Bp PLC 6-K, filed Oct 31, 2023
Bp PLC (BP)
6-K
2023-10-31
For: 2023-10-31
View Original
Added on
April 08, 2026
About this 6-K
Bp PLC filed this 6-K on October 31, 2023.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
for the
period ended 31 October, 2023
BP p.l.c.
(Translation
of registrant's name into English)
1 ST JAMES'S SQUARE, LONDON, SW1Y 4PD, ENGLAND
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file
annual
reports
under cover Form 20-F or Form 40-F.
Form
20-F |X| Form 40-F
---------------
----------------
Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of
1934.
Yes No
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---------------
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Exhibit
1.1
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3Q23
SEA Part 1 of 1 dated 31 October 2023
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Exhibit 1.1
Top of page 1
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FOR IMMEDIATE RELEASE
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London 31 October 2023
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BP p.l.c. Group results
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Third quarter and nine months 2023
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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/7730R_1-2023-10-30.pdf
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Performing while transforming
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Financial summary
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Third
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Second
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Third
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Nine
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Nine
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quarter
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quarter
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quarter
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months
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months
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$ million
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2023
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2023
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2022
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2023
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2022
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Profit (loss) for the period attributable to bp
shareholders
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4,858
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1,792
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(2,163)
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14,868
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(13,290)
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Inventory holding (gains) losses*, net of tax
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(1,212)
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549
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2,186
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(211)
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(2,085)
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Replacement cost (RC) profit (loss)*
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3,646
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2,341
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23
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14,657
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(15,375)
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Net (favourable) adverse impact of adjusting items*, net of
tax
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(353)
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248
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8,127
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(3,812)
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38,221
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Underlying RC profit*
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3,293
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2,589
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8,150
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10,845
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22,846
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Operating cash flow*
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8,747
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6,293
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8,288
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22,662
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27,361
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Capital expenditure*
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(3,603)
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(4,314)
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(3,194)
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(11,542)
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(8,961)
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Divestment
and other proceeds(a)
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655
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88
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606
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1,543
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2,509
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Surplus cash flow*
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3,107
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(269)
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3,496
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5,121
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14,080
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Net issue (repurchase) of shares
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(2,047)
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(2,073)
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(2,876)
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(6,568)
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(6,756)
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Net
debt*(b)
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22,324
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23,660
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22,002
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22,324
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22,002
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Adjusted
EBITDA*
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10,306
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9,770
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17,407
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33,142
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47,647
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Announced dividend per ordinary share (cents per
share)
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7.270
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7.270
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6.006
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21.150
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17.472
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Underlying RC profit per ordinary share* (cents)
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19.14
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14.77
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43.15
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61.83
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118.61
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Underlying RC profit per ADS* (dollars)
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1.15
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0.89
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2.59
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3.71
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7.12
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● Underlying RC profit $3.3bn; Operating cash flow $8.7bn;
Net debt reduced to $22.3bn
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● Further $1.5bn share buyback announced
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● Delivering resilient hydrocarbons - start up of major
project* - Tangguh Expansion; North Sea Murlach project gets
regulatory approval; bpx energy brings online 'Bingo'
facility
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● Continued progress to an IEC - first Archaea modular biogas
plant; Woodfibre and OMV LNG agreements
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This has been a solid quarter supported by strong underlying
operational performance demonstrating our continued focus on
delivery. Momentum continues to build across our businesses, with
recent start-ups including Tangguh Expansion, bpx energy's 'Bingo'
central processing facility and Archaea Energy's first modular
biogas plant in Indiana. As we laid out at our investor update in
Denver, we remain committed to executing our strategy, expect to
grow earnings through this decade, and on track to deliver strong
returns for our shareholders.
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Murray Auchincloss
Chief executive officer (Interim)
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(a)
Divestment proceeds are disposal proceeds as per the condensed
group cash flow statement. See page 3 for more
information on other proceeds.
(b)
See Note 9 for more information.
RC profit (loss), underlying RC profit (loss), surplus cash flow,
net debt, adjusted EBITDA, underlying RC profit per ordinary share
and underlying RC profit per ADS are non-IFRS measures. Inventory
holding (gains) losses and adjusting items are non-IFRS
adjustments.
* For items marked with an asterisk throughout this document,
definitions are provided in the Glossary on page 31.
Top of page 2
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Highlights
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Underlying replacement cost profit* $3.3 billion
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●
Underlying replacement cost profit for the quarter
was $3.3 billion, compared
with $2.6 billion for
the previous quarter. Compared to the second quarter 2023, the result reflects: higher realized
refining margins, lower level of refining turnaround activity, a
very strong oil trading result, higher oil and gas production,
partly offset by a weak gas marketing and trading
result.
●
Reported profit for the quarter was $4.9 billion, compared
with $1.8 billion for
the second quarter 2023. The reported result for
the third quarter is
adjusted for inventory holding gains* of $1.2 billion (net of tax) and a net
favourable impact of adjusting items* of $0.4 billion (net of tax) to derive
the underlying replacement cost profit. Adjusting items include
impairments of $1.2 billion and favourable fair value accounting
effects* of $1.5
billion.
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Operating cash flow* $8.7
billion and net debt* reduced to $22.3
billion
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●
Operating cash flow in the quarter of $8.7 billion includes a working
capital* release (after adjusting for inventory holding gains, fair
value accounting effects and other adjusting items)
of $2.0
billion (see page
27).
●
Capital expenditure* in the third quarter was $3.6 billion. bp now expects capital
expenditure, including inorganic capital expenditure* to be around
$16 billion in 2023.
●
During the third quarter, bp
completed $2.0 billion of share buybacks.
This included $225 million as part of the $675 million programme
announced on 7 February 2023 to offset the expected full-year
dilution from the vesting of awards under employee share schemes in
2023. bp completed the $675 million buyback programme on 1
September 2023.
●
The $1.5 billion share buyback programme announced with
the second quarter
results was completed on 27 October 2023.
●
Net debt was reduced by $1.3 billion to $22.3 billion at the end of
the third quarter.
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Further $ 1.5 billion share buyback within a disciplined 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 third quarter, bp has announced a dividend per ordinary
share of 7.270 cents.
●
bp remains committed to using 60% of 2023 surplus cash flow* for
share buybacks, subject to maintaining a strong investment grade
credit rating.
●
bp intends to execute a further $1.5 billion share buyback prior to
reporting fourth quarter results.
●
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 the maintenance of a strong
investment grade credit rating.
●
bp's guidance for distributions remains unchanged. Based on bp's
current forecasts, at around $60 per barrel Brent and subject to
the board's discretion each quarter, bp expects to be able to
deliver share buybacks of around $4.0 billion per annum, at the
lower end of its $14-18 billion capital expenditure range, and have
capacity for an annual increase in the dividend per ordinary share
of around 4%.
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Continued progress in transformation to an integrated energy
company
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●
In resilient hydrocarbons, bp has announced the start-up of Tangguh
Expansion - the third major project* in 2023 - adding around
3.8mtpa of producing capacity to the existing 7.6mtpa facility. It
has safely produced the first commercial cargo. In August, bpx
energy successfully brought online 'Bingo', its second central
processing facility in the Permian Basin. In September, a
regulatory approval was received for the Murlach oil and gas
development in the North Sea, a two well redevelopment of the
Marnock-Skua field back to the ETAP (Eastern Trough Area Project)
hub. bp has accelerated its biogas strategy - part of its bioenergy
transition growth* engine - bp's Archaea Energy announced the
start-up of its original Archaea Modular Design (AMD) renewable
natural gas plant in Medora, Indiana.
●
In convenience and mobility, bp continued to advance its growth
strategy in EV charging and convenience: announcing an agreement in
October with Tesla for the future purchase of $100 million of
ultra-fast chargers in the US - this is part of the approved $500
million of investment in the US; and expanding its successful
strategic convenience partnership with Auchan in Poland, with plans
to add more than 100 EasyAuchan stores to its retail network by the
end of 2025.
●
In low carbon energy, bp has strengthened its renewables pipeline
to 43.9GW net to bp from
the rights awarded to develop two offshore wind projects, with
total potential generating capacity of 4GW, in the German tender
round.
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bp delivered robust operating cash flow in the quarter as we
continue to execute against our unchanged financial frame. Net debt
reduced by $1.3 billion to $22.3 billion; we are investing with
discipline; and we are delivering on our commitment to shareholder
distributions, announcing a further $1.5 billion share buyback
programme.
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Kate Thomson
Chief financial officer (Interim)
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The commentary above contains forward-looking statements and should
be read in conjunction with the cautionary statement on page
37.
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Top of page 3
Financial results
In addition to the highlights on page 2:
●
Profit
attributable to bp shareholders in the third
quarter and nine
months was $4.9 billion and $14.9 billion respectively,
compared with a loss
of $2.2 billion and $13.3 billion in
the same periods of 2022.
-
After
adjusting profit attributable to bp shareholders for inventory
holding gains* and net impact of adjusting items*, underlying
replacement cost profit* for the third
quarter and nine
months was $3.3 billion and $10.8 billion respectively,
compared
with $8.2 billion and $22.8 billion for
the same periods of 2022. This reduction in underlying
replacement cost profit for the third quarter mainly
reflects lower oil and gas realizations and a weak gas marketing
and trading result. For the nine months, the reduction
reflects lower oil and gas realizations; the impact of portfolio
changes in oil production & operations; a lower refining and
oil trading performance; and a weak gas marketing and trading
result in the third quarter.
-
Adjusting
items in the third quarter and nine months had a net
favourable pre-tax impact
of $0.5 billion and $3.8 billion respectively,
compared with an adverse pre-tax impact
of $8.3 billion and $39.4 billion in
the same periods of 2022.
-
Adjusting
items for the third quarter and nine
months of 2023 include a favourable impact of
pre-tax fair value accounting effects*, relative to
management's internal measure of performance, of $1.5
billion and $6.8 billion respectively, compared with
an adverse pre-tax impact
of $10.1 billion and $16.7 billion in
the same periods of 2022. This is primarily due to a
decline in the forward price of LNG during the 2023 periods, but an
increase in the 2022 comparative periods. 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.
-
Adjusting
items for the nine months 2022 include a pre-tax
charge of $24.0 billion relating to bp's decision to exit its
19.75% shareholding in Rosneft. A further $1.5 billion pre-tax
charge relating to bp's decision to exit its other businesses with
Rosneft in Russia is also included.
●
The
effective tax rate (ETR) on RC profit or loss* for the third
quarter and nine months was 33% and 32%
respectively, compared with 96% and -242% for the same
periods in 2022. Excluding adjusting items, the underlying
ETR* for the third quarter and nine months was 33%
and 39% respectively, compared with 37% and 33% for
the same periods a year ago. The lower underlying ETR for
the third quarter reflects adjustments in respect of
prior periods. The higher underlying ETR for the nine
months reflects changes in the geographical mix of profits and
the increased impact of the UK Energy Profits Levy. ETR on RC
profit or loss and underlying ETR are non-IFRS
measures.
●
Operating
cash flow* for the third quarter and nine
months was $8.7 billion and $22.7 billion respectively,
compared
with $8.3 billion and $27.4 billion for
the same periods in 2022 driven by the movements in
underlying replacement cost profit and working capital in the
periods.
●
Capital
expenditure* in the third quarter and nine
months was $3.6 billion and $11.5 billion respectively,
compared
with $3.2 billion and $9.0 billion in
the same periods of 2022. The nine months 2023
reflected the inorganic $1.1 billion spend on the acquisition of
TravelCenters of America in the second quarter 2023.
●
Total
divestment and other proceeds for the third quarter and nine
months were $0.7 billion and $1.5 billion respectively,
compared
with $0.6 billion and $2.5 billion for
the same periods in 2022. Other proceeds for the third
quarter and nine months of 2023 were $0.5 billion of proceeds from
the sale of a 49% interest in a controlled affiliate holding
certain midstream assets onshore US. Other proceeds for
the nine months of 2022 were $0.6 billion of
proceeds from the disposal of a loan note related to the Alaska
divestment.
●
At
the end of the third quarter, net debt* was $22.3
billion, compared with $23.7 billion at the end of
the second quarter 2023 and $22.0 billion at
the end of the third quarter 2022.
Top of page 4
Analysis of RC profit (loss) before interest and tax and
reconciliation to profit (loss) for the period
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Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
RC profit (loss) before interest and tax
|
|
|
|
|
|
|
|
|
gas
& low carbon energy
|
|
2,275
|
2,289
|
(2,956)
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|
11,911
|
(1,743)
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|
oil
production & operations
|
|
3,427
|
2,568
|
6,965
|
|
9,312
|
18,033
|
|
customers
& products
|
|
1,549
|
555
|
2,586
|
|
4,784
|
8,098
|
|
other
businesses & corporate
|
|
(500)
|
(297)
|
(1,093)
|
|
(887)
|
(26,840)
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|
Of
which:
|
|
|
|
|
|
|
|
|
other
businesses & corporate excluding Rosneft
|
|
(500)
|
(297)
|
(1,093)
|
|
(887)
|
(2,807)
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|
Rosneft
|
|
-
|
-
|
-
|
|
-
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(24,033)
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Consolidation
adjustment - UPII*
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|
(57)
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(30)
|
(21)
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(109)
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(8)
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RC profit (loss) before interest and tax
|
|
6,694
|
5,085
|
5,481
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25,011
|
(2,460)
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Finance
costs and net finance expense relating to pensions and other
post-retirement benefits
|
|
(978)
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(859)
|
(633)
|
|
(2,622)
|
(1,816)
|
|
Taxation on a RC basis
|
|
(1,859)
|
(1,724)
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(4,646)
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|
(7,156)
|
(10,327)
|
|
Non-controlling interests
|
|
(211)
|
(161)
|
(179)
|
|
(576)
|
(772)
|
|
RC profit (loss) attributable to bp shareholders*
|
|
3,646
|
2,341
|
23
|
|
14,657
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(15,375)
|
|
Inventory holding gains (losses)*
|
|
1,593
|
(732)
|
(2,868)
|
|
261
|
2,779
|
|
Taxation (charge) credit on inventory holding gains and
losses
|
|
(381)
|
183
|
682
|
|
(50)
|
(694)
|
|
Profit (loss) for the period attributable to bp
shareholders
|
|
4,858
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1,792
|
(2,163)
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|
14,868
|
(13,290)
|
Analysis of underlying RC profit (loss) before interest and
tax
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
Underlying RC profit (loss) before interest and tax
|
|
|
|
|
|
|
|
|
gas
& low carbon energy
|
|
1,256
|
2,233
|
6,240
|
|
6,945
|
12,915
|
|
oil
production & operations
|
|
3,136
|
2,777
|
5,211
|
|
9,232
|
15,796
|
|
customers
& products
|
|
2,055
|
796
|
2,725
|
|
5,610
|
8,887
|
|
other
businesses & corporate
|
|
(303)
|
(170)
|
(405)
|
|
(769)
|
(865)
|
|
Of
which:
|
|
|
|
|
|
|
|
|
other
businesses & corporate excluding Rosneft
|
|
(303)
|
(170)
|
(405)
|
|
(769)
|
(865)
|
|
Rosneft
|
|
-
|
-
|
-
|
|
-
|
-
|
|
Consolidation
adjustment - UPII
|
|
(57)
|
(30)
|
(21)
|
|
(109)
|
(8)
|
|
Underlying RC profit before interest and tax
|
|
6,087
|
5,606
|
13,750
|
|
20,909
|
36,725
|
|
Finance
costs and net finance expense relating to pensions and other
post-retirement benefits
|
|
(882)
|
(740)
|
(565)
|
|
(2,303)
|
(1,560)
|
|
Taxation on an underlying RC basis
|
|
(1,701)
|
(2,116)
|
(4,856)
|
|
(7,185)
|
(11,547)
|
|
Non-controlling interests
|
|
(211)
|
(161)
|
(179)
|
|
(576)
|
(772)
|
|
Underlying RC profit attributable to bp shareholders*
|
|
3,293
|
2,589
|
8,150
|
|
10,845
|
22,846
|
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
|
|
Nine months 2023
|
|
vs Nine
months 2022
|
|
Tier 1 and tier 2 process safety events*
|
|
29
|
|
-7
|
|
Reported recordable injury frequency*
|
|
0.255
|
|
+31.8%
|
|
upstream* production(a) (mboe/d)
|
|
2,310
|
|
+2.7%
|
|
upstream unit production costs*(b) ($/boe)
|
|
5.88
|
|
-5.9%
|
|
bp-operated upstream plant reliability*
|
|
95.7%
|
|
-0.1
|
|
bp-operated refining availability*(a)
|
|
96.0%
|
|
1.6
|
(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 impact of portfolio changes.
