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EQS Post-admission Duties announcement: BP p.l.c.
/ 4Q24 SEA Part 1 of 1
BP p.l.c.: Release of a capital market information
11.02.2025 / 08:00 CET/CEST
Dissemination of a Post-admission Duties announcement transmitted by EQS News - a service of EQS Group.
The issuer is solely responsible for the content of this announcement.
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| FOR IMMEDIATE RELEASE |
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| London 11 February 2025 |
| BP p.l.c. Group results |
| Fourth quarter and full year 2024 |
| 2024: Laying the foundation for growth |
| Financial summary |
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Fourth |
Third |
Fourth |
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quarter |
quarter |
quarter |
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Year |
Year |
| $ million |
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2024 |
2024 |
2023 |
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2024 |
2023 |
| Profit (loss) for the period attributable to bp shareholders |
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(1,959) |
206 |
371 |
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381 |
15,239 |
| Inventory holding (gains) losses*, net of tax |
|
7 |
906 |
1,155 |
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369 |
944 |
| Replacement cost (RC) profit (loss)* |
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(1,952) |
1,112 |
1,526 |
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750 |
16,183 |
| Net (favourable) adverse impact of adjusting items*, net of tax |
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3,121 |
1,155 |
1,465 |
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8,165 |
(2,347) |
| Underlying RC profit* |
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1,169 |
2,267 |
2,991 |
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8,915 |
13,836 |
| Operating cash flow* |
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7,427 |
6,761 |
9,377 |
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27,297 |
32,039 |
| Capital expenditure* |
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(3,726) |
(4,542) |
(4,711) |
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(16,237) |
(16,253) |
| Divestment and other proceeds(a) |
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2,761 |
290 |
300 |
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4,224 |
1,843 |
| Net issue (repurchase) of shares(b) |
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(1,625) |
(2,001) |
(1,350) |
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(7,127) |
(7,918) |
| Net debt*(c) |
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22,997 |
24,268 |
20,912 |
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22,997 |
20,912 |
| Return on average capital employed (ROACE)* (%) |
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14.2% |
18.1% |
| Adjusted EBITDA* |
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8,413 |
9,654 |
10,568 |
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38,012 |
43,710 |
| Adjusted EBIDA* |
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31,161 |
34,345 |
| Announced dividend per ordinary share (cents per share) |
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8.000 |
8.000 |
7.270 |
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31.270 |
28.420 |
| Underlying RC profit per ordinary share* (cents) |
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7.36 |
13.89 |
17.77 |
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54.40 |
79.69 |
| Underlying RC profit per ADS* (dollars) |
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0.44 |
0.83 |
1.07 |
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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.
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Murray Auchincloss
Chief executive officer |
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- Divestment proceeds are disposal proceeds as per the condensed group cash flow statement. See page 3 for more information on other proceeds.
- 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).
- 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. |
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| Kate Thomson Chief financial officer |
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Highlights |
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4Q24 underlying replacement cost (RC) profit* $1.2 billion |
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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%. |
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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. |
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Segment results |
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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. |
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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. |
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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. |
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Operating cash flow* $7.4 billion and net debt* $23.0 billion |
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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. |
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Financial frame |
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A resilient dividend is bp’s first priority within its disciplined financial frame, underpinned by a cash balance point* of around $40 per barrel Brent, $11 per barrel RMM and $3 per mmBtu Henry Hub (all 2021 real). For the fourth quarter, bp has announced a dividend per ordinary share of 8 cents. |
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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. |
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bp continues to invest with discipline and a returns focused approach in our transition growth* engines and in our oil, gas and refining businesses. |
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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*. |
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In setting the dividend per ordinary share and buyback each quarter, the board will continue to take into account factors including the cumulative level of and outlook for surplus cash flow*, the cash balance point and maintaining a strong investment grade credit rating. |
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- 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. |
“For a full version of this announcement please click on the link below to open a PDF version of the announcement”
http://www.rns-pdf.londonstockexchange.com/rns/5929W_1-2025-2-10.pdf
Contacts
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London |
Houston |
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| Press Office |
David Nicholas |
Paul Takahashi |
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+44 (0) 7831 095541 |
+1 713 903 9729 |
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| 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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11.02.2025 CET/CEST The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
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