SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
for the
period ended 30 July, 2024
BP p.l.c.
(Translation
of registrant's name into English)
1 ST JAMES'S SQUARE, LONDON, SW1Y 4PD, ENGLAND
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file
annual
reports
under cover Form 20-F or Form 40-F.
Form
20-F |X| Form 40-F
---------------
----------------
Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of
1934.
Yes No
|X|
---------------
--------------
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Exhibit
1.1
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2Q24 SEA Part 1 of
1 dated 30 July 2024 |
Top of
page 1
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FOR IMMEDIATE RELEASE
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London 30 July 2024
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BP p.l.c. Group results
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Second quarter and first half 2024(a)
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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/2882Y_1-2024-7-29.pdf
Strong cash generation, growing distributions
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Financial summary
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Second
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First
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Second
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First
|
First
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quarter
|
quarter
|
quarter
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half
|
half
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$ million
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|
2024
|
2024
|
2023
|
|
2024
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2023
|
|
Profit (loss) for the period attributable to bp
shareholders
|
|
(129)
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2,263
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1,792
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|
2,134
|
10,010
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|
Inventory holding (gains) losses*, net of tax
|
|
113
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(657)
|
549
|
|
(544)
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1,001
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|
Replacement cost (RC) profit (loss)*
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|
(16)
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1,606
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2,341
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1,590
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11,011
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|
Net (favourable) adverse impact of adjusting items*, net of
tax
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2,772
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1,117
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248
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3,889
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(3,459)
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Underlying RC profit*
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2,756
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2,723
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2,589
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5,479
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7,552
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Operating cash flow*
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8,100
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5,009
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6,293
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13,109
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13,915
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Capital expenditure*
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(3,691)
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(4,278)
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(4,314)
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(7,969)
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(7,939)
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Divestment and other proceeds(b)
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|
760
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413
|
88
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|
1,173
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888
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|
Net issue (repurchase) of shares
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|
(1,751)
|
(1,750)
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(2,073)
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|
(3,501)
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(4,521)
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Net debt*(c)
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22,614
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24,015
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23,660
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|
22,614
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23,660
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Adjusted
EBITDA*
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|
9,639
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10,306
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9,770
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19,945
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22,836
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|
Announced dividend per ordinary share (cents per
share)
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|
8.000
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7.270
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7.270
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15.270
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13.880
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Underlying RC profit per ordinary share* (cents)
|
|
16.61
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16.24
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14.77
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32.86
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42.65
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|
Underlying RC profit per ADS* (dollars)
|
|
1.00
|
0.97
|
0.89
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|
1.97
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2.56
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Highlights
●
Strong operating cash flow and
lower net debt: underlying RC
profit $2.8 billion; strong operating cash flow of $8.1 billion;
net debt reduced to $22.6 billion.
●
Robust operations:
2Q24 bp-operated upstream plant
reliability* 96.1%; 2Q24 bp-operated refining availability*
96.4%
●
Growing shareholder
distributions: Dividend per
ordinary share of 8 cents; $1.75 billion share buyback announced
for 2Q24, delivering on our commitment to announce $3.5 billion for
the first half of 2024; committed to announcing $3.5 billion share
buyback for the second half of 2024.
●
Six priorities in
action: Advancing growth
projects, taking FID on Kaskida in Gulf of Mexico; re-focusing
bioenergy business with agreement to take full ownership of bp
Bunge Bioenergia and high grading biofuels
portfolio.
|
Our businesses continue to operate safely and efficiently. We are
driving focus across the business and reducing costs, all while
building momentum in our drive to 2025. Our recent go-ahead of the
Kaskida development in the Gulf of Mexico business, and decision to
take full ownership of bp Bunge Bioenergia while scaling back plans
for new biofuels projects, demonstrate our commitment to delivering
as a simpler, more focused and higher value company. This all
supports growing returns for shareholders, as we have announced
today.
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Murray Auchincloss
Chief executive officer
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(a)
This results announcement also
represents bp's half-yearly financial report (see page
15).
(b)
Divestment
proceeds are disposal proceeds as per the condensed group cash flow
statement. See page 3 for more information on other
proceeds.
(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 33.
Top of
page 2
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We generated strong operating cash flow* in the quarter, which
helped reduce net debt* to $22.6 billion. Our decision to increase
our dividend by 10%, and extend our buyback programme commitment to
4Q 2024, reflects the confidence we have in our performance and
outlook for cash generation. We are maintaining a disciplined
financial frame and remain committed to growing value and returns
for bp.
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Kate Thomson Chief financial
officer
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Highlights
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2Q24 underlying replacement cost (RC) profit* $2.8
billion
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|
●
|
Underlying RC profit for the quarter was $2.8 billion, compared
with $2.7 billion for the previous quarter. Compared with the first
quarter 2024, the result reflects an average gas marketing and
trading result, significantly lower realized refining margins,
stronger fuels margins and lower taxation. The underlying effective
tax rate (ETR)* in the quarter was 33% which reflects the impact of
the reassessment of the recognition of deferred tax
assets.
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●
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Reported loss for the quarter was $0.1 billion, compared with a
profit of $2.3 billion for the first quarter 2024. The reported
result for the second quarter is adjusted for inventory holding
losses* of $0.1 billion (net of tax) and a net adverse impact
of adjusting items* of $2.8 billion (net of tax) to derive the
underlying RC profit. Adjusting items post-tax include a net charge
of $1.5 billion relating to asset impairments and associated
onerous contract provisions, including those relating to the
ongoing review of the Gelsenkirchen refinery and adverse post-tax
fair value accounting effects* of $0.9 billion.
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Segment results
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●
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Gas & low carbon energy: The RC loss before interest and tax
for the second quarter 2024 was $0.3 billion, compared with a
profit of $1.0 billion for the previous quarter. After
adjusting RC loss before interest and tax for a net adverse impact
of adjusting items of $1.7 billion, the underlying RC profit
before interest and tax* for the second quarter was
$1.4 billion, compared with $1.7 billion in the first
quarter 2024. The second quarter underlying result reflects an
average gas marketing and trading result compared with a strong
result in the first quarter, partially offset by the absence of
foreign exchange losses from the devaluation of the Egyptian pound
and lower exploration write-offs.
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●
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Oil production & operations: The RC profit before interest and
tax for the second quarter 2024 was $3.3 billion, compared
with $3.1 billion for the previous quarter. After adjusting RC
profit before interest and tax for a net favourable impact of
adjusting items of $0.2 billion, the underlying RC profit
before interest and tax for the second quarter was
$3.1 billion, compared with $3.1 billion in the first
quarter 2024. The second quarter underlying result reflects higher
realizations partially offset by higher exploration
write-offs.
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|
●
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Customers & products: The RC loss before interest and tax for
the second quarter 2024 was $0.1 billion, compared with a
profit of $1.0 billion for the previous quarter. After
adjusting RC loss before interest and tax for a net adverse impact
of adjusting items of $1.3 billion, the underlying RC profit
before interest and tax for the second quarter was
$1.1 billion, compared with $1.3 billion in the first
quarter 2024. The customers second quarter underlying result was
higher by $0.4 billion, reflecting stronger fuels margins,
convenience performance and seasonal volumes, and continued quarter
on quarter momentum in Castrol. The products second quarter
underlying result was lower by $0.6 billion, reflecting
significantly lower realized refining margins mainly relating to
weaker middle distillate margins and narrower North American heavy
crude oil differentials, and a higher level of turnaround activity,
partially offset by the absence of the first quarter impacts of the
Whiting refinery outage. The oil trading contribution was weak
following a strong result in the first quarter.