Top
of page 5
Outlook & Guidance
Macro outlook
In
the fourth quarter:
●
bp
expects oil prices to be supported by OPEC+ production restrictions
and the continued demand rebound;
●
European
gas and Asian LNG prices will be driven by weather, demand recovery
in Europe and China and ongoing geopolitical tension. In the US,
weather is also a risk factor, but higher than normal storage
levels and higher production should help to dampen volatility;
and
●
bp
expects industry refining margins to be significantly lower than
the third quarter.
4Q23 guidance
●
Looking
ahead, we expect fourth-quarter 2023 reported upstream* production
to be broadly flat compared to third-quarter 2023.
●
In
its customers business, bp expects seasonally lower volumes with
marketing margins to remain sensitive to movements in the cost of
supply. In refining, we expect significantly lower realized
refining margins and a higher level of turnaround activity in the
fourth quarter.
2023 guidance
In
addition to the guidance on page 2:
●
bp
expects both reported and underlying upstream production to be
higher compared with 2022. Within this, bp expects underlying
production from oil production & operations to be higher and
production from gas & low carbon energy to be slightly lower.
bp continues to expect four major project start-ups during
2023.
●
bp
expects the other businesses & corporate underlying annual
charge to be at the lower end of the range $1.1-1.3 billion for
2023. The charge may vary from quarter to quarter.
●
bp
continues to expect the depreciation, depletion and amortization to
be slightly above 2022.
●
bp
continues to expect the underlying ETR* for 2023 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.
●
Having
realized $17.5 billion of divestment and other proceeds since the
second quarter of 2020, bp continues to expect divestment and other
proceeds of $2-3 billion in 2023 and 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 $1.3 billion pre-tax including the $1.2 billion
pre-tax payment made during the second quarter.
●
bp
now expects capital expenditure* of around $16 billion in 2023
including inorganic capital expenditure*.
●
bp
is committed to maintaining a strong investment grade credit
rating, targeting further progress within an 'A' grade credit
rating. For 2023 bp continues to intend to allocate 40% of surplus
cash flow* to further strengthen the balance sheet.
●
For
2023 and subject to maintaining a strong investment grade credit
rating, bp remains committed to using 60% of surplus cash flow for
share buybacks.
●
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 the maintenance of a strong investment grade
credit rating.
●
Based
on bp's current forecasts, at around $60 per barrel Brent and
subject to the board's discretion each quarter, bp continues to
expect to be able to deliver share buybacks of around $4.0 billion
per annum, at the lower end of its $14-18 billion capital
expenditure range, and have capacity for an annual increase in the
dividend per ordinary share of around 4%.
Adjusted EBITDA* aims(a)
●
bp
has increased its 2030 Adjusted EBITDA aims for resilient
hydrocarbons and group by $2 billion to a range of $41-44 billion
and $53-58 billion respectively.
(a)
Brent $70/bbl 2021 real, at bp planning assumptions, and at the
upper end of the respective expected capital expenditure*
ranges.
|
The commentary above contains forward-looking statements and should
be read in conjunction with the cautionary statement on page
37.
|
Top of page 6
gas & low carbon energy*
Financial results
●
The
replacement cost (RC) profit before interest and tax for
the third quarter and nine months was $2,275
million and $11,911 million respectively, compared
with a loss of $2,956 million and $1,743
million for the same periods in 2022. The third
quarter and nine months are adjusted by a favourable impact of
net adjusting items* of $1,019 million and $4,966
million respectively, compared with an adverse impact of net
adjusting items of $9,196 million and $14,658
million for the same periods in 2022. Adjusting items
include impacts of fair value accounting effects*, relative to
management's internal measure of performance, which are a
favourable impact of $1,816 million and
$6,972 million for the third quarter and nine
months in 2023 and an adverse impact of $9,224
million and $14,313 million for the same periods
in 2022. 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, which decreased as forward prices fell during
the nine months. Adjusting items also include a net impairment
charge
of $224 million and $1,284 million respectively,
compared with net charges
of $6 million and $523 million for
the same periods in 2022.
●
After
adjusting RC profit before interest and tax for adjusting
items, the underlying RC profit before interest and tax*
for the third quarter and nine months was $1,256
million and $6,945 million respectively, compared
with $6,240 million and $12,915 million for the
same periods in 2022.
●
The
underlying RC profit for the third quarter and nine
months, compared with the same periods in 2022, both reflect
lower realizations, a higher depreciation, depletion and
amortization charge, and a weak gas marketing and trading result in
the third quarter.
Operational update
●
Reported
production for the quarter was 946mboe/d, 3.6% lower than the same
period in 2022. Underlying production* was 2.6% lower, mainly due
to base decline and increased planned maintenance offset by major
project* delivery.
●
Reported
production for the nine months was 940mboe/d, 1.8% lower than the
same period in 2022. Underlying production was 2.2% lower, mainly
due to base decline partly offset by major project
delivery.
●
Renewables
pipeline* at the end of the quarter was 43.9GW (bp net),
including 17.7GW bp net share of Lightsource bp's (LSbp's)
pipeline. The renewables pipeline increased by 6.7GW during
the nine months due to bp being awarded the rights to
develop two North Sea offshore wind projects in Germany (4GW) and
increases to LSbp's pipeline. In addition, there is over 13GW (bp
net) of early stage opportunities in LSbp's hopper.
Strategic progress
gas
●
On
19 October bp, on behalf of the Tangguh production-sharing
contract* partners (bp 40.22% operator), announced that the
first cargo of liquefied natural gas (LNG) produced by the new
third liquefaction train at the Tangguh LNG facility, in Papua
Barat, Indonesia, has safely been loaded and sailed. The start-up
of Tangguh Train 3 will add 3.8 million tonnes per annum
(mtpa) of gross LNG production capacity to the existing facility,
bringing total plant capacity to 11.4mtpa gross.
●
On
26 September bp announced that a bp and Shell joint venture (bp
50%, Shell 50%) had been awarded three deepwater exploration blocks
off Trinidad's east coast.
●
bp
continues to work towards its aim of building an LNG
portfolio of 30 million tonnes per year (mpta) by
2030:
o
On
July 28, bp and OMV announced the signing of a long-term agreement
to supply of up to 1mtpa of LNG for 10 years from 2026. This builds
on bp in May 2023 agreeing 2bcm per year of
regasification capacity for 20 years at the Gate terminal in
Rotterdam.
o
On
5 September, bp announced its third long-term LNG offtake contract
from Woodfibre's British Columbia LNG facility with firm
offtake totalling 1.95mtpa and any additional production on a
flexible offtake basis.
low carbon energy
●
Hydrogen and CCS
o
On
13 October the Midwest Alliance for Clean Hydrogen (MachH2),
of which bp is a member, announced it has been selected by the U.S.
Department of Energy's Office of Clean Energy Demonstrations to
develop a Regional Clean Hydrogen Hub. Under the proposals, it
would include blue hydrogen* production at or near bp's Whiting
refinery and a potential hydrogen mobility corridor across Indiana
and neighbouring states.
o
Hydrogen
pipeline* at the end of the third
quarter was 2.9mtpa, an increase of 1.1mtpa compared with
the start of the year.
●
Offshore wind
o
bp
and its partner Equinor continue to work on options for their US
offshore wind projects to mitigate the effect of inflationary
pressures and permitting delays. A filing on 7 June with the New
York Public Services Commission (PSC) requesting to renegotiate the
power purchase agreements associated with three wind
farms off the coast of New York (Empire Wind 1 and 2, Beacon Wind
1) was rejected on 12 October. Equinor and bp are assessing the
impact of the decision on these projects and future development
plans. We have recognized a pre-tax impairment charge of $540
million in the third quarter related to these assets. The pre-tax
charge is recorded through equity-accounted earnings and is
classified as an 'other' adjusting item.
Top
of page 7
gas & low carbon energy (continued)
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
Profit (loss) before interest and tax
|
|
2,275
|
2,289
|
(2,970)
|
|
11,912
|
(1,741)
|
|
Inventory holding (gains) losses*
|
|
-
|
-
|
14
|
|
(1)
|
(2)
|
|
RC profit (loss) before interest and tax
|
|
2,275
|
2,289
|
(2,956)
|
|
11,911
|
(1,743)
|
|
Net (favourable) adverse impact of adjusting items
|
|
(1,019)
|
(56)
|
9,196
|
|
(4,966)
|
14,658
|
|
Underlying RC profit before interest and tax
|
|
1,256
|
2,233
|
6,240
|
|
6,945
|
12,915
|
|
Taxation on an underlying RC basis
|
|
(448)
|
(575)
|
(1,478)
|
|
(1,984)
|
(3,204)
|
|
Underlying RC profit before interest
|
|
808
|
1,658
|
4,762
|
|
4,961
|
9,711
|
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|
Total depreciation, depletion and amortization
|
|
1,543
|
1,407
|
1,177
|
|
4,390
|
3,635
|
|
|
|
|
|
|
|
|
|
|
Exploration write-offs
|
|
|
|
|
|
|
|
|
Exploration write-offs
|
|
15
|
(1)
|
10
|
|
13
|
8
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA*
|
|
|
|
|
|
|
|
|
Total adjusted EBITDA
|
|
2,814
|
3,639
|
7,427
|
|
11,348
|
16,558
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure*
|
|
|
|
|
|
|
|
|
gas
|
|
833
|
697
|
872
|
|
2,177
|
2,195
|
|
low carbon energy
|
|
222
|
190
|
86
|
|
778
|
447
|
|
Total capital expenditure
|
|
1,055
|
887
|
958
|
|
2,955
|
2,642
|
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
Production (net of
royalties)(a)
|
|
|
|
|
|
|
|
|
Liquids* (mb/d)
|
|
106
|
103
|
117
|
|
107
|
117
|
|
Natural gas (mmcf/d)
|
|
4,875
|
4,641
|
5,011
|
|
4,826
|
4,873
|
|
Total hydrocarbons* (mboe/d)
|
|
946
|
903
|
981
|
|
940
|
957
|
|
|
|
|
|
|
|
|
|
|
Average realizations*(b)
|
|
|
|
|
|
|
|
|
Liquids ($/bbl)
|
|
76.69
|
73.57
|
88.03
|
|
76.51
|
92.93
|
|
Natural gas ($/mcf)
|
|
5.38
|
5.53
|
9.85
|
|
6.11
|
8.74
|
|
Total hydrocarbons* ($/boe)
|
|
36.82
|
36.96
|
60.80
|
|
40.23
|
55.91
|
(a)
Includes bp's share of production of equity-accounted entities in
the gas & low carbon energy segment.
(b)
Realizations are based on sales by consolidated subsidiaries only -
this excludes equity-accounted entities.
Top of page 8
gas & low carbon energy (continued)
|
|
|
30 September
|
30 June
|
30 September
|
|
low carbon energy(c)
|
|
2023
|
2023
|
2022
|
|
|
|
|
|
|
|
Renewables (bp net, GW)
|
|
|
|
|
|
Installed renewables capacity*
|
|
2.5
|
2.4
|
2.0
|
|
|
|
|
|
|
|
Developed renewables to FID*
|
|
6.1
|
6.1
|
4.6
|
|
Renewables pipeline
|
|
43.9
|
39.6
|
26.9
|
|
of which by geographical area:
|
|
|
|
|
|
Renewables
pipeline - Americas
|
|
18.4
|
17.8
|
17.5
|
|
Renewables pipeline
- Asia Pacific(d)
|
|
12.1
|
12.2
|
1.7
|
|
Renewables
pipeline - Europe
|
|
13.4
|
9.5
|
7.6
|
|
Renewables
pipeline - Other
|
|
-
|
0.1
|
0.1
|
|
of which by technology:
|
|
|
|
|
|
Renewables
pipeline - offshore wind
|
|
9.3
|
5.3
|
5.2
|
|
Renewables
pipeline - onshore wind
|
|
6.1
|
6.3
|
-
|
|
Renewables
pipeline - solar
|
|
28.5
|
28.1
|
21.7
|
|
Total Developed renewables to FID and Renewables
pipeline
|
|
50.0
|
45.7
|
31.5
|
(c)
Because of rounding, some totals may not agree exactly with the sum
of their component parts.
(d) 30
September 2023 and 30 June 2023 include 10.3GW of
onshore wind and solar pipeline in support of
hydrogen.
Top of page 9
oil production & operations
Financial results
●
The
replacement cost (RC) profit before interest and tax for
the third quarter and nine months was $3,427
million and $9,312 million respectively, compared
with $6,965 million and $18,033 million for the
same periods in 2022. The third quarter and nine
months are adjusted by a favourable impact of net adjusting
items* of $291 million and $80
million respectively, compared with a favourable impact of net
adjusting items of $1,754 million and $2,237
million for the same periods in 2022.
●
After
adjusting items, the underlying RC profit before interest
and tax* for the third quarter and nine
months was $3,136 million and $9,232
million respectively, compared with $5,211
million and $15,796 million for the same periods
in 2022.
●
The
underlying RC profit for the third quarter and nine
months compared to the same periods in 2022, reflects
lower realizations, and the impact of portfolio changes, partly
offset by higher volumes.
Operational update
●
Reported
production for the quarter was 1,382mboe/d, 5.0% higher than
the third quarter of 2022. Underlying production*
for the quarter was 5.1% higher compared with
the third quarter of 2022 reflecting reduced
seasonal maintenance, major projects* and bpx energy
performance.
●
Reported
production for the nine months was 1,371mboe/d, 6.1%
higher than the same period of 2022. Underlying production for
the nine months was 5.6% higher compared with the same
period of 2022 reflecting bpx energy performance, reduced seasonal
maintenance and major projects.
Strategic Progress
●
In
August bpx energy successfully brought online 'Bingo', its second
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).
●
During
the third quarter the Azeri Central East (ACE) platform topsides
were safely installed in the field. This is the 9th and most
automated platform installed in the giant Azeri Chirag Gunashli
(ACG) field with approximately 90,000 barrels a day installed
capacity (bp 30.37% operator).
●
Regulatory
approval was received on 8 September 2023 for the Murlach oil and
gas development in the North Sea, a two well redevelopment of the
Marnock-Skua field back to the ETAP (Eastern Trough Area Project)
hub (bp 80% operator).
