BPAQF 6-K
Bp PLC (BP)
6-K
2026-02-10
For: 2026-02-10
View Original
Added on
April 08, 2026
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
10
February, 2026
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
|X|
---------------
--------------
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Exhibit
1.1
|
4Q25
SEA Part 1 of 1 dated 10 February 2026
|
Exhibit 1.1
Top
of page 1
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FOR IMMEDIATE RELEASE
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London 10 February 2026
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 |
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BP p.l.c. Group results
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Fourth quarter and full year 2025
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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”
2025: Strong performance - building for the future
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Financial summary
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Fourth
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Third
|
Fourth
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
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$ million
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
Profit (loss) for the period attributable to bp
shareholders
|
|
(3,422)
|
1,161
|
(1,959)
|
|
55
|
381
|
|
Inventory holding (gains) losses*, net of tax
|
|
666
|
62
|
7
|
|
1,017
|
369
|
|
Replacement cost (RC) profit (loss)*
|
|
(2,756)
|
1,223
|
(1,952)
|
|
1,072
|
750
|
|
Net (favourable) adverse impact of adjusting items*, net of
tax
|
|
4,297
|
987
|
3,121
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|
6,413
|
8,165
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|
Underlying RC profit*
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|
1,541
|
2,210
|
1,169
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|
7,485
|
8,915
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Operating cash flow*
|
|
7,602
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7,786
|
7,427
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24,493
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27,297
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|
Capital expenditure*
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|
(4,168)
|
(3,381)
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(3,726)
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(14,533)
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(16,237)
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Divestment and other proceeds(a)
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3,602
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28
|
2,761
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|
5,314
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4,224
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Net issue (repurchase) of shares
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|
(826)
|
(750)
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(1,625)
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|
(4,486)
|
(7,127)
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Net debt*(b)
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|
22,182
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26,054
|
22,997
|
|
22,182
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22,997
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|
Return on average capital employed (ROACE)* (%)
|
|
|
|
|
|
13.9%
|
14.2%
|
|
Adjusted
EBITDA*
|
|
8,961
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9,981
|
8,413
|
|
37,615
|
38,012
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|
Underlying
operating expenditure*
|
|
5,639
|
5,487
|
5,784
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|
21,887
|
22,326
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|
Announced dividend per ordinary share (cents per
share)
|
|
8.320
|
8.320
|
8.000
|
|
32.960
|
31.270
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|
Underlying RC profit per ordinary share* (cents)
|
|
10.00
|
14.24
|
7.36
|
|
48.02
|
54.40
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|
Underlying RC profit per ADS* (dollars)
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|
0.60
|
0.85
|
0.44
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|
2.88
|
3.26
|
Fourth quarter and full year highlights
●
Strong
underlying financial performance: 2025 underlying RC profit $7.5bn delivered against
a weaker oil price environment. Operating cash flow $24.5bn,
including $2.9bn adjusted working capital* build(c).
●
Strong
operations and progress across upstream* and downstream*:
Record full year upstream plant
reliability* 96.1%; 2025 underlying production* held broadly flat
vs. 2024; 7 major projects* started up in 2025; reserves
replacement ratio* increased to 90%; record full year refining
availability* 96.3%; customers delivered its highest underlying
earnings since 2019 with all businesses growing year on
year.
●
Progress
on our strategic targets: Expected proceeds from completed and announced
divestments now above $11bn; reached an agreement to sell a 65%
shareholding in Castrol - resulting in expected net proceeds of
approximately $6bn; closed the sale of Netherlands retail, US
onshore wind, and non-controlling interests in US midstream assets;
increased group structural cost reduction* target to $5.5-6.5
billion by end 2027.
●
Positioning
the company for the long term: The board has decided to suspend the share buyback
and fully allocate excess cash* to accelerate strengthening of our
balance sheet. This creates a strong platform to invest with
discipline into our distinctive deep hopper of oil & gas
opportunities.
|
" 2025 was a year of strong underlying financial results, strong
operational performance, and meaningful strategic progress. We have
made progress against our four primary targets - growing cash flow
and returns, reducing costs, and strengthening the balance sheet -
but know there is more work to be done, and we are clear on the
urgency to deliver.With a continued emphasis on capital discipline
and returns, we are reducing capital expenditure for 2026 to the
lower end of the guidance range, while continuing to drive down our
cost base. We are also taking decisive action to high-grade our
portfolio and strengthen our company, including the execution of
our $20bn disposal programme and the decision to suspend the share
buyback and fully allocate excess cash to our balance sheet. These
decisions position us to progress long term value growth through
the distinctive opportunity set we are creating in our upstream
business, including the Bumerangue discovery in Brazil, where our
initial estimates indicate around 8 billion barrels of liquids in
place.We look forward to Meg O'Neill joining as CEO in April as we
accelerate our progress to build a simpler, stronger and more
valuable bp for the future. We are in action and we can and will do
better for our shareholders. "
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Carol Howle
Interim chief executive officer
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(a)
Divestment proceeds are disposal proceeds as per
the condensed group cash flow statement. See page
1 for more information on other
proceeds.
(b)
See
Note 9 for more information.
(c)
Change in working capital adjusted for inventory
holding losses, fair value accounting effects relating to
subsidiaries and other adjusting items. See page 1.
RC profit (loss), underlying RC profit, net debt, ROACE, adjusted
EBITDA, underlying operating expenditure, underlying RC profit per
ordinary share, underlying RC profit per ADS, adjusted working
capital, customers underlying earnings (underlying RC profit before
interest and tax) and excess cash are non-IFRS measures. Inventory
holding (gains) losses and adjusting items are non-IFRS
adjustments.
* For items marked with an asterisk
throughout this document, definitions are provided in the Glossary
on page 1.
Top of
page 2
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Highlights
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4Q25 underlying replacement cost (RC) profit* $1.5 billion
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●
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Underlying
RC profit for the quarter of $1.5 billion, compared with $2.2
billion for the previous quarter. Compared with the third quarter
2025, the underlying result reflects lower upstream realizations,
adverse impact of upstream production mix, lower refinery
throughputs due to higher turnaround activity and the temporary
impact of reduced capacity following an outage at the Whiting
refinery and seasonally lower customer volumes, partly offset by
lower exploration write-offs. The underlying effective tax rate
(ETR)* in the quarter was 43%, compared with 39% for the previous
quarter, which reflects changes in the geographical mix of
profits.
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|
|
●
|
Reported loss for the quarter was
$3.4 billion, compared with a profit of $1.2 billion for the
third quarter 2025. The reported result for the fourth quarter is
adjusted for inventory holding loss* of $0.7 billion (net of tax)
and a net adverse impact of adjusting items* of $4.3 billion (net
of tax) to derive the underlying RC profit. Adjusting items include
post-tax net impairments and impairments in equity-accounted
entities of around $4 billion, primarily related to our transition
businesses in the gas & low carbon energy segment (see Note 3
and page 1 for more information on adjusting
items).
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Segment results
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●
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Gas
& low carbon energy: The RC loss before interest and tax for
the fourth quarter 2025 was $2.2 billion, compared with a
profit of $1.1 billion for the previous quarter. After
adjusting RC loss before interest and tax for a net adverse impact
of adjusting items of $3.6 billion as discussed above, the
underlying RC profit before interest and tax* for the fourth
quarter was $1.4 billion, compared with $1.5 billion in
the third quarter 2025. The fourth quarter underlying result before
interest and tax reflects lower realizations. The gas marketing and
trading result was average.
|
|
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●
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Oil
production & operations: The RC profit before interest and tax
for the fourth quarter 2025 was $1.7 billion, compared with $2.1
billion for the previous quarter. After adjusting RC profit before
interest and tax for a net adverse impact of adjusting items of
$0.2 billion, the underlying RC profit before interest and tax for
the fourth quarter was $2.0 billion, compared with
$2.3 billion in the third quarter 2025. The fourth quarter
underlying result before interest and tax reflects lower
realizations, the impact of production mix, and a lower share of
net income of equity-accounted entities, partly offset by lower
exploration write-offs.
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●
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Customers
& products: The RC profit before interest and tax for the
fourth quarter 2025 was $1.4 billion, compared with $1.6 billion
for the previous quarter. After adjusting RC profit before interest
and tax for a net favourable impact of adjusting items of $0.1
billion, the underlying RC profit before interest and tax
(underlying result) for the fourth quarter was $1.3 billion,
compared with $1.7 billion in the third quarter 2025. The customers
fourth quarter underlying result was lower by $0.3 billion,
reflecting seasonally lower volumes and a weaker midstream
performance. Fuels margins were broadly flat compared with the
third quarter. The products fourth quarter underlying result was
lower by $0.1 billion. Stronger realized refining margins were
offset by the impacts of lower throughputs as a result of higher
turnaround activity and the temporary impact of reduced capacity
following an outage at the Whiting refinery. The oil trading
contribution was weak.
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Operating cash flow* $7.6 billion and net debt* $22.2
billion
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●
|
Operating
cash flow for the quarter of $7.6 billion includes a $0.9 billion
working capital* release (after adjusting inventory holding losses,
fair value accounting effects and other adjusting items) and was
around $0.2 billion lower than the previous quarter reflecting
lower underlying earnings partly offset by lower cash taxes paid.
Net debt reduced to $22.2 billion in the fourth quarter primarily
driven by the impact of proceeds from divestments of around $3.6
billion partly offset by the $0.6 billion deferred payment for the
bp Bunge Bioenergia acquisition.
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Our financial frame - accelerating the pace of strengthening the
balance sheet
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||
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●
|
Our first capital allocation priority is a
resilient dividend, which is expected to increase by at least 4%
per ordinary share a year(a). For the fourth quarter, bp has announced a
dividend per ordinary share of 8.320 cents.
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|
●
|
We
are committed to strengthening the balance sheet and continue to
target improving our credit metrics within an 'A' grade credit
range. We reiterate our primary target of $14 to 18 billion of net
debt by end 2027. When considering our capital structure, we also
look at other obligations including hybrid bonds, leases and our
Gulf of America settlement liabilities. The board has decided to
suspend share buybacks, allocate excess cash* to strengthen the
balance sheet and accordingly, the guidance for shareholder
distributions to be around 30-40% of operating cash flow is now
retired.
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●
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Reflecting
our continued emphasis on capital efficiency, discipline and
returns, we have set our 2026 capital expenditure* budget in the
range of $13-13.5 billion. We believe this level of capital
expenditure supports progressively growing earnings per ordinary
share in the long term.
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(a)
Shareholder
distribution decisions, including dividends and share buybacks, are
subject to board discretion, taking into account factors including,
but not limited to, current forecasts and credit
metrics.
|
The commentary above
contains forward-looking statements and should be read in
conjunction with the cautionary statement on page 1.
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Top of
page 3
Financial results
In addition to the highlights on page 2:
●
Profit or loss attributable to bp shareholders in
the fourth quarter and full year was
a loss of $3.4 billion and a profit of $0.1 billion
respectively, compared with a loss of $2.0 billion and a
profit of $0.4 billion in the same periods of
2024.
-
After adjusting loss or profit attributable to bp
shareholders for inventory holding losses* and net impact of
adjusting items*, underlying replacement cost (RC) profit* for the
fourth quarter and full year was $1.5 billion and
$7.5 billion respectively, compared with $1.2 billion and
$8.9 billion for the same periods of 2024. The underlying RC
profit for the fourth quarter compared with the same period in 2024
mainly reflects strong performance in customers & products,
partly offset by lower liquids realizations. The gas marketing and
trading result was average. The underlying RC profit for the full
year compared with the same period in 2024 mainly reflects lower
liquids realizations, the divestments in Egypt and Trinidad in the
fourth quarter of 2024 and a lower gas marketing and trading
result, partly offset by stronger performance in customers &
products. The oil trading contribution for the fourth quarter and
full year was broadly flat compared with the same periods in 2024.
See pages 1,
1
and 1 for more information.
-
Adjusting
items in the fourth quarter and full year had a net adverse pre-tax
impact of $3.9 billion and $5.9 billion respectively,
compared with a net adverse pre-tax impact of $3.4 billion and
$9.3 billion in the same periods of 2024.
-
Adjusting
items for the fourth quarter and full year include a favourable
pre-tax impact of fair value accounting effects*, relative to
management's internal measure of performance, of $0.5 billion and
$2.2 billion respectively, compared with an adverse pre-tax impact
of $1.0 billion and $1.9 billion in the same periods of
2024. This is primarily due to a relative decline in LNG forward
prices over the period in addition to the realization of profitable
cargoes, partly offset by gains from portfolio optimization, volume
updates and new deals. In addition there is no significant impact
of the fair value accounting effects relating to the hybrid bonds
in the fourth quarter 2025 compared with an adverse impact in the
fourth quarter 2024 and a significant favourable impact of these in
the full year 2025 compared with an adverse impact in
2024.
-
Adjusting items for the fourth quarter and full
year of 2025 include an adverse pre-tax impact of asset impairments
of $3.5 billion and $5.4 billion respectively, compared with an
adverse pre-tax impact of $1.5 billion and $5.1
billion in
the same periods of 2024 (see Note 3). Fourth quarter and full year
2025 include $1.1 billion of impairment charges recognized through
equity-accounted earnings primarily relating to the Archaea and
offshore wind businesses. Fourth quarter and full year 2024
included $0.4 billion of impairment charges recognized through
equity-accounted earnings primarily relating to our interest in Pan
American Energy Group.
●
The
effective tax rate (ETR) on the profit or loss before taxation for
the fourth quarter and full year was -108% and 83% respectively,
compared with -222% and 82% for the same periods in 2024. Excluding
inventory holding gains or losses and adjusting items, the
underlying ETR* for the fourth quarter and full year was 43% and
42%, compared with 49% and 41% for the same periods in 2024. The
lower underlying ETR for the fourth quarter reflects changes in the
geographical mix of profits. Underlying ETR is a non-IFRS
measure.
●
Operating
cash flow* for the fourth quarter and full year was
$7.6 billion and $24.5 billion respectively, compared
with $7.4 billion and $27.3 billion for the same periods
in 2024. The change in the full year operating cash flows reflects
the working capital build (after adjusting inventory holding
losses, fair value accounting effects and other adjusting items) in
2025 compared to a release in 2024.
●
Capital expenditure* in the fourth quarter and
full year was $4.2 billion and $14.5 billion
respectively, compared with $3.7 billion and
$16.2 billion in
the same periods of 2024 reflecting the phasing of spend within the
lower capital frame for 2025.
●
Total
divestment and other proceeds for the fourth quarter and full year
were $3.6 billion and $5.3 billion respectively, compared
with $2.8 billion and $4.2 billion for the same periods
in 2024. Other proceeds for the fourth quarter were $1.5 billion
from the sale of non-controlling interests in the Permian and Eagle
Ford midstream assets. In addition, there was $1.0 billion from the
sale of a non-controlling interest in the subsidiary that holds our
12% share in the Trans-Anatolian natural gas pipeline (TANAP) for
the full year 2025. Other proceeds for the full year 2024 were $0.8
billion of proceeds from the sale of our 20% share in Trans
Adriatic Pipeline AG (TAP) and $0.5 billion from the sale of a 49%
interest in a controlled affiliate holding certain midstream assets
offshore US.
●
At
the end of the fourth quarter, net debt* was $22.2 billion,
compared with $26.1 billion at the end of the third quarter
2025 and $23.0 billion at the end of the fourth quarter
2024.