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Operating cash flow* $8.1 billion and net debt* reduced to $22.6
billion
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●
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Operating cash flow in the quarter of $8.1 billion was strong. This
includes a working capital* release of $0.5 billion (after
adjusting for inventory holding losses, fair value accounting
effects and other adjusting items). This largely reflects a partial
unwind of previous quarters' working capital build, partially
offset by the settlement payment for the Gulf of Mexico (see page
29). Net debt reduced to $22.6 billion, largely driven by strong
operating cash flow.
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Growing distributions within an unchanged financial
frame
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●
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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 second quarter, bp has announced
a dividend per ordinary share of 8 cents.
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●
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bp is committed to maintaining a 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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●
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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. For 2024 and 2025 we expect capital
expenditure of around $16 billion per annum.
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●
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The $1.75 billion share buyback programme announced with the first
quarter results was completed on 26 July 2024. Related to the
second quarter results, bp intends to execute a $1.75 billion share
buyback prior to reporting the third quarter results. Furthermore,
bp is committed to announcing $3.5 billion for the second half of
2024. At current market conditions and subject to maintaining a
strong investment grade credit rating, bp plans share buybacks of
at least $14 billion through 2025 as part of our commitment, on a
point forward basis, to returning at least 80% of surplus cash
flow* to shareholders.
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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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The commentary above contains forward-looking statements and should
be read in conjunction with the cautionary statement on page
39.
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Top of
page 3
Financial results
In addition to the highlights on page 2:
●
Profit
or loss attributable to bp shareholders in the second quarter and
half year was a loss of $0.1 billion and a profit of
$2.1 billion respectively, compared with a profit of
$1.8 billion and $10.0 billion in the same periods of
2023.
-
After adjusting loss or profit attributable to bp
shareholders for inventory holding losses or gains* and net impact
of adjusting items*, underlying replacement cost (RC) profit* for
the second quarter and half year was $2.8 billion and
$5.5 billion respectively, compared with $2.6 billion and
$7.6 billion for
the same periods of 2023. The underlying RC profit for the second
quarter mainly reflects an average gas marketing and trading result
compared with an exceptional result in the second quarter 2023,
lower industry refining margins, a significantly lower level of
turnaround activity in customers & products, increased volume
in oil production & operations, and lower taxation. For the
half year, the reduction mainly reflects a lower gas marketing and
trading result, lower industry refining margins and lower gas
realizations, partially offset by increased volume in oil
production & operations and lower taxation.
-
Adjusting
items in the second quarter and half year had a net adverse pre-tax
impact of $3.1 billion and $4.3 billion respectively,
compared with a net adverse pre-tax impact of $0.6 billion and
a net favourable pre-tax impact of $3.3 billion in the same
periods of 2023.
-
Adjusting
items for the second quarter and half year of 2024 include an
adverse impact of pre-tax fair value accounting effects*, relative
to management's internal measure of performance, of $1.0 billion
and $1.2 billion respectively, compared with a favourable pre-tax
impact of $1.1 billion and $5.3 billion in the same
periods of 2023. This is primarily due to an increase in the
forward price of LNG over the quarter and half year 2024, compared
to a decline in the comparative periods of 2023.
-
Adjusting items for the second quarter and half
year of 2024 include an adverse pre-tax impact of asset impairments
of $1.3 billion and $1.9 billion respectively, compared with an
adverse pre-tax impact of $1.2 billion and $1.2
billion in
the same periods of 2023. In second quarter and half year 2024
there was also an adverse impact of $0.7 billion and $0.9 billion
respectively of onerous contract provisions associated with those
impairments.
●
The
effective tax rate (ETR) on RC profit or loss* for the second
quarter and half year was 87% and 63% respectively, compared with
41% and 32% for the same periods in 2023. Excluding adjusting
items, the underlying ETR* for the second quarter and half year was
33% and 38%, compared with 43% and 41% for the same periods a year
ago. The lower underlying ETR for the second quarter and half year
reflects the impact of the reassessment of the recognition of
deferred tax assets. ETR on RC profit or loss and underlying ETR
are non-IFRS measures.
●
Operating
cash flow* for the second quarter and half year was
$8.1 billion and $13.1 billion respectively, compared
with $6.3 billion and $13.9 billion for the same periods
in 2023. The quarter-on-quarter variance has arisen as a result of
a higher working capital* release and timings of payments relating
to provisions, and the year-on-year variance is driven by the lower
underlying profit partly offset by lower tax payments.
●
Capital
expenditure* in the second quarter and half year was
$3.7 billion and $8.0 billion respectively, compared with
$4.3 billion and $7.9 billion in the same periods of
2023. Second quarter and half year 2023 include $1.1 billion in
respect of the TravelCenters of America acquisition.
●
Total divestment and other proceeds for the second
quarter and half year were $0.8 billion and $1.2 billion
respectively, compared with $0.1 billion and
$0.9 billion for
the same periods in 2023. Other proceeds for the second quarter and
half year 2024 were $0.5 billion of proceeds from the sale of a 49%
interest in a controlled affiliate holding certain midstream assets
offshore US. There were no other proceeds for the same periods in
2023.
●
At
the end of the second quarter, net debt* was $22.6 billion,
compared with $24.0 billion at the end of the first quarter
2024 and $23.7 billion at the end of the second quarter 2023
reflecting strong operating cash flow.
