BP PLC: 1Q24
EQS-News: BP p.l.c. / Key word(s): Quarterly / Interim Statement
BP PLC: 1Q24
07.05.2024 / 08:10 CET/CEST
The issuer is solely responsible for the content of this announcement.*Top of page 1*
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FOR IMMEDIATE RELEASE * *
London 7 May 2024
*BP p.l.c. Group results*
First quarter 2024
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“For a printer friendly version of this announcement please click on the link below to open a PDF version of the announcement”
http://www.rns-pdf.londonstockexchange.com/rns/3361N_1-2024-5-6.pdf
Resilient performance, committed distributions
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*Financial summary* *First* Fourth First *quarter* quarter quarter
$ million *2024* 2023 2023
Profit for the period attributable to bp shareholders *2,263* 371 8,218
Inventory holding (gains) losses*, net of tax *(657)* 1,155 452
Replacement cost (RC) profit* *1,606* 1,526 8,670
Net (favourable) adverse impact of adjusting items*, net of tax *1,117* 1,465 (3,707)
Underlying RC profit* *2,723* 2,991 4,963
Operating cash flow* *5,009* 9,377 7,622
Capital expenditure* *(4,278)* (4,711) (3,625)
Divestment and other proceeds[(a)] *413* 300 800
Net issue (repurchase) of shares *(1,750)* (1,350) (2,448)
Net debt*[(b)] *24,015* 20,912 21,232
Adjusted EBITDA* *10,306* 10,568 13,066
Announced dividend per ordinary share (cents per share) *7.270* 7.270 6.610
Underlying RC profit per ordinary share* (cents) *16.24* 17.77 27.74
Underlying RC profit per ADS* (dollars) *0.97* 1.07 1.66
*Highlights*
· *Resilient financial and operational performance**: Adjusted EBITDA $10.3 billion; underlying RC profit $2.7 billion; upstream* production grew +2.1% vs 1Q23; start up of new Azeri Central East (ACE) platform in Caspian Sea*
· *Growing shareholder distributions**: 1Q24 $1.75 billion share buyback announced as part of our $3.5 billion commitment for the first half of 2024; Dividend per ordinary share of 7.270 cents *
· *Focus on delivering our six priorities**: announcement to simplify organizational structure; target to deliver at least $2 billion of cash cost* savings by the end of 2026 *
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We've delivered another resilient quarter financially and continued to make progress on our strategy. Oil production was up and our ACE platform in the Caspian is now producing. We are simplifying and reducing complexity across bp and plan to deliver at least $2 billion of cash cost savings by the end of 2026 through high grading our portfolio, digital transformation, supply chain efficiencies and global capability hubs.
*Murray Auchincloss *
Chief executive officer
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1. Divestment proceeds are disposal proceeds as per the condensed group cash flow statement. There were no other proceeds for all periods stated.
2. See Note 9 for more information.
RC profit, underlying RC profit, net debt, adjusted EBITDA, underlying RC profit per ordinary share and underlying RC profit per ADS are non-IFRS measures. Inventory holding (gains) losses and adjusting items are non-IFRS adjustments.
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** For items marked with an asterisk throughout this document, definitions are provided in the Glossary on page 30.*
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bp reported solid financial performance in the first quarter with adjusted EBITDA* of $10.3 billion and underlying replacement cost profit of $2.7 billion. Our financial frame is unchanged, and we are delivering competitive shareholder distributions, announcing a $1.75 billion share buyback for the first quarter as part of our commitment of $3.5 billion for the first half of 2024.
*Kate Thomson *Chief financial officer
*Highlights* *1Q24 underlying replacement cost (RC) profit* $2.7 billion* ·
Underlying RC profit for the quarter was $2.7 billion, compared with $3.0 billion for the previous quarter. Compared with the fourth quarter 2023, the result reflects lower oil and gas realizations, the impacts of the Whiting refinery outage and significantly weaker fuels margin, partially offset by significantly lower level of turnaround activity, a strong oil trading result and higher realized refining margins. The underlying effective tax rate (ETR)* in the quarter was 43%. ·
Reported profit for the quarter was $2.3 billion, compared with $0.4 billion for the fourth quarter 2023. The reported result for the first quarter is adjusted for inventory holding gains* of $0.7 billion (net of tax) and a net adverse impact of adjusting items* of $1.1 billion (net of tax) to derive the underlying RC profit. Adjusting items pre-tax include net impairment charges of $0.6 billion, largely as a result of regulatory and portfolio changes, and adverse fair value accounting effects* of $0.2 billion. *Segment results* ·
Gas & low carbon energy: The RC profit before interest and tax for the first quarter 2024 was $1.0 billion, compared with $2.2 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $0.6 billion, the underlying RC profit before interest and tax* for the first quarter was $1.7 billion, compared with $1.8 billion in the fourth quarter 2023. The first quarter underlying result reflects lower realizations and foreign exchange losses on Egyptian pound balances, partially offset by lower exploration write-offs. Gas marketing and trading was strong following a strong result in the fourth quarter. ·
Oil production & operations: The RC profit before interest and tax for the first quarter 2024 was $3.1 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 $0.1 billion, the underlying RC profit before interest and tax for the first quarter was $3.1 billion, compared with $3.5 billion in the fourth quarter 2023. The first quarter underlying result reflects lower realizations, partially offset by higher production. ·
Customers & products: The RC profit before interest and tax for the first quarter 2024 was $1.0 billion, compared with a loss of $0.6 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $0.3 billion, the underlying RC profit before interest and tax for the first quarter was $1.3 billion, compared with $0.8 billion in the fourth quarter 2023. The customers first quarter underlying result was lower by $0.5 billion, reflecting significantly weaker fuels margin, seasonally lower volumes, and the absence of one-off positive effects that benefited the prior quarter, partly offset by lower costs. The products first quarter underlying result was higher by $1.0 billion, reflecting higher realized refining margins, a significantly lower level of turnaround activity and higher commercial optimization, partially offset by the impacts of the Whiting refinery outage. The oil trading contribution was strong following a weak result in the fourth quarter. *Operating cash flow* $5.0 billion* ·
Operating cash flow in the quarter of $5.0 billion includes a working capital* build (after adjusting for inventory holding gains, fair value accounting effects and other adjusting items) of $2.4 billion, reflecting seasonal inventory effects, timing of various payments and the price environment. (see page 27). *Delivering the next wave of efficiencies - at least $2 billion cash cost* savings* ·
bp has a target to deliver at least $2 billion of cash cost savings by the end of 2026 relative to 2023. The reduction is expected to result from cost-saving measures across bp’s business underpinned by high-grading the portfolio, digital transformation, supply chain efficiencies and global capability hubs. Some of these cost savings may have associated restructuring charges. *Further $1.75 billion share buyback announced for 1Q24; $3.5 billion for first half 2024 unchanged* ·
The $1.75 billion share buyback programme announced with the fourth quarter results was completed on 3 May 2024. ·
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 first quarter, bp has announced a dividend per ordinary share of 7.270 cents. ·
bp is committed to maintaining a strong investment grade credit rating. Through the cycle, we are targeting to further improve our credit metrics within an 'A' grade credit range. ·
bp continues to invest with discipline and a returns focused approach in our transition growth* engines and in our oil, gas and refining businesses. For 2024 and 2025 we expect capital expenditure of around $16 billion per annum. ·
In setting the dividend per ordinary share and buyback each quarter, the board will continue to take into account factors including the cumulative level of and outlook for surplus cash flow*, the cash balance point and maintaining a strong investment grade credit rating.