Top of
page 4
Analysis of RC profit (loss) before interest and tax and
reconciliation to profit (loss) for the period
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
RC profit (loss) before interest and tax
|
|
|
|
|
|
|
|
|
gas & low carbon energy(a)
|
|
(2,172)
|
1,097
|
1,324
|
|
1,330
|
3,052
|
|
oil
production & operations
|
|
1,735
|
2,119
|
2,571
|
|
8,558
|
10,789
|
|
customers & products(a)
|
|
1,415
|
1,610
|
(1,921)
|
|
4,100
|
(1,043)
|
|
other
businesses & corporate
|
|
(386)
|
(277)
|
(1,161)
|
|
(40)
|
(988)
|
|
Consolidation
adjustment – UPII*
|
|
21
|
(19)
|
(49)
|
|
45
|
(25)
|
|
RC profit before interest and tax
|
|
613
|
4,530
|
764
|
|
13,993
|
11,785
|
|
Finance
costs and net finance expense relating to pensions and other
post-employment benefits
|
|
(1,242)
|
(1,212)
|
(1,246)
|
|
(4,896)
|
(4,515)
|
|
Taxation on a RC basis
|
|
(1,830)
|
(1,747)
|
(1,131)
|
|
(6,785)
|
(5,672)
|
|
Non-controlling interests
|
|
(297)
|
(348)
|
(339)
|
|
(1,240)
|
(848)
|
|
RC profit (loss) attributable to bp shareholders*
|
|
(2,756)
|
1,223
|
(1,952)
|
|
1,072
|
750
|
|
Inventory holding gains (losses)*
|
|
(874)
|
(82)
|
(21)
|
|
(1,351)
|
(488)
|
|
Taxation (charge) credit on inventory holding gains and
losses
|
|
208
|
20
|
14
|
|
334
|
119
|
|
Profit (loss) for the period attributable to bp
shareholders
|
|
(3,422)
|
1,161
|
(1,959)
|
|
55
|
381
|
(a)
Comparative
periods in 2024 have been restated for material items to reflect
the move of our Archaea business from the customers & products
segment to the gas & low carbon energy segment.
Analysis of underlying RC profit (loss) before interest and
tax
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
Underlying RC profit (loss) before interest and tax
|
|
|
|
|
|
|
|
|
gas
& low carbon energy
|
|
1,389
|
1,519
|
1,987
|
|
5,367
|
6,803
|
|
oil
production & operations
|
|
1,958
|
2,299
|
2,924
|
|
9,414
|
11,937
|
|
customers
& products
|
|
1,346
|
1,716
|
(302)
|
|
5,272
|
2,517
|
|
other
businesses & corporate
|
|
(304)
|
(189)
|
(527)
|
|
(648)
|
(608)
|
|
Consolidation
adjustment – UPII
|
|
21
|
(19)
|
(49)
|
|
45
|
(25)
|
|
Underlying RC profit before interest and tax
|
|
4,410
|
5,326
|
4,033
|
|
19,450
|
20,624
|
|
Finance costs on an underlying RC
basis(a)
and net finance expense relating to
pensions and other post-employment benefits
|
|
(1,162)
|
(1,129)
|
(1,096)
|
|
(4,468)
|
(4,010)
|
|
Taxation on an underlying RC basis
|
|
(1,410)
|
(1,639)
|
(1,429)
|
|
(6,257)
|
(6,851)
|
|
Non-controlling interests
|
|
(297)
|
(348)
|
(339)
|
|
(1,240)
|
(848)
|
|
Underlying RC profit attributable to bp shareholders*
|
|
1,541
|
2,210
|
1,169
|
|
7,485
|
8,915
|
(a)
A non-IFRS measure. Finance costs on an underlying
RC basis is defined as finance costs as stated in the group income
statement excluding finance costs classified as adjusting items*
(see footnote (h) on page 1).
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 1-1 for the
segments.
Operating Metrics
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
Tier 1 and tier 2 process safety events*
|
|
4
|
8
|
6
|
|
27
|
38
|
|
upstream*
production(a)
(mboe/d)
|
|
2,344
|
2,362
|
2,299
|
|
2,312
|
2,358
|
|
upstream unit production
costs*(b)
($/boe)
|
|
5.82
|
6.19
|
5.93
|
|
6.28
|
6.17
|
|
bp-operated upstream plant reliability*
|
|
95.4%
|
96.8%
|
94.7%
|
|
96.1%
|
95.2%
|
|
bp-operated refining
availability*(a)
|
|
96.0%
|
96.6%
|
94.8%
|
|
96.3%
|
94.3%
|
(b)
The
increase in the full year 2025, compared with the full year 2024
mainly reflects portfolio mix.
Reserves replacement ratio*
The organic reserves replacement ratio on a combined basis of
subsidiaries and equity-accounted entities was 90% for the year
(2024 50%), resulting largely from additions in the US, Trinidad
and the Middle East and includes impact from price.
Top of
page 5
Outlook & Guidance
1Q 2026 guidance
●
Looking
ahead, bp expects first quarter 2026 reported upstream* production
to be broadly flat compared with the fourth quarter
2025.
●
In
its customers business, bp expects seasonally lower volumes
compared to the fourth quarter.
●
In
products, bp expects, compared to the fourth quarter, lower
industry refining margins, partly offset by a lower level of
refinery turnaround activity.
●
bp
expects capital expenditure* to be broadly flat compared with the
fourth quarter 2025.
2026 guidance
In
addition to the guidance on page 2:
●
bp
expects reported upstream* production to be slightly lower and
underlying upstream production* to be broadly flat compared with
2025. Within this, bp expects underlying production from oil
production & operations to be broadly flat and production from
gas & low carbon energy to be lower.
●
In
its customers business, bp expects to make continued progress
growing cash flows, supported by lower underlying operating
expenditure* driven by structural cost reductions*. These benefits
will be partly offset by the earnings impact of completed and
announced divestments. Reported earnings will benefit from lower
depreciation as a result of the assets held for sale accounting
treatment of Castrol following the planned divestment. Fuel margins
are expected to remain sensitive to movements in the cost of
supply.
●
In
products, bp expects significantly lower level of turnaround
activity.
●
bp
expects other businesses & corporate underlying annual charge
to be around $1.0 billion for 2026. The charge may vary quarter to
quarter.
●
bp
expects the depreciation, depletion and amortization to be broadly
flat compared with 2025.
●
bp
expects the underlying ETR* for 2026 to be around 40% but it is
sensitive to a range of factors, including the volatility of the
price environment and its impact on the geographical mix of the
group’s profits and losses.
●
bp
expects capital expenditure to be $13-13.5 billion, weighted to the
first half.
●
bp
expects divestment and other proceeds to be $9-10 billion in 2026,
including approximately $6 billion from the announced Castrol
transaction, all significantly weighted to the second
half.
●
bp
expects Gulf of America settlement payments for the year to be
around $1.6 billion pre-tax including $0.4 billion pre-tax to be
paid during the first quarter and $1.1 billion pre-tax to be paid
during the second quarter.
Other items
●
Structural
cost reduction target increased to $5.5-6.5 billion by end 2027,
reflecting the outcome of the strategic review to divest Castrol.
This excludes any savings from the intended sale of the
Gelsenkirchen refinery.
|
The commentary above
contains forward-looking statements and should be read in
conjunction with the cautionary statement on page 1.
|
gas & low carbon energy*
Financial results
●
The replacement cost (RC) profit or loss before
interest and tax for the fourth quarter and full year was a loss of
$2,172 million and a profit of $1,330 million respectively,
compared with a profit of $1,324 million and $3,052 million for the
same periods in 2024. The fourth quarter and full year are adjusted
by an adverse impact of net adjusting items* of $3,561 million and
$4,037 million respectively, compared with an adverse impact of net
adjusting items of $663 million and $3,751
million for
the same periods in 2024. Adjusting items include a net impairment
charge of $3,157 million for the fourth quarter, primarily relating
to Lightsource bp and Archaea, and a $1,007 million impairment
charge recognized through equity-accounted earnings, primarily
relating to the Archaea and offshore wind businesses. Adjusting
items also include the impacts of fair value accounting effects*,
relative to management's internal measure of performance, which are
a favourable impact of $453 million and $1,270 million for the
fourth quarter and full year in 2025 and an adverse impact of $377
million and $1,550 million for the same periods in 2024. See
page 1 for more
information on adjusting items.
●
After
adjusting RC loss or profit before interest and tax for adjusting
items, the underlying RC profit before interest and tax* for the
fourth quarter and full year was $1,389 million and $5,367 million
respectively, compared with $1,987 million and $6,803 million for
the same periods in 2024.
●
The
underlying RC profit before interest and tax for the fourth
quarter, compared with the same period in 2024, mainly reflects
lower realizations. The gas marketing and trading result was
average.
●
The
underlying RC profit for the full year, compared with the same
period in 2024, reflects the divestments in Egypt and Trinidad in
the fourth quarter of 2024, a lower gas marketing and trading
result, and a higher depreciation, depletion and amortization
charge, partly offset by lower exploration write-offs and the
absence of the foreign exchange loss in Egypt in the first quarter
of 2024.
Operational update
●
Reported
production for the quarter was 788mboe/d, 7.3% lower than the same
period in 2024, reflecting the divestments in Egypt and Trinidad in
the fourth quarter of 2024. Underlying production* was 0.9% higher
due to major project* ramp-ups partly offset by base
decline.
●
Reported
production for the full year was 785mboe/d, 11.6% lower than the
same period in 2024, reflecting the divestments in Egypt and
Trinidad in the fourth quarter of 2024. Underlying production was
2.1% lower, mainly due to base decline partly offset by major
project start-ups.
Strategic progress gas
●
In
November bp announced that it had safely completed the Cypre
seven-well drilling programme in Trinidad, the second phase of the
Cypre project, following delivery of first gas in April
2025.
●
In
November, the Greater Western Flank 4 project in the North West
Shelf, offshore Australia (bp 16.67%, operator Woodside) reached
final investment decision. The project involves five subsea tieback
wells with start-up targeted for 2028.
●
In
December Osaka Gas Trading and Export and Archaea Energy, a bp
company, entered into an agreement for the procurement of
approximately 26,000Nm³ of biomethane derived from landfill
gas, produced at Archaea Energy’s facilities operating in the
US.
●
In
January 2026 bp was awarded two offshore exploration concessions in
Egypt: North-East El Alamein Offshore and West El Hammad Offshore,
advancing our exploration portfolio and long-term growth ambitions.
The North-East El Alamein Offshore Concession (bp 100% equity)
covers 3,336km² near bp's West Nile Delta assets. The West El
Hammad Offshore Concession (Eni 75% operator, bp 25%) covers
1,894km² in the East Nile Delta, also near existing
infrastructure.
low carbon energy
●
In
December bp completed its sale of its bp Wind Energy onshore wind
business to LS Power. The transaction included 10 operating assets
across seven US states.
●
In
January 2026 JERA Nex bp (bp 50%) acquired EnBW's stake in the Mona
UK offshore wind project, following their decision to exit after
the result of the UK Auction Round 7. JERA Nex bp and EnBW also
terminated the Morgan project following the Auction Round
outcome.
Top of
page 7
gas
& low carbon energy (continued)
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
|
$ million
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
Profit before interest and tax(a)
|
|
(2,172)
|
1,097
|
1,324
|
|
1,330
|
3,052
|
|
Inventory holding (gains) losses*
|
|
—
|
—
|
—
|
|
—
|
—
|
|
RC profit before interest and tax(a)
|
|
(2,172)
|
1,097
|
1,324
|
|
1,330
|
3,052
|
|
Net (favourable) adverse impact of adjusting
items(a)
|
|
3,561
|
422
|
663
|
|
4,037
|
3,751
|
|
Underlying RC profit before interest and tax
|
|
1,389
|
1,519
|
1,987
|
|
5,367
|
6,803
|
|
Taxation on an underlying RC basis
|
|
(463)
|
(529)
|
(705)
|
|
(1,972)
|
(2,137)
|
|
Underlying RC profit before interest
|
|
926
|
990
|
1,282
|
|
3,395
|
4,666
|
(a)
Comparative
periods in 2024 have been restated for material items to reflect
the move of our Archaea business from the customers & products
segment to the gas & low carbon energy segment.
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
|
$ million
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|
Total depreciation, depletion and amortization
|
|
1,173
|
1,223
|
1,153
|
|
4,969
|
4,835
|
|
|
|
|
|
|
|
|
|
|
Exploration write-offs
|
|
|
|
|
|
|
|
|
Exploration write-offs
|
|
—
|
29
|
(10)
|
|
30
|
222
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA*
|
|
|
|
|
|
|
|
|
Total adjusted EBITDA
|
|
2,562
|
2,771
|
3,130
|
|
10,366
|
11,860
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure*
|
|
|
|
|
|
|
|
|
gas(b)
|
|
757
|
727
|
1,228
|
|
2,946
|
4,246
|
|
low carbon energy(c)
|
|
132
|
101
|
(107)
|
|
464
|
1,596
|
|
Total capital expenditure(b)
|
|
889
|
828
|
1,121
|
|
3,410
|
5,842
|
(b)
Comparative
periods in 2024 have been restated to reflect the move of our
Archaea business from the customers & products segment to the
gas & low carbon energy segment.
(c)
Fourth
quarter and full year 2024 include cash acquired net of acquisition
payments on completion of the Lightsource bp
acquisition.
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
|
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
Production (net of
royalties)(d)
|
|
|
|
|
|
|
|
|
Liquids* (mb/d)
|
|
86
|
87
|
91
|
|
85
|
96
|
|
Natural gas (mmcf/d)
|
|
4,074
|
4,167
|
4,402
|
|
4,059
|
4,596
|
|
Total hydrocarbons* (mboe/d)
|
|
788
|
806
|
850
|
|
785
|
888
|
|
|
|
|
|
|
|
|
|
|
Average realizations*(e)
|
|
|
|
|
|
|
|
|
Liquids ($/bbl)
|
|
62.72
|
64.57
|
68.93
|
|
65.50
|
75.37
|
|
Natural gas ($/mcf)
|
|
6.30
|
6.41
|
6.96
|
|
6.60
|
5.90
|
|
Total hydrocarbons ($/boe)
|
|
39.18
|
40.30
|
43.21
|
|
41.34
|
38.57
|
(d)
Includes
bp’s share of production of equity-accounted entities in the
gas & low carbon energy segment.
(e)
Realizations
are based on sales by consolidated subsidiaries only – this
excludes equity-accounted entities.
oil production & operations
Financial results
●
The replacement cost (RC) profit before interest
and tax for the fourth quarter and full year was $1,735 million and
$8,558 million respectively, compared with $2,571 million and
$10,789 million for the same periods in 2024. The fourth quarter
and full year are adjusted by an adverse impact of net adjusting
items* of $223 million and $856 million respectively, compared with
an adverse impact of net adjusting items of $353 million and $1,148
million for the same periods in 2024. See page 1 for more information on adjusting
items.
●
After
adjusting RC profit before interest and tax for adjusting items,
the underlying RC profit before interest and tax* for the fourth
quarter and full year was $1,958 million and $9,414 million
respectively, compared with $2,924 million and $11,937 million for
the same periods in 2024.
●
The
underlying RC profit before interest and tax for the fourth quarter
and full year, compared with the same periods in 2024, primarily
reflect lower liquids realizations, lower share of net income of
equity-accounted entities, and a higher depreciation, depletion and
amortization charge, partly offset by higher volumes and lower
exploration write-offs.
Operational update
●
Reported
production for the quarter was 1,555mboe/d, 7.4% higher than the
same period in 2024. Underlying production* for the quarter was
5.4% higher, mainly in bpx energy.
●
Reported
production for the full year was 1,527mboe/d, 3.8% higher than the
same period in 2024. Underlying production was 2.6% higher, mainly
in bpx energy.
Strategic progress
●
bp’s
initial estimate, in regards to the August 2025 exploration
discovery in the Bumerangue block offshore Brazil, is that there is
around 8 billion barrels of liquids in place - split roughly 50%
oil, 50% condensate. As is normal at this stage, there is a wide
range of uncertainty around this estimate. bp is now putting plans
in place for an appraisal programme which is expected to start
around the end of the year. This will provide data from locations
across the reservoir, to enable us to describe the fluid
characteristics and resource potential.
●
In
December bp successfully delivered first oil from the Atlantis
Drill Center 1 expansion project in the US Gulf of America, its
seventh upstream major project* start-up of the year. The two-well
subsea tieback to the existing Atlantis platform is expected to add
15,000boe/d gross peak annualized average production.
●
In
December bp completed the divestment of the Culzean gas field in
the UK North Sea to NEO Next.
●
In
December bp completed the second phase of its divestment of
non-controlling interests in Permian and Eagle Ford midstream
assets to investor Sixth Street for a total of $1.5 billion. The
first phase completed in November.
●
In
December bp was the apparent highest bidder on 51 lease blocks in
the US Gulf of America Federal Lease Sale BBG1, which included 219
leases.
●
In
December the development programme for the Karabagh field in the
Caspian Sea, offshore Azerbaijan, was approved by the management
committee (joint venture) and subsequently by State Oil Company of
the Azerbaijan Republic (SOCAR) as the State representative.
Seismic acquisition commenced thereafter.
●
In
February 2026 bp and the Kuwait Oil Company signed a two-year
extension of the enhanced technical service agreement to manage
development of the giant Burgan oil field.
