Bp PLC 6-K, filed Nov 1, 2022
Bp PLC (BP)
6-K
2022-11-01
For: 2022-11-01
View Original
Added on
July 04, 2026
About this 6-K
Bp PLC filed this 6-K on November 1, 2022.
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 01 November, 2022
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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Top of page 1
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FOR IMMEDIATE RELEASE
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London 1 November 2022
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BP p.l.c. Group results
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Third quarter and nine months 2022
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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/8138E_1-2022-10-31.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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2022
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2022
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2021
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2022
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2021
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Profit (loss) for the period attributable to bp
shareholders
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(2,163)
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9,257
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(2,544)
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(13,290)
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5,239
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Inventory holding (gains) losses*, net of tax
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2,186
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(1,607)
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(390)
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(2,085)
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(2,468)
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Replacement cost (RC) profit (loss)*
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23
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7,650
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(2,934)
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(15,375)
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2,771
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Net (favourable) adverse impact of adjusting items*, net of
tax
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8,127
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801
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6,256
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38,221
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5,979
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Underlying RC profit*
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8,150
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8,451
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3,322
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22,846
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8,750
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Operating cash flow*
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8,288
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10,863
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5,976
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27,361
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17,496
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Capital expenditure*
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(3,194)
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(2,838)
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(2,903)
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(8,961)
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(9,215)
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Divestment
and other proceeds(a)
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606
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722
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313
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2,509
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5,367
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Surplus cash flow*
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3,530
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6,590
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933
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14,209
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3,315
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Net
issue (repurchase) of shares(b)
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(2,876)
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(2,288)
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(926)
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(6,756)
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(1,426)
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Net
debt*(c)
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22,002
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22,816
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31,971
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22,002
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31,971
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Announced dividend per ordinary share (cents per
share)
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6.006
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6.006
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5.460
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17.472
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16.170
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Underlying RC profit per ordinary share* (cents)
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43.15
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43.58
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16.48
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118.61
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43.22
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Underlying RC profit per ADS* (dollars)
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2.59
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2.61
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0.99
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7.12
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2.59
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● Net debt reduced to $22.0 billion
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● Further $2.5 billion share buyback
announced
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● High-grading hydrocarbons portfolio - formation of Azule
Energy; final investment decision at Cypre; agreed divestment of
Algeria
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● Accelerating transformation to an IEC - agreed to acquire
Archaea Energy - a leading US biogas producer; agreement with Hertz
to advance North America fleet EV charging
strategy
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This quarter's results reflect us continuing to perform while
transforming. We remain focused on helping to solve the energy
trilemma - secure, affordable and lower carbon energy. We are
providing the oil and gas the world needs today - while at the same
time - investing to accelerate the energy transition. Our agreement
on Archaea Energy is the most recent step in our strategic
transformation of bp.
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Bernard Looney
Chief executive officer
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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 divestment and other proceeds.
(b)
Nine months 2022 excludes the ordinary shares issued as non-cash
consideration for the acquisition of the public units of BP
Midstream Partners LP. See Note 7 for more
information.
(c)
See Note 9 for more information.
RC profit (loss), underlying RC profit (loss), surplus cash flow
and net debt are non-GAAP measures. Inventory holding (gains)
losses and adjusting items are non-GAAP adjustments.
* For items marked with an asterisk throughout this document,
definitions are provided in the Glossary on page
33.
Top of page 2
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Highlights
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Underlying replacement cost profit* $8.2 billion
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●
Underlying replacement cost profit was $8.2 billion, compared
with $8.5 billion for
the previous quarter. Compared to the second quarter, the result
was impacted by weaker refining margins, an average oil trading
result and lower liquids realizations, partly offset by an
exceptional gas marketing and trading result and higher gas
realizations.
●
Reported loss for the quarter was $2.2 billion, compared with a profit
of $9.3 billion for
the second quarter
2022. The reported result for the third quarter includes inventory
holding losses net of tax of $2.2
billion and a charge for adjusting items* net of tax
of $8.1 billion. This
charge includes adverse fair value accounting effects*
of $10.1 billion,
primarily due to further increases in forward gas prices compared
to the end of the second quarter, partly offset
by $2.0 billion gain
on sale relating to the formation of Azule Energy.
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Operating cash flow* $8.3
billion; net debt* reduced to $22.0 billion
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●
Operating cash flow in the quarter was $8.3 billion including a working
capital build (after adjusting for inventory holding losses* and
fair value accounting effects) of $6.2 billion, mainly due to the increase in
the forward price of LNG.
●
Looking forward, the outlook for working capital remains subject to
a number of factors, including price. However, following the build
in working capital as a result of rising gas prices since 2021, we
now expect the working capital movement to include a release of
around $7 billion, weighted toward the second-half of 2023 and
2024, primarily as LNG cargoes are delivered.
●
Capital expenditure* in the quarter was $3.2 billion. bp now expects capital
expenditure of around $15.5 billion in 2022, if the acquisition of
Archaea Energy completes before year end.
●
During the third quarter, bp completed share buybacks
of $2.9 billion. The $3.5
billion share buyback programme announced with the second quarter
results was completed on 27 October 2022.
●
Net debt fell for the tenth successive quarter to
reach $22.0
billion at the end of the third quarter.
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Further $2.5 billion share buyback within disciplined financial
frame
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●
During the third quarter bp generated surplus cash flow*
of $3.5 billion and
intends to execute a $2.5 billion share buyback prior to announcing
its fourth-quarter results, bringing total announced share buybacks
from 2022 surplus cash flow to $8.5 billion, equivalent to 60% of
2022 surplus cash flow year to date.
●
For 2022 and subject to maintaining a strong investment grade
credit rating, bp remains committed to using 60% of surplus cash
flow for share buybacks and intends to allocate the remaining 40%
to further strengthen the balance sheet.
●
In setting the buyback each quarter, the board will continue to
take into account factors including the cumulative level of and
outlook for surplus cash flow.
●
Against the authority granted at bp's 2022 annual general meeting
to repurchase up to 1.95 billion shares, bp had repurchased 677
million shares at 31 October.
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Progressing transformation to an Integrated Energy
Company
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●
In resilient hydrocarbons bp is accelerating its biogas strategy -
part of its bioenergy Transition Growth Engine - agreeing to
acquire Archaea Energy a leading US biogas company. bp has also
continued to make progress high-grading its portfolio: completing
the creation of Azule Energy a 50:50 joint venture combining its
Angolan assets with those of Eni; taking the final investment
decision on the Cypre project offshore Trinidad; and announcing an
agreement to sell its upstream business in Algeria to
Eni.
●
In convenience and mobility bp continued to advance its growth
strategy in EV charging and convenience: announcing plans to
collaborate with Hertz in North America to install a national
network of EV charging solutions for Hertz and its customers
powered by bp pulse; and expanding its partnership with leading
retailer REWE in Germany, to install fast, reliable, convenient
charging for customers while they shop.
●
In low carbon energy bp continued to progress its renewables and
hydrogen strategy. In Australia, bp closed its acquisition of a
40.5% stake in AREH, one of the world's largest planned renewables
and green hydrogen* energy hubs. And in the UK, two bp-led projects
- H2Teesside and Net Zero Teesside Power - have been shortlisted in
Phase 2 of the UK government's cluster sequencing process for
support of carbon capture, use and storage (CCUS).
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Third quarter results show bp continuing to execute its disciplined
financial frame. Net debt fell for the tenth successive quarter; we
are investing with discipline; and we are delivering on our
commitment to shareholder distributions - announcing a further $2.5
billion share buyback.
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Murray Auchincloss
Chief financial officer
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The commentary above contains forward-looking statements and should
be read in conjunction with the cautionary statement on page
39.
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Top of page 3
Financial results
At 31 December 2021, the group's reportable segments were gas &
low carbon energy, oil production & operations, customers &
products and Rosneft. The group has ceased to report Rosneft as a
separate segment in the group's financial reporting for 2022. From
the first quarter of 2022, the group's reportable segments are gas
& low carbon energy, oil production & operations and
customers & products. For more information see Note 1 Basis of
preparation - Investment in
Rosneft. For the period from 1
January 2022 to 27 February 2022, any net income from Rosneft is
classified as an adjusting item.
In addition to the highlights on page 2:
●
Loss attributable to bp shareholders in the third
quarter was $2.2 billion compared with a loss
of $2.5 billion in the same period of 2021.
Loss attributable to bp shareholders in the nine
months was $13.3 billion compared with a profit
of $5.2 billion in the same period
of 2021.
●
Adjusting items* in the third quarter and nine
months were an adverse pre-tax impact
of $8.3 billion and $39.4 billion respectively,
compared with an adverse pre-tax impact
of $6.4 billion and $5.7 billion in
the same periods of 2021.
●
As a result of bp's two nominated directors stepping-down from the
Rosneft board on 27 February, bp determined that it no longer meets
the criteria set out under IFRS for having "significant influence"
over Rosneft. bp therefore no longer equity accounts for its
interest in Rosneft from that date, treating it prospectively as a
financial asset measured at fair value. Within
the nine-month result, the loss of significant influence
and an impairment assessment led to a net pre-tax charge
of $24.0 billion classified as an adjusting item,
reducing equity by $14.4 billion. 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 in
the nine-month result, reducing equity by $1.2 billion.
See Note 1 for further information.
● Adjusting
items for the third quarter and nine months 2022 also include
adverse fair value accounting effects* of $10.1 billion and $16.7
billion respectively compared to an adverse pre-tax impact of $6.1
billion and $7.2 billion respectively in the same periods of 2021.
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 and recognises changes in value
of the LNG contracts being risk managed.
●
Adjusting items for the third quarter and nine
months 2022 also include a non-taxable gain
of $2.0 billion arising from the contribution of
bp's Angolan business to Azule Energy.
●
There were pre-tax inventory holding losses
of $2.9 billion and gains
of $2.8 billion for the third quarter and nine
months 2022 respectively. The loss arose in the third quarter
due to falls in crude and product prices, compared to the
significant increases in the first half of the year.
●
The effective tax rate (ETR) on RC profit or loss* for
the third quarter and nine months was 96%
and -242% respectively, compared with -175% and 57%
for the same periods in 2021. Excluding adjusting items, the
underlying ETR* for the third quarter and nine
months was 37% and 33% respectively, compared
with 35% and 31% for the same periods a year ago. The
higher underlying ETR for the third quarter and nine
months reflects the UK Energy Profits Levy on North Sea
profits and the absence of equity-accounted earnings from Rosneft,
partly offset by changes in the geographical mix of profits. ETR on
RC profit or loss and underlying ETR are non-GAAP
measures.
●
Operating cash flow* for the third quarter and nine
months 2022
was $8.3 billion and $27.4 billion respectively,
compared
with $6.0 billion and $17.5 billion for
the same periods last year.
●
Capital expenditure* in the third quarter and nine
months 2022
was $3.2 billion and $9.0 billion respectively,
compared
with $2.9 billion and $9.2 billion in
the same periods of 2021.
●
Total divestment and other proceeds for the third quarter and
nine
months were $0.6 billion and $2.5 billion respectively,
compared
with $0.3 billion and $5.4 billion for
the same periods in 2021. Other proceeds for the nine
months 2022 consist of $0.6 billion of proceeds from the
disposal of a loan note related to the Alaska divestment.
See page 31 for further information.
●
At the end of the third quarter, net debt* was $22.0
billion, compared with $22.8 billion at the end of
the second quarter 2022
and $32.0 billion at the end of
the third quarter 2021.
Top of page 4
Analysis of RC profit (loss) before interest and tax and
reconciliation to profit (loss) for the period
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Third
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Second
|
Third
|
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Nine
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Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
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months
|
months
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$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
RC profit (loss) before interest and tax
|
|
|
|
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gas
& low carbon energy
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|
(2,956)
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2,737
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(4,135)
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|
(1,743)
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222
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|
oil
production & operations
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6,965
|
7,237
|
2,692
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18,033
|
7,289
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|
customers
& products
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2,586
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3,531
|
1,060
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8,098
|
2,634
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|
other
businesses & corporate(a)
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(1,093)
|
(1,028)
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118
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|
(26,840)
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21
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|
Of
which:
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other
businesses & corporate excluding Rosneft
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(1,093)
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(1,028)
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(750)
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(2,807)
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(1,853)
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Rosneft
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-
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-
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868
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(24,033)
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1,874
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Consolidation
adjustment - UPII*
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(21)
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(21)
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(42)
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(8)
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(60)
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RC profit (loss) before interest and tax
|
|
5,481
|
12,456
|
(307)
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|
(2,460)
|
10,106
|
|
Finance
costs and net finance expense relating to pensions and other
post-retirement benefits
|
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(633)
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(539)
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(688)
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(1,816)
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(2,104)
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Taxation on a RC basis
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|
(4,646)
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(3,988)
|
(1,740)
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(10,327)
|
(4,561)
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|
Non-controlling interests
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|
(179)
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(279)
|
(199)
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|
(772)
|
(670)
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|
RC profit (loss) attributable to bp shareholders*
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23
|
7,650
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(2,934)
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(15,375)
|
2,771
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Inventory holding gains (losses)*
|
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(2,868)
|
2,146
|
500
|
|
2,779
|
3,183
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|
Taxation (charge) credit on inventory holding gains and
losses
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|
682
|
(539)
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(110)
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(694)
|
(715)
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|
Profit (loss) for the period attributable to bp
shareholders
|
|
(2,163)
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9,257
|
(2,544)
|
|
(13,290)
|
5,239
|
Analysis of underlying RC profit (loss) before interest and
tax
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Underlying RC profit (loss) before interest and tax
|
|
|
|
|
|
|
|
|
gas
& low carbon energy
|
|
6,240
|
3,080
|
1,807
|
|
12,915
|
5,317
|
|
oil
production & operations
|
|
5,211
|
5,902
|
2,461
|
|
15,796
|
6,268
|
|
customers
& products
|
|
2,725
|
4,006
|
1,158
|
|
8,887
|
2,641
|
|
other
businesses & corporate(a)
|
|
(405)
|
(201)
|
550
|
|
(865)
|
1,127
|
|
Of
which:
|
|
|
|
|
|
|
|
|
other
businesses & corporate excluding Rosneft
|
|
(405)
|
(201)
|
(373)
|
|
(865)
|
(848)
|
|
Rosneft
|
|
-
|
-
|
923
|
|
-
|
1,975
|
|
Consolidation
adjustment - UPII
|
|
(21)
|
(21)
|
(42)
|
|
(8)
|
(60)
|
|
Underlying RC profit before interest and tax
|
|
13,750
|
12,766
|
5,934
|
|
36,725
|
15,293
|
|
Finance
costs and net finance expense relating to pensions and other
post-retirement benefits
|
|
(565)
|
(509)
|
(513)
|
|
(1,560)
|
(1,579)
|
|
Taxation on an underlying RC basis
|
|
(4,856)
|
(3,527)
|
(1,900)
|
|
(11,547)
|
(4,294)
|
|
Non-controlling interests
|
|
(179)
|
(279)
|
(199)
|
|
(772)
|
(670)
|
|
Underlying RC profit attributable to bp shareholders*
|
|
8,150
|
8,451
|
3,322
|
|
22,846
|
8,750
|
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 6-15 for
the segments.
