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|
---------------
--------------
Exhibit
1.1
|
2Q24 SEA Part 1 of
1 dated 30 July 2024 |
Top of
page 1
FOR IMMEDIATE RELEASE
|
|
London 30 July 2024
|
|
BP p.l.c. Group results
|
Second quarter and first half 2024(a)
|
“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
Financial summary
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
$ million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
Profit (loss) for the period attributable to bp
shareholders
|
|
(129)
|
2,263
|
1,792
|
|
2,134
|
10,010
|
Inventory holding (gains) losses*, net of tax
|
|
113
|
(657)
|
549
|
|
(544)
|
1,001
|
Replacement cost (RC) profit (loss)*
|
|
(16)
|
1,606
|
2,341
|
|
1,590
|
11,011
|
Net (favourable) adverse impact of adjusting items*, net of
tax
|
|
2,772
|
1,117
|
248
|
|
3,889
|
(3,459)
|
Underlying RC profit*
|
|
2,756
|
2,723
|
2,589
|
|
5,479
|
7,552
|
Operating cash flow*
|
|
8,100
|
5,009
|
6,293
|
|
13,109
|
13,915
|
Capital expenditure*
|
|
(3,691)
|
(4,278)
|
(4,314)
|
|
(7,969)
|
(7,939)
|
Divestment and other proceeds(b)
|
|
760
|
413
|
88
|
|
1,173
|
888
|
Net issue (repurchase) of shares
|
|
(1,751)
|
(1,750)
|
(2,073)
|
|
(3,501)
|
(4,521)
|
Net debt*(c)
|
|
22,614
|
24,015
|
23,660
|
|
22,614
|
23,660
|
Adjusted
EBITDA*
|
|
9,639
|
10,306
|
9,770
|
|
19,945
|
22,836
|
Announced dividend per ordinary share (cents per
share)
|
|
8.000
|
7.270
|
7.270
|
|
15.270
|
13.880
|
Underlying RC profit per ordinary share* (cents)
|
|
16.61
|
16.24
|
14.77
|
|
32.86
|
42.65
|
Underlying RC profit per ADS* (dollars)
|
|
1.00
|
0.97
|
0.89
|
|
1.97
|
2.56
|
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.
|
|
Murray Auchincloss
Chief executive officer
|
|
(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
|
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.
|
|
Kate Thomson Chief financial
officer
|
|
|
Highlights
|
|
|
2Q24 underlying replacement cost (RC) profit* $2.8
billion
|
|
|
●
|
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.
|
|
|
●
|
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.
|
|
|
Segment results
|
|
|
●
|
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.
|
|
|
●
|
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.
|
|
|
●
|
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.
|
|
|
Operating cash flow* $8.1 billion and net debt* reduced to $22.6
billion
|
|
|
●
|
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.
|
|
|
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 second quarter, bp has announced
a dividend per ordinary share of 8 cents.
|
|
|
●
|
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.
|
|
|
●
|
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.
|
|
|
●
|
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.
|
|
|
●
|
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.
|
|
The commentary above contains forward-looking statements and should
be read in conjunction with the cautionary statement on page
39.
|
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
|
|
67,024
|
70,283
|
Non-controlling interests
|
|
15,175
|
15,210
|
Total equity
|
|
82,199
|
85,493
|
Top of
page 21
Condensed group cash flow statement
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
$ million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
Operating activities
|
|
|
|
|
|
|
|
Profit (loss) before taxation
|
|
1,254
|
4,633
|
3,494
|
|
5,887
|
15,341
|
Adjustments
to reconcile profit (loss) before taxation to net cash provided by
operating activities
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization and exploration expenditure written
off
|
|
4,225
|
4,356
|
4,164
|
|
8,581
|
8,014
|
Net
impairment and (gain) loss on sale of businesses and fixed
assets
|
|
1,288
|
513
|
1,297
|
|
1,801
|
1,232
|
Earnings
from equity-accounted entities, less dividends
received
|
|
19
|
(96)
|
(31)
|
|
(77)
|
(30)
|
Net
charge for interest and other finance expense, less net interest
paid
|
|
524
|
192
|
102
|
|
716
|
165
|
Share-based
payments
|
|
507
|
161
|
243
|
|
668
|
221
|
Net
operating charge for pensions and other post-retirement benefits,
less contributions and benefit payments for unfunded
plans
|
|
(34)
|
(32)
|
(47)
|
|
(66)
|
(90)
|
Net
charge for provisions, less payments
|
|
764
|
(683)
|
(221)
|
|
81
|
(1,320)
|
Movements
in inventories and other current and non-current assets and
liabilities
|
|
1,556
|
(2,131)
|
(742)
|
|
(575)
|
(4,497)
|
Income
taxes paid
|
|
(2,003)
|
(1,904)
|
(1,966)
|
|
(3,907)
|
(5,121)
|
Net cash provided by operating activities
|
|