Top of
page 9
oil production & operations (continued)
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
|
$ million
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
Profit before interest and tax
|
|
1,735
|
2,116
|
2,564
|
|
8,560
|
10,780
|
|
Inventory holding (gains) losses*
|
|
—
|
3
|
7
|
|
(2)
|
9
|
|
RC profit before interest and tax
|
|
1,735
|
2,119
|
2,571
|
|
8,558
|
10,789
|
|
Net (favourable) adverse impact of adjusting items
|
|
223
|
180
|
353
|
|
856
|
1,148
|
|
Underlying RC profit before interest and tax
|
|
1,958
|
2,299
|
2,924
|
|
9,414
|
11,937
|
|
Taxation on an underlying RC basis
|
|
(918)
|
(1,054)
|
(1,226)
|
|
(4,409)
|
(5,165)
|
|
Underlying RC profit before interest
|
|
1,040
|
1,245
|
1,698
|
|
5,005
|
6,772
|
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|
Total depreciation, depletion and amortization
|
|
2,038
|
1,961
|
1,734
|
|
7,719
|
6,797
|
|
|
|
|
|
|
|
|
|
|
Exploration write-offs
|
|
|
|
|
|
|
|
|
Exploration write-offs
|
|
25
|
154
|
133
|
|
313
|
544
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA*
|
|
|
|
|
|
|
|
|
Total adjusted EBITDA
|
|
4,021
|
4,414
|
4,791
|
|
17,446
|
19,278
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure*
|
|
|
|
|
|
|
|
|
Total capital expenditure
|
|
1,636
|
1,722
|
1,478
|
|
6,760
|
6,198
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
|
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
Production (net of
royalties)(a)
|
|
|
|
|
|
|
|
|
Liquids* (mb/d)
|
|
1,134
|
1,121
|
1,057
|
|
1,114
|
1,070
|
|
Natural gas (mmcf/d)
|
|
2,442
|
2,525
|
2,269
|
|
2,391
|
2,318
|
|
Total hydrocarbons* (mboe/d)
|
|
1,555
|
1,556
|
1,449
|
|
1,527
|
1,470
|
|
|
|
|
|
|
|
|
|
|
Average realizations*(b)
|
|
|
|
|
|
|
|
|
Liquids(c)
($/bbl)
|
|
56.09
|
59.58
|
65.56
|
|
60.64
|
69.85
|
|
Natural gas ($/mcf)
|
|
3.19
|
3.32
|
3.29
|
|
3.69
|
2.55
|
|
Total hydrocarbons(c)
($/boe)
|
|
44.98
|
47.89
|
52.28
|
|
49.45
|
53.96
|
(a)
Includes
bp’s share of production of equity-accounted entities in the
oil production & operations segment.
(b)
Realizations
are based on sales by consolidated subsidiaries only – this
excludes equity-accounted entities.
(c)
Fourth
quarter and full year 2024 include an immaterial impact of a prior
period adjustment in the US region.
customers & products
Financial results
●
The replacement cost (RC) profit before interest
and tax for the fourth quarter and full year was $1,415 million and
$4,100 million respectively, compared with a loss of $1,921 million
and $1,043 million for the same periods in 2024. The fourth quarter
and full year are adjusted by a favourable impact of net adjusting
items* of $69 million and an adverse impact of $1,172 million
respectively, compared with an adverse impact of net adjusting
items of $1,619 million and $3,560 million for the same periods in
2024. See page 1 for more
information on adjusting items.
●
After
adjusting RC profit before interest and tax for adjusting items,
the underlying RC profit before interest and tax* (underlying
result) for the fourth quarter and full year was $1,346 million and
$5,272 million respectively, compared with a loss of $302 million
and a profit of $2,517 million for the same periods in
2024.
●
The
customers & products underlying result for the fourth quarter
and full year was significantly higher than the same periods in
2024, reflecting stronger performance both in customers and
products.
●
customers – the customers
underlying result for the fourth quarter and full year was higher
compared with the same periods in 2024. The underlying result
benefited from stronger integrated performance across fuels and
midstream and lower underlying operating expenditure* supported by
structural cost reductions*. The full year reflects a more than 15%
increase in Castrol's earnings with continued quarterly
year-on-year growth for 10 consecutive
quarters.
●
products – the products
underlying result for the fourth quarter and full year was
significantly higher compared with the same periods in 2024. In
refining, the fourth quarter benefited from significantly higher
realized margins and a lower level of turnaround activities. The
significantly higher products underlying result for the full year
was primarily driven by higher realized margins, the absence of the
first quarter 2024 plant-wide power outage at the Whiting refinery
and higher commercial optimization. Both the fourth quarter and
full year benefited from lower underlying operating expenditure
driven by structural cost reductions. The oil trading contribution
for the fourth quarter and full year was broadly flat compared with
the same periods in 2024.
Operational update
●
bp-operated
refining availability* for the fourth quarter and full year was
96.0% and 96.3%, compared with 94.8% and 94.3% for the same periods
in 2024. The full year was higher reflecting improved reliability
and notably the absence of the Whiting refinery power
outage.
Strategic progress
●
In
December bp reached an agreement to sell a 65% shareholding in
Castrol at an enterprise value of $10.1 billion. bp’s
retained stake in a new joint venture provides exposure to
Castrol’s growth plan while retaining optionality to realize
further value in the future. The transaction is expected to
complete by the end of 2026, subject to regulatory
approvals.
●
In
December bp completed the sale of its mobility and convenience and
bp pulse businesses in the Netherlands to Catom, a distributor of
conventional and renewable fuels and lubricants. The transaction
included around 300 bp-owned or branded retail sites, as well as 15
operational bp pulse EV charging hubs, eight under development and
the associated Dutch fleet business.
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
|
$ million
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
Profit (loss) before interest and tax(a)
|
|
541
|
1,531
|
(1,935)
|
|
2,747
|
(1,522)
|
|
Inventory holding (gains) losses*
|
|
874
|
79
|
14
|
|
1,353
|
479
|
|
RC profit (loss) before interest and tax(a)
|
|
1,415
|
1,610
|
(1,921)
|
|
4,100
|
(1,043)
|
|
Net (favourable) adverse impact of adjusting
items(a)
|
|
(69)
|
106
|
1,619
|
|
1,172
|
3,560
|
|
Underlying RC profit before interest and tax
|
|
1,346
|
1,716
|
(302)
|
|
5,272
|
2,517
|
|
Of which:(b)
|
|
|
|
|
|
|
|
|
customers
– convenience & mobility
|
|
877
|
1,167
|
527
|
|
3,764
|
2,584
|
|
Castrol – included in customers
|
|
227
|
261
|
220
|
|
971
|
831
|
|
products
– refining & trading
|
|
469
|
549
|
(829)
|
|
1,508
|
(67)
|
|
Taxation on an underlying RC basis
|
|
(379)
|
(360)
|
73
|
|
(1,066)
|
(452)
|
|
Underlying RC profit before interest
|
|
967
|
1,356
|
(229)
|
|
4,206
|
2,065
|
(a)
Comparative
periods in 2024 have been restated for material items to reflect
the move of our Archaea business from the customers & products
segment to the gas & low carbon energy segment.
(b)
A reconciliation to RC profit before interest and
tax by business is provided on page 1.
Top of
page 11
customers & products (continued)
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
|
$ million
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
Adjusted EBITDA*(c)
|
|
|
|
|
|
|
|
|
customers – convenience & mobility
|
|
1,492
|
1,786
|
1,174
|
|
6,207
|
4,719
|
|
Castrol – included in customers
|
|
262
|
309
|
267
|
|
1,150
|
1,007
|
|
products – refining & trading
|
|
909
|
975
|
(365)
|
|
3,210
|
1,755
|
|
|
|
2,401
|
2,761
|
809
|
|
9,417
|
6,474
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|
Total depreciation, depletion and amortization
|
|
1,055
|
1,045
|
1,111
|
|
4,145
|
3,957
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure*
|
|
|
|
|
|
|
|
|
customers – convenience & mobility
|
|
1,122
|
386
|
541
|
|
2,480
|
2,059
|
|
Castrol – included in customers
|
|
51
|
37
|
60
|
|
161
|
227
|
|
products – refining & trading(d)
|
|
439
|
384
|
474
|
|
1,591
|
1,730
|
|
Total capital expenditure(d)
|
|
1,561
|
770
|
1,015
|
|
4,071
|
3,789
|
(c)
A reconciliation to RC profit before interest and
tax by business is provided on page 1.
(d)
Comparative
periods in 2024 have been restated to reflect the move of our
Archaea business from the customers & products segment to the
gas & low carbon energy segment.
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
Marketing sales of refined products (mb/d)
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
US
|
|
1,197
|
1,273
|
1,244
|
|
1,230
|
1,209
|
|
Europe
|
|
998
|
1,046
|
993
|
|
999
|
1,035
|
|
Rest of World
|
|
478
|
456
|
493
|
|
467
|
470
|
|
|
|
2,673
|
2,775
|
2,730
|
|
2,696
|
2,714
|
|
Trading/supply sales of refined products
|
|
497
|
557
|
397
|
|
494
|
373
|
|
Total sales volume of refined products
|
|
3,170
|
3,332
|
3,127
|
|
3,190
|
3,087
|
|
bp average refining indicator
margin* (RIM)
($/bbl)
|
|
15.2
|
15.8
|
7.2
|
|
12.8
|
10.7
|
|
Refinery throughputs (mb/d)
|
|
|
|
|
|
|
|
|
US
|
|
611
|
683
|
583
|
|
635
|
612
|
|
Europe
|
|
849
|
833
|
807
|
|
805
|
782
|
|
Total refinery throughputs
|
|
1,460
|
1,516
|
1,390
|
|
1,440
|
1,394
|
|
|
|
|
|
|
|
|
|
|
bp-operated refining availability* (%)
|
|
96.0
|
96.6
|
94.8
|
|
96.3
|
94.3
|
other businesses & corporate
Other businesses & corporate comprises technology, bp ventures,
our corporate activities & functions and any residual costs of
the Gulf of America oil spill.
Financial results
●
The replacement cost (RC) loss before interest and
tax for the fourth quarter and full year was $386 million and $40
million respectively,
compared with a loss of $1,161 million and $988 million for the
same periods in 2024. The fourth quarter and full year are adjusted
by an adverse impact of net adjusting items* of $82 million and a
favourable impact of net adjusting items of $608 million
respectively, compared with an adverse impact of net adjusting
items of $634 million and $380 million for the same periods in
2024. Adjusting items include favourable impacts of fair value
accounting effects* of $61 million for the quarter and $1,157
million for
the full year in 2025, and an adverse impact of $493 million and
$221 million for the same periods in 2024. See page 1 for more information on adjusting
items.
●
After
adjusting RC loss before interest and tax for adjusting items, the
underlying RC loss before interest and tax* for the fourth quarter
and full year was $304 million and $648 million respectively,
compared with $527 million and $608 million for the same periods in
2024.
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
|
$ million
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
Profit (loss) before interest and tax
|
|
(386)
|
(277)
|
(1,161)
|
|
(40)
|
(988)
|
|
Inventory holding (gains) losses*
|
|
—
|
—
|
—
|
|
—
|
—
|
|
RC profit (loss) before interest and tax
|
|
(386)
|
(277)
|
(1,161)
|
|
(40)
|
(988)
|
|
Net (favourable) adverse impact of adjusting
items(a)
|
|
82
|
88
|
634
|
|
(608)
|
380
|
|
Underlying RC profit (loss) before interest and tax
|
|
(304)
|
(189)
|
(527)
|
|
(648)
|
(608)
|
|
Taxation on an underlying RC basis
|
|
151
|
106
|
254
|
|
399
|
292
|
|
Underlying RC profit (loss) before interest
|
|
(153)
|
(83)
|
(273)
|
|
(249)
|
(316)
|
(a)
Includes fair value accounting effects relating to
hybrid bonds. See page 1
for more
information.
Top of
page 13
Financial statements
Group income statement
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
|
$ million
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
|
|
|
|
|
|
|
|
|
Sales and other operating revenues (Note 5)
|
|
47,383
|
48,420
|
45,752
|
|
189,335
|
189,185
|
|
Earnings from joint ventures – after interest and
tax
|
|
(1,044)
|
176
|
75
|
|
(300)
|
909
|
|
Earnings from associates – after interest and
tax
|
|
239
|
275
|
240
|
|
918
|
1,084
|
|
Interest and other income
|
|
452
|
397
|
1,540
|
|
1,609
|
2,773
|
|
Gains on sale of businesses and fixed assets
|
|
712
|
(18)
|
481
|
|
987
|
678
|
|
Total revenues and other income
|
|
47,742
|
49,250
|
48,088
|
|
192,549
|
194,629
|
|
Purchases
|
|
28,014
|
28,031
|
27,264
|
|
110,640
|
113,941
|
|
Production and manufacturing expenses
|
|
6,759
|
6,620
|
8,041
|
|
25,646
|
26,584
|
|
Production and similar taxes
|
|
406
|
431
|
402
|
|
1,698
|
1,799
|
|
Depreciation, depletion and amortization (Note 6)
|
|
4,526
|
4,472
|
4,257
|
|
17,822
|
16,622
|
|
Net
impairment and losses on sale of businesses and fixed assets (Note
3)
|
|
3,624
|
753
|
3,107
|
|
6,037
|
6,995
|
|
Exploration expense
|
|
104
|
224
|
176
|
|
570
|
974
|
|
Distribution and administration expenses
|
|
4,570
|
4,271
|
4,098
|
|
17,494
|
16,417
|
|
Profit (loss) before interest and taxation
|
|
(261)
|
4,448
|
743
|
|
12,642
|
11,297
|
|
Finance costs
|
|
1,289
|
1,267
|
1,291
|
|
5,106
|
4,683
|
|
Net
finance (income) expense relating to pensions and other
post-employment benefits
|
|
(47)
|
(55)
|
(45)
|
|
(210)
|
(168)
|
|
Profit (loss) before taxation
|
|
(1,503)
|
3,236
|
(503)
|
|
7,746
|
6,782
|
|
Taxation
|
|
1,622
|
1,727
|
1,117
|
|
6,451
|
5,553
|
|
Profit (loss) for the period
|
|
(3,125)
|
1,509
|
(1,620)
|
|
1,295
|
1,229
|
|
Attributable to
|
|
|
|
|
|
|
|
|
bp
shareholders
|
|
(3,422)
|
1,161
|
(1,959)
|
|
55
|
381
|
|
Non-controlling
interests
|
|
297
|
348
|
339
|
|
1,240
|
848
|
|
|
|
(3,125)
|
1,509
|
(1,620)
|
|
1,295
|
1,229
|
|
|
|
|
|
|
|
|
|
|
Earnings per share (Note 7)
|
|
|
|
|
|
|
|
|
Profit (loss) for the period attributable to bp
shareholders
|
|
|
|
|
|
|
|
|
Per
ordinary share (cents)
|
|
|
|
|
|
|
|
|
Basic
|
|
(22.21)
|
7.48
|
(12.33)
|
|
0.35
|
2.38
|
|
Diluted
|
|
(22.21)
|
7.38
|
(12.33)
|
|
0.34
|
2.32
|
|
Per
ADS (dollars)
|
|
|
|
|
|
|
|
|
Basic
|
|
(1.33)
|
0.45
|
(0.74)
|
|
0.02
|
0.14
|
|
Diluted
|
|
(1.33)
|
0.44
|
(0.74)
|
|
0.02
|
0.14
|
Top of
page 14
Condensed group statement of comprehensive income
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
|
$ million
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) for the period
|
|
(3,125)
|
1,509
|
(1,620)
|
|
1,295
|
1,229
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to profit or
loss
|
|
|
|
|
|
|
|
|
Currency translation
differences(a)
|
|
(3)
|
(276)
|
(1,540)
|
|
1,863
|
(1,292)
|
|
Exchange (gains) losses on translation of foreign
operations reclassified to gain or loss on sale of businesses and
fixed assets(b)
|
|
19
|
22
|
1,004
|
|
41
|
1,004
|
|
Cash
flow hedges and costs of hedging
|
|
37
|
134
|
(209)
|
|
221
|
(535)
|
|
Share
of items relating to equity-accounted entities, net of
tax
|
|
(3)
|
(5)
|
27
|
|
(4)
|
(12)
|
|
Income
tax relating to items that may be reclassified
|
|
(4)
|
(3)
|
(79)
|
|
(22)
|
48
|
|
|
|
46
|
(128)
|
(797)
|
|
2,099
|
(787)
|
|
Items that will not be reclassified to profit or loss
|
|
|
|
|
|
|
|
|
Remeasurements
of the net pension and other post-employment benefit liability or
asset
|
|
109
|
(447)
|
(3)
|
|
(221)
|
(360)
|
|
Remeasurements
of equity investments
|
|
(7)
|
—
|
(9)
|
|
(6)
|
(47)
|
|
Cash
flow hedges that will subsequently be transferred to the balance
sheet
|
|
2
|
(1)
|
(8)
|
|
5
|
(1)
|
|
Income tax relating to items that will not be
reclassified(c)
|
|
(28)
|
126
|
(11)
|
|
55
|
734
|
|
|
|
76
|
(322)
|
(31)
|
|
(167)
|
326
|
|
Other comprehensive income
|
|
122
|
(450)
|
(828)
|
|
1,932
|
(461)
|
|
Total comprehensive income
|
|
(3,003)
|
1,059
|
(2,448)
|
|
3,227
|
768
|
|
Attributable to
|
|
|
|
|
|
|
|
|
bp
shareholders
|
|
(3,293)
|
726
|
(2,698)
|
|
1,872
|
7
|
|
Non-controlling
interests
|
|
290
|
333
|
250
|
|
1,355
|
761
|
|
|
|
(3,003)
|
1,059
|
(2,448)
|
|
3,227
|
768
|
(a)
Full
year 2025, fourth quarter 2024 and full year 2024 are principally
affected by movements in the Pound Sterling against the US
dollar.