Analysis of RC profit (loss) before interest and tax and
reconciliation to profit (loss) for the period
|
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
|
$ million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
RC profit (loss) before interest and tax
|
|
|
|
|
|
|
|
|
gas
& low carbon energy
|
|
(315)
|
1,036
|
2,289
|
|
721
|
9,636
|
|
oil
production & operations
|
|
3,267
|
3,060
|
2,568
|
|
6,327
|
5,885
|
|
customers
& products
|
|
(133)
|
988
|
555
|
|
855
|
3,235
|
|
other
businesses & corporate
|
|
(180)
|
(300)
|
(297)
|
|
(480)
|
(387)
|
|
Consolidation
adjustment – UPII*
|
|
(73)
|
32
|
(30)
|
|
(41)
|
(52)
|
|
RC profit before interest and tax
|
|
2,566
|
4,816
|
5,085
|
|
7,382
|
18,317
|
|
Finance
costs and net finance expense relating to pensions and other
post-retirement benefits
|
|
(1,176)
|
(1,034)
|
(859)
|
|
(2,210)
|
(1,644)
|
|
Taxation on a RC basis
|
|
(1,207)
|
(2,030)
|
(1,724)
|
|
(3,237)
|
(5,297)
|
|
Non-controlling interests
|
|
(199)
|
(146)
|
(161)
|
|
(345)
|
(365)
|
|
RC profit (loss) attributable to bp shareholders*
|
|
(16)
|
1,606
|
2,341
|
|
1,590
|
11,011
|
|
Inventory holding gains (losses)*
|
|
(136)
|
851
|
(732)
|
|
715
|
(1,332)
|
|
Taxation (charge) credit on inventory holding gains and
losses
|
|
23
|
(194)
|
183
|
|
(171)
|
331
|
|
Profit (loss) for the period attributable to bp
shareholders
|
|
(129)
|
2,263
|
1,792
|
|
2,134
|
10,010
|
Analysis of underlying RC profit (loss) before interest and
tax
|
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
|
$ million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Underlying RC profit (loss) before interest and tax
|
|
|
|
|
|
|
|
|
gas
& low carbon energy
|
|
1,402
|
1,658
|
2,233
|
|
3,060
|
5,689
|
|
oil
production & operations
|
|
3,094
|
3,125
|
2,777
|
|
6,219
|
6,096
|
|
customers
& products
|
|
1,149
|
1,289
|
796
|
|
2,438
|
3,555
|
|
other
businesses & corporate
|
|
(158)
|
(154)
|
(170)
|
|
(312)
|
(466)
|
|
Consolidation
adjustment – UPII
|
|
(73)
|
32
|
(30)
|
|
(41)
|
(52)
|
|
Underlying RC profit before interest and tax
|
|
5,414
|
5,950
|
5,606
|
|
11,364
|
14,822
|
|
Finance
costs and net finance expense relating to pensions and other
post-retirement benefits
|
|
(971)
|
(942)
|
(740)
|
|
(1,913)
|
(1,421)
|
|
Taxation on an underlying RC basis
|
|
(1,488)
|
(2,139)
|
(2,116)
|
|
(3,627)
|
(5,484)
|
|
Non-controlling interests
|
|
(199)
|
(146)
|
(161)
|
|
(345)
|
(365)
|
|
Underlying RC profit attributable to bp shareholders*
|
|
2,756
|
2,723
|
2,589
|
|
5,479
|
7,552
|
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
|
Operating metrics
|
|
First half 2024
|
|
vs First half 2023
|
|
Tier 1 and tier 2 process safety events*
|
|
23
|
|
+3
|
|
Reported recordable injury frequency*
|
|
0.262
|
|
+2.7%
|
|
upstream*
production(a)
(mboe/d)
|
|
2,379
|
|
+3.4%
|
|
upstream unit production
costs*(b)
($/boe)
|
|
6.17
|
|
+4.0%
|
|
bp-operated upstream plant reliability*
|
|
95.5%
|
|
+0.5
|
|
bp-operated refining
availability*(a)
|
|
93.4%
|
|
-2.5
|
(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
3Q 2024 guidance
●
Looking
ahead, bp expects third quarter 2024 reported upstream* production
to be lower compared with second-quarter 2024, including in higher
margin regions.
●
In
its customers business, bp expects fuels margins to remain
sensitive to movements in cost of supply, and seasonally higher
volumes compared to the second quarter.
●
In
products, bp expects realized refining margins to continue to be
sensitive to relative movements in product cracks and North
American heavy crude oil differentials. In addition bp expects a
similar level of turnaround activity to the second
quarter.
●
bp
expects income taxes paid in the third quarter to be around $1
billion higher than the second quarter 2024 mainly due to the
timing of instalment payments, which are typically higher in the
third quarter each year.
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 now
expects refinery turnaround activity to have a lower financial
impact compared to 2023 reflecting the lower margin environment,
with phasing of activity in 2024 heavily weighted towards the
second half, with a higher impact in the fourth
quarter.
●
bp
continues to expect the other businesses & corporate underlying
annual charge to be around $1.0 billion for 2024. The charge may
vary from quarter to quarter.
●
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 the impact that volatility in the current
price environment may have on the geographical mix of the
group’s profits and losses.
●
bp
continues to expect capital expenditure* for 2024 to be around $16
billion, and continues to expect the phasing to be split broadly
evenly between the first half and the second half.
●
bp
continues to expect divestment and other proceeds of $2-3 billion
in 2024, weighted towards the second half. Having realized $18.9
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.
●
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
39.
|
Top of
page 6
gas & low carbon energy*
Financial results
●
The
replacement cost (RC) result before interest and tax for the second
quarter and half year was a loss of $315 million and a profit of
$721 million respectively, compared with a profit of $2,289 million
and $9,636 million for the same periods in 2023. The second quarter
and half year are adjusted by an adverse impact of net adjusting
items* of $1,717 million and $2,339 million respectively, compared
with a favourable impact of net adjusting items of $56 million and
$3,947 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 $1,011 million and $898 million for the second quarter
and half year in 2024 and a favourable impact of $1,222 million and
$5,156 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.
●
After
adjusting RC loss or profit before interest and tax for adjusting
items, the underlying RC profit before interest and tax* for the
second quarter and half year was $1,402 million and $3,060 million
respectively, compared with $2,233 million and $5,689 million for
the same periods in 2023.
●
The
underlying RC profit for the second quarter compared with the same
period in 2023, reflects an average gas marketing and trading
result compared with an exceptional result in the second quarter
2023, partly offset by a lower depreciation, depletion and
amortization charge. The underlying RC profit for the half year,
compared with the same period in 2023, reflects a lower gas
marketing and trading result and lower realizations, partly offset
by a lower depreciation, depletion and amortization
charge.
Operational update
●
Reported
production for the quarter was 899mboe/d, 0.5% lower than the same
period in 2023. Underlying production* was 0.4% higher, mainly due
to ramp-up of major projects*, partially offset by base
decline.
●
Reported
production for the half year was 907mboe/d, 3.2% lower than the
same period in 2023. Underlying production was 1.6% lower, mainly
due to base decline partially offset by major projects. Reported
production includes the effect of the disposal of the Algeria
business in 2023.
●
Renewables
pipeline* at the end of the quarter was 59.0GW (bp net), including
21.1GW bp net share of Lightsource bp's (LSbp's) pipeline. The
renewables pipeline increased by 0.7GW net during the half year. In
addition, there is over 10GW (bp net) of early stage opportunities
in LSbp's hopper.
Strategic progress
gas
●
On
4 June bp announced that the floating production storage and
offloading (FPSO) vessel, a key component of the Greater Tortue
Ahmeyim (GTA) Phase 1 LNG development, has arrived at its final
location offshore on the maritime border of Mauritania and Senegal,
following the arrival of the FLNG vessel in the first
quarter.
●
On
4 June bp signed a new five-year gas agreement with Turkish
state-owned pipeline company BOTAS. This is the fourth contract
between Shah Deniz and BOTAS stretching back to the start of
production from the Caspian Sea field in 2006.
●
On
21 June bp approved the final investment decision for the Coconut
project offshore Trinidad and Tobago.
●
On
24 July bp and its partner the National Gas Company of Trinidad and
Tobago Limited were awarded an exploration and production licence
by the Bolivarian Republic of Venezuela for the development of the
Cocuina gas discovery. Cocuina is the Venezuelan portion of the
cross-border Manakin-Cocuina gas field.
●
These
events build on the progress announced in our first-quarter
results, which comprised the following:
ADNOC
and bp announced that they have agreed to form a new joint venture
(JV) in Egypt (bp 51%, ADNOC 49%). Subject to regulatory approvals
and clearances, the formation of the JV is expected to complete
during the second half of 2024; and bp and the Korea Gas
Corporation signed an agreement for bp to supply up to 9.8 million
tonnes of LNG over an 11 year period starting in 2026 from bp's
global LNG portfolio.
low carbon energy
●
On
13 June bp signed an agreement with OQ and Dredging, Environmental
and Marine Engineering NV (DEME) to acquire a 49% stake and
operatorship in the Hyport green hydrogen* project in Duqm, Oman,
subject to regulatory approvals, which could produce around 57,000
tonnes per annum of green hydrogen.