The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 36.
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*Financial results *
In addition to the highlights on page 2:
· Profit attributable to bp shareholders in the first quarter was $2.3 billion, compared with a profit of $8.2 billion in the same period of 2023.
· After adjusting profit attributable to bp shareholders for inventory holding gains* and net impact of adjusting items*, underlying replacement cost (RC) profit* for the first quarter was $2.7 billion, compared with $5.0 billion for the same period of 2023. This reduction in underlying RC profit for the first quarter mainly reflects lower realizations, lower industry refining margins, a strong gas marketing and trading result compared with an exceptional result in the first quarter in 2023 and the impacts of the Whiting refinery outage.
· Adjusting items in the first quarter had a net adverse pre-tax impact of $1.2 billion, compared with a net favourable pre-tax impact of $3.9 billion in the same period of 2023.
· Adjusting items for the first quarter of 2024 include an adverse impact of pre-tax fair value accounting effects*, relative to management's internal measure of performance, of $0.2 billion, compared with a favourable pre-tax impact of $4.3 billion in the same period of 2023. This difference is primarily due to a small decline in the forward price of LNG over the quarter compared to a large decline in this price during the first quarter of 2023.
· The effective tax rate (ETR) on RC profit or loss* for the first quarter was 54%, compared with 29% for the same period in 2023. Excluding adjusting items, the underlying ETR* for the first quarter was 43%, compared with 39% for the same period a year ago. The higher underlying ETR for the first quarter reflects foreign exchange impacts which are not tax deductible. ETR on RC profit or loss and underlying ETR are non-IFRS measures.
· Operating cash flow* for the first quarter was $5.0 billion, compared with $7.6 billion for the same period in 2023, reflecting the difference in the underlying RC profit for the respective periods.
· Capital expenditure* in the first quarter was $4.3 billion, compared with $3.6 billion in the same period of 2023.
· Total divestment and other proceeds for the first quarter were $0.4 billion, compared with $0.8 billion for the same period in 2023. There were no other proceeds for both periods.
· At the end of the first quarter, net debt* was $24.0 billion, compared with $20.9 billion at the end of the fourth quarter 2023 and $21.2 billion at the end of the first quarter 2023. The increase in the net debt is mainly attributable to a working capital* build.
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Analysis of RC profit (loss) before interest and tax and reconciliation to profit (loss) for the period
*First* *Fourth* *First* *quarter* *quarter* *quarter*
*$ million* *2024* *2023* *2023*
*RC profit (loss) before interest and tax*
gas & low carbon energy *1,036* 2,169 7,347
oil production & operations *3,060* 1,879 3,317
customers & products *988* (554) 2,680
other businesses & corporate *(300)* (16) (90)
Consolidation adjustment – UPII* *32* 95 (22)
RC profit before interest and tax *4,816* 3,573 13,232
Finance costs and net finance expense relating to pensions and other post-retirement benefits *(1,034)* (977) (785)
Taxation on a RC basis *(2,030)* (1,005) (3,573)
Non-controlling interests *(146)* (65) (204)
RC profit attributable to bp shareholders* *1,606* 1,526 8,670
Inventory holding gains (losses)* *851* (1,497) (600)
Taxation (charge) credit on inventory holding gains and losses *(194)* 342 148
Profit for the period attributable to bp shareholders *2,263* 371 8,218
Analysis of underlying RC profit (loss) before interest and tax
*First* *Fourth* *First* *quarter* *quarter* *quarter*
*$ million* *2024* *2023* *2023*
*Underlying RC profit (loss) before interest and tax*
gas & low carbon energy *1,658* 1,777 3,456
oil production & operations *3,125* 3,549 3,319
customers & products *1,289* 803 2,759
other businesses & corporate *(154)* (97) (296)
Consolidation adjustment – UPII *32* 95 (22)
Underlying RC profit before interest and tax *5,950* 6,127 9,216
Finance costs and net finance expense relating to pensions and other post-retirement benefits *(942)* (891) (681)
Taxation on an underlying RC basis *(2,139)* (2,180) (3,368)
Non-controlling interests *(146)* (65) (204)
Underlying RC profit attributable to bp shareholders* *2,723* 2,991 4,963
Reconciliations of underlying RC profit attributable to bp shareholders to the nearest equivalent IFRS measure are provided on page 1 for the group and on pages 6-14 for the segments.
Operating Metrics
*Operating metrics* *First quarter 2024* vs First quarter 2023
*Tier 1 and tier 2 process safety events** *14* +5
*Reported recordable injury frequency** *0.218* +8.9%
*upstream* production**[(a)]** (mboe/d)* *2,378* +2.1%
*upstream unit production costs***[(b) ]**($/boe)* *6.00* +4.7%
*bp-operated upstream plant reliability** *94.9%* -0.6
*bp-operated refining availability***[(a)]* *90.4%* -5.7
1. 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.
1. Mainly reflecting portfolio mix.
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*Outlook & Guidance *
*2Q 2024 guidance*
· Looking ahead, bp expects second quarter 2024 reported upstream* production to be slightly lower compared with first-quarter 2024.
· In its customers business, bp expects seasonally higher volumes and fuels margin to remain sensitive to movements in the cost of supply.
· In products, bp expects realized margins to be impacted by narrower North American heavy crude oil differentials, and to remain sensitive to relative movements in product cracks. In addition, bp expects the absence of the first quarter plant-wide power outage at the Whiting refinery to be partly offset by a higher level of turnaround activity.
*2024 guidance*
In addition to the guidance on page 2:
· bp continues to expect both reported and underlying upstream production* to be slightly higher compared with 2023. Within this, bp continues to expect underlying production from oil production & operations to be higher and production from gas & low carbon energy to be lower.
· In its customers business, bp continues to expect growth from convenience, including a full year contribution from TravelCenters of America; a stronger contribution from Castrol underpinned by volume growth in focus markets; and continued margin growth from bp pulse driven by higher energy sold. In addition, bp continues to expect fuels margin to remain sensitive to the cost of supply.