8,100
|
5,009
|
6,293
|
|
13,109
|
13,915
|
Investing activities
|
|
|
|
|
|
|
|
Expenditure on property, plant and equipment, intangible and other
assets
|
|
(3,463)
|
(3,718)
|
(3,453)
|
|
(7,181)
|
(6,582)
|
Acquisitions, net of cash acquired
|
|
(116)
|
(106)
|
(804)
|
|
(222)
|
(752)
|
Investment in joint ventures
|
|
(95)
|
(353)
|
(50)
|
|
(448)
|
(590)
|
Investment in associates
|
|
(17)
|
(101)
|
(7)
|
|
(118)
|
(15)
|
Total cash capital expenditure
|
|
(3,691)
|
(4,278)
|
(4,314)
|
|
(7,969)
|
(7,939)
|
Proceeds from disposal of fixed assets
|
|
35
|
66
|
28
|
|
101
|
43
|
Proceeds from disposal of businesses, net of cash
disposed
|
|
219
|
347
|
60
|
|
566
|
845
|
Proceeds from loan repayments
|
|
24
|
16
|
21
|
|
40
|
27
|
Cash provided from investing activities
|
|
278
|
429
|
109
|
|
707
|
915
|
Net cash used in investing activities
|
|
(3,413)
|
(3,849)
|
(4,205)
|
|
(7,262)
|
(7,024)
|
Financing activities
|
|
|
|
|
|
|
|
Net issue (repurchase) of shares (Note 7)
|
|
(1,751)
|
(1,750)
|
(2,073)
|
|
(3,501)
|
(4,521)
|
Lease liability payments
|
|
(679)
|
(694)
|
(620)
|
|
(1,373)
|
(1,175)
|
Proceeds from long-term financing
|
|
2,736
|
2,259
|
3,643
|
|
4,995
|
6,038
|
Repayments of long-term financing
|
|
(623)
|
(674)
|
(2,828)
|
|
(1,297)
|
(3,627)
|
Net increase (decrease) in short-term debt
|
|
49
|
16
|
(348)
|
|
65
|
(877)
|
Issue of perpetual hybrid bonds(a)
|
|
—
|
1,296
|
87
|
|
1,296
|
132
|
Redemption of perpetual hybrid bonds(a)
|
|
—
|
(1,288)
|
—
|
|
(1,288)
|
—
|
Payments relating to perpetual hybrid bonds
|
|
(271)
|
(256)
|
(250)
|
|
(527)
|
(486)
|
Payments
relating to transactions involving non-controlling interests (Other
interest)
|
|
—
|
—
|
—
|
|
—
|
(180)
|
Receipts
relating to transactions involving non-controlling interests (Other
interest)
|
|
508
|
16
|
2
|
|
524
|
9
|
Dividends paid - bp shareholders
|
|
(1,204)
|
(1,219)
|
(1,153)
|
|
(2,423)
|
(2,336)
|
-
non-controlling interests
|
|
(60)
|
(126)
|
(67)
|
|
(186)
|
(135)
|
Net cash provided by (used in) financing activities
|
|
(1,295)
|
(2,420)
|
(3,607)
|
|
(3,715)
|
(7,158)
|
Currency translation differences relating to cash and cash
equivalents
|
|
(11)
|
(260)
|
—
|
|
(271)
|
(14)
|
Increase (decrease) in cash and cash equivalents
|
|
3,381
|
(1,520)
|
(1,519)
|
|
1,861
|
(281)
|
Cash and cash equivalents at beginning of period
|
|
31,510
|
33,030
|
30,433
|
|
33,030
|
29,195
|
Cash and cash equivalents at end of period
|
|
34,891
|
31,510
|
28,914
|
|
34,891
|
28,914
|
(a)
See Condensed group statement of changes in equity
- footnote
(a) for further
information.
Top of
page 22
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.
The directors consider it appropriate to adopt the going concern
basis of accounting in preparing these interim financial
statements.
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.
There are no other 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.
Provisions
The nominal risk-free discount rate applied to provisions is
reviewed on a quarterly basis. The discount rate applied to the
group's provisions was revised to 4.5% in the second quarter (31
December 2023 4.0%) to reflect higher US Treasury yields. The
principal impact of this rate increase was a $0.8 billion decrease
in the decommissioning provision with a corresponding decrease in
the carrying amount of property, plant and equipment of $0.6
billion.
Note 2. Non-current assets held for sale
The carrying amount of assets classified as held for sale at 30
June 2024 is $1,512 million, with associated liabilities of
$31 million. These relate to the transactions 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 second half
of 2024. The carrying amount of assets classified as held for sale
at 30 June 2024 is $1,408 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. The carrying amount of assets classified as held for
sale at 30 June 2024 is $104 million, with associated
liabilities of $8 million. Cumulative foreign exchange losses
within reserves of approximately $930 million are expected to
be recycled to the group income statement at
completion.
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 second quarter and half year were
$1,309 million and $2,046 million respectively, compared
with net charges of $1,269 million and $1,357 million for
the same periods in 2023 and include net impairment charges for the
second quarter and half year of $1,296 million and
$1,945 million respectively, compared with net impairment
charges of $1,208 million and
$1,167 million for
the same periods in 2023.