●
On
15 July bp announced its 100MW industrial-scale green hydrogen
project has been awarded funding as part of the European IPCEI
(Important Projects of Common European interest) Hy2Infra wave. The
project, located next to bp’s Lingen refinery in Germany, is
expected to be bp’s first fully owned and operated
large-scale green hydrogen plant.
●
These
events build on the progress announced in our first-quarter
results, which comprised the following:
bp
announced it has received all the necessary regulatory approvals
and it is now 100% owner of the Beacon US offshore wind projects
and Equinor the Empire projects; and our UK joint ventures Net Zero
Teesside Power (bp 75%, Equinor 25%) and the Northern Endurance
Partnership (bp 45%, Equinor 45%, Total Energies 10%) announced the
selection of contractors for engineering, procurement, and
construction contracts with a combined value of around $5 billion.
The final award of contracts is subject to the receipt of relevant
regulatory clearances and positive FID by the projects and the UK
government.
Top of
page 7
gas & low carbon energy (continued)
|
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
|
$ million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Profit (loss) before interest and tax
|
|
(315)
|
1,036
|
2,289
|
|
721
|
9,637
|
|
Inventory holding (gains) losses*
|
|
—
|
—
|
—
|
|
—
|
(1)
|
|
RC profit (loss) before interest and tax
|
|
(315)
|
1,036
|
2,289
|
|
721
|
9,636
|
|
Net (favourable) adverse impact of adjusting items
|
|
1,717
|
622
|
(56)
|
|
2,339
|
(3,947)
|
|
Underlying RC profit before interest and tax
|
|
1,402
|
1,658
|
2,233
|
|
3,060
|
5,689
|
|
Taxation on an underlying RC basis
|
|
(369)
|
(518)
|
(575)
|
|
(887)
|
(1,536)
|
|
Underlying RC profit before interest
|
|
1,033
|
1,140
|
1,658
|
|
2,173
|
4,153
|
|
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
|
$ million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|
Total depreciation, depletion and amortization
|
|
1,209
|
1,293
|
1,407
|
|
2,502
|
2,847
|
|
|
|
|
|
|
|
|
|
|
Exploration write-offs
|
|
|
|
|
|
|
|
|
Exploration write-offs
|
|
28
|
203
|
(1)
|
|
231
|
(2)
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA*
|
|
|
|
|
|
|
|
|
Total adjusted EBITDA
|
|
2,639
|
3,154
|
3,639
|
|
5,793
|
8,534
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure*
|
|
|
|
|
|
|
|
|
gas
|
|
869
|
639
|
697
|
|
1,508
|
1,344
|
|
low carbon energy
|
|
136
|
659
|
190
|
|
795
|
556
|
|
Total capital expenditure
|
|
1,005
|
1,298
|
887
|
|
2,303
|
1,900
|
|
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
|
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Production (net of
royalties)(a)
|
|
|
|
|
|
|
|
|
Liquids* (mb/d)
|
|
98
|
102
|
103
|
|
100
|
108
|
|
Natural gas (mmcf/d)
|
|
4,648
|
4,708
|
4,641
|
|
4,678
|
4,801
|
|
Total hydrocarbons* (mboe/d)
|
|
899
|
914
|
903
|
|
907
|
936
|
|
|
|
|
|
|
|
|
|
|
Average realizations*(b)
|
|
|
|
|
|
|
|
|
Liquids ($/bbl)
|
|
79.92
|
76.92
|
73.57
|
|
78.38
|
76.42
|
|
Natural gas ($/mcf)
|
|
5.47
|
5.45
|
5.53
|
|
5.46
|
6.49
|
|
Total hydrocarbons ($/boe)
|
|
36.85
|
36.64
|
36.96
|
|
36.75
|
42.01
|
(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 June
|
31 March
|
30 June
|
|
low carbon energy(c)
|
|
2024
|
2024
|
2023
|
|
|
|
|
|
|
|
Renewables (bp net, GW)
|
|
|
|
|
|
Installed renewables capacity*
|
|
2.7
|
2.7
|
2.4
|
|
|
|
|
|
|
|
Developed renewables to FID*
|
|
6.5
|
6.2
|
6.1
|
|
Renewables pipeline
|
|
59.0
|
58.5
|
39.6
|
|
of which by geographical area:
|
|
|
|
|
|
Renewables
pipeline – Americas
|
|
18.4
|
18.1
|
17.8
|
|
Renewables
pipeline – Asia Pacific
|
|
21.5
|
21.3
|
12.2
|
|
Renewables
pipeline – Europe
|
|
15.5
|
15.7
|
9.5
|
|
Renewables
pipeline – Other
|
|
3.5
|
3.5
|
0.1
|
|
of which by technology:
|
|
|
|
|
|
Renewables
pipeline – offshore wind
|
|
9.6
|
9.6
|
5.3
|
|
Renewables
pipeline – onshore wind
|
|
12.7
|
12.7
|
6.3
|
|
Renewables
pipeline – solar
|
|
36.7
|
36.2
|
28.1
|
|
Total Developed renewables to FID and Renewables
pipeline
|
|
65.5
|
64.7
|
45.7
|
(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 second
quarter and half year was $3,267 million and $6,327 million
respectively, compared with $2,568 million and $5,885 million for
the same periods in 2023. The second quarter and half year are
adjusted by a favourable impact of net adjusting items* of $173
million and $108 million respectively, compared with an adverse
impact of net adjusting items of $209 million and $211 million for
the same periods in 2023.
●
After
adjusting RC profit before interest and tax for adjusting items,
the underlying RC profit before interest and tax* for the second
quarter and half year was $3,094 million and $6,219 million
respectively, compared with $2,777 million and $6,096 million for
the same periods in 2023.
●
The
underlying RC profit for the second quarter and half year, compared
with the same periods in 2023, primarily reflect increased volume,
higher liquids realizations and lower exploration write-offs partly
offset by increased depreciation charges and higher
costs.
Operational update
●
Reported
production for the quarter was 1,481mboe/d, 8.2% higher than the
second quarter of 2023. Underlying production* for the quarter was
8.3% higher compared with the second quarter of 2023 reflecting bpx
energy performance and major projects* partly offset by base
performance.
●
Reported
production for the half year was 1,472mboe/d, 7.9% higher than the
half year of 2023. Underlying production for the quarter was 7.9%
higher compared with the half year of 2023 reflecting bpx energy
performance and major projects* partly offset by base
performance.
Strategic Progress
●
In
the Gulf of Mexico bp acquired a 30% interest in the Hess operated
Vancouver prospect.
●
bp
has been awarded a 10% interest in the ADNOC-operated LNG facility
in Abu Dhabi, ADNOC and its partners approved the final investment
decision in June. Subject to obtaining necessary regulatory
approvals, the project is expected to have an LNG production
capacity of 9.6mmt per annum.
●
bp
made the final investment decision on the Kaskida project in the
deepwater Gulf of Mexico. Kaskida will be bp's sixth hub in the
Gulf of Mexico and is expected to have a production capacity of
80,000 barrels of crude oil per day (bp 100%).