(b)
Fourth
quarter and full year 2024 includes $942 million recycling of
cumulative foreign exchange losses from reserves relating to the
sale of bp's Türkiye ground fuels business to Petrol
Ofisi.
(c)
Full
year 2024 includes a $658-million credit in respect of the
reduction in the deferred tax liability on defined benefit pension
plan surpluses following the reduction in the rate of the
authorized surplus payments tax charge in the UK from 35% to
25%.
Top of
page 15
Condensed group statement of changes in equity
|
|
bp shareholders’
|
Non-controlling interests
|
Total
|
||
|
$ million
|
|
equity
|
Hybrid bonds
|
Other interest
|
equity
|
|
At 1 January 2025
|
|
59,246
|
16,649
|
2,423
|
78,318
|
|
|
|
|
|
|
|
|
Total comprehensive income
|
|
1,872
|
799
|
556
|
3,227
|
|
Dividends
|
|
(5,087)
|
—
|
(524)
|
(5,611)
|
|
Cash
flow hedges transferred to the balance sheet, net of
tax
|
|
(6)
|
—
|
—
|
(6)
|
|
Repurchase of ordinary share capital
|
|
(4,012)
|
—
|
—
|
(4,012)
|
|
Share-based payments, net of tax
|
|
1,112
|
—
|
—
|
1,112
|
|
Share
of equity-accounted entities’ changes in equity, net of
tax
|
|
1
|
—
|
—
|
1
|
|
Issue of perpetual hybrid bonds(a)
|
|
—
|
500
|
—
|
500
|
|
Redemption of perpetual hybrid bonds, net of
tax(b)
|
|
—
|
(1,200)
|
—
|
(1,200)
|
|
Payments on perpetual hybrid bonds
|
|
(9)
|
(793)
|
—
|
(802)
|
|
Transactions involving non-controlling interests,
net of tax(c)(d)
|
|
(65)
|
—
|
2,538
|
2,473
|
|
At 31 December 2025
|
|
53,052
|
15,955
|
4,993
|
74,000
|
|
|
|
|
|
|
|
|
|
|
bp shareholders’
|
Non-controlling interests
|
Total
|
|
|
$ million
|
|
equity
|
Hybrid bonds
|
Other interest
|
equity
|
|
At 1 January 2024
|
|
70,283
|
13,566
|
1,644
|
85,493
|
|
|
|
|
|
|
|
|
Total comprehensive income
|
|
7
|
641
|
120
|
768
|
|
Dividends
|
|
(5,018)
|
—
|
(375)
|
(5,393)
|
|
Cash
flow hedges transferred to the balance sheet, net of
tax
|
|
(10)
|
—
|
—
|
(10)
|
|
Repurchase of ordinary share capital
|
|
(7,302)
|
—
|
—
|
(7,302)
|
|
Share-based payments, net of tax
|
|
1,083
|
—
|
—
|
1,083
|
|
Issue of perpetual hybrid bonds
|
|
(22)
|
4,352
|
—
|
4,330
|
|
Redemption of perpetual hybrid bonds, net of tax
|
|
9
|
(1,300)
|
—
|
(1,291)
|
|
Payments on perpetual hybrid bonds
|
|
—
|
(610)
|
—
|
(610)
|
|
Transactions
involving non-controlling interests, net of tax
|
|
216
|
—
|
1,034
|
1,250
|
|
At 31 December 2024
|
|
59,246
|
16,649
|
2,423
|
78,318
|
(a)
During
the full year 2025 a group subsidiary issued perpetual subordinated
hybrid securities of $0.5 billion, the proceeds of which were
specifically earmarked to fund BP Alternative Energy Investments
Ltd including the funding of Lightsource bp. This transaction
resulted in a reduction of net debt and gearing.
(b)
During
the full year 2025, BP Capital Markets p.l.c. exercised its option
to redeem $1.2 billion of hybrid bonds.
(c)
During
the full year 2025, a group subsidiary that holds a 12% stake in
the Trans-Anatolian Natural Gas Pipeline (TANAP), issued $1.0
billion of equity instruments with preferred distributions. The
group retains control over the ability to defer these distributions
which are not guaranteed, and investors cannot redeem their shares
except under specific conditions that are within the group's
control.
(d)
During
the fourth quarter and full year 2025, a group subsidiary that
holds interests in Permian and Eagle Ford midstream assets,
divested equity instruments with preferred distributions for
proceeds of $1.5 billion. The group retains control over the
ability to defer these distributions which are not guaranteed, and
investors cannot redeem their shares except under specific
conditions that are within the group's control.
Top of
page 16
Group balance sheet
|
|
|
31 December
|
31 December
|
|
$ million
|
|
2025
|
2024
|
|
Non-current assets
|
|
|
|
|
Property, plant and equipment
|
|
98,633
|
100,238
|
|
Goodwill
|
|
10,300
|
14,888
|
|
Intangible assets
|
|
8,197
|
9,646
|
|
Investments in joint ventures
|
|
13,400
|
12,291
|
|
Investments in associates
|
|
7,325
|
7,741
|
|
Other investments
|
|
857
|
1,292
|
|
Fixed assets
|
|
138,712
|
146,096
|
|
Loans
|
|
1,991
|
1,961
|
|
Trade and other receivables
|
|
2,376
|
1,815
|
|
Derivative financial instruments
|
|
20,957
|
16,114
|
|
Prepayments
|
|
608
|
548
|
|
Deferred tax assets
|
|
4,325
|
5,403
|
|
Defined benefit pension plan surpluses
|
|
7,771
|
7,457
|
|
|
|
176,740
|
179,394
|
|
Current assets
|
|
|
|
|
Loans
|
|
457
|
223
|
|
Inventories
|
|
22,499
|
23,232
|
|
Trade and other receivables
|
|
26,014
|
27,127
|
|
Derivative financial instruments
|
|
5,180
|
5,112
|
|
Prepayments
|
|
3,422
|
2,594
|
|
Current tax receivable
|
|
1,153
|
1,096
|
|
Other investments
|
|
158
|
165
|
|
Cash and cash equivalents
|
|
36,556
|
39,204
|
|
|
|
95,439
|
98,753
|
|
Assets classified as held for sale (Note 2)
|
|
6,347
|
4,081
|
|
|
|
101,786
|
102,834
|
|
Total assets
|
|
278,526
|
282,228
|
|
Current liabilities
|
|
|
|
|
Trade and other payables
|
|
56,843
|
58,411
|
|
Derivative financial instruments
|
|
4,413
|
4,347
|
|
Accruals
|
|
5,572
|
6,071
|
|
Lease liabilities
|
|
2,832
|
2,660
|
|
Finance debt
|
|
3,356
|
4,474
|
|
Current tax payable
|
|
1,262
|
1,573
|
|
Provisions
|
|
4,709
|
3,600
|
|
|
|
78,987
|
81,136
|
|
Liabilities directly associated with assets classified as held for
sale (Note 2)
|
|
1,594
|
1,105
|
|
|
|
80,581
|
82,241
|
|
Non-current liabilities
|
|
|
|
|
Other payables
|
|
7,975
|
9,409
|
|
Derivative financial instruments
|
|
19,667
|
18,532
|
|
Accruals
|
|
1,834
|
1,326
|
|
Lease liabilities
|
|
11,739
|
9,340
|
|
Finance debt
|
|
54,602
|
55,073
|
|
Deferred tax liabilities
|
|
7,642
|
8,428
|
|
Provisions
|
|
15,670
|
14,688
|
|
Defined benefit pension plan and other post-employment benefit plan
deficits
|
|
4,816
|
4,873
|
|
|
|
123,945
|
121,669
|
|
Total liabilities
|
|
204,526
|
203,910
|
|
Net assets
|
|
74,000
|
78,318
|
|
Equity
|
|
|
|
|
bp shareholders’ equity
|
|
53,052
|
59,246
|
|
Non-controlling interests
|
|
20,948
|
19,072
|
|
Total equity
|
|
74,000
|
78,318
|
Top of
page 17
Condensed group cash flow statement
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
Operating activities
|
|
|
|
|
|
|
|
|
Profit (loss) before taxation
|
|
(1,503)
|
3,236
|
(503)
|
|
7,746
|
6,782
|
|
Adjustments
to reconcile profit (loss) before taxation to net cash provided by
operating activities
|
|
|
|
|
|
|
|
|
Depreciation,
depletion and amortization and exploration expenditure written
off
|
|
4,551
|
4,655
|
4,381
|
|
18,165
|
17,389
|
|
Net
impairment and (gain) loss on sale of businesses and fixed
assets
|
|
2,912
|
771
|
2,626
|
|
5,050
|
6,317
|
|
Earnings
from equity-accounted entities, less dividends
received
|
|
1,461
|
192
|
303
|
|
1,493
|
30
|
|
Remeasurement
of joint ventures
|
|
—
|
—
|
(917)
|
|
—
|
(917)
|
|
Net
charge for interest and other finance expense, less net interest
paid
|
|
486
|
470
|
602
|
|
1,229
|
1,642
|
|
Share-based
payments
|
|
197
|
264
|
228
|
|
1,077
|
1,174
|
|
Net
operating charge for pensions and other post-employment benefits,
less contributions and benefit payments for unfunded
plans
|
|
(9)
|
(96)
|
(64)
|
|
(152)
|
(182)
|
|
Net
charge for provisions, less payments
|
|
(416)
|
(60)
|
(185)
|
|
1,294
|
(152)
|
|
Movements
in inventories and other current and non-current assets and
liabilities
|
|
1,785
|
494
|
2,752
|
|
(4,820)
|
3,975
|
|
Income
taxes paid
|
|
(1,862)
|
(2,140)
|
(1,796)
|
|
(6,589)
|
(8,761)
|
|
Net cash provided by operating activities
|
|
7,602
|
7,786
|
7,427
|
|
24,493
|
27,297
|
|
Investing activities
|
|
|
|
|
|
|
|
|
Expenditure
on property, plant and equipment, intangible and other
assets
|
|
(3,463)
|
(3,171)
|
(3,893)
|
|
(13,221)
|
(15,297)
|
|
Acquisitions, net of cash acquired
|
|
(642)
|
(52)
|
493
|
|
(935)
|
53
|
|
Investment in joint ventures
|
|
(22)
|
(128)
|
(326)
|
|
(267)
|
(850)
|
|
Investment in associates
|
|
(41)
|
(30)
|
—
|
|
(110)
|
(143)
|
|
Total cash capital expenditure
|
|
(4,168)
|
(3,381)
|
(3,726)
|
|
(14,533)
|
(16,237)
|
|
Proceeds from disposal of fixed assets
|
|
498
|
30
|
211
|
|
1,142
|
328
|
|
Proceeds from disposal of businesses, net of cash
disposed
|
|
1,604
|
(2)
|
1,738
|
|
1,714
|
2,578
|
|
Proceeds from loan repayments
|
|
63
|
48
|
22
|
|
173
|
81
|
|
Cash provided from investing activities
|
|
2,165
|
76
|
1,971
|
|
3,029
|
2,987
|
|
Net cash used in investing activities
|
|
(2,003)
|
(3,305)
|
(1,755)
|
|
(11,504)
|
(13,250)
|
|
Financing activities
|
|
|
|
|
|
|
|
|
Net issue (repurchase) of shares (Note 7)
|
|
(826)
|
(750)
|
(1,625)
|
|
(4,486)
|
(7,127)
|
|
Lease liability payments
|
|
(764)
|
(816)
|
(757)
|
|
(3,091)
|
(2,833)
|
|
Proceeds from long-term financing
|
|
487
|
1,028
|
3,260
|
|
2,724
|
10,656
|
|
Repayments of long-term financing
|
|
(2,231)
|
(1,250)
|
(717)
|
|
(5,695)
|
(2,970)
|
|
Net increase (decrease) in short-term debt
|
|
(361)
|
104
|
(2,958)
|
|
(343)
|
(2,966)
|
|
Issue of perpetual hybrid bonds(a)
|
|
—
|
—
|
3,034
|
|
500
|
4,330
|
|
Redemption of perpetual hybrid bonds(a)
|
|
—
|
(1,200)
|
—
|
|
(1,200)
|
(1,288)
|
|
Payments relating to perpetual hybrid bonds
|
|
(308)
|
(284)
|
(255)
|
|
(1,196)
|
(1,053)
|
|
Payments
relating to transactions involving non-controlling interests (Other
interest)
|
|
—
|
(2)
|
(21)
|
|
(2)
|
(21)
|
|
Receipts relating to transactions involving
non-controlling interests (Other interest)(a)
|
|
1,501
|
8
|
836
|
|
2,474
|
1,353
|
|
Dividends paid - bp shareholders
|
|
(1,276)
|
(1,288)
|
(1,283)
|
|
(5,059)
|
(5,003)
|
|
-
non-controlling interests
|
|
(150)
|
(155)
|
(93)
|
|
(506)
|
(375)
|
|
Net cash provided by (used in) financing activities
|
|
(3,928)
|
(4,605)
|
(579)
|
|
(15,880)
|
(7,297)
|
|
Currency translation differences relating to cash and cash
equivalents
|
|
(2)
|
(51)
|
(419)
|
|
246
|
(511)
|
|
Increase (decrease) in cash and cash equivalents
|
|
1,669
|
(175)
|
4,674
|
|
(2,645)
|
6,239
|
|
Cash and cash equivalents at beginning of period
|
|
34,955
|
35,130
|
34,595
|
|
39,269
|
33,030
|
|
Cash and cash equivalents at end of period(b)
|
|
36,624
|
34,955
|
39,269
|
|
36,624
|
39,269
|
(a)
See Condensed group statement of changes in equity
- footnotes
(a) - (d) for further
information.
(b)
Fourth
quarter and full year 2025 include $68 million (third quarter 2025
$46 million, fourth quarter and full year 2024 $65 million) of cash
and cash equivalents classified as assets held for sale in the
group balance sheet.
Top of
page 18
Notes
Note 1. Basis of preparation
The results for the periods presented herein 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 2024 included
in bp
Annual Report and Form 20-F 2024.
bp prepares its consolidated financial statements included within
bp Annual Report and Form 20-F on the basis of United Kingdom
adopted international accounting standards and IFRS Accounting
Standards® (IFRS) as issued by the International Accounting
Standards Board (IASB), IFRS as adopted by the 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 2025 which are the same as those used in
preparing bp Annual Report and Form 20-F 2024.
There are no new or amended standards or interpretations adopted
from 1 January 2025 onwards that have a significant impact on the
financial information.
UK Energy Profits Levy
In October 2024, the UK government announced changes (effective
from 1 November 2024) to the Energy Profits Levy including a 3%
increase in the rate taking the headline rate of tax on North Sea
profits to 78%, an extension to the period of application of the
Levy to 31 March 2030 and the removal of the Levy’s main
investment allowance. The changes to the rate and to the investment
allowance were substantively enacted in 2024. The extension of the
Levy to 31 March 2030 was substantively enacted in the first
quarter 2025, resulting in a non-cash deferred charge of $539
million.