Top of
page 23
Note 4. Analysis of replacement cost profit (loss) before interest
and tax and reconciliation to profit (loss) before
taxation
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
$ million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
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)
|
|
|
2,639
|
4,784
|
5,115
|
|
7,423
|
18,369
|
Consolidation adjustment – UPII*
|
|
(73)
|
32
|
(30)
|
|
(41)
|
(52)
|
RC profit (loss) before interest and tax
|
|
2,566
|
4,816
|
5,085
|
|
7,382
|
18,317
|
Inventory holding gains (losses)*
|
|
|
|
|
|
|
|
gas
& low carbon energy
|
|
—
|
—
|
—
|
|
—
|
1
|
oil
production & operations
|
|
1
|
(1)
|
—
|
|
—
|
1
|
customers
& products
|
|
(137)
|
852
|
(732)
|
|
715
|
(1,334)
|
Profit (loss) before interest and tax
|
|
2,430
|
5,667
|
4,353
|
|
8,097
|
16,985
|
Finance costs
|
|
1,216
|
1,075
|
920
|
|
2,291
|
1,763
|
Net
finance expense/(income) 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
|
|
|
|
|
|
|
|
|
RC profit (loss) before interest and tax*
|
|
|
|
|
|
|
|
US
|
|
1,545
|
1,610
|
2,244
|
|
3,155
|
5,319
|
Non-US
|
|
1,021
|
3,206
|
2,841
|
|
4,227
|
12,998
|
|
|
2,566
|
4,816
|
5,085
|
|
7,382
|
18,317
|
Top of
page 24
Note 5. Sales and other operating revenues
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
$ million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
By segment
|
|
|
|
|
|
|
|
gas & low carbon energy
|
|
5,809
|
8,675
|
10,428
|
|
14,484
|
28,314
|
oil production & operations
|
|
6,659
|
6,432
|
5,777
|
|
13,091
|
11,930
|
customers & products
|
|
41,100
|
39,895
|
38,051
|
|
80,995
|
76,933
|
other businesses & corporate
|
|
526
|
606
|
590
|
|
1,132
|
1,328
|
|
|
54,094
|
55,608
|
54,846
|
|
109,702
|
118,505
|
|
|
|
|
|
|
|
|
Less: sales and other operating revenues between
segments
|
|
|
|
|
|
|
|
gas & low carbon energy
|
|
371
|
270
|
840
|
|
641
|
1,376
|
oil production & operations
|
|
5,982
|
5,913
|
5,236
|
|
11,895
|
11,497
|
customers & products
|
|
25
|
293
|
(180)
|
|
318
|
(36)
|
other businesses & corporate
|
|
417
|
252
|
412
|
|
669
|
948
|
|
|
6,795
|
6,728
|
6,308
|
|
13,523
|
13,785
|
|
|
|
|
|
|
|
|
External sales and other operating revenues
|
|
|
|
|
|
|
|
gas & low carbon energy
|
|
5,438
|
8,405
|
9,588
|
|
13,843
|
26,938
|
oil production & operations
|
|
677
|
519
|
541
|
|
1,196
|
433
|
customers & products
|
|
41,075
|
39,602
|
38,231
|
|
80,677
|
76,969
|
other businesses & corporate
|
|
109
|
354
|
178
|
|
463
|
380
|
Total sales and other operating revenues
|
|
47,299
|
48,880
|
48,538
|
|
96,179
|
104,720
|
|
|
|
|
|
|
|
|
By geographical area
|
|
|
|
|
|
|
|
US
|
|
20,340
|
19,858
|
20,065
|
|
40,198
|
39,225
|
Non-US
|
|
36,832
|
39,208
|
38,492
|
|
76,040
|
84,842
|
|
|
57,172
|
59,066
|
58,557
|
|
116,238
|
124,067
|
Less: sales and other operating revenues between areas
|
|
9,873
|
10,186
|
10,019
|
|
20,059
|
19,347
|
|
|
47,299
|
48,880
|
48,538
|
|
96,179
|
104,720
|
|
|
|
|
|
|
|
|
Revenues from contracts with customers
|
|
|
|
|
|
|
|
Sales and other operating revenues include the following in
relation to revenues from contracts with customers:
|
|
|
|
|
|
|
|
Crude oil
|
|
538
|
548
|
520
|
|
1,086
|
1,157
|
Oil products
|
|
32,548
|
29,840
|
31,218
|
|
62,388
|
61,359
|
Natural gas, LNG and NGLs
|
|
4,987
|
5,751
|
5,841
|
|
10,738
|
15,485
|
Non-oil products and other revenues from contracts with
customers
|
|
3,108
|
2,928
|
2,750
|
|
6,036
|
4,622
|
Revenue from contracts with customers
|
|
41,181
|
39,067
|
40,329
|
|
80,248
|
82,623
|
Other operating revenues(a)
|
|
6,118
|
9,813
|
8,209
|
|
15,931
|
22,097
|
Total sales and other operating revenues
|
|
47,299
|
48,880
|
48,538
|
|
96,179
|
104,720
|
(a)
Principally
relates to commodity derivative transactions including sales of bp
own production in trading books.