●
These
events build on the progress announced in our first-quarter
results:
The
start-up of oil production from the new Azeri Central East (ACE)
platform in the Azerbaijan sector of the Caspian Sea; bpx energy
brought online 'Checkmate', its third central processing facility
in the Permian Basin; Final investment decision on the Atlantis
Drill Center Expansion which will be a two well tie back to the
Atlantis facility in the Gulf of Mexico; the award of a licence for
two blocks in the central North Sea, consolidating our position
around our Eastern Trough Area Project (ETAP) central processing
facility; Aker BP was awarded interest in 27 licences (of which it
will operate 17) in the North Sea and Norwegian Sea; and Azule
Energy announced it had agreed to acquire a 42.5% interest in
exploration block 2914A (PEL85), Orange Basin.
|
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
|
$ million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Profit before interest and tax
|
|
3,268
|
3,059
|
2,568
|
|
6,327
|
5,886
|
|
Inventory holding (gains) losses*
|
|
(1)
|
1
|
—
|
|
—
|
(1)
|
|
RC profit before interest and tax
|
|
3,267
|
3,060
|
2,568
|
|
6,327
|
5,885
|
|
Net (favourable) adverse impact of adjusting items
|
|
(173)
|
65
|
209
|
|
(108)
|
211
|
|
Underlying RC profit before interest and tax
|
|
3,094
|
3,125
|
2,777
|
|
6,219
|
6,096
|
|
Taxation on an underlying RC basis
|
|
(1,171)
|
(1,509)
|
(1,413)
|
|
(2,680)
|
(3,179)
|
|
Underlying RC profit before interest
|
|
1,923
|
1,616
|
1,364
|
|
3,539
|
2,917
|
Top of
page 10
oil production & operations (continued)
|
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
|
$ million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|
Total depreciation, depletion and amortization
|
|
1,698
|
1,657
|
1,370
|
|
3,355
|
2,697
|
|
|
|
|
|
|
|
|
|
|
Exploration write-offs
|
|
|
|
|
|
|
|
|
Exploration write-offs
|
|
99
|
3
|
242
|
|
102
|
293
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA*
|
|
|
|
|
|
|
|
|
Total adjusted EBITDA
|
|
4,891
|
4,785
|
4,389
|
|
9,676
|
9,086
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure*
|
|
|
|
|
|
|
|
|
Total capital expenditure
|
|
1,534
|
1,776
|
1,478
|
|
3,310
|
2,998
|
|
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
|
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Production (net of
royalties)(a)
|
|
|
|
|
|
|
|
|
Liquids* (mb/d)
|
|
1,085
|
1,056
|
1,000
|
|
1,071
|
1,003
|
|
Natural gas (mmcf/d)
|
|
2,292
|
2,364
|
2,140
|
|
2,328
|
2,100
|
|
Total hydrocarbons* (mboe/d)
|
|
1,481
|
1,463
|
1,369
|
|
1,472
|
1,365
|
|
|
|
|
|
|
|
|
|
|
Average realizations*(b)
|
|
|
|
|
|
|
|
|
Liquids ($/bbl)
|
|
73.01
|
70.53
|
69.19
|
|
71.79
|
70.40
|
|
Natural gas ($/mcf)
|
|
2.02
|
2.66
|
3.23
|
|
2.35
|
4.90
|
|
Total hydrocarbons ($/boe)
|
|
55.78
|
54.11
|
54.57
|
|
54.94
|
58.40
|
(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) result before interest
and tax for the second quarter and half year was
a loss of $133 million and a profit of $855 million respectively,
compared with a profit of $555 million and $3,235
million for
the same periods in 2023. The second quarter and half year are
adjusted by an adverse impact of net adjusting items* of $1,282
million and $1,583 million respectively, mainly related to an
impairment of the Gelsenkirchen refinery and associated onerous
contract provisions, compared with an adverse impact of net
adjusting items of $241 million and $320 million for the same
periods in 2023.
●
After
adjusting RC loss or profit before interest and tax for adjusting
items, the underlying RC profit before interest and tax* for the
second quarter and half year was $1,149 million and $2,438 million
respectively, compared with $796 million and $3,555 million for the
same periods in 2023.
●
The
customers & products result for the second quarter was higher
than the same period in 2023. The result for the half year was
significantly lower than the same period in 2023, primarily
reflecting a lower refining result.
●
customers
– the customers result for the
second quarter and first half was stronger compared to the same
periods in 2023. The result benefited from higher retail fuels
margins, a stronger Castrol result driven by higher volumes and margins,
continued growth in convenience, and favourable foreign exchange
movements. This was partly offset by a weaker European midstream
performance driven by biofuels margins. The contribution of
TravelCenters of America continues to be impacted by the US freight
recession.
●
products
– the products result for the
second quarter was higher compared with the same period last year.
In refining, the result for the second quarter was impacted by
lower industry refining margins and benefited from a significantly
lower level of turnaround activity. The oil trading contribution
for the second quarter was weak. The products result for the first
half was significantly lower compared with the same period in 2023,
primarily reflecting a lower refining result. In refining, in
addition to the second quarter factors noted above, the first
quarter result was impacted by lower industry refining margins and
the plant-wide power outage at the Whiting
refinery.
Operational update
●
bp-operated
refining availability* for the second quarter and half year was
96.4% and 93.4%, compared with 95.7% and 95.9% for the same periods
in 2023, with the half year lower mainly due to the first quarter
Whiting refinery power outage.
Strategic progress
●
On
22 May bp entered into a binding agreement to acquire fuel and
convenience retailer, X Convenience, expanding its network with the
addition of over 50 sites in South and Western Australia. Subject
to customary regulatory approvals, the transaction is currently
anticipated to close in the first half of 2025.
●
On
24 May, bp Southern Africa (Pty) Ltd (bpSA) and Shell Downstream
South Africa (Pty) Ltd (SDSA) agreed the sale of their respective
50% ownership assets to the South African state-owned entity,
Central Energy Fund SOC Ltd (CEF). The sale is subject to
regulatory approvals and currently anticipated to close by the end
of fourth quarter 2024.
●
On
19 June 2024 bp completed the sale of its 8.3% shareholding in
Channel Infrastructure, which owns and operates New Zealand’s
Marsden Point fuel import terminal. Our long-term terminal storage
agreements with Channel Infrastructure to meet bp’s
foreseeable import and supply requirements are unaffected by the
sale of these shares.
●
On
20 June bp agreed to acquire Bunge’s 50% holding interest in
its bp Bunge Bioenergia joint venture, one of Brazil’s
leading biofuels-producing companies, with capacity to produce
around 50,000 barrels a day of ethanol equivalent from sugarcane.
Subject to regulatory approvals, the transaction is currently
anticipated to close by end 2024.
●
In
June bp also announced it was scaling back plans for development of
new SAF and renewable diesel biofuels projects at its existing
sites, pausing planning for two potential projects while continuing
to assess three for progression.
●
In June Castrol announced an investment of up to $50 million in
Gogoro Inc., a global technology leader in two-wheeler
battery-swapping ecosystems that enable smart mobility solutions
for cities, as part of diversification opportunities beyond its
core lubricants and fluids business under its new ‘Onward,
Upward, Forward’ strategy.
●
EV charge points* installed and energy sold in the
first half grew by around 30% and around two-fold respectively,
compared to the same period last year, with charge points now at
around 35,700. In July, bp pulse signed a deal with Simon Property
Group to install and operate up to 900
ultra-fast(a)
charging bays at up to 75 sites across
the US, with initial sites expected to open to the public in early
2026. In addition, ADAC, the leading automobile association in
Germany with over 20 million members, announced bp pulse as their
new exclusive EV charging partner from 1
August.