●
In
September, bp and its coventurers in the Clair joint venture, made
the final investment decision to proceed with the construction and
operation of the Shetland Crossover Pipeline, reinforcing the gas
export network and supporting UK security of supply (bp 45%
operator).
●
Moving
forward with concept selection for a bp-operated Tiber development
project in the Gulf of Mexico.
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
Profit before interest and tax
|
|
3,426
|
2,568
|
6,966
|
|
9,312
|
18,028
|
|
Inventory holding (gains) losses*
|
|
1
|
-
|
(1)
|
|
-
|
5
|
|
RC profit before interest and tax
|
|
3,427
|
2,568
|
6,965
|
|
9,312
|
18,033
|
|
Net (favourable) adverse impact of adjusting items
|
|
(291)
|
209
|
(1,754)
|
|
(80)
|
(2,237)
|
|
Underlying RC profit before interest and tax
|
|
3,136
|
2,777
|
5,211
|
|
9,232
|
15,796
|
|
Taxation on an underlying RC basis
|
|
(1,386)
|
(1,413)
|
(2,921)
|
|
(4,565)
|
(7,128)
|
|
Underlying RC profit before interest
|
|
1,750
|
1,364
|
2,290
|
|
4,667
|
8,668
|
Top of page 10
oil production & operations (continued)
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|
Total depreciation, depletion and amortization
|
|
1,432
|
1,370
|
1,381
|
|
4,129
|
4,181
|
|
|
|
|
|
|
|
|
|
|
Exploration write-offs
|
|
|
|
|
|
|
|
|
Exploration write-offs
|
|
59
|
242
|
180
|
|
352
|
310
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA*
|
|
|
|
|
|
|
|
|
Total adjusted EBITDA
|
|
4,627
|
4,389
|
6,772
|
|
13,713
|
20,287
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure*
|
|
|
|
|
|
|
|
|
Total capital expenditure
|
|
1,644
|
1,478
|
1,386
|
|
4,642
|
3,848
|
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
Production (net of
royalties)(a)
|
|
|
|
|
|
|
|
|
Liquids* (mb/d)
|
|
1,011
|
1,000
|
959
|
|
1,005
|
947
|
|
Natural gas (mmcf/d)
|
|
2,155
|
2,140
|
2,075
|
|
2,118
|
2,001
|
|
Total hydrocarbons* (mboe/d)
|
|
1,382
|
1,369
|
1,317
|
|
1,371
|
1,292
|
|
|
|
|
|
|
|
|
|
|
Average realizations*(b)
|
|
|
|
|
|
|
|
|
Liquids ($/bbl)
|
|
71.10
|
69.19
|
93.14
|
|
70.65
|
92.35
|
|
Natural
gas(c) ($/mcf)
|
|
3.44
|
3.23
|
12.12
|
|
4.37
|
10.54
|
|
Total
hydrocarbons*(c) ($/boe)
|
|
56.76
|
54.57
|
86.83
|
|
57.86
|
84.57
|
(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)
Realizations calculation methodology has been changed to reflect
gas price fluctuations within the North Sea region. Third quarter
2022 and nine months 2022 were restated. There is no impact on
financial results.
Top of page 11
customers & products
Financial results
●
The replacement cost
(RC) profit before interest and tax for the third
quarter and nine months was $1,549
million and $4,784 million respectively, compared
with $2,586 million and $8,098 million for the
same periods in 2022. The third quarter and nine
months are adjusted by an adverse impact of net adjusting
items* of $506 million and $826
million respectively, compared with an adverse impact of net
adjusting items of $139 million and $789
million for the same periods in 2022. Adjusting items
include impacts of fair value accounting effects*, relative to
management's internal measure of performance, which are an adverse
impact of $198 million for the quarter and $230
million for the nine months in 2023, compared
with an adverse impact of $59 million and $498
million for the same periods in 2022.
●
After
adjusting items, the underlying RC profit before interest
and tax* for the third quarter and nine
months was $2,055 million and $5,610
million respectively, compared with $2,725
million and $8,887 million for the same periods
in 2022.
●
The
customers & products result for the third quarter was lower
than the same period in 2022, with lower results in both customers
and refining. The result for the nine months was significantly
lower than the same period in 2022, primarily reflecting a lower
refining and oil trading performance.
●
customers - the convenience and mobility
results, excluding Castrol, for the third quarter and nine
months were lower than the same periods in 2022. In the third
quarter, the benefits of a strong convenience performance and
higher volumes were more than offset by a weaker retail
performance, compared with the same period last year, which had
benefited from higher margins as a result of falling cost of
supply. In addition, the result included higher costs, including
increased expenditure in our transition growth* engines,
inflationary impacts and increased
depreciation.
Castrol result for the third
quarter was higher than the same period in 2022, primarily due to
higher margins. The result for the nine months
was lower, with higher margins more than offset by higher costs and
adverse foreign exchange impacts.
●
products -
the products results for the third quarter and nine
months were lower compared with the same periods in 2022,
primarily due to lower industry refining margins. In refining, the
result for the third quarter reflected lower realized refining
margins, including the impact of narrower North American heavy
crude differentials, and lower commercial optimization
opportunities compared to the strong performance in the same period
last year. This was partially offset by lower maintenance activity.
In addition, the result for the nine months was impacted by higher
turnaround activity. The oil trading contribution for the
third quarter was very strong compared to the average result
in the same period last year. The result for the nine months
however was lower, as the first half of 2022 benefited from an
exceptionally strong oil trading performance.
Operational update
●
bp-operated
refining availability* for the third quarter and nine
months was 96.3% and 96.0% respectively, higher
compared with 94.3% and 94.4% for the same periods
in 2022.
Strategic progress
●
In
support of bp's convenience transition growth engine
delivery, bp signed an agreement in August with Auchan to extend
its successful strategic convenience partnership in Poland, with
plans to add more than 100 EasyAuchan stores to its retail network
by the end of 2025. In addition, in September, bp strengthened its
BPme Rewards loyalty scheme with the launch of loyalty pricing,
giving customers exclusive discounts on retail store products at
around 300 bp company-owned retail sites across the
UK.
●
In
August, bp announced it had approved $500 million of
investment in the US to begin building its EV network over the next
two to three years. As part of this investment, in October, bp
announced it had entered into an agreement with Tesla for the
future purchase of $100 million of ultra-fast
chargers.
●
In
September, bp pulse, The EV Network and NEC Group, launched the
UK's largest public EV charging hub at the NEC campus in
Birmingham, UK. The new Gigahub™ at the NEC
boasts 30 ultra-fast 150KW and 150 fast 7kW charge
points enabling 180 EVs to charge simultaneously.
●
In September, Castrol opened the
Castrol Americas Technology Center, in Wayne, New Jersey. This
is a 12,000 square foot, state-of-the-art laboratory to
develop and test fluids for electric vehicles, engine and driveline
oils and industrial lubricants.
●
In
October, bp's Archaea Energy announced the official start-up of its
original Archaea Modular Design (AMD) renewable natural gas plant
in Medora, Indiana, located next to a landfill site
owned by Rumpke Waste and Recycling.
Top of page 12
customers & products (continued)
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
Profit (loss) before interest and tax
|
|
3,143
|
(177)
|
(269)
|
|
5,044
|
10,880
|
|
Inventory holding (gains) losses*
|
|
(1,594)
|
732
|
2,855
|
|
(260)
|
(2,782)
|
|
RC profit before interest and tax
|
|
1,549
|
555
|
2,586
|
|
4,784
|
8,098
|
|
Net (favourable) adverse impact of adjusting items
|
|
506
|
241
|
139
|
|
826
|
789
|
|
Underlying RC profit before interest and tax
|
|
2,055
|
796
|
2,725
|
|
5,610
|
8,887
|
|
Of
which:(a)
|
|
|
|
|
|
|
|
|
customers
- convenience & mobility
|
|
670
|
701
|
1,137
|
|
1,762
|
2,338
|
|
Castrol - included in customers
|
|
185
|
171
|
151
|
|
517
|
630
|
|
products
- refining & trading
|
|
1,385
|
95
|
1,588
|
|
3,848
|
6,549
|
|
Taxation on an underlying RC basis
|
|
(167)
|
(271)
|
(725)
|
|
(1,215)
|
(1,908)
|
|
Underlying RC profit before interest
|
|
1,888
|
525
|
2,000
|
|
4,395
|
6,979
|
(a)
A reconciliation to RC profit before interest and tax by business
is provided on page 29.
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
Adjusted EBITDA*(b)
|
|
|
|
|
|
|
|
|
customers - convenience & mobility
|
|
1,151
|
1,149
|
1,448
|
|
3,032
|
3,290
|
|
Castrol - included in customers
|
|
228
|
213
|
187
|
|
641
|
743
|
|
products - refining & trading
|
|
1,819
|
541
|
1,974
|
|
5,184
|
7,726
|
|
|
|
2,970
|
1,690
|
3,422
|
|
8,216
|
11,016
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|
Total depreciation, depletion and amortization
|
|
915
|
894
|
697
|
|
2,606
|
2,129
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure*
|
|
|
|
|
|
|
|
|
customers - convenience & mobility
|
|
435
|
1,452
|
404
|
|
2,345
|
1,085
|
|
Castrol - included in customers
|
|
60
|
44
|
42
|
|
172
|
137
|
|
products - refining & trading
|
|
367
|
406
|
309
|
|
1,305
|
1,018
|
|
Total capital expenditure
|
|
802
|
1,858
|
713
|
|
3,650
|
2,103
|
(b)
A reconciliation to RC profit before interest and tax by business
is provided on page 29.
|
Retail(c)
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
bp retail sites* - total (#)
|
|
21,150
|
21,100
|
20,550
|
|
21,150
|
20,550
|
|
Strategic
convenience sites*
|
|
2,750
|
2,750
|
2,250
|
|
2,750
|
2,250
|
(c)
Reported to the nearest 50.
|
Marketing sales of refined products (mb/d)
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
US
|
|
1,280
|
1,275
|
1,143
|
|
1,212
|
1,140
|
|
Europe
|
|
1,093
|
1,056
|
1,098
|
|
1,041
|
1,005
|
|
Rest of World
|
|
474
|
472
|
451
|
|
469
|
454
|
|
|
|
2,847
|
2,803
|
2,692
|
|
2,722
|
2,599
|
|
Trading/supply sales of refined products
|
|
392
|
353
|
355
|
|
359
|
359
|
|
Total sales volume of refined products
|
|
3,239
|
3,156
|
3,047
|
|
3,081
|
2,958
|
Top of page 13
customers & products (continued)
|
Refining marker margin*
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
bp
average refining marker margin (RMM)(d) ($/bbl)
|
|
31.8
|
24.7
|
35.5
|
|
28.2
|
33.4
|
(d) The
RMM in the quarter is
calculated based on bp's current refinery portfolio. On a
comparative basis, the third quarter and nine months 2022 RMM would
be $35.4/bbl and $33.4/bbl
respectively.
|
Refinery throughputs (mb/d)
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
US
|
|
690
|
638
|
703
|
|
671
|
700
|
|
Europe
|
|
760
|
726
|
809
|
|
773
|
818
|
|
Rest of World
|
|
-
|
-
|
-
|
|
-
|
29
|
|
Total refinery throughputs
|
|
1,450
|
1,364
|
1,512
|
|
1,444
|
1,547
|
|
bp-operated refining availability* (%)
|
|
96.3
|
95.7
|
94.3
|
|
96.0
|
94.4
|
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. It also includes
Rosneft results up to 27 February 2022.
Financial results
●
The
replacement cost (RC) loss before interest and tax for
the third quarter and nine months was $500
million and $887 million respectively, compared with
a loss of $1,093 million and $26,840
million for the same periods in 2022. The third
quarter and nine months are adjusted by an adverse impact of
net adjusting items* of $197 million and $118
million respectively, compared with an adverse impact of net
adjusting items of $688 million and $25,975
million for the same periods in 2022. Adjusting items
include impacts of fair value accounting effects* which are an
adverse impact of $146 million for the quarter and a
favourable impact of $51 million for the nine
months in 2023, an adverse impact of $785
million and $1,896 million for the same periods
in 2022. The adjusting items for the nine months in
2022 mainly relate to Rosneft.
●
After
adjusting RC loss for net adjusting items, the underlying
RC loss before interest and tax* for the third
quarter and nine months was $303
million and $769 million respectively, compared with
a loss of $405 million and $865 million for the
same periods in 2022.
Strategic progress
●
In
August bp ventures invested $5 million in Advanced Ionics, a
company developing a new category of hydrogen electrolyzers,
supporting the expansion of green hydrogen*
production.
●
In
August bp ventures announced that it had invested $5 million in
Dynamon, which provides advanced data analytics and AI tools
helping the road transport industry maximize
sustainability.
●
In
July bp ventures invested $30 million in Electric Hydrogen, a
company which is developing high efficiency and lower cost
electrolyzers with the aim of delivering its first 100MW product in
2024.
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
Profit (loss) before interest and tax
|
|
(500)
|
(297)
|
(1,093)
|
|
(887)
|
(26,840)
|
|
Inventory holding (gains) losses*
|
|
-
|
-
|
-
|
|
-
|
-
|
|
RC profit (loss) before interest and tax
|
|
(500)
|
(297)
|
(1,093)
|
|
(887)
|
(26,840)
|
|
Net
(favourable) adverse impact of adjusting items(a)
|
|
197
|
127
|
688
|
|
118
|
25,975
|
|
Underlying RC profit (loss) before interest and tax
|
|
(303)
|
(170)
|
(405)
|
|
(769)
|
(865)
|
|
Taxation on an underlying RC basis
|
|
162
|
10
|
206
|
|
201
|
396
|
|
Underlying RC profit (loss) before interest
|
|
(141)
|
(160)
|
(199)
|
|
(568)
|
(469)
|
(a)
Includes
fair value accounting effects relating
to the hybrid bonds that were issued on 17 June 2020. See page
32 for more information.
