site count includes
sites under a pilot phase.
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Glossary (continued)
Surplus cash flow does not
represent the residual cash flow available for discretionary
expenditures. It is a non-IFRS financial measure that should be
considered in addition to, not as a substitute for or superior to,
net cash provided by operating activities, reported in accordance
with IFRS. bp believes it is helpful to disclose the surplus cash
flow because this measure forms part of bp's financial
frame.
Surplus cash flow refers to the net
surplus of sources of cash over uses of cash, after reaching the
$35 billion net debt target. Sources of cash include net cash
provided by operating activities, cash provided from investing
activities and cash receipts relating to transactions involving
non-controlling interests. Uses of cash include lease liability
payments, payments on perpetual hybrid bond, dividends paid, cash
capital expenditure, the cash cost of share buybacks to offset the
dilution from vesting of awards under employee share schemes, cash
payments relating to transactions involving non-controlling
interests and currency translation differences relating to cash and
cash equivalents as presented on the condensed group cash flow
statement.
Technical service contract (TSC) - Technical service contract is an arrangement through which
an oil and gas company bears the risks and costs of exploration,
development and production. In return, the oil and gas company
receives entitlement to variable physical volumes of hydrocarbons,
representing recovery of the costs incurred and a profit margin
which reflects incremental production added to the
oilfield.
Tier 1 and tier 2 process safety events
- Tier 1 events are losses of primary containment
from a process of greatest consequence - causing harm to a member
of the workforce, damage to equipment from a fire or explosion, a
community impact or exceeding defined quantities. Tier 2 events are
those of lesser consequence. These represent reported incidents
occurring within bp's operational HSSE reporting boundary. That
boundary includes bp's own operated facilities and certain other
locations or situations. Reported process safety events are
investigated throughout the year and as a result there may be
changes in previously reported events. Therefore comparative
movements are calculated against internal data reflecting the final
outcomes of such investigations, rather than the previously
reported comparative period, as this represents a more up to date
reflection of the safety environment.
Transition growth - Activities,
represented by a set of transition growth engines, that transition
bp toward its objective to be an integrated energy company, and
that comprise our low carbon activity* alongside other businesses
that support transition, such as our power trading and marketing
business and convenience.
Underlying effective tax rate (ETR) is a non-IFRS measure. The underlying ETR is calculated by
dividing taxation on an underlying replacement cost (RC) basis by
underlying RC profit or loss before tax. Taxation on an underlying
RC basis for the group is calculated as taxation as stated on the
group income statement adjusted for taxation on inventory holding
gains and losses and total taxation on adjusting items. Information
on underlying RC profit or loss is provided below. Taxation on an
underlying RC basis presented for the operating segments is
calculated through an allocation of taxation on an underlying RC
basis to each segment. bp believes it is helpful to disclose the
underlying ETR because this measure may help investors to
understand and evaluate, in the same manner as management, the
underlying trends in bp's operational performance on a comparable
basis, period on period. Taxation on an underlying RC basis and
underlying ETR are non-IFRS measures. The nearest equivalent
measure on an IFRS basis is the ETR on profit or loss for the
period.
We are unable to present
reconciliations of forward-looking information for underlying ETR
to ETR on profit or loss for the period, because without
unreasonable efforts, we are unable to forecast accurately certain
adjusting items required to present a meaningful comparable IFRS
forward-looking financial measure. These items include the taxation
on inventory holding gains and losses and adjusting items, that are
difficult to predict in advance in order to include in an IFRS
estimate.
Underlying production - 2024
underlying production, when compared with 2023, is production after
adjusting for acquisitions and divestments, curtailments, and
entitlement impacts in our production-sharing agreements/contracts
and technical service contract*.
Underlying RC profit or loss / underlying RC profit or loss
attributable to bp shareholders is a
non-IFRS measure and is RC profit or loss* (as defined on page 34)
after excluding net adjusting items and related taxation. See page
27 for additional information on the adjusting items that are used
to arrive at underlying RC profit or loss in order to enable a full
understanding of the items and their financial impact.
Underlying RC profit or loss before interest and
tax for the operating segments or
customers & products businesses is calculated as RC profit or
loss (as defined above) including profit or loss attributable to
non-controlling interests before interest and tax for the operating
segments and excluding net adjusting items for the respective
operating segment or business.
bp believes that underlying RC
profit or loss is a useful measure for investors because it is a
measure closely tracked by management to evaluate bp's operating
performance and to make financial, strategic and operating
decisions and because it may help investors to understand and
evaluate, in the same manner as management, the underlying trends
in bp's operational performance on a comparable basis, period on
period, by adjusting for the effects of these adjusting items. The
nearest equivalent measure on an IFRS basis for the group is profit
or loss attributable to bp shareholders. The nearest equivalent
measure on an IFRS basis for segments and businesses is RC profit
or loss before interest and taxation. A reconciliation to IFRS
information is provided on page 1 for the group and pages 6-14 for
the segments.
