REG - BP PLC - 4Q24 SEA Part 1 of 1
11/02/2025 07:15
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RNS Number : 5929W BP PLC 11 February 2025
Top of page 1
FOR IMMEDIATE RELEASE
London 11 February 2025
BP p.l.c. Group results
Fourth quarter and full year 2024
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2024: Laying the foundation for growth
Financial summary Fourth Third Fourth
quarter quarter quarter Year Year
$ million 2024 2024 2023 2024 2023
Profit (loss) for the period attributable to bp shareholders (1,959) 206 371 381 15,239
Inventory holding (gains) losses*, net of tax 7 906 1,155 369 944
Replacement cost (RC) profit (loss)* (1,952) 1,112 1,526 750 16,183
Net (favourable) adverse impact of adjusting items*, net of tax 3,121 1,155 1,465 8,165 (2,347)
Underlying RC profit* 1,169 2,267 2,991 8,915 13,836
Operating cash flow* 7,427 6,761 9,377 27,297 32,039
Capital expenditure* (3,726) (4,542) (4,711) (16,237) (16,253)
Divestment and other proceeds((a)) 2,761 290 300 4,224 1,843
Net issue (repurchase) of shares((b)) (1,625) (2,001) (1,350) (7,127) (7,918)
Net debt*((c)) 22,997 24,268 20,912 22,997 20,912
Return on average capital employed (ROACE)* (%) 14.2% 18.1%
Adjusted EBITDA* 8,413 9,654 10,568 38,012 43,710
Adjusted EBIDA* 31,161 34,345
Announced dividend per ordinary share (cents per share) 8.000 8.000 7.270 31.270 28.420
Underlying RC profit per ordinary share* (cents) 7.36 13.89 17.77 54.40 79.69
Underlying RC profit per ADS* (dollars) 0.44 0.83 1.07 3.26 4.78
Highlights
• Financial and operational performance: 2024 Operating cash flow
$27.3bn; 2024 Adjusted EBITDA $38.0bn; 2024 upstream production 2,358mmboe/d,
2.0% higher than 2023.
• Driving focus and efficiency: High-grading portfolio, agreed to
form offshore wind JV with JERA Co.,Inc, divesting non-core assets. We
delivered $0.8 billion structural cost reduction* in 2024.
• Growing our portfolio: FID taken on 10 major projects*,
including Tangguh UCC project in Papua Barat, Indonesia; established a new gas
joint venture, Arcius Energy with XRG; signed an agreement with ONGC as the
technical services provider for the largest offshore oil field in India, which
accounts for around 25% of the country's oil production; Start up of new Azeri
Central East (ACE) platform in Caspian Sea in 2Q24.
• Shareholder distributions: Dividend per ordinary share of 8 cents;
$1.75 billion share buyback announced for 4Q24.
In 2024 we laid the foundations for growth. We have been reshaping our
portfolio - sanctioning new major projects, and focusing our low-carbon
investment - and we have made strong progress in reducing costs. Building on
the actions taken in the last 12 months, we now plan to fundamentally reset
our strategy and drive further improvements in performance, all in service of
growing cash flow and returns. It will be a new direction for bp and we look
forward to sharing it at our Capital Markets Update on 26 February.
Murray Auchincloss
Chief executive officer
(a) Divestment proceeds are disposal proceeds as per the condensed
group cash flow statement. See page 3 for more information on other proceeds.
(b) Third quarter and full year 2024 include $0.3 billion to offset
the expected dilution from the vesting of awards under employee share schemes
(full year 2023 $0.7 billion).
(c) See Note 10 for more information.
RC profit (loss), underlying RC profit, net debt, ROACE, adjusted EBITDA,
adjusted EBIDA, 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 structural cost reduction, see page 31 for more information.
* For items marked with an asterisk throughout this document, definitions are
provided in the Glossary on page 34.
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In 2024, bp delivered operating cash flow of $27.3 billion. During the year,
we introduced our target to deliver at least $2 billion of savings((a)) by the
end of 2026 relative to 2023 and are making strong progress, achieving $0.8
billion of structural cost reduction*. We raised the dividend per ordinary
share by 10% and delivered $7 billion of share buybacks. Our focus on capital
discipline and strengthening the balance sheet continues into 2025.
Kate Thomson Chief financial officer
Highlights
4Q24 underlying replacement cost (RC) profit* $1.2 billion
• Underlying RC profit for the quarter was $1.2 billion, compared with $2.3
billion for the previous quarter. Compared with the third quarter 2024, the
underlying result reflects weaker realized refining margins, higher impact
from turnaround activity, seasonally lower customer volumes and fuels margins
and higher other businesses & corporate underlying charge. The underlying
effective tax rate (ETR)* in the quarter was 49%.
• Reported loss for the quarter was $2.0 billion, compared with a profit of
$0.2 billion for the third quarter 2024. The reported result for the fourth
quarter is adjusted for inventory holding losses* of $21 million (pre-tax) and
a net adverse impact of adjusting items* of $3.4 billion (pre-tax) to derive
the underlying RC profit. Adjusting items pre-tax include net impairments of
$1.5 billion (see Note 4) and adverse fair value accounting effects* of
$1.0 billion. See page 27 for more information on adjusting items.
Segment results
• Gas & low carbon energy: The RC profit before interest and tax for the
fourth quarter 2024 was $1.8 billion, compared with $1.0 billion for the
previous quarter. After adjusting RC profit before interest and tax for a net
adverse impact of adjusting items of $0.1 billion, the underlying RC profit
before interest and tax* for the fourth quarter was $2.0 billion, compared
with $1.8 billion in the third quarter 2024. The fourth quarter underlying
result before interest and tax is largely driven by higher realizations. The
gas marketing and trading result was average.
• Oil production & operations: The RC profit before interest and tax for the
fourth quarter 2024 was $2.6 billion, compared with $1.9 billion for the
previous quarter. After adjusting RC profit before interest and tax for a net
adverse impact of adjusting items of $0.4 billion, the underlying RC profit
before interest and tax for the fourth quarter was $2.9 billion, compared
with $2.8 billion in the third quarter 2024. The fourth quarter underlying
result before interest and tax reflects lower exploration write-offs, partly
offset by lower realizations and volumes.
• Customers & products: The RC loss before interest and tax for the fourth
quarter 2024 was $2.4 billion, compared with a profit of $23 million for the
previous quarter. After adjusting RC loss before interest and tax for a net
adverse impact of adjusting items of $2.1 billion, the underlying RC loss or
profit before interest and tax (underlying result) for the fourth quarter was
a loss of $0.3 billion, compared with a profit of $0.4 billion in the third
quarter 2024. The customers fourth quarter underlying result was lower by $0.4
billion, reflecting lower fuels margins, seasonally lower volumes and adverse
foreign exchange impacts. The products fourth quarter underlying result was
lower by $0.3 billion, mainly reflecting weaker realized refining margins and
a higher impact from turnaround activity. The oil trading contribution was
weak.
Operating cash flow* $7.4 billion and net debt* $23.0 billion
• Operating cash flow of $7.4 billion, which includes a working capital* release
of $1.3 billion (after adjusting for inventory holding losses, fair value
accounting effects and other adjusting items), was around $0.7 billion higher
than the previous quarter, reflecting lower cash taxes paid and timing of
provision settlements, partly offset by lower underlying earnings. Net debt
reduced to $23.0 billion compared to the third quarter, primarily driven by
the impact of proceeds from divestments of around $2.8 billion, the issuance
of perpetual hybrid bonds of $2.6 billion and acquired net debt of around $3.0
billion from the completion of the bp Bunge Bioenergia and Lightsource bp
transactions.
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 fourth
quarter, bp has announced a dividend per ordinary share of 8 cents.
• bp is committed to maintaining a strong balance sheet and strong investment
grade credit rating. Through the cycle, we are targeting to further improve
our credit metrics within an 'A' grade credit range.
• bp continues to invest with discipline and a returns focused approach in our
transition growth* engines and in our oil, gas and refining businesses.
• The $1.75 billion share buyback programme announced with the third quarter
results was completed on 7 February 2025. Related to the fourth quarter
results, bp intends to execute a $1.75 billion share buyback prior to
reporting the first quarter results. As part of our capital markets update
scheduled for 26 February we intend to review elements of our financial
guidance, including our expectations for 2025 share buybacks and capital
expenditure*.
• In setting the dividend per ordinary share and buyback each quarter, the board
will continue to take into account factors including the cumulative level of
and outlook for surplus cash flow*, the cash balance point and maintaining a
strong investment grade credit rating.
(a) Target first introduced in bp's first quarter 2024 group results
announcement referred to cash costs savings. Cash costs has the same meaning
as underlying operating expenditure.
The commentary above contains forward-looking statements and should be read in
conjunction with the cautionary statement on page 41.
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Financial results
In addition to the highlights on page 2:
• Profit or loss attributable to bp shareholders in the fourth quarter and
full year was a loss of $2.0 billion and a profit of $0.4 billion
respectively, compared with a profit of $0.4 billion and $15.2 billion in
the same periods of 2023.
- After adjusting profit or loss attributable to bp shareholders for inventory
holding losses or gains* and net impact of adjusting items*, underlying
replacement cost (RC) profit* for the fourth quarter and full year was
$1.2 billion and $8.9 billion respectively, compared with $3.0 billion and
$13.8 billion for the same periods of 2023. The underlying RC profit for the
fourth quarter mainly reflects lower refining margins and lower realizations,
partly offset by lower taxation. For the full year, the reduction mainly
reflects lower refining margins, lower realizations, a lower gas marketing and
trading result and a lower oil trading contribution, partly offset by lower
taxation.
- Adjusting items in the fourth quarter and full year had a net adverse
pre-tax impact of $3.4 billion and $9.3 billion respectively, compared with
a net adverse pre-tax impact of $2.6 billion and a net favourable pre-tax
impact of $1.1 billion in the same periods of 2023.
- Adjusting items for the fourth quarter and full year include an adverse
pre-tax impact of fair value accounting effects*, relative to management's
internal measure of performance, of $1.0 billion and $1.9 billion
respectively, compared with a favourable pre-tax impact of $2.6 billion and
$9.4 billion in the same periods of 2023. This is primarily due to an
increase in the forward price of LNG over the 2024 periods, compared to a
decline in the comparative periods of 2023 and the adverse impact of the fair
value accounting effects relating to the hybrid bonds in 2024 compared to the
favourable impact in 2023.
- Adjusting items for the fourth quarter and full year of 2024 include an
adverse pre-tax impact of asset impairments of $1.5 billion and $5.1 billion
respectively, compared with an adverse pre-tax impact of $3.9 billion and $5.7
billion in the same periods of 2023. Fourth quarter and full year 2024
includes $0.4 billion of impairment charges recognized through
equity-accounted earnings primarily relating to our interest in Pan American
Energy Group. Fourth quarter and full year 2023 included $0.6 billion and $1.1
billion impairment charges respectively recognized through equity-accounted
earnings relating to US offshore wind projects.
- In addition, the fourth quarter and full year include a $1.0-billion gain
arising on the acquisition of Lightsource bp as a result of remeasurement of
our interest and assets and a loss on disposal of $1.1 billion relating to the
sale of our Türkiye ground fuels business including recycling of cumulative
foreign exchange losses from reserves of $0.9 billion.
• The effective tax rate (ETR) on RC profit or loss* for the fourth quarter
and full year was -235% and 78% respectively, compared with 39% and 33% for
the same periods in 2023. Excluding adjusting items, the underlying ETR* for
the fourth quarter and full year was 49% and 41%, compared with 42% and 39%
for the same periods a year ago. The higher underlying ETR for the fourth
quarter and for the full year reflects changes in the geographical mix of
profits. ETR on RC profit or loss and underlying ETR are non-IFRS measures.
• Operating cash flow* for the fourth quarter and full year was
$7.4 billion and $27.3 billion respectively, compared with $9.4 billion and
$32.0 billion for the same periods in 2023. The reduction in operating cash
flow across these periods reflects both the underlying operating result and
the movements in working capital*(after adjusting for inventory holding
losses, fair value accounting effects and other adjusting items).
• Capital expenditure* in the fourth quarter and full year was $3.7 billion
and $16.2 billion respectively, compared with $4.7 billion and
$16.3 billion in the same periods of 2023. Full year 2024 include a
$0.7-billion initial payment in respect of German offshore wind. Full year
2023 includes $1.1 billion in respect of the TravelCenters of America
acquisition.
• Total divestment and other proceeds for the fourth quarter and full year
were $2.8 billion and $4.2 billion respectively, compared with $0.3 billion
and $1.8 billion for the same periods in 2023. Other proceeds for the fourth
quarter and full year 2024 were $0.8 billion and $1.3 billion respectively,
relating to $0.8 billion of proceeds from the sale of our 20% share in Trans
Adriatic Pipeline AG (TAP) in the fourth quarter and $0.5 billion of proceeds
from the sale of a 49% interest in a controlled affiliate holding certain
midstream assets offshore US in the second quarter. Other proceeds for the
fourth quarter and full year of 2023 were $0.5 billion of proceeds from the
sale of a 49% interest in a similar controlled affiliate holding certain
midstream assets onshore US.