· In products, bp continues to expect a lower level of industry refining margins, with realized margins impacted by narrower North American heavy crude oil differentials. bp continues to expect refinery turnaround activity to have a similar impact on both throughput and financial performance compared to 2023, with phasing of activity in 2024 heavily weighted towards the second half.
· bp continues to expect the other businesses & corporate underlying annual charge to be around $1.0 billion for 2024. The charge may vary from quarter to quarter.
· bp continues to expect the depreciation, depletion and amortization to be slightly higher than 2023.
· bp continues to expect the underlying ETR* for 2024 to be around 40% but it is sensitive to the impact that volatility in the current price environment may have on the geographical mix of the group’s profits and losses.
· bp continues to expect capital expenditure* for 2024 to be around $16 billion, but now expects the phasing to be split broadly evenly between the first half and the second half.
· bp continues to expect divestment and other proceeds of $2-3 billion in 2024, weighted towards the second half. Having realized $18.2 billion of divestment and other proceeds since the second quarter of 2020, bp continues to expect to reach $25 billion of divestment and other proceeds between the second half of 2020 and 2025.
· bp continues to expect Gulf of Mexico oil spill payments for the year to be around $1.2 billion pre-tax including $1.1 billion pre-tax paid during the second quarter.
The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 36.
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gas & low carbon energy*
*Financial results*
· The replacement cost (RC) profit before interest and tax for the first quarter was $1,036 million, compared with $7,347 million for the same period in 2023. The first quarter is adjusted by an adverse impact of net adjusting items* of $622 million, compared with a favourable impact of net adjusting items of $3,891 million for the same period in 2023. Adjusting items include impacts of fair value accounting effects*, relative to management's internal measure of performance, which are a favourable impact of $113 million for the first quarter in 2024 and a favourable impact of $3,934 million for the same period in 2023. Under IFRS, reported earnings include the mark-to-market value of the hedges used to risk-manage LNG contracts, but not of the LNG contracts themselves. The underlying result includes the mark-to-market value of the hedges but also recognizes changes in value of the LNG contracts being risk managed.
· After adjusting RC profit before interest and tax for adjusting items, the underlying RC profit before interest and tax* for the first quarter was $1,658 million, compared with $3,456 million for the same period in 2023.
· The underlying RC profit for the first quarter, compared with the same period in 2023, reflects lower realizations, foreign exchange losses on Egyptian pound balances, higher exploration write-offs, and a strong gas marketing and trading result compared with an exceptional result in the first quarter in 2023.
*Operational update *
· Reported production for the quarter was 914mboe/d, 5.7% lower than the same period in 2023. Underlying production* was 3.5% lower, mainly due to base decline partially offset by major projects* which started up in 2023. Reported production includes the effect of the disposal of the Algeria business in 2023.
· Renewables pipeline* at the end of the quarter was 58.5GW (bp net), including 20.4GW bp net share of Lightsource bp's (LSbp's) pipeline. The renewables pipeline increased by 0.2GW net during the quarter. In addition, there is over 9.5GW (bp net) of early stage opportunities in LSbp's hopper.
*Strategic progress*
*gas*
· On 14 February, ADNOC and bp announced that they have agreed to form a new joint venture (JV) in Egypt. The JV (51% bp and 49% ADNOC) will combine the pair’s deep technical capabilities and proven track records as it aims to grow a highly competitive gas portfolio. As part of the agreement, bp will contribute its interests in three development concessions, as well as exploration agreements, in Egypt to the new JV. ADNOC will make a proportionate cash contribution which can be used for future growth opportunities. Subject to regulatory approvals and clearances, the formation of the JV is expected to complete during the second half of 2024.
· On 15 February, the floating liquefied natural gas (FLNG) vessel that is a core component of the Greater Tortue Ahmeyim (GTA) LNG project arrived at its destination on the Mauritania and Senegal maritime border. GTA Phase 1 is operated by bp (56%) with partners Kosmos Energy, SociétéMauritaniennedesHydrocarbures andSociété desPétrolesdu Sénégal.
· In April bp and the Korea Gas Corporation signed an agreement for bp to supply up to 9.8 million tonnes of LNG over an 11 year period starting in 2026 from bp's global LNG portfolio.
*low carbon energy*
· Following the announcement in January that bp and Equinor had signed an agreement under which they would restructure their investments in their US offshore wind projects, on 4 April, bp announced it has received all the necessary regulatory approvals and it is now 100% owner of the Beacon US offshore wind projects and Equinor the Empire projects.
· On March 15, our UK joint ventures Net Zero Teesside Power (bp 75%, Equinor 25%) and the Northern Endurance Partnership (bp 45%, Equinor 45%, Total Energies 10%) announced the selection of contractors for engineering, procurement, and construction contracts with a combined value of around $5 billion. The final award of contracts is subject to the receipt of relevant regulatory clearances and positive Final Investment Decisions (FID) by the projects and the UK government.
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gas & low carbon energy (continued)
*First* *Fourth* *First* *quarter* *quarter* *quarter*
*$ million* *2024* *2023* *2023*
Profit before interest and tax *1,036* 2,169 7,348
Inventory holding (gains) losses* *—* — (1)
RC profit before interest and tax *1,036* 2,169 7,347
Net (favourable) adverse impact of adjusting items *622* (392) (3,891)
Underlying RC profit before interest and tax *1,658* 1,777 3,456
Taxation on an underlying RC basis *(518)* (746) (961)
Underlying RC profit before interest *1,140* 1,031 2,495
*First* *Fourth* *First* *quarter* *quarter* *quarter*
*$ million* *2024* *2023* *2023*
*Depreciation, depletion and amortization*
Total depreciation, depletion and amortization *1,293* 1,290 1,440
*Exploration write-offs*
Exploration write-offs *203* 349 (1)
*Adjusted EBITDA**
Total adjusted EBITDA *3,154* 3,416 4,895
*Capital expenditure**
gas *639* 848 647
low carbon energy *659* 478 366
Total capital expenditure *1,298* 1,326 1,013
*First* *Fourth* *First* *quarter* *quarter* *quarter* *2024* *2023* *2023*
*Production *(net of royalties)[(a)]
Liquids* (mb/d) *102* 99 114
Natural gas (mmcf/d) *4,708* 4,637 4,962
Total hydrocarbons* (mboe/d) *914* 899 969
*Average realizations**[(b)]