(a) From first
quarter 2022 the results of Rosneft, previously reported as a
separate segment, are also included in other businesses &
corporate. Comparative information for 2021 has been restated to
reflect the changes in reportable segments. For more information
see Note 1 Basis of preparation
- Investment
in Rosneft.
Top of page 5
Operating Metrics
|
Operating metrics
|
|
Nine months 2022
|
|
vs Nine months 2021
|
|
Tier 1 and tier 2 process safety events*
|
|
32
|
|
-18
|
|
Reported recordable injury frequency*
|
|
0.184
|
|
+23.0%
|
|
upstream* production(a) (mboe/d)
|
|
2,249
|
|
+3.2%
|
|
upstream unit production costs*(b) ($/boe)
|
|
6.25
|
|
-10.2%
|
|
bp-operated hydrocarbon plant reliability*
|
|
95.8%
|
|
+1.5
|
|
bp-operated refining availability*(a)
|
|
94.4%
|
|
-0.2
|
(a)
See Operational updates on
pages 6, 9 and 11.
(b)
Reflecting higher volumes and lower cost including impact of
conversion to equity-accounted entities.
Outlook & Guidance
Macro outlook
●
bp expects oil prices to remain elevated in the fourth quarter due
to the recent OPEC+ supply cut reducing supply amid ongoing
uncertainty associated with Russian oil exports.
●
bp expects global gas prices to remain elevated and volatile during
the fourth quarter due to a lack of supply to Europe with the
outlook heavily dependent on Russian pipeline flows or other supply
disruptions.
●
bp expects industry refining margins to remain elevated in the
fourth quarter due to sanctioning of Russian crude and product and
energy prices are also expected to remain high.
4Q22 guidance
●
bp expects fourth-quarter 2022 upstream* production on a reported
basis to be slightly lower compared with the third-quarter 2022,
primarily in our gas regions.
●
In our customers and products business, we expect lower marketing
margins and seasonally lower volumes and, in Castrol, base oil
prices to remain elevated. There also remains an elevated level of
uncertainty due to the ongoing impacts of the conflict in Ukraine,
COVID-19 restrictions and inflationary pressure. In refining, we
expect margins to remain high, the benefits of which will be
partially offset by elevated energy prices, a higher level of
turnaround activity, and operational impacts following the shutdown
of the bp-Husky Toledo refinery in Ohio, US.
2022 Guidance
In
addition to the guidance on page 2:
●
bp now expects reported upstream production to be slightly higher
compared with 2021 despite the absence of production from our
Russia incorporated joint ventures. On an underlying basis, we
expect upstream production to be higher.
●
bp continues to expect the other businesses & corporate
underlying annual charge to be in a range of $1.2-1.4 billion for
2022. The charge may vary from quarter to quarter.
●
bp continues to expect the depreciation, depletion and amortization
to be at a similar level to 2021.
●
The underlying ETR* for 2022 is expected to be around 35% but is
sensitive to the impact that volatility in the current price
environment may have on the geographical mix of the group's profits
and losses.
●
bp now expects capital expenditure of around $15.5 billion in 2022,
if the acquisition of Archaea Energy completes before year
end.
●
bp now expects divestment and other proceeds to be slightly over $3
billion in 2022. Against a target of $25 billion of divestment and
other proceeds between the second half of 2020 and 2025 bp has now
received $15.3 billion of proceeds.
●
bp continues to expect Gulf of Mexico oil spill payments for the
year to be around $1.4 billion pre-tax including the $1.2 billion
pre-tax paid during the second quarter.
●
For 2022, and subject to maintaining a strong investment grade
credit rating, bp remains committed to using 60% of surplus cash
flow* for share buybacks and intends to allocate the remaining 40%
to further strengthen the balance sheet.
●
On average, 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 and have capacity for an annual increase in
the dividend per ordinary share of around 4% through
2025.
● In setting the dividend
per ordinary share and the buyback each quarter, the board will
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.
|
The commentary above contains forward-looking statements and should
be read in conjunction with the cautionary statement on page
39.
|
Top of page 6
gas & low carbon energy
Financial results
●
The replacement cost loss before interest and tax for
the third quarter and nine months was $2,956
million and $1,743 million respectively, compared
with a loss of $4,135 million and a profit of $222
million for the same periods in 2021. The third
quarter and nine months include an adverse impact of net
adjusting items* of $9,196 million and $14,658
million respectively, compared with an adverse impact of net
adjusting items of $5,942 million and $5,095
million for the same periods in 2021.
●
After excluding adjusting items, the underlying replacement
cost profit before interest and tax* for the third
quarter and nine months was $6,240
million and $12,915 million respectively, compared
with $1,807 million and $5,317 million for the
same periods in 2021. Adjusting items include adverse fair
value accounting effects* of $9,224 million for the
quarter and $14,313 million for the nine months,
primarily arising from a further significant increase in forward
gas prices during the third quarter. 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
and recognises changes in value of the LNG contracts being risk
managed.
●
The underlying replacement cost profit for the third quarter,
compared with the same period in 2021, reflects higher
realizations, higher production and an exceptional gas
marketing and trading result. For the nine months the
result reflects higher realizations, higher production and an
exceptional gas marketing and trading result, partially offset by a
higher depreciation, depletion and amortization
charge.
Operational update
●
Reported production for the quarter was 981mboe/d, 10.4% higher
than the same period in 2021. Underlying production* was 4.7%
higher, mainly due to major project* start-ups in 2021, partly
offset by base decline.
●
Reported production for the nine months was 957mboe/d,
7.4% higher than the same period in 2021. Underlying
production for the nine months was 7.7% higher due to
major project start-ups in 2021, partly offset by base
decline.
●
Renewables pipeline* at the end of the quarter was 26.9GW (bp
net). The renewables pipeline increased by 1.1GW during the quarter
due to net increases in the solar pipeline. The renewables pipeline
increased by 3.8GW for the nine months, primarily as a result
of bp and its partner EnBW being awarded a lease option off the
east coast of Scotland to develop an offshore wind project with a
total generating capacity of around 2.9GW (1.45GW bp net) in the
first quarter, and additions to the Lightsource bp
pipeline.
Strategic progress
gas
● On
11 October bp signed a 30-month exploration and production
sharing contract for the BirAllah gas resource in Mauritania. Under
the terms of the agreement bp and its partners Kosmos Energy and
Societe Mauritanienne des Hydrocarbures can continue to assess and
develop commercial and technical options for the
project.
● On
24 September bp announced Cypre, bp's third subsea gas development
in Trinidad and Tobago, which is expected to start drilling next
year with first gas expected in 2025. The project is planned to
have seven wells and subsea trees and be tied back into bp's
Juniper platform.
●
On 12 September bp announced it has agreed to purchase EDF Energy
Services, expanding bp's presence in the US commercial and
industrial retail power and gas business. Subject to regulatory
approvals, completion is expected by the end of year.
●
On 7 September bp announced that it had agreed to sell its upstream
business in Algeria to Eni, including its interests in the
gas-producing In Amenas and In Salah concessions. bp holds working
interests of 33.15% and 45.89% in the In Salah and In Amenas
projects respectively. Both are operated by joint ventures co-owned
by bp, Equinor and Sonatrach. Completion is subject to customary
governmental and other approvals.
low carbon energy
●
On 12 October bp submitted a bid to the UK government for our
proposed flagship green hydrogen* project. HyGreen Teesside is one
of the UK's largest proposed green hydrogen plants and aims to
produce an initial 80 megawatts (MW) of hydrogen by 2025 and 500MW
by 2030.
●
In September bp closed its 40.5% investment in AREH (Asian
Renewable Energy Hub) project in the Pilbara region of Western
Australia, which has the potential to be one of the largest
renewables and green hydrogen hubs in the world. The other partners
are InterContinental Energy (26.4%), CWP Global (17.8%) and
Macquarie Capital and Macquarie's Green Investment Group
(15.3%).
●
On 15 August bp-led projects H2Teesside and Net Zero Teesside Power
were shortlisted in Phase 2 of the UK government's cluster
sequencing process for support of CCUS.
Top of page 7
gas & low carbon energy (continued)
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Profit (loss) before interest and tax
|
|
(2,970)
|
2,728
|
(4,120)
|
|
(1,741)
|
263
|
|
Inventory holding (gains) losses*
|
|
14
|
9
|
(15)
|
|
(2)
|
(41)
|
|
RC profit (loss) before interest and tax
|
|
(2,956)
|
2,737
|
(4,135)
|
|
(1,743)
|
222
|
|
Net (favourable) adverse impact of adjusting items
|
|
9,196
|
343
|
5,942
|
|
14,658
|
5,095
|
|
Underlying RC profit before interest and tax
|
|
6,240
|
3,080
|
1,807
|
|
12,915
|
5,317
|
|
Taxation on an underlying RC basis
|
|
(1,478)
|
(717)
|
(389)
|
|
(3,204)
|
(1,168)
|
|
Underlying RC profit before interest
|
|
4,762
|
2,363
|
1,418
|
|
9,711
|
4,149
|
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|
Total depreciation, depletion and amortization
|
|
1,177
|
1,203
|
1,230
|
|
3,635
|
3,199
|
|
|
|
|
|
|
|
|
|
|
Exploration write-offs
|
|
|
|
|
|
|
|
|
Exploration write-offs
|
|
10
|
-
|
14
|
|
8
|
41
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA*
|
|
|
|
|
|
|
|
|
Total adjusted EBITDA
|
|
7,427
|
4,283
|
3,051
|
|
16,558
|
8,557
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure*
|
|
|
|
|
|
|
|
|
gas
|
|
872
|
681
|
736
|
|
2,195
|
2,252
|
|
low
carbon energy(a)
|
|
86
|
142
|
336
|
|
447
|
1,452
|
|
Total capital expenditure
|
|
958
|
823
|
1,072
|
|
2,642
|
3,704
|
(a)
Nine months 2021 includes $712 million in respect of the remaining
payment to Equinor for our investment in our strategic US offshore
wind partnership and $326 million as a lease option fee deposit
paid to The Crown Estate in connection with our participation in
the UK Round 4 Offshore Wind Leasing together with our partner
EnBW.
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Production (net of
royalties)(b)
|
|
|
|
|
|
|
|
|
Liquids* (mb/d)
|
|
117
|
112
|
109
|
|
117
|
110
|
|
Natural gas (mmcf/d)
|
|
5,011
|
4,709
|
4,520
|
|
4,873
|
4,527
|
|
Total hydrocarbons* (mboe/d)
|
|
981
|
924
|
889
|
|
957
|
891
|
|
|
|
|
|
|
|
|
|
|
Average realizations*(c)
|
|
|
|
|
|
|
|
|
Liquids ($/bbl)
|
|
88.03
|
105.50
|
66.39
|
|
92.93
|
61.11
|
|
Natural gas ($/mcf)
|
|
9.85
|
8.42
|
5.26
|
|
8.74
|
4.44
|
|
Total hydrocarbons* ($/boe)
|
|
60.80
|
55.79
|
34.91
|
|
55.91
|
30.21
|
(b)
Includes bp's share of production of equity-accounted entities in
the gas & low carbon energy segment.
(c)
Realizations are based on sales by consolidated subsidiaries only -
this excludes equity-accounted entities.
Top of page 8
gas & low carbon energy (continued)
|
|
|
30 September 2022
|
30 June 2022
|
30 September 2021
|
|
|
|
|||
|
low carbon energy(a)
|
|
|||
|
|
|
|
|
|
|
Renewables (bp net, GW)
|
|
|
|
|
|
Installed renewables capacity*
|
|
2.0
|
2.0
|
1.7
|
|
|
|
|
|
|
|
Developed renewables to FID*
|
|
4.6
|
4.4
|
3.6
|
|
Renewables pipeline
|
|
26.9
|
25.8
|
23.3
|
|
of which by geographical area:
|
|
|
|
|
|
Renewables
pipeline - Americas
|
|
17.5
|
16.9
|
16.8
|
|
Renewables
pipeline - Asia Pacific
|
|
1.7
|
1.4
|
1.1
|
|
Renewables
pipeline - Europe
|
|
7.6
|
7.2
|
5.2
|
|
Renewables
pipeline - Other
|
|
0.1
|
0.2
|
0.2
|
|
of which by technology:
|
|
|
|
|
|
Renewables
pipeline - offshore wind
|
|
5.2
|
5.2
|
3.7
|
|
Renewables
pipeline - solar
|
|
21.7
|
20.6
|
19.6
|
|
Total Developed renewables to FID and Renewables
pipeline
|
|
31.5
|
30.1
|
26.9
|
(a)
Because of rounding, some totals may not agree exactly with the sum
of their component parts.