other businesses & corporate (excluding Rosneft)
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
Profit (loss) before interest and tax
|
|
(500)
|
(297)
|
(1,093)
|
|
(887)
|
(2,807)
|
|
Inventory holding (gains) losses*
|
|
-
|
-
|
-
|
|
-
|
-
|
|
RC profit (loss) before interest and tax
|
|
(500)
|
(297)
|
(1,093)
|
|
(887)
|
(2,807)
|
|
Net (favourable) adverse impact of adjusting items
|
|
197
|
127
|
688
|
|
118
|
1,942
|
|
Underlying RC profit (loss) before interest and tax
|
|
(303)
|
(170)
|
(405)
|
|
(769)
|
(865)
|
|
Taxation on an underlying RC basis
|
|
162
|
10
|
206
|
|
201
|
396
|
|
Underlying RC profit (loss) before interest
|
|
(141)
|
(160)
|
(199)
|
|
(568)
|
(469)
|
other businesses & corporate (Rosneft)
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
Profit (loss) before interest and tax
|
|
-
|
-
|
-
|
|
-
|
(24,033)
|
|
Inventory holding (gains) losses*
|
|
-
|
-
|
-
|
|
-
|
-
|
|
RC profit (loss) before interest and tax
|
|
-
|
-
|
-
|
|
-
|
(24,033)
|
|
Net (favourable) adverse impact of adjusting items
|
|
-
|
-
|
-
|
|
-
|
24,033
|
|
Underlying RC profit (loss) before interest and tax
|
|
-
|
-
|
-
|
|
-
|
-
|
|
Taxation on an underlying RC basis
|
|
-
|
-
|
-
|
|
-
|
-
|
|
Underlying RC profit (loss) before interest
|
|
-
|
-
|
-
|
|
-
|
-
|
Top of page 15
Financial statements
Group income statement
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
|
|
|
|
|
|
|
|
|
Sales
and other operating revenues (Note
5)
|
|
53,269
|
48,538
|
55,011
|
|
157,989
|
172,135
|
|
Earnings from joint ventures - after interest and
tax
|
|
(198)
|
360
|
498
|
|
357
|
939
|
|
Earnings from associates - after interest and
tax
|
|
271
|
231
|
275
|
|
675
|
1,273
|
|
Interest and other income
|
|
410
|
378
|
159
|
|
1,036
|
495
|
|
Gains on sale of businesses and fixed assets
|
|
264
|
(28)
|
1,866
|
|
389
|
3,693
|
|
Total revenues and other income
|
|
54,016
|
49,479
|
57,809
|
|
160,446
|
178,535
|
|
Purchases
|
|
29,951
|
29,172
|
39,993
|
|
88,245
|
106,942
|
|
Production and manufacturing expenses
|
|
6,080
|
6,231
|
7,193
|
|
19,293
|
21,769
|
|
Production and similar taxes
|
|
456
|
404
|
639
|
|
1,334
|
1,768
|
|
Depreciation,
depletion and amortization (Note
6)
|
|
4,145
|
3,923
|
3,467
|
|
11,868
|
10,604
|
|
Net
impairment and losses on sale of businesses and fixed assets
(Note 3)
|
|
542
|
1,269
|
417
|
|
1,899
|
26,893
|
|
Exploration expense
|
|
97
|
293
|
225
|
|
496
|
445
|
|
Distribution and administration expenses
|
|
4,458
|
3,834
|
3,262
|
|
12,039
|
9,795
|
|
Profit (loss) before interest and taxation
|
|
8,287
|
4,353
|
2,613
|
|
25,272
|
319
|
|
Finance costs
|
|
1,039
|
920
|
649
|
|
2,802
|
1,869
|
|
Net
finance (income) expense relating to pensions and other
post-retirement benefits
|
|
(61)
|
(61)
|
(16)
|
|
(180)
|
(53)
|
|
Profit (loss) before taxation
|
|
7,309
|
3,494
|
1,980
|
|
22,650
|
(1,497)
|
|
Taxation
|
|
2,240
|
1,541
|
3,964
|
|
7,206
|
11,021
|
|
Profit (loss) for the period
|
|
5,069
|
1,953
|
(1,984)
|
|
15,444
|
(12,518)
|
|
Attributable to
|
|
|
|
|
|
|
|
|
bp
shareholders
|
|
4,858
|
1,792
|
(2,163)
|
|
14,868
|
(13,290)
|
|
Non-controlling
interests
|
|
211
|
161
|
179
|
|
576
|
772
|
|
|
|
5,069
|
1,953
|
(1,984)
|
|
15,444
|
(12,518)
|
|
|
|
|
|
|
|
|
|
|
Earnings per share (Note 7)
|
|
|
|
|
|
|
|
|
Profit (loss) for the period attributable to bp
shareholders
|
|
|
|
|
|
|
|
|
Per
ordinary share (cents)
|
|
|
|
|
|
|
|
|
Basic
|
|
28.24
|
10.22
|
(11.45)
|
|
84.77
|
(69.01)
|
|
Diluted
|
|
27.59
|
10.01
|
(11.45)
|
|
82.99
|
(69.01)
|
|
Per
ADS (dollars)
|
|
|
|
|
|
|
|
|
Basic
|
|
1.69
|
0.61
|
(0.69)
|
|
5.09
|
(4.14)
|
|
Diluted
|
|
1.66
|
0.60
|
(0.69)
|
|
4.98
|
(4.14)
|
Top of page 16
Condensed group statement of comprehensive income
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) for the period
|
|
5,069
|
1,953
|
(1,984)
|
|
15,444
|
(12,518)
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to profit or
loss
|
|
|
|
|
|
|
|
|
Currency
translation differences(a)
|
|
(590)
|
11
|
(1,725)
|
|
(126)
|
(5,928)
|
|
Exchange (gains)
losses on translation of foreign operations reclassified to gain or
loss on sale of businesses and fixed assets(b)
|
|
(2)
|
-
|
-
|
|
(2)
|
10,791
|
|
Cash
flow hedges and costs of hedging
|
|
(56)
|
(56)
|
(142)
|
|
434
|
179
|
|
Share
of items relating to equity-accounted entities, net of
tax
|
|
25
|
(27)
|
(134)
|
|
(205)
|
10
|
|
Income
tax relating to items that may be reclassified
|
|
(69)
|
71
|
(54)
|
|
(74)
|
(226)
|
|
|
|
(692)
|
(1)
|
(2,055)
|
|
27
|
4,826
|
|
Items that will not be reclassified to profit or loss
|
|
|
|
|
|
|
|
|
Remeasurements
of the net pension and other post-retirement benefit liability or
asset
|
|
(111)
|
(855)
|
112
|
|
(1,053)
|
1,848
|
|
Cash
flow hedges that will subsequently be transferred to the balance
sheet
|
|
(1)
|
-
|
(1)
|
|
(1)
|
(5)
|
|
Income
tax relating to items that will not be reclassified
|
|
57
|
308
|
19
|
|
388
|
(470)
|
|
|
|
(55)
|
(547)
|
130
|
|
(666)
|
1,373
|
|
Other comprehensive income
|
|
(747)
|
(548)
|
(1,925)
|
|
(639)
|
6,199
|
|
Total comprehensive income
|
|
4,322
|
1,405
|
(3,909)
|
|
14,805
|
(6,319)
|
|
Attributable to
|
|
|
|
|
|
|
|
|
bp
shareholders
|
|
4,140
|
1,240
|
(4,042)
|
|
14,241
|
(6,978)
|
|
Non-controlling
interests
|
|
182
|
165
|
133
|
|
564
|
659
|
|
|
|
4,322
|
1,405
|
(3,909)
|
|
14,805
|
(6,319)
|
(a)
Third quarter 2022 is principally affected by movements in the
Pound Sterling against the US dollar. Nine months 2022 is
principally affected by movements in the Russian rouble and Pound
Sterling against the US dollar.
(b)
Nine months 2022 predominantly relates to the loss of significant
influence over Rosneft.
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 2023
|
|
67,553
|
13,390
|
2,047
|
82,990
|
|
|
|
|
|
|
|
|
Total comprehensive income
|
|
14,241
|
438
|
126
|
14,805
|
|
Dividends
|
|
(3,598)
|
-
|
(326)
|
(3,924)
|
|
Repurchase of ordinary share capital
|
|
(6,666)
|
-
|
-
|
(6,666)
|
|
Share-based payments, net of tax
|
|
531
|
-
|
-
|
531
|
|
Issue of perpetual hybrid bonds
|
|
(1)
|
163
|
-
|
162
|
|
Payments on perpetual hybrid bonds
|
|
(5)
|
(494)
|
-
|
(499)
|
|
Transactions
involving non-controlling interests, net of tax
|
|
363
|
-
|
(86)
|
277
|
|
At 30 September 2023
|
|
72,418
|
13,497
|
1,761
|
87,676
|
|
|
|
|
|
|
|
|
|
|
bp shareholders'
|
Non-controlling interests
|
Total
|
|
|
$ million
|
|
equity(a)
|
Hybrid bonds
|
Other interest
|
equity
|
|
At 1 January 2022
|
|
75,463
|
13,041
|
1,935
|
90,439
|
|
|
|
|
|
|
|
|
Total comprehensive income
|
|
(6,978)
|
383
|
276
|
(6,319)
|
|
Dividends
|
|
(3,267)
|
-
|
(194)
|
(3,461)
|
|
Issue
of ordinary share capital(b)
|
|
820
|
-
|
-
|
820
|
|
Repurchase of ordinary share capital
|
|
(7,988)
|
-
|
-
|
(7,988)
|
|
Share-based payments, net of tax
|
|
631
|
-
|
-
|
631
|
|
Issue of perpetual hybrid bonds
|
|
(3)
|
325
|
-
|
322
|
|
Payments on perpetual hybrid bonds
|
|
15
|
(462)
|
-
|
(447)
|
|
Transactions
involving non-controlling interests, net of tax
|
|
(512)
|
-
|
(152)
|
(664)
|
|
At 30 September 2022
|
|
58,181
|
13,287
|
1,865
|
73,333
|
(a)
In 2022 $9.2 billion of the opening foreign currency translation
reserve has been moved to the profit and loss account reserve as a
result of bp's decision to exit its shareholding in Rosneft and its
other businesses with Rosneft in Russia.
(b)
Relates to ordinary shares issued as non-cash consideration for the
acquisition of the public units of BP Midstream Partners
LP.
Top of page 18
Group balance sheet
|
|
|
30 September
|
31 December
|
|
$ million
|
|
2023
|
2022
|
|
Non-current assets
|
|
|
|
|
Property, plant and equipment
|
|
107,163
|
106,044
|
|
Goodwill
|
|
12,283
|
11,960
|
|
Intangible assets
|
|
9,997
|
10,200
|
|
Investments in joint ventures
|
|
12,635
|
12,400
|
|
Investments in associates
|
|
7,954
|
8,201
|
|
Other investments
|
|
2,337
|
2,670
|
|
Fixed assets
|
|
152,369
|
151,475
|
|
Loans
|
|
1,656
|
1,271
|
|
Trade and other receivables
|
|
1,066
|
1,092
|
|
Derivative financial instruments
|
|
9,495
|
12,841
|
|
Prepayments
|
|
600
|
576
|
|
Deferred tax assets
|
|
3,470
|
3,908
|
|
Defined benefit pension plan surpluses
|
|
8,173
|
9,269
|
|
|
|
176,829
|
180,432
|
|
Current assets
|
|
|
|
|
Loans
|
|
363
|
315
|
|
Inventories
|
|
25,671
|
28,081
|
|
Trade and other receivables
|
|
31,558
|
34,010
|
|
Derivative financial instruments
|
|
12,950
|
11,554
|
|
Prepayments
|
|
1,333
|
2,092
|
|
Current tax receivable
|
|
674
|
621
|
|
Other investments
|
|
932
|
578
|
|
Cash and cash equivalents
|
|
29,926
|
29,195
|
|
|
|
103,407
|
106,446
|
|
Assets
classified as held for sale (Note
2)
|
|
-
|
1,242
|
|
|
|
103,407
|
107,688
|
|
Total assets
|
|
280,236
|
288,120
|
|
Current liabilities
|
|
|
|
|
Trade and other payables
|
|
60,440
|
63,984
|
|
Derivative financial instruments
|
|
6,542
|
12,618
|
|
Accruals
|
|
5,958
|
6,398
|
|
Lease liabilities
|
|
2,536
|
2,102
|
|
Finance debt
|
|
2,872
|
3,198
|
|
Current tax payable
|
|
3,054
|
4,065
|
|
Provisions
|
|
4,193
|
6,332
|
|
|
|
85,595
|
98,697
|
|
Liabilities
directly associated with assets classified as held for sale
(Note 2)
|
|
-
|
321
|
|
|
|
85,595
|
99,018
|
|
Non-current liabilities
|
|
|
|
|
Other payables
|
|
9,465
|
10,387
|
|
Derivative financial instruments
|
|
11,409
|
13,537
|
|
Accruals
|
|
1,273
|
1,233
|
|
Lease liabilities
|
|
8,343
|
6,447
|
|
Finance debt
|
|
45,938
|
43,746
|
|
Deferred tax liabilities
|
|
10,293
|
10,526
|
|
Provisions
|
|
15,497
|
14,992
|
|
Defined benefit pension plan and other post-retirement benefit plan
deficits
|
|
4,747
|
5,244
|
|
|
|
106,965
|
106,112
|
|
Total liabilities
|
|
192,560
|
205,130
|
|
Net assets
|
|
87,676
|
82,990
|
|
Equity
|
|
|
|
|
bp
shareholders' equity
|
|
72,418
|
67,553
|
|
Non-controlling interests
|
|
15,258
|
15,437
|
|
Total equity
|
|
87,676
|
82,990
|
Top of page 19
Condensed group cash flow statement
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
Operating activities
|
|
|
|
|
|
|
|
|
Profit (loss) before taxation
|
|
7,309
|
3,494
|
1,980
|
|
22,650
|
(1,497)
|
|
Adjustments to
reconcile profit (loss) before taxation to net cash provided by
operating activities
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization and exploration expenditure written
off
|
|
4,219
|
4,164
|
3,657
|
|
12,233
|
10,922
|
|
Net
impairment and (gain) loss on sale of businesses and fixed
assets
|
|
278
|
1,297
|
(1,449)
|
|
1,510
|
23,200
|
|
Earnings from
equity-accounted entities, less dividends received
|
|
421
|
(31)
|
(391)
|
|
391
|
(1,412)
|
|
Net
charge for interest and other finance expense, less net interest
paid
|
|
136
|
102
|
72
|
|
301
|
210
|
|
Share-based
payments
|
|
298
|
243
|
251
|
|
519
|
629
|
|
Net
operating charge for pensions and other post-retirement benefits,
less contributions and benefit payments for unfunded
plans
|
|
(40)
|
(47)
|
(15)
|
|
(130)
|
(197)
|
|
Net
charge for provisions, less payments
|
|
(342)
|
(221)
|
173
|
|
(1,662)
|
1,453
|
|
Movements in
inventories and other current and non-current assets and
liabilities
|
|
(783)
|
(742)
|
6,764
|
|
(5,280)
|
577
|
|
Income
taxes paid
|
|
(2,749)
|
(1,966)
|
(2,754)
|
|
(7,870)
|
(6,524)
|
|
Net cash provided by operating activities
|
|
8,747
|
6,293
|
8,288
|
|
22,662
|
27,361
|
|
Investing activities
|
|
|
|
|
|
|
|
|
Expenditure on property, plant and equipment, intangible and other
assets
|
|
(3,456)
|
(3,453)
|
(3,105)
|
|
(10,038)
|
(8,373)
|
|
Acquisitions, net of cash acquired
|
|
(9)
|
(804)
|
(3)
|
|
(761)
|
(8)
|
|
Investment in joint ventures
|
|
(102)
|
(50)
|
(40)
|
|
(692)
|
(493)
|
|
Investment in associates
|
|
(36)
|
(7)
|
(46)
|
|
(51)
|
(87)
|
|
Total cash capital expenditure
|
|
(3,603)
|
(4,314)
|
(3,194)
|
|
(11,542)
|
(8,961)
|
|
Proceeds from disposal of fixed assets
|
|
59
|
28
|
12
|
|
102
|
682
|
|
Proceeds from disposal of businesses, net of cash
disposed
|
|
79
|
60
|
594
|
|
924
|
1,254
|
|
Proceeds from loan repayments
|
|
12
|
21
|
15
|
|
39
|
60
|
|
Cash provided from investing activities
|
|
150
|
109
|
621
|
|
1,065
|
1,996
|
|
Net cash used in investing activities
|
|
(3,453)
|
(4,205)
|
(2,573)
|
|
(10,477)
|
(6,965)
|
|
Financing activities
|
|
|
|
|
|
|
|
|
Net
issue (repurchase) of shares (Note
7)
|
|
(2,047)
|
(2,073)
|
(2,876)
|
|
(6,568)
|
(6,756)
|
|
Lease liability payments
|
|
(663)
|
(620)
|
(478)
|
|
(1,838)
|
(1,448)
|
|
Proceeds from long-term financing
|
|
8
|
3,643
|
1
|
|
6,046
|
2,003
|
|
Repayments of long-term financing
|
|
(264)
|
(2,828)
|
(4,035)
|
|
(3,891)
|
(9,500)
|
|
Net increase (decrease) in short-term debt
|
|
(71)
|
(348)
|
(618)
|
|
(948)
|
(1,582)
|
|
Issue of perpetual hybrid bonds
|
|
30
|
87
|
194
|
|
162
|
322
|
|
Payments relating to perpetual hybrid bonds
|
|
(258)
|
(250)
|
(180)
|
|
(744)
|
(489)
|
|
Payments
relating to transactions involving non-controlling interests (Other
interest)
|
|
-
|
-
|
(2)
|
|
(180)
|
(8)
|
|
Receipts
relating to transactions involving non-controlling interests (Other
interest)
|
|
527
|
2
|
3
|
|
536
|
10
|
|
Dividends paid - bp shareholders
|
|
(1,249)
|
(1,153)
|
(1,140)
|
|
(3,585)
|
(3,270)
|
|
-
non-controlling interests
|
|
(191)
|
(67)
|
(66)
|
|
(326)
|
(194)
|
|
Net cash provided by (used in) financing activities
|
|
(4,178)
|
(3,607)
|
(9,197)
|
|
(11,336)
|
(20,912)
|
|
Currency translation differences relating to cash and cash
equivalents
|
|
(104)
|
-
|
(322)
|
|
(118)
|
(861)
|
|
Increase (decrease) in cash and cash equivalents
|
|
1,012
|
(1,519)
|
(3,804)
|
|
731
|
(1,377)
|
|
Cash and cash equivalents at beginning of period
|
|
28,914
|
30,433
|
33,108
|
|
29,195
|
30,681
|
|
Cash and cash equivalents at end of period
|
|
29,926
|
28,914
|
29,304
|
|
29,926
|
29,304
|
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 2022 included
in BP
Annual Report and Form 20-F 2022.