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Glossary (continued)
Underlying RC profit or loss per share / underlying RC profit
or loss per ADS is a non-IFRS
measure. Earnings per share is defined in Note 7. Underlying RC
profit or loss per ordinary share is calculated using the same
denominator as earnings per share as defined in the consolidated
financial statements. The numerator used is underlying RC profit or
loss attributable to bp shareholders, rather than profit or loss
attributable to bp ordinary shareholders. Underlying RC profit or
loss per ADS is calculated as outlined above for underlying RC
profit or loss per share except the denominator is adjusted to
reflect one ADS equivalent to six ordinary shares. bp believes it
is helpful to disclose the underlying RC profit or loss per
ordinary share and per ADS because these measures may help
investors to understand and evaluate, in the same manner as
management, the underlying trends in bp's operational performance
on a comparable basis, period on period. The nearest equivalent
measure on an IFRS basis is basic earnings per share based on
profit or loss for the period attributable to bp ordinary
shareholders.
upstream includes oil and
natural gas field development and production within the gas &
low carbon energy and oil production & operations
segments.
upstream/hydrocarbon plant reliability
(bp-operated) is calculated taking 100% less the
ratio of total unplanned plant deferrals divided by installed
production capacity, excluding non-operated assets and bpx energy.
Unplanned plant deferrals are associated with the topside plant and
where applicable the subsea equipment (excluding wells and
reservoir). Unplanned plant deferrals include breakdowns, which
does not include Gulf of Mexico weather related
downtime.
upstream unit production costs are calculated as production cost divided by units of
production. Production cost does not include ad valorem and
severance taxes. Units of production are barrels for liquids and
thousands of cubic feet for gas. Amounts disclosed are for bp
subsidiaries only and do not include bp's share of equity-accounted
entities.
Working capital is movements in
inventories and other current and non-current assets and
liabilities as reported in the condensed group cash flow
statement.
Change in working capital adjusted
for inventory holding gains/losses, fair value accounting effects
relating to subsidiaries and other adjusting items is a non-IFRS
measure. It is calculated by adjusting for inventory holding
gains/losses reported in the period; fair value accounting effects
relating to subsidiaries reported within adjusting items for the
period; and other adjusting items relating to the non-cash movement
of US emissions obligations carried as a provision that will be
settled by allowances held as inventory. This represents what would
have been reported as movements in inventories and other current
and non-current assets and liabilities, if the starting point in
determining net cash provided by operating activities had been
underlying replacement cost profit rather than profit for the
period. The nearest equivalent measure on an IFRS basis for this is
movements in inventories and other current and non-current assets
and liabilities.
bp utilizes various arrangements in
order to manage its working capital including discounting of
receivables and, in the supply and trading business, the active
management of supplier payment terms, inventory and
collateral.
Trade marks
Trade marks of the bp group appear
throughout this announcement. They include:
bp, Amoco, Aral, ampm, bp pulse, Castrol, PETRO, TA, Thorntons, Gigahub, epic goods and earnify
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Cautionary statement
In
order to utilize the 'safe harbor' provisions of the United States
Private Securities Litigation Reform Act of 1995 (the 'PSLRA') and
the general doctrine of cautionary statements, bp is providing the
following cautionary statement:
The discussion in this results announcement contains certain
forecasts, projections and forward-looking statements - that is,
statements related to future, not past events and circumstances -
with respect to the financial condition, results of operations and
businesses of bp and certain of the plans and objectives of bp with
respect to these items. These statements may generally, but not
always, be identified by the use of words such as 'will',
'expects', 'is expected to', 'aims', 'should', 'may', 'objective',
'is likely to', 'intends', 'believes', 'anticipates', 'plans', 'we
see' or similar expressions.