Germany tax legislation
On 11 July 2025, the German federal government substantively
enacted a number of changes to its tax legislation, including a 5%
reduction in the corporate income tax rate by 2032. The reduction
in the tax rate will be phased in by means of a 1% reduction each
year between 2028 and 2032 and has resulted in a non-cash deferred
tax charge of $233 million in the third quarter 2025.
Change in segmentation
During the first quarter of 2025, our Archaea business has moved
from the customers & products segment to the gas & low
carbon energy segment. The change in segmentation is consistent
with a change in the way that resources are allocated, and
performance is assessed by the chief operating decision maker, who
for bp is the group chief executive.
Comparative information for 2024 has been restated where material
to reflect the changes in reportable segments.
Significant accounting judgements and estimates
bp's significant accounting judgements and estimates were disclosed
in bp
Annual Report and Form 20-F 2024. These have been subsequently considered at the
end of this quarter to determine if any changes were required to
those judgements and estimates.
Impairment testing assumptions
The group’s value-in-use impairment testing price assumptions
for Brent oil and Henry Hub gas were revised during the fourth
quarter from those disclosed in the bp Annual Report and Form 20-F
2024. The revised price
assumptions have been rebased in real 2024 terms. Brent oil prices
in real 2024 terms were reduced in the short-term reflecting
greater crude supply. Medium to long term prices steadily decline
to a higher price of $60/bbl in 2050 continuing to reflect the
assumption that the energy system decarbonizes but at a slower
rate. The price assumptions for the Henry Hub gas price have been
reduced in the short term, reflecting higher supply in the market.
Prices then steadily increase in the medium term, as supply and
demand rebalance before remaining steady at $4.50/mmBtu up to 2050.
A summary of the group’s price assumptions for value-in-use
impairment testing, in real 2024 terms, is provided
below:
|
|
2026
|
2030
|
2040
|
2050
|
|
Brent oil ($/bbl)
|
70
|
70
|
67
|
60
|
|
Henry Hub gas ($/mmBtu)
|
3.80
|
4.10
|
4.50
|
4.50
|
The post-tax discount rate used for value-in-use impairment testing
of assets other than certain low carbon energy assets was
maintained at 8% (31 December 2024: 8%).
Provisions
The nominal risk-free discount rate applied to provisions is
reviewed on a quarterly basis. The discount rate applied to the
group's provisions remains at 4.5% (31 December 2024
4.5%).
Top of
page 19
Note 2. Non-current assets held for sale
The carrying amount of assets classified as held for sale at
31 December 2025 is $6,347 million, with associated
liabilities of $1,594 million.
Gas & low carbon energy
On 24 October 2024, bp completed the acquisition of the remaining
50.03% of Lightsource bp. The acquisition included certain assets
for which sales processes were in progress at the acquisition date.
Completion of the sale of these assets is expected in the first
half of 2026. The carrying amount of assets classified as held for
sale at 31 December 2025 is $1,916 million, with associated
liabilities of $1,254 million.
On 18 July 2025, bp announced that it planned to sell its US
onshore wind energy business, bp Wind Energy to LS Power. The
business has interests in ten operating onshore wind energy assets
across seven US states. The transaction completed on 9 December
2025. The related assets and liabilities of those projects,
previously classified as held for sale, were derecognised on that
date.
Customers & products
On 9 July 2025, bp announced the sale of its Netherlands mobility
& convenience and bp pulse businesses to Catom BV. The
transaction includes bp’s Dutch retail sites, EV charging
hubs and the associated fleet business. The sale completed on 1
December 2025.
On 24 December 2025, bp announced an agreement with Stonepeak to
divest a 65% shareholding in the Castrol business with bp retaining
a 35% interest through a holding in a newly incorporated entity.
Cash proceeds are estimated at $6 billion. The transaction is
expected to complete by the end of 2026, subject to regulatory
approvals. The carrying amount of assets classified as held for
sale at 31 December 2025 is $4,431 million including $2,760 million
of goodwill that arose on the acquisition of Castrol in 2000, with
associated liabilities of $340 million. The shares to be held by
Stonepeak are subject to preferred distributions, the effect of
which is that bp does not expect to recognize income or dividends
from the investment in the short to medium term.
Note 3. Impairment and losses on sale of businesses and fixed
assets
Net impairment charges and losses on sale of businesses and fixed
assets for the fourth quarter and full year were
$3,624 million and $6,037 million respectively, compared with
net charges of $3,107 million and $6,995 million for the
same periods in 2024 and include net impairment charges for the
fourth quarter and full year of $3,464 million and
$5,395 million respectively, compared with net impairment
charges of $1,514 million and
$5,189 million for
the same periods in 2024.
Gas & low carbon energy
Fourth quarter and full year 2025 impairments includes a net
impairment charge of $3,157 million and $4,038 million
respectively, compared with net charges of $890 million and
$2,749 million for the same periods in 2024 in the gas &
low carbon energy segment. The net impairment charge in both the
fourth quarter and full year 2025 primarily relates to Lightsource
bp and Archaea. In addition, a further $1,007 million and $1,082
million pre-tax impairment charges have been recognized in the
fourth quarter and full year 2025 respectively through
equity-accounted earnings primarily relating to the Archaea and
offshore wind businesses.
Oil production & operations
Fourth quarter and full year 2025 impairments includes a net
impairment charge of $113 million and $442 million respectively,
compared with a reversal of $129 million and net impairment charge
of $771 million for the same periods in 2024 in the oil production
& operations segment. In addition, a further $122 million and
$293 million pre-tax impairment charges have been recognized in the
fourth quarter and full year 2025 respectively through
equity-accounted earnings.
Customers & products
Fourth quarter and full year 2025 impairments includes a net
impairment charge of $194 million and $913 million
respectively, compared with net charges of $746 million and
$1,660 million for the same periods in 2024 in the customers
& products segment.
Top of
page 20
Note 4. Analysis of replacement cost profit (loss) before interest
and tax and reconciliation to profit (loss) before
taxation
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
gas & low carbon energy(a)
|
|
(2,172)
|
1,097
|
1,324
|
|
1,330
|
3,052
|
|
oil production & operations
|
|
1,735
|
2,119
|
2,571
|
|
8,558
|
10,789
|
|
customers & products(a)
|
|
1,415
|
1,610
|
(1,921)
|
|
4,100
|
(1,043)
|
|
other businesses & corporate
|
|
(386)
|
(277)
|
(1,161)
|
|
(40)
|
(988)
|
|
|
|
592
|
4,549
|
813
|
|
13,948
|
11,810
|
|
Consolidation adjustment – UPII*
|
|
21
|
(19)
|
(49)
|
|
45
|
(25)
|
|
RC profit (loss) before interest and tax
|
|
613
|
4,530
|
764
|
|
13,993
|
11,785
|
|
Inventory holding gains (losses)*
|
|
|
|
|
|
|
|
|
gas
& low carbon energy
|
|
—
|
—
|
—
|
|
—
|
—
|
|
oil
production & operations
|
|
—
|
(3)
|
(7)
|
|
2
|
(9)
|
|
customers
& products
|
|
(874)
|
(79)
|
(14)
|
|
(1,353)
|
(479)
|
|
Profit (loss) before interest and tax
|
|
(261)
|
4,448
|
743
|
|
12,642
|
11,297
|
|
Finance costs
|
|
1,289
|
1,267
|
1,291
|
|
5,106
|
4,683
|
|
Net
finance expense/(income) relating to pensions and other
post-employment benefits
|
|
(47)
|
(55)
|
(45)
|
|
(210)
|
(168)
|
|
Profit (loss) before taxation
|
|
(1,503)
|
3,236
|
(503)
|
|
7,746
|
6,782
|
|
|
|
|
|
|
|
|
|
|
RC profit (loss) before interest and tax*
|
|
|
|
|
|
|
|
|
US
|
|
(895)
|
632
|
(117)
|
|
2,687
|
4,160
|
|
Non-US
|
|
1,508
|
3,898
|
881
|
|
11,306
|
7,625
|
|
|
|
613
|
4,530
|
764
|
|
13,993
|
11,785
|
(a)
Comparative
periods in 2024 have been restated for material items to reflect
the move of our Archaea business from the customers & products
segment to the gas & low carbon energy segment.
Top of
page 21
Note 5. Sales and other operating revenues
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
By segment
|
|
|
|
|
|
|
|
|
gas & low carbon energy
|
|
10,728
|
9,655
|
9,618
|
|
40,333
|
32,628
|
|
oil production & operations
|
|
5,740
|
6,232
|
6,078
|
|
24,527
|
25,637
|
|
customers & products
|
|
36,474
|
38,697
|
35,969
|
|
148,783
|
155,401
|
|
other businesses & corporate
|
|
582
|
627
|
544
|
|
2,232
|
2,290
|
|
|
|
53,524
|
55,211
|
52,209
|
|
215,875
|
215,956
|
|
|
|
|
|
|
|
|
|
|
Less: sales and other operating revenues between
segments
|
|
|
|
|
|
|
|
|
gas & low carbon energy
|
|
454
|
310
|
559
|
|
1,832
|
1,585
|
|
oil production & operations
|
|
5,332
|
5,908
|
5,482
|
|
22,876
|
23,237
|
|
customers & products
|
|
(14)
|
70
|
137
|
|
43
|
317
|
|
other businesses & corporate
|
|
369
|
503
|
279
|
|
1,789
|
1,632
|
|
|
|
6,141
|
6,791
|
6,457
|
|
26,540
|
26,771
|
|
|
|
|
|
|
|
|
|
|
External sales and other operating revenues
|
|
|
|
|
|
|
|
|
gas & low carbon energy
|
|
10,274
|
9,345
|
9,059
|
|
38,501
|
31,043
|
|
oil production & operations
|
|
408
|
324
|
596
|
|
1,651
|
2,400
|
|
customers & products
|
|
36,488
|
38,627
|
35,832
|
|
148,740
|
155,084
|
|
other businesses & corporate
|
|
213
|
124
|
265
|
|
443
|
658
|
|
Total sales and other operating revenues
|
|
47,383
|
48,420
|
45,752
|
|
189,335
|
189,185
|
|
|
|
|
|
|
|
|
|
|
By geographical area
|
|
|
|
|
|
|
|
|
US
|
|
17,652
|
18,968
|
18,212
|
|
74,599
|
77,798
|
|
Non-US
|
|
37,686
|
37,877
|
35,265
|
|
147,497
|
148,017
|
|
|
|
55,338
|
56,845
|
53,477
|
|
222,096
|
225,815
|
|
Less: sales and other operating revenues between areas
|
|
7,955
|
8,425
|
7,725
|
|
32,761
|
36,630
|
|
|
|
47,383
|
48,420
|
45,752
|
|
189,335
|
189,185
|
|
|
|
|
|
|
|
|
|
|
Revenues from contracts with customers
|
|
|
|
|
|
|
|
|
Sales
and other operating revenues include the following in relation to
revenues from contracts with customers:
|
|
|
|
|
|
|
|
|
Crude oil
|
|
592
|
635
|
515
|
|
2,063
|
2,219
|
|
Oil products
|
|
28,199
|
30,274
|
27,634
|
|
114,207
|
121,019
|
|
Natural gas, LNG and NGLs
|
|
6,973
|
7,192
|
7,268
|
|
27,477
|
24,464
|
|
Non-oil products and other revenues from contracts with
customers
|
|
4,274
|
3,528
|
4,113
|
|
15,132
|
13,362
|
|
Revenue from contracts with customers
|
|
40,038
|
41,629
|
39,530
|
|
158,879
|
161,064
|
|
Other operating revenues(a)
|
|
7,345
|
6,791
|
6,222
|
|
30,456
|
28,121
|
|
Total sales and other operating revenues
|
|
47,383
|
48,420
|
45,752
|
|
189,335
|
189,185
|
(a)
Principally
relates to commodity derivative transactions including sales of bp
own production in trading books.
Top of
page 22
Note 6. Depreciation, depletion and amortization
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
Total depreciation, depletion and amortization by
segment
|
|
|
|
|
|
|
|
|
gas & low carbon energy
|
|
1,173
|
1,223
|
1,153
|
|
4,969
|
4,835
|
|
oil production & operations
|
|
2,038
|
1,961
|
1,734
|
|
7,719
|
6,797
|
|
customers & products
|
|
1,055
|
1,045
|
1,111
|
|
4,145
|
3,957
|
|
other businesses & corporate
|
|
260
|
243
|
259
|
|
989
|
1,033
|
|
|
|
4,526
|
4,472
|
4,257
|
|
17,822
|
16,622
|
|
Total depreciation, depletion and amortization by geographical
area
|
|
|
|
|
|
|
|
|
US
|
|
1,780
|
1,898
|
1,739
|
|
7,311
|
6,747
|
|
Non-US
|
|
2,746
|
2,574
|
2,518
|
|
10,511
|
9,875
|
|
|
|
4,526
|
4,472
|
4,257
|
|
17,822
|
16,622
|
Note 7. Earnings per share and shares in issue
Basic earnings per ordinary share (EpS) amounts are calculated by
dividing the profit (loss) for the period attributable to ordinary
shareholders by the weighted average number of ordinary shares
outstanding during the period. Against the authority granted at
bp's 2025 annual general meeting, 141 million ordinary shares
repurchased were settled during the fourth quarter 2025 for a total
cost of $826 million. All of these shares were held as
treasury shares. A further 74 million ordinary shares were
repurchased between the end of the reporting period and the date
when the financial statements are authorised for issue for a total
cost of $448 million. This amount has been accrued at 31 December
2025. The number of shares in issue is reduced when shares are
repurchased, but is not reduced in respect of the period-end
commitment to repurchase shares subsequent to the end of the
period.
The calculation of EpS is performed separately for each discrete
quarterly period, and for the year-to-date period. As a result, the
sum of the discrete quarterly EpS amounts in any particular
year-to-date period may not be equal to the EpS amount for the
year-to-date period.
For the diluted EpS calculation the weighted average number of
shares outstanding during the period is adjusted for the number of
shares that are potentially issuable in connection with employee
share-based payment plans using the treasury stock
method.
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
Results for the period
|
|
|
|
|
|
|
|
|
Profit
(loss) for the period attributable to bp shareholders
|
|
(3,422)
|
1,161
|
(1,959)
|
|
55
|
381
|
|
Less: preference dividend
|
|
—
|
—
|
—
|
|
1
|
1
|
|
Less:
(gain) loss on redemption of perpetual hybrid bonds
|
|
—
|
—
|
—
|
|
—
|
(10)
|
|
Profit (loss) attributable to bp ordinary shareholders
|
|
(3,422)
|
1,161
|
(1,959)
|
|
54
|
390
|
|
|
|
|
|
|
|
|
|
|
Number of shares (thousand)(a)(b)
|
|
|
|
|
|
|
|
|
Basic
weighted average number of shares outstanding
|
|
15,409,755
|
15,518,940
|
15,885,184
|
|
15,586,782
|
16,385,535
|
|
ADS equivalent(c)
|
|
2,568,292
|
2,586,490
|
2,647,530
|
|
2,597,797
|
2,730,922
|
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares outstanding used to calculate diluted
earnings per share
|
|
15,409,755
|
15,735,029
|
15,885,184
|
|
15,913,000
|
16,816,664
|
|
ADS equivalent(c)
|
|
2,568,292
|
2,622,504
|
2,647,530
|
|
2,652,166
|
2,802,777
|
|
|
|
|
|
|
|
|
|
|
Shares in issue at period-end
|
|
15,377,210
|
15,487,180
|
15,851,028
|
|
15,377,210
|
15,851,028
|
|
ADS equivalent(c)
|
|
2,562,868
|
2,581,196
|
2,641,838
|
|
2,562,868
|
2,641,838
|
(a)
If
the inclusion of potentially issuable shares would decrease loss
per share, the potentially issuable shares are excluded from the
weighted average number of shares outstanding used to calculate
diluted earnings per share. The numbers of potentially issuable
shares that have been excluded from the calculation for the fourth
quarter 2025 are 251,360 thousand (ADS equivalent 41,893 thousand)
and for the fourth quarter 2024 are 367,276 thousand (ADS
equivalent 61,213 thousand).