●
During
the second quarter bp’s Archaea Energy started up three
renewable natural gas (RNG) landfill plants with total capacity of
more than 2 million mmBtu per annum, and also will be commissioning
four additional plants targeting start-up in the third
quarter.
●
These
events build on the progress announced in our first quarter
results, including:
o
bp
announced plans to transform the Gelsenkirchen refinery site by the
end of the decade.
o
bp’s
Archaea Energy brought online its largest Archaea Modular Design
(AMD) RNG plant in Kansas City, Missouri and completed the purchase
of Sunshine Gas Producers with its facility in
California.
(a)
"ultra-fast"
includes charger capacity of ≥150kW.
Top of
page 12
customers & products (continued)
|
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
|
$ million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Profit (loss) before interest and tax
|
|
(270)
|
1,840
|
(177)
|
|
1,570
|
1,901
|
|
Inventory holding (gains) losses*
|
|
137
|
(852)
|
732
|
|
(715)
|
1,334
|
|
RC profit (loss) before interest and tax
|
|
(133)
|
988
|
555
|
|
855
|
3,235
|
|
Net (favourable) adverse impact of adjusting items
|
|
1,282
|
301
|
241
|
|
1,583
|
320
|
|
Underlying RC profit before interest and tax
|
|
1,149
|
1,289
|
796
|
|
2,438
|
3,555
|
|
Of which:(a)
|
|
|
|
|
|
|
|
|
customers
– convenience & mobility
|
|
790
|
370
|
701
|
|
1,160
|
1,092
|
|
Castrol – included in customers
|
|
211
|
184
|
171
|
|
395
|
332
|
|
products
– refining & trading
|
|
359
|
919
|
95
|
|
1,278
|
2,463
|
|
Taxation on an underlying RC basis
|
|
(125)
|
(333)
|
(271)
|
|
(458)
|
(1,048)
|
|
Underlying RC profit before interest
|
|
1,024
|
956
|
525
|
|
1,980
|
2,507
|
(a)
A
reconciliation to RC profit before interest and tax by business is
provided on page 30.
|
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
|
$ million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Adjusted EBITDA*(b)
|
|
|
|
|
|
|
|
|
customers – convenience & mobility
|
|
1,281
|
854
|
1,149
|
|
2,135
|
1,881
|
|
Castrol – included in customers
|
|
253
|
226
|
213
|
|
479
|
413
|
|
products – refining & trading
|
|
807
|
1,379
|
541
|
|
2,186
|
3,365
|
|
|
|
2,088
|
2,233
|
1,690
|
|
4,321
|
5,246
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|
Total depreciation, depletion and amortization
|
|
939
|
944
|
894
|
|
1,883
|
1,691
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure*
|
|
|
|
|
|
|
|
|
customers – convenience & mobility
|
|
497
|
566
|
1,452
|
|
1,063
|
1,910
|
|
Castrol – included in customers
|
|
74
|
43
|
44
|
|
117
|
112
|
|
products – refining & trading
|
|
548
|
554
|
406
|
|
1,102
|
938
|
|
Total capital expenditure
|
|
1,045
|
1,120
|
1,858
|
|
2,165
|
2,848
|
(b)
A
reconciliation to RC profit before interest and tax by business is
provided on page 30.
Top of
page 13
customers & products (continued)
|
Retail(c)
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
|
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
bp retail sites* – total (#)
|
|
21,200
|
21,150
|
21,100
|
|
21,200
|
21,100
|
|
Strategic
convenience sites*
|
|
2,950
|
2,900
|
2,750
|
|
2,950
|
2,750
|
(c)
Reported
to the nearest 50.
|
Marketing sales of refined products (mb/d)
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
|
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
US
|
|
1,271
|
1,080
|
1,275
|
|
1,177
|
1,177
|
|
Europe
|
|
1,077
|
940
|
1,056
|
|
1,008
|
1,015
|
|
Rest of World
|
|
462
|
469
|
472
|
|
465
|
467
|
|
|
|
2,810
|
2,489
|
2,803
|
|
2,650
|
2,659
|
|
Trading/supply sales of refined products
|
|
387
|
352
|
353
|
|
370
|
343
|
|
Total sales volume of refined products
|
|
3,197
|
2,841
|
3,156
|
|
3,020
|
3,002
|
|
Refining marker margin*
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
|
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
bp average refining marker margin (RMM) ($/bbl)
|
|
20.6
|
20.6
|
24.7
|
|
20.6
|
26.4
|
|
Refinery throughputs (mb/d)
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
|
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
US
|
|
670
|
525
|
638
|
|
598
|
662
|
|
Europe
|
|
722
|
830
|
726
|
|
775
|
779
|
|
Total refinery throughputs
|
|
1,392
|
1,355
|
1,364
|
|
1,373
|
1,441
|
|
bp-operated refining availability* (%)
|
|
96.4
|
90.4
|
95.7
|
|
93.4
|
95.9
|
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) loss before interest and
tax for the second quarter and half year was $180 million and $480
million respectively, compared with a loss of $297 million and $387
million for the same periods in 2023. The second quarter and half
year are adjusted by an adverse impact of net adjusting items* of
$22 million and $168 million respectively, compared with an adverse
impact of net adjusting items of $127 million and a favourable
impact of $79 million for the same periods in 2023. Adjusting items
include impacts of fair value accounting effects* which are an
adverse impact of $29 million for the quarter and $222 million for
the half year in 2024, and an adverse impact of $48 million and a
favourable impact of $197 million for
the same periods in 2023.
●
After
adjusting RC loss before interest and tax for adjusting items, the
underlying RC loss before interest and tax* for the second quarter
and half year was $158 million and $312 million respectively,
compared with a loss of $170 million and $466 million for the same
periods in 2023.
Strategic progress
●
In
May bp ventures announced the investment of $10 million in Hysata
to expand the production of its high efficiency electrolyser
technology.
●
This
event builds on the progress announced in our first-quarter results
in which bp launchpad divested all of its 100% shareholding in
Insight Analytics Solutions Holdings Limited (“Onyx”)
to Macquarie Capital.
|
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
|
$ million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
Profit (loss) before interest and tax
|
|
(180)
|
(300)
|
(297)
|
|
(480)
|
(387)
|
|
Inventory holding (gains) losses*
|
|
—
|
—
|
—
|
|
—
|
—
|
|
RC profit (loss) before interest and tax
|
|
(180)
|
(300)
|
(297)
|
|
(480)
|
(387)
|
|
Net (favourable) adverse impact of adjusting
items(a)
|
|
22
|
146
|
127
|
|
168
|
(79)
|
|
Underlying RC profit (loss) before interest and tax
|
|
(158)
|
(154)
|
(170)
|
|
(312)
|
(466)
|
|
Taxation on an underlying RC basis
|
|
3
|
99
|
10
|
|
102
|
39
|
|
Underlying RC profit (loss) before interest
|
|
(155)
|
(55)
|
(160)
|
|
(210)
|
(427)
|
(a)
Includes
fair value accounting effects relating to hybrid bonds. See page 34
for more information.
Top of
page 15
This results announcement also represents BP’s half-yearly
financial report for the purposes of the Disclosure Guidance and
Transparency Rules made by the UK Financial Conduct Authority. In
this context: (i) the condensed set of financial statements can be
found on pages 17-26; (ii) pages 1-14, and 27-39 comprise the
interim management report; and (iii) the directors’
responsibility statement and auditors’ independent review
report can be found on pages 15-16.