• At the end of the fourth quarter, net debt* was $23.0 billion, compared
with $24.3 billion at the end of the third quarter 2024 and $20.9 billion at
the end of the fourth quarter 2023 driven primarily by the impact of proceeds
from divestments of $2.8 billion, the issuance of around $2.6 billion
perpetual hybrid bonds in anticipation of refinancing perpetual hybrid bonds
callable from June 2025 and/or March 2026, and acquired net debt of around
$3.0 billion from the completion of the bp Bunge Bioenergia and Lightsource bp
transactions.
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Analysis of RC profit (loss) before interest and tax and reconciliation to
profit (loss) for the period
Fourth Third Fourth
quarter quarter quarter Year Year
$ million 2024 2024 2023 2024 2023
RC profit (loss) before interest and tax
gas & low carbon energy 1,841 1,007 2,169 3,569 14,080
oil production & operations 2,571 1,891 1,879 10,789 11,191
customers & products (2,438) 23 (554) (1,560) 4,230
other businesses & corporate (1,161) 653 (16) (988) (903)
Consolidation adjustment - UPII* (49) 65 95 (25) (14)
RC profit before interest and tax 764 3,639 3,573 11,785 28,584
Finance costs and net finance expense relating to pensions and other (1,246) (1,059) (977) (4,515) (3,599)
post-employment benefits
Taxation on a RC basis (1,131) (1,304) (1,005) (5,672) (8,161)
Non-controlling interests (339) (164) (65) (848) (641)
RC profit (loss) attributable to bp shareholders* (1,952) 1,112 1,526 750 16,183
Inventory holding gains (losses)* (21) (1,182) (1,497) (488) (1,236)
Taxation (charge) credit on inventory holding gains and losses 14 276 342 119 292
Profit (loss) for the period attributable to bp shareholders (1,959) 206 371 381 15,239
Analysis of underlying RC profit (loss) before interest and tax
Fourth Third Fourth
quarter quarter quarter Year Year
$ million 2024 2024 2023 2024 2023
Underlying RC profit (loss) before interest and tax
gas & low carbon energy 1,987 1,756 1,777 6,803 8,722
oil production & operations 2,924 2,794 3,549 11,937 12,781
customers & products (302) 381 803 2,517 6,413
other businesses & corporate (527) 231 (97) (608) (866)
Consolidation adjustment - UPII (49) 65 95 (25) (14)
Underlying RC profit before interest and tax 4,033 5,227 6,127 20,624 27,036
Finance costs on an underlying RC basis and net finance expense relating to (1,096) (1,001) (891) (4,010) (3,194)
pensions and other post-employment benefits
Taxation on an underlying RC basis (1,429) (1,795) (2,180) (6,851) (9,365)
Non-controlling interests (339) (164) (65) (848) (641)
Underlying RC profit attributable to bp shareholders* 1,169 2,267 2,991 8,915 13,836
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 Year 2024 vs Year 2023
Tier 1 and tier 2 process safety events* 38 -1
Reported recordable injury frequency* 0.297 +8.5%
upstream* production((a)) (mboe/d) 2,358 +2.0%
upstream unit production costs*((b)) ($/boe) 6.17 +6.8%
bp-operated upstream plant reliability* 95.2% +0.2
bp-operated refining availability*((a)) 94.3% -1.8
(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.
Reserves replacement ratio*
The organic reserves replacement ratio on a combined basis of subsidiaries and
equity-accounted entities was 50% for the year (2023 47%), resulting largely
from additions in the US and Middle East.
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Outlook & Guidance
1Q 2025 guidance
• Looking ahead, bp expects first quarter 2025 reported upstream* production
to be lower compared with the fourth-quarter 2024 primarily due to the already
announced divestments in Egypt and Trinidad, which completed towards the end
of the fourth quarter and base decline in both regions, totaling around 90
thousand barrels of oil equivalent per day.
• In its customers business, bp expects seasonally lower volumes compared to
the fourth quarter. In addition, bp expects fuels margins to remain sensitive
to movements in cost of supply and earnings delivery to remain sensitive to
the relative strength of the US dollar.
• In products, bp expects realized refining margins to remain low in the
first quarter. bp also expects a lower level of refinery turnaround activity
compared to the fourth quarter 2024.
2025 guidance
In addition to the guidance on page 2:
• bp expects reported upstream* production to be lower and underlying
upstream production* to be slightly lower compared with 2024. Within this, bp
expects underlying production from oil production & operations to be
broadly flat and production from gas & low carbon energy to be lower.
• In its customers business, bp expects growth in its customers businesses
including a full year contribution from bp bioenergy and a higher contribution
from TravelCenters of America in part supported by a partial recovery from the
US freight recession. Earnings growth is expected to be supported by
structural cost reduction. bp continues to expect fuels margins to remain
sensitive to the cost of supply and earnings delivery to remain sensitive to
the relative strength of the US dollar.
• In products, bp expects broadly flat refining margins relative to 2024 and
stronger underlying performance underpinned by the absence of the plant-wide
power outage at Whiting refinery, and improvement plans across the portfolio.
bp expects similar levels of refinery turnaround activity, with phasing of
turnaround activity in 2025 heavily weighted towards the first half, with the
highest impact in the second quarter.
• bp expects other businesses & corporate underlying annual charge to be
around $1.0 billion for 2025. The charge may vary from quarter to quarter.
• bp expects the depreciation, depletion and amortization to be broadly flat
compared with 2024.
• bp expects the underlying ETR* for 2025 to be around 40% but it is
sensitive to a range of factors, including the volatility of the price
environment and its impact on the geographical mix of the group's profits and
losses.
• bp expects divestment and other proceeds to be around $3 billion in 2025
weighted towards the second half. Having realized $22.0 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 expects Gulf of America settlement payments for the year to be around
$1.2 billion pre-tax including $1.1 billion pre-tax to be paid during the
second quarter.
The commentary above contains forward-looking statements and should be read in
conjunction with the cautionary statement on page 41.
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gas & low carbon energy*
Financial results
• The replacement cost (RC) profit before interest and tax for the
fourth quarter and full year was $1,841 million and $3,569 million
respectively, compared with $2,169 million and $14,080 million for the same
periods in 2023. The fourth quarter and full year are adjusted by an adverse
impact of net adjusting items* of $146 million and $3,234 million
respectively, compared with a favourable impact of net adjusting items of $392
million and $5,358 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 $377 million
and $1,550 million for the fourth quarter and full year in 2024 and a
favourable impact of $1,887 million and $8,859 million for the same periods in
2023. Under IFRS, reported earnings include the mark-to-market value of the
hedges used to risk-manage LNG contracts, but not of the LNG contracts
themselves. The underlying result includes the mark-to-market value of the
hedges but also recognizes changes in value of the LNG contracts being risk
managed. See page 27 for more information on adjusting items.
• After adjusting RC profit before interest and tax for adjusting
items, the underlying RC profit before interest and tax* for the fourth
quarter and full year was $1,987 million and $6,803 million respectively,
compared with $1,777 million and $8,722 million for the same periods in 2023.
• The underlying RC profit before interest and tax for the fourth
quarter compared with the same period in 2023, reflects lower exploration
write-offs, higher realizations and a lower depreciation, depletion and
amortization charge. The gas marketing and trading result for the quarter was
average compared with a strong result in the fourth quarter of 2023.
• The underlying RC profit before interest and tax for the full
year, compared with the same period in 2023, reflects a lower gas marketing
and trading result, lower realizations, lower production and the foreign
exchange loss in the first quarter, partly offset by a lower depreciation,
depletion and amortization charge and lower exploration write-offs.
Operational update
• Reported production for the quarter was 850mboe/d, 5.4% lower
than the same period in 2023. Underlying production* was 2.7% lower, mainly
due to base decline in Egypt, partially offset by improved base performance in
other regions and major projects*.
• Reported production for the full year was 888mboe/d, 4.4% lower
than the same period in 2023. Underlying production was 2.8% lower, mainly due
to base decline in Egypt partially offset by major projects*.
• Renewables pipeline* at the end of the quarter was 60.6GW (bp
net), including 38.7GW of Lightsource bp's (LSbp's) pipeline. The renewables
pipeline showed a net increase of 2.3GW during the full year as a result of
the LSbp acquisition (20.5GW), offset by reductions as a result of
high-grading and focus of proposed hydrogen projects and the US solar
business.
Strategic progress
gas
• On 21 November bp announced it and its partners have made
the final investment decision on the $7 billion Tangguh Ubadari, CCUS,
Compression project (UCC), which has the potential to unlock around 3 trillion
cubic feet of additional gas resources in Indonesia. Tangguh CCUS aims to be
the first carbon capture, utilization and storage (CCUS) project developed at
scale in Indonesia
• On 16 December bp and XRG (ADNOC's international energy
investment company) announced they had completed formation of a new joint
venture Arcius Energy (51% bp, 49% XRG). The JV will initially operate in
Egypt, and includes interests assigned by bp across two development
concessions, as well as exploration agreements.
• On 16 December bp completed the sale of four mature offshore
gas fields and associated production facilities in Trinidad & Tobago
(Immortelle, Flamboyant, Amherstia and Cashima) to Perenco T&T. And on 19
November bp Trinidad & Tobago was awarded the NCMA 2 block offshore
Trinidad as part of the Shallow Water 2023/24 bid round. NCMA 2, located
approximately 30 miles off Trinidad's north coast, opens a new area of
exploration for bp in Trinidad & Tobago.
• On 2 January 2025 bp announced it has begun flowing gas from
wells at the Greater Tortue Ahmeyim (GTA) Phase1 liquefied natural gas (LNG)
project offshore Mauritania & Senegal to its floating production storage
and offloading (FPSO) vessel for the next stage of commissioning. The project
is expected to produce 2.3 million tonnes per annum of LNG.
• On 8 January 2025 bp announced that it has been selected by
India's Oil and Natural Gas Corporation (ONGC) as the technical services
provider for the largest offshore oil field in India, which accounts for
around 25% of the country's oil production.
low carbon energy
• On 9 December bp and JERA Co., Inc. agreed to combine their
offshore wind businesses to form an equally-owned joint venture called JERA
Nex bp that aims to become one of the largest global offshore wind developers
and operators (total 13GW potential net generating capacity). Completion is
expected by end of the third quarter of 2025, subject to regulatory and other
approvals.
• On 10 December bp, together with its partners, confirmed
that it has reached financial close for two major projects in Teesside, UK:
the Northern Endurance Partnership (NEP) carbon capture and storage project
and the Net Zero Teesside Power (NZT Power) project.
Top of page 7
gas & low carbon energy (continued)
• On 18 December bp announced the final investment decision
for its 100MW Lingen Green Hydrogen project. It will be bp's largest
industrial green hydrogen* plant and the first that bp will fully own and
operate. The plant, to be built as part of the Important Projects of Common
European Interest-funded project, could produce up to 11,000 tonnes of green
hydrogen annually.
• On 31 December bp announced that it will develop an offshore
wind farm off the coast of Yamagata prefecture in Japan. The Japanese
government has selected a consortium involving bp, Tokyo Gas, Marubeni
Corporation, Kansai Electric Power and Marutaka Corporation to build a
450-megawatt (MW) offshore wind farm.
Fourth Third Fourth
quarter quarter quarter Year Year
$ million 2024 2024 2023 2024 2023
Profit (loss) before interest and tax 1,841 1,007 2,169 3,569 14,081
Inventory holding (gains) losses* - - - - (1)
RC profit (loss) before interest and tax 1,841 1,007 2,169 3,569 14,080
Net (favourable) adverse impact of adjusting items 146 749 (392) 3,234 (5,358)
Underlying RC profit before interest and tax 1,987 1,756 1,777 6,803 8,722
Taxation on an underlying RC basis (705) (545) (746) (2,137) (2,730)
Underlying RC profit before interest 1,282 1,211 1,031 4,666 5,992
Fourth Third Fourth
quarter quarter quarter Year Year
$ million 2024 2024 2023 2024 2023
Depreciation, depletion and amortization
Total depreciation, depletion and amortization 1,153 1,180 1,290 4,835 5,680
Exploration write-offs
Exploration write-offs (10) 1 349 222 362
Adjusted EBITDA*
Total adjusted EBITDA 3,130 2,937 3,416 11,860 14,764
Capital expenditure*
gas 919 1,188 848 3,615 3,025
low carbon energy((a)) (107) 908 478 1,596 1,256
Total capital expenditure 812 2,096 1,326 5,211 4,281
(a) Fourth quarter and full year 2024 include cash acquired net of
acquisition payments on completion of the Lightsource bp acquisition.
Fourth Third Fourth
quarter quarter quarter Year Year
2024 2024 2023 2024 2023
Production (net of royalties)((b))
Liquids* (mb/d) 91 92 99 96 105
Natural gas (mmcf/d) 4,402 4,627 4,637 4,596 4,778
Total hydrocarbons* (mboe/d) 850 890 899 888 929
Average realizations*((c))
Liquids ($/bbl) 68.93 74.80 78.87 75.37 77.03
Natural gas ($/mcf) 6.96 5.80 6.18 5.90 6.13
Total hydrocarbons ($/boe) 43.21 37.91 40.17 38.57 40.21
(b) Includes bp's share of production of equity-accounted entities in
the gas & low carbon energy segment.