Liquids ($/bbl) *76.92* 78.87 79.44
Natural gas ($/mcf) *5.45* 6.18 7.41
Total hydrocarbons* ($/boe) *36.64* 40.17 46.95
1. Includes bp’s share of production of equity-accounted entities in the gas & low carbon energy segment.
2. Realizations are based on sales by consolidated subsidiaries only – this excludes equity-accounted entities.
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gas & low carbon energy (continued)
*31 March* *31 December* *31 March*
*low carbon energy**[(c)]* *2024* *2023* *2023*
*Renewables (bp net, GW)*
Installed renewables capacity* *2.7* 2.7 2.2
Developed renewables to FID* *6.2* 6.2 5.9
Renewables pipeline *58.5* 58.3 38.8
of which by geographical area:
Renewables pipeline – Americas *18.1* 18.8 17.5
Renewables pipeline – Asia Pacific *21.3* 21.3 12.2
Renewables pipeline – Europe *15.7* 14.6 8.9
Renewables pipeline – Other *3.5* 3.5 0.1
of which by technology:
Renewables pipeline – offshore wind *9.6* 9.3 5.3
Renewables pipeline – onshore wind *12.7* 12.7 6.3
Renewables pipeline – solar *36.2* 36.3 27.2
*Total Developed renewables to FID and Renewables pipeline* *64.7* 64.5 44.7
1. Because of rounding, some totals may not agree exactly with the sum of their component parts.
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oil production & operations
*Financial results*
· The replacement cost (RC) profit before interest and tax for the first quarter was $3,060 million, compared with $3,317 million for the same period in 2023. The first quarter is adjusted by an adverse impact of net adjusting items* of $65 million, compared with an adverse impact of net adjusting items of $2 million for the same period in 2023.
· After adjusting RC profit before interest and tax for adjusting items, the underlying RC profit before interest and tax* for the first quarter was $3,125 million, compared with $3,319 million for the same period in 2023.
· The underlying RC profit for the first quarter, compared with the same period in 2023, primarily reflects lower realizations and increased depreciation charges partly offset by increased volume.
*Operational update*
· Reported production for the quarter was 1,463mboe/d, 7.6% higher than the first quarter of 2023. Underlying production* for the quarter was 7.4% higher compared with the first quarter of 2023 reflecting bpx energy performance and major projects* partly offset by base performance.
*Strategic Progress*
· On 16 April, bp, as operator of the Azeri-Chirag-Gunashli (ACG) project, announced the start-up of oil production from the new Azeri Central East (ACE) platform as part of the ACG field development in the Azerbaijan sector of the Caspian Sea, which is the first remotely operated offshore platform in the Caspian (bp share 30.37%).
· In April bpx energy successfully brought online 'Checkmate', its third central processing facility in the Permian Basin. It is a low-emission, electrified facility that will enable further production growth for bpx energy in the basin (bp 100% operator).
· Final investment decision taken on the Atlantis Drill Center Expansion which will be a two well tie back to the Atlantis facility in the Gulf of Mexico (bp share 56%).
· bp has been awarded a licence for two blocks in the central North Sea, consolidating our position around our Eastern Trough Area Project (ETAP) central processing facility. The award aligns with our strategic focus on oil and gas opportunities that can be developed through established production facilities.
· Aker BP was awarded interest in 27 licences (of which it will operate 17) in the North Sea and Norwegian Sea (bp interest in Aker BP 15.9%).
· In May Azule Energy announced it had agreed to acquire a 42.5% interest in exploration block 2914A (PEL85), Orange Basin, offshore Namibia. Completion of the deal is subject to customary third-party approvals from the Namibian authorities and JV parties. Azule Energy is a 50:50 joint venture between bp and Eni, based in Angola.
*First* *Fourth* *First* *quarter* *quarter* *quarter*
*$ million* *2024* *2023* *2023*
Profit before interest and tax *3,059* 1,879 3,318
Inventory holding (gains) losses* *1* — (1)
RC profit before interest and tax *3,060* 1,879 3,317
Net (favourable) adverse impact of adjusting items *65* 1,670 2
Underlying RC profit before interest and tax *3,125* 3,549 3,319
Taxation on an underlying RC basis *(1,509)* (1,433) (1,766)
Underlying RC profit before interest *1,616* 2,116 1,553
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oil production & operations (continued)
*First* *Fourth* *First* *quarter* *quarter* *quarter*
*$ million* *2024* *2023* *2023*
*Depreciation, depletion and amortization*
Total depreciation, depletion and amortization *1,657* 1,563 1,327
*Exploration write-offs*
Exploration write-offs *3* 32 51
*Adjusted EBITDA**
Total adjusted EBITDA *4,785* 5,144 4,697
*Capital expenditure**
Total capital expenditure *1,776* 1,636 1,520
*First* *Fourth* *First* *quarter* *quarter* *quarter* *2024* *2023* *2023*
*Production *(net of royalties)[(a)]
Liquids* (mb/d) *1,056* 1,024 1,005
Natural gas (mmcf/d) *2,364* 2,305 2,060
Total hydrocarbons* (mboe/d) *1,463* 1,421 1,360
*Average realizations**[(b)]
Liquids ($/bbl) *70.53* 76.22 71.63
Natural gas ($/mcf) *2.66* 3.65 6.57
Total hydrocarbons* ($/boe) *54.11* 59.69 62.36
1. Includes bp’s share of production of equity-accounted entities in the oil production & operations segment.
2. Realizations are based on sales by consolidated subsidiaries only – this excludes equity-accounted entities.
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customers & products
*Financial results*
· The replacement cost (RC) profit before interest and tax for the first quarter* *was $988 million, compared with a profit of $2,680 million for the same period in 2023. The first quarter is adjusted by an adverse impact of net adjusting items* of $301 million, compared with an adverse impact of net adjusting items of $79 million for the same period 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 $144 million for the quarter in 2024, compared with a favourable impact of $77 million for the same period in 2023.
· After adjusting RC profit before interest and tax for adjusting items, the underlying RC profit before interest and tax* for the first quarter was $1,289 million, compared with $2,759 million for the same period in 2023.
· The customers & products result for the first quarter was significantly lower than the same period in 2023, primarily reflecting a lower refining result.
· *customers** – the convenience and mobility result, excluding Castrol, for the first quarter was lower than the same period in 2023. The first quarter result benefited from higher retail fuels margin and continued strong growth in convenience, more than offset by a weaker performance in midstream and biofuels. The contribution of TravelCenters of America was impacted by the ongoing US freight recession.*
Castrol result for the first quarter was higher compared with the same period in 2023, primarily due to higher margins partly offset by adverse foreign exchange impacts.
· *products* – the products result for the first quarter was significantly lower compared with the same period in 2023. In refining, the result for the first quarter reflected lower industry refining margins, with realized margins impacted by narrower North American heavy crude oil differentials. In addition, the first quarter was significantly impacted by the plant-wide power outage at the Whiting refinery. The oil trading contribution for the first quarter was strong, consistent with the result in the same period last year.