In
particular, the following, among other statements, are all forward
looking in nature: plans, expectations and assumptions regarding
oil and gas demand, supply, prices or volatility; expectations
regarding reserves; expectations regarding production and volumes;
expectations regarding bp's customers & products business;
expectations regarding margins; expectations regarding underlying
effective tax rate; expectations regarding turnaround and
maintenance activity; expectations regarding financial performance,
results of operations, finance debt acquired in the fourth quarter,
and cash flows; expectations regarding cash cost savings delivery;
expectations regarding future project start-ups; expectations
regarding the timing of bp's update on its medium-term plans;
expectations regarding shareholders returns; expectations regarding
bp's convenience businesses; bp's financial guidance, including
previous guidance for at least $14 billion of share buybacks
through 2025; bp's plans and expectations regarding the amount and
timing of share buybacks and dividends; plans and expectations
regarding bp's credit rating, including in respect of maintaining a
strong investment grade credit rating and targeting further
improvements in credit metrics; plans and expectations regarding
the allocation of surplus cash flow to share buybacks; plans and
expectations regarding the sale of bp's Türkiye ground fuels
business; plans and expectations regarding development of bp's
electric vehicle (EV) charging infrastructure and RNG landfill
plants; plans and expectations related to bp's transition growth
engines, including expected capital expenditures; plans and
expectations regarding the amount or timing of payments related to
divestment and other proceeds, and the timing, quantum and nature
of certain acquisitions and divestments; expectations regarding the
timing and amount of future payments relating to the Gulf of Mexico
oil spill; expectations regarding bp's development of hydrogen and
sale of its US onshore wind energy business; plans and expectations
regarding bp's guidance for 2024 and the fourth quarter of 2024,
including expected growth, margins, businesses & corporate
underlying annual charge, timing and amount of divestment and other
proceeds, depreciation, depletion and amortization; plans and
expectations regarding capital expenditure; and plans and
expectations regarding bp-operated projects, ventures, investments,
joint ventures, partnerships and agreements with commercial
entities and other third party partners, including but not limited
to ADNOC, Audi, EOG Resources Trinidad Limited, Iberdrola, Perenco
T&T, the Republic of Iraq, SOCAR, Shell Pipeline Company LP and
Enbridge Offshore Facilities LC.
By
their nature, forward-looking statements involve risk and
uncertainty because they relate to events and depend on
circumstances that will or may occur in the future and are outside
the control of bp.
Actual results or outcomes may differ materially from those
expressed in such statements, depending on a variety of factors,
including: the extent and duration of the impact of current market
conditions including the volatility of oil prices, the effects of
bp's plan to exit its shareholding in Rosneft and other investments
in Russia, overall global economic and business conditions
impacting bp's business and demand for bp's products as well as the
specific factors identified in the discussions accompanying such
forward-looking statements; changes in consumer preferences and
societal expectations; the pace of development and adoption of
alternative energy solutions; developments in policy, law,
regulation, technology and markets, including societal and investor
sentiment related to the issue of climate change; the receipt of
relevant third party and/or regulatory approvals including ongoing
approvals required for the continued developments of approved
projects; the timing and level of maintenance and/or turnaround
activity; the timing and volume of refinery additions and outages;
the timing of bringing new fields onstream; the timing, quantum and
nature of certain acquisitions and divestments; future levels of
industry product supply, demand and pricing, including supply
growth in North America and continued base oil and additive supply
shortages; OPEC+ quota restrictions; PSA and TSC effects;
operational and safety problems; potential lapses in product
quality; economic and financial market conditions generally or in
various countries and regions; political stability and economic
growth in relevant areas of the world; changes in laws and
governmental regulations and policies, including related to climate
change; changes in social attitudes and customer preferences;
regulatory or legal actions including the types of enforcement
action pursued and the nature of remedies sought or imposed; the
actions of prosecutors, regulatory authorities and courts; delays
in the processes for resolving claims; amounts ultimately payable
and timing of payments relating to the Gulf of Mexico oil spill;
exchange rate fluctuations; development and use of new technology;
recruitment and retention of a skilled workforce; the success or
otherwise of partnering; the actions of competitors, trading
partners, contractors, subcontractors, creditors, rating agencies
and others; bp's access to future credit resources; business
disruption and crisis management; the impact on bp's reputation of
ethical misconduct and non-compliance with regulatory obligations;
trading losses; major uninsured losses; the possibility that
international sanctions or other steps taken by governmental
authorities or any other relevant persons may impact bp's ability
to sell its interests in Rosneft, or the price for which bp could
sell such interests; the actions of contractors; natural disasters
and adverse weather conditions; changes in public expectations and
other changes to business conditions; wars and acts of terrorism;
cyber-attacks or sabotage; and those factors discussed under
"Principal risks and uncertainties" in bp's Report on Form 6-K
regarding results for the six-month period ended 30 June 2024 as
filed with the US Securities and Exchange Commission (the "SEC") as
well as those factors discussed under "Risk factors" in bp's Annual
Report and Form 20-F for fiscal year 2023 as filed with the
SEC.
Top of
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