(b)
Excludes
treasury shares and includes certain shares that will be issued in
the future under employee share-based payment plans.
(c)
One
ADS is equivalent to six ordinary shares.
Top of
page 23
Note 8. Dividends
Dividends payable
bp today announced an interim dividend of 8.320 cents per ordinary
share which is expected to be paid on 27 March 2026 to ordinary
shareholders and American Depositary Share (ADS) holders on the
register on 20 February 2026. The ex-dividend date will be 19
February 2026 for ordinary shareholders and 20 February 2026 for
ADS holders. The corresponding amount in sterling is due to be
announced on 17 March 2026, calculated based on the average of the
market exchange rates over three dealing days between 11 March 2026
and 13 March 2026. Holders of ADSs are expected to receive $0.4992
per ADS (less applicable fees). The board has decided not to offer
a scrip dividend alternative in respect of the fourth quarter 2025
dividend. Ordinary shareholders and ADS holders (subject to certain
exceptions) will be able to participate in a dividend reinvestment
programme. Details of the fourth quarter dividend and timetable are
available at bp.com/dividends
and further details of the dividend
reinvestment programmes are available at bp.com/drip.
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
Dividends paid per ordinary share
|
|
|
|
|
|
|
|
|
cents
|
|
8.320
|
8.320
|
8.000
|
|
32.640
|
30.540
|
|
pence
|
|
6.239
|
6.194
|
6.296
|
|
24.509
|
23.720
|
|
Dividends paid per ADS (cents)
|
|
49.92
|
49.92
|
48.00
|
|
195.84
|
183.24
|
|
Net debt*
|
|
31 December
|
30 September
|
31 December
|
|
$ million
|
|
2025
|
2025
|
2024
|
|
Finance debt(a)
|
|
57,958
|
60,188
|
59,547
|
|
Fair value (asset) liability of hedges related to finance
debt(b)
|
|
780
|
775
|
2,654
|
|
|
|
58,738
|
60,963
|
62,201
|
|
Less: cash and cash equivalents
|
|
36,556
|
34,909
|
39,204
|
|
Net debt(c)
|
|
22,182
|
26,054
|
22,997
|
|
Total equity
|
|
74,000
|
77,645
|
78,318
|
|
Gearing*
|
|
23.1%
|
25.1%
|
22.7%
|
(a)
The
fair value of finance debt at 31 December 2025 was
$54,935 million (30 September 2025 $57,113 million, 31
December 2024 $54,966 million).
(b)
Derivative
financial instruments entered into for the purpose of managing
foreign currency exchange risk associated with net debt with a fair
value liability position of $94 million at 31 December
2025 (third quarter 2025 liability of $94 million and fourth
quarter 2024 liability of $166 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 fourth
quarter the group bought back $2.0 billion of finance debt
consisting entirely of US dollar bonds. These transactions had 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 9 February 2026, is unaudited
and does not constitute statutory financial statements. Audited
financial information will be published in bp Annual Report and Form 20-F
2025. bp Annual Report and Form 20-F 2024 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.
Additional information
Capital expenditure*
Capital expenditure is a measure that provides useful information
to understand how bp’s management allocates resources
including the investment of funds in projects which expand the
group’s activities through acquisition.
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
Capital expenditure
|
|
|
|
|
|
|
|
|
Organic capital expenditure*
|
|
3,524
|
3,328
|
4,229
|
|
13,613
|
16,135
|
|
Inorganic capital expenditure*(a)
|
|
644
|
53
|
(503)
|
|
920
|
102
|
|
|
|
4,168
|
3,381
|
3,726
|
|
14,533
|
16,237
|
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
Capital expenditure by segment
|
|
|
|
|
|
|
|
|
gas & low carbon energy(a)(b)
|
|
889
|
828
|
1,121
|
|
3,410
|
5,842
|
|
oil production & operations
|
|
1,636
|
1,722
|
1,478
|
|
6,760
|
6,198
|
|
customers & products(b)
|
|
1,561
|
770
|
1,015
|
|
4,071
|
3,789
|
|
other businesses & corporate
|
|
82
|
61
|
112
|
|
292
|
408
|
|
|
|
4,168
|
3,381
|
3,726
|
|
14,533
|
16,237
|
|
Capital expenditure by geographical area
|
|
|
|
|
|
|
|
|
US
|
|
1,529
|
1,591
|
1,765
|
|
6,129
|
6,566
|
|
Non-US
|
|
2,639
|
1,790
|
1,961
|
|
8,404
|
9,671
|
|
|
|
4,168
|
3,381
|
3,726
|
|
14,533
|
16,237
|
(a)
Fourth
quarter and full year 2025 include the final payment for the bp
Bunge Bioenergia acquisition. Fourth quarter and full year 2024
include the cash acquired net of acquisition payments on completion
of the bp Bunge Bioenergia and Lightsource bp
acquisitions.
(b)
Comparative
periods in 2024 have been restated to reflect the move of our
Archaea business from the customers & products segment to the
gas & low carbon energy segment.
Adjusting items*
Adjusting items 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 are used as a reconciling adjustment to derive
underlying RC profit or loss and related underlying measures which
are non-IFRS measures.
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
gas & low carbon energy
|
|
|
|
|
|
|
|
|
Gains on sale of businesses and fixed assets
|
|
190
|
—
|
268
|
|
258
|
297
|
|
Net impairment and losses on sale of businesses
and fixed assets(a)(b)
|
|
(3,154)
|
(489)
|
(1,623)
|
|
(4,448)
|
(3,521)
|
|
Environmental and related provisions
|
|
—
|
—
|
—
|
|
—
|
—
|
|
Restructuring, integration and rationalization costs
|
|
1
|
8
|
(1)
|
|
(2)
|
(25)
|
|
Fair value accounting effects(c)(d)
|
|
453
|
131
|
(377)
|
|
1,270
|
(1,550)
|
|
Other(e)
|
|
(1,051)
|
(72)
|
1,070
|
|
(1,115)
|
1,048
|
|
|
|
(3,561)
|
(422)
|
(663)
|
|
(4,037)
|
(3,751)
|
|
oil production & operations
|
|
|
|
|
|
|
|
|
Gains on sale of businesses and fixed assets
|
|
231
|
(29)
|
35
|
|
407
|
144
|
|
Net impairment and losses on sale of businesses
and fixed assets(b)
|
|
(217)
|
10
|
129
|
|
(552)
|
(790)
|
|
Environmental and related provisions
|
|
(37)
|
(145)
|
(60)
|
|
(268)
|
5
|
|
Restructuring, integration and rationalization costs
|
|
11
|
9
|
(14)
|
|
(67)
|
(15)
|
|
Fair value accounting effects
|
|
—
|
—
|
—
|
|
—
|
—
|
|
Other(f)
|
|
(211)
|
(25)
|
(443)
|
|
(376)
|
(492)
|
|
|
|
(223)
|
(180)
|
(353)
|
|
(856)
|
(1,148)
|
|
customers & products
|
|
|
|
|
|
|
|
|
Gains on sale of businesses and fixed assets
|
|
288
|
10
|
169
|
|
317
|
190
|
|
Net impairment and losses on sale of businesses
and fixed assets(a)(b)
|
|
(253)
|
(274)
|
(1,531)
|
|
(1,030)
|
(2,600)
|
|
Environmental and related provisions
|
|
(66)
|
(1)
|
(102)
|
|
(68)
|
(99)
|
|
Restructuring, integration and rationalization costs
|
|
(47)
|
(17)
|
(85)
|
|
(241)
|
(123)
|
|
Fair value accounting effects(d)
|
|
34
|
42
|
(119)
|
|
(207)
|
(81)
|
|
Other(g)
|
|
113
|
134
|
49
|
|
57
|
(847)
|
|
|
|
69
|
(106)
|
(1,619)
|
|
(1,172)
|
(3,560)
|
|
other businesses & corporate
|
|
|
|
|
|
|
|
|
Gains on sale of businesses and fixed assets
|
|
3
|
2
|
4
|
|
5
|
39
|
|
Net
impairment and losses on sale of businesses and fixed
assets
|
|
—
|
—
|
(28)
|
|
(5)
|
(19)
|
|
Environmental and related provisions
|
|
(182)
|
(48)
|
(98)
|
|
(320)
|
(87)
|
|
Restructuring, integration and rationalization costs
|
|
35
|
(8)
|
(21)
|
|
(210)
|
(59)
|
|
Fair value accounting effects(d)
|
|
61
|
(13)
|
(493)
|
|
1,157
|
(221)
|
|
Gulf of America oil spill
|
|
(4)
|
(9)
|
(12)
|
|
(31)
|
(51)
|
|
Other
|
|
5
|
(12)
|
14
|
|
12
|
18
|
|
|
|
(82)
|
(88)
|
(634)
|
|
608
|
(380)
|
|
Total before interest and taxation
|
|
(3,797)
|
(796)
|
(3,269)
|
|
(5,457)
|
(8,839)
|
|
Finance costs(h)
|
|
(80)
|
(83)
|
(150)
|
|
(428)
|
(505)
|
|
Total before taxation
|
|
(3,877)
|
(879)
|
(3,419)
|
|
(5,885)
|
(9,344)
|
|
Taxation on adjusting items(i)(j)
|
|
(418)
|
125
|
266
|
|
246
|
1,495
|
|
Taxation – tax rate change effect(k)
|
|
(2)
|
(233)
|
32
|
|
(774)
|
(316)
|
|
Total after taxation for period
|
|
(4,297)
|
(987)
|
(3,121)
|
|
(6,413)
|
(8,165)
|
(a)
Comparative
periods in 2024 have been restated to reflect the move of our
Archaea business from the customers & products segment to the
gas & low carbon energy segment.
(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
includes the change in value of LNG contracts that are being risk
managed, and the underlying result reflects how bp risk-manages its
LNG contracts.
(d)
For further information, including the nature of
fair value accounting effects reported in each segment, see
pages 1, 1 and 1.
(e)
Fourth
quarter and full year 2025 include $1,007 million and $1,082
million impairment charges recognized through equity-accounted
earnings primarily relating to the Archaea and offshore wind
businesses. Fourth quarter and full year 2024 include a $508
million gain relating to the remeasurement of bp's pre-existing
49.97% interest in Lightsource bp and $498 million relating to the
remeasurement of certain US assets excluded from the Lightsource bp
acquisition.
(f)
Fourth
quarter and full year 2024 includes $429 million of impairment
charges recognized through equity-accounted earnings relating to
our interest in Pan American Energy Group.
(g)
Full
year 2024 includes the initial recognition of onerous contract
provisions related to Gelsenkirchen refinery. The unwind of these
provisions in the subsequent quarters are reported as an adjusting
item as the contractual obligations are settled.
Top of
page 26
(h)
Includes
the unwinding of discounting effects relating to Gulf of America
oil spill payables, the income statement impact of temporary
valuation differences related to the group’s interest rate
and foreign currency exchange risk management associated with
finance debt, and the unwinding of discounting effects relating to
certain onerous contract provisions.
(i)
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.
(j)
Fourth
quarter and full year 2025 include limited tax relief on impairment
charges and the impact of the reassessment of the recognition of
deferred tax assets.
(k)
Third
quarter 2025 and full year 2025 include the deferred tax impact of
a change in the tax rate in Germany. Full year 2025 and full year
2024 include revisions to the deferred tax impact of the
introduction of the UK Energy Profits Levy (EPL) on temporary
differences existing at the opening balance sheet date. The EPL
increases the headline rate of tax on taxable profits from
bp’s North Sea business to 78%. In the first quarter 2025 a
two-year extension of the EPL to 31 March 2030 was substantively
enacted. See Note 1 for further information.
Gearing including leases and net debt including leases are non-IFRS
measures that provide the impact of the group’s lease
portfolio on net debt and gearing.
|
Net debt including leases
|
|
31 December
|
30 September
|
31 December
|
|
$ million
|
|
2025
|
2025
|
2024
|
|
Net debt*
|
|
22,182
|
26,054
|
22,997
|
|
Lease liabilities
|
|
14,571
|
14,629
|
12,000
|
|
Net
partner (receivable) payable for leases entered into on behalf of
joint operations
|
|
(1,067)
|
(1,082)
|
(88)
|
|
Net debt including leases
|
|
35,686
|
39,601
|
34,909
|
|
Total
equity
|
|
74,000
|
77,645
|
78,318
|
|
Gearing including leases*
|
|
32.5%
|
33.8%
|
30.8%
|
Gulf of America oil spill
|
|
31 December
|
31 December
|
|
|
$ million
|
|
2025
|
2024
|
|
Gulf of America oil spill payables and provisions
|
|
(7,256)
|
(7,958)
|
|
Of
which - current
|
|
(1,522)
|
(1,127)
|
|
|
|
|
|
|
Deferred tax asset
|
|
1,110
|
1,205
|
During the second quarter pre-tax payments of $1,129 million
were made relating to the 2016 consent decree and settlement
agreement with the United States and the five Gulf coast states.
Payables and provisions presented in the table above reflect the
latest estimate for the remaining costs associated with the Gulf of
America oil spill. Where amounts have been provided on an estimated
basis, the amounts ultimately payable may differ from the amounts
provided and the timing of payments is uncertain. Further
information relating to the Gulf of America oil spill, including
information on the nature and expected timing of payments relating
to provisions and other payables, is provided in
bp Annual Report
and Form 20-F 2024 - Financial
statements - Notes 7, 22, 23, 29, and 33.
Working capital* reconciliation
Change in working capital adjusted for inventory holding
gains/losses*, fair value accounting effects* relating to
subsidiaries and other adjusting items is a non-IFRS measure. It
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.
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
|
$ million
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
Movements in inventories and other current and
non-current assets and liabilities as per condensed group cash flow
statement(a)
|
|
1,785
|
494
|
2,752
|
|
(4,820)
|
3,975
|
|
Adjusted for inventory holding gains (losses) (Note 4)
|
|
(874)
|
(82)
|
(21)
|
|
(1,351)
|
(488)
|
|
Adjusted for fair value accounting effects relating to
subsidiaries
|
|
608
|
177
|
(992)
|
|
2,298
|
(2,018)
|
|
Other adjusting items(b)
|
|
(594)
|
322
|
(460)
|
|
975
|
(661)
|
|
Working
capital release (build) after adjusting for net inventory holding
gains (losses), fair value accounting effects and other adjusting
items
|
|
925
|
911
|
1,279
|
|
(2,898)
|
808
|
(a)
The
movement in working capital includes outflows relating to the Gulf
of America oil spill on a pre-tax basis of $1 million and
$1,137 million in the fourth quarter and full year 2025 (third
quarter 2025 $5 million, fourth quarter 2024 $1 million,
full year 2024 $1,141 million).
(e)
Other
adjusting items relate to the non-cash movement of US emissions
obligations carried as a provision that will be settled by
allowances held as inventory.
Adjusted EBITDA is a non-IFRS measure closely tracked by bp's
management to evaluate the underlying trends in bp’s
operating performance on a comparable basis, period on
period.