*Operational update** *
· bp-operated refining availability* for the first quarter was 90.4%, lower compared with 96.1% for the same period in 2023, mainly due to the plant-wide power outage at the Whiting refinery.
*Strategic progress *
· In March, bp announced plans to transform the Gelsenkirchen refinery site by the end of the decade. The plans include simplification of the site to improve competitiveness, including a controlled reduction in total production capacity from 2025 and increased production of lower-emission fuels using co-processing.
· In April, bp’s Archaea Energy announced it had brought online in March its largest Archaea Modular Design (AMD) renewable natural gas (RNG) plant in Kansas City, Missouri. The plant can convert 9,600 standard cubic feet of landfill gas per minute into lower-carbon RNG. In addition, on 4 April, Archaea Energy completed the purchase of Sunshine Gas Producers and now fully owns and operates the current landfill-gas-to-electric facility in California, with plans to develop an RNG plant.
· In April, bp launched its new hydrotreated vegetable oil (HVO) bioenergy brand, commencing with roll out at sites across the UK and the Netherlands. Marketed as “bp bioenergy HVO”, it joins bp pulse as customers & products' second transition growth engine brand.
· In March, bp acquired the freehold of one of the largest truck stops in Europe, Ashford International Truckstop in Kent. The acquisition presents bp with the opportunity to help meet the comprehensive needs of UK and European HGV operators transitioning to EVs. In addition, in April, bp opened its first bp pulse branded Gigahub in Houston, Texas, with 24 ultra-fast charge points, building momentum in our US charging business offering.
· In February, bp New Zealand was announced as a foundation partner for Woolworths' loyalty programme, “Everyday Rewards”. The loyalty scheme enables current customers and over one million new customers to collect points and obtain instant rewards at bp retail sites.
* *
*Top of page 12*
* *
* *
customers & products (continued)
*First* *Fourth* *First* *quarter* *quarter* *quarter*
*$ million* *2024* *2023* *2023*
Profit (loss) before interest and tax *1,840* (2,051) 2,078
Inventory holding (gains) losses* *(852)* 1,497 602
RC profit (loss) before interest and tax *988* (554) 2,680
Net (favourable) adverse impact of adjusting items *301* 1,357 79
Underlying RC profit before interest and tax *1,289* 803 2,759
Of which:[(a)]
customers – convenience & mobility *370* 882 391
Castrol – included in customers *184* 213 161
products – refining & trading *919* (79) 2,368
Taxation on an underlying RC basis *(333)* (239) (777)
Underlying RC profit before interest *956* 564 1,982
1. A reconciliation to RC profit before interest and tax by business is provided on page 28.
*First* *Fourth* *First* *quarter* *quarter* *quarter*
*$ million* *2024* *2023* *2023*
*Adjusted EBITDA***[(b)]*
customers – convenience & mobility *854* 1,348 732
Castrol – included in customers *226* 256 200
products – refining & trading *1,379* 397 2,824 *2,233* 1,745 3,556
*Depreciation, depletion and amortization*
Total depreciation, depletion and amortization *944* 942 797
*Capital expenditure**
customers – convenience & mobility *566* 790 458
Castrol – included in customers *43* 90 68
products – refining & trading *554* 813 532
Total capital expenditure *1,120* 1,603 990
1. A reconciliation to RC profit before interest and tax by business is provided on page 28.
*Retail**[(c)]* *First* *Fourth* *First* *quarter* *quarter* *quarter* *2024* *2023* *2023*
bp retail sites* – total (#) *21,150* 21,100 20,700
Strategic convenience sites* *2,900* 2,850 2,450
1. Reported to the nearest 50.
*Marketing sales of refined products (mb/d)* *First* *Fourth* *First* *quarter* *quarter* *quarter* *2024* *2023* *2023*
US *1,080* 1,205 1,078
Europe *940* 1,037 973
Rest of World *469* 465 462 *2,489* 2,707 2,513
Trading/supply sales of refined products *352* 355 333
Total sales volume of refined products *2,841* 3,062 2,846
* *
*Top of page 13*
* *
* *
customers & products (continued)
*Refining marker margin** *First* *Fourth* *First* *quarter* *quarter* *quarter* *2024* *2023* *2023*
bp average refining marker margin (RMM) ($/bbl) *20.6* 18.5 28.1
* *
*Refinery throughputs (mb/d)* *First* *Fourth* *First* *quarter* *quarter* *quarter* *2024* *2023* *2023*
US *525* 634 686
Europe *830* 678 832
Total refinery throughputs *1,355* 1,312 1,518
*bp-operated refining availability* (%)* *90.4* 96.1 96.1
* *
* *
* *
*Top of page 14*
* *
* *
other businesses & corporate
Other businesses & corporate comprises innovation & engineering, bp ventures, launchpad, regions, corporates & solutions, our corporate activities & functions and any residual costs of the Gulf of Mexico oil spill.
*Financial results *
· The replacement cost (RC) loss before interest and tax for the first quarter was $300 million, compared with a loss of $90 million for the same period in 2023. The first quarter is adjusted by an adverse impact of net adjusting items* of $146 million, compared with a favourable impact of net adjusting items of $206 million for the same period in 2023. Adjusting items include impacts of fair value accounting effects* which are an adverse impact of $193 million for the quarter in 2024, and a favourable impact of $245 million for the same period in 2023.
· After adjusting RC loss before interest and tax for adjusting items, the underlying RC loss before interest and tax* for the first quarter was $154 million, compared with a loss of $296 million for the same period in 2023.
*Strategic progress*
· In March, bp launchpad divested all of its 100% shareholding in Insight Analytics Solutions Holdings Limited (“Onyx”) to Macquarie Capital.
* *
*First* *Fourth* *First* *quarter* *quarter* *quarter*
*$ million* *2024* *2023* *2023*
Profit (loss) before interest and tax *(300)* (16) (90)
Inventory holding (gains) losses* *—* — —
RC profit (loss) before interest and tax *(300)* (16) (90)
Net (favourable) adverse impact of adjusting items[(a)] *146* (81) (206)
Underlying RC profit (loss) before interest and tax *(154)* (97) (296)
Taxation on an underlying RC basis *99* 121 29
Underlying RC profit (loss) before interest *(55)* 24 (267)