Statement of directors’ responsibilities
The directors confirm that, to the best of their knowledge, the
condensed set of financial statements on pages 17-26 has been
prepared in accordance with United Kingdom adopted IAS 34
‘Interim Financial Reporting’, and that the interim
management report on pages 1-14, and 27-39 includes a fair review
of the information required by the Disclosure Guidance and
Transparency Rules.
The directors of BP p.l.c. are listed on pages 83-85 of
bp Annual Report
and Form 20-F 2023, with the
following exceptions: Paula Rosput Reynolds and Sir John Sawers
retired at the 2024 Annual General Meeting on 25 April
2024.
By order of the board
|
Murray Auchincloss
|
Kate Thomson
|
|
Chief Executive Officer
|
Chief Financial Officer
|
|
29 July 2024
|
29 July 2024
|
Top of
page 16
Independent review report to BP p.l.c.
Conclusion
We have been engaged by the company to review the condensed set of
financial statements in the half-yearly financial report for the
six months ended 30 June 2024 which comprises the group income
statement, condensed group statement of comprehensive income,
condensed group statement of changes in equity, group balance
sheet, condensed cash flow statement and related notes 1 to
10.
Based on our review, nothing has come to our attention that causes
us to believe that the condensed set of financial statements in the
half-yearly financial report for the six months ended 30 June 2024
is not prepared, in all material respects, in accordance with
United Kingdom adopted International Accounting Standard 34 and the
Disclosure Guidance and Transparency Rules of the United
Kingdom’s Financial Conduct Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard
on Review Engagements (UK) 2410 'Review of Interim Financial
Information Performed by the Independent Auditor of the Entity'
issued by the Financial Reporting Council for use in the United
Kingdom (ISRE (UK) 2410). A review of interim financial information
consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
As disclosed in note 1, the annual financial statements of the
group are prepared in accordance with 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. The condensed set of financial
statements included in this half-yearly financial report has been
prepared in accordance with United Kingdom adopted International
Accounting Standard 34, 'Interim Financial Reporting'.
Conclusion Relating to Going Concern
Based on our review procedures, which are less extensive than those
performed in an audit as described in the Basis for Conclusion
section of this report, nothing has come to our attention to
suggest that the directors have inappropriately adopted the going
concern basis of accounting or that the directors have identified
material uncertainties relating to going concern that are not
appropriately disclosed.
This Conclusion is based on the review procedures performed in
accordance with ISRE (UK) 2410; however, future events or
conditions may cause the entity to cease to continue as a going
concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly
financial report in accordance with the Disclosure Guidance and
Transparency Rules of the United Kingdom’s Financial Conduct
Authority.
In preparing the half-yearly financial report, the directors are
responsible for assessing the group’s ability to continue as
a going concern, disclosing as applicable, matters related to going
concern and using the going concern basis of accounting unless the
directors either intend to liquidate the company or to cease
operations, or have no realistic alternative but to do
so.
Auditor’s Responsibilities for the review of the financial
information
In reviewing the half-yearly financial report, we are responsible
for expressing to the company a conclusion on the condensed set of
financial statements in the half-yearly financial report. Our
Conclusion, including our Conclusion Relating to Going Concern, are
based on procedures that are less extensive than audit procedures,
as described in the Basis for Conclusion paragraph of this
report.
Use of our report
This report is made solely to the company in accordance with ISRE
(UK) 2410. Our work has been undertaken so that we might state to
the company those matters we are required to state to it in an
independent review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the company, for our review work, for this
report, or for the conclusions we have formed.
Deloitte LLP
Statutory Auditor
London, United Kingdom
29 July 2024
The maintenance and integrity of the BP p.l.c. website are the
responsibility of the directors; the review work carried out by the
statutory auditors does not involve consideration of these matters
and, accordingly, the statutory auditors accept no responsibility
for any changes that may have occurred to the financial information
since it was initially presented on the website.
Legislation in the United Kingdom governing the preparation and
dissemination of financial statements may differ from legislation
in other jurisdictions.
Top of
page 17
Financial statements
Group income statement
|
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
|
$ million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
|
|
|
|
|
|
|
|
|
Sales and other operating revenues (Note 5)
|
|
47,299
|
48,880
|
48,538
|
|
96,179
|
104,720
|
|
Earnings from joint ventures – after interest and
tax
|
|
250
|
178
|
360
|
|
428
|
555
|
|
Earnings from associates – after interest and
tax
|
|
266
|
298
|
231
|
|
564
|
404
|
|
Interest and other income
|
|
414
|
381
|
378
|
|
795
|
626
|
|
Gains on sale of businesses and fixed assets
|
|
21
|
224
|
(28)
|
|
245
|
125
|
|
Total revenues and other income
|
|
48,250
|
49,961
|
49,479
|
|
98,211
|
106,430
|
|
Purchases
|
|
28,891
|
27,647
|
29,172
|
|
56,538
|
58,294
|
|
Production and manufacturing expenses
|
|
6,692
|
6,847
|
6,231
|
|
13,539
|
13,213
|
|
Production and similar taxes
|
|
484
|
444
|
404
|
|
928
|
878
|
|
Depreciation, depletion and amortization (Note 6)
|
|
4,098
|
4,150
|
3,923
|
|
8,248
|
7,723
|
|
Net impairment and losses on sale of businesses and fixed assets
(Note 3)
|
|
1,309
|
737
|
1,269
|
|
2,046
|
1,357
|
|
Exploration expense
|
|
179
|
247
|
293
|
|
426
|
399
|
|
Distribution and administration expenses
|
|
4,167
|
4,222
|
3,834