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
Profit (loss) for the period
|
|
(3,125)
|
1,509
|
(1,620)
|
|
1,295
|
1,229
|
|
Finance costs
|
|
1,289
|
1,267
|
1,291
|
|
5,106
|
4,683
|
|
Net
finance (income) expense relating to pensions and other
post-employment benefits
|
|
(47)
|
(55)
|
(45)
|
|
(210)
|
(168)
|
|
Taxation
|
|
1,622
|
1,727
|
1,117
|
|
6,451
|
5,553
|
|
Profit before interest and tax
|
|
(261)
|
4,448
|
743
|
|
12,642
|
11,297
|
|
Inventory holding (gains) losses*, before tax
|
|
874
|
82
|
21
|
|
1,351
|
488
|
|
RC profit before interest and tax
|
|
613
|
4,530
|
764
|
|
13,993
|
11,785
|
|
Net
(favourable) adverse impact of adjusting items*, before interest
and tax
|
|
3,797
|
796
|
3,269
|
|
5,457
|
8,839
|
|
Underlying RC profit before interest and tax
|
|
4,410
|
5,326
|
4,033
|
|
19,450
|
20,624
|
|
Add back:
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
4,526
|
4,472
|
4,257
|
|
17,822
|
16,622
|
|
Exploration expenditure written off
|
|
25
|
183
|
123
|
|
343
|
766
|
|
Adjusted EBITDA
|
|
8,961
|
9,981
|
8,413
|
|
37,615
|
38,012
|
Return on average capital employed (ROACE)*
|
|
|
Year
|
Year
|
|
$ million
|
|
2025
|
2024
|
|
Profit (loss) for the year attributable to bp
shareholders
|
|
55
|
381
|
|
Inventory holding (gains) losses*, net of tax
|
|
1,017
|
369
|
|
Net (favourable) adverse impact of adjusting items*, after
taxation
|
|
6,413
|
8,165
|
|
Underlying replacement cost (RC) profit*
|
|
7,485
|
8,915
|
|
Interest expense, net of tax(a)
|
|
2,800
|
2,709
|
|
Non-controlling interests
|
|
1,240
|
848
|
|
Adjusted underlying RC profit
|
|
11,525
|
12,472
|
|
Total equity
|
|
74,000
|
78,318
|
|
Finance debt
|
|
57,958
|
59,547
|
|
Capital employed
|
|
131,958
|
137,865
|
|
Less: Goodwill(b)
|
|
13,056
|
14,888
|
|
Cash
and cash equivalents
|
|
36,556
|
39,204
|
|
|
|
82,346
|
83,773
|
|
Average capital employed (excluding goodwill and cash and cash
equivalents)
|
|
83,059
|
87,859
|
|
ROACE
|
|
13.9%
|
14.2%
|
(a)
Finance
costs, as reported in the Group income statement, were
$5,106 million (2024 $4,683 million). Interest expense which
totals $3,339 million (2024 $3,113 million) on a pre-tax basis
is finance costs excluding lease interest of $672 million
(2024 $441 million), unwinding of discount on provisions and other
payables of $1,147 million (2024 $1,013 million) and other
adjusting items related to finance costs $52 million gain
(2024 $116 million expense). Interest expense included above is
calculated on a post-tax basis.
(b)
2025
includes the amount of goodwill classified as held for sale at
31 December 2025.
Underlying operating expenditure* reconciliation
Underlying operating expenditure is a non-IFRS measure and a subset
of production and manufacturing expenses plus distribution and
administration expenses and excludes costs that are classified as
adjusting items. It represents the majority of the remaining
expenses in these line items but excludes certain costs that are
variable, primarily with volumes (such as freight
costs).
Management believes that underlying operating expenditure is a
performance measure that provides investors with useful information
regarding the company’s financial performance because it
considers these expenses to be the principal operating and overhead
expenses that are most directly under their control although they
also include certain foreign exchange and commodity price
effects.
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
From group income statement
|
|
|
|
|
|
|
|
|
Production and manufacturing expenses
|
|
6,759
|
6,620
|
8,041
|
|
25,646
|
26,584
|
|
Distribution and administration expenses
|
|
4,570
|
4,271
|
4,098
|
|
17,494
|
16,417
|
|
|
|
11,329
|
10,891
|
12,139
|
|
43,140
|
43,001
|
|
Less certain variable costs:
|
|
|
|
|
|
|
|
|
Transportation and shipping
costs(a)
|
|
2,797
|
2,579
|
3,000
|
|
10,456
|
10,516
|
|
Environmental costs(a)
|
|
1,456
|
1,290
|
909
|
|
5,713
|
3,987
|
|
Marketing
and distribution costs
|
|
486
|
358
|
350
|
|
1,692
|
1,882
|
|
Commission,
storage and handling costs
|
|
413
|
410
|
375
|
|
1,594
|
1,519
|
|
Other
variable costs and non-cash costs
|
|
433
|
654
|
1,056
|
|
1,819
|
1,495
|
|
Certain variable costs and non-cash costs
|
|
5,585
|
5,291
|
5,690
|
|
21,274
|
19,399
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating expenditure*
|
|
5,744
|
5,600
|
6,449
|
|
21,866
|
23,602
|
|
Less certain adjusting items*:
|
|
|
|
|
|
|
|
|
Gulf
of America oil spill
|
|
4
|
9
|
12
|
|
31
|
51
|
|
Environmental
and related provisions
|
|
285
|
194
|
260
|
|
656
|
181
|
|
Restructuring,
integration and rationalization costs
|
|
—
|
8
|
121
|
|
520
|
222
|
|
Fair
value accounting effects – derivative instruments relating to
the hybrid bonds
|
|
(61)
|
13
|
493
|
|
(1,157)
|
221
|
|
Other
certain adjusting items
|
|
(123)
|
(111)
|
(221)
|
|
(71)
|
601
|
|
Certain adjusting items
|
|
105
|
113
|
665
|
|
(21)
|
1,276
|
|
|
|
|
|
|
|
|
|
|
Underlying operating expenditure
|
|
5,639
|
5,487
|
5,784
|
|
21,887
|
22,326
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Decrease) increase in underlying operating
expenditure
|
|
(439)
|
|
||||
|
Of which:
|
|
|
|
|
|
|
|
|
Structural cost reduction*
|
|
|
|
|
|
(2,011)
|
|
|
Increase/(decrease) in underlying operating expenditure due to
inflation, exchange movements, portfolio changes and
growth
|
|
1,572
|
|
||||
|
|
|
|
|
|
|
|
|
|
Structural cost reduction at 31 December 2025 since
2023
|
|
||||||
|
Structural cost reduction in 2024
|
|
|
|
|
|
(750)
|
|
|
Structural cost reduction in 2025
|
|
|
|
|
|
(2,011)
|
|
|
Cumulative structural cost reduction
|
|
|
|
|
|
(2,761)
|
|
|
|
|
|
|
|
|
|
|
(a)
Comparative
periods in 2024 have been restated for a reclassification in costs
from transportation and shipping to environmental.
Reconciliation of customers & products RC profit before
interest and tax to underlying RC profit before interest and tax*
to adjusted EBITDA* by business
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
RC profit (loss) before interest and tax for customers &
products(a)
|
|
1,415
|
1,610
|
(1,921)
|
|
4,100
|
(1,043)
|
|
Less: Adjusting items* gains (charges)(a)
|
|
69
|
(106)
|
(1,619)
|
|
(1,172)
|
(3,560)
|
|
Underlying
RC profit (loss) before interest and tax for customers &
products
|
|
1,346
|
1,716
|
(302)
|
|
5,272
|
2,517
|
|
By business:
|
|
|
|
|
|
|
|
|
customers
– convenience & mobility
|
|
877
|
1,167
|
527
|
|
3,764
|
2,584
|
|
Castrol – included in customers
|
|
227
|
261
|
220
|
|
971
|
831
|
|
products
– refining & trading
|
|
469
|
549
|
(829)
|
|
1,508
|
(67)
|
|
|
|
|
|
|
|
|
|
|
Add back: Depreciation, depletion and amortization
|
|
1,055
|
1,045
|
1,111
|
|
4,145
|
3,957
|
|
By business:
|
|
|
|
|
|
|
|
|
customers
– convenience & mobility
|
|
615
|
619
|
647
|
|
2,443
|
2,135
|
|
Castrol – included in customers
|
|
35
|
48
|
47
|
|
179
|
176
|
|
products
– refining & trading
|
|
440
|
426
|
464
|
|
1,702
|
1,822
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA for customers & products
|
|
2,401
|
2,761
|
809
|
|
9,417
|
6,474
|
|
By business:
|
|
|
|
|
|
|
|
|
customers
– convenience & mobility
|
|
1,492
|
1,786
|
1,174
|
|
6,207
|
4,719
|
|
Castrol – included in customers
|
|
262
|
309
|
267
|
|
1,150
|
1,007
|
|
products
– refining & trading
|
|
909
|
975
|
(365)
|
|
3,210
|
1,755
|
(a)
Comparative
periods in 2024 have been restated for material items to reflect
the move of our Archaea business from the customers & products
segment to the gas & low carbon energy segment.
Top of
page 31
Realizations* and marker prices
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
Average realizations(a)
|
|
|
|
|
|
|
|
|
Liquids* ($/bbl)
|
|
|
|
|
|
|
|
|
US(b)
|
|
49.08
|
54.02
|
59.66
|
|
54.54
|
62.78
|
|
Europe
|
|
61.84
|
69.15
|
73.64
|
|
67.65
|
78.60
|
|
Rest of World
|
|
66.55
|
67.20
|
73.72
|
|
69.40
|
79.63
|
|
bp average(b)
|
|
56.61
|
60.02
|
65.88
|
|
61.06
|
70.41
|
|
Natural gas ($/mcf)
|
|
|
|
|
|
|
|
|
US
|
|
2.53
|
2.41
|
1.80
|
|
2.63
|
1.49
|
|
Europe
|
|
9.28
|
11.98
|
14.12
|
|
12.76
|
11.65
|
|
Rest of World
|
|
6.30
|
6.41
|
6.96
|
|
6.60
|
5.90
|
|
bp average
|
|
5.21
|
5.34
|
5.85
|
|
5.61
|
4.91
|
|
Total hydrocarbons* ($/boe)
|
|
|
|
|
|
|
|
|
US(b)
|
|
35.64
|
38.91
|
41.74
|
|
39.94
|
42.43
|
|
Europe
|
|
59.55
|
69.25
|
76.28
|
|
69.60
|
75.16
|
|
Rest of World
|
|
46.70
|
47.62
|
50.18
|
|
48.94
|
47.92
|
|
bp average(b)
|
|
42.79
|
45.00
|
48.44
|
|
46.36
|
47.28
|
|
Average oil marker prices ($/bbl)
|
|
|
|
|
|
|
|
|
Brent
|
|
63.73
|
69.13
|
74.73
|
|
69.10
|
80.76
|
|
West Texas Intermediate
|
|
59.24
|
65.07
|
70.42
|
|
64.87
|
75.87
|
|
Western Canadian Select
|
|
46.72
|
52.52
|
57.50
|
|
52.69
|
61.05
|
|
Alaska North Slope
|
|
64.02
|
70.07
|
74.28
|
|
69.67
|
80.24
|
|
Average natural gas marker prices
|
|
|
|
|
|
|
|
|
Henry Hub gas price(c) ($/mmBtu)
|
|
3.55
|
3.07
|
2.79
|
|
3.43
|
2.27
|
|
UK Gas – National Balancing Point (p/therm)
|
|
75.16
|
79.84
|
106.79
|
|
88.77
|
83.57
|
(a)
Based on sales of consolidated subsidiaries
only – this excludes equity-accounted
entities.
(b)
Fourth
quarter and full year 2024 include an immaterial impact of a prior
period adjustment in the US region.
(c)
Henry
Hub First of Month Index.
Exchange rates
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
|
|
2025
|
2025
|
2024
|
|
2025
|
2024
|
|
$/£ average rate for the period
|
|
1.33
|
1.35
|
1.28
|
|
1.32
|
1.28
|
|
$/£ period-end rate
|
|
1.35
|
1.34
|
1.25
|
|
1.35
|
1.25
|
|
|
|
|
|
|
|
|
|
|
$/€ average rate for the period
|
|
1.16
|
1.17
|
1.07
|
|
1.13
|
1.08
|
|
$/€ period-end rate
|
|
1.18
|
1.17
|
1.04
|
|
1.18
|
1.04
|
|
|
|
|
|
|
|
|
|
|
$/AUD average rate for the period
|
|
0.66
|
0.65
|
0.65
|
|
0.64
|
0.66
|
|
$/AUD period-end rate
|
|
0.67
|
0.66
|
0.62
|
|
0.67
|
0.62
|
|
|
|
|
|
|
|
|
|
Top of
page 32
Legal proceedings
For a full discussion of the group’s material legal
proceedings, see pages 218-219 of bp Annual Report and Form 20-F
2024.
Non-IFRS measures are provided for investors because they are
closely tracked by management to evaluate bp’s operating
performance and to make financial, strategic and operating
decisions. Non-IFRS measures are sometimes referred to as
alternative performance measures.
Adjusted EBITDA is a non-IFRS measure presented
for bp's operating segments and is defined as replacement cost (RC)
profit before interest and tax, adjusting for net adjusting items*
before interest and tax, and adding back depreciation, depletion
and amortization and exploration write-offs (net of adjusting
items). Adjusted EBITDA by business is a further analysis of
adjusted EBITDA for the customers & products businesses. bp
believes it is helpful to disclose adjusted EBITDA by operating
segment and by business because it reflects how the segments
measure underlying business delivery. The nearest equivalent
measure on an IFRS basis for the segment is RC profit or loss
before interest and tax, which is bp's measure of profit or loss
that is required to be disclosed for each operating segment under
IFRS. A reconciliation to IFRS information is provided on
page 1 for the customers & products
businesses.
Adjusted EBITDA for the group is defined as profit or loss for the
period, adjusting for finance costs and net finance (income) or
expense relating to pensions and other post-employment benefits and
taxation, inventory holding gains or losses before tax, net
adjusting items before interest and tax, and adding back
depreciation, depletion and amortization (pre-tax) and exploration
expenditure written-off (net of adjusting items, pre-tax). The
nearest equivalent measure on an IFRS basis for the group is profit
or loss for the period. A reconciliation to IFRS information is
provided on page 1 for the
group.
Adjusted operating expenditure is a non-IFRS measure and a subset of production
and manufacturing expenses plus distribution and administration
expenses. It represents the majority of the remaining expenses in
these line items but excludes certain costs that are variable,
primarily with volumes (such as freight costs). Other variable
costs are included in purchases in the income statement. Management
believes that adjusted operating expenditure is a performance
measure that provides investors with useful information regarding
the company’s financial performance because it considers
these expenses to be the principal operating and overhead expenses
that are most directly under their control although they also
include certain adjusting items*, foreign exchange and commodity
price effects. The nearest IFRS measures are production and
manufacturing expenses and distributions and administration
expenses. A reconciliation of production and manufacturing expenses
plus distribution and administration expenses to adjusted operating
expenditure is provided on page 1.
Adjusting items are items that bp discloses
separately because it considers such disclosures to be meaningful
and relevant to investors. They are items that management considers
to be important to period-on-period analysis of the group's results
and are disclosed in order to enable investors to better understand
and evaluate the group’s reported financial performance.
Adjusting items include gains and losses on the sale of businesses
and fixed assets, impairments, environmental and related provisions
and charges, restructuring, integration and rationalization costs,
fair value accounting effects and costs relating to the Gulf of
America oil spill and other items. Adjusting items within
equity-accounted earnings are reported net of incremental income
tax reported by the equity-accounted entity. Adjusting items are
used as a reconciling adjustment to derive underlying RC profit or
loss and related underlying measures which are non-IFRS measures.
An analysis of adjusting items by segment and type is shown on
page 1.
Capital expenditure is total
cash capital expenditure as stated in the condensed group cash flow
statement. Capital expenditure for the operating segments, gas
& low carbon energy businesses and customers & products
businesses is presented on the same basis.
Consolidation adjustment – UPII is unrealized profit in inventory arising on
inter-segment transactions.
Divestment proceeds are
disposal proceeds as per the condensed group cash flow
statement.
downstream is the customers
& products segment.
Excess cash is a non-IFRS
measure and refers to the net of sources and uses of cash. 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
bonds, 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.
Top of
page 33
Glossary (continued)
Fair value accounting effects are non-IFRS adjustments to our IFRS profit
(loss). They reflect the difference between the way bp manages the
economic exposure and internally measures performance of certain
activities and the way those activities are measured under IFRS.
Fair value accounting effects are included within adjusting items.
They relate to certain of the group's commodity, interest rate and
currency risk exposures as detailed below. Other than as noted
below, the fair value accounting effects described are reported in
both the gas & low carbon energy and customer & products
segments.
bp uses derivative instruments to manage the economic exposure
relating to inventories above normal operating requirements of
crude oil, natural gas and petroleum products. Under IFRS, these
inventories are recorded at historical cost. The related derivative
instruments, however, are required to be recorded at fair value
with gains and losses recognized in the income statement. This is
because hedge accounting is either not permitted or not followed,
principally due to the impracticality of effectiveness-testing
requirements. Therefore, measurement differences in relation to
recognition of gains and losses occur. Gains and losses on these
inventories, other than net realizable value provisions, are not
recognized until the commodity is sold in a subsequent accounting
period. Gains and losses on the related derivative commodity
contracts are recognized in the income statement, from the time the
derivative commodity contract is entered into, on a fair value
basis using forward prices consistent with the contract
maturity.
bp enters into physical commodity contracts to meet certain
business requirements, such as the purchase of crude for a refinery
or the sale of bp’s gas production. Under IFRS these physical
contracts are treated as derivatives and are required to be fair
valued when they are managed as part of a larger portfolio of
similar transactions. Gains and losses arising are recognized in
the income statement from the time the derivative commodity
contract is entered into.