Top of
page 25
Note 6. Depreciation, depletion and amortization
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
$ million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
Total depreciation, depletion and amortization by
segment
|
|
|
|
|
|
|
|
gas & low carbon energy
|
|
1,209
|
1,293
|
1,407
|
|
2,502
|
2,847
|
oil production & operations
|
|
1,698
|
1,657
|
1,370
|
|
3,355
|
2,697
|
customers & products
|
|
939
|
944
|
894
|
|
1,883
|
1,691
|
other businesses & corporate
|
|
252
|
256
|
252
|
|
508
|
488
|
|
|
4,098
|
4,150
|
3,923
|
|
8,248
|
7,723
|
Total depreciation, depletion and amortization by geographical
area
|
|
|
|
|
|
|
|
US
|
|
1,703
|
1,570
|
1,338
|
|
3,273
|
2,592
|
Non-US
|
|
2,395
|
2,580
|
2,585
|
|
4,975
|
5,131
|
|
|
4,098
|
4,150
|
3,923
|
|
8,248
|
7,723
|
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. 116 million and 163 million
ordinary shares repurchased for cancellation were settled during
the second quarter 2024 against the authority granted at bp's 2023
and 2024 annual general meetings respectively, for a total cost of
$1,751 million. A further 125 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 $748 million. This amount has been accrued at 30 June
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.
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
$ million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
Results for the period
|
|
|
|
|
|
|
|
Profit (loss) for the period attributable to bp
shareholders
|
|
(129)
|
2,263
|
1,792
|
|
2,134
|
10,010
|
Less: preference dividend
|
|
1
|
—
|
1
|
|
1
|
1
|
Less: (gain) loss on redemption of perpetual hybrid
bonds(a)
|
|
—
|
(10)
|
—
|
|
(10)
|
—
|
Profit (loss) attributable to bp ordinary shareholders
|
|
(130)
|
2,273
|
1,791
|
|
2,143
|
10,009
|
|
|
|
|
|
|
|
|
Number of shares (thousand)(b)(c)
|
|
|
|
|
|
|
|
Basic
weighted average number of shares outstanding
|
|
16,590,173
|
16,751,887
|
17,523,778
|
|
16,670,999
|
17,706,388
|
ADS equivalent(d)
|
|
2,765,028
|
2,791,981
|
2,920,629
|
|
2,778,499
|
2,951,064
|
|
|
|
|
|
|
|
|
Weighted
average number of shares outstanding used to calculate diluted
earnings per share
|
|
16,590,173
|
17,153,505
|
17,900,984
|
|
17,090,967
|
18,068,256
|
ADS equivalent(d)
|
|
2,765,028
|
2,858,917
|
2,983,497
|
|
2,848,494
|
3,011,376
|
|
|
|
|
|
|
|
|
Shares in issue at period-end
|
|
16,491,420
|
16,687,850
|
17,379,366
|
|
16,491,420
|
17,379,366
|
ADS equivalent(d)
|
|
2,748,570
|
2,781,308
|
2,896,561
|
|
2,748,570
|
2,896,561
|
(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 26
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 September 2024 to ordinary
shareholders and American Depositary Share (ADS) holders on the
register on 9 August 2024. The ex-dividend date will be 8 August
2024 for ordinary shareholders and 9 August 2024 for ADS holders.
The corresponding amount in sterling is due to be announced on 3
September 2024, calculated based on the average of the market
exchange rates over three dealing days between 28 August 2024 and
30 August 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 second 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 second quarter dividend and timetable are
available at bp.com/dividends
and further details of the dividend
reinvestment programmes are available at bp.com/drip.
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
Dividends paid per ordinary share
|
|
|
|
|
|
|
|
cents
|
|
7.270
|
7.270
|
6.610
|
|
14.540
|
13.220
|
pence
|
|
5.683
|
5.692
|
5.309
|
|
11.375
|
10.860
|
Dividends paid per ADS (cents)
|
|
43.62
|
43.62
|
39.66
|
|
87.24
|
79.32
|
Note 9. Net debt
Net debt*
|
|
30 June
|
31 March
|
30 June
|
$ million
|
|
2024
|
2024
|
2023
|
Finance debt(a)
|
|
54,986
|
53,013
|
49,738
|
Fair value (asset) liability of hedges related to finance
debt(b)
|
|
2,519
|
2,512
|
2,836
|
|
|
57,505
|
55,525
|
52,574
|
Less: cash and cash equivalents
|
|
34,891
|
31,510
|
28,914
|
Net debt(c)
|
|
22,614
|
24,015
|
23,660
|
Total equity
|
|
82,199
|
84,940
|
85,603
|
Gearing*
|
|
21.6%
|
22.0%
|
21.7%
|
(a)
The
fair value of finance debt at 30 June 2024 was $50,677 million
(31 March 2024 $49,263 million, 30 June 2023 $45,580
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 $144 million at 30 June 2024
(first quarter 2024 liability of $96 million and second
quarter 2023 liability of $98 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.