|
|
8,389
|
7,581
|
|
Profit (loss) before interest and taxation
|
|
2,430
|
5,667
|
4,353
|
|
8,097
|
16,985
|
|
Finance costs
|
|
1,216
|
1,075
|
920
|
|
2,291
|
1,763
|
|
Net
finance (income) expense relating to pensions and other
post-retirement benefits
|
|
(40)
|
(41)
|
(61)
|
|
(81)
|
(119)
|
|
Profit (loss) before taxation
|
|
1,254
|
4,633
|
3,494
|
|
5,887
|
15,341
|
|
Taxation
|
|
1,184
|
2,224
|
1,541
|
|
3,408
|
4,966
|
|
Profit (loss) for the period
|
|
70
|
2,409
|
1,953
|
|
2,479
|
10,375
|
|
Attributable to
|
|
|
|
|
|
|
|
|
bp
shareholders
|
|
(129)
|
2,263
|
1,792
|
|
2,134
|
10,010
|
|
Non-controlling
interests
|
|
199
|
146
|
161
|
|
345
|
365
|
|
|
|
70
|
2,409
|
1,953
|
|
2,479
|
10,375
|
|
|
|
|
|
|
|
|
|
|
Earnings per share (Note 7)
|
|
|
|
|
|
|
|
|
Profit (loss) for the period attributable to bp
shareholders
|
|
|
|
|
|
|
|
|
Per
ordinary share (cents)
|
|
|
|
|
|
|
|
|
Basic
|
|
(0.78)
|
13.57
|
10.22
|
|
12.85
|
56.53
|
|
Diluted
|
|
(0.78)
|
13.25
|
10.01
|
|
12.54
|
55.40
|
|
Per
ADS (dollars)
|
|
|
|
|
|
|
|
|
Basic
|
|
(0.05)
|
0.81
|
0.61
|
|
0.77
|
3.39
|
|
Diluted
|
|
(0.05)
|
0.80
|
0.60
|
|
0.75
|
3.32
|
Top of
page 18
Condensed group statement of comprehensive income
|
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
|
$ million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) for the period
|
|
70
|
2,409
|
1,953
|
|
2,479
|
10,375
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to profit or
loss
|
|
|
|
|
|
|
|
|
Currency
translation differences
|
|
(142)
|
(448)
|
11
|
|
(590)
|
464
|
|
Cash
flow hedges and costs of hedging
|
|
(100)
|
(115)
|
(56)
|
|
(215)
|
490
|
|
Share
of items relating to equity-accounted entities, net of
tax
|
|
10
|
(8)
|
(27)
|
|
2
|
(230)
|
|
Income
tax relating to items that may be reclassified
|
|
40
|
(4)
|
71
|
|
36
|
(5)
|
|
|
|
(192)
|
(575)
|
(1)
|
|
(767)
|
719
|
|
Items that will not be reclassified to profit or loss
|
|
|
|
|
|
|
|
|
Remeasurements
of the net pension and other post-retirement benefit liability or
asset
|
|
(240)
|
(66)
|
(855)
|
|
(306)
|
(942)
|
|
Remeasurements
of equity investments
|
|
(17)
|
(13)
|
—
|
|
(30)
|
—
|
|
Cash
flow hedges that will subsequently be transferred to the balance
sheet
|
|
—
|
(3)
|
—
|
|
(3)
|
—
|
|
Income tax relating to items that will not be
reclassified(a)
|
|
59
|
674
|
308
|
|
733
|
331
|
|
|
|
(198)
|
592
|
(547)
|
|
394
|
(611)
|
|
Other comprehensive income
|
|
(390)
|
17
|
(548)
|
|
(373)
|
108
|
|
Total comprehensive income
|
|
(320)
|
2,426
|
1,405
|
|
2,106
|
10,483
|
|
Attributable to
|
|
|
|
|
|
|
|
|
bp
shareholders
|
|
(520)
|
2,303
|
1,240
|
|
1,783
|
10,101
|
|
Non-controlling
interests
|
|
200
|
123
|
165
|
|
323
|
382
|
|
|
|
(320)
|
2,426
|
1,405
|
|
2,106
|
10,483
|
(a)
First
quarter and first half 2024 include 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 19
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
|
|
1,783
|
310
|
13
|
2,106
|
|
Dividends
|
|
(2,431)
|
—
|
(186)
|
(2,617)
|
|
Cash
flow hedges transferred to the balance sheet, net of
tax
|
|
(4)
|
—
|
—
|
(4)
|
|
Repurchase of ordinary share capital
|
|
(3,502)
|
—
|
—
|
(3,502)
|
|
Share-based payments, net of tax
|
|
654
|
—
|
—
|
654
|
|
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
|
|
—
|
(419)
|
—
|
(419)
|
|
Transactions
involving non-controlling interests, net of tax
|
|
236
|
—
|
247
|
483
|
|
At 30 June 2024
|
|
67,024
|
13,457
|
1,718
|
82,199
|
|
|
|
|
|
|
|
|
|
|
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
|
|
10,101
|
288
|
94
|
10,483
|
|
Dividends
|
|
(2,348)
|
—
|
(135)
|
(2,483)
|
|
Repurchase of ordinary share capital
|
|
(5,166)
|
—
|
—
|
(5,166)
|
|
Share-based payments, net of tax
|
|
205
|
—
|
—
|
205
|
|
Issue of perpetual hybrid bonds
|
|
(1)
|
133
|
—
|
132
|
|
Payments on perpetual hybrid bonds
|
|
(5)
|
(409)
|
—
|
(414)
|
|
Transactions
involving non-controlling interests, net of tax
|
|
—
|
—
|
(144)
|
(144)
|
|
At 30 June 2023
|
|
70,339
|
13,402
|
1,862
|
85,603
|
(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 20
Group balance sheet
|
|
|
30 June
|
31 December
|
|
$ million
|
|
2024
|
2023
|
|
Non-current assets
|
|
|
|
|
Property, plant and equipment
|
|
100,293
|
104,719
|
|
Goodwill
|
|
12,390
|
12,472
|
|
Intangible assets
|
|
10,301
|
9,991
|
|
Investments in joint ventures
|
|
12,346
|
12,435
|
|
Investments in associates
|
|
7,852
|
7,814
|
|
Other investments
|
|
1,943
|
2,189
|
|
Fixed assets
|
|
145,125
|
149,620
|
|
Loans
|
|
2,162
|
1,942
|
|
Trade and other receivables
|
|
1,971
|
1,767
|
|
Derivative financial instruments
|
|
10,262
|
9,980
|
|
Prepayments
|
|
661
|
623
|
|
Deferred tax assets
|
|
5,060
|
4,268
|
|
Defined benefit pension plan surpluses
|
|
7,520
|
7,948
|
|
|
|
172,761
|
176,148
|
|
Current assets
|
|
|
|
|
Loans
|
|
212
|
240
|
|
Inventories
|
|
23,345
|
22,819
|
|
Trade and other receivables
|
|
28,890
|
31,123
|
|
Derivative financial instruments
|
|
7,940
|
12,583
|
|
Prepayments
|
|
2,147
|
2,520
|
|
Current tax receivable
|
|
978
|
837
|
|
Other investments
|
|
708
|
843
|
|
Cash and cash equivalents
|
|
34,891
|
33,030
|
|
|
|
99,111
|
103,995
|
|
Assets classified as held for sale (Note 2)
|
|
1,512
|
151
|
|
|
|
100,623
|
104,146
|
|
Total assets
|
|
273,384
|
280,294
|
|
Current liabilities
|
|
|
|
|
Trade and other payables
|
|
57,660
|
61,155
|
|
Derivative financial instruments
|
|
4,339
|
5,250
|
|
Accruals
|
|
5,703
|
6,527
|
|
Lease liabilities
|
|
2,593
|
2,650
|
|
Finance debt
|
|
4,142
|
3,284
|
|
Current tax payable
|
|
2,894
|
2,732
|
|
Provisions
|
|
4,016
|
4,418
|
|
|
|
81,347
|
86,016
|
|
Liabilities directly associated with assets classified as held for
sale (Note 2)
|
|
31
|
62
|
|
|
|
81,378
|
86,078
|
|
Non-current liabilities
|
|
|
|
|
Other payables
|
|
8,913
|
10,076
|
|
Derivative financial instruments
|
|
12,032
|
10,402
|
|
Accruals
|
|
1,096
|
1,310
|
|
Lease liabilities
|
|
8,104
|
8,471
|
|
Finance debt
|
|
50,844
|
48,670
|
|
Deferred tax liabilities
|
|
9,125
|
9,617
|
|
Provisions
|
|
14,571
|
14,721
|
|
Defined benefit pension plan and other post-retirement benefit plan
deficits
|
|
5,122
|
5,456
|
|
|
|
109,807
|
108,723
|
|
Total liabilities
|
|
191,185
|
194,801
|
|
Net assets
|
|
82,199
|
85,493
|
|
Equity
|
|
|
|
|
bp shareholders’ equity |