IFRS require that inventory held for trading is recorded at its
fair value using period-end spot prices, whereas any related
derivative commodity instruments are required to be recorded at
values based on forward prices consistent with the contract
maturity. Depending on market conditions, these forward prices can
be either higher or lower than spot prices, resulting in
measurement differences.
bp enters into contracts for pipelines and other transportation,
storage capacity, oil and gas processing, liquefied natural gas
(LNG) and certain gas and power contracts that, under IFRS, are
recorded on an accruals basis. These contracts are risk-managed
using a variety of derivative instruments that are fair valued
under IFRS. This results in measurement differences in relation to
recognition of gains and losses.
The way that bp manages the economic exposures described above, and
measures performance internally, differs from the way these
activities are measured under IFRS. bp calculates this difference
for consolidated entities by comparing the IFRS result with
management’s internal measure of performance. We believe that
disclosing management’s estimate of this difference provides
useful information for investors because it enables investors to
see the economic effect of these activities as a
whole.
These include:
●
Under
management’s internal measure of performance the inventory,
transportation and capacity contracts in question are valued based
on fair value using relevant forward prices prevailing at the end
of the period.
●
Fair
value accounting effects also include changes in the fair value of
the near-term portions of LNG contracts that fall within bp’s
risk management framework. LNG contracts are not considered
derivatives, because there is insufficient market liquidity, and
they are therefore accrual accounted under IFRS. However, oil and
natural gas derivative financial instruments used to risk manage
the near-term portions of the LNG contracts are fair valued under
IFRS. The fair value accounting effect, which is reported in the
gas and low carbon energy segment, represents the change in value
of LNG contracts that are being risk managed and which is reflected
in the underlying result, but not in reported earnings. Management
believes that this gives a better representation of performance in
each period.
Furthermore, the fair values of derivative instruments used to risk
manage certain other oil, gas, power and other contracts, are
deferred to match with the underlying exposure. The commodity
contracts for business requirements are accounted for on an
accruals basis.
In addition, fair value accounting effects include changes in the
fair value of derivatives entered into by the group to manage
currency exposure and interest rate risks relating to hybrid bonds
to their respective first call periods. The hybrid bonds which are
classified as equity instruments were recorded in the balance sheet
at their issuance date at their USD equivalent issued value. Under
IFRS these equity instruments are not remeasured from period to
period, and do not qualify for application of hedge accounting. The
derivative instruments relating to the hybrid bonds, however, are
required to be recorded at fair value with mark to market gains and
losses recognized in the income statement. Therefore,
measurement differences in relation to the recognition of gains and
losses occur. The fair value accounting effect, which is reported
in the other businesses & corporate segment, eliminates the
fair value gains and losses of these derivative financial
instruments that are recognized in the income statement. We
believe that this gives a better representation of performance, by
more appropriately reflecting the economic effect of these risk
management activities, in each period.
Top of
page 34
Glossary (continued)
Gas & low carbon energy segment comprises our gas and low carbon
businesses. Our gas business includes regions with upstream
activities that predominantly produce natural gas, integrated gas
and power and gas trading. From the first quarter of 2025 it also
includes our Archaea business which prior to that was reported in
the customers & products segment. Our low carbon business
includes solar, offshore and onshore wind, hydrogen and CCS and
power trading. Power trading includes trading of both renewable and
non-renewable power.
Gearing and net debt are non-IFRS measures. Net debt
is calculated as finance debt, as shown in the balance sheet, plus
the fair value of associated derivative financial instruments that
are used to hedge foreign currency exchange and interest rate risks
relating to finance debt, for which hedge accounting is applied,
less cash and cash equivalents. Net debt does not include accrued
interest, which is reported within other receivables and other
payables on the balance sheet and for which the associated cash
flows are presented as operating cash flows in the group cash flow
statement. Gearing is defined as the ratio of net debt to the total
of net debt plus total equity. bp believes these measures provide
useful information to investors. Net debt enables investors to see
the economic effect of finance debt, related hedges and cash and
cash equivalents in total. Gearing enables investors to see how
significant net debt is relative to total equity. The derivatives
are reported on the balance sheet within the headings
‘Derivative financial instruments’. The nearest
equivalent measures on an IFRS basis are finance debt and finance
debt ratio. A reconciliation of finance debt to net debt is
provided on page 1.
We are unable to present reconciliations of forward-looking
information for net debt or gearing to finance debt and total
equity, because without unreasonable efforts, we are unable to
forecast accurately certain adjusting items required to present a
meaningful comparable IFRS forward-looking financial measure. These
items include fair value asset (liability) of hedges related to
finance debt and cash and cash equivalents, that are difficult to
predict in advance in order to include in an IFRS
estimate.
Gearing including leases and net debt including leases
are non-IFRS measures. Net debt
including leases is calculated as net debt plus lease liabilities,
less the net amount of partner receivables and payables relating to
leases entered into on behalf of joint operations. Gearing
including leases is defined as the ratio of net debt including
leases to the total of net debt including leases plus total equity.
bp believes these measures provide useful information to investors
as they enable investors to understand the impact of the
group’s lease portfolio on net debt and gearing. The nearest
equivalent measures on an IFRS basis are finance debt and finance
debt ratio. A reconciliation of finance debt to net debt including
leases is provided on page 1.
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-IFRS measure. Inorganic capital expenditure comprises
consideration in business combinations and certain other
significant investments made by the group. It is reported on a cash
basis. bp believes that this measure provides useful information as
it allows investors to understand how bp’s management invests
funds in projects which expand the group’s activities through
acquisition. The nearest equivalent measure on an IFRS basis is
capital expenditure on a cash basis. Further information and a
reconciliation to IFRS information is provided on page
1.
Inventory holding gains and losses are non-IFRS adjustments to our IFRS profit (loss)
and represent:
●
the
difference between the cost of sales calculated using the
replacement cost of inventory and the cost of sales calculated on
the first-in first-out (FIFO) method after adjusting for any
changes in provisions where the net realizable value of the
inventory is lower than its cost. Under the FIFO method, which we
use for IFRS reporting of inventories other than for trading
inventories, the cost of inventory charged to the income statement
is based on its historical cost of purchase or manufacture, rather
than its replacement cost. In volatile energy markets, this can
have a significant distorting effect on reported income. The
amounts disclosed as inventory holding gains and losses represent
the difference between the charge to the income statement for
inventory on a FIFO basis (after adjusting for any related
movements in net realizable value provisions) and the charge that
would have arisen based on the replacement cost of inventory. For
this purpose, the replacement cost of inventory is calculated using
data from each operation’s production and manufacturing
system, either on a monthly basis, or separately for each
transaction where the system allows this approach; and
●
an
adjustment relating to certain trading inventories that are not
price risk managed which relate to a minimum inventory volume that
is required to be held to maintain underlying business activities.
This adjustment represents the movement in fair value of the
inventories due to prices, on a grade by grade basis, during the
period. This is calculated from each operation’s inventory
management system on a monthly basis using the discrete monthly
movement in market prices for these inventories.
The amounts disclosed are not separately reflected in the financial
statements as a gain or loss. No adjustment is made in respect of
the cost of inventories held as part of a trading position and
certain other temporary inventory positions that are price
risk-managed. See Replacement cost (RC) profit or loss definition
below.
Liquids – Liquids
comprises crude oil, condensate and natural gas liquids. For the
oil production & operations segment, it also includes
bitumen.
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.
Top of
page 35
Glossary (continued)
Operating cash flow is
net cash provided by (used in) operating activities as stated in
the condensed group cash flow statement.
Organic capital expenditure is a non-IFRS measure. Organic
capital expenditure comprises capital expenditure on a cash basis
less inorganic capital expenditure. bp believes that this measure
provides useful information as it allows investors to understand
how bp’s management invests funds in developing and
maintaining the group’s assets. The nearest equivalent
measure on an IFRS basis is capital expenditure on a cash basis and
a reconciliation to IFRS information is provided on page
1.
We are unable to present reconciliations of forward-looking
information for organic capital expenditure to total cash capital
expenditure, because without unreasonable efforts, we are unable to
forecast accurately the adjusting item, inorganic capital
expenditure, that is difficult to predict in advance in order to
derive the nearest IFRS estimate.
Production-sharing agreement/contract (PSA/PSC) is an arrangement through which an oil and gas
company bears the risks and costs of exploration, development and
production. In return, if exploration is successful, the oil
company receives entitlement to variable physical volumes of
hydrocarbons, representing recovery of the costs incurred and a
stipulated share of the production remaining after such cost
recovery.
Realizations are the result of
dividing revenue generated from hydrocarbon sales, excluding
revenue generated from purchases made for resale and royalty
volumes, by revenue generating hydrocarbon production volumes.
Revenue generating hydrocarbon production reflects the bp share of
production as adjusted for any production which does not generate
revenue. Adjustments may include losses due to shrinkage, amounts
consumed during processing, and contractual or regulatory host
committed volumes such as royalties. For the gas & low carbon
energy and oil production & operations segments, realizations
include transfers between businesses.
Refining availability represents
Solomon Associates’ operational availability for bp-operated
refineries, which is defined as the percentage of the year that a
unit is available for processing after subtracting the annualized
time lost due to turnaround activity and all mechanical, process
and regulatory downtime.
Refining indicator margin (RIM) is a simple indicator of the weighted average of
bp’s crude slate and product yield as deemed representative
for each refinery. Actual margins realized by bp may vary due to a
variety of factors, including the actual mix of a crude and product
for a given quarter.
Replacement cost (RC) profit or loss / RC profit or loss
attributable to bp shareholders reflects the replacement cost of inventories sold
in the period and is calculated as profit or loss attributable to
bp shareholders, adjusting for inventory holding gains and losses
(net of tax). RC profit or loss for the group is not a recognized
IFRS measure. bp believes this measure is useful to illustrate to
investors the fact that crude oil and product prices can vary
significantly from period to period and that the impact on our
reported result under IFRS can be significant. Inventory holding
gains and losses vary from period to period due to changes in
prices as well as changes in underlying inventory levels. In order
for investors to understand the operating performance of the group
excluding the impact of price changes on the replacement of
inventories, and to make comparisons of operating performance
between reporting periods, bp’s management believes it is
helpful to disclose this measure. The nearest equivalent measure on
an IFRS basis is profit or loss attributable to bp shareholders. A
reconciliation to IFRS information is provided on page 1. RC profit
or loss before interest and tax is bp's measure of profit or loss
that is required to be disclosed for each operating segment under
IFRS.
Reserves replacement ratio – the extent to which the year’s
production has been replaced by proved reserves added to our
reserve base. The ratio is expressed in oil-equivalent terms and
includes changes resulting from discoveries, improved recovery and
extensions and revisions to previous estimates, but excludes
changes resulting from acquisitions and
disposals.
Return on average capital employed (ROACE) is a non-IFRS measure. ROACE is defined as
underlying replacement cost profit, which is defined as profit or
loss attributable to bp shareholders adjusted for inventory holding
gains and losses, adjusting items and related taxation on inventory
holding gains and losses and adjusting items total taxation, after
adding back non-controlling interest and interest expense net of
tax, divided by the average of the beginning and ending balances of
total equity plus finance debt, excluding cash and cash equivalents
and goodwill as presented on the group balance sheet over the
periods presented. Interest expense before tax is finance costs as
presented on the group income statement, excluding lease interest,
the unwinding of the discount on provisions and other payables and
other adjusting items reported in finance costs. bp believes it is
helpful to disclose the ROACE because this measure gives an
indication of the company's capital efficiency. The nearest IFRS
measures of the numerator and denominator are profit or loss for
the period attributable to bp shareholders and total equity
respectively. The reconciliation of the numerator and denominator
is provided on page 1.
We are unable to present forward-looking information of the nearest
IFRS measures of the numerator and denominator for ROACE, because
without unreasonable efforts, we are unable to forecast accurately
certain adjusting items required to calculate a meaningful
comparable IFRS forward-looking financial measure. These items
include inventory holding gains or losses and interest net of tax,
that are difficult to predict in advance in order to include in an
IFRS estimate.
Structural cost reduction is calculated as decreases in
underlying operating expenditure* (as defined on page
1) as a result of operational
efficiencies, divestments, workforce reductions and other cost
saving measures that are expected to be sustainable compared with
2023 levels. The total change between periods in underlying
operating expenditure will reflect both structural cost reductions
and other changes in spend, including market factors, such as
inflation and foreign exchange impacts, as well as changes in
activity levels and costs associated with new operations. Estimates
of cumulative annual structural cost reduction may be revised
depending on whether cost reductions realized in prior periods are
determined to be sustainable compared with 2023 levels. Structural
cost reductions are stewarded internally to support
management’s oversight of spending over
time.
bp believes this performance measure is useful in demonstrating how
management drives cost discipline across the entire organization,
simplifying our processes and portfolio and streamlining the way we
work. The nearest IFRS measures are production and manufacturing
expenses and distributions and administration expenses. A
reconciliation of production and manufacturing expenses plus
distribution and administration expenses to underlying operating
expenditure is provided on page 1.
Top of
page 36
Glossary (continued)
Technical service contract (TSC) – Technical service contract is an
arrangement through which an oil and gas company bears the risks
and costs of exploration, development and production. In return,
the oil and gas company receives entitlement to variable physical
volumes of hydrocarbons, representing recovery of the costs
incurred and a profit margin which reflects incremental production
added to the oilfield.
Tier 1 and tier 2 process safety events – Tier 1 events are losses of primary
containment from a process of greatest consequence – causing
harm to a member of the workforce, damage to equipment from a fire
or explosion, a community impact or exceeding defined quantities.
Tier 2 events are those of lesser consequence. These represent
reported incidents occurring within bp’s operational HSSE
reporting boundary. That boundary includes bp’s own operated
facilities and certain other locations or situations. Reported
process safety events are investigated throughout the year and as a
result there may be changes in previously reported events.
Therefore comparative movements are calculated against internal
data reflecting the final outcomes of such investigations, rather
than the previously reported comparative period, as this represents
a more up to date reflection of the safety
environment.
Underlying effective tax rate (ETR) is a non-IFRS measure. The underlying ETR is
calculated by dividing taxation on an underlying replacement cost
(RC) basis by underlying RC profit or loss before tax. Taxation on
an underlying RC basis for the group is calculated as taxation as
stated on the group income statement adjusted for taxation on
inventory holding gains and losses and total taxation on adjusting
items. Information on underlying RC profit or loss is provided
below. Taxation on an underlying RC basis presented for the
operating segments is calculated through an allocation of taxation
on an underlying RC basis to each segment. bp believes it is
helpful to disclose the underlying ETR because this measure may
help investors to understand and evaluate, in the same manner as
management, the underlying trends in bp’s operational
performance on a comparable basis, period on period. Taxation on an
underlying RC basis and underlying ETR are non-IFRS measures. The
nearest equivalent measure on an IFRS basis is the ETR on profit or
loss for the period.
We are unable to present reconciliations of forward-looking
information for underlying ETR to ETR on profit or loss for the
period, because without unreasonable efforts, we are unable to
forecast accurately certain adjusting items required to present a
meaningful comparable IFRS forward-looking financial measure. These
items include the taxation on inventory holding gains and losses
and adjusting items, that are difficult to predict in advance in
order to include in an IFRS estimate.
Underlying operating expenditure is a non-IFRS measure and a subset of production
and manufacturing expenses plus distribution and administration
expenses and excludes costs that are classified as adjusting items.
It represents the majority of the remaining expenses in these line
items but excludes certain costs that are variable, primarily with
volumes (such as freight costs). Other variable costs are included
in purchases in the income statement. Management believes that
underlying operating expenditure is a performance measure that
provides investors with useful information regarding the
company’s financial performance because it considers these
expenses to be the principal operating and overhead expenses that
are most directly under their control although they also include
certain foreign exchange and commodity price effects. The nearest
IFRS measures are production and manufacturing expenses and
distribution and administration expenses. A reconciliation of
production and manufacturing expenses plus distribution and
administration expenses to underlying operating expenditure is
provided on page 1.
Underlying production –
2025 underlying production, when compared with 2024, is production
after adjusting for acquisitions and divestments, curtailments, and
entitlement impacts in our production-sharing agreements/contracts
and technical service contract