Top of page 9
oil production & operations
Financial results
●
The replacement cost profit before interest and tax for
the third quarter and nine months was $6,965
million and $18,033 million respectively, compared
with $2,692 million and $7,289 million for the
same periods in 2021. The third quarter and nine
months include a favourable impact of net adjusting items*
of $1,754 million and $2,237
million respectively, compared with a favourable impact of net
adjusting items of $231 million and $1,021
million for the same periods in 2021.
●
After excluding adjusting items, the underlying replacement
cost profit before interest and tax* for the third
quarter and nine months was $5,211
million and $15,796 million respectively, compared
with a profit of $2,461 million and $6,268
million for the same periods in 2021.
●
The underlying replacement cost profit for the third quarter
and nine months, compared with the same periods in 2021, reflects
higher realizations.
Operational update
●
Reported production for the quarter was 1,317mboe/d, broadly
flat with the third quarter of 2021. Underlying
production* for the quarter was 2.4% higher compared with
the third quarter of 2021 reflecting reduced
weather impacts in the US Gulf of Mexico and bpx energy performance
partly offset by seasonal maintenance.
●
Reported production for the nine months was 1,292mboe/d,
broadly flat with the same period of 2021. Underlying
production for the nine months was 2.6% higher compared
with the same period of 2021 reflecting bpx energy
performance, major projects* and reduced weather impacts
in the US Gulf of Mexico partly offset by base
performance.
Strategic progress
●
On 1 August bp and Eni completed the formation of Azule Energy, an
independent incorporated 50:50 joint venture between bp and Eni,
that combines the two companies' Angolan businesses.
●
Following the announcement on 13 June that bp had agreed to sell
its 50% interest in the Sunrise oil sands project in Alberta,
Canada, to Calgary-based Cenovus Energy the transaction completed
on 31 August 2022. As part of the deal, bp acquired Cenovus's
interest in the Bay du Nord project in Eastern Canada, adding to
its sizeable acreage position offshore Newfoundland and
Labrador.
●
As a result of project commissioning issues, bp now expects
start-up of the Mad Dog Phase 2 project in the Gulf of Mexico to be
delayed until 2023 (bp operator 60.5%, Woodside Energy 23.9%,
Chevron 15.6%).
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Profit before interest and tax
|
|
6,966
|
7,230
|
2,691
|
|
18,028
|
7,297
|
|
Inventory holding (gains) losses*
|
|
(1)
|
7
|
1
|
|
5
|
(8)
|
|
RC profit before interest and tax
|
|
6,965
|
7,237
|
2,692
|
|
18,033
|
7,289
|
|
Net (favourable) adverse impact of adjusting items
|
|
(1,754)
|
(1,335)
|
(231)
|
|
(2,237)
|
(1,021)
|
|
Underlying RC profit before interest and tax
|
|
5,211
|
5,902
|
2,461
|
|
15,796
|
6,268
|
|
Taxation on an underlying RC basis
|
|
(2,921)
|
(2,295)
|
(1,220)
|
|
(7,128)
|
(2,888)
|
|
Underlying RC profit before interest
|
|
2,290
|
3,607
|
1,241
|
|
8,668
|
3,380
|
Top of page 10
oil production & operations (continued)
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|
Total depreciation, depletion and amortization
|
|
1,381
|
1,371
|
1,767
|
|
4,181
|
4,900
|
|
|
|
|
|
|
|
|
|
|
Exploration write-offs
|
|
|
|
|
|
|
|
|
Exploration write-offs
|
|
180
|
79
|
16
|
|
310
|
80
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA*
|
|
|
|
|
|
|
|
|
Total adjusted EBITDA
|
|
6,772
|
7,352
|
4,244
|
|
20,287
|
11,248
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure*
|
|
|
|
|
|
|
|
|
Total capital expenditure
|
|
1,386
|
1,208
|
1,099
|
|
3,848
|
3,566
|
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Production (net of
royalties)(a)
|
|
|
|
|
|
|
|
|
Liquids* (mb/d)
|
|
959
|
935
|
975
|
|
947
|
970
|
|
Natural gas (mmcf/d)
|
|
2,075
|
1,964
|
1,961
|
|
2,001
|
1,853
|
|
Total hydrocarbons* (mboe/d)
|
|
1,317
|
1,274
|
1,313
|
|
1,292
|
1,289
|
|
|
|
|
|
|
|
|
|
|
Average realizations*(b)
|
|
|
|
|
|
|
|
|
Liquids ($/bbl)
|
|
93.14
|
100.34
|
65.53
|
|
92.35
|
59.60
|
|
Natural gas ($/mcf)
|
|
11.73
|
7.97
|
5.61
|
|
9.75
|
4.59
|
|
Total hydrocarbons* ($/boe)
|
|
86.21
|
87.46
|
57.72
|
|
83.42
|
52.35
|
(a)
Includes bp's share of production of equity-accounted entities in
the oil production & operations segment.
(b)
Realizations are based on sales by consolidated subsidiaries only -
this excludes equity-accounted entities.
Top of page 11
customers & products
Financial results
●
The replacement cost profit before interest and tax for
the third quarter and nine months was $2,586
million and $8,098 million respectively, compared
with $1,060 million and $2,634 million for the
same periods in 2021. The third quarter and nine
months included an adverse impact of net adjusting items*
of $139 million and $789 million respectively,
compared with an adverse impact of net adjusting items of $98
million and $7 million for the same periods
in 2021.
●
After excluding adjusting items, the underlying replacement
cost profit before interest and tax* for the third
quarter and nine months was $2,725
million and $8,887 million respectively, compared
with $1,158 million and $2,641 million for the
same periods in 2021.
●
The customers & products result for the third quarter, compared
with the same period in 2021, reflects the benefit of higher
performance in the refining and customers businesses. The result
for the nine months reflects a higher performance in both refining
and oil trading.
● customers -
the convenience and mobility results, excluding Castrol, for the
third quarter and nine months were higher than the same
periods in 2021. The results benefited from improved retail,
midstream including biofuels and aviation performance, partially
offset by adverse foreign exchange impacts and inflationary
pressure. Convenience continued to show strong momentum, despite a
challenging environment.
Castrol
results for the third quarter and nine
months were lower
than the same periods in 2021, due to increasing input costs and
ongoing COVID restrictions, particularly in China, as well as
adverse foreign exchange impacts.
● products -
the products results for the third quarter and nine
months were higher compared with the same periods in 2021. In
refining for the quarter and nine months, higher realized margins
were partially offset by higher energy costs and turnaround and
maintenance activity. The result for the nine months also reflects
an exceptionally strong oil trading performance in the first half
of 2022.
Operational update
●
Utilization for the third quarter and nine months was
higher than the same periods in 2021. bp-operated refining
availability* for the third quarter and nine
months was 94.3% and 94.4% respectively, lower
compared with 95.6% and 94.6% for the same periods in
2021. The third quarter was impacted by a higher level of unplanned
maintenance. Following a fire at the bp-Husky Toledo refinery in
Ohio, US, the refinery has been shut down since 20 September, with
investigations ongoing.
Strategic progress
● We
made strong progress in accelerating our electric vehicle (EV)
charging ambition across key markets through a focus on 'on-the-go'
charging and fleets:
◦
EV charge points* in the quarter grew by more than 60% compared to
the same period last year;
◦
In August, bp and Hertz signed a memorandum of understanding (MOU)
for the development of a national network of EV charging solutions
across North America powered by bp pulse;
◦
In August, bp and Avatr technology Co. Ltd. signed a strategic
collaboration agreement to accelerate the development of an EV
ultra-fast charging network in China, with the intent to roll out
more than 100 charging hubs in 19 cities by the end of
2023.
●
In October, bp announced the expansion of its strategic partnership
with leading retailer REWE in Germany, to install fast, reliable,
convenient charging for customers at up to 180 of their
sites.
●
In September, Air bp signed an MOU with China National Aviation
Fuel (CNAF) to explore opportunities to help decarbonize the
aviation sector, and in October made its first commercial delivery
of sustainable aviation fuel to Aberdeen International
Airport.
●
In September, Castrol and Renault Group announced the extension of
their lubricants aftermarket supply partnership until
2027.
●
On 8 August 2022, bp announced an agreement to sell its 50%
interest in the bp-Husky Toledo refinery in Ohio US to Cenovus
Energy Inc., its partner in the facility.
Top of page 12
customers & products (continued)
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Profit (loss) before interest and tax
|
|
(269)
|
5,693
|
1,511
|
|
10,880
|
5,577
|
|
Inventory holding (gains) losses*
|
|
2,855
|
(2,162)
|
(451)
|
|
(2,782)
|
(2,943)
|
|
RC profit (loss) before interest and tax
|
|
2,586
|
3,531
|
1,060
|
|
8,098
|
2,634
|
|
Net (favourable) adverse impact of adjusting items
|
|
139
|
475
|
98
|
|
789
|
7
|
|
Underlying RC profit before interest and tax
|
|
2,725
|
4,006
|
1,158
|
|
8,887
|
2,641
|
|
Of
which:(a)
|
|
|
|
|
|
|
|
|
customers
- convenience & mobility
|
|
1,137
|
679
|
806
|
|
2,338
|
2,415
|
|
Castrol - included in customers
|
|
151
|
223
|
231
|
|
630
|
830
|
|
products
- refining & trading
|
|
1,588
|
3,327
|
352
|
|
6,549
|
226
|
|
Taxation on an underlying RC basis
|
|
(725)
|
(783)
|
(314)
|
|
(1,908)
|
(570)
|
|
Underlying RC profit before interest
|
|
2,000
|
3,223
|
844
|
|
6,979
|
2,071
|
(a)
A reconciliation to RC profit before interest and tax by business
is provided on page 31.
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Adjusted EBITDA*(b)
|
|
|
|
|
|
|
|
|
customers - convenience & mobility
|
|
1,448
|
994
|
1,130
|
|
3,290
|
3,392
|
|
Castrol - included in customers
|
|
187
|
261
|
267
|
|
743
|
944
|
|
products - refining & trading
|
|
1,974
|
3,727
|
775
|
|
7,726
|
1,495
|
|
|
|
3,422
|
4,721
|
1,905
|
|
11,016
|
4,887
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|
Total depreciation, depletion and amortization
|
|
697
|
715
|
747
|
|
2,129
|
2,246
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure*
|
|
|
|
|
|
|
|
|
customers - convenience & mobility
|
|
404
|
334
|
301
|
|
1,085
|
872
|
|
Castrol - included in customers
|
|
42
|
43
|
37
|
|
137
|
120
|
|
products - refining & trading
|
|
309
|
341
|
296
|
|
1,018
|
776
|
|
Total capital expenditure
|
|
713
|
675
|
597
|
|
2,103
|
1,648
|
(b)
A reconciliation to RC profit before interest and tax by business
is provided on page 31.
|
Retail(c)
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
bp retail sites* - total (#)
|
|
20,550
|
20,600
|
20,350
|
|
20,550
|
20,350
|
|
bp
retail sites in growth markets*
|
|
2,600
|
2,650
|
2,650
|
|
2,600
|
2,650
|
|
Strategic
convenience sites*
|
|
2,250
|
2,200
|
2,050
|
|
2,250
|
2,050
|
(c)
Reported to the nearest 50.
|
Marketing sales of refined products (mb/d)
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
US
|
|
1,143
|
1,163
|
1,161
|
|
1,140
|
1,103
|
|
Europe
|
|
1,098
|
1,032
|
968
|
|
1,005
|
838
|
|
Rest of World
|
|
451
|
439
|
439
|
|
454
|
450
|
|
|
|
2,692
|
2,634
|
2,568
|
|
2,599
|
2,391
|
|
Trading/supply sales of refined products
|
|
355
|
369
|
425
|
|
359
|
392
|
|
Total sales volume of refined products
|
|
3,047
|
3,003
|
2,993
|
|
2,958
|
2,783
|
Top of page 13
customers & products (continued)
|
Refining marker
margin*(d)
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
bp average refining marker margin (RMM) ($/bbl)
|
|
35.5
|
45.5
|
15.2
|
|
33.4
|
12.6
|
(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 2021 RMM would be $15.7/bbl and $13.0/bbl
respectively.
|
Refinery throughputs (mb/d)
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
US
|
|
703
|
637
|
737
|
|
700
|
719
|
|
Europe
|
|
809
|
841
|
804
|
|
818
|
771
|
|
Rest of World
|
|
-
|
2
|
81
|
|
29
|
87
|
|
Total refinery throughputs
|
|
1,512
|
1,480
|
1,622
|
|
1,547
|
1,577
|
|
bp-operated refining availability* (%)
|
|
94.3
|
93.9
|
95.6
|
|
94.4
|
94.6
|
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. From first quarter
2022 the results of Rosneft, previously reported as a separate
segment, are also included in other businesses & corporate.
Comparative information for 2021 has been restated to reflect the
changes in reportable segments. For more information see Note
1 Basis of Preparation - Investment in
Rosneft.