Note 10. Statutory accounts
The financial information shown in this publication, which was
approved by the Board of Directors on 29 July 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 27
Additional information
Capital expenditure*
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
$ million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
Capital expenditure
|
|
|
|
|
|
|
|
Organic capital expenditure*
|
|
3,586
|
3,979
|
3,233
|
|
7,565
|
6,728
|
Inorganic capital expenditure*(a)
|
|
105
|
299
|
1,081
|
|
404
|
1,211
|
|
|
3,691
|
4,278
|
4,314
|
|
7,969
|
7,939
|
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
$ million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
Capital expenditure by segment
|
|
|
|
|
|
|
|
gas & low carbon energy
|
|
1,005
|
1,298
|
887
|
|
2,303
|
1,900
|
oil production & operations
|
|
1,534
|
1,776
|
1,478
|
|
3,310
|
2,998
|
customers & products(a)
|
|
1,045
|
1,120
|
1,858
|
|
2,165
|
2,848
|
other businesses & corporate
|
|
107
|
84
|
91
|
|
191
|
193
|
|
|
3,691
|
4,278
|
4,314
|
|
7,969
|
7,939
|
Capital expenditure by geographical area
|
|
|
|
|
|
|
|
US
|
|
1,636
|
1,776
|
2,661
|
|
3,412
|
4,358
|
Non-US
|
|
2,055
|
2,502
|
1,653
|
|
4,557
|
3,581
|
|
|
3,691
|
4,278
|
4,314
|
|
7,969
|
7,939
|
(a)
Second
quarter and first half 2023 include $1.1 billion, net of
adjustments, in respect of the TravelCenters of America
acquisition.
Top of
page 28
Adjusting items*
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
$ million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
gas & low carbon energy
|
|
|
|
|
|
|
|
Gains on sale of businesses and fixed assets
|
|
8
|
2
|
1
|
|
10
|
16
|
Net impairment and losses on sale of businesses and fixed
assets
|
|
(590)
|
(536)
|
(1,058)
|
|
(1,126)
|
(1,060)
|
Environmental and other provisions
|
|
—
|
—
|
—
|
|
—
|
—
|
Restructuring, integration and rationalization costs
|
|
—
|
—
|
1
|
|
—
|
1
|
Fair value accounting effects(a)(b)
|
|
(1,011)
|
113
|
1,222
|
|
(898)
|
5,156
|
Other
|
|
(124)
|
(201)
|
(110)
|
|
(325)
|
(166)
|
|
|
(1,717)
|
(622)
|
56
|
|
(2,339)
|
3,947
|
oil production & operations
|
|
|
|
|
|
|
|
Gains on sale of businesses and fixed assets
|
|
7
|
184
|
(31)
|
|
191
|
106
|
Net impairment and losses on sale of businesses and fixed
assets
|
|
(29)
|
(120)
|
(140)
|
|
(149)
|
(132)
|
Environmental and other provisions
|
|
195
|
(77)
|
(44)
|
|
118
|
(93)
|
Restructuring, integration and rationalization costs
|
|
—
|
—
|
(1)
|
|
—
|
(1)
|
Fair value accounting effects
|
|
—
|
—
|
—
|
|
—
|
—
|
Other
|
|
—
|
(52)
|
7
|
|
(52)
|
(91)
|
|
|
173
|
(65)
|
(209)
|
|
108
|
(211)
|
customers & products
|
|
|
|
|
|
|
|
Gains on sale of businesses and fixed assets
|
|
4
|
5
|
2
|
|
9
|
3
|
Net impairment and losses on sale of businesses and fixed
assets
|
|
(678)
|
(96)
|
(36)
|
|
(774)
|
(119)
|
Environmental and other provisions
|
|
7
|
—
|
(1)
|
|
7
|
(11)
|
Restructuring, integration and rationalization costs
|
|
—
|
1
|
1
|
|
1
|
(1)
|
Fair value accounting effects(b)
|
|
25
|
(144)
|
(109)
|
|
(119)
|
(32)
|
Other(c)
|
|
(640)
|
(67)
|
(98)
|
|
(707)
|
(160)
|
|
|
(1,282)
|
(301)
|
(241)
|
|
(1,583)
|
(320)
|
other businesses & corporate
|
|
|
|
|
|
|
|
Gains on sale of businesses and fixed assets
|
|
—
|
32
|
—
|
|
32
|
—
|
Net impairment and losses on sale of businesses and fixed
assets
|
|
(11)
|
26
|
(31)
|
|
15
|
(37)
|
Environmental and other provisions
|
|
28
|
(9)
|
(17)
|
|
19
|
(31)
|
Restructuring, integration and rationalization costs
|
|
1
|
11
|
—
|
|
12
|
(10)
|
Fair value accounting effects(b)
|
|
(29)
|
(193)
|
(48)
|
|
(222)
|
197
|
Gulf of Mexico oil spill
|
|
(8)
|
(11)
|
(18)
|
|
(19)
|
(27)
|
Other
|
|
(3)
|
(2)
|
(13)
|
|
(5)
|
(13)
|
|
|
(22)
|
(146)
|
(127)
|
|
(168)
|
79
|
Total before interest and taxation
|
|
(2,848)
|
(1,134)
|
(521)
|
|
(3,982)
|
3,495
|
Finance costs(d)
|
|
(205)
|
(92)
|
(119)
|
|
(297)
|
(223)
|
Total before taxation
|
|
(3,053)
|
(1,226)
|
(640)
|
|
(4,279)
|
3,272
|
Taxation on adjusting items(e)
|
|
585
|
109
|
160
|
|
694
|
(45)
|
Taxation – tax rate change effect of UK energy profits
levy(f)
|
|
(304)
|
—
|
232
|
|
(304)
|
232
|
Total after taxation for period
|
|
(2,772)
|
(1,117)
|
(248)
|
|
(3,889)
|
3,459
|
(a)
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.