(c) Realizations are based on sales by consolidated subsidiaries
only - this excludes equity-accounted entities.
Top of page 8
gas & low carbon energy (continued)
31 December 30 September 31 December
low carbon energy((d)) 2024 2024 2023
Renewables (bp net, GW)
Installed renewables capacity* 4.0 2.8 2.7
Developed renewables to FID* 8.2 6.6 6.2
Renewables pipeline 60.6 46.8 58.3
of which by geographical area:
Renewables pipeline - Americas 21.2 17.8 18.8
Renewables pipeline - Asia Pacific 15.1 12.9 21.3
Renewables pipeline - Europe 23.6 15.4 14.6
Renewables pipeline - Other 0.7 0.7 3.5
of which by technology:
Renewables pipeline - offshore wind 9.7 9.6 9.3
Renewables pipeline - onshore wind 6.6 6.7 12.7
Renewables pipeline - solar 44.3 30.5 36.3
Total Developed renewables to FID and Renewables pipeline 68.8 53.4 64.5
(d) 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
fourth quarter and full year was $2,571 million and $10,789 million
respectively, compared with $1,879 million and $11,191 million for the same
periods in 2023. The fourth quarter and full year are adjusted by an adverse
impact of net adjusting items* of $353 million and $1,148 million
respectively, compared with an adverse impact of net adjusting items of $1,670
million and $1,590 million for the same periods in 2023. See page 27 for more
information on adjusting items.
• After adjusting RC profit before interest and tax for adjusting
items, the underlying RC profit before interest and tax* for the fourth
quarter and full year was $2,924 million and $11,937 million respectively,
compared with $3,549 million and $12,781 million for the same periods in 2023.
• The underlying RC profit before interest and tax for the fourth
quarter and full year, compared with the same periods in 2023, primarily
reflect lower realizations, increased depreciation charges and higher
exploration write-offs partly offset by increased volume.
Operational update
• Reported production for the quarter was 1,449mboe/d, 1.9% higher
than the fourth quarter of 2023. Underlying production* for the quarter was
1.9% higher compared with the fourth quarter of 2023 reflecting bpx energy
performance and major projects* partly offset by base performance.
• Reported production for the full year was 1,470mboe/d, 6.3%
higher than the full year of 2023. Underlying production for the full year was
6.2% higher compared with the full year of 2023 reflecting bpx energy
performance and major projects partly offset by base performance.
Strategic Progress
• Azule Energy Finance Plc, a financing vehicle of Azule Energy
Holdings Limited, has issued unsecured notes in an aggregate principal amount
of $1,200 million (Azule Energy - a 50:50 joint venture between bp and Eni).
The notes have a term of 5 years and a coupon of 8.125% per annum.
• Azule Energy successfully completed the transaction to farm into
Block 2914A (PEL85), offshore Namibia, holding a 42.5% interest. The
contractor group also announced that it had spudded the first exploration
well, Sagittarius 1-X.
• In Iraq bp and the government of Iraq have reached agreement on
the majority of commercial terms for the integrated oil and gas redevelopment
of several Kirkuk fields.
• The Norwegian authorities awarded Aker BP ownership interest in
19 exploration licenses on the Norwegian continental shelf in the APA 2024
licensing round. For 16 of the licences Aker BP is also granted operatorship
(bp holds 15.9% interest in Aker BP).
Fourth Third Fourth
quarter quarter quarter Year Year
$ million 2024 2024 2023 2024 2023
Profit before interest and tax 2,564 1,889 1,879 10,780 11,191
Inventory holding (gains) losses* 7 2 - 9 -
RC profit before interest and tax 2,571 1,891 1,879 10,789 11,191
Net (favourable) adverse impact of adjusting items 353 903 1,670 1,148 1,590
Underlying RC profit before interest and tax 2,924 2,794 3,549 11,937 12,781
Taxation on an underlying RC basis (1,226) (1,259) (1,433) (5,165) (5,998)
Underlying RC profit before interest 1,698 1,535 2,116 6,772 6,783
Top of page 10
oil production & operations (continued)
Fourth Third Fourth
quarter quarter quarter Year Year
$ million 2024 2024 2023 2024 2023
Depreciation, depletion and amortization
Total depreciation, depletion and amortization 1,734 1,708 1,563 6,797 5,692
Exploration write-offs
Exploration write-offs 133 309 32 544 384
Adjusted EBITDA*
Total adjusted EBITDA 4,791 4,811 5,144 19,278 18,857
Capital expenditure*
Total capital expenditure 1,478 1,410 1,636 6,198 6,278
Fourth Third Fourth
quarter quarter quarter Year Year
2024 2024 2023 2024 2023
Production (net of royalties)((a))
Liquids* (mb/d) 1,057 1,084 1,024 1,070 1,010
Natural gas (mmcf/d) 2,269 2,348 2,305 2,318 2,165
Total hydrocarbons* (mboe/d) 1,449 1,488 1,421 1,470 1,383
Average realizations*((b))
Liquids((c)) ($/bbl) 65.56 70.22 76.22 69.85 72.09
Natural gas ($/mcf) 3.29 2.25 3.65 2.55 4.17
Total hydrocarbons((c)) ($/boe) 52.28 53.65 59.69 53.96 58.34
(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.
(c) Fourth quarter and full year 2024 include an immaterial impact
of a prior period adjustment in the US region.
Top of page 11
customers & products
Financial results
• The replacement cost (RC) loss before interest and tax for the
fourth quarter and full year was $2,438 million and $1,560 million
respectively, compared with a loss of $554 million and a profit of $4,230
million for the same periods in 2023. The fourth quarter and full year are
adjusted by an adverse impact of net adjusting items* of $2,136 million and
$4,077 million respectively, mainly related to loss on disposal of the
Türkiye grounds fuels business in the fourth quarter and impairment of the
Gelsenkirchen refinery and associated onerous contract provisions during 2024,
compared with an adverse impact of net adjusting items of $1,357 million and
$2,183 million for the same periods in 2023. See page 27 for more information
on adjusting items.
• After adjusting RC loss before interest and tax for adjusting
items, the underlying RC loss or profit before interest and tax* (underlying
result) for the fourth quarter and full year was a loss of $302 million and a
profit of $2,517 million respectively, compared with a profit of $803 million
and $6,413 million for the same periods in 2023.
• The customers & products underlying result for the fourth
quarter and full year was significantly lower than the same periods in 2023.
The underlying result in the fourth quarter primarily reflected lower refining
margins and a lower customers result. The underlying result for the full year
primarily reflected lower refining margins and a lower oil trading
contribution.
• customers - the customers underlying result for the fourth
quarter and full year was lower compared with the same periods in 2023. The
fourth quarter was impacted by weaker retail fuels margins and the absence of
one-off positive effects that benefited the same period last year. The
contribution of TravelCenters of America continues to be impacted by the US
freight recession. The full year result benefited from a continued stronger
performance in Castrol, resulting in higher unit margins and volumes and lower
costs. In addition, the continued momentum in EV charging, convenience and
retail fuels margins was more than offset by a significantly weaker European
midstream performance driven by biofuels margins.
• products - the products underlying result for the fourth quarter
and full year was significantly lower compared with the same periods in 2023.
In refining, the underlying result for the fourth quarter was mainly impacted
by lower realized refining margins, including the impact of narrower North
American heavy crude oil differentials, partly offset by lower turnaround
activity. The oil trading contribution for the fourth quarter was weak. The
underlying result for the full year was lower, primarily due to lower realized
refining margins and the first quarter plant-wide power outage at the Whiting
refinery, partly offset by a lower impact from turnaround activity. The
underlying oil trading result for the full year was significantly lower than
the same period last year.
Operational update
• bp-operated refining availability* for the fourth quarter and
full year was 94.8% and 94.3%, compared with 96.1% and 96.1% for the same
periods in 2023, with the full year lower mainly due to the first quarter
Whiting refinery power outage.
Strategic progress
• On 31 October bp completed the sale of its Türkiye ground fuels
business to Petrol Ofisi, including the group's interest in three joint
venture terminals in Türkiye. In addition, in November, bp announced its
intention to sell its mobility and convenience and bp pulse businesses in
Netherlands, with a planned completion of the sale by the end of 2025.
• Energy sold and EV charge points* installed in the year grew by
around 75% and 35% respectively, compared to 2023, with charge points now
around 39,100. In addition, in the fourth quarter, bp pulse continued to
progress the roll out of new ultra-fast((a)) charging hubs in the UK and
Germany, alongside continued upgrading of the existing network.
• As part of our continuing drive to focus activity in biofuels,
bp took the decision in January 2025 to rephase and recycle its biofuels
project in Kwinana with the objective of improving capital productivity. In
addition, during the fourth quarter bp continued to progress its strategic
plans to access feedstock for biofuels, announcing a 10-year agreement with
agri-food group MIGASA for the supply of up to 40,000 tonnes per year of
vegetable oil waste, and announcing a collaboration with Corteva, with the
intent of forming a JV, on novel feedstocks.
• On 1 December bp completed the sale of its 50% ownership in the
SAPREF refinery to the South African state-owned entity, Central Energy Fund
SOC Ltd.
• On 3 February 2025 bp completed the acquisition of fuel and
convenience retailer, X Convenience, expanding its network with the addition
of 49 sites in South and Western Australia.
• On 6 February 2025 bp announced its intention to market its Ruhr
Oel GmbH - BP Gelsenkirchen operation in Germany for potential sale, including
its refinery in Gelsenkirchen and DHC Solvent Chemie GmbH in Mülheim an der
Ruhr.
• During the fourth quarter bp's Archaea Energy started up two
renewable natural gas (RNG) landfill plants, bringing the total to 9 RNG
landfill plants started-up year to date with a total capacity of more than 10
million mmBtu per annum, and has a further six plants in commissioning during
the first quarter of 2025.
(a) "ultra-fast" includes charger capacity of ≥150kW.
Top of page 12
customers & products (continued)
Fourth Third Fourth
quarter quarter quarter Year Year
$ million 2024 2024 2023 2024 2023
Profit (loss) before interest and tax (2,452) (1,157) (2,051) (2,039) 2,993
Inventory holding (gains) losses* 14 1,180 1,497 479 1,237
RC profit (loss) before interest and tax (2,438) 23 (554) (1,560) 4,230
Net (favourable) adverse impact of adjusting items 2,136 358 1,357 4,077 2,183
Underlying RC profit before interest and tax (302) 381 803 2,517 6,413
Of which:((a))
customers - convenience & mobility 527 897 882 2,584 2,644
Castrol - included in customers 220 216 213 831 730
products - refining & trading (829) (516) (79) (67) 3,769
Taxation on an underlying RC basis 73 (67) (239) (452) (1,454)
Underlying RC profit before interest (229) 314 564 2,065 4,959
(a) A reconciliation to RC profit before interest and tax by
business is provided on page 32.
Fourth Third Fourth
quarter quarter quarter Year Year
$ million 2024 2024 2023 2024 2023
Adjusted EBITDA*((b))
customers - convenience & mobility 1,174 1,410 1,348 4,719 4,380
Castrol - included in customers 267 261 256 1,007 897
products - refining & trading (365) (66) 397 1,755 5,581
809 1,344 1,745 6,474 9,961
Depreciation, depletion and amortization
Total depreciation, depletion and amortization 1,111 963 942 3,957 3,548
Capital expenditure*
customers - convenience & mobility 541 455 790 2,059 3,135
Castrol - included in customers 60 50 90 227 262
products - refining & trading 783 476 813 2,361 2,118
Total capital expenditure 1,324 931 1,603 4,420 5,253
(b) A reconciliation to RC profit before interest and tax by business
is provided on page 32.
Retail((c)) Fourth Third Fourth
quarter quarter quarter Year Year
2024 2024 2023 2024 2023
bp retail sites* - total (#) 21,200 21,200 21,100 21,200 21,100
Strategic convenience sites* 2,950 2,950 2,850 2,950 2,850
(c) Reported to the nearest 50.
Marketing sales of refined products (mb/d) Fourth Third Fourth
quarter quarter quarter Year Year
2024 2024 2023 2024 2023
US 1,244 1,240 1,205 1,209 1,210
Europe 993 1,130 1,037 1,035 1,040
Rest of World 493 457 465 470 468
2,730 2,827 2,707 2,714 2,718
Trading/supply sales of refined products 397 354 355 373 358
Total sales volume of refined products 3,127 3,181 3,062 3,087 3,076
Refining marker margin* Fourth Third Fourth
quarter quarter quarter Year Year
2024 2024 2023 2024 2023
bp average refining marker margin (RMM) ($/bbl) 13.1 16.5 18.5 17.7 25.8
Top of page 13
customers & products (continued)
Refinery throughputs (mb/d) Fourth Third Fourth
quarter quarter quarter Year Year
2024 2024 2023 2024 2023
US 583 671 634 612 662
Europe 807 769 678 782 749
Total refinery throughputs 1,390 1,440 1,312 1,394 1,411
bp-operated refining availability* (%) 94.8 95.6 96.1 94.3 96.1
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 America oil spill.