Financial results
●
The replacement cost loss before interest and tax for
the third quarter and nine months was $1,093
million and $26,840 million respectively, compared
with a profit of $118 million and $21
million for the same periods in 2021. The third
quarter and nine months included an adverse impact
of net adjusting items* of $688 million and $25,975
million respectively, compared with an
adverse impact of net adjusting items of $432
million and $1,106 million for the same periods in
2021. The adjusting items for the nine months of 2022
mainly relate to Rosneft. Fair value accounting effects* for
the third quarter and nine months had an
adverse impact of $785 million and $1,896
million respectively, compared with an
adverse impact of $263 million and $637
million for the same periods in 2021.
●
After excluding adjusting items, the underlying replacement
cost loss before interest and tax* for the third
quarter and nine months was $405
million and $865 million respectively, compared with
a profit of $550 million and $1,127
million for the same periods in 2021.
●
For other businesses & corporate excluding Rosneft, after
excluding adjusting items, the underlying replacement cost loss
before interest and tax for the third quarter and nine
months was $405 million and $865
million respectively, compared with $373
million and $848 million for the same periods in
2021.
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Profit (loss) before interest and tax
|
|
(1,093)
|
(1,028)
|
153
|
|
(26,840)
|
212
|
|
Inventory holding (gains) losses*
|
|
-
|
-
|
(35)
|
|
-
|
(191)
|
|
RC profit (loss) before interest and tax
|
|
(1,093)
|
(1,028)
|
118
|
|
(26,840)
|
21
|
|
Net
(favourable) adverse impact of adjusting items(a)
|
|
688
|
827
|
432
|
|
25,975
|
1,106
|
|
Underlying RC profit (loss) before interest and tax
|
|
(405)
|
(201)
|
550
|
|
(865)
|
1,127
|
|
Taxation on an underlying RC basis
|
|
206
|
167
|
(82)
|
|
396
|
(30)
|
|
Underlying RC profit (loss) before interest
|
|
(199)
|
(34)
|
468
|
|
(469)
|
1,097
|
(a)
Includes fair value accounting effects relating to the hybrid bonds
that were issued on 17 June 2020. See page 34 for more
information.
other businesses & corporate (excluding Rosneft)
Strategic progress
● On
20 September, bp ventures invested $6 million (as a part of a $8
million investment round) in the all-electric ride-hailing business
Freebee. Freebee provides free, on-demand, 100% electric
transportation in the US as part of the public transit network of
many municipalities, colleges and universities, and private
entities such as corporate business parks and hotels and
resorts.
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Profit (loss) before interest and tax
|
|
(1,093)
|
(1,028)
|
(750)
|
|
(2,807)
|
(1,853)
|
|
Inventory holding (gains) losses*
|
|
-
|
-
|
-
|
|
-
|
-
|
|
RC profit (loss) before interest and tax
|
|
(1,093)
|
(1,028)
|
(750)
|
|
(2,807)
|
(1,853)
|
|
Net (favourable) adverse impact of adjusting items
|
|
688
|
827
|
377
|
|
1,942
|
1,005
|
|
Underlying RC profit (loss) before interest and tax
|
|
(405)
|
(201)
|
(373)
|
|
(865)
|
(848)
|
|
Taxation on an underlying RC basis
|
|
206
|
167
|
11
|
|
396
|
166
|
|
Underlying RC profit (loss) before interest
|
|
(199)
|
(34)
|
(362)
|
|
(469)
|
(682)
|
Top of page 15
other businesses & corporate (Rosneft)
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Profit (loss) before interest and tax
|
|
-
|
-
|
903
|
|
(24,033)
|
2,065
|
|
Inventory holding (gains) losses*
|
|
-
|
-
|
(35)
|
|
-
|
(191)
|
|
RC profit (loss) before interest and tax
|
|
-
|
-
|
868
|
|
(24,033)
|
1,874
|
|
Net (favourable) adverse impact of adjusting items
|
|
-
|
-
|
55
|
|
24,033
|
101
|
|
Underlying RC profit (loss) before interest and tax
|
|
-
|
-
|
923
|
|
-
|
1,975
|
|
Taxation on an underlying RC basis
|
|
-
|
-
|
(93)
|
|
-
|
(196)
|
|
Underlying RC profit (loss) before interest
|
|
-
|
-
|
830
|
|
-
|
1,779
|
Top of page 16
Financial statements
Group income statement
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
|
|
|
|
|
|
|
|
|
Sales and other operating revenues (Note 5)
|
|
55,011
|
67,866
|
36,174
|
|
172,135
|
107,185
|
|
Earnings from joint ventures - after interest and
tax
|
|
498
|
62
|
197
|
|
939
|
300
|
|
Earnings from associates - after interest and
tax
|
|
275
|
127
|
1,103
|
|
1,273
|
2,560
|
|
Interest and other income
|
|
159
|
142
|
158
|
|
495
|
322
|
|
Gains on sale of businesses and fixed assets
|
|
1,866
|
1,309
|
235
|
|
3,693
|
1,590
|
|
Total revenues and other income
|
|
57,809
|
69,506
|
37,867
|
|
178,535
|
111,957
|
|
Purchases
|
|
39,993
|
39,141
|
23,937
|
|
106,942
|
60,834
|
|
Production and manufacturing expenses
|
|
7,193
|
7,601
|
6,026
|
|
21,769
|
19,446
|
|
Production and similar taxes
|
|
639
|
624
|
354
|
|
1,768
|
902
|
|
Depreciation, depletion and amortization (Note 6)
|
|
3,467
|
3,512
|
3,944
|
|
10,604
|
10,942
|
|
Net impairment and losses on sale of businesses and fixed assets
(Note 3)
|
|
417
|
445
|
220
|
|
26,893
|
(2,344)
|
|
Exploration expense
|
|
225
|
128
|
116
|
|
445
|
322
|
|
Distribution and administration expenses
|
|
3,262
|
3,453
|
3,077
|
|
9,795
|
8,566
|
|
Profit (loss) before interest and taxation
|
|
2,613
|
14,602
|
193
|
|
319
|
13,289
|
|
Finance costs
|
|
649
|
556
|
693
|
|
1,869
|
2,098
|
|
Net
finance (income) expense relating to pensions and other
post-retirement benefits
|
|
(16)
|
(17)
|
(5)
|
|
(53)
|
6
|
|
Profit (loss) before taxation
|
|
1,980
|
14,063
|
(495)
|
|
(1,497)
|
11,185
|
|
Taxation
|
|
3,964
|
4,527
|
1,850
|
|
11,021
|
5,276
|
|
Profit (loss) for the period
|
|
(1,984)
|
9,536
|
(2,345)
|
|
(12,518)
|
5,909
|
|
Attributable to
|
|
|
|
|
|
|
|
|
bp
shareholders
|
|
(2,163)
|
9,257
|
(2,544)
|
|
(13,290)
|
5,239
|
|
Non-controlling
interests
|
|
179
|
279
|
199
|
|
772
|
670
|
|
|
|
(1,984)
|
9,536
|
(2,345)
|
|
(12,518)
|
5,909
|
|
|
|
|
|
|
|
|
|
|
Earnings per share (Note 7)
|
|
|
|
|
|
|
|
|
Profit (loss) for the period attributable to bp
shareholders
|
|
|
|
|
|
|
|
|
Per
ordinary share (cents)
|
|
|
|
|
|
|
|
|
Basic
|
|
(11.45)
|
47.74
|
(12.63)
|
|
(69.01)
|
25.88
|
|
Diluted
|
|
(11.45)
|
47.18
|
(12.63)
|
|
(69.01)
|
25.72
|
|
Per
ADS (dollars)
|
|
|
|
|
|
|
|
|
Basic
|
|
(0.69)
|
2.86
|
(0.76)
|
|
(4.14)
|
1.55
|
|
Diluted
|
|
(0.69)
|
2.83
|
(0.76)
|
|
(4.14)
|
1.54
|
Top of page 17
Condensed group statement of comprehensive income
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) for the period
|
|
(1,984)
|
9,536
|
(2,345)
|
|
(12,518)
|
5,909
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to profit or
loss
|
|
|
|
|
|
|
|
|
Currency
translation differences(a)
|
|
(1,725)
|
(2,454)
|
(599)
|
|
(5,928)
|
(302)
|
|
Exchange (gains)
losses on translation of foreign operations reclassified to gain or
loss on sale of businesses and fixed assets(b)
|
|
-
|
-
|
-
|
|
10,791
|
-
|
|
Cash
flow hedges and costs of hedging
|
|
(142)
|
99
|
(398)
|
|
179
|
(667)
|
|
Share
of items relating to equity-accounted entities, net of
tax
|
|
(134)
|
59
|
(3)
|
|
10
|
(60)
|
|
Income
tax relating to items that may be reclassified
|
|
(54)
|
(70)
|
80
|
|
(226)
|
89
|
|
|
|
(2,055)
|
(2,366)
|
(920)
|
|
4,826
|
(940)
|
|
Items that will not be reclassified to profit or loss
|
|
|
|
|
|
|
|
|
Remeasurements of
the net pension and other post-retirement benefit liability or
asset(c)
|
|
112
|
(392)
|
494
|
|
1,848
|
3,110
|
|
Cash
flow hedges that will subsequently be transferred to the balance
sheet
|
|
(1)
|
(3)
|
(2)
|
|
(5)
|
1
|
|
Income
tax relating to items that will not be reclassified
|
|
19
|
179
|
(130)
|
|
(470)
|
(883)
|
|
|
|
130
|
(216)
|
362
|
|
1,373
|
2,228
|
|
Other comprehensive income
|
|
(1,925)
|
(2,582)
|
(558)
|
|
6,199
|
1,288
|
|
Total comprehensive income
|
|
(3,909)
|
6,954
|
(2,903)
|
|
(6,319)
|
7,197
|
|
Attributable to
|
|
|
|
|
|
|
|
|
bp
shareholders
|
|
(4,042)
|
6,742
|
(3,084)
|
|
(6,978)
|
6,559
|
|
Non-controlling
interests
|
|
133
|
212
|
181
|
|
659
|
638
|
|
|
|
(3,909)
|
6,954
|
(2,903)
|
|
(6,319)
|
7,197
|
(a)
Third and second quarter 2022 are 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) See Note 1 Basis of
preparation - Investment in
Rosneft.
(c) See Note 1 Basis
of preparation - Pensions and other
post-retirement benefits for further information.
Top of page 18
Condensed group statement of changes in equity
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
bp shareholders'
|
Non-controlling interests
|
Total
|
|
|
$ million
|
|
equity
|
Hybrid bonds
|
Other interest
|
equity
|
|
At 1 January 2021
|
|
71,250
|
12,076
|
2,242
|
85,568
|
|
|
|
|
|
|
|
|
Total comprehensive income
|
|
6,559
|
377
|
261
|
7,197
|
|
Dividends
|
|
(3,236)
|
-
|
(245)
|
(3,481)
|
|
Cash
flow hedges transferred to the balance sheet, net of
tax
|
|
(8)
|
-
|
-
|
(8)
|
|
Repurchase of ordinary share capital
|
|
(1,897)
|
-
|
-
|
(1,897)
|
|
Share-based payments, net of tax
|
|
407
|
-
|
-
|
407
|
|
Share
of equity-accounted entities' changes in equity, net of
tax
|
|
558
|
-
|
-
|
558
|
|
Issue of perpetual hybrid bonds
|
|
(24)
|
883
|
-
|
859
|
|
Payments on perpetual hybrid bonds
|
|
(7)
|
(431)
|
-
|
(438)
|
|
Transactions
involving non-controlling interests, net of tax
|
|
873
|
-
|
(372)
|
501
|
|
At 30 September 2021
|
|
74,475
|
12,905
|
1,886
|
89,266
|
(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. For more information see
Note 1.
(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 19
Group balance sheet
|
|
|
30 September
|
31 December
|
|
$ million
|
|
2022
|
2021
|
|
Non-current assets
|
|
|
|
|
Property, plant and equipment
|
|
105,045
|
112,902
|
|
Goodwill
|
|
11,145
|
12,373
|
|
Intangible assets
|
|
6,311
|
6,451
|
|
Investments in joint ventures
|
|
14,673
|
9,982
|
|
Investments
in associates(a)
|
|
7,836
|
21,001
|
|
Other investments
|
|
2,597
|
2,544
|
|
Fixed assets
|
|
147,607
|
165,253
|
|
Loans
|
|
1,185
|
922
|
|
Trade and other receivables
|
|
1,094
|
2,693
|
|
Derivative financial instruments
|
|
9,333
|
7,006
|
|
Prepayments
|
|
549
|
479
|
|
Deferred tax assets
|
|
5,271
|
6,410
|
|
Defined benefit pension plan surpluses
|
|
10,003
|
11,919
|
|
|
|
175,042
|
194,682
|
|
Current assets
|
|
|
|
|
Loans
|
|
285
|
355
|
|
Inventories
|
|
29,492
|
23,711
|
|
Trade and other receivables
|
|
34,817
|
27,139
|
|
Derivative financial instruments
|
|
11,491
|
5,744
|
|
Prepayments
|
|
1,148
|
2,486
|
|
Current tax receivable
|
|
293
|
542
|
|
Other investments
|
|
300
|
280
|
|
Cash and cash equivalents
|
|
29,304
|
30,681
|
|
|
|
107,130
|
90,938
|
|
Assets classified as held for sale (Note 2)
|
|
1,310
|
1,652
|
|
|
|
108,440
|
92,590
|
|
Total assets
|
|
283,482
|
287,272
|
|
Current liabilities
|
|
|
|
|
Trade and other payables
|
|
56,270
|
52,611
|
|
Derivative financial instruments
|
|
24,461
|
7,565
|
|
Accruals
|
|
6,327
|
5,638
|
|
Lease liabilities
|
|
1,842
|
1,747
|
|
Finance debt
|
|
3,877
|
5,557
|
|
Current tax payable
|
|
4,120
|
1,554
|
|
Provisions
|
|
6,857
|
5,256
|
|
|
|
103,754
|
79,928
|
|
Liabilities directly associated with assets classified as held for
sale (Note 2)
|
|
388
|
359
|
|
|
|
104,142
|
80,287
|
|
Non-current liabilities
|
|
|
|
|
Other payables
|
|
9,313
|
10,567
|
|
Derivative financial instruments
|
|
16,430
|
6,356
|
|
Accruals
|
|
1,024
|
968
|
|
Lease liabilities
|
|
6,053
|
6,864
|
|
Finance debt
|
|
42,683
|
55,619
|
|
Deferred tax liabilities
|
|
9,016
|
8,780
|
|
Provisions
|
|
16,517
|
19,572
|
|
Defined benefit pension plan and other post-retirement benefit plan
deficits
|
|
4,971
|
7,820
|
|
|
|
106,007
|
116,546
|
|
Total liabilities
|
|
210,149
|
196,833
|
|
Net assets
|
|
73,333
|
90,439
|
|
Equity
|
|
|
|
|
bp
shareholders' equity
|
|
58,181
|
75,463
|
|
Non-controlling interests
|
|
15,152
|
14,976
|
|
Total equity
|
|
73,333
|
90,439
|
(a) See Note 1 Basis
of preparation - Investment in
Rosneft.
