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