Financial results
• The replacement cost (RC) loss before interest and tax for the
fourth quarter and full year was $1,161 million and $988 million respectively,
compared with a loss of $16 million and $903 million for the same periods in
2023. The fourth quarter and full year are adjusted by an adverse impact of
net adjusting items* of $634 million and $380 million respectively, compared
with a favourable impact of net adjusting items of $81 million and an adverse
impact of $37 million for the same periods in 2023. Adjusting items include
adverse impacts of fair value accounting effects* of $493 million for the
quarter and $221 million for the full year in 2024, and a favourable impact of
$579 million and $630 million for the same periods in 2023. See page 27 for
more information on adjusting items.
• After adjusting RC loss before interest and tax for adjusting
items, the underlying RC loss before interest and tax* for the fourth quarter
and full year was $527 million and $608 million respectively, compared with a
loss of $97 million and $866 million for the same periods in 2023, mainly
reflecting adverse foreign exchange effects for the fourth quarter and
increased interest income for the full year.
Strategic progress
• In December, bp invested in Snowfox Discovery Ltd alongside
co-investors Rio Tinto and Oxford Science Enterprises. Snowfox Discovery Ltd
is a natural hydrogen exploration company, whose mission is to unlock the
potential of natural hydrogen to contribute to a net zero future.
• In December, bp ventures announced an investment into Oxford
Flow alongside Energy Impact Partners. Oxford Flow engineers and manufactures
unique valve technology designed to be more reliable and cost-effective.
• In December, bp ventures invested in India's leading intercity
bus platform, Zingbus to scale operations and work to electrify India's
intercity bus routes. Zingbus' platform is designed to make intercity travel
more affordable, accessible and reliable.
Fourth Third Fourth
quarter quarter quarter Year Year
$ million 2024 2024 2023 2024 2023
Profit (loss) before interest and tax (1,161) 653 (16) (988) (903)
Inventory holding (gains) losses* - - - - -
RC profit (loss) before interest and tax (1,161) 653 (16) (988) (903)
Net (favourable) adverse impact of adjusting items((a)) 634 (422) (81) 380 37
Underlying RC profit (loss) before interest and tax (527) 231 (97) (608) (866)
Taxation on an underlying RC basis 254 (64) 121 292 322
Underlying RC profit (loss) before interest (273) 167 24 (316) (544)
(a) Includes fair value accounting effects relating to hybrid bonds.
See page 35 for more information.
Top of page 15
Financial statements
Group income statement
Fourth Third Fourth
quarter quarter quarter Year Year
$ million 2024 2024 2023 2024 2023
Sales and other operating revenues (Note 6) 45,752 47,254 52,141 189,185 210,130
Earnings from joint ventures - after interest and tax 75 406 (290) 909 67
Earnings from associates - after interest and tax 240 280 156 1,084 831
Interest and other income 1,540 438 599 2,773 1,635
Gains on sale of businesses and fixed assets 481 (48) (20) 678 369
Total revenues and other income 48,088 48,330 52,586 194,629 213,032
Purchases 27,264 30,139 31,062 113,941 119,307
Production and manufacturing expenses 8,041 5,004 5,751 26,584 25,044
Production and similar taxes 402 469 445 1,799 1,779
Depreciation, depletion and amortization (Note 7) 4,257 4,117 4,060 16,622 15,928
Net impairment and losses on sale of businesses and fixed assets (Note 4) 3,107 1,842 3,958 6,995 5,857
Exploration expense 176 372 501 974 997
Distribution and administration expenses 4,098 3,930 4,733 16,417 16,772
Profit (loss) before interest and taxation 743 2,457 2,076 11,297 27,348
Finance costs 1,291 1,101 1,038 4,683 3,840
Net finance (income) expense relating to pensions and other post-employment (45) (42) (61) (168) (241)
benefits
Profit (loss) before taxation (503) 1,398 1,099 6,782 23,749
Taxation 1,117 1,028 663 5,553 7,869
Profit (loss) for the period (1,620) 370 436 1,229 15,880
Attributable to
bp shareholders (1,959) 206 371 381 15,239
Non-controlling interests 339 164 65 848 641
(1,620) 370 436 1,229 15,880
Earnings per share (Note 8)
Profit (loss) for the period attributable to bp shareholders
Per ordinary share (cents)
Basic (12.33) 1.26 2.20 2.38 87.78
Diluted (12.33) 1.23 2.15 2.32 85.85
Per ADS (dollars)
Basic (0.74) 0.08 0.13 0.14 5.27
Diluted (0.74) 0.07 0.13 0.14 5.15
Top of page 16
Condensed group statement of comprehensive income
Fourth Third Fourth
quarter quarter quarter Year Year
$ million 2024 2024 2023 2024 2023
Profit (loss) for the period (1,620) 370 436 1,229 15,880
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Currency translation differences((a)) (1,540) 838 711 (1,292) 585
Exchange (gains) losses on translation of foreign operations reclassified to 1,004 - - 1,004 (2)
gain or loss on sale of businesses and fixed assets((b))
Cash flow hedges and costs of hedging (209) (111) 125 (535) 559
Share of items relating to equity-accounted entities, net of tax 27 (41) 13 (12) (192)
Income tax relating to items that may be reclassified (79) 91 64 48 (10)
(797) 777 913 (787) 940
Items that will not be reclassified to profit or loss
Remeasurements of the net pension and other post-employment benefit liability (3) (51) (1,209) (360) (2,262)
or asset
Remeasurements of equity investments (9) (8) 51 (47) 51
Cash flow hedges that will subsequently be transferred to the balance sheet (8) 10 16 (1) 15
Income tax relating to items that will not be reclassified(c) (11) 12 357 734 745
(31) (37) (785) 326 (1,451)
Other comprehensive income (828) 740 128 (461) (511)
Total comprehensive income (2,448) 1,110 564 768 15,369
Attributable to
bp shareholders (2,698) 922 461 7 14,702
Non-controlling interests 250 188 103 761 667
(2,448) 1,110 564 768 15,369
(a) Fourth quarter and full year 2024 is principally affected by
movements in the Pound Sterling against the US dollar.
(b) Fourth quarter and full year 2024 includes $942 million recycling
of cumulative foreign exchange losses from reserves relating to the sale of
bp's Türkiye ground fuels business to Petrol Ofisi.
(c) Full year 2024 includes a $658-million credit in respect of the
reduction in the deferred tax liability on defined benefit pension plan
surpluses following the reduction in the rate of the authorized surplus
payments tax charge in the UK from 35% to 25%.
Top of page 17
Condensed group statement of changes in equity
bp shareholders' Non-controlling interests Total
$ million equity Hybrid bonds Other interest equity
At 1 January 2024 70,283 13,566 1,644 85,493
Total comprehensive income 7 641 120 768
Dividends (5,018) - (375) (5,393)
Cash flow hedges transferred to the balance sheet, net of tax (10) - - (10)
Repurchase of ordinary share capital (7,302) - - (7,302)
Share-based payments, net of tax 1,083 - - 1,083
Issue of perpetual hybrid bonds(a)(b) (22) 4,352 - 4,330
Redemption of perpetual hybrid bonds, net of tax(a) 9 (1,300) - (1,291)
Payments on perpetual hybrid bonds - (610) - (610)
Transactions involving non-controlling interests, net of tax 216 - 1,034 1,250
At 31 December 2024 59,246 16,649 2,423 78,318
bp shareholders' Non-controlling interests Total
$ million equity Hybrid bonds Other interest equity
At 1 January 2023 67,553 13,390 2,047 82,990
Total comprehensive income 14,702 586 81 15,369
Dividends (4,831) - (403) (5,234)
Cash flow hedges transferred to the balance sheet, net of tax (1) - - (1)
Repurchase of ordinary share capital (8,167) - - (8,167)
Share-based payments, net of tax 669 - - 669
Share of equity-accounted entities' changes in equity, net of tax 1 - - 1
Issue of perpetual hybrid bonds (1) 176 - 175
Payments on perpetual hybrid bonds (5) (586) - (591)
Transactions involving non-controlling interests, net of tax 363 - (81) 282
At 31 December 2023 70,283 13,566 1,644 85,493
(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.
(b) During the fourth quarter 2024 BP Capital Markets PLC issued
perpetual subordinated hybrid bonds in euro, sterling and US dollars for a US
dollar equivalent amount of $2.6 billion. Coupons are fixed for an initial
period up to dates from 2030 to 2035 at rates of 4.375% to 6.125%. In addition
another group subsidiary issued perpetual subordinated hybrid securities of
$0.5 billion, the proceeds of which were specifically earmarked to fund BP
Alternative Energy Investments Ltd including the funding of Lightsource bp.
These transactions resulted in a reduction of net debt and gearing.
Top of page 18
Group balance sheet
31 December 31 December
$ million 2024 2023
Non-current assets
Property, plant and equipment 100,238 104,719
Goodwill 14,888 12,472
Intangible assets 9,646 9,991
Investments in joint ventures 12,291 12,435
Investments in associates 7,741 7,814
Other investments 1,292 2,189
Fixed assets 146,096 149,620
Loans 1,961 1,942
Trade and other receivables 1,815 1,767
Derivative financial instruments 16,114 9,980
Prepayments 548 623
Deferred tax assets 5,403 4,268
Defined benefit pension plan surpluses 7,457 7,948
179,394 176,148
Current assets
Loans 223 240
Inventories 23,232 22,819
Trade and other receivables 27,127 31,123
Derivative financial instruments 5,112 12,583
Prepayments 2,594 2,520
Current tax receivable 1,096 837
Other investments 165 843
Cash and cash equivalents 39,204 33,030
98,753 103,995
Assets classified as held for sale (Note 3) 4,081 151
102,834 104,146
Total assets 282,228 280,294
Current liabilities
Trade and other payables 58,411 61,155
Derivative financial instruments 4,347 5,250
Accruals 6,071 6,527
Lease liabilities 2,660 2,650
Finance debt 4,474 3,284
Current tax payable 1,573 2,732
Provisions 3,600 4,418
81,136 86,016
Liabilities directly associated with assets classified as held for sale (Note 1,105 62
3)
82,241 86,078
Non-current liabilities
Other payables 9,409 10,076
Derivative financial instruments 18,532 10,402
Accruals 1,326 1,310
Lease liabilities 9,340 8,471
Finance debt 55,073 48,670
Deferred tax liabilities 8,428 9,617
Provisions 14,688 14,721
Defined benefit pension plan and other post-employment benefit plan deficits 4,873 5,456
121,669 108,723
Total liabilities 203,910 194,801
Net assets 78,318 85,493
Equity
bp shareholders' equity 59,246 70,283
Non-controlling interests 19,072 15,210
Total equity 78,318 85,493
Top of page 19
Condensed group cash flow statement
Fourth Third Fourth
quarter quarter quarter Year Year
$ million 2024 2024 2023 2024 2023
Operating activities
Profit (loss) before taxation (503) 1,398 1,099 6,782 23,749
Adjustments to reconcile profit (loss) before taxation to net cash provided by
operating activities
Depreciation, depletion and amortization and exploration expenditure written 4,381 4,427 4,441 17,389 16,674
off
Net impairment and (gain) loss on sale of businesses and fixed assets 2,626 1,890 3,978 6,317 5,488
Earnings from equity-accounted entities, less dividends received 303 (196) 803 30 1,194
Remeasurement of joint ventures(a) (917) - - (917) -
Net charge for interest and other finance expense, less net interest paid 602 324 202 1,642 503
Share-based payments 228 278 97 1,174 616
Net operating charge for pensions and other post-employment benefits, less (64) (52) (63) (182) (193)
contributions and benefit payments for unfunded plans
Net charge for provisions, less payments (185) (48) (819) (152) (2,481)
Movements in inventories and other current and non-current assets and 2,752 1,798 1,942 3,975 (3,338)
liabilities
Income taxes paid (1,796) (3,058) (2,303) (8,761) (10,173)
Net cash provided by operating activities 7,427 6,761 9,377 27,297 32,039
Investing activities
Expenditure on property, plant and equipment, intangible and other assets (3,893) (4,223) (4,247) (15,297) (14,285)
Acquisitions, net of cash acquired 493 (218) (38) 53 (799)
Investment in joint ventures (326) (76) (347) (850) (1,039)
Investment in associates - (25) (79) (143) (130)
Total cash capital expenditure (3,726) (4,542) (4,711) (16,237) (16,253)
Proceeds from disposal of fixed assets 211 16 31 328 133
Proceeds from disposal of businesses, net of cash disposed 1,738 274 269 2,578 1,193
Proceeds from loan repayments 22 19 16 81 55
Cash provided from investing activities 1,971 309 316 2,987 1,381
Net cash used in investing activities (1,755) (4,233) (4,395) (13,250) (14,872)
Financing activities
Net issue (repurchase) of shares (Note 8) (1,625) (2,001) (1,350) (7,127) (7,918)
Lease liability payments (757) (703) (722) (2,833) (2,560)
Proceeds from long-term financing 3,260 2,401 1,522 10,656 7,568
Repayments of long-term financing (717) (956) (11) (2,970) (3,902)
Net increase (decrease) in short-term debt (2,958) (73) 87 (2,966) (861)
Issue of perpetual hybrid bonds(b) 3,034 - 13 4,330 175
Redemption of perpetual hybrid bonds(b) - - - (1,288) -
Payments relating to perpetual hybrid bonds (255) (271) (264) (1,053) (1,008)
Payments relating to transactions involving non-controlling interests (Other (21) - (7) (21) (187)
interest)
Receipts relating to transactions involving non-controlling interests (Other 836 (7) 10 1,353 546
interest)
Dividends paid - bp shareholders (1,283) (1,297) (1,224) (5,003) (4,809)
- non-controlling interests (93) (96) (77) (375) (403)
Net cash provided by (used in) financing activities (579) (3,003) (2,023) (7,297) (13,359)
Currency translation differences relating to cash and cash equivalents (419) 179 145 (511) 27
Increase (decrease) in cash and cash equivalents 4,674 (296) 3,104 6,239 3,835
Cash and cash equivalents at beginning of period 34,595 34,891 29,926 33,030 29,195
Cash and cash equivalents at end of period(c) 39,269 34,595 33,030 39,269 33,030
(a) See Note 2 for further information.