Top of page 20
Condensed group cash flow statement
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Operating activities
|
|
|
|
|
|
|
|
|
Profit (loss) before taxation
|
|
1,980
|
14,063
|
(495)
|
|
(1,497)
|
11,185
|
|
Adjustments to
reconcile profit (loss) before taxation to net cash provided by
operating activities
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization and exploration expenditure written
off
|
|
3,657
|
3,591
|
3,976
|
|
10,922
|
11,063
|
|
Net
impairment and (gain) loss on sale of businesses and fixed
assets
|
|
(1,449)
|
(864)
|
(15)
|
|
23,200
|
(3,934)
|
|
Earnings from
equity-accounted entities, less dividends received
|
|
(391)
|
72
|
(784)
|
|
(1,412)
|
(1,956)
|
|
Net
charge for interest and other finance expense, less net interest
paid
|
|
72
|
(46)
|
63
|
|
210
|
392
|
|
Share-based
payments
|
|
251
|
208
|
219
|
|
629
|
401
|
|
Net
operating charge for pensions and other post-retirement benefits,
less contributions and benefit payments for unfunded
plans
|
|
(15)
|
(36)
|
(80)
|
|
(197)
|
(471)
|
|
Net
charge for provisions, less payments
|
|
173
|
796
|
666
|
|
1,453
|
2,740
|
|
Movements in
inventories and other current and non-current assets and
liabilities
|
|
6,764
|
(4,416)
|
3,850
|
|
577
|
1,083
|
|
Income
taxes paid
|
|
(2,754)
|
(2,505)
|
(1,424)
|
|
(6,524)
|
(3,007)
|
|
Net cash provided by operating activities
|
|
8,288
|
10,863
|
5,976
|
|
27,361
|
17,496
|
|
Investing activities
|
|
|
|
|
|
|
|
|
Expenditure on
property, plant and equipment, intangible and other
assets
|
|
(3,105)
|
(2,666)
|
(2,647)
|
|
(8,373)
|
(8,115)
|
|
Acquisitions, net of cash acquired
|
|
(3)
|
3
|
(53)
|
|
(8)
|
(54)
|
|
Investment in joint ventures
|
|
(40)
|
(159)
|
(70)
|
|
(493)
|
(859)
|
|
Investment in associates
|
|
(46)
|
(16)
|
(133)
|
|
(87)
|
(187)
|
|
Total cash capital expenditure
|
|
(3,194)
|
(2,838)
|
(2,903)
|
|
(8,961)
|
(9,215)
|
|
Proceeds from disposal of fixed assets
|
|
12
|
202
|
(19)
|
|
682
|
625
|
|
Proceeds from disposal of businesses, net of cash
disposed
|
|
594
|
111
|
332
|
|
1,254
|
4,067
|
|
Proceeds from loan repayments
|
|
15
|
16
|
33
|
|
60
|
161
|
|
Cash provided from investing activities
|
|
621
|
329
|
346
|
|
1,996
|
4,853
|
|
Net cash used in investing activities
|
|
(2,573)
|
(2,509)
|
(2,557)
|
|
(6,965)
|
(4,362)
|
|
Financing activities
|
|
|
|
|
|
|
|
|
Net issue (repurchase) of shares (Note 7)
|
|
(2,876)
|
(2,288)
|
(926)
|
|
(6,756)
|
(1,426)
|
|
Lease liability payments
|
|
(478)
|
(472)
|
(506)
|
|
(1,448)
|
(1,580)
|
|
Proceeds from long-term financing
|
|
1
|
-
|
2,398
|
|
2,003
|
6,339
|
|
Repayments of long-term financing
|
|
(4,035)
|
(4,573)
|
(6,745)
|
|
(9,500)
|
(13,841)
|
|
Net increase (decrease) in short-term debt
|
|
(618)
|
(688)
|
(81)
|
|
(1,582)
|
108
|
|
Issue of perpetual hybrid bonds
|
|
194
|
62
|
859
|
|
322
|
859
|
|
Payments relating to perpetual hybrid bonds
|
|
(180)
|
(161)
|
(55)
|
|
(489)
|
(438)
|
|
Payments
relating to transactions involving non-controlling interests (Other
interest)
|
|
(2)
|
(1)
|
(560)
|
|
(8)
|
(560)
|
|
Receipts
relating to transactions involving non-controlling interests (Other
interest)
|
|
3
|
-
|
-
|
|
10
|
671
|
|
Dividends paid - bp shareholders
|
|
(1,140)
|
(1,062)
|
(1,101)
|
|
(3,270)
|
(3,227)
|
|
-
non-controlling interests
|
|
(66)
|
(63)
|
(87)
|
|
(194)
|
(245)
|
|
Net cash provided by (used in) financing activities
|
|
(9,197)
|
(9,246)
|
(6,804)
|
|
(20,912)
|
(13,340)
|
|
Currency translation differences relating to cash and cash
equivalents
|
|
(322)
|
(414)
|
(177)
|
|
(861)
|
(211)
|
|
Increase (decrease) in cash and cash equivalents
|
|
(3,804)
|
(1,306)
|
(3,562)
|
|
(1,377)
|
(417)
|
|
Cash and cash equivalents at beginning of period
|
|
33,108
|
34,414
|
34,256
|
|
30,681
|
31,111
|
|
Cash and cash equivalents at end of period
|
|
29,304
|
33,108
|
30,694
|
|
29,304
|
30,694
|
Top of page 21
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 2021 included
in BP
Annual Report and Form 20-F 2021.
bp prepares its consolidated financial statements included within
BP Annual Report and Form 20-F on the basis of International
Financial Reporting Standards (IFRS) as issued by the International
Accounting Standards Board (IASB), IFRS as adopted by the UK, and
European Union (EU), and in accordance with the provisions of the
UK Companies Act 2006 as applicable to companies reporting under
international accounting standards. IFRS as adopted by the UK does
not differ from IFRS as adopted by the EU. IFRS as adopted by the
UK and EU differ in certain respects from IFRS as issued by the
IASB. The differences have no impact on the group's consolidated
financial statements for the periods presented.
The financial information presented herein has been prepared in
accordance with the accounting policies expected to be used in
preparing BP Annual Report and Form 20-F
2022 which are the same as
those used in preparing BP Annual Report and Form
20-F 2021. There are
no new or amended standards or interpretations adopted from 1
January 2022 onwards that have a significant impact on the
financial information.
Significant accounting judgements and estimates
bp's significant accounting judgements and estimates were disclosed
in BP
Annual Report and Form 20-F 2021. These have been subsequently considered at the
end of each quarter to determine if any changes were required to
those judgements and estimates.
Provisions
The nominal risk-free discount rate applied to provisions is
reviewed on a quarterly basis. The discount rate applied to the
group's provisions was revised to 2.5% in the third quarter (31
December 2021 2.0%) to reflect increasing US Treasury yields. The
principal impact of this rate increase was a $1.2 billion decrease
in the decommissioning provision with a corresponding decrease in
the carrying amount of property, plant and equipment of $0.9
billion.
Pensions and other post-retirement benefits
The group's defined benefit plans are reviewed quarterly to
determine any changes to the fair value of the plan assets or
present value of the defined benefit obligations. As a result of
the review during the third quarter of 2022, the group's total net
defined benefit plan surplus as at 30 September 2022 is $5.0
billion, compared to a surplus of $5.3 billion at 30 June 2022 and
$4.1 billion at 31 December 2021. The movement for the nine months
principally reflects net actuarial gains reported in other
comprehensive income arising from significant increases in the UK,
US and Eurozone discount rates partly offset by negative asset
performance and increases in inflation rates, and foreign exchange.
The current environment is likely to continue to affect the values
of the plan assets and obligations resulting in potential
volatility in the amount of the net defined benefit pension plan
surplus/deficit recognized.
Investment in Rosneft
On 27 February 2022, bp announced it will exit its shareholding in
Rosneft and bp's two nominated Rosneft directors both stepped down
from Rosneft's board. As a result, the significant judgement on
significant influence over Rosneft was reassessed and a new
significant estimate was identified for the fair value of bp's
equity investment in Rosneft. From that date, bp accounts for its
interest in Rosneft as a financial asset measured at fair value
within 'Other investments'. Russia has implemented a number of
counter-sanctions including restrictions on the divestment from
Russian assets by foreign investors. Further, bp is not able to
sell its Rosneft shares on the Moscow Stock Exchange and is unable
to ascribe probabilities to possible outcomes of any exit process.
As a result, it is considered 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 as at 30 September 2022.
At Rosneft's annual general meeting on 30 June 2022, shareholders
approved a resolution to pay dividends of 23.63 roubles per
ordinary share. bp did not participate in the meeting. In line with
the resolution, bp would be entitled to total dividends of 49
billion roubles before withholding tax for the second half of 2021.
bp has not been formally notified of any such payment having been
made. Russia has imposed restrictions on the payments of dividends
to certain foreign shareholders, including those based in the UK,
requiring such dividends to be paid in roubles into restricted bank
accounts and a requirement for approval of the Russian government
for transfers from any such bank accounts out of Russia. Given the
restrictions applicable to such accounts, management considers that
the criteria for recognising any dividend income from Rosneft
for the nine months to 30 September 2022 have not been
met.
As a result of bp's decision to exit its shareholding in Rosneft in
the first quarter 2022, the group has ceased to report Rosneft as a
separate segment in its financial reporting for 2022. Rosneft
results up to 27 February 2022 are included within other businesses
& corporate (OB&C), and 2021 comparatives have been
restated to include the Rosneft segment as per the table
below.
Top of page 22
Note 1. Basis of preparation (continued)
|
|
|
OB&C
(as previously reported)
|
Rosneft
(as previously reported)
|
OB&C restated
|
OB&C
(as previously reported)
|
Rosneft
(as previously reported)
|
OB&C restated
|
|
|
|
Third
|
Third
|
Third
|
Nine
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
months
|
months
|
months
|
|
$ million
|
|
2021
|
2021
|
2021
|
2021
|
2021
|
2021
|
|
|
|
|
|
||||
|
Profit (loss) before interest and tax
|
|
(750)
|
903
|
153
|
(1,853)
|
2,065
|
212
|
|
Inventory holding (gains) losses*
|
|
-
|
(35)
|
(35)
|
-
|
(191)
|
(191)
|
|
RC profit (loss) before interest and tax
|
|
(750)
|
868
|
118
|
(1,853)
|
1,874
|
21
|
|
Net (favourable) adverse impact of adjusting items
|
|
377
|
55
|
432
|
1,005
|
101
|
1,106
|
|
Underlying RC profit (loss) before interest and tax
|
|
(373)
|
923
|
550
|
(848)
|
1,975
|
1,127
|
|
Taxation on an underlying RC basis
|
|
11
|
(93)
|
(82)
|
166
|
(196)
|
(30)
|
|
Underlying RC profit (loss) before interest
|
|
(362)
|
830
|
468
|
(682)
|
1,779
|
1,097
|
Since the first quarter 2022, bp has also determined that its other
businesses with Rosneft within Russia, which are included in the
oil production & operations segment also have a fair value of
nil and are subject to similar sanctions and restrictions with
respect to the receipt of dividends as described above.
Management considers that the criteria for recognising dividend
income from other businesses with Rosneft within Russia that
declared a dividend in the third quarter 2022 have not been
met.
The total pre-tax charge for the nine months to 30 September 2022
relating to bp's investment in Rosneft and other businesses with
Rosneft in Russia is $25,520 million.
Events after the reporting period
On 30 September 2022 EU ministers reached political agreement on a
proposed regulation to address high energy prices. The regulation
includes a temporary solidarity contribution on the oil, gas, coal
and refinery sectors. Any impact to bp will be accounted for once
the legislation has been substantively enacted.
Top of page 23
Note 2. Non-current assets held for sale
The carrying amount of assets classified as held for sale at 30
September 2022 is $1,310 million, with associated liabilities of
$388 million. These relate to the transactions described
below.
On 7 September 2022, bp announced that it had agreed to sell its
upstream business in Algeria to Eni. Completion is subject to
customary governmental and other approvals. Assets of $498 million
and associated liabilities of $46 million have been classified as
held for sale in the group balance sheet at 30 September
2022.