The directors consider it appropriate to adopt the going concern
basis of accounting in preparing these interim financial
statements. bp prepares its consolidated
financial statements included within BP Annual Report and Form 20-F
on the basis of International Financial Reporting Standards (IFRS)
as issued by the International Accounting Standards Board (IASB),
IFRS as adopted by the UK, and European Union (EU), and in
accordance with the provisions of the UK Companies Act 2006 as
applicable to companies reporting under international accounting
standards. IFRS as adopted by the UK does not differ from IFRS as
adopted by the EU except for the Pillar Two amendments noted below.
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 2023 which are the
same as those used in preparing BP Annual Report and Form 20-F
2022.
In May 2023 the IASB issued International Tax Reform - Pillar Two
Model Rules - Amendments to IAS 12 Income Taxes to clarify the
application of IAS 12 to tax legislation enacted or substantively
enacted to implement Pillar Two of the Organisation for Economic
Co-operation and Development's Base Erosion and Profit Shifting
project, which aims to address the tax challenges arising from the
digitalisation of the economy. The amendments include a mandatory
temporary exception from accounting for deferred tax on such tax
law. The amendments were adopted by the UK in July and are yet to
be adopted by the EU, however no impact is expected on the
financial statements for 2023.
In July 2023 the UK government enacted legislation to implement the
Pillar Two rules. The legislation is effective for bp from 1
January 2024 and includes an income inclusion rule and a domestic
minimum tax, which together are designed to ensure a minimum
effective tax rate of 15% in each country in which the group
operates. Similar legislation is being enacted by other governments
around the world. As a result of the amendments to IAS 12, no
impact is expected on the financial statements in 2023, and work is
ongoing to assess the potential impact in the 2024 financial
statements.
There are no other new or amended standards or interpretations
adopted from 1 January 2023 onwards, including IFRS 17 'Insurance
Contracts,' 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 2022. These have been subsequently considered at the
end of each quarter to determine if any changes were required to
those judgements and estimates. No significant changes were
identified.
Investment in Rosneft
Since the first quarter 2022, bp accounts for its interest in
Rosneft and its other businesses with Rosneft within Russia, as
financial assets measured at fair value within 'Other investments'.
It is considered by management that any measure of fair value,
other than nil, would be subject to such high measurement
uncertainty that no estimate would provide useful information even
if it were accompanied by a description of the estimate made in
producing it and an explanation of the uncertainties that affect
the estimate. Accordingly, it is not
currently possible to estimate any carrying value other than zero
when determining the measurement of the interest in Rosneft
and the other businesses
with Rosneft within Russia as at 30 September
2023.
Top of page 21
Note 2. Non-current assets held for sale
There were no assets or liabilities classified as held for sale at
30 September 2023.
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 third quarter and nine months were $542 million
and $1,899 million respectively, compared with net charges of
$417 million and $26,893 million for the same periods in
2022 and include net impairment charges for the third quarter and
nine months of $612 million and $1,779 million
respectively, compared with net impairment reversals of
$11 million and charges of $14,777 million for the same
periods in 2022.
Third quarter and nine months of 2023 impairments includes a net
impairment charge of $224 million and $1,284 million
respectively, compared with net charges of $6 million and
$523 million for the same periods in 2022 in the gas & low
carbon energy segment. A further $540 million pre-tax impairment
charge relating to our offshore US wind assets has been recognised
in the third quarter 2023 through equity-accounted
earnings.
The impairment charge and the loss on sale of businesses and fixed
assets for 2022 mainly relates to bp's investment in Rosneft, which
has been reported in other businesses and corporate.
Note 4. Analysis of replacement cost profit (loss) before interest
and tax and reconciliation to profit (loss) before
taxation
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
gas & low carbon energy
|
|
2,275
|
2,289
|
(2,956)
|
|
11,911
|
(1,743)
|
|
oil production & operations
|
|
3,427
|
2,568
|
6,965
|
|
9,312
|
18,033
|
|
customers & products
|
|
1,549
|
555
|
2,586
|
|
4,784
|
8,098
|
|
other businesses & corporate
|
|
(500)
|
(297)
|
(1,093)
|
|
(887)
|
(26,840)
|
|
|
|
6,751
|
5,115
|
5,502
|
|
25,120
|
(2,452)
|
|
Consolidation adjustment - UPII*
|
|
(57)
|
(30)
|
(21)
|
|
(109)
|
(8)
|
|
RC profit (loss) before interest and tax
|
|
6,694
|
5,085
|
5,481
|
|
25,011
|
(2,460)
|
|
Inventory holding gains (losses)*
|
|
|
|
|
|
|
|
|
gas
& low carbon energy
|
|
-
|
-
|
(14)
|
|
1
|
2
|
|
oil
production & operations
|
|
(1)
|
-
|
1
|
|
-
|
(5)
|
|
customers
& products
|
|
1,594
|
(732)
|
(2,855)
|
|
260
|
2,782
|
|
Profit (loss) before interest and tax
|
|
8,287
|
4,353
|
2,613
|
|
25,272
|
319
|
|
Finance costs
|
|
1,039
|
920
|
649
|
|
2,802
|
1,869
|
|
Net
finance expense/(income) relating to pensions and other
post-retirement benefits
|
|
(61)
|
(61)
|
(16)
|
|
(180)
|
(53)
|
|
Profit (loss) before taxation
|
|
7,309
|
3,494
|
1,980
|
|
22,650
|
(1,497)
|
|
|
|
|
|
|
|
|
|
|
RC profit (loss) before interest and tax*
|
|
|
|
|
|
|
|
|
US
|
|
1,467
|
2,244
|
3,954
|
|
6,786
|
9,553
|
|
Non-US
|
|
5,227
|
2,841
|
1,527
|
|
18,225
|
(12,013)
|
|
|
|
6,694
|
5,085
|
5,481
|
|
25,011
|
(2,460)
|
Top of page 22
Note 5. Sales and other operating revenues
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
By segment
|
|
|
|
|
|
|
|
|
gas & low carbon energy
|
|
10,313
|
10,428
|
8,053
|
|
38,627
|
29,462
|
|
oil production & operations
|
|
6,225
|
5,777
|
8,599
|
|
18,155
|
26,261
|
|
customers & products
|
|
42,908
|
38,051
|
47,831
|
|
119,841
|
145,551
|
|
other businesses & corporate
|
|
672
|
590
|
552
|
|
2,000
|
1,520
|
|
|
|
60,118
|
54,846
|
65,035
|
|
178,623
|
202,794
|
|
|
|
|
|
|
|
|
|
|
Less: sales and other operating revenues between
segments
|
|
|
|
|
|
|
|
|
gas & low carbon energy
|
|
367
|
840
|
2,785
|
|
1,743
|
6,354
|
|
oil production & operations
|
|
5,747
|
5,236
|
7,589
|
|
17,244
|
23,378
|
|
customers & products
|
|
508
|
(180)
|
(276)
|
|
472
|
808
|
|
other businesses & corporate
|
|
227
|
412
|
(74)
|
|
1,175
|
119
|
|
|
|
6,849
|
6,308
|
10,024
|
|
20,634
|
30,659
|
|
|
|
|
|
|
|
|
|
|
External sales and other operating revenues
|
|
|
|
|
|
|
|
|
gas & low carbon energy
|
|
9,946
|
9,588
|
5,268
|
|
36,884
|
23,108
|
|
oil production & operations
|
|
478
|
541
|
1,010
|
|
911
|
2,883
|
|
customers & products
|
|
42,400
|
38,231
|
48,107
|
|
119,369
|
144,743
|
|
other businesses & corporate
|
|
445
|
178
|
626
|
|
825
|
1,401
|
|
Total sales and other operating revenues
|
|
53,269
|
48,538
|
55,011
|
|
157,989
|
172,135
|
|
|
|
|
|
|
|
|
|
|
By geographical area
|
|
|
|
|
|
|
|
|
US
|
|
22,032
|
20,065
|
22,451
|
|
61,257
|
68,934
|
|
Non-US
|
|
43,382
|
38,492
|
45,111
|
|
128,224
|
142,239
|
|
|
|
65,414
|
58,557
|
67,562
|
|
189,481
|
211,173
|
|
Less: sales and other operating revenues between areas
|
|
12,145
|
10,019
|
12,551
|
|
31,492
|
39,038
|
|
|
|
53,269
|
48,538
|
55,011
|
|
157,989
|
172,135
|
|
|
|
|
|
|
|
|
|
|
Revenues from contracts with customers
|
|
|
|
|
|
|
|
|
Sales and other operating revenues include the following in
relation to revenues from contracts with customers:
|
|
|
|
|
|
|
|
|
Crude oil
|
|
496
|
520
|
1,322
|
|
1,653
|
5,500
|
|
Oil products
|
|
35,486
|
31,218
|
40,036
|
|
96,845
|
115,054
|
|
Natural gas, LNG and NGLs
|
|
6,396
|
5,841
|
11,106
|
|
21,881
|
30,730
|
|
Non-oil products and other revenues from contracts with
customers
|
|
2,765
|
2,750
|
2,267
|
|
7,387
|
6,437
|
|
Revenue from contracts with customers
|
|
45,143
|
40,329
|
54,731
|
|
127,766
|
157,721
|
|
Other
operating revenues(a)
|
|
8,126
|
8,209
|
280
|
|
30,223
|
14,414
|
|
Total sales and other operating revenues
|
|
53,269
|
48,538
|
55,011
|
|
157,989
|
172,135
|
(a)
Principally relates to commodity derivative transactions including
sales of bp own production in trading books.
Top of page 23
Note 6. Depreciation, depletion and amortization
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
Total depreciation, depletion and amortization by
segment
|
|
|
|
|
|
|
|
|
gas & low carbon energy
|
|
1,543
|
1,407
|
1,177
|
|
4,390
|
3,635
|
|
oil production & operations
|
|
1,432
|
1,370
|
1,381
|
|
4,129
|
4,181
|
|
customers & products
|
|
915
|
894
|
697
|
|
2,606
|
2,129
|
|
other businesses & corporate
|
|
255
|
252
|
212
|
|
743
|
659
|
|
|
|
4,145
|
3,923
|
3,467
|
|
11,868
|
10,604
|
|
Total depreciation, depletion and amortization by geographical
area
|
|
|
|
|
|
|
|
|
US
|
|
1,479
|
1,338
|
1,180
|
|
4,071
|
3,422
|
|
Non-US
|
|
2,666
|
2,585
|
2,287
|
|
7,797
|
7,182
|
|
|
|
4,145
|
3,923
|
3,467
|
|
11,868
|
10,604
|
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 2022 annual general
meeting, 331 million ordinary shares repurchased for
cancellation were settled during the third quarter
2023 for a total cost of $2,047 million. A
further 92 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 $595
million. This amount has been accrued at 30 September 2023.
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.
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
Results for the period
|
|
|
|
|
|
|
|
|
Profit (loss) for the period attributable to bp
shareholders
|
|
4,858
|
1,792
|
(2,163)
|
|
14,868
|
(13,290)
|
|
Less: preference dividend
|
|
-
|
1
|
-
|
|
1
|
1
|
|
Profit (loss) attributable to bp ordinary shareholders
|
|
4,858
|
1,791
|
(2,163)
|
|
14,867
|
(13,291)
|
|
|
|
|
|
|
|
|
|
|
Number of shares (thousand)(a)(b)
|
|
|
|
|
|
|
|
|
Basic
weighted average number of shares outstanding
|
|
17,204,488
|
17,523,778
|
18,885,725
|
|
17,537,170
|
19,260,486
|
|
ADS
equivalent(c)
|
|
2,867,414
|
2,920,629
|
3,147,620
|
|
2,922,861
|
3,210,081
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding used to calculate diluted earnings per
share
|
|
17,609,601
|
17,900,984
|
18,885,725
|
|
17,914,383
|
19,260,486
|
|
ADS
equivalent(c)
|
|
2,934,933
|
2,983,497
|
3,147,620
|
|
2,985,730
|
3,210,081
|
|
|
|
|
|
|
|
|
|
|
Shares in issue at period-end
|
|
17,061,004
|
17,379,366
|
18,566,848
|
|
17,061,004
|
18,566,848
|
|
ADS
equivalent(c)
|
|
2,843,500
|
2,896,561
|
3,094,474
|
|
2,843,500
|
3,094,474
|
(a)
Excludes treasury shares and includes certain shares that will be
issued in the future under employee share-based payment
plans.
(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 third
quarter 2022 and nine months 2022 are 274,005 thousand (ADS
equivalent 45,668 thousand) and 217,311 thousand (ADS equivalent
36,218 thousand).
(c)
One ADS is equivalent to six ordinary shares.
Top of page 24
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 19 December
2023 to ordinary shareholders and American Depositary Share
(ADS) holders on the register on 10 November 2023. The
ex-dividend date will be 9 November 2023. The corresponding
amount in sterling is due to be announced on 6 December 2023,
calculated based on the average of the market exchange rates over
three dealing days between 30 November 2023 and 4
December 2023. 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 third quarter 2023 dividend. Ordinary
shareholders and ADS holders (subject to certain exceptions) will
be able to participate in a dividend reinvestment programme.
Details of the third quarter dividend and timetable are
available at bp.com/dividends and
further details of the dividend reinvestment programmes are
available at bp.com/drip.