(b) See Condensed group statement of changes in equity - footnotes (a)
and (b) for further information.
(c) Fourth quarter and full year 2024 includes $65 million of cash
and cash equivalents classified as assets held for sale in the group balance
sheet.
Top of page 20
Notes
Note 1. Basis of preparation
The results for the interim periods are unaudited and, in the opinion of
management, include all adjustments necessary for a fair presentation of the
results for each period. All such adjustments are of a normal recurring
nature. This report should be read in conjunction with the consolidated
financial statements and related notes for the year ended 31 December 2023
included in bp Annual Report and Form 20-F 2023.
bp prepares its consolidated financial statements included within bp Annual
Report and Form 20-F on the basis of International Financial Reporting
Standards (IFRS) as issued by the International Accounting Standards Board
(IASB), IFRS as adopted by the UK, and European Union (EU), and in accordance
with the provisions of the UK Companies Act 2006 as applicable to companies
reporting under international accounting standards. IFRS as adopted by the UK
does not differ from IFRS as adopted by the EU. IFRS as adopted by the UK and
EU differ in certain respects from IFRS as issued by the IASB. The differences
have no impact on the group's consolidated financial statements for the
periods presented. The financial information presented herein has been
prepared in accordance with the accounting policies expected to be used in
preparing bp Annual Report and Form 20-F 2024 which are the same as those used
in preparing bp Annual Report and Form 20-F 2023. In October 2024, the UK
government announced changes (effective from 1 November 2024) to the Energy
Profits Levy including a 3% increase in the rate taking the headline rate of
tax on North Sea profits to 78%, an extension to the period of application of
the Levy to 31 March 2030 and the removal of the Levy's main investment
allowance. The changes to the rate and to the investment allowance were
substantively enacted in the fourth quarter and have been applied in
accounting for current tax and deferred tax in the quarter, resulting in an
additional non-cash deferred tax charge of approximately $0.1 billion. The
extension of the Levy to 31 March 2030 is expected to be substantively enacted
during 2025 and will result in a deferred tax charge in the group consolidated
financial statements in the quarter that it is substantively enacted.
There are no new or amended standards or interpretations adopted from 1
January 2024 onwards that have a significant impact on the financial
information.
Significant accounting judgements and estimates
bp's significant accounting judgements and estimates were disclosed in bp
Annual Report and Form 20-F 2023. These have been subsequently considered at
the end of this quarter to determine if any changes were required to those
judgements and estimates.
Impairment testing assumptions
The group's value-in-use impairment testing price assumptions for Brent oil
and Henry Hub gas were revised during the fourth quarter from those disclosed
in the bp Annual Report and Form 20-F 2023. The revised price assumptions have
been rebased in real 2023 terms and are materially consistent with the
disclosed prices in real 2022 terms. A summary of the group's price
assumptions for value-in-use impairment testing, in real 2023 terms, is
provided below:
2025 2030 2040 2050
Brent oil ($/bbl) 70 70 63 50
Henry Hub gas ($/mmBtu) 4.00 4.00 4.00 4.00
The post-tax discount rate used for value-in-use impairment testing of assets
other than certain low carbon energy assets was maintained at 8% (31 December
2023: 8%).
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 remains
at 4.5% following the increase applied in the second quarter (31 December 2023
4.0%).
Top of page 21
Note 2. Business combinations
The group undertook several business combinations during the fourth quarter of
2024, principally the step acquisitions of bp Bunge Bioenergia and Lightsource
bp. Total consideration for these two acquisitions was $1,328 million and the
amount paid in cash in the fourth quarter amounted to $106 million, offset by
cash acquired of $589 million. The provisional fair value of the net assets
(including goodwill) recognized from these business combinations, for the
fourth quarter 2024 was $2,848 million.
The gain recognized in 'Interest and other income' in the fourth quarter 2024
as a result of remeasuring the previously held interests in bp Bunge
Bioenergia and Lightsource bp, to fair value, was $427 million.
Immediately prior to the Lightsource bp business combination, certain assets
in the US were transferred from Lightsource bp into a new joint venture which
remains jointly controlled by bp and certain founder shareholders of
Lightsource bp, and is accordingly equity accounted for bp. The investment in
the new joint venture was measured at bp's share of the joint venture's net
assets and, as a result, income of $498 million has been recognized in
'Interest and other income' in the fourth quarter 2024.
Note 3. Non-current assets held for sale
The carrying amount of assets classified as held for sale at 31 December 2024
is $4,081 million, with associated liabilities of $1,105 million.
On 16 September 2024, bp announced that it plans to sell its US onshore wind
energy business, bp Wind Energy. bp Wind Energy has interests in ten
operating onshore wind energy assets across seven US states. As a result of
progression of the disposal process during the fourth quarter of 2024,
completion of a disposal in 2025 is now considered to be highly probable. The
carrying amount of assets classified as held for sale at 31 December 2024 is
$569 million, with associated liabilities of $41 million.
On 24 October, bp completed the acquisition of the remaining 50.03% of
Lightsource bp. The acquisition included certain assets for which sales
processes were in progress at the acquisition date. Completion of the sale of
these assets within one year of the acquisition date is considered to be
highly probable. The carrying amount of assets classified as held for sale at
31 December 2024 is $1,702 million, with associated liabilities of $1,050
million.
On 9 December 2024, bp and JERA Co., Inc. agreed to combine their offshore
wind businesses to form a new standalone, equally-owned joint venture - JERA
Nex bp. The parties have agreed to work to complete formation of JERA Nex bp,
subject to regulatory and other approvals, by end of the third quarter of
2025. bp will contribute its development projects in the UK, Japan, Germany
and US into the new joint venture. The related assets and liabilities of those
projects have, therefore, been classified as held for sale. The carrying
amount of assets classified as held for sale at 31 December 2024 is $1,793
million, with associated liabilities of $14 million.
Transactions that were classified as held for sale during 2024, but completed
during the fourth quarter, are described below.
On 14 February 2024, bp and ADNOC announced that they had agreed to form a new
joint venture (JV) in Egypt. On 16 December bp and XRG (ADNOC's international
energy investment company) announced they had completed formation of Arcius
Energy (51% bp, 49% XRG, ADNOC's international energy investment company). As
part of the agreement, bp contributed its interests in three development
concessions, as well as exploration agreements, in Egypt to the new JV. XRG
made a proportionate cash contribution.
On 4 October 2024, bp completed the sale of receivables relating to a prior
divestment receiving proceeds of $890 million.
On 16 November 2023, bp entered into an agreement to sell its Türkiye ground
fuels business to Petrol Ofisi. This included the group's interest in three
joint venture terminals in Türkiye. The sale completed on 31 October 2024 and
resulted in a loss on disposal of $1,132 million including recycling of
cumulative foreign exchange losses from reserves of $942 million.
Top of page 22
Note 4. Impairment and losses on sale of businesses and fixed assets
Net impairment charges and losses on sale of businesses and fixed assets for
the fourth quarter and full year were $3,107 million and $6,995 million
respectively, compared with net charges of $3,958 million and $5,857 million
for the same periods in 2023 and include net impairment charges for the fourth
quarter and full year of $1,514 million and $5,189 million respectively,
compared with net impairment charges of $3,922 million and $5,701 million
for the same periods in 2023.
Gas & low carbon energy
Fourth quarter and full year 2024 impairments includes a net impairment charge
of $890 million and $2,749 million respectively, compared with net charges
of $928 million and $2,212 million for the same periods in 2023 in the gas
& low carbon energy segment. 2024 includes amounts in Mauritania &
Senegal, which principally arose as a result of increased forecast future
expenditure, and a number of other individually immaterial impairments across
the Gas and low carbon energy segment principally as a result of portfolio
management. The recoverable amounts of these cash generating units were based
on value-in-use or fair value less costs of disposal calculations, as
appropriate.
Oil production & operations
Fourth quarter and full year 2024 impairments includes a net impairment
reversal of $129 million and net impairment charge of $771 million
respectively, compared with net charges of $1,636 million and $1,814 million
for the same periods in 2023 in the oil production & operations segment.
2024 includes amounts in the North Sea. The recoverable amounts of the cash
generating units within this business were based on value-in-use calculations.
Customers & products
Fourth quarter and full year 2024 impairments includes a net impairment charge
of $746 million and $1,660 million respectively, compared with net charges
of $1,367 million and $1,614 million for the same periods in 2023 in the
customers & products segment. 2024 includes amounts in Germany relating to
the ongoing review of the Gelsenkirchen refinery. The recoverable amount of
the cash generating unit within this business was based on a value-in-use
calculation.
Note 5. Analysis of replacement cost profit (loss) before interest and tax and
reconciliation to profit (loss) before taxation
Fourth Third Fourth
quarter quarter quarter Year Year
$ million 2024 2024 2023 2024 2023
gas & low carbon energy 1,841 1,007 2,169 3,569 14,080
oil production & operations 2,571 1,891 1,879 10,789 11,191
customers & products (2,438) 23 (554) (1,560) 4,230
other businesses & corporate (1,161) 653 (16) (988) (903)
813 3,574 3,478 11,810 28,598
Consolidation adjustment - UPII* (49) 65 95 (25) (14)
RC profit (loss) before interest and tax 764 3,639 3,573 11,785 28,584
Inventory holding gains (losses)*
gas & low carbon energy - - - - 1
oil production & operations (7) (2) - (9) -
customers & products (14) (1,180) (1,497) (479) (1,237)
Profit (loss) before interest and tax 743 2,457 2,076 11,297 27,348
Finance costs 1,291 1,101 1,038 4,683 3,840
Net finance expense/(income) relating to pensions and other post-employment (45) (42) (61) (168) (241)
benefits
Profit (loss) before taxation (503) 1,398 1,099 6,782 23,749
RC profit (loss) before interest and tax*
US (117) 1,122 1,154 4,160 7,940
Non-US 881 2,517 2,419 7,625 20,644
764 3,639 3,573 11,785 28,584
Top of page 23
Note 6. Sales and other operating revenues
Fourth Third Fourth
quarter quarter quarter Year Year
$ million 2024 2024 2023 2024 2023
By segment
gas & low carbon energy 9,618 8,526 11,670 32,628 50,297
oil production & operations 6,078 6,468 6,749 25,637 24,904
customers & products 35,969 38,437 40,374 155,401 160,215
other businesses & corporate 544 614 657 2,290 2,657
52,209 54,045 59,450 215,956 238,073
Less: sales and other operating revenues between segments
gas & low carbon energy 559 385 65 1,585 1,808
oil production & operations 5,482 5,860 6,464 23,237 23,708
customers & products 137 (138) (105) 317 367
other businesses & corporate 279 684 885 1,632 2,060
6,457 6,791 7,309 26,771 27,943
External sales and other operating revenues
gas & low carbon energy 9,059 8,141 11,605 31,043 48,489
oil production & operations 596 608 285 2,400 1,196
customers & products 35,832 38,575 40,479 155,084 159,848
other businesses & corporate 265 (70) (228) 658 597
Total sales and other operating revenues 45,752 47,254 52,141 189,185 210,130
By geographical area
US 18,212 19,388 20,920 77,798 82,177
Non-US 35,265 36,712 40,808 148,017 169,032
53,477 56,100 61,728 225,815 251,209
Less: sales and other operating revenues between areas 7,725 8,846 9,587 36,630 41,079
45,752 47,254 52,141 189,185 210,130
Revenues from contracts with customers
Sales and other operating revenues include the following in relation to
revenues from contracts with customers:
Crude oil 515 618 760 2,219 2,413
Oil products 27,634 30,997 32,124 121,019 128,969
Natural gas, LNG and NGLs 7,268 6,458 7,660 24,464 29,541
Non-oil products and other revenues from contracts with customers 4,113 3,213 2,911 13,362 10,298
Revenue from contracts with customers 39,530 41,286 43,455 161,064 171,221
Other operating revenues((a)) 6,222 5,968 8,686 28,121 38,909
Total sales and other operating revenues 45,752 47,254 52,141 189,185 210,130
(a) Principally relates to commodity derivative transactions
including sales of bp own production in trading books.