(b)
For
further information, including the nature of fair value accounting
effects reported in each segment, see pages 3, 6 and
34.
(c)
Second
quarter and first half 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.
(d)
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.
Second quarter and first half 2023 also include the income
statement impact associated with the buyback of finance
debt.
(e)
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.
(f)
Second
quarter and first half 2024 and second quarter and first half 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.
Top of
page 29
Net debt including leases
Net debt including leases*
|
|
30 June
|
31 March
|
30 June
|
$ million
|
|
2024
|
2024
|
2023
|
Net debt*
|
|
22,614
|
24,015
|
23,660
|
Lease liabilities
|
|
10,697
|
11,057
|
10,961
|
Net
partner (receivable) payable for leases entered into on behalf of
joint operations
|
|
(112)
|
(130)
|
(136)
|
Net debt including leases
|
|
33,199
|
34,942
|
34,485
|
Total
equity
|
|
82,199
|
84,940
|
85,603
|
Gearing including leases*
|
|
28.8%
|
29.1%
|
28.7%
|
Gulf of Mexico oil spill
|
|
30 June
|
31 December
|
$ million
|
|
2024
|
2023
|
Gulf of Mexico oil spill payables and provisions
|
|
(7,785)
|
(8,735)
|
Of
which - current
|
|
(1,104)
|
(1,133)
|
|
|
|
|
Deferred tax asset
|
|
1,180
|
1,320
|
During the second quarter 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
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
$ 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)
|
|
1,556
|
(2,131)
|
(742)
|
|
(575)
|
(4,497)
|
Adjusted for inventory holding gains (losses)* (Note
4)
|
|
(136)
|
851
|
(732)
|
|
715
|
(1,332)
|
Adjusted for fair value accounting effects* relating to
subsidiaries
|
|
(1,071)
|
(274)
|
1,053
|
|
(1,345)
|
5,295
|
Other adjusting items(b)
|
|
182
|
(834)
|
558
|
|
(652)
|
(740)
|
Working capital release (build) after adjusting for net inventory
gains (losses), fair value accounting effects and other adjusting
items
|
|
531
|
(2,388)
|
137
|
|
(1,857)
|
(1,274)
|
(a)
The movement in working capital includes outflows
relating to the Gulf of Mexico oil spill on a pre-tax basis of
$1,129 million and $1,136 million in
the second quarter and first half of 2024 respectively (first
quarter 2024 $7 million, second quarter 2023
$1,204 million, first half 2023
$1,216 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 30
Adjusted earnings before interest, taxation, depreciation and
amortization (adjusted EBITDA)*
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
$ million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
Profit for the period
|
|
70
|
2,409
|
1,953
|
|
2,479
|
10,375
|
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)
|
Taxation
|
|
1,184
|
2,224
|
1,541
|
|
3,408
|
4,966
|
Profit before interest and tax
|
|
2,430
|
5,667
|
4,353
|
|
8,097
|
16,985
|
Inventory holding (gains) losses*, before tax
|
|
136
|
(851)
|
732
|
|
(715)
|
1,332
|
RC profit before interest and tax
|
|
2,566
|
4,816
|
5,085
|
|
7,382
|
18,317
|
Net (favourable) adverse impact of adjusting items*, before
interest and tax
|
|
2,848
|
1,134
|
521
|
|
3,982
|
(3,495)
|
Underlying RC profit before interest and tax
|
|
5,414
|
5,950
|
5,606
|
|
11,364
|
14,822
|
Add back:
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
4,098
|
4,150
|
3,923
|
|
8,248
|
7,723
|
Exploration expenditure written off
|
|
127
|
206
|
241
|
|
333
|
291
|
Adjusted EBITDA
|
|
9,639
|
10,306
|
9,770
|
|
19,945
|
22,836
|
Reconciliation of customers & products RC profit before
interest and tax to underlying RC profit before interest and tax*
to adjusted EBITDA* by business
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
$ million
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
RC profit before interest and tax for customers &
products
|
|
(133)
|
988
|
555
|
|
855
|
3,235
|
Less: Adjusting items* gains (charges)
|
|
(1,282)
|
(301)
|
(241)
|
|
(1,583)
|
(320)
|
Underlying RC profit before interest and tax for customers
& products
|
|
1,149
|
1,289
|
796
|
|
2,438
|
3,555
|
By business:
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
Add back: Depreciation, depletion and amortization
|
|
939
|
944
|
894
|
|
1,883
|
1,691
|
By business:
|
|
|
|
|
|
|
|