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
Dividends paid per ordinary share
|
|
|
|
|
|
|
|
|
cents
|
|
7.270
|
6.610
|
6.006
|
|
20.490
|
16.926
|
|
pence
|
|
5.732
|
5.309
|
5.168
|
|
16.592
|
13.683
|
|
Dividends paid per ADS (cents)
|
|
43.62
|
39.66
|
36.04
|
|
122.94
|
101.56
|
Note 9. Net debt
|
Net debt*
|
|
30 September
|
30 June
|
30 September
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
Finance
debt(a)
|
|
48,810
|
49,738
|
46,560
|
|
Fair
value (asset) liability of hedges related to finance
debt(b)
|
|
3,440
|
2,836
|
4,746
|
|
|
|
52,250
|
52,574
|
51,306
|
|
Less: cash and cash equivalents
|
|
29,926
|
28,914
|
29,304
|
|
Net
debt(c)
|
|
22,324
|
23,660
|
22,002
|
|
Total equity
|
|
87,676
|
85,603
|
73,333
|
|
Gearing*
|
|
20.3%
|
21.7%
|
23.1%
|
(a)
The fair value of finance debt at 30 September 2023
was $43,387 million (30 June 2023 $45,580 million,
30 September 2022 $41,414 million).
(b)
Derivative financial instruments entered into for the purpose of
managing interest rate and foreign currency exchange risk
associated with net debt with a fair value liability position
of $102 million at 30 September 2023
(second quarter 2023 liability
of $98 million and third
quarter 2022 liability of $116 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.
In the third quarter the group bought back $nil equivalent of
finance debt (second quarter 2023 $1.7 billion, third quarter 2022
$2.9 billion). As part of actively managing its debt portfolio,
year to date the group has bought back a total of $1.7 billion
equivalent of finance debt ($7.4 billion for the comparative period
in 2022). Derivatives associated with non-US dollar debt bought
back were also terminated. These transactions have no significant
impact on net debt or gearing.
Note 10. Statutory accounts
The financial information shown in this publication, which was
approved by the Board of Directors on 30 October 2023, is unaudited
and does not constitute statutory financial statements. Audited
financial information will be published in BP Annual Report and Form
20-F 2023. BP Annual Report and Form
20-F 2022 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 25
Additional information
Capital expenditure*
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
Capital expenditure
|
|
|
|
|
|
|
|
|
Organic capital expenditure*
|
|
3,597
|
3,233
|
3,191
|
|
10,325
|
8,609
|
|
Inorganic
capital expenditure*(a)
|
|
6
|
1,081
|
3
|
|
1,217
|
352
|
|
|
|
3,603
|
4,314
|
3,194
|
|
11,542
|
8,961
|
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
Capital expenditure by segment
|
|
|
|
|
|
|
|
|
gas & low carbon energy
|
|
1,055
|
887
|
958
|
|
2,955
|
2,642
|
|
oil production & operations
|
|
1,644
|
1,478
|
1,386
|
|
4,642
|
3,848
|
|
customers
& products(a)
|
|
802
|
1,858
|
713
|
|
3,650
|
2,103
|
|
other businesses & corporate
|
|
102
|
91
|
137
|
|
295
|
368
|
|
|
|
3,603
|
4,314
|
3,194
|
|
11,542
|
8,961
|
|
Capital expenditure by geographical area
|
|
|
|
|
|
|
|
|
US
|
|
1,583
|
2,661
|
1,377
|
|
5,941
|
3,727
|
|
Non-US
|
|
2,020
|
1,653
|
1,817
|
|
5,601
|
5,234
|
|
|
|
3,603
|
4,314
|
3,194
|
|
11,542
|
8,961
|
(a)
Second quarter and nine months 2023 include $1.1 billion, net
of adjustments, in respect of the TravelCenters of America
acquisition.
Top of page 26
Adjusting items*
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
gas & low carbon energy
|
|
|
|
|
|
|
|
|
Gains on sale of businesses and fixed assets
|
|
-
|
1
|
3
|
|
16
|
12
|
|
Net
impairment and losses on sale of businesses and fixed
assets(a)
|
|
(224)
|
(1,058)
|
(6)
|
|
(1,284)
|
(523)
|
|
Environmental and other provisions
|
|
-
|
-
|
-
|
|
-
|
-
|
|
Restructuring, integration and rationalization costs
|
|
(1)
|
1
|
-
|
|
-
|
5
|
|
Fair
value accounting effects(b)(c)
|
|
1,816
|
1,222
|
(9,224)
|
|
6,972
|
(14,313)
|
|
Other(d)
|
|
(572)
|
(110)
|
31
|
|
(738)
|
161
|
|
|
|
1,019
|
56
|
(9,196)
|
|
4,966
|
(14,658)
|
|
oil production & operations
|
|
|
|
|
|
|
|
|
Gains
on sale of businesses and fixed assets(e)
|
|
246
|
(31)
|
1,851
|
|
352
|
3,378
|
|
Net impairment and losses on sale of businesses and fixed
assets
|
|
(52)
|
(140)
|
(326)
|
|
(184)
|
(1,262)
|
|
Environmental and other provisions
|
|
99
|
(44)
|
244
|
|
6
|
98
|
|
Restructuring, integration and rationalization costs
|
|
-
|
(1)
|
3
|
|
(1)
|
(14)
|
|
Fair value accounting effects
|
|
-
|
-
|
-
|
|
-
|
-
|
|
Other
|
|
(2)
|
7
|
(18)
|
|
(93)
|
37
|
|
|
|
291
|
(209)
|
1,754
|
|
80
|
2,237
|
|
customers & products
|
|
|
|
|
|
|
|
|
Gains on sale of businesses and fixed assets
|
|
18
|
2
|
10
|
|
21
|
302
|
|
Net impairment and losses on sale of businesses and fixed
assets
|
|
(242)
|
(36)
|
(85)
|
|
(361)
|
(532)
|
|
Environmental and other provisions
|
|
-
|
(1)
|
(1)
|
|
(11)
|
(36)
|
|
Restructuring, integration and rationalization costs
|
|
1
|
1
|
(4)
|
|
-
|
6
|
|
Fair
value accounting effects(c)
|
|
(198)
|
(109)
|
(59)
|
|
(230)
|
(498)
|
|
Other
|
|
(85)
|
(98)
|
-
|
|
(245)
|
(31)
|
|
|
|
(506)
|
(241)
|
(139)
|
|
(826)
|
(789)
|
|
other businesses & corporate
|
|
|
|
|
|
|
|
|
Gains on sale of businesses and fixed assets
|
|
-
|
-
|
1
|
|
-
|
-
|
|
Net impairment and losses on sale of businesses and fixed
assets
|
|
(23)
|
(31)
|
-
|
|
(60)
|
(16)
|
|
Environmental and other provisions
|
|
(8)
|
(17)
|
67
|
|
(39)
|
(25)
|
|
Restructuring, integration and rationalization costs
|
|
(3)
|
-
|
6
|
|
(13)
|
16
|
|
Fair
value accounting effects(c)
|
|
(146)
|
(48)
|
(785)
|
|
51
|
(1,896)
|
|
Rosneft
|
|
-
|
-
|
-
|
|
-
|
(24,033)
|
|
Gulf of Mexico oil spill
|
|
(19)
|
(18)
|
(21)
|
|
(46)
|
(61)
|
|
Other
|
|
2
|
(13)
|
44
|
|
(11)
|
40
|
|
|
|
(197)
|
(127)
|
(688)
|
|
(118)
|
(25,975)
|
|
Total before interest and taxation
|
|
607
|
(521)
|
(8,269)
|
|
4,102
|
(39,185)
|
|
Finance
costs(f)
|
|
(96)
|
(119)
|
(68)
|
|
(319)
|
(256)
|
|
Total before taxation
|
|
511
|
(640)
|
(8,337)
|
|
3,783
|
(39,441)
|
|
Taxation
on adjusting items(g)
|
|
(158)
|
160
|
988
|
|
(203)
|
1,998
|
|
Taxation
- tax rate change effect of UK energy profits levy(h)
|
|
-
|
232
|
(778)
|
|
232
|
(778)
|
|
Total
after taxation for period(i)
|
|
353
|
(248)
|
(8,127)
|
|
3,812
|
(38,221)
|
(a)
See Note 3 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 32.
(d)
Third quarter and nine months 2023 include a $540 million
impairment charge recognized through equity-accounted earnings
relating to US offshore wind projects.
(e)
Third quarter and nine months 2022 include a non-taxable gain of
$1,951 million arising from the contribution of bp's Angolan
business to Azule Energy. Nine months 2022 also includes gains of
$904 million related to the deemed disposal of 12% of the group's
interest in Aker BP, an associate of bp, following completion of
Aker BP's acquisition of Lundin Energy, and $361 million in
relation to the disposal of the group's interest in the Rumaila
field in Iraq to Basra Energy Company, an associate of
bp.
(f)
Includes the unwinding of discounting effects relating to Gulf of
Mexico oil spill payables, the income statement impact associated
with
the
buyback of finance debt (see Note 9 for further
information) and temporary valuation differences associated with
the group's interest rate and foreign currency exchange risk
management of finance debt.
(g)
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.
(h)
Second quarter and nine months 2023 include a revision 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 over the period 1 January 2023 to 31
March 2028. The EPL increases the headline rate of tax to 75% and
applies to taxable profits from bp's North Sea business made from 1
January 2023 until 31 March 2028.
Top
of page 27
Third
quarter and nine months 2022 included the deferred tax impact of
the introduction of the original UK EPL on existing temporary
differences unwinding over the period 1 October 2022 to 31 December
2025. The original levy increased the headline rate of tax from 40%
to 65% on profits from bp's North Sea business made from 26 May
2022 until 31 December 2025.
(i)
Third quarter and nine months 2023 include a $43 million charge and
a $121 million charge respectively for the EU Solidarity
Contribution.
Net debt including leases
|
Net debt including leases*
|
|
30 September
|
30 June
|
30 September
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
Net debt
|
|
22,324
|
23,660
|
22,002
|
|
Lease liabilities
|
|
10,879
|
10,961
|
7,895
|
|
Net
partner (receivable) payable for leases entered into on behalf of
joint operations
|
|
(124)
|
(136)
|
22
|
|
Net debt including leases
|
|
33,079
|
34,485
|
29,919
|
|
Total
equity
|
|
87,676
|
85,603
|
73,333
|
|
Gearing including leases*
|
|
27.4%
|
28.7%
|
29.0%
|
Gulf of Mexico oil spill
|
|
|
30 September
|
31 December
|
|
$ million
|
|
2023
|
2022
|
|
Gulf of Mexico oil spill payables and provisions
|
|
(8,639)
|
(9,566)
|
|
Of
which - current
|
|
(1,122)
|
(1,216)
|
|
|
|
|
|
|
Deferred tax asset
|
|
1,306
|
1,444
|
During the second quarter pre-tax payments of $1,204 million were
made relating to the 2016 consent decree and settlement agreement
with the United States and the five Gulf coast states. Payables and
provisions presented in the table above reflect the latest estimate
for the remaining costs associated with the Gulf of Mexico oil
spill. Where amounts have been provided on an estimated basis, the
amounts ultimately payable may differ from the amounts provided and
the timing of payments is uncertain. Further information relating
to the Gulf of Mexico oil spill, including information on the
nature and expected timing of payments relating to provisions and
other payables, is provided in BP Annual Report and Form 20-F
2022 - Financial
statements - Notes 7, 22, 23, 29, and 33.
Working capital* reconciliation
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
Movements in
inventories and other current and non-current assets and
liabilities as per condensed group cash flow statement(a)
|
|
(783)
|
(742)
|
6,764
|
|
(5,280)
|
577
|
|
Adjusted
for inventory holding gains (losses)* (Note 4)
|
|
1,593
|
(732)
|
(2,868)
|
|
261
|
2,779
|
|
Adjusted for fair value accounting effects relating to
subsidiaries
|
|
1,443
|
1,053
|
(10,068)
|
|
6,738
|
(16,561)
|
|
Other
adjusting items(b)
|
|
(300)
|
558
|
645
|
|
(1,040)
|
2,094
|
|
Working capital release (build) after adjusting for net inventory
gains (losses), fair value accounting effects and other adjusting
items
|
|
1,953
|
137
|
(5,527)
|
|
679
|
(11,111)
|
(a)
The movement in working capital includes outflows relating to the
Gulf of Mexico oil spill on a pre-tax basis
of $6 million and $1,222 million in
the third quarter and nine months of 2023 respectively. For the
same periods in 2022 the amount was an outflow
of $29 million and $1,285 million respectively.
(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 28
Surplus cash flow* reconciliation
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
Sources:
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
8,747
|
6,293
|
8,288
|
|
22,662
|
27,361
|
|
Cash provided from investing activities
|
|
150
|
109
|
621
|
|
1,065
|
1,996
|
|
Other(a)
|
|
503
|
(42)
|
(31)
|
|
402
|
454
|
|
Cash inflow
|
|
9,400
|
6,360
|
8,878
|
|
24,129
|
29,811
|
|
|
|
|
|
|
|
|
|
|
Uses:
|
|
|
|
|
|
|
|
|
Lease liability payments
|
|
(663)
|
(620)
|
(478)
|
|
(1,838)
|
(1,448)
|
|
Payments on perpetual hybrid bonds
|
|
(258)
|
(250)
|
(180)
|
|
(744)
|
(489)
|
|
Dividends paid - BP shareholders
|
|
(1,249)
|
(1,153)
|
(1,140)
|
|
(3,585)
|
(3,270)
|
|
-
non-controlling interests
|
|
(191)
|
(67)
|
(66)
|
|
(326)
|
(194)
|
|
Total capital expenditure*
|
|
(3,603)
|
(4,314)
|
(3,194)
|
|
(11,542)
|
(8,961)
|
|
Net repurchase of shares relating to employee share
schemes
|
|
(225)
|
(225)
|
-
|
|
(675)
|
(500)
|
|
Payments relating to transactions involving non-controlling
interests
|
|
-
|
-
|
(2)
|
|
(180)
|
(8)
|
|
Currency translation differences relating to cash and cash
equivalents
|
|
(104)
|
-
|
(322)
|
|
(118)
|
(861)
|
|
Cash outflow
|
|
(6,293)
|
(6,629)
|
(5,382)
|
|
(19,008)
|
(15,731)
|
|
|
|
|
|
|
|
|
|
|
Surplus cash flow
|
|
3,107
|
(269)
|
3,496
|
|
5,121
|
14,080
|
|
|
|
|
|
|
|
|
|
(a)
Other includes adjustments for net operating cash received or paid
which is held on behalf of third parties for medium-term deferred
payment and prior periods have been adjusted accordingly. Third
quarter and nine months 2023 include $517 million of proceeds from
the sale of a 49% interest in a controlled affiliate holding
certain midstream assets onshore US. Nine months 2022 includes $573
million of proceeds from the disposal of a loan note related to the
Alaska divestment. The cash was received in the fourth quarter
2021, was reported as a financing cash flow and was not included in
other proceeds at the time due to potential recourse from the
counterparty. The proceeds were recognized as the potential
recourse reduces and by end second quarter 2022 all were
recognized.