On 8 August 2022, bp announced an agreement to sell its 50%
interest in the bp-Husky Toledo refinery in Ohio US, to Cenovus
Energy Inc., its partner in the facility. Following a fire at the
refinery, it has been shut down since 20 September, with
investigations ongoing. Assets of $812 million and associated
liabilities of $342 million have been classified as held for sale
in the group balance sheet at 30 September 2022.
Transactions that were classified as held for sale during 2022, but
completed during the third quarter, are described
below.
On 12 June 2022, bp entered into an agreement to sell its 50%
interest in the Sunrise oil sands project in Canada to Cenovus
Energy Inc. for C$600 million (Canadian dollars) cash (subject to
customary closing adjustments), up to C$600 million of contingent
consideration expiring after two years and Cenovus's 35% position
in the undeveloped Bay du Nord project offshore Canada. The
transaction closed on 31 August 2022.
On 11 March 2022, bp and Eni signed an agreement to form Azule
Energy, an independent incorporated 50:50 joint venture, through
the combination of the two companies' Angolan businesses. The
transaction closed on 1 August 2022 and, from that date, bp
reported an equity accounted investment in Azule Energy. This
investment was initially recognized at a fair value of $4,922
million (net of deferred gain) and the transaction resulted in a
non-taxable accounting gain of $1,951 million on completion and a
deferred gain of the same amount that will be recognized over time
as the Azule Energy assets are depreciated.
Note 3. Impairment and losses on sale of businesses and fixed
assets(a)
Net impairment reversals and losses on sale of businesses and fixed
assets for the third quarter were a charge of $417 million and
net impairment charges and losses on sale of businesses and fixed
assets for the nine months were $26,893 million, compared with
net charges of $220 million and reversals of
$2,344 million for the same periods in 2021 and include net
impairment reversals for the third quarter of
$11 million and charges for the nine months of
$14,777 million, compared with net charges of
$256 million and reversals of $2,488 million for the same
periods in 2021.
gas & low carbon energy segment
In the gas & low carbon energy segment there was a net
impairment charge of $6 million and $523 million for the
third quarter and nine months respectively, compared with net
charges of $197 million and reversals of $951 million for
the same periods in 2021.
oil production & operations segment
In the oil production & operations segment there was a net
impairment reversal of $43 million and charge of
$336 million for the third quarter and nine months
respectively, compared with net charges of $5 million and
reversals of $1,652 million for the same periods in
2021.
Impairment charges for the nine months 2022 included charges
related to the decision to exit other businesses with Rosneft
within Russia.
other businesses and corporate
In the other businesses and corporate segment there was an
impairment reversal of $1 million and net charge of
$13,492 million for the third quarter and nine months
respectively, compared with a net impairment reversal of
$2 million and charge of $51 million for the same periods
in 2021 and a loss on sale of businesses and fixed assets of
$11,082 million.
The impairment charge and the loss on sale of businesses and fixed
assets for the nine months mainly relates to bp's investment in
Rosneft - see Note 1.
(a)
All disclosures are pre-tax.
Top of page 24
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
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
gas & low carbon energy
|
|
(2,956)
|
2,737
|
(4,135)
|
|
(1,743)
|
222
|
|
oil production & operations
|
|
6,965
|
7,237
|
2,692
|
|
18,033
|
7,289
|
|
customers & products
|
|
2,586
|
3,531
|
1,060
|
|
8,098
|
2,634
|
|
other
businesses & corporate(a)
|
|
(1,093)
|
(1,028)
|
118
|
|
(26,840)
|
21
|
|
|
|
5,502
|
12,477
|
(265)
|
|
(2,452)
|
10,166
|
|
Consolidation adjustment - UPII*
|
|
(21)
|
(21)
|
(42)
|
|
(8)
|
(60)
|
|
RC profit (loss) before interest and tax
|
|
5,481
|
12,456
|
(307)
|
|
(2,460)
|
10,106
|
|
Inventory holding gains (losses)*
|
|
|
|
|
|
|
|
|
gas
& low carbon energy
|
|
(14)
|
(9)
|
15
|
|
2
|
41
|
|
oil
production & operations
|
|
1
|
(7)
|
(1)
|
|
(5)
|
8
|
|
customers
& products
|
|
(2,855)
|
2,162
|
451
|
|
2,782
|
2,943
|
|
other
businesses & corporate(a)
|
|
-
|
-
|
35
|
|
-
|
191
|
|
Profit (loss) before interest and tax
|
|
2,613
|
14,602
|
193
|
|
319
|
13,289
|
|
Finance costs
|
|
649
|
556
|
693
|
|
1,869
|
2,098
|
|
Net
finance expense/(income) relating to pensions and other
post-retirement benefits
|
|
(16)
|
(17)
|
(5)
|
|
(53)
|
6
|
|
Profit (loss) before taxation
|
|
1,980
|
14,063
|
(495)
|
|
(1,497)
|
11,185
|
|
|
|
|
|
|
|
|
|
|
RC profit (loss) before interest and tax*
|
|
|
|
|
|
|
|
|
US
|
|
3,954
|
3,322
|
1,964
|
|
9,553
|
4,826
|
|
Non-US
|
|
1,527
|
9,134
|
(2,271)
|
|
(12,013)
|
5,280
|
|
|
|
5,481
|
12,456
|
(307)
|
|
(2,460)
|
10,106
|
(a) From first
quarter 2022 the results of Rosneft, previously reported as a
separate segment, are also included in other businesses &
corporate. Comparative information for 2021 has been restated to
reflect the changes in reportable segments. For more information
see Note 1 Basis of preparation
- Investment
in Rosneft.
Top of page 25
Note 5. Sales and other operating revenues
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
By segment
|
|
|
|
|
|
|
|
|
gas & low carbon energy
|
|
8,053
|
13,243
|
2,554
|
|
29,462
|
16,295
|
|
oil production & operations
|
|
8,599
|
9,504
|
6,285
|
|
26,261
|
17,037
|
|
customers & products
|
|
47,831
|
55,557
|
34,382
|
|
145,551
|
92,649
|
|
other businesses & corporate
|
|
552
|
516
|
423
|
|
1,520
|
1,240
|
|
|
|
65,035
|
78,820
|
43,644
|
|
202,794
|
127,221
|
|
|
|
|
|
|
|
|
|
|
Less: sales and other operating revenues between
segments
|
|
|
|
|
|
|
|
|
gas & low carbon energy
|
|
2,785
|
1,621
|
1,269
|
|
6,354
|
3,364
|
|
oil production & operations
|
|
7,589
|
8,753
|
5,423
|
|
23,378
|
15,206
|
|
customers & products
|
|
(276)
|
392
|
354
|
|
808
|
576
|
|
other businesses & corporate
|
|
(74)
|
188
|
424
|
|
119
|
890
|
|
|
|
10,024
|
10,954
|
7,470
|
|
30,659
|
20,036
|
|
|
|
|
|
|
|
|
|
|
External sales and other operating revenues
|
|
|
|
|
|
|
|
|
gas & low carbon energy
|
|
5,268
|
11,622
|
1,285
|
|
23,108
|
12,931
|
|
oil production & operations
|
|
1,010
|
751
|
862
|
|
2,883
|
1,831
|
|
customers & products
|
|
48,107
|
55,165
|
34,028
|
|
144,743
|
92,073
|
|
other businesses & corporate
|
|
626
|
328
|
(1)
|
|
1,401
|
350
|
|
Total sales and other operating revenues
|
|
55,011
|
67,866
|
36,174
|
|
172,135
|
107,185
|
|
|
|
|
|
|
|
|
|
|
By geographical area
|
|
|
|
|
|
|
|
|
US
|
|
22,451
|
27,331
|
15,372
|
|
68,934
|
45,168
|
|
Non-US
|
|
45,111
|
54,331
|
28,578
|
|
142,239
|
85,161
|
|
|
|
67,562
|
81,662
|
43,950
|
|
211,173
|
130,329
|
|
Less: sales and other operating revenues between areas
|
|
12,551
|
13,796
|
7,776
|
|
39,038
|
23,144
|
|
|
|
55,011
|
67,866
|
36,174
|
|
172,135
|
107,185
|
|
|
|
|
|
|
|
|
|
|
Revenues from contracts with customers
|
|
|
|
|
|
|
|
|
Sales and other operating revenues include the following in
relation to revenues from contracts with customers:
|
|
|
|
|
|
|
|
|
Crude oil
|
|
1,322
|
2,034
|
1,275
|
|
5,500
|
3,900
|
|
Oil products
|
|
40,036
|
43,267
|
27,699
|
|
115,054
|
71,628
|
|
Natural gas, LNG and NGLs
|
|
11,106
|
8,944
|
5,475
|
|
30,730
|
13,929
|
|
Non-oil products and other revenues from contracts with
customers
|
|
2,267
|
1,825
|
2,275
|
|
6,437
|
5,276
|
|
Revenue from contracts with customers
|
|
54,731
|
56,070
|
36,724
|
|
157,721
|
94,733
|
|
Other
operating revenues(a)
|
|
280
|
11,796
|
(550)
|
|
14,414
|
12,452
|
|
Total sales and other operating revenues
|
|
55,011
|
67,866
|
36,174
|
|
172,135
|
107,185
|
(a)
Principally relates to commodity derivative transactions including
sales of bp own production in trading books.
Top of page 26
Note 6. Depreciation, depletion and amortization
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Total depreciation, depletion and amortization by
segment
|
|
|
|
|
|
|
|
|
gas & low carbon energy
|
|
1,177
|
1,203
|
1,230
|
|
3,635
|
3,199
|
|
oil production & operations
|
|
1,381
|
1,371
|
1,767
|
|
4,181
|
4,900
|
|
customers & products
|
|
697
|
715
|
747
|
|
2,129
|
2,246
|
|
other businesses & corporate
|
|
212
|
223
|
200
|
|
659
|
597
|
|
|
|
3,467
|
3,512
|
3,944
|
|
10,604
|
10,942
|
|
Total depreciation, depletion and amortization by geographical
area
|
|
|
|
|
|
|
|
|
US
|
|
1,180
|
1,159
|
1,206
|
|
3,422
|
3,488
|
|
Non-US
|
|
2,287
|
2,353
|
2,738
|
|
7,182
|
7,454
|
|
|
|
3,467
|
3,512
|
3,944
|
|
10,604
|
10,942
|
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. As part of the share buyback
programme announced on 27 April 2021, 571 million ordinary shares
repurchased for cancellation were settled during the third quarter
2022 for a total cost of $2,876 million. This brings the
total number of shares repurchased and settled in the nine months
to 1,314 million for a total cost of $6,756 million. A
further 239 million ordinary shares were repurchased and settled in
October for a total cost of $1,235 million which has been
accrued at 30 September 2022. 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.
165 million new ordinary shares were issued in April 2022 as
non-cash consideration for the acquisition of the public units of
BP Midstream Partners LP.
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
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Results for the period
|
|
|
|
|
|
|
|
|
Profit (loss) for the period attributable to bp
shareholders
|
|
(2,163)
|
9,257
|
(2,544)
|
|
(13,290)
|
5,239
|
|
Less: preference dividend
|
|
-
|
1
|
1
|
|
1
|
2
|
|
Profit (loss) attributable to bp ordinary shareholders
|
|
(2,163)
|
9,256
|
(2,545)
|
|
(13,291)
|
5,237
|
|
|
|
|
|
|
|
|
|
|
Number of shares (thousand)(a)(b)
|
|
|
|
|
|
|
|
|
Basic
weighted average number of shares outstanding
|
|
18,885,725
|
19,388,427
|
20,150,186
|
|
19,260,486
|
20,239,365
|
|
ADS
equivalent(c)
|
|
3,147,620
|
3,231,404
|
3,358,364
|
|
3,210,081
|
3,373,228
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of shares outstanding used to calculate diluted earnings per
share
|
|
18,885,725
|
19,619,628
|
20,150,186
|
|
19,260,486
|
20,359,280
|
|
ADS
equivalent(c)
|
|
3,147,620
|
3,269,938
|
3,358,364
|
|
3,210,081
|
3,393,213
|
|
|
|
|
|
|
|
|
|
|
Shares in issue at period-end
|
|
18,566,848
|
19,135,400
|
20,008,900
|
|
18,566,848
|
20,008,900
|
|
ADS
equivalent(c)
|
|
3,094,474
|
3,189,233
|
3,334,816
|
|
3,094,474
|
3,334,816
|
(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, third quarter 2021 and nine months 2022 are 274,005
thousand (ADS equivalent 45,668 thousand), 123,543 thousand (ADS
equivalent 20,591 thousand) and 217,311 thousand (ADS equivalent
36,218 thousand).
(c)
One ADS is equivalent to six ordinary shares.
Top of page 27
Note 8. Dividends
Dividends payable
BP today announced an interim dividend of 6.006 cents per ordinary
share which is expected to be paid on 16 December 2022 to ordinary
shareholders and American Depositary Share (ADS) holders on the
register on 11 November 2022. The ex-dividend date will be 9
November 2022 for ADS holders and 10 November 2022 for ordinary
shareholders. The corresponding amount in sterling is due to be
announced on 6 December 2022, calculated based on the average of
the market exchange rates over three dealing days between 30
November 2022 and 2 December 2022. Holders of ADSs are expected to
receive $0.36036 per ADS (less applicable fees). The
board has decided not to offer a scrip dividend alternative in
respect of the third quarter 2022 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
|
|
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Dividends paid per ordinary share
|
|
|
|
|
|
|
|
|
cents
|
|
6.006
|
5.460
|
5.460
|
|
16.926
|
15.960
|
|
pence
|
|
5.168
|
4.356
|
3.953
|
|
13.683
|
11.433
|
|
Dividends paid per ADS (cents)
|
|
36.04
|
32.76
|
32.76
|
|
101.56
|
95.76
|
Note 9. Net debt
|
Net debt*
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Finance
debt(a)
|
|
46,560
|
52,866
|
63,214
|
|
46,560
|
63,214
|
|
Fair
value (asset) liability of hedges related to finance
debt(b)
|
|
4,746
|
3,058
|
(549)
|
|
4,746
|
(549)
|
|
|
|
51,306
|
55,924
|
62,665
|
|
51,306
|
62,665
|
|
Less: cash and cash equivalents
|
|
29,304
|
33,108
|
30,694
|
|
29,304
|
30,694
|
|
Net
debt(c)
|
|
22,002
|
22,816
|
31,971
|
|
22,002
|
31,971
|
|
Total equity
|
|
73,333
|
81,563
|
89,266
|
|
73,333
|
89,266
|
|
Gearing*
|
|
23.1%
|
21.9%
|
26.4%
|
|
23.1%
|
26.4%
|
(a)
The fair value of finance debt at 30 September 2022
was $41,414 million (30 June 2022 $49,056 million,
30 September 2021 $65,316 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 $116 million at 30 September 2022
(second quarter 2022 liability
of $246 million and third
quarter 2021 liability of $151 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.