( )
Top of page 24
Note 7. Depreciation, depletion and amortization
Fourth Third Fourth
quarter quarter quarter Year Year
$ million 2024 2024 2023 2024 2023
Total depreciation, depletion and amortization by segment
gas & low carbon energy 1,153 1,180 1,290 4,835 5,680
oil production & operations 1,734 1,708 1,563 6,797 5,692
customers & products 1,111 963 942 3,957 3,548
other businesses & corporate 259 266 265 1,033 1,008
4,257 4,117 4,060 16,622 15,928
Total depreciation, depletion and amortization by geographical area
US 1,739 1,735 1,547 6,747 5,618
Non-US 2,518 2,382 2,513 9,875 10,310
4,257 4,117 4,060 16,622 15,928
Note 8. Earnings per share and shares in issue
Basic earnings per ordinary share (EpS) amounts are calculated by dividing the
profit (loss) for the period attributable to ordinary shareholders by the
weighted average number of ordinary shares outstanding during the period.
Against the authority granted at bp's 2024 annual general meeting,
318 million ordinary shares repurchased for cancellation were settled during
the fourth quarter 2024 for a total cost of $1,625 million. A further
176 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 $922 million. This amount has been accrued at 31 December
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.
Fourth Third Fourth
quarter quarter quarter Year Year
$ million 2024 2024 2023 2024 2023
Results for the period
Profit (loss) for the period attributable to bp shareholders (1,959) 206 371 381 15,239
Less: preference dividend - - - 1 1
Less: (gain) loss on redemption of perpetual hybrid - - - (10) -
bonds((a))
Profit (loss) attributable to bp ordinary shareholders (1,959) 206 371 390 15,238
Number of shares (thousand)((b)(c))
Basic weighted average number of shares outstanding 15,885,184 16,321,349 16,834,354 16,385,535 17,360,288
ADS equivalent((d)) 2,647,530 2,720,224 2,805,725 2,730,922 2,893,381
Weighted average number of shares outstanding used to calculate diluted 15,885,184 16,709,108 17,269,574 16,816,664 17,750,078
earnings per share
ADS equivalent((d)) 2,647,530 2,784,851 2,878,262 2,802,777 2,958,346
Shares in issue at period-end 15,851,028 16,155,806 16,824,651 15,851,028 16,824,651
ADS equivalent((d)) 2,641,838 2,692,634 2,804,108 2,641,838 2,804,108
(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 fourth quarter 2024 are 367,276 thousand (ADS
equivalent 61,213 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 25
Note 9. Dividends
Dividends payable
bp today announced an interim dividend of 8.000 cents per ordinary share which
is expected to be paid on 28 March 2025 to ordinary shareholders and American
Depositary Share (ADS) holders on the register on 21 February 2025. The
ex-dividend date will be 20 February 2025 for ordinary shareholders and 21
February 2025 for ADS holders. The corresponding amount in sterling is due to
be announced on 17 March 2025, calculated based on the average of the market
exchange rates over three dealing days between 11 March 2025 and 13 March
2025. 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 fourth 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 fourth quarter dividend and
timetable are available at bp.com/dividends and further details of the
dividend reinvestment programmes are available at bp.com/drip.
Fourth Third Fourth
quarter quarter quarter Year Year
2024 2024 2023 2024 2023
Dividends paid per ordinary share
cents 8.000 8.000 7.270 30.540 27.760
pence 6.296 6.050 5.737 23.720 22.328
Dividends paid per ADS (cents) 48.00 48.00 43.62 183.24 166.56
Note 10. Net debt
Net debt* 31 December 30 September 31 December
$ million 2024 2024 2023
Finance debt((a)) 59,547 57,470 51,954
Fair value (asset) liability of hedges related to finance debt((b)) 2,654 1,393 1,988
62,201 58,863 53,942
Less: cash and cash equivalents 39,204 34,595 33,030
Net debt((c)) 22,997 24,268 20,912
Total equity((d)) 78,318 79,946 85,493
Gearing* 22.7% 23.3% 19.7%
(a) The fair value of finance debt at 31 December 2024 was
$54,966 million (30 September 2024 $54,324 million, 31 December 2023 $48,795
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 $166 million at 31 December 2024 (third quarter
2024 liability of $123 million and fourth quarter 2023 liability of
$73 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.
(d) Total equity at 31 December 2024 includes the additional $3.1
billion related to perpetual hybrid bonds and securities issued in the fourth
quarter. See Condensed group statement of changes in equity - footnote (b) for
further information.
Note 11. Statutory accounts
The financial information shown in this publication, which was approved by the
Board of Directors on 10 February 2025, is unaudited and does not constitute
statutory financial statements. Audited financial information will be
published in bp Annual Report and Form 20-F 2024. bp Annual Report and Form
20-F 2023 has been filed with the Registrar of Companies in England and Wales.
The report of the auditor on those accounts was unqualified, did not include a
reference to any matters to which the auditor drew attention by way of
emphasis without qualifying the report and did not contain a statement under
section 498(2) or section 498(3) of the UK Companies Act 2006.
Top of page 26
Additional information
Capital expenditure*
Fourth Third Fourth
quarter quarter quarter Year Year
$ million 2024 2024 2023 2024 2023
Capital expenditure
Organic capital expenditure* 4,229 4,341 4,673 16,135 14,998
Inorganic capital expenditure*((a)) (503) 201 38 102 1,255
3,726 4,542 4,711 16,237 16,253
Fourth Third Fourth
quarter quarter quarter Year Year
$ million 2024 2024 2023 2024 2023
Capital expenditure by segment
gas & low carbon energy((a)) 812 2,096 1,326 5,211 4,281
oil production & operations 1,478 1,410 1,636 6,198 6,278
customers & products((a)) 1,324 931 1,603 4,420 5,253
other businesses & corporate 112 105 146 408 441
3,726 4,542 4,711 16,237 16,253
Capital expenditure by geographical area
US 1,765 1,389 2,164 6,566 8,105
Non-US 1,961 3,153 2,547 9,671 8,148
3,726 4,542 4,711 16,237 16,253
(a) Fourth quarter and full year 2024 include the cash acquired net
of acquisition payments on completion of the bp Bunge Bioenergia and
Lightsource bp acquisitions. Full year 2023 includes $1.1 billion, net of
adjustments, in respect of the TravelCenters of America acquisition.
Top of page 27
Adjusting items*
Fourth Third Fourth
quarter quarter quarter Year Year
$ million 2024 2024 2023 2024 2023
gas & low carbon energy
Gains on sale of businesses and fixed assets 268 19 3 297 19
Net impairment and losses on sale of businesses and fixed assets((a)) (1,106) (772) (937) (3,004) (2,221)
Environmental and related provisions - - - - -
Restructuring, integration and rationalization costs (1) (24) - (25) -
Fair value accounting effects((b)(c)) (377) (275) 1,887 (1,550) 8,859
Other((d)) 1,070 303 (561) 1,048 (1,299)
(146) (749) 392 (3,234) 5,358
oil production & operations
Gains on sale of businesses and fixed assets 35 (82) (55) 144 297
Net impairment and losses on sale of businesses and fixed assets((a)) 129 (770) (1,635) (790) (1,819)
Environmental and related provisions (60) (53) 48 5 54
Restructuring, integration and rationalization costs (14) (1) - (15) (1)
Fair value accounting effects - - - - -
Other((e)) (443) 3 (28) (492) (121)
(353) (903) (1,670) (1,148) (1,590)
customers & products
Gains on sale of businesses and fixed assets 169 12 23 190 44
Net impairment and losses on sale of businesses and fixed assets((a)(f)) (2,048) (295) (1,396) (3,117) (1,757)
Environmental and related provisions (102) (4) (86) (99) (97)
Restructuring, integration and rationalization costs (85) (39) - (123) -
Fair value accounting effects((c)) (119) 157 144 (81) (86)
Other((g)) 49 (189) (42) (847) (287)
(2,136) (358) (1,357) (4,077) (2,183)
other businesses & corporate
Gains on sale of businesses and fixed assets 4 3 1 39 1
Net impairment and losses on sale of businesses and fixed assets (28) (6) 19 (19) (41)
Environmental and related provisions((h)) (98) (8) (565) (87) (604)
Restructuring, integration and rationalization costs (21) (50) 51 (59) 38
Fair value accounting effects((c)) (493) 494 579 (221) 630
Gulf of America oil spill (12) (20) (11) (51) (57)
Other 14 9 7 18 (4)
(634) 422 81 (380) (37)
Total before interest and taxation (3,269) (1,588) (2,554) (8,839) 1,548
Finance costs((i)) (150) (58) (86) (505) (405)
Total before taxation (3,419) (1,646) (2,640) (9,344) 1,143
Taxation on adjusting items((j)) 266 535 1,175 1,495 972
Taxation - tax rate change effect((k)) 32 (44) - (316) 232
Total after taxation for period (3,121) (1,155) (1,465) (8,165) 2,347
(a) See Note 4 for further information.
(b) Under IFRS bp marks-to-market the value of the hedges used to
risk-manage LNG contracts, but not the contracts themselves, resulting in a
mismatch in accounting treatment. The fair value accounting effect includes
the change in value of LNG contracts that are being risk managed, and the
underlying result reflects how bp risk-manages its LNG contracts.
(c) For further information, including the nature of fair value
accounting effects reported in each segment, see pages 3, 6 and 35.
(d) Fourth quarter and full year 2024 include a $508 million gain
relating to the remeasurement of bp's pre-existing 49.97% interest in
Lightsource bp and $498 million relating to the remeasurement of certain US
assets excluded from the Lightsource bp acquisition (see Note 2 for further
information). Fourth quarter and full year 2023 include $600 million and
$1,140 million respectively of impairment charges recognized through
equity-accounted earnings relating to our US offshore wind projects.
(e) Fourth quarter and full year 2024 includes $429 million of
impairment charges recognized through equity-accounted earnings relating to
our interest in Pan American Energy Group.
(f) See Note 3 for further information.
(g) All periods in 2024 include recognition of onerous contract
provisions related to the Gelsenkirchen refinery. The unwind of these
provisions will be reported as an adjusting item as the contractual
obligations are settled.
(h) Fourth quarter and full year 2023 include charges related to the
control, abatement, clean-up or elimination of environmental pollution and
legal settlements.
(i) Includes the unwinding of discounting effects relating to Gulf
of America oil spill payables and the income statement impact of temporary
valuation differences related to the group's interest rate and foreign
currency exchange risk management associated with finance debt. Full year 2023
also includes the income statement impact associated with the buyback of
finance debt. Third quarter, fourth quarter and full year 2024 also include
the unwinding of discounting effects relating to certain onerous contract
provisions.
Top of page 28
(j) 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.
(k) Fourth quarter and full year 2024 and full year 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 78% (75% until 31 October 2024) and applies to taxable profits
from bp's North Sea business made from 1 January 2023 until 31 March 2028. In
October 2024 the UK government announced changes to the EPL including a 3%
increase in the rate from 1 November 2024, the removal of the Levy's main
investment allowance and an extension to 31 March 2030. The changes to the
rate and to the investment allowance were substantively enacted in the fourth
quarter. The extension to 31 March 2030 has not yet been substantively enacted
and has therefore not been accounted for at 31 December 2024, the impact will
be reflected in the financial statements when the change is substantively
enacted.
Net debt including leases
Net debt including leases* 31 December 30 September 31 December
$ million 2024 2024 2023
Net debt* 22,997 24,268 20,912
Lease liabilities 12,000 11,018 11,121
Net partner (receivable) payable for leases entered into on behalf of joint (88) (98) (131)
operations
Net debt including leases 34,909 35,188 31,902
Total equity((a)) 78,318 79,946 85,493
Gearing including leases* 30.8% 30.6% 27.2%
(a)Total equity at 31 December 2024 includes the additional $3.1 billion
related to perpetual hybrid bonds and securities issued in the fourth quarter.
See Condensed group statement of changes in equity - footnote (b) for further
information.
Gulf of America oil spill
31 December 31 December
$ million 2024 2023
Gulf of America oil spill payables and provisions (7,958) (8,735)
Of which - current (1,127) (1,133)
Deferred tax asset 1,205 1,320
During the second quarter 2024 pre-tax payments of $1,129 million were made
relating to the 2016 consent decree and settlement agreement with the United
States and the five Gulf coast states. Payables and provisions presented in
the table above reflect the latest estimate for the remaining costs associated
with the Gulf of America 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 America 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
Fourth Third Fourth
quarter quarter quarter Year Year
$ million 2024 2024 2023 2024 2023
Movements in inventories and other current and non-current assets and 2,752 1,798 1,942 3,975 (3,338)
liabilities as per condensed group cash flow statement((a))
Adjusted for inventory holding gains (losses)* (Note 5) (21) (1,182) (1,497) (488) (1,236)
Adjusted for fair value accounting effects* relating to subsidiaries (992) 319 2,610 (2,018) 9,348
Other adjusting items((b)) (460) 451 (966) (661) (2,006)
Working capital release (build) after adjusting for net inventory gains 1,279 1,386 2,089 808 2,768
(losses), fair value accounting effects and other adjusting items
(a) The movement in working capital includes outflows relating to
the Gulf of America oil spill on a pre-tax basis of $1 million and
$1,141 million in the fourth quarter and full year 2024 respectively (third
quarter 2024 $4 million, fourth quarter 2023 nil, full year 2023
$1,222 million).
