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BP p.l.c. / 3Q24 SEA Part 1 of 1
BP p.l.c.: Release of a capital market information
29.10.2024 / 08:00 CET/CEST
Dissemination of a Post-admission Duties announcement transmitted
by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this
announcement.
Top of page 1
| FOR IMMEDIATE RELEASE |
|
| London 29 October 2024 |
|
| BP p.l.c. Group results |
| Third quarter and nine months 2024 |
"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
| Driving focus and efficiencies; delivering
resilient operations |
| Financial summary |
|
Third |
Second |
Third |
|
Nine |
Nine |
| |
|
quarter |
quarter |
quarter |
|
months |
months |
| $ million |
|
2024 |
2024 |
2023 |
|
2024 |
2023 |
| Profit (loss) for the period attributable to bp
shareholders |
|
206 |
(129) |
4,858 |
|
2,340 |
14,868 |
| Inventory holding (gains) losses*, net of tax |
|
906 |
113 |
(1,212) |
|
362 |
(211) |
| Replacement cost (RC) profit (loss)* |
|
1,112 |
(16) |
3,646 |
|
2,702 |
14,657 |
| Net (favourable) adverse impact of adjusting
items*, net of tax |
|
1,155 |
2,772 |
(353) |
|
5,044 |
(3,812) |
| Underlying RC profit* |
|
2,267 |
2,756 |
3,293 |
|
7,746 |
10,845 |
| Operating cash flow* |
|
6,761 |
8,100 |
8,747 |
|
19,870 |
22,662 |
| Capital expenditure* |
|
(4,542) |
(3,691) |
(3,603) |
|
(12,511) |
(11,542) |
| Divestment and other proceeds(a) |
|
290 |
760 |
655 |
|
1,463 |
1,543 |
| Net issue (repurchase) of
shares(b) |
|
(2,001) |
(1,751) |
(2,047) |
|
(5,502) |
(6,568) |
| Net debt*(c) |
|
24,268 |
22,614 |
22,324 |
|
24,268 |
22,324 |
| Adjusted EBITDA* |
|
9,654 |
9,639 |
10,306 |
|
29,599 |
33,142 |
| Announced dividend per ordinary share (cents per
share) |
|
8.000 |
8.000 |
7.270 |
|
23.270 |
21.150 |
| Underlying RC profit per ordinary share*
(cents) |
|
13.89 |
16.61 |
19.14 |
|
46.79 |
61.83 |
| Underlying RC profit per ADS* (dollars) |
|
0.83 |
1.00 |
1.15 |
|
2.81 |
3.71 |
Highlights
- Resilient
operations: 3Q24 upstream production 2.4mmboe/d;
3Q24 refining availability 95.6%.
- 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.
| 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. |
| |
Murray Auchincloss
Chief executive officer |
| |
(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
| |
| 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. |
| |
Kate Thomson
Chief financial officer |
| |
| |
Highlights |
|
| |
3Q24 underlying replacement cost
(RC) profit $2.3 billion |
|
| |
• |
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%. |
|
| |
• |
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. |
|
| |
Segment
results |
|
| |
• |
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. |
|
| |
• |
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. |
|
| |
• |
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. |
|
| |
Operating cash
flow* $6.8 billion and net debt* $24.3 billion |
|
| |
• |
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. |
|
| |
Growing
distributions within an unchanged financial frame |
|
| |
• |
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. |
|
| |
• |
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. |
|
| |
• |
bp continues to invest with
discipline and a returns focused approach in our transition growth*
engines and in our oil, gas and refining businesses. |
|
| |
• |
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. |
|
| |
• |
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. |
|
(a) 6 February 2024.
| The commentary above
contains forward-looking statements and should be read in
conjunction with the cautionary statement on page 37. |
Contacts
| |
London |
Houston |
| |
|
|
| Press Office |
David Nicholas |
Paul Takahashi |
| |
+44 (0) 7831 095541 |
+1 713 903 9729 |
| |
|
|
| Investor Relations |
Craig Marshall |
Graham Collins |
| bp.com/investors |
+44 (0) 203 401 5592 |
+1 832 753 5116 |
BP p.l.c.'s LEI Code 213800LH1BZH3D16G760
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29.10.2024 CET/CEST The EQS Distribution
Services include Regulatory Announcements, Financial/Corporate News
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