As part of actively managing its debt portfolio, in the third
quarter the group bought back $2.9 billion of finance debt (second
quarter 2022 $4.5 billion, third quarter 2021 $4.2 billion
equivalent) consisting entirely of US dollar bonds. Year to date
the group has bought back a total of $7.4 billion of finance debt
($8.1 billion equivalent for the comparative period in 2021).
Derivatives associated with non-US dollar debt bought back in
relevant comparative periods 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 31 October 2022, is unaudited
and does not constitute statutory financial statements. Audited
financial information will be published in BP Annual Report and Form
20-F 2022. BP Annual Report and Form
20-F 2021 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 28
Additional information
Capital expenditure*
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Capital expenditure
|
|
|
|
|
|
|
|
|
Organic capital expenditure*
|
|
3,191
|
2,845
|
2,850
|
|
8,609
|
8,267
|
|
Inorganic
capital expenditure*(a)
|
|
3
|
(7)
|
53
|
|
352
|
948
|
|
|
|
3,194
|
2,838
|
2,903
|
|
8,961
|
9,215
|
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Capital expenditure by segment
|
|
|
|
|
|
|
|
|
gas
& low carbon energy(a)
|
|
958
|
823
|
1,072
|
|
2,642
|
3,704
|
|
oil production & operations
|
|
1,386
|
1,208
|
1,099
|
|
3,848
|
3,566
|
|
customers & products
|
|
713
|
675
|
597
|
|
2,103
|
1,648
|
|
other businesses & corporate
|
|
137
|
132
|
135
|
|
368
|
297
|
|
|
|
3,194
|
2,838
|
2,903
|
|
8,961
|
9,215
|
|
Capital expenditure by geographical area
|
|
|
|
|
|
|
|
|
US
|
|
1,377
|
1,253
|
1,176
|
|
3,727
|
3,553
|
|
Non-US
|
|
1,817
|
1,585
|
1,727
|
|
5,234
|
5,662
|
|
|
|
3,194
|
2,838
|
2,903
|
|
8,961
|
9,215
|
(a)
Nine months 2021 includes the final payment of $712 million in
respect of the strategic partnership with Equinor.
Top of page 29
Adjusting items*
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
gas & low carbon energy
|
|
|
|
|
|
|
|
|
Gains
on sale of businesses and fixed assets(a)
|
|
3
|
-
|
-
|
|
12
|
1,034
|
|
Net
impairment and losses on sale of businesses and fixed
assets(b)
|
|
(6)
|
(265)
|
(197)
|
|
(523)
|
950
|
|
Environmental and other provisions
|
|
-
|
-
|
-
|
|
-
|
-
|
|
Restructuring, integration and rationalization costs
|
|
-
|
1
|
-
|
|
5
|
(29)
|
|
Fair
value accounting effects(c)(d)
|
|
(9,224)
|
(74)
|
(5,808)
|
|
(14,313)
|
(6,872)
|
|
Other
|
|
31
|
(5)
|
63
|
|
161
|
(178)
|
|
|
|
(9,196)
|
(343)
|
(5,942)
|
|
(14,658)
|
(5,095)
|
|
oil production & operations
|
|
|
|
|
|
|
|
|
Gains
on sale of businesses and fixed assets(e)
|
|
1,851
|
1,278
|
261
|
|
3,378
|
645
|
|
Net
impairment and losses on sale of businesses and fixed
assets(b)
|
|
(326)
|
268
|
33
|
|
(1,262)
|
1,575
|
|
Environmental and other provisions
|
|
244
|
(204)
|
(68)
|
|
98
|
(909)
|
|
Restructuring, integration and rationalization costs
|
|
3
|
(7)
|
4
|
|
(14)
|
(90)
|
|
Fair value accounting effects
|
|
-
|
-
|
-
|
|
-
|
-
|
|
Other
|
|
(18)
|
-
|
1
|
|
37
|
(200)
|
|
|
|
1,754
|
1,335
|
231
|
|
2,237
|
1,021
|
|
customers & products
|
|
|
|
|
|
|
|
|
Gains on sale of businesses and fixed assets
|
|
10
|
31
|
(25)
|
|
302
|
(114)
|
|
Net impairment and losses on sale of businesses and fixed
assets
|
|
(85)
|
(434)
|
(58)
|
|
(532)
|
(136)
|
|
Environmental and other provisions
|
|
(1)
|
(35)
|
(1)
|
|
(36)
|
(9)
|
|
Restructuring, integration and rationalization costs
|
|
(4)
|
9
|
16
|
|
6
|
(35)
|
|
Fair
value accounting effects(d)
|
|
(59)
|
(62)
|
(30)
|
|
(498)
|
290
|
|
Other
|
|
-
|
16
|
-
|
|
(31)
|
(3)
|
|
|
|
(139)
|
(475)
|
(98)
|
|
(789)
|
(7)
|
|
other businesses &
corporate(f)
|
|
|
|
|
|
|
|
|
Gains on sale of businesses and fixed assets
|
|
1
|
-
|
-
|
|
-
|
-
|
|
Net impairment and losses on sale of businesses and fixed
assets
|
|
-
|
(15)
|
1
|
|
(16)
|
(50)
|
|
Environmental and other provisions
|
|
67
|
(89)
|
(65)
|
|
(25)
|
(137)
|
|
Restructuring, integration and rationalization costs
|
|
6
|
(3)
|
(12)
|
|
16
|
(111)
|
|
Fair
value accounting effects(d)
|
|
(785)
|
(686)
|
(263)
|
|
(1,896)
|
(637)
|
|
Rosneft(f)
|
|
-
|
-
|
(55)
|
|
(24,033)
|
(101)
|
|
Gulf of Mexico oil spill
|
|
(21)
|
(21)
|
(17)
|
|
(61)
|
(46)
|
|
Other
|
|
44
|
(13)
|
(21)
|
|
40
|
(24)
|
|
|
|
(688)
|
(827)
|
(432)
|
|
(25,975)
|
(1,106)
|
|
Total before interest and taxation
|
|
(8,269)
|
(310)
|
(6,241)
|
|
(39,185)
|
(5,187)
|
|
Finance
costs(g)
|
|
(68)
|
(30)
|
(175)
|
|
(256)
|
(525)
|
|
Total before taxation
|
|
(8,337)
|
(340)
|
(6,416)
|
|
(39,441)
|
(5,712)
|
|
Taxation
on adjusting items(h)
|
|
988
|
(461)
|
160
|
|
1,998
|
(267)
|
|
Taxation
- tax rate change effect of UK energy profits levy(i)
|
|
(778)
|
-
|
-
|
|
(778)
|
-
|
|
Total after taxation for period
|
|
(8,127)
|
(801)
|
(6,256)
|
|
(38,221)
|
(5,979)
|
(a)
Nine months 2021 relates to a gain from the divestment of a
20% stake in Oman Block 61.
(b)
See Note 3 for further information.
(c)
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 represents the change in value of LNG contracts
that are being risk managed, and the underlying result reflects how
bp risk-manages its LNG contracts.
(d)
For further information, including the nature of fair value
accounting effects reported in each segment, see
pages 3, 6 and 34.
(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. Second quarter
and nine months 2022 include 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)
From first quarter 2022 the results of Rosneft, previously reported
as a separate segment, are also included in other businesses &
corporate. Comparative information for 2021 has been restated to
reflect the changes in reportable segments. For more information
see Note 1 Basis of preparation - Investment in
Rosneft.
(g)
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.
(h)
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.
Top of page 30
(i)
Third quarter and nine months 2022 includes the deferred tax impact
of the UK Energy Profits Levy on existing temporary differences
unwinding over the period 1 October 2022 to 31 December 2025. The
levy increases 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.
Net debt including leases
|
Net debt including leases*
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Net debt
|
|
22,002
|
22,816
|
31,971
|
|
22,002
|
31,971
|
|
Lease liabilities
|
|
7,895
|
8,056
|
8,628
|
|
7,895
|
8,628
|
|
Net
partner (receivable) payable for leases entered into on behalf of
joint operations
|
|
22
|
14
|
111
|
|
22
|
111
|
|
Net debt including leases
|
|
29,919
|
30,886
|
40,710
|
|
29,919
|
40,710
|
|
Total
equity
|
|
73,333
|
81,563
|
89,266
|
|
73,333
|
89,266
|
|
Gearing including leases*
|
|
29.0%
|
27.5%
|
31.3%
|
|
29.0%
|
31.3%
|
Gulf of Mexico oil spill
|
|
|
30 September
|
31 December
|
|
$ million
|
|
2022
|
2021
|
|
Gulf of Mexico oil spill payables and provisions
|
|
(9,464)
|
(10,433)
|
|
Of
which - current
|
|
(1,204)
|
(1,279)
|
|
|
|
|
|
|
Deferred tax asset
|
|
2,255
|
3,959
|
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
2021 - Financial
statements - Notes 6, 8, 19, 21, 22, 28, and
32.
Working capital* reconciliation
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Movements in
inventories and other current and non-current assets and
liabilities as per condensed group cash flow statement(a)
|
|
6,764
|
(4,416)
|
3,850
|
|
577
|
1,083
|
|
Adjusted for inventory holding gains (losses)* (Note 4 excluding
Rosneft)
|
|
(2,868)
|
2,146
|
465
|
|
2,779
|
2,992
|
|
Adjusted for fair value accounting effects relating to
subsidiaries
|
|
(10,068)
|
(676)
|
(6,101)
|
|
(16,561)
|
(7,219)
|
|
Working capital release (build) after adjusting for net inventory
gains (losses) and fair value accounting effects
|
|
(6,172)
|
(2,946)
|
(1,786)
|
|
(13,205)
|
(3,144)
|
(a)
The movement in working capital includes outflows relating to the
Gulf of Mexico oil spill on a pre-tax basis
of $29 million and $1,285 million in
the third quarter and nine months of 2022 respectively. For the
same periods in 2021 the amount was an outflow
of $36 million and $1,375 million respectively.
Top of page 31
Surplus cash flow* reconciliation
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Sources:
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
8,288
|
10,863
|
5,976
|
|
27,361
|
17,496
|
|
Cash provided from investing activities
|
|
621
|
329
|
346
|
|
1,996
|
4,853
|
|
Other
proceeds(a)
|
|
-
|
409
|
-
|
|
573
|
-
|
|
Receipts relating to transactions involving non-controlling
interests
|
|
3
|
-
|
-
|
|
10
|
671
|
|
Cash inflow
|
|
8,912
|
11,601
|
6,322
|
|
29,940
|
23,020
|
|
|
|
|
|
|
|
|
|
|
Uses:
|
|
|
|
|
|
|
|
|
Lease liability payments
|
|
(478)
|
(472)
|
(506)
|
|
(1,448)
|
(1,580)
|
|
Payments on perpetual hybrid bonds
|
|
(180)
|
(161)
|
(55)
|
|
(489)
|
(438)
|
|
Dividends paid - BP shareholders
|
|
(1,140)
|
(1,062)
|
(1,101)
|
|
(3,270)
|
(3,227)
|
|
-
non-controlling interests
|
|
(66)
|
(63)
|
(87)
|
|
(194)
|
(245)
|
|
Total capital expenditure*
|
|
(3,194)
|
(2,838)
|
(2,903)
|
|
(8,961)
|
(9,215)
|
|
Net repurchase of shares relating to employee share
schemes
|
|
-
|
-
|
-
|
|
(500)
|
(500)
|
|
Payments relating to transactions involving non-controlling
interests
|
|
(2)
|
(1)
|
(560)
|
|
(8)
|
(560)
|
|
Currency translation differences relating to cash and cash
equivalents
|
|
(322)
|
(414)
|
(177)
|
|
(861)
|
(211)
|
|
Cash outflow
|
|
(5,382)
|
(5,011)
|
(5,389)
|
|
(15,731)
|
(15,976)
|
|
|
|
|
|
|
|
|
|
|
Cash used to meet net debt target
|
|
-
|
-
|
-
|
|
-
|
3,729
|
|
|
|
|
|
|
|
|
|
|
Surplus cash flow
|
|
3,530
|
6,590
|
933
|
|
14,209
|
3,315
|
(a)
Other proceeds for the second quarter and nine months 2022 include
$409 million and $573 million respectively of proceeds from the
disposal of a loan note related to the Alaska divestment. The cash
was received in the fourth quarter 2021, 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 have been
recognized as the potential recourse reduces and by end second
quarter 2022 all proceeds were recognized.