Top of page 29
Adjusted earnings before interest, taxation, depreciation and
amortization (adjusted EBITDA)*
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
Profit (loss) for the period
|
|
5,069
|
1,953
|
(1,984)
|
|
15,444
|
(12,518)
|
|
Finance costs
|
|
1,039
|
920
|
649
|
|
2,802
|
1,869
|
|
Net finance (income) expense relating to pensions and other
post-retirement benefits
|
|
(61)
|
(61)
|
(16)
|
|
(180)
|
(53)
|
|
Taxation
|
|
2,240
|
1,541
|
3,964
|
|
7,206
|
11,021
|
|
Profit before interest and tax
|
|
8,287
|
4,353
|
2,613
|
|
25,272
|
319
|
|
Inventory holding (gains) losses*, before tax
|
|
(1,593)
|
732
|
2,868
|
|
(261)
|
(2,779)
|
|
RC profit (loss) before interest and tax
|
|
6,694
|
5,085
|
5,481
|
|
25,011
|
(2,460)
|
|
Net (favourable) adverse impact of adjusting items*, before
interest and tax
|
|
(607)
|
521
|
8,269
|
|
(4,102)
|
39,185
|
|
Underlying RC profit before interest and tax
|
|
6,087
|
5,606
|
13,750
|
|
20,909
|
36,725
|
|
Add back:
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
4,145
|
3,923
|
3,467
|
|
11,868
|
10,604
|
|
Exploration expenditure written off
|
|
74
|
241
|
190
|
|
365
|
318
|
|
Adjusted EBITDA
|
|
10,306
|
9,770
|
17,407
|
|
33,142
|
47,647
|
Reconciliation of customers & products RC profit before
interest and tax to underlying RC profit before interest and tax*
to adjusted EBITDA* by business
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
RC profit before interest and tax for customers &
products
|
|
1,549
|
555
|
2,586
|
|
4,784
|
8,098
|
|
Less: Adjusting items* gains (charges)
|
|
(506)
|
(241)
|
(139)
|
|
(826)
|
(789)
|
|
Underlying RC profit before interest and tax for customers
& products
|
|
2,055
|
796
|
2,725
|
|
5,610
|
8,887
|
|
By business:
|
|
|
|
|
|
|
|
|
customers
- convenience & mobility
|
|
670
|
701
|
1,137
|
|
1,762
|
2,338
|
|
Castrol - included in customers
|
|
185
|
171
|
151
|
|
517
|
630
|
|
products
- refining & trading
|
|
1,385
|
95
|
1,588
|
|
3,848
|
6,549
|
|
|
|
|
|
|
|
|
|
|
Add back: Depreciation, depletion and amortization
|
|
915
|
894
|
697
|
|
2,606
|
2,129
|
|
By business:
|
|
|
|
|
|
|
|
|
customers
- convenience & mobility
|
|
481
|
448
|
311
|
|
1,270
|
952
|
|
Castrol - included in customers
|
|
43
|
42
|
36
|
|
124
|
113
|
|
products
- refining & trading
|
|
434
|
446
|
386
|
|
1,336
|
1,177
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA for customers & products
|
|
2,970
|
1,690
|
3,422
|
|
8,216
|
11,016
|
|
By business:
|
|
|
|
|
|
|
|
|
customers
- convenience & mobility
|
|
1,151
|
1,149
|
1,448
|
|
3,032
|
3,290
|
|
Castrol - included in customers
|
|
228
|
213
|
187
|
|
641
|
743
|
|
products
- refining & trading
|
|
1,819
|
541
|
1,974
|
|
5,184
|
7,726
|
Top of page 30
Realizations* and marker prices
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
Average realizations(a)
|
|
|
|
|
|
|
|
|
Liquids* ($/bbl)
|
|
|
|
|
|
|
|
|
US
|
|
63.95
|
60.53
|
82.23
|
|
62.44
|
81.05
|
|
Europe
|
|
90.76
|
75.14
|
94.21
|
|
80.59
|
104.12
|
|
Rest of World
|
|
78.34
|
79.35
|
101.82
|
|
80.05
|
98.93
|
|
BP Average
|
|
71.85
|
69.76
|
92.44
|
|
71.40
|
92.42
|
|
Natural gas ($/mcf)
|
|
|
|
|
|
|
|
|
US
|
|
2.24
|
1.58
|
7.25
|
|
2.09
|
5.88
|
|
Europe(b)
|
|
11.22
|
12.46
|
36.72
|
|
17.20
|
32.73
|
|
Rest of World
|
|
5.38
|
5.53
|
9.85
|
|
6.11
|
8.74
|
|
BP
Average(b)
|
|
4.88
|
4.91
|
10.41
|
|
5.66
|
9.18
|
|
Total hydrocarbons* ($/boe)
|
|
|
|
|
|
|
|
|
US
|
|
45.39
|
40.84
|
66.82
|
|
43.77
|
63.19
|
|
Europe(b)
|
|
80.61
|
74.20
|
137.66
|
|
87.43
|
134.42
|
|
Rest of World
|
|
45.61
|
45.97
|
71.19
|
|
48.73
|
68.34
|
|
BP
Average(b)
|
|
47.28
|
46.27
|
74.08
|
|
49.47
|
71.17
|
|
Average oil marker prices ($/bbl)
|
|
|
|
|
|
|
|
|
Brent
|
|
86.75
|
78.05
|
100.84
|
|
82.07
|
105.51
|
|
West Texas Intermediate
|
|
82.54
|
73.56
|
91.63
|
|
77.36
|
98.46
|
|
Western Canadian Select
|
|
65.42
|
60.07
|
69.02
|
|
60.72
|
79.72
|
|
Alaska North Slope
|
|
87.95
|
78.26
|
98.84
|
|
81.74
|
102.34
|
|
Mars
|
|
82.99
|
73.17
|
89.54
|
|
76.80
|
96.01
|
|
Urals (NWE - cif)
|
|
73.62
|
54.56
|
71.24
|
|
58.20
|
78.58
|
|
Average natural gas marker prices
|
|
|
|
|
|
|
|
|
Henry
Hub gas price(c) ($/mmBtu)
|
|
2.54
|
2.09
|
8.20
|
|
2.69
|
6.78
|
|
UK Gas - National Balancing Point (p/therm)
|
|
82.04
|
83.18
|
281.01
|
|
99.01
|
216.37
|
(a)
Based on sales of consolidated subsidiaries only - this excludes equity-accounted
entities.
(b) Realizations
calculation methodology has been changed to reflect gas price
fluctuations within the North Sea region. Third quarter 2022 and
nine months 2022 were restated. There is no impact on financial
results.
(c)
Henry Hub First of Month Index.
Exchange rates
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
|
|
2023
|
2023
|
2022
|
|
2023
|
2022
|
|
$/£ average rate for the period
|
|
1.27
|
1.25
|
1.18
|
|
1.24
|
1.25
|
|
$/£ period-end rate
|
|
1.22
|
1.26
|
1.12
|
|
1.22
|
1.12
|
|
|
|
|
|
|
|
|
|
|
$/€ average rate for the period
|
|
1.09
|
1.09
|
1.01
|
|
1.08
|
1.06
|
|
$/€ period-end rate
|
|
1.06
|
1.09
|
0.98
|
|
1.06
|
0.98
|
|
|
|
|
|
|
|
|
|
|
$/AUD average rate for the period
|
|
0.65
|
0.67
|
0.68
|
|
0.67
|
0.71
|
|
$/AUD period-end rate
|
|
0.64
|
0.66
|
0.65
|
|
0.64
|
0.65
|
|
|
|
|
|
|
|
|
|
Top of page 31
Legal proceedings
For a full discussion of the group's material legal proceedings,
see pages 258-259 of bp Annual Report and Form 20-F
2022 and page 35 of BP
p.l.c. Group results second quarter and half-year 2023 results
announcement. The following discussion sets out the material
developments in the group's material legal proceedings in the
period following the second quarter and half-year 2023 results
announcement.
Louisiana Coastal restoration
Six coastal parishes and the State of Louisiana have filed over 40
separate lawsuits in state courts in Louisiana against various oil
and gas companies seeking damages for coastal erosion. bp entities
are defendants in 17 of these cases. The lawsuits allege that the
defendants' historical operations in oil and gas fields within the
Louisiana onshore coastal zone failed to comply with state permits
and/or were conducted without the required coastal use permits. The
scope and scale of plaintiffs' damages demands are significant and
unprecedented, including substantial remediation costs and the
claimed costs for restoring coastal wetlands allegedly impacted by
oil and gas field operations.
Defendants removed all of these lawsuits to federal court and the
removals were contested by plaintiffs, eventually resulting in a
decision from the US Fifth Circuit Court of Appeals rejecting
defendants' "federal officer" jurisdiction removal in the lead test
case. Defendants' petition for writ of certiorari to the US Supreme
Court seeking review of the US Fifth Circuit's decision was denied
in early 2023. On remand from the US District Court, the
state court in the case of Cameron Parish v. Auster et al. has
established a November 2023 trial date. bp is the lead defendant in
Auster. A subset of the removed cases remain in federal court
pending further Fifth Circuit rulings on a related "federal
officer" removal jurisdiction theory.
In addition, four private landowners have filed separate claims in
the state courts in Jefferson and Plaquemines Parishes of Louisiana
for restoration damages related to alleged impacts to their
marshlands associated with historic oil field operations. bp
entities are defendants in two of these private landowner
cases.
With the exception of the Auster case, which is nearing completion
of the expert discovery stage and final pre-trial activity, all of
the other remanded cases remain at early stages in the litigation.
While it is not possible to predict the outcomes of these novel
legal actions, bp believes that it has valid defences, and it
intends to defend such actions vigorously.
Glossary
Non-IFRS measures are provided for investors because they are
closely tracked by management to evaluate bp's operating
performance and to make financial, strategic and operating
decisions. Non-IFRS measures are sometimes referred to as
alternative performance measures.
Adjusted EBITDA is a non-IFRS measure presented
for bp's operating segments and is defined as replacement cost (RC)
profit before interest and tax, excluding net adjusting items*
before interest and tax, and adding back depreciation, depletion
and amortization and exploration write-offs (net of adjusting
items). Adjusted EBITDA by business is a further analysis of
adjusted EBITDA for the customers & products businesses. bp
believes it is helpful to disclose adjusted EBITDA by operating
segment and by business because it reflects how the segments
measure underlying business delivery. The nearest equivalent
measure on an IFRS basis for the segment is RC profit or loss
before interest and tax, which is bp's measure of profit or loss
that is required to be disclosed for each operating segment under
IFRS. A reconciliation to IFRS
information is provided on page 29 for the customers
& products businesses.
Adjusted EBITDA for the group is defined as profit or loss for the
period, adjusting for finance costs and net finance (income) or
expense relating to pensions and other post-retirement benefits and
taxation, inventory holding gains or losses before tax, net
adjusting items before interest and tax, and adding back
depreciation, depletion and amortization (pre-tax) and exploration
expenditure written-off (net of adjusting items, pre-tax). The
nearest equivalent measure on an IFRS basis for the group is profit
or loss for the period. A reconciliation to IFRS
information is provided on page 29 for the
group.
We are unable to present reconciliations of forward-looking
information for adjusted EBITDA for the group or resilient
hydrocarbons, because without unreasonable efforts, we are unable
to forecast accurately certain adjusting items required to
calculate a meaningful comparable IFRS forward-looking financial
measure. These items include inventory holding gains or losses,
adjusting items and exploration expenditure written off that are
difficult to predict in advance in order to include in an IFRS
estimate.
Adjusting items are items that bp discloses
separately because it considers such disclosures to be meaningful
and relevant to investors. They are items that management considers
to be important to period-on-period analysis of the group's results
and are disclosed in order to enable investors to better understand
and evaluate the group's reported financial performance. Adjusting
items include gains and losses on the sale of businesses and fixed
assets, impairments, environmental and other provisions,
restructuring, integration and rationalization costs, fair value
accounting effects, financial impacts relating to Rosneft for the
2022 financial reporting period and costs relating to the Gulf of
Mexico oil spill and other items. Adjusting items within
equity-accounted earnings are reported net of incremental income
tax reported by the equity-accounted entity. Adjusting items are
used as a reconciling adjustment to derive underlying RC profit or
loss and related underlying measures which are non-IFRS measures.
An analysis of adjusting items by segment and type is shown
on page 26.
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.
Top of page 32
Glossary (continued)
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). If asset is subsequently
sold bp will continue to record capacity as developed to FID. If bp
equity share increases developed capacity to FID will increase
proportionately to share increase for any assets where bp held
equity at the point of 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.
Fair value accounting effects are non-IFRS adjustments to our
IFRS profit (loss). They reflect the difference between the way bp
manages the economic exposure and internally measures performance
of certain activities and the way those activities are measured
under IFRS. Fair value accounting effects are included within
adjusting items. They relate to certain of the group's commodity,
interest rate and currency risk exposures as detailed below. Other
than as noted below, the fair value accounting effects described
are reported in both the gas & low carbon energy and customer
& products segments.
bp uses derivative instruments to manage the economic exposure
relating to inventories above normal operating requirements of
crude oil, natural gas and petroleum products. Under IFRS, these
inventories are recorded at historical cost. The related derivative
instruments, however, are required to be recorded at fair value
with gains and losses recognized in the income statement. This is
because hedge accounting is either not permitted or not followed,
principally due to the impracticality of effectiveness-testing
requirements. Therefore, measurement differences in relation to
recognition of gains and losses occur. Gains and losses on these
inventories, other than net realizable value provisions, are not
recognized until the commodity is sold in a subsequent accounting
period. Gains and losses on the related derivative commodity
contracts are recognized in the income statement, from the time the
derivative commodity contract is entered into, on a fair value
basis using forward prices consistent with the contract
maturity.
bp enters into physical commodity contracts to meet certain
business requirements, such as the purchase of crude for a refinery
or the sale of bp's gas production. Under IFRS these physical
contracts are treated as derivatives and are required to be fair
valued when they are managed as part of a larger portfolio of
similar transactions. Gains and losses arising are recognized in
the income statement from the time the derivative commodity
contract is entered into.
IFRS require that inventory held for trading is recorded at its
fair value using period-end spot prices, whereas any related
derivative commodity instruments are required to be recorded at
values based on forward prices consistent with the contract
maturity. Depending on market conditions, these forward prices can
be either higher or lower than spot prices, resulting in
measurement differences.
bp enters into contracts for pipelines and other transportation,
storage capacity, oil and gas processing, liquefied natural gas
(LNG) and certain gas and power contracts that, under IFRS, are
recorded on an accruals basis. These contracts are risk-managed
using a variety of derivative instruments that are fair valued
under IFRS. This results in measurement differences in relation to
recognition of gains and losses.
The way that bp manages the economic exposures described above, and
measures performance internally, differs from the way these
activities are measured under IFRS. bp calculates this difference
for consolidated entities by comparing the IFRS result with
management's internal measure of performance. We believe that
disclosing management's estimate of this difference provides useful
information for investors because it enables investors to see the
economic effect of these activities as a whole.
These include:
●
Under
management's internal measure of performance the inventory,
transportation and capacity contracts in question are valued based
on fair value using relevant forward prices prevailing at the end
of the period.
●
Fair
value accounting effects also include changes in the fair value of
the near-term portions of LNG contracts that fall within bp's risk
management framework. LNG contracts are not considered derivatives,
because there is insufficient market liquidity, and they are
therefore accrual accounted under IFRS. However, oil and natural
gas derivative financial instruments used to risk manage the
near-term portions of the LNG contracts are fair valued under IFRS.