customers
– convenience & mobility
|
|
491
|
484
|
448
|
|
975
|
789
|
Castrol – included in customers
|
|
42
|
42
|
42
|
|
84
|
81
|
products
– refining & trading
|
|
448
|
460
|
446
|
|
908
|
902
|
|
|
|
|
|
|
|
|
Adjusted EBITDA for customers & products
|
|
2,088
|
2,233
|
1,690
|
|
4,321
|
5,246
|
By business:
|
|
|
|
|
|
|
|
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
|
Top of
page 31
Realizations* and marker prices
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
Average realizations(a)
|
|
|
|
|
|
|
|
Liquids* ($/bbl)
|
|
|
|
|
|
|
|
US
|
|
65.88
|
62.20
|
60.53
|
|
64.11
|
61.59
|
Europe
|
|
80.55
|
85.00
|
75.14
|
|
82.90
|
77.06
|
Rest of World
|
|
83.58
|
79.83
|
79.35
|
|
81.67
|
80.98
|
bp average
|
|
73.73
|
71.24
|
69.76
|
|
72.49
|
71.17
|
Natural gas ($/mcf)
|
|
|
|
|
|
|
|
US
|
|
1.29
|
1.69
|
1.58
|
|
1.49
|
2.01
|
Europe
|
|
9.49
|
10.27
|
12.46
|
|
9.94
|
19.80
|
Rest of World
|
|
5.47
|
5.45
|
5.53
|
|
5.46
|
6.49
|
bp average
|
|
4.47
|
4.62
|
4.91
|
|
4.55
|
6.06
|
Total hydrocarbons* ($/boe)
|
|
|
|
|
|
|
|
US
|
|
44.26
|
41.50
|
40.84
|
|
42.90
|
42.89
|
Europe
|
|
73.21
|
76.65
|
74.20
|
|
75.08
|
90.00
|
Rest of World
|
|
47.49
|
46.61
|
45.97
|
|
47.05
|
50.37
|
bp average
|
|
47.49
|
46.42
|
46.27
|
|
46.95
|
50.62
|
Average oil marker prices ($/bbl)
|
|
|
|
|
|
|
|
Brent
|
|
84.97
|
83.16
|
78.05
|
|
84.06
|
79.66
|
West Texas Intermediate
|
|
80.82
|
77.01
|
73.56
|
|
78.95
|
74.76
|
Western Canadian Select
|
|
67.20
|
59.45
|
60.07
|
|
63.56
|
58.37
|
Alaska North Slope
|
|
86.42
|
81.33
|
78.26
|
|
83.91
|
78.64
|
Mars
|
|
81.37
|
76.90
|
73.17
|
|
79.17
|
73.70
|
Urals (NWE – cif)
|
|
72.79
|
68.34
|
54.56
|
|
70.55
|
50.24
|
Average natural gas marker prices
|
|
|
|
|
|
|
|
Henry Hub gas price(b) ($/mmBtu)
|
|
1.89
|
2.25
|
2.09
|
|
2.07
|
2.77
|
UK Gas – National Balancing Point (p/therm)
|
|
76.57
|
68.72
|
83.18
|
|
72.62
|
107.76
|
(a)
Based on sales of consolidated subsidiaries
only – this excludes equity-accounted
entities.
(b)
Henry
Hub First of Month Index.
Exchange rates
|
|
Second
|
First
|
Second
|
|
First
|
First
|
|
|
quarter
|
quarter
|
quarter
|
|
half
|
half
|
|
|
2024
|
2024
|
2023
|
|
2024
|
2023
|
$/£ average rate for the period
|
|
1.26
|
1.27
|
1.25
|
|
1.26
|
1.23
|
$/£ period-end rate
|
|
1.27
|
1.26
|
1.26
|
|
1.27
|
1.26
|
|
|
|
|
|
|
|
|
$/€ average rate for the period
|
|
1.08
|
1.09
|
1.09
|
|
1.08
|
1.08
|
$/€ period-end rate
|
|
1.07
|
1.08
|
1.09
|
|
1.07
|
1.09
|
|
|
|
|
|
|
|
|
$/AUD average rate for the period
|
|
0.66
|
0.66
|
0.67
|
|
0.66
|
0.68
|
$/AUD period-end rate
|
|
0.67
|
0.65
|
0.66
|
|
0.67
|
0.66
|
|
|
|
|
|
|
|
|
Top of
page 32
Principal risks and uncertainties
The principal risks and uncertainties affecting bp are described in
the Risk factors section of bp Annual Report and Form 20-F
2023 (pages 77-79) and are
summarized below. There are no material changes in those principal
risks and uncertainties for the remaining six months of the
financial year.
The risks and uncertainties summarized below, separately or in
combination, could have a material adverse effect on the
implementation of our strategy, our business, financial
performance, results of operations, cash flows, liquidity,
prospects, shareholder value and returns and
reputation.
Strategic and commercial risks
●
Prices and markets
– our financial performance is
impacted by fluctuating prices of oil, gas and refined products,
technological change, exchange rate fluctuations, and the general
macroeconomic outlook.
●
Accessing and progressing
hydrocarbon resources and low carbon opportunities
– inability to access and
progress hydrocarbon resources and low carbon opportunities could
adversely affect delivery of our strategy.
●
Major project* delivery
– failure to invest in the best
opportunities or deliver major projects successfully could
adversely affect our financial performance.
●
Geopolitical
– exposure to a range of
political developments and consequent changes to the operating and
regulatory environment could cause business
disruption.
●
Liquidity, financial capacity
and financial, including credit, exposure – failure to work within our financial
framework could impact our ability to operate and result in
financial loss.