1. Includes fair value accounting effects relating to hybrid bonds. See page 31 for more information.
*Top of page 15*
* *
* *
Financial statements
Group income statement
*First* *Fourth* *First* *quarter* *quarter* *quarter*
*$ million* *2024* *2023* *2023*
Sales and other operating revenues (Note 5) *48,880* 52,141 56,182
Earnings from joint ventures – after interest and tax *178* (290) 195
Earnings from associates – after interest and tax *298* 156 173
Interest and other income *381* 599 248
Gains on sale of businesses and fixed assets *224* (20) 153
Total revenues and other income *49,961* 52,586 56,951
Purchases *27,647* 31,062 29,122
Production and manufacturing expenses *6,847* 5,751 6,982
Production and similar taxes *444* 445 474
Depreciation, depletion and amortization (Note 6) *4,150* 4,060 3,800
Net impairment and losses on sale of businesses and fixed assets (Note 3) *737* 3,958 88
Exploration expense *247* 501 106
Distribution and administration expenses *4,222* 4,733 3,747
Profit (loss) before interest and taxation *5,667* 2,076 12,632
Finance costs *1,075* 1,038 843
Net finance (income) expense relating to pensions and other post-retirement benefits *(41)* (61) (58)
Profit (loss) before taxation *4,633* 1,099 11,847
Taxation *2,224* 663 3,425
Profit (loss) for the period *2,409* 436 8,422
Attributable to
bp shareholders *2,263* 371 8,218
Non-controlling interests *146* 65 204 *2,409* 436 8,422
*Earnings per share (Note 7)*
Profit (loss) for the period attributable to bp shareholders
Per ordinary share (cents)
Basic *13.57* 2.20 45.93
Diluted *13.25* 2.15 45.06
Per ADS (dollars)
Basic *0.81* 0.13 2.76
Diluted *0.80* 0.13 2.70
* *
*Top of page 16*
* *
* *
Condensed group statement of comprehensive income
*First* *Fourth* *First* *quarter* *quarter* *quarter*
*$ million* *2024* *2023* *2023*
Profit (loss) for the period *2,409* 436 8,422
*Other comprehensive income *
Items that may be reclassified subsequently to profit or loss
Currency translation differences *(448)* 711 453
Cash flow hedges and costs of hedging *(115)* 125 546
Share of items relating to equity-accounted entities, net of tax *(8)* 13 (203)
Income tax relating to items that may be reclassified *(4)* 64 (76) *(575)* 913 720
Items that will not be reclassified to profit or loss
Remeasurements of the net pension and other post-retirement benefit liability or asset *(66)* (1,209) (87)
Remeasurements of equity investments *(13)* 51 —
Cash flow hedges that will subsequently be transferred to the balance sheet *(3)* 16 —
Income tax relating to items that will not be reclassified(a) *674* 357 23 *592* (785) (64)
Other comprehensive income *17* 128 656
Total comprehensive income *2,426* 564 9,078
*Attributable to*
bp shareholders *2,303* 461 8,861
Non-controlling interests *123* 103 217 *2,426* 564 9,078
1. First quarter 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 *2,303* *154* *(31)* *2,426*
Dividends *(1,222)* *—* *(126)* *(1,348)*
Cash flow hedges transferred to the balance sheet, net of tax *(2)* *—* *—* *(2)*
Repurchase of ordinary share capital *(1,751)* *—* *—* *(1,751)*
Share-based payments, net of tax *154* *—* *—* *154*
Issue of perpetual hybrid bonds(a) *(4)* *1,300* *—* *1,296*
Redemption of perpetual hybrid bonds, net of tax(a) *9* *(1,300)* *—* *(1,291)*
Payments on perpetual hybrid bonds *—* *(84)* *—* *(84)*
Transactions involving non-controlling interests, net of tax *—* *—* *47* *47*
At 31 March 2024 *69,770* *13,636* *1,534* *84,940* *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 8,861 142 75 9,078
Dividends (1,189) — (68) (1,257)
Repurchase of ordinary share capital (3,421) — — (3,421)
Share-based payments, net of tax (29) — — (29)
Issue of perpetual hybrid bonds — 45 — 45
Payments on perpetual hybrid bonds — (80) — (80)
Transactions involving non-controlling interests, net of tax — — (145) (145)
At 31 March 2023 71,775 13,497 1,909 87,181
1. During the first quarter 2024 BP Capital Markets PLC issued $1.3 billion of US dollar perpetual subordinated hybrid bonds with a coupon fixed for an initial period up to 2034 of 6.45% and voluntarily bought back $1.3 billion of the non-call 2025 4.375% US dollar hybrid bond issued in 2020. Taken together these transactions had no significant impact on net debt or gearing.
*Top of page 18*
* *
* *
Group balance sheet
*31 March* *31 December*
*$ million* *2024* *2023*
*Non-current assets*
Property, plant and equipment *102,744* 104,719
Goodwill *12,378* 12,472
Intangible assets *10,008* 9,991
Investments in joint ventures *12,467* 12,435
Investments in associates *7,932* 7,814
Other investments *2,267* 2,189
Fixed assets *147,796* 149,620
Loans *2,113* 1,942
Trade and other receivables *1,735* 1,767
Derivative financial instruments *9,686* 9,980
Prepayments *665* 623
Deferred tax assets *4,227* 4,268
Defined benefit pension plan surpluses *7,804* 7,948 *174,026* 176,148
*Current assets*
Loans *219* 240
Inventories *24,310* 22,819
Trade and other receivables *29,908* 31,123
Derivative financial instruments *10,150* 12,583
Prepayments *2,247* 2,520
Current tax receivable *766* 837
Other investments *615* 843
Cash and cash equivalents *31,510* 33,030 *99,725* 103,995
Assets classified as held for sale (Note 2) *1,684* 151 *101,409* 104,146
Total assets *275,435* 280,294
*Current liabilities*
Trade and other payables *58,621* 61,155
Derivative financial instruments *4,772* 5,250
Accruals *5,189* 6,527
Lease liabilities *2,628* 2,650
Finance debt *4,665* 3,284
Current tax payable *2,804* 2,732
Provisions *3,579* 4,418 *82,258* 86,016
Liabilities directly associated with assets classified as held for sale (Note 2) *30* 62 *82,288* 86,078
*Non-current liabilities*
Other payables *9,914* 10,076
Derivative financial instruments *11,140* 10,402
Accruals *1,286* 1,310
Lease liabilities *8,429* 8,471
Finance debt *48,348* 48,670
Deferred tax liabilities *8,980* 9,617
Provisions *14,835* 14,721
Defined benefit pension plan and other post-retirement benefit plan deficits *5,275* 5,456 *108,207* 108,723
Total liabilities *190,495* 194,801
Net assets *84,940* 85,493
*Equity*
bp shareholders’ equity[] *69,770* 70,283
Non-controlling interests *15,170* 15,210
Total equity *84,940* 85,493
*Top of page 19*
* *
* *
Condensed group cash flow statement
*First* *Fourth* *First* *quarter* *quarter* *quarter*
*$ million* *2024* *2023* *2023*
*Operating activities*
Profit (loss) before taxation *4,633* 1,099 11,847
Adjustments to reconcile profit (loss) before taxation to net cash provided by operating activities