The fair value accounting effect, which is reported in the gas and
low carbon energy segment, represents the change in value of LNG
contacts that are being risk managed and which is reflected in the
underlying result, but not in reported earnings. Management
believes that this gives a better representation of performance in
each period.
Furthermore, the fair values of derivative instruments used to risk
manage certain other oil, gas, power and other contracts, are
deferred to match with the underlying exposure. The commodity
contracts for business requirements are accounted for on an
accruals basis.
In addition, fair value accounting effects include changes in the
fair value of derivatives entered into by the group to manage
currency exposure and interest rate risks relating to hybrid bonds
to their respective first call periods. The hybrid bonds which
were issued on 17 June 2020 are classified as equity
instruments and were recorded in the balance sheet at that date at
their USD equivalent issued value. Under IFRS these equity
instruments are not remeasured from period to period, and do not
qualify for
Top of page 33
Glossary (continued)
application of hedge accounting. The derivative instruments
relating to the hybrid bonds, however, are required to be recorded
at fair value with mark to market gains and losses recognized in
the income statement. Therefore, measurement differences in
relation to the recognition of gains and losses occur. The fair
value accounting effect, which is reported in the other businesses
& corporate segment, eliminates the fair value gains and losses
of these derivative financial instruments that are recognized in
the income statement. We believe that this gives a better
representation of performance, by more appropriately reflecting the
economic effect of these risk management activities, in each
period.
Gas & low carbon energy segment comprises our gas and low
carbon businesses. Our gas business includes regions with upstream
activities that predominantly produce natural gas, integrated gas
and power, and gas trading. Our low carbon business includes solar,
offshore and onshore wind, hydrogen and CCS and power trading.
Power trading includes trading of both renewable and non-renewable
power.
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
24.
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 27.
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 25.
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:
a.
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
b.
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.
Top of page 34
Glossary (continued)
Liquids -
Liquids comprises crude oil, condensate and natural gas liquids.
For the oil production & operations segment, it also includes
bitumen.
Low carbon activity - An activity relating to low
carbon including: renewable electricity; bioenergy; electric
vehicles and other future mobility solutions; trading and marketing
low carbon products; blue or green hydrogen and carbon capture, use
and storage (CCUS).
Note that, while there is some overlap of activities, these terms
do not mean the same as bp's strategic focus area of low carbon
energy or our low carbon energy sub-segment, reported within the
gas & low carbon energy segment.
Major projects have a bp net investment of at
least $250 million, or are considered to be of strategic importance
to bp or of a high degree of complexity.
Operating cash flow is net cash provided by (used in)
operating activities as stated in the condensed group cash flow
statement.
Organic capital expenditure is a non-IFRS measure. Organic
capital expenditure comprises capital expenditure on a cash basis
less inorganic capital expenditure. bp believes that this measure
provides useful information as it allows investors to understand
how bp's management invests funds in developing and maintaining the
group's assets. The nearest equivalent measure on an IFRS basis is
capital expenditure on a cash basis and a reconciliation to IFRS
information is provided on page 25.
We are unable to present reconciliations of forward-looking
information for organic capital expenditure to total cash capital
expenditure, because without unreasonable efforts, we are unable to
forecast accurately the adjusting item, inorganic capital
expenditure, that is difficult to predict in advance in order to
derive the nearest IFRS estimate.
Production-sharing agreement/contract (PSA/PSC) is an arrangement through which
an oil and gas company bears the risks and costs of exploration,
development and production. In return, if exploration is
successful, the oil company receives entitlement to variable
physical volumes of hydrocarbons, representing recovery of the
costs incurred and a stipulated share of the production remaining
after such cost recovery.
Realizations are the result of dividing
revenue generated from hydrocarbon sales, excluding revenue
generated from purchases made for resale and royalty volumes, by
revenue generating hydrocarbon production volumes. Revenue
generating hydrocarbon production reflects the bp share of
production as adjusted for any production which does not generate
revenue. Adjustments may include losses due to shrinkage, amounts
consumed during processing, and contractual or regulatory host
committed volumes such as royalties. For the gas & low carbon
energy and oil production & operations segments, realizations
include transfers between businesses.
Refining availability represents Solomon Associates'
operational availability for bp-operated refineries, which is
defined as the percentage of the year that a unit is available for
processing after subtracting the annualized time lost due to
turnaround activity and all planned mechanical, process and
regulatory downtime.
The Refining marker margin
(RMM) is the average of
regional indicator margins weighted for bp's crude refining
capacity in each region. Each regional marker margin is based on
product yields and a marker crude oil deemed appropriate for the
region. The regional indicator margins may not be representative of
the margins achieved by bp in any period because of bp's particular
refinery configurations and crude and product
slate.
Renewables pipeline - Renewable projects satisfying
the following criteria until the point they can be considered
developed to final investment decision (FID): Site based projects
that have obtained land exclusivity rights, or for power purchase
agreement based projects an offer has been made to the
counterparty, or for auction projects pre-qualification criteria
has been met, or for acquisition projects post a binding offer
being accepted.
Replacement cost (RC) profit or loss / RC profit or loss
attributable to bp shareholders reflects the replacement cost of
inventories sold in the period and is calculated as profit or loss
attributable to bp shareholders, adjusting for inventory holding
gains and losses (net of tax). RC profit or loss for the group is
not a recognized IFRS measure. bp believes this measure is useful
to illustrate to investors the fact that crude oil and product
prices can vary significantly from period to period and that the
impact on our reported result under IFRS can be significant.
Inventory holding gains and losses vary from period to period due
to changes in prices as well as changes in underlying inventory
levels. In order for investors to understand the operating
performance of the group excluding the impact of price changes on
the replacement of inventories, and to make comparisons of
operating performance between reporting periods, bp's management
believes it is helpful to disclose this measure. The nearest
equivalent measure on an IFRS basis is profit or loss attributable
to bp shareholders. A reconciliation to IFRS information is
provided on page 1. RC profit or loss
before interest and tax is bp's measure of profit or loss that is
required to be disclosed for each operating segment under
IFRS.
Reported recordable injury frequency measures the number of reported
work-related employee and contractor incidents that result in a
fatality or injury per 200,000 hours worked. This represents
reported incidents occurring within bp's operational HSSE reporting
boundary. That boundary includes bp's own operated facilities and
certain other locations or situations. Reported incidents are
investigated throughout the year and as a result there may be
changes in previously reported incidents. Therefore comparative
movements are calculated against internal data reflecting the final
outcomes of such investigations, rather than the previously
reported comparative period, as this this represents a more up to
date reflection of the safety environment.
Retail sites include sites operated by
dealers, jobbers, franchisees or brand licensees or joint venture
(JV) partners, under the bp brand. These may move to and from the
bp brand as their fuel supply agreement or brand licence agreement
expires and are renegotiated in the normal course of business.
Retail sites are primarily branded bp,
ARCO, Amoco, Aral and Thorntons,
and also includes sites in India through our Jio-bp
JV.
Solomon availability - See Refining availability
definition.
Top of page 35
Glossary (continued)
Strategic convenience sites are retail sites, within the bp
portfolio, which sell bp-branded vehicle energy
(e.g. bp, Aral,
Arco, Amoco, Thorntons,
TravelCenters of America and bp
pulse) and
either carry one of the strategic convenience brands (e.g. M&S,
Rewe to Go) or a differentiated 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.
For the nine months of 2022, the sources of cash includes other
proceeds related to the proceeds from the disposal of a loan note
related to the Alaska divestment. The cash was received in the
fourth quarter 2021, was reported as a financing cash flow and was
not included in other proceeds at the time due to potential
recourse from the counterparty. The proceeds are being recognized
as the potential recourse reduces. See page 28 for the
components of our sources of cash and uses of
cash.
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 this
represents a more up to date reflection of the safety
environment.
Transition growth - Activities, represented by a
set of transition growth engines, that transition bp toward its
objective to be an Integrated Energy Company, and that comprise our
low carbon activity* alongside other businesses that support
transition, such as our power trading & marketing business and
convenience.
Underlying effective tax rate (ETR) is a non-IFRS measure. The
underlying ETR is calculated by dividing taxation on an underlying
replacement cost (RC) basis by underlying RC profit or loss before
tax. Taxation on an underlying RC basis for the group is calculated
as taxation as stated on the group income statement adjusted for
taxation on inventory holding gains and losses and total taxation
on adjusting items. Information on underlying RC profit or loss is
provided below. Taxation on an underlying RC basis presented for
the operating segments is calculated through an allocation of
taxation on an underlying RC basis to each segment. bp believes it
is helpful to disclose the underlying ETR because this measure may
help investors to understand and evaluate, in the same manner as
management, the underlying trends in bp's operational performance
on a comparable basis, period on period. Taxation on an underlying
RC basis and underlying ETR are non-IFRS measures. The nearest
equivalent measure on an IFRS basis is the ETR on profit or loss
for the period.
We are unable to present reconciliations of forward-looking
information for underlying ETR to ETR on profit or loss for the
period, because without unreasonable efforts, we are unable to
forecast accurately certain adjusting items required to present a
meaningful comparable IFRS forward-looking financial measure. These
items include the taxation on inventory holding gains and losses
and adjusting items, that are difficult to predict in advance in
order to include in an IFRS estimate.
Underlying production - 2023 underlying production,
when compared with 2022, 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 34) after excluding net
adjusting items and related taxation. See page 26 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.
Top of page 36
Glossary (continued)
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 7. Underlying RC profit or loss
per ordinary share is calculated using the same denominator as
earnings per share as defined in the consolidated financial
statements. The numerator used is underlying RC profit or loss
attributable to bp shareholders rather than profit or loss
attributable to bp 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 shareholders.
upstream includes oil and natural gas
field development and production within the gas & low carbon
energy and oil production & operations
segments.
upstream/hydrocarbon plant reliability (bp-operated) is calculated
taking 100% less the ratio of total unplanned plant deferrals
divided by installed production capacity, excluding non-operated
assets and bpx energy. Unplanned plant deferrals are associated
with the topside plant and where applicable the subsea equipment
(excluding wells and reservoir). Unplanned plant deferrals include
breakdowns, which does not include Gulf of Mexico weather related
downtime.
upstream unit production cost is calculated as production cost
divided by units of production. Production cost does not include ad
valorem and severance taxes. Units of production are barrels for
liquids and thousands of cubic feet for gas. Amounts disclosed are
for bp subsidiaries only and do not include bp's share of
equity-accounted entities.
Working capital is movements in inventories and
other current and non-current assets and liabilities as reported in
the condensed group cash flow statement.
Change in working capital adjusted for inventory holding
gains/losses, fair value accounting effects relating to
subsidiaries and other adjusting items is a non-IFRS measure. It is
calculated by adjusting for inventory holding gains/losses reported
in the period; fair value accounting effects relating to
subsidiaries reported within adjusting items for the period; and
other adjusting items relating to the non-cash movement of US
emissions obligations carried as a provision that will be settled
by allowances held as inventory. This represents what would have
been reported as movements in inventories and other current and
non-current assets and liabilities, if the starting point in
determining net cash provided by operating activities had been
underlying replacement cost profit rather than profit for the
period. The nearest equivalent measure on an IFRS basis for this is
movements in inventories and other current and non-current assets
and liabilities.
bp utilizes various arrangements in order to manage its working
capital including discounting of receivables and, in the supply and
trading business, the active management of supplier payment terms,
inventory and collateral.
Trade marks
Trade marks of the bp group appear throughout this announcement.
They include:
bp, Amoco, Aral, bp pulse,
Castrol and Thorntons
Top of page 37
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;
expectations regarding bp's customers & products business;
expectations regarding refining margins; expectations regarding
turnaround and maintenance activity; expectations regarding
financial performance, results of operations and cash flows, and
Adjusted EBITDA; expectations regarding future project start-ups;
expectations with regards to bp's transformation to an IEC; price
assumptions used in accounting estimates; bp's plans and
expectations regarding the amount and timing of share buybacks and
dividends; plans and expectations regarding bp's credit rating,
including in respect of maintaining a strong investment grade
credit rating; plans and expectations regarding the allocation of
surplus cash flow to share buybacks and strengthening the balance
sheet; plans and expectations with respect to the total
depreciation, depletion and amortization and the other businesses
& corporate underlying annual charge for 2023; plans and
expectations regarding bp's development of its LNG portfolio; plans
and expectations regarding investments, collaborations and
partnerships in electric vehicle (EV) charging infrastructure;
plans and expectations related to bp's transition growth engines of
bioenergy, convenience, EV charging, renewables and power, and
hydrogen; expectations relating to bp's development of its wind
pipeline; 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 underlying effective tax rate for 2023;
expectations regarding the timing and amount of future payments
relating to the Gulf of Mexico oil spill; plans and expectations
regarding capital expenditure; expectations regarding greenhouse
gas emissions; expectations regarding legal proceedings, including
those related to the Louisiana coastal restoration and climate
change; plans and expectations regarding bp-operated projects and
ventures, and its projects, joint ventures, partnerships and
agreements with commercial entities and other third party partners,
including those related to Advanced Ionics, Dynamon, Electric
Hydrogen, Midwest Alliance for Clean Hydrogen and
Auchan.
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, the impact of COVID-19, 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; the timing and level of maintenance and/or
turnaround activity; the timing and volume of refinery additions
and outages; the timing of bringing new fields onstream; the
timing, quantum and nature of certain acquisitions and divestments;
future levels of industry product supply, demand and pricing,
including supply growth in North America and continued base oil and
additive supply shortages; OPEC+ quota restrictions; PSA and TSC
effects; operational and safety problems; potential lapses in
product quality; economic and financial market conditions generally
or in various countries and regions; political stability and
economic growth in relevant areas of the world; changes in laws and
governmental regulations and policies, including related to climate
change; changes in social attitudes and customer preferences;
regulatory or legal actions including the types of enforcement
action pursued and the nature of remedies sought or imposed; the
actions of prosecutors, regulatory authorities and courts; delays
in the processes for resolving claims; amounts ultimately payable
and timing of payments relating to the Gulf of Mexico oil spill;
exchange rate fluctuations; development and use of new technology;
recruitment and retention of a skilled workforce; the success or
otherwise of partnering; the actions of competitors, trading
partners, contractors, subcontractors, creditors, rating agencies
and others; bp's access to future credit resources; business
disruption and crisis management; the impact on bp's reputation of
ethical misconduct and non-compliance with regulatory obligations;
trading losses; major uninsured losses; the possibility that
international sanctions or other steps taken by any competent
authorities or any other relevant persons may impact or limit bp's
ability to sell its interests in Rosneft, or the price for which it
could sell such interests; the actions of contractors; natural
disasters and adverse weather conditions; changes in public
expectations and other changes to business conditions; wars and
acts of terrorism; cyber-attacks or sabotage; and 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 2023 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 2022 as filed with the
SEC.
This announcement contains inside information. The person
responsible for arranging the release of this announcement on
behalf of BP p.l.c. is Ben Mathews, Company Secretary.
Top of page 38
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Contacts
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London
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Houston
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Press Office
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David Nicholas
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Megan Baldino
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+44 (0) 7831 095541
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+1
907 529 9029
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Investor Relations
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Craig Marshall
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Graham Collins
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bp.com/investors
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+44 (0) 203 401 5592
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+1 832 753 5116
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BP p.l.c.'s LEI Code 213800LH1BZH3D16G760
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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BP
p.l.c.
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(Registrant)
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Dated: 31
October 2023
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/s/ Ben
J. S. Mathews
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------------------------
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Ben J.
S. Mathews
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Company
Secretary
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