(b) Other adjusting items relate to the non-cash movement of US
emissions obligations carried as a provision that will be settled by
allowances held as inventory.
Top of page 29
Adjusted earnings before interest, taxation, depreciation and amortization
(adjusted EBITDA)*
Fourth Third Fourth
quarter quarter quarter Year Year
$ million 2024 2024 2023 2024 2023
Profit for the period (1,620) 370 436 1,229 15,880
Finance costs 1,291 1,101 1,038 4,683 3,840
Net finance (income) expense relating to pensions and other post-employment (45) (42) (61) (168) (241)
benefits
Taxation 1,117 1,028 663 5,553 7,869
Profit before interest and tax 743 2,457 2,076 11,297 27,348
Inventory holding (gains) losses*, before tax 21 1,182 1,497 488 1,236
RC profit before interest and tax 764 3,639 3,573 11,785 28,584
Net (favourable) adverse impact of adjusting items*, before interest and tax 3,269 1,588 2,554 8,839 (1,548)
Underlying RC profit before interest and tax 4,033 5,227 6,127 20,624 27,036
Add back:
Depreciation, depletion and amortization 4,257 4,117 4,060 16,622 15,928
Exploration expenditure written off 123 310 381 766 746
Adjusted EBITDA 8,413 9,654 10,568 38,012 43,710
Adjusted earnings before interest, depreciation and amortization (adjusted
EBIDA)*
Year Year
$ million 2024 2023
Profit for the period 1,229 15,880
Finance costs 4,683 3,840
Net finance (income) expense relating to pensions and other post-employment (168) (241)
benefits
Taxation 5,553 7,869
Profit before interest and tax 11,297 27,348
Inventory holding (gains) losses*, before tax 488 1,236
RC profit before interest and tax 11,785 28,584
Net (favourable) adverse impact of adjusting items*, before interest and tax 8,839 (1,548)
Underlying RC profit before interest and tax 20,624 27,036
Taxation on an underlying RC basis (6,851) (9,365)
13,773 17,671
Add back:
Depreciation, depletion and amortization 16,622 15,928
Exploration expenditure written off 766 746
Adjusted EBIDA 31,161 34,345
Top of page 30
Return on average capital employed (ROACE)*
Year Year
$ million 2024 2023
Profit (loss) for the year attributable to bp shareholders 381 15,239
Inventory holding (gains) losses*, net of tax 369 944
Net (favourable) adverse impact of adjusting items*, after taxation 8,165 (2,347)
Underlying replacement cost (RC) profit* 8,915 13,836
Interest expense, net of tax((a)) 2,709 1,908
Non-controlling interests 848 641
Adjusted underlying RC profit 12,472 16,385
Total equity 78,318 85,493
Finance debt 59,547 51,954
Capital employed 137,865 137,447
Less: Goodwill 14,888 12,472
Cash and cash equivalents 39,204 33,030
83,773 91,945
Average capital employed (excluding goodwill and cash and cash equivalents) 87,859 90,362
ROACE 14.2% 18.1%
(a) Finance costs, as reported in the Group income statement, were
$4,683 million (2023 $3,840 million). Interest expense which totals
$3,113 million (2023 $2,569 million) on a pre-tax basis is finance costs
excluding lease interest of $441 million (2023 $346 million), unwinding of
discount on provisions and other payables of $1,013 million (2023 $912
million) and other adjusting items related to finance costs of $116 million
(2023 $13 million). Interest expense included above is calculated on a
post-tax basis.
Top of page 31
Underlying operating expenditure* reconciliation
Underlying operating expenditure is a non-IFRS measure and a subset of
production and manufacturing expenses plus distribution and administration
expenses and excludes costs that are classified as adjusting items. It
represents the majority of the remaining expenses in these line items but
excludes certain costs that are variable, primarily with volumes (such as
freight costs). Management believes that underlying operating expenditure is a
performance measure that provides investors with useful information regarding
the company's financial performance because it considers these expenses to be
the principal operating and overhead expenses that are most directly under
their control although they also include certain foreign exchange and
commodity price effects.
Year Year
$ million 2024 2023
From group income statement
Production and manufacturing expenses 26,584 25,044
Distribution and administration expenses 16,417 16,772
43,001 41,816
Less certain variable costs:
Transportation and shipping costs 11,531 10,752
Environmental costs 2,972 3,169
Marketing and distribution costs 1,882 2,430
Commission, storage and handling costs 1,519 1,633
Other variable costs and non-cash costs 1,495 743
Certain variable costs 19,399 18,727
Operating expenditure* 23,602 23,089
Less certain adjusting items*:
Gulf of America oil spill 51 57
Environmental and related provisions 181 647
Restructuring, integration and rationalization costs 222 (37)
Fair value accounting effects - derivative instruments relating to the hybrid 221 (630)
bonds
Other certain adjusting items 601 419
Certain adjusting items 1,276 456
Underlying operating expenditure 22,326 22,633
Underlying operating expenditure reduction relative to 2023 (307)
Of which:
Structural cost reduction* (750)
Increase/(decrease) in underlying operating expenditure due to inflation, 443
exchange, portfolio changes and organic growth
Top of page 32
Reconciliation of customers & products RC profit before interest and tax
to underlying RC profit before interest and tax* to adjusted EBITDA* by
business
Fourth Third Fourth
quarter quarter quarter Year Year
$ million 2024 2024 2023 2024 2023
RC profit (loss) before interest and tax for customers & products (2,438) 23 (554) (1,560) 4,230
Less: Adjusting items* gains (charges) (2,136) (358) (1,357) (4,077) (2,183)
Underlying RC profit (loss) before interest and tax for customers & (302) 381 803 2,517 6,413
products
By business:
customers - convenience & mobility 527 897 882 2,584 2,644
Castrol - included in customers 220 216 213 831 730
products - refining & trading (829) (516) (79) (67) 3,769
Add back: Depreciation, depletion and amortization 1,111 963 942 3,957 3,548
By business:
customers - convenience & mobility 647 513 466 2,135 1,736
Castrol - included in customers 47 45 43 176 167
products - refining & trading 464 450 476 1,822 1,812
Adjusted EBITDA for customers & products 809 1,344 1,745 6,474 9,961
By business:
customers - convenience & mobility 1,174 1,410 1,348 4,719 4,380
Castrol - included in customers 267 261 256 1,007 897
products - refining & trading (365) (66) 397 1,755 5,581
Top of page 33
Realizations* and marker prices
Fourth Third Fourth
quarter quarter quarter Year Year
2024 2024 2023 2024 2023
Average realizations((a))
Liquids* ($/bbl)
US((b)) 59.66 63.31 67.66 62.78 63.81
Europe 73.64 75.45 81.02 78.60 80.70
Rest of World 73.72 80.79 87.27 79.63 81.78
bp average((b)) 65.88 70.68 76.50 70.41 72.69
Natural gas ($/mcf)
US 1.80 1.18 2.04 1.49 2.08
Europe 14.12 12.22 15.12 11.65 16.71
Rest of World 6.96 5.80 6.18 5.90 6.13
bp average 5.85 4.75 5.45 4.91 5.60
Total hydrocarbons* ($/boe)
US((b)) 41.74 42.18 45.68 42.43 44.29
Europe 76.28 74.03 83.21 75.16 86.36
Rest of World 50.18 47.57 50.74 47.92 49.23
bp average((b)) 48.44 46.81 50.90 47.28 49.84
Average oil marker prices ($/bbl)
Brent 74.73 80.34 84.34 80.76 82.64
West Texas Intermediate 70.42 75.28 78.60 75.87 77.67
Western Canadian Select 57.50 59.98 55.06 61.05 59.34
Alaska North Slope 74.28 78.95 84.23 80.24 82.36
Mars 69.98 74.20 78.35 75.60 77.19
Urals (NWE - cif) 64.51 70.10 72.48 68.91 61.79
Average natural gas marker prices
Henry Hub gas price((c)) ($/mmBtu) 2.79 2.15 2.88 2.27 2.74
UK Gas - National Balancing Point (p/therm) 106.79 81.77 98.68 83.57 98.93
(a) Based on sales of consolidated subsidiaries only - this excludes
equity-accounted entities.
(b) Fourth quarter and full year 2024 include an immaterial impact of
a prior period adjustment in the US region.
(c) Henry Hub First of Month Index.
Exchange rates
Fourth Third Fourth
quarter quarter quarter Year Year
2024 2024 2023 2024 2023
$/£ average rate for the period 1.28 1.30 1.24 1.28 1.24
$/£ period-end rate 1.25 1.34 1.28 1.25 1.28
$/€ average rate for the period 1.07 1.10 1.07 1.08 1.08
$/€ period-end rate 1.04 1.12 1.11 1.04 1.11
$/AUD average rate for the period 0.65 0.67 0.65 0.66 0.66
$/AUD period-end rate 0.62 0.69 0.69 0.62 0.69
Top of page 34
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 EBIDA is a non-IFRS measure and 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-employment benefits and taxation,
inventory holding gains or losses before tax, net adjusting items before
interest and tax, and taxation on an underlying RC basis, and adding back
depreciation, depletion and amortization (pre-tax) and exploration expenditure
written-off (net of adjusting items, pre-tax). bp believes that adjusted EBIDA
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. The nearest equivalent measure on an IFRS basis is profit or loss for
the period. A reconciliation of profit or loss for the period to adjusted
EBIDA is provided on page 29.
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 32 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-employment benefits and taxation, inventory holding
gains or losses before tax, net adjusting items before interest and tax, and
adding back depreciation, depletion and amortization (pre-tax) and exploration
expenditure written-off (net of adjusting items, pre-tax). The nearest
equivalent measure on an IFRS basis for the group is profit or loss for the
period. A reconciliation to IFRS information is provided on page 29 for the
group.
Adjusting items are items that bp discloses separately because it considers
such disclosures to be meaningful and relevant to investors. They are items
that management considers to be important to period-on-period analysis of the
group's results and are disclosed in order to enable investors to better
understand and evaluate the group's reported financial performance. Adjusting
items include gains and losses on the sale of businesses and fixed assets,
impairments, environmental and related provisions and charges, restructuring,
integration and rationalization costs, fair value accounting effects and costs
relating to the Gulf of America oil spill and other items. Adjusting items
within equity-accounted earnings are reported net of incremental income tax
reported by the equity-accounted entity. Adjusting items are used as a
reconciling adjustment to derive underlying RC profit or loss and related
underlying measures which are non-IFRS measures. An analysis of adjusting
items by segment and type is shown on page 27.
Blue hydrogen - Hydrogen made from natural gas in combination with carbon
capture and storage (CCS).
Capital expenditure is total cash capital expenditure as stated in the
condensed group cash flow statement. Capital expenditure for the operating
segments, gas & low carbon energy businesses and customers & products
businesses is presented on the same basis.
Cash balance point is defined as the implied Brent oil price 2021 real to
balance bp's sources and uses of cash assuming an average bp refining marker
margin around $11/bbl and Henry Hub at $3/mmBtu in 2021 real terms.
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 35
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 are classified as equity instruments and were
recorded in the balance sheet at their issuance 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.
Top of page 36
Glossary (continued)
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.
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
25.
We are unable to present reconciliations of forward-looking information for
net debt or gearing to finance debt and total equity, because without
unreasonable efforts, we are unable to forecast accurately certain adjusting
items required to present a meaningful comparable IFRS forward-looking
financial measure. These items include fair value asset (liability) of hedges
related to finance debt and cash and cash equivalents, that are difficult to
predict in advance in order to include in an IFRS estimate.
Gearing including leases and net debt including leases are non-IFRS measures.
Net debt including leases is calculated as net debt plus lease liabilities,
less the net amount of partner receivables and payables relating to leases
entered into on behalf of joint operations. Gearing including leases is
defined as the ratio of net debt including leases to the total of net debt
including leases plus total equity. bp believes these measures provide useful
information to investors as they enable investors to understand the impact of
the group's lease portfolio on net debt and gearing. The nearest equivalent
measures on an IFRS basis are finance debt and finance debt ratio. A
reconciliation of finance debt to net debt including leases is provided on
page 28.
Green hydrogen - Hydrogen produced by electrolysis of water using renewable
power.
Hydrocarbons - Liquids and natural gas. Natural gas is converted to oil
equivalent at 5.8 billion cubic feet = 1 million barrels.
Hydrogen pipeline - Hydrogen projects which have not been developed to final
investment decision (FID) but which have advanced to the concept development
stage.
Inorganic capital expenditure is a subset of capital expenditure on a cash
basis and a non-IFRS measure. Inorganic capital expenditure comprises
consideration in business combinations and certain other significant
investments made by the group. It is reported on a cash basis. bp believes
that this measure provides useful information as it allows investors to
understand how bp's management invests funds in projects which expand the
group's activities through acquisition. The nearest equivalent measure on an
IFRS basis is capital expenditure on a cash basis. Further information and a
reconciliation to IFRS information is provided on page 26.
Installed renewables capacity is bp's share of capacity for operating assets
owned by entities where bp has an equity share.