Depreciation, depletion and amortization and exploration expenditure written off *4,356* 4,441 3,850
Net impairment and (gain) loss on sale of businesses and fixed assets *513* 3,978 (65)
Earnings from equity-accounted entities, less dividends received *(96)* 803 1
Net charge for interest and other finance expense, less net interest paid *192* 202 63
Share-based payments *161* 97 (22)
Net operating charge for pensions and other post-retirement benefits, less contributions and benefit payments for unfunded plans *(32)* (63) (43)
Net charge for provisions, less payments *(683)* (819) (1,099)
Movements in inventories and other current and non-current assets and liabilities *(2,131)* 1,942 (3,755)
Income taxes paid *(1,904)* (2,303) (3,155)
Net cash provided by operating activities *5,009* 9,377 7,622
*Investing activities*
Expenditure on property, plant and equipment, intangible and other assets *(3,718)* (4,247) (3,129)
Acquisitions, net of cash acquired *(106)* (38) 52
Investment in joint ventures *(353)* (347) (540)
Investment in associates *(101)* (79) (8)
Total cash capital expenditure *(4,278)* (4,711) (3,625)
Proceeds from disposal of fixed assets *66* 31 15
Proceeds from disposal of businesses, net of cash disposed *347* 269 785
Proceeds from loan repayments *16* 16 6
Cash provided from investing activities *429* 316 806
Net cash used in investing activities *(3,849)* (4,395) (2,819)
*Financing activities*
Net issue (repurchase) of shares (Note 7) *(1,750)* (1,350) (2,448)
Lease liability payments *(694)* (722) (555)
Proceeds from long-term financing *2,259* 1,522 2,395
Repayments of long-term financing *(674)* (11) (799)
Net increase (decrease) in short-term debt *16* 87 (529)
Issue of perpetual hybrid bonds(a) *1,296* 13 45
Redemption of perpetual hybrid bonds(a) *(1,288)* — —
Payments relating to perpetual hybrid bonds *(256)* (264) (236)
Payments relating to transactions involving non-controlling interests (Other interest) *—* (7) (180)
Receipts relating to transactions involving non-controlling interests (Other interest) *16* 10 7
Dividends paid - bp shareholders *(1,219)* (1,224) (1,183)- non-controlling interests *(126)* (77) (68)
Net cash provided by (used in) financing activities *(2,420)* (2,023) (3,551)
Currency translation differences relating to cash and cash equivalents *(260)* 145 (14)
Increase (decrease) in cash and cash equivalents *(1,520)* 3,104 1,238
Cash and cash equivalents at beginning of period *33,030* 29,926 29,195
Cash and cash equivalents at end of period *31,510* 33,030 30,433
* *
1. See Condensed group statement of changes in equity - footnote (a) for further information.
* *
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*Top of page 20*
* *
* *
Notes
Note 1. Basis of preparation
The interim financial information included in this report has been prepared in accordance with IAS 34 'Interim Financial Reporting'.
The results for the interim periods are unaudited and, in the opinion of management, include all adjustments necessary for a fair presentation of the results for each period. All such adjustments are of a normal recurring nature. This report should be read in conjunction with the consolidated financial statements and related notes for the year ended 31 December 2023 included in bp Annual Report and Form 20-F 2023.
bp prepares its consolidated financial statements included within bp Annual Report and Form 20-F on the basis of International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), IFRS as adopted by the UK, and European Union (EU), and in accordance with the provisions of the UK Companies Act 2006 as applicable to companies reporting under international accounting standards. IFRS as adopted by the UK does not differ from IFRS as adopted by the EU. IFRS as adopted by the UK and EU differ in certain respects from IFRS as issued by the IASB. The differences have no impact on the group’s consolidated financial statements for the periods presented. The financial information presented herein has been prepared in accordance with the accounting policies expected to be used in preparing bp Annual Report and Form 20-F 2024 which are the same as those used in preparing bp Annual Report and Form 20-F 2023.
There are no other new or amended standards or interpretations adopted from 1 January 2024 onwards that have a significant impact on the financial information.
*Significant accounting judgements and estimates*
bp's significant accounting judgements and estimates were disclosed in bp Annual Report and Form 20-F 2023. These have been subsequently considered at the end of this quarter to determine if any changes were required to those judgements and estimates. No significant changes were identified.
Note 2. Non-current assets held for sale* *
The carrying amount of assets classified as held for sale at 31 March 2024 is $1,684 million, with associated liabilities of $30 million. These relate to the transactions described below.
On 14 February 2024, bp and ADNOC announced that they had agreed to form a new joint venture (JV) in Egypt (51% bp and 49% ADNOC). As part of the agreement, bp will contribute its interests in three development concessions, as well as exploration agreements, in Egypt to the new JV. ADNOC will make a proportionate cash contribution. Subject to regulatory approvals and clearances, the formation of the JV is expected to complete during the second half of 2024. The carrying amount of assets classified as held for sale at 31 March 2024 is $1,583 million, with associated liabilities of $23 million.
On 16 November 2023, bp entered into an agreement to sell its Türkiye ground fuels business to Petrol Ofisi. This includes the group's interest in three joint venture terminals in Türkiye. Completion of the sale is subject to regulatory approvals. The carrying amount of assets classified as held for sale at 31 March 2024 is $101 million, with associated liabilities of $7 million. Cumulative foreign exchange losses within reserves of approximately $900 million are expected to be recycled to the group income statement at completion.
Note 3. Impairment and losses on sale of businesses and fixed assets
Net impairment charges and losses on sale of businesses and fixed assets for the first quarter were $737 million, compared with net charges of $88 million for the same period in 2023 and include net impairment charges for the first quarter of $649 million, compared with net impairment reversals of $41 million for the same period in 2023.