●
Joint arrangements and
contractors – varying
levels of control over the standards, operations and compliance of
our partners, including non-operated joint ventures (NOJVs),
contractors and sub-contractors could result in legal liability and
reputational damage.
●
Digital infrastructure, cyber
security and data protection – breach or failure of our or third
parties’ digital infrastructure or cyber security, including
loss or misuse of sensitive information could damage our
operations, increase costs and damage our
reputation.
●
Climate change and the
transition to a lower carbon economy – developments in policy, law, regulation,
technology and markets, including societal and investor sentiment,
related to the issue of climate change and the transition to a
lower carbon economy could increase costs, reduce revenues,
constrain our operations and affect our business plans and
financial performance.
●
Competition – inability to remain efficient, maintain a
high-quality portfolio of assets and innovate could negatively
impact delivery of our strategy in a highly competitive
market.
●
Talent and capability
– inability to attract, develop
and retain people with necessary skills and capabilities could
negatively impact delivery of our strategy.
●
Crisis management and business
continuity – failure to
address an incident effectively could potentially disrupt our
business.
●
Insurance – our insurance strategy could expose the
group to material uninsured losses.
Safety and operational risks
●
Process safety, personal
safety, and environmental risks – exposure to a wide range of health, safety
and environmental risks could cause harm to people, the environment
and our assets and result in regulatory action, legal liability,
business interruption, increased costs, damage to our reputation
and potentially denial of our licence to
operate.
●
Drilling and production
– challenging operational
environments and other uncertainties could impact drilling and
production activities.
●
Security – hostile acts against our employees and
activities could cause harm to people and disrupt our
operations.
●
Product quality
– supplying customers with
off-specification products could damage our reputation, lead to
regulatory action and legal liability, and impact our financial
performance.
Compliance and control risks
●
Ethical misconduct and
non-compliance – ethical
misconduct or breaches of applicable laws by our businesses or our
employees could be damaging to our reputation, and could result in
litigation, regulatory action and penalties.
●
Regulation – changes in the law and regulation could
increase costs, constrain our operations and affect our strategy,
business plans and financial performance.
●
Trading and treasury trading
activities – ineffective
oversight of trading and treasury trading activities could lead to
business disruption, financial loss, regulatory intervention or
damage to our reputation and affect our permissions to
trade.
●
Reporting – failure to accurately report our data
could lead to regulatory action, legal liability and reputational
damage.
Top of
page 33
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 30 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 30 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 other 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
28.
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.
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.
Top of
page 34
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.
Top of
page 35
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
26.
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 29.
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
27.
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.
Top of
page 36
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 27.
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.
Top of
page 37
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 36) after excluding net adjusting items and
related taxation. See page 28 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.
Top of
page 38
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, bp pulse, Castrol, PETRO, TA, Thorntons and Gigahub
Top of
page 39
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, including
sensitivity of fuels margin to costs of supply; expectations
regarding underlying effective tax rate; expectations regarding
turnaround and maintenance activity; expectations regarding
financial performance, results of operations and cash flows;
expectations regarding future project start-ups; expectations
regarding the timing of bp’s updates of medium-term plans;
expectations regarding shareholders returns; expectations regarding
bp’s convenience businesses, including TravelCenters of
America, Castrol and bp pulse; 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 and strengthening the balance sheet; plans
and expectations regarding LNG sales and purchases; plans and
expectations regarding bp’s investments, including the
formation of a joint venture with ADNOC in Egypt, the award of an
interest in ADNOC’s planned Ruwais LNG project and the sale
of bp’s Türkiye ground fuels business; plans and
expectations regarding investments, collaborations and partnerships
in electric vehicle (EV) charging infrastructure; plans and
expectations for the development of the Kaskida project following
bp’s final investment decision; 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, offshore wind and UK
CCS projects; plans and expectations regarding; plans and
expectations regarding bioenergy, including progress in biofuels
and bp’s ownership of bp Bunge Bioenergia; plans and
expectations regarding bp’s guidance for 2024 and the third
quarter of 2024, including expected growth, margins, the other
businesses & corporate underlying annual charge, timing and
amount of divestment and other proceeds, depreciation, depletion
and amortization; plans and expectations regarding capital
expenditure for 2024 and 2025; plans and expectations regarding
bp-operated projects and ventures and its projects, joint ventures,
partnerships and agreements with commercial entities and other
third party partners.
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 it 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 other factors discussed elsewhere in this report,
including under “Principal risks and uncertainties,” as
well as factors discussed under “Risk factors” in
bp’s Annual Report and Form 20-F for fiscal year 2023 as
filed with the US Securities and Exchange Commission.
This announcement contains inside information. The person
responsible for arranging the release of this announcement on
behalf of BP p.l.c. is Ben Mathews, Company Secretary.
Top of
page 40
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
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
|
BP
p.l.c.
|
|
(Registrant)
|
|
|
Dated: 30
July 2024
|
|
|
/s/ Ben
J. S. Mathews
|
|
------------------------
|
|
Ben J.
S. Mathews
|
|
Company
Secretary
|
BP (NYSE:BP)
Gráfico Histórico do Ativo
De Nov 2024 até Dez 2024
BP (NYSE:BP)
Gráfico Histórico do Ativo
De Dez 2023 até Dez 2024