Inventory holding gains and losses are non-IFRS adjustments to our IFRS profit
(loss) and represent:
• the difference between the cost of sales calculated using the
replacement cost of inventory and the cost of sales calculated on the first-in
first-out (FIFO) method after adjusting for any changes in provisions where
the net realizable value of the inventory is lower than its cost. Under the
FIFO method, which we use for IFRS reporting of inventories other than for
trading inventories, the cost of inventory charged to the income statement is
based on its historical cost of purchase or manufacture, rather than its
replacement cost. In volatile energy markets, this can have a significant
distorting effect on reported income. The amounts disclosed as inventory
holding gains and losses represent the difference between the charge to the
income statement for inventory on a FIFO basis (after adjusting for any
related movements in net realizable value provisions) and the charge that
would have arisen based on the replacement cost of inventory. For this
purpose, the replacement cost of inventory is calculated using data from each
operation's production and manufacturing system, either on a monthly basis, or
separately for each transaction where the system allows this approach; and
• an adjustment relating to certain trading inventories that are
not price risk managed which relate to a minimum inventory volume that is
required to be held to maintain underlying business activities. This
adjustment represents the movement in fair value of the inventories due to
prices, on a grade by grade basis, during the period. This is calculated from
each operation's inventory management system on a monthly basis using the
discrete monthly movement in market prices for these inventories.
The amounts disclosed are not separately reflected in the financial statements
as a gain or loss. No adjustment is made in respect of the cost of inventories
held as part of a trading position and certain other temporary inventory
positions that are price risk-managed. See Replacement cost (RC) profit or
loss definition below.
Liquids - Liquids comprises crude oil, condensate and natural gas liquids. For
the oil production & operations segment, it also includes bitumen.
Top of page 37
Glossary (continued)
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.
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.
Operating expenditure is a non-IFRS measure and a subset of production and
manufacturing expenses plus distribution and administration expenses. It
represents the majority of the remaining expenses in these line items but
excludes certain costs that are variable, primarily with volumes (such as
freight costs). Other variable costs are included in purchases in the income
statement. Management believes that operating expenditure is a performance
measure that provides investors with useful information regarding the
company's financial performance because it considers these expenses to be the
principal operating and overhead expenses that are most directly under their
control although they also include certain adjusting items*, foreign exchange
and commodity price effects. The nearest IFRS measures are production and
manufacturing expenses and distributions and administration expenses. A
reconciliation of production and manufacturing expenses plus distribution and
administration expenses to operating expenditure is provided on page 31.
Organic capital expenditure is a non-IFRS measure. Organic capital expenditure
comprises capital expenditure on a cash basis less inorganic capital
expenditure. bp believes that this measure provides useful information as it
allows investors to understand how bp's management invests funds in developing
and maintaining the group's assets. The nearest equivalent measure on an IFRS
basis is capital expenditure on a cash basis and a reconciliation to IFRS
information is provided on page 26.
We are unable to present reconciliations of forward-looking information for
organic capital expenditure to total cash capital expenditure, because without
unreasonable efforts, we are unable to forecast accurately the adjusting item,
inorganic capital expenditure, that is difficult to predict in advance in
order to derive the nearest IFRS estimate.
Production-sharing agreement/contract (PSA/PSC) is an arrangement through
which an oil and gas company bears the risks and costs of exploration,
development and production. In return, if exploration is successful, the oil
company receives entitlement to variable physical volumes of hydrocarbons,
representing recovery of the costs incurred and a stipulated share of the
production remaining after such cost recovery.
Realizations are the result of dividing revenue generated from hydrocarbon
sales, excluding revenue generated from purchases made for resale and royalty
volumes, by revenue generating hydrocarbon production volumes. Revenue
generating hydrocarbon production reflects the bp share of production as
adjusted for any production which does not generate revenue. Adjustments may
include losses due to shrinkage, amounts consumed during processing, and
contractual or regulatory host committed volumes such as royalties. For the
gas & low carbon energy and oil production & operations segments,
realizations include transfers between businesses.
Refining availability represents Solomon Associates' operational availability
for bp-operated refineries, which is defined as the percentage of the year
that a unit is available for processing after subtracting the annualized time
lost due to turnaround activity and all 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.
Top of page 38
Glossary (continued)
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.
Reserves replacement ratio - the extent to which the year's production has
been replaced by proved reserves added to our reserve base. The ratio is
expressed in oil-equivalent terms and includes changes resulting from
discoveries, improved recovery and extensions and revisions to previous
estimates, but excludes changes resulting from acquisitions and disposals.
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.
Return on average capital employed (ROACE) is a non-IFRS measure and is
defined as underlying replacement cost profit, which is defined as profit or
loss attributable to bp shareholders adjusted for inventory holding gains and
losses, adjusting items and related taxation on inventory holding gains and
losses and adjusting items total taxation, after adding back non-controlling
interest and interest expense net of tax, divided by the average of the
beginning and ending balances of total equity plus finance debt, excluding
cash and cash equivalents and goodwill as presented on the group balance sheet
over the periods presented. Interest expense before tax is finance costs as
presented on the group income statement, excluding lease interest, the
unwinding of the discount on provisions and other payables and other adjusting
items reported in finance costs. bp believes it is helpful to disclose the
ROACE because this measure gives an indication of the company's capital
efficiency. The nearest IFRS measures of the numerator and denominator are
profit or loss for the period attributable to bp shareholders and total equity
respectively. The reconciliation of the numerator and denominator is provided
on page 30.
Solomon availability - See Refining availability definition.
Structural cost reduction is calculated as decreases in underlying operating
expenditure* (as defined on page 39) as a result of operational efficiencies,
divestments, workforce reductions and other cost saving measures that are
expected to be sustainable compared with 2023 levels. The total change between
periods in underlying operating expenditure will reflect both structural cost
reductions and other changes in spend, including market factors, such as
inflation and foreign exchange impacts, as well as changes in activity levels
and costs associated with new operations. Estimates of cumulative annual
structural cost reduction may be revised depending on whether cost reductions
realized in prior periods are determined to be sustainable compared with 2023
levels. Structural cost reductions are stewarded internally to support
management's oversight of spending over time.
bp believes this performance measure is useful in demonstrating how management
drives cost discipline across the entire organization, simplifying our
processes and portfolio and streamlining the way we work. The nearest IFRS
measures are production and manufacturing expenses and distributions and
administration expenses. A reconciliation of production and manufacturing
expenses plus distribution and administration expenses to underlying operating
expenditure is provided on page 31.
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.
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.
Top of page 39
Glossary (continued)
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 operating expenditure is a non-IFRS measure and a subset of
production and manufacturing expenses plus distribution and administration
expenses and excludes costs that are classified as adjusting items. It
represents the majority of the remaining expenses in these line items but
excludes certain costs that are variable, primarily with volumes (such as
freight costs). Other variable costs are included in purchases in the income
statement. Management believes that underlying operating expenditure is a
performance measure that provides investors with useful information regarding
the company's financial performance because it considers these expenses to be
the principal operating and overhead expenses that are most directly under
their control although they also include certain foreign exchange and
commodity price effects. The nearest IFRS measures are production and
manufacturing expenses and distributions and administration expenses. A
reconciliation of production and manufacturing expenses plus distribution and
administration expenses to underlying operating expenditure is provided on
page 31.
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 37) after excluding net adjusting items and related taxation. See page 27
for additional information on the adjusting items that are used to arrive at
underlying RC profit or loss in order to enable a full understanding of the
items and their financial impact.
Underlying RC profit or loss before interest and tax for the operating
segments or customers & products businesses is calculated as RC profit or
loss (as defined above) including profit or loss attributable to
non-controlling interests before interest and tax for the operating segments
and excluding net adjusting items for the respective operating segment or
business.
bp believes that underlying RC profit or loss is a useful measure for
investors because it is a measure closely tracked by management to evaluate
bp's operating performance and to make financial, strategic and operating
decisions and because it may help investors to understand and evaluate, in the
same manner as management, the underlying trends in bp's operational
performance on a comparable basis, period on period, by adjusting for the
effects of these adjusting items. The nearest equivalent measure on an IFRS
basis for the group is profit or loss attributable to bp shareholders. The
nearest equivalent measure on an IFRS basis for segments and businesses is RC
profit or loss before interest and taxation. A reconciliation to IFRS
information is provided on page 1 for the group and pages 6-14 for the
segments.
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 8. 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 America 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.
Top of page 40
Glossary (continued)
Working capital is movements in inventories and other current and non-current
assets and liabilities as reported in the condensed group cash flow statement.
Change in working capital adjusted for inventory holding gains/losses, fair
value accounting effects relating to subsidiaries and other adjusting items is
a non-IFRS measure. It is calculated by adjusting for inventory holding
gains/losses reported in the period; fair value accounting effects relating to
subsidiaries reported within adjusting items for the period; and other
adjusting items relating to the non-cash movement of US emissions obligations
carried as a provision that will be settled by allowances held as inventory.
This represents what would have been reported as movements in inventories and
other current and non-current assets and liabilities, if the starting point in
determining net cash provided by operating activities had been underlying
replacement cost profit rather than profit for the period. The nearest
equivalent measure on an IFRS basis for this is movements in inventories and
other current and non-current assets and liabilities.
bp utilizes various arrangements in order to manage its working capital
including discounting of receivables and, in the supply and trading business,
the active management of supplier payment terms, inventory and collateral.
Trade marks
Trade marks of the bp group appear throughout this announcement. They include:
bp, Amoco, Aral, ampm, bp pulse, Castrol, PETRO, TA, and Thorntons
Top of page 41
Cautionary statement
In order to utilize the 'safe harbor' provisions of the United States Private
Securities Litigation Reform Act of 1995 (the 'PSLRA') and the general
doctrine of cautionary statements, bp is providing the following cautionary
statement:
The discussion in this results announcement contains certain forecasts,
projections and forward-looking statements - that is, statements related to
future, not past events and circumstances - with respect to the financial
condition, results of operations and businesses of bp and certain of the plans
and objectives of bp with respect to these items. These statements may
generally, but not always, be identified by the use of words such as 'will',
'expects', 'is expected to', 'aims', 'should', 'may', 'objective', 'is likely
to', 'intends', 'believes', 'anticipates', 'plans', 'we see' or similar
expressions.
In particular, the following, among other statements, are all forward looking
in nature: plans, expectations and assumptions regarding oil and gas demand,
supply, prices or volatility; expectations regarding reserves; expectations
regarding production and volumes; expectations regarding bp's customers &
products business; expectations regarding margins; expectations regarding
underlying effective tax rate; expectations regarding turnaround and
maintenance activity; expectations regarding financial performance, results of
operations, finance debt acquired in the fourth quarter, and cash flows;
expectations regarding cash cost savings delivery; expectations regarding
future project start-ups; expectations regarding bp's capital market update;
expectations regarding shareholders returns; expectations regarding bp's
convenience businesses; bp's financial guidance, including expectations for
2025 share buybacks and capital expenditure; bp's plans and expectations
regarding the amount and timing of share buybacks and dividends, including
factors taken into account by the board; plans and expectations regarding bp's
credit rating, including in respect of maintaining a strong investment grade
credit rating and targeting further improvements in credit metrics; plans and
expectations regarding the allocation of surplus cash flow to share buybacks;
plans and expectations regarding the sale of bp's mobility and convenience and
bp pulse business in Netherlands; plans and expectations regarding the sale of
bp's Ruhr Oel GmbH - BP Gelsenkirchen operation in Germany; plans and
expectations regarding the sale of bp's US onshore wind energy business; plans
and expectations regarding development of hydrogen, bp's electric vehicle (EV)
charging infrastructure and RNG landfill plants; plans and expectations
related to bp's transition growth engines, including expected capital
expenditures; plans and expectations regarding the amount or timing of
payments related to divestment and other proceeds, and the timing, quantum and
nature of certain acquisitions and divestments; expectations regarding the
timing and amount of future payments relating to the Gulf of America oil
spill; plans and expectations regarding bp's guidance for 2025 and the first
quarter of 2025, including expected production, growth, margins, businesses
& corporate underlying annual charge, underlying ETR, timing and amount of
divestment and other proceeds, depreciation, depletion and amortization; and
plans and expectations regarding bp-operated projects, ventures, investments,
joint ventures, partnerships and agreements with commercial entities and other
third party partners, including but not limited to ADNOC, JERA Co., Inc, ONGC
and the Republic of Iraq.
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 America 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
or any other relevant persons may impact bp's ability to sell its interests in
Rosneft, or the price for which bp could sell such interests; the actions of
contractors; natural disasters and adverse weather conditions; changes in
public expectations and other changes to business conditions; wars and acts of
terrorism; cyber-attacks or sabotage; and those factors discussed under
"Principal risks and uncertainties" in bp's Report on Form 6-K regarding
results for the six-month period ended 30 June 2024 as filed with the US
Securities and Exchange Commission (the "SEC") as well as those factors
discussed under "Risk factors" in bp's Annual Report and Form 20-F for fiscal
year 2023 as filed with the SEC.
Top of page 42
Contacts
London Houston
Press Office David Nicholas Paul Takahashi
+44 (0) 7831 095541 +1 713 903 9729
Investor Relations Craig Marshall Graham Collins
bp.com/investors +44 (0) 203 401 5592 +1 832 753 5116
BP p.l.c.'s LEI Code 213800LH1BZH3D16G760
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