*Top of page 21*
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* *
Note 4. Analysis of replacement cost profit (loss) before interest and tax and reconciliation to profit (loss) before taxation
*First* *Fourth* *First* *quarter* *quarter* *quarter*
*$ million* *2024* *2023* *2023*
gas & low carbon energy *1,036* 2,169 7,347
oil production & operations *3,060* 1,879 3,317
customers & products *988* (554) 2,680
other businesses & corporate *(300)* (16) (90) *4,784* 3,478 13,254
Consolidation adjustment – UPII* *32* 95 (22)
RC profit (loss) before interest and tax *4,816* 3,573 13,232
Inventory holding gains (losses)*
gas & low carbon energy *—* — 1
oil production & operations *(1)* — 1
customers & products *852* (1,497) (602)
Profit (loss) before interest and tax *5,667* 2,076 12,632
Finance costs *1,075* 1,038 843
Net finance expense/(income) relating to pensions and other post-retirement benefits *(41)* (61) (58)
Profit (loss) before taxation *4,633* 1,099 11,847
*RC profit (loss) before interest and tax**
US *1,610* 1,154 3,075
Non-US *3,206* 2,419 10,157 *4,816* 3,573 13,232
*Top of page 22*
* *
* *
Note 5. Sales and other operating revenues
*First* *Fourth* *First* *quarter* *quarter* *quarter*
*$ million* *2024* *2023* *2023*
*By segment*
gas & low carbon energy *8,675* 11,670 17,886
oil production & operations *6,432* 6,749 6,153
customers & products *39,895* 40,374 38,882
other businesses & corporate *606* 657 738 *55,608* 59,450 63,659
Less: sales and other operating revenues between segments
gas & low carbon energy *270* 65 536
oil production & operations *5,913* 6,464 6,261
customers & products *293* (105) 144
other businesses & corporate *252* 885 536 *6,728* 7,309 7,477
External sales and other operating revenues
gas & low carbon energy *8,405* 11,605 17,350
oil production & operations *519* 285 (108)
customers & products *39,602* 40,479 38,738
other businesses & corporate *354* (228) 202
Total sales and other operating revenues *48,880* 52,141 56,182
*By geographical area*
US *19,858* 20,920 19,160
Non-US *39,208* 40,808 46,350 *59,066* 61,728 65,510
Less: sales and other operating revenues between areas *10,186* 9,587 9,328 *48,880* 52,141 56,182
*Revenues from contracts with customers*
Sales and other operating revenues include the following in relation to revenues from contracts with customers:
Crude oil *548* 760 637
Oil products *29,840* 32,124 30,141
Natural gas, LNG and NGLs *5,751* 7,660 9,644
Non-oil products and other revenues from contracts with customers *2,928* 2,911 1,872
Revenue from contracts with customers *39,067* 43,455 42,294
Other operating revenues[(a)] *9,813* 8,686 13,888
Total sales and other operating revenues *48,880* 52,141 56,182
1. Principally relates to commodity derivative transactions including sales of bp own production in trading books.
^
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*Top of page 23*
* *
* *
Note 6. Depreciation, depletion and amortization
*First* *Fourth* *First* *quarter* *quarter* *quarter*
*$ million* *2024* *2023* *2023*
*Total depreciation, depletion and amortization by segment*
gas & low carbon energy *1,293* 1,290 1,440
oil production & operations *1,657* 1,563 1,327
customers & products *944* 942 797
other businesses & corporate *256* 265 236 *4,150* 4,060 3,800
*Total depreciation, depletion and amortization by geographical area*
US *1,570* 1,547 1,254
Non-US *2,580* 2,513 2,546 *4,150* 4,060 3,800
* *
* *
* *
Note 7. Earnings per share and shares in issue
Basic earnings per ordinary share (EpS) amounts are calculated by dividing the profit (loss) for the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Against the authority granted at bp's 2023 annual general meeting, 292 million ordinary shares repurchased for cancellation were settled during the first quarter 2024 for a total cost of $1,750 million. A further 115 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 $747 million. This amount has been accrued at 31 March 2024. The number of shares in issue is reduced when shares are repurchased, but is not reduced in respect of the period-end commitment to repurchase shares subsequent to the end of the period.
The calculation of EpS is performed separately for each discrete quarterly period, and for the year-to-date period. As a result, the sum of the discrete quarterly EpS amounts in any particular year-to-date period may not be equal to the EpS amount for the year-to-date period.
For the diluted EpS calculation the weighted average number of shares outstanding during the period is adjusted for the number of shares that are potentially issuable in connection with employee share-based payment plans using the treasury stock method.
*First* *Fourth* *First* *quarter* *quarter* *quarter*
*$ million* *2024* *2023* *2023*
*Results for the period*
Profit (loss) for the period attributable to bp shareholders *2,263* 371 8,218
Less: preference dividend *—* — —
Less: (gain) loss on redemption of perpetual hybrid bonds[(a)] *(10)* — —
Profit (loss) attributable to bp ordinary shareholders *2,273* 371 8,218
*Number of shares (thousand)*[(b)]
Basic weighted average number of shares outstanding *16,751,887* 16,834,354 17,891,455
ADS equivalent[(c)] *2,791,981* 2,805,725 2,981,909
Weighted average number of shares outstanding used to calculate diluted earnings per share *17,153,505* 17,269,574 18,238,522
ADS equivalent[(c)] *2,858,917* 2,878,262 3,039,753
Shares in issue at period-end *16,687,850* 16,824,651 17,703,285
ADS equivalent[(c)] *2,781,308* 2,804,108 2,950,547
1. See Condensed group statement of changes in equity - footnote (a) for further information.
2. Excludes treasury shares and includes certain shares that will be issued in the future under employee share-based payment plans.
3. One ADS is equivalent to six ordinary shares.
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*Top of page 24*
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* *
Note 8. Dividends
*Dividends payable*
bp today announced an interim dividend of 7.270 cents per ordinary share which is expected to be paid on 28 June 2024 to ordinary shareholders and American Depositary Share (ADS) holders on the register on 17 May 2024. The ex-dividend date will be 16 May 2024. The corresponding amount in sterling is due to be announced on 11 June 2024, calculated based on the average of the market exchange rates over three dealing days between 5 June 2024 and 7 June 2024. Holders of ADSs are expected to receive $0.43620 per ADS (less applicable fees). The board has decided not to offer a scrip dividend alternative in respect of the first quarter 2024 dividend. Ordinary shareholders and ADS holders (subject to certain exceptions) will be able to participate in a dividend reinvestment programme. Details of the first quarter dividend and timetable are available at bp.com/dividends and further details of the dividend reinvestment programmes are available at bp.com/drip.
*First* *Fourth* *First* *quarter* *quarter* *quarter* *2024* *2023* *2023*
*Dividends paid per ordinary share*
cents *7.270* 7.270 6.610
pence *5.692* 5.737 5.551
Dividends paid per ADS (cents) *43.62* 43.62 39.66
* *
* *
* *
Note 9. Net debt
*Net debt** *31 March* *31 December* *31 March*
*$ million* *2024* *2023* *2023*
Finance debt[(a)] *53,013* 51,954 48,595
Fair value (asset) liability of hedges related to finance debt[(b)] *2,512* 1,988 3,070 *55,525* 53,942 51,665
Less: cash and cash equivalents *31,510* 33,030 30,433
Net debt[(c)] *24,015* 20,912 21,232
Total equity *84,940* 85,493 87,181
Gearing* *22.0%* 19.7% 19.6%
1. The fair value of finance debt at 31 March 2024 was $49,263 million (31 December 2023 $48,795 million, 31 March 2023 $45,071 million).
2. 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 $96 million at 31 March 2024 (fourth quarter 2023 liability of $73 million and first quarter 2023 liability of $97 million) are not included in the calculation of net debt shown above as