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
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
RC profit before interest and tax for customers &
products
|
|
2,586
|
3,531
|
1,060
|
|
8,098
|
2,634
|
|
Less: Adjusting items* gains (charges)
|
|
(139)
|
(475)
|
(98)
|
|
(789)
|
(7)
|
|
Underlying RC profit before interest and tax for customers
& products
|
|
2,725
|
4,006
|
1,158
|
|
8,887
|
2,641
|
|
By business:
|
|
|
|
|
|
|
|
|
customers
- convenience & mobility
|
|
1,137
|
679
|
806
|
|
2,338
|
2,415
|
|
Castrol - included in customers
|
|
151
|
223
|
231
|
|
630
|
830
|
|
products
- refining & trading
|
|
1,588
|
3,327
|
352
|
|
6,549
|
226
|
|
|
|
|
|
|
|
|
|
|
Add back: Depreciation, depletion and amortization
|
|
697
|
715
|
747
|
|
2,129
|
2,246
|
|
By business:
|
|
|
|
|
|
|
|
|
customers
- convenience & mobility
|
|
311
|
315
|
324
|
|
952
|
977
|
|
Castrol - included in customers
|
|
36
|
38
|
36
|
|
113
|
114
|
|
products
- refining & trading
|
|
386
|
400
|
423
|
|
1,177
|
1,269
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA for customers & products
|
|
3,422
|
4,721
|
1,905
|
|
11,016
|
4,887
|
|
By business:
|
|
|
|
|
|
|
|
|
customers
- convenience & mobility
|
|
1,448
|
994
|
1,130
|
|
3,290
|
3,392
|
|
Castrol - included in customers
|
|
187
|
261
|
267
|
|
743
|
944
|
|
products
- refining & trading
|
|
1,974
|
3,727
|
775
|
|
7,726
|
1,495
|
Top of page 32
Realizations* and marker prices
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Average realizations(a)
|
|
|
|
|
|
|
|
|
Liquids* ($/bbl)
|
|
|
|
|
|
|
|
|
US
|
|
82.23
|
89.80
|
59.87
|
|
81.05
|
52.92
|
|
Europe
|
|
94.21
|
113.92
|
74.02
|
|
104.12
|
67.79
|
|
Rest of World
|
|
101.82
|
106.77
|
68.67
|
|
98.93
|
63.51
|
|
BP Average
|
|
92.44
|
100.94
|
65.63
|
|
92.42
|
59.78
|
|
Natural gas ($/mcf)
|
|
|
|
|
|
|
|
|
US
|
|
7.25
|
6.28
|
3.51
|
|
5.88
|
3.33
|
|
Europe
|
|
34.37
|
16.06
|
17.07
|
|
28.15
|
10.96
|
|
Rest of World
|
|
9.85
|
8.42
|
5.26
|
|
8.74
|
4.44
|
|
BP Average
|
|
10.31
|
8.31
|
5.35
|
|
8.99
|
4.48
|
|
Total hydrocarbons* ($/boe)
|
|
|
|
|
|
|
|
|
US
|
|
66.82
|
69.71
|
45.39
|
|
63.19
|
41.24
|
|
Europe
|
|
132.68
|
106.29
|
81.99
|
|
125.03
|
66.51
|
|
Rest of World
|
|
71.19
|
71.65
|
45.13
|
|
68.34
|
40.45
|
|
BP Average
|
|
73.76
|
73.24
|
47.57
|
|
70.56
|
42.37
|
|
Average oil marker prices ($/bbl)
|
|
|
|
|
|
|
|
|
Brent
|
|
100.84
|
113.93
|
73.51
|
|
105.51
|
67.92
|
|
West Texas Intermediate
|
|
91.63
|
108.77
|
70.54
|
|
98.46
|
65.06
|
|
Western Canadian Select
|
|
69.02
|
90.25
|
56.95
|
|
79.72
|
52.06
|
|
Alaska North Slope
|
|
98.84
|
112.17
|
72.66
|
|
102.34
|
67.53
|
|
Mars
|
|
89.54
|
105.27
|
69.09
|
|
96.01
|
64.67
|
|
Urals (NWE - cif)
|
|
71.24
|
77.29
|
70.63
|
|
78.58
|
65.60
|
|
Average natural gas marker prices
|
|
|
|
|
|
|
|
|
Henry
Hub gas price(b) ($/mmBtu)
|
|
8.20
|
7.17
|
4.02
|
|
6.78
|
3.19
|
|
UK Gas - National Balancing Point (p/therm)
|
|
281.01
|
130.11
|
118.81
|
|
216.37
|
78.38
|
(a)
Based on sales of consolidated subsidiaries only - this excludes equity-accounted
entities.
(b)
Henry Hub First of Month Index.
Exchange rates
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
$/£ average rate for the period
|
|
1.18
|
1.26
|
1.38
|
|
1.25
|
1.39
|
|
$/£ period-end rate
|
|
1.12
|
1.21
|
1.34
|
|
1.12
|
1.34
|
|
|
|
|
|
|
|
|
|
|
$/€ average rate for the period
|
|
1.01
|
1.06
|
1.18
|
|
1.06
|
1.20
|
|
$/€ period-end rate
|
|
0.98
|
1.05
|
1.16
|
|
0.98
|
1.16
|
|
|
|
|
|
|
|
|
|
|
$/AUD average rate for the period
|
|
0.68
|
0.71
|
0.73
|
|
0.71
|
0.76
|
|
$/AUD period-end rate
|
|
0.65
|
0.69
|
0.72
|
|
0.65
|
0.72
|
|
|
|
|
|
|
|
|
|
|
Rouble/$ average rate for the period
|
|
60.24
|
67.50
|
73.52
|
|
71.89
|
74.04
|
|
Rouble/$ period-end rate
|
|
58.40
|
54.68
|
72.78
|
|
58.40
|
72.78
|
Top of page 33
Legal proceedings
For a full discussion of the group's material legal proceedings,
see pages 248-249 of bp Annual Report and Form 20-F
2021.
Glossary
Non-GAAP 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-GAAP measures are sometimes referred to as
alternative performance measures.
Adjusted EBITDA is a non-GAAP measure presented
for bp's operating segments and is defined as replacement cost (RC)
profit before interest and tax, excluding net adjusting items*,
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.
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-GAAP measures.
An analysis of adjusting items by segment and type is shown
on page 29.
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 and customers & products
businesses is presented on the same basis.
Cash balance point is defined as the implied
Brent oil price, on average over 2021-25, 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 2020 real
terms.
Consolidation adjustment - UPII is unrealized profit in inventory
arising on inter-segment transactions.
Developed renewables to final investment decision
(FID) - Total generating capacity for
assets developed to FID by all entities where bp has an equity
share (proportionate to equity share). 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-GAAP 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-GAAP 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.
Top of page 34
Glossary (continued)
Fair value accounting effects are non-GAAP 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. 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. The
fair values of derivative instruments used to risk manage certain
oil, gas, power and other contracts, are deferred to match with the
underlying exposure and the commodity contracts for business
requirements are accounted for on an accruals basis. 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.
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 contracts that are being risk managed (which is reflected in
the underlying result, but not in reported earnings). This gives a
better representation of performance in each period.
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 application of hedge accounting. The derivative
instruments relating to the hybrid bonds, however, are required to
be recorded at fair value with mark to market gains and losses
recognized in the income statement. Therefore, measurement
differences in relation to the recognition of gains and losses
occur. The fair value accounting effect, which is reported in the
other businesses & corporate segment, eliminates the fair value
gains and losses of these derivative financial instruments that are
recognized in the income statement. We believe that this gives
a better representation of performance, by more appropriately
reflecting the economic effect of these risk management activities,
in each period.
Top of page 35
Glossary (continued)
Gearing and net debt are non-GAAP 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 GAAP measures on an
IFRS basis are finance debt and finance debt ratio. A
reconciliation of finance debt to net debt is provided on page
27.
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 GAAP 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 a GAAP
estimate.
Gearing including leases and net debt including
leases are non-GAAP 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
GAAP 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 30.
Green hydrogen - Hydrogen made from solar, wind
and hydro-electricity.
Hydrocarbons - Liquids and natural gas.
Natural gas is converted to oil equivalent at 5.8 billion cubic
feet = 1 million barrels.
Inorganic capital expenditure is a subset of capital
expenditure on a cash basis and a non-GAAP 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 GAAP
information is provided on page 28.
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-GAAP 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.
Liquids -
Liquids comprises crude oil, condensate and natural gas liquids.
For the oil production & operations segment, it also includes
bitumen.
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.
Top of page 36
Glossary (continued)
Organic capital expenditure is a non-GAAP 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 GAAP
information is provided on page 28.
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 GAAP 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 PPA 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 GAAP 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 GAAP 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.
Retail sites in growth markets are retail sites that are either
bp branded or co-branded with our partners in China, Mexico and
Indonesia and also include sites in India through our Jio-bp
JV.
Solomon availability - See Refining availability
definition.
Strategic convenience sites are retail sites, within the bp
portfolio, which sell bp-branded vehicle energy
(e.g. bp, Aral,
ARCO, Amoco, Thorntons and
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, but excludes sites in growth
markets.
Top of page 37
Glossary (continued)
Surplus cash flow does not represent the residual
cash flow available for discretionary expenditures. It is a
non-GAAP 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.
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 31 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.
Underlying effective tax rate (ETR) is a non-GAAP 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-GAAP 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 GAAP 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 a GAAP estimate.
Underlying production - 2022 underlying production,
when compared with 2021, 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-GAAP measure and is RC
profit or loss* (as defined on page 36) after excluding net
adjusting items and related taxation. See page 29 for
additional information on the adjusting items that are used to
arrive at underlying RC profit or loss in order to enable a full
understanding of the items and their financial
impact.
Underlying RC profit or loss before interest and
tax for the operating segments or
customers & products businesses is calculated as RC profit or
loss (as defined above) including profit or loss attributable to
non-controlling interests before interest and tax for the operating
segments and excluding net adjusting items for the respective
operating segment or business.
bp believes that underlying RC profit or loss is a useful measure
for investors because it is a measure closely tracked by management
to evaluate bp's operating performance and to make financial,
strategic and operating decisions and because it may help investors
to understand and evaluate, in the same manner as management, the
underlying trends in bp's operational performance on a comparable
basis, period on period, by adjusting for the effects of these
adjusting items. The nearest equivalent measure on an IFRS basis
for the group is profit or loss attributable to bp shareholders.
The nearest equivalent measure on an IFRS basis for segments and
businesses is RC profit or loss before interest and
taxation. A reconciliation to GAAP
information is provided on page 1 for the group
and pages 6-15 for the segments.
Top of page 38
Glossary (continued)
Underlying RC profit or loss per share / underlying RC profit or
loss per ADS is a non-GAAP 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 and fair value accounting effects relating to
subsidiaries is a non-GAAP measure. It is calculated by adjusting
for inventory holding gains/losses reported in the period and from
the second quarter 2021 onwards, it is also adjusted for fair value
accounting effects relating to subsidiaries reported within
adjusting items for the period. 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. In the context of describing working capital after
adjusting for Gulf of Mexico oil spill outflows, change in working
capital also excludes movements in inventories and other current
and non-current assets and liabilities relating to the Gulf of
Mexico oil spill.
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, Castrol
ON and Thorntons
Top of page 39
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: expectations regarding the conflict in
Ukraine, related sanctions on Russia and inflationary pressures,
including the impacts and consequences on demand and supply; plans,
expectations and assumptions regarding oil and gas demand, supply,
prices or volatility and storage levels; expectations regarding
upstream production and bp's customers & products business;
expectations regarding future working capital; expectations
regarding major projects; expectations regarding refining margins;
expectations regarding bp's business, financial performance,
results of operations and cash flows; expectations regarding future
project start-ups; expectations with regards to bp's transformation
to an IEC; expectations regarding price assumptions used in
accounting estimates; bp's plans and expectations regarding the
amount and timing of share buybacks and quarterly and interim
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 regarding bp's exit of its
shareholding in Rosneft and other investments in Russia; plans and
expectations with respect to the total depreciation, depletion and
amortization and other businesses & corporate underlying annual
charge for 2022; plans and expectations regarding investments,
collaborations and partnerships in charging infrastructure,
including in North America, the UK, Germany and China; plans and
expectations regarding the divestment programme, including the
amount and timing of proceeds; plans and expectations regarding
bp's renewable energy business; expectations regarding the
underlying effective tax rate for 2022; expectations regarding the
timing and amount of future payments relating to the Gulf of Mexico
oil spill; expectations regarding bp's defined benefit pension
plans; plans and expectations regarding capital expenditure,
including that capital expenditure will be around $15.5 billion in
2022; plans and expectations regarding projects, joint ventures and
other partnerships and agreements, including partnerships and other
collaborations with Hertz, REWE, Renault Group and Avatr Technology
Co. Ltd. as well as plans and expectations regarding the
acquisition of Archaea Energy, the sale of its interest in the
bp-Husky Toledo refinery to Cenovus Energy Inc. and related
operational impacts, the sale of bp's upstream business in Algeria
to Eni, the Cypre subsea gas development in Trinidad and Tobago and
its relation to bp's Juniper platform, the purchase of EDF Energy
Services, the Asian Renewable Energy Hub in Western Australia, the
development of EV charge points, the HyGreen Teesside green
hydrogen project and the Mad Dog Phase 2 project in the Gulf of
Mexico.
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 governmental
authorities or any other relevant persons may impact Rosneft's
business or outlook, bp's ability to sell its interests in Rosneft,
or the price for which bp could sell such interests; the
possibility that actions of any competent authorities or any other
relevant persons may 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 other factors discussed elsewhere in this report, as
well as those factors discussed under "Risk factors" in bp's Annual
Report and Form 20-F 2021 as filed with the US Securities and
Exchange Commission.
Top of page 40
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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: 01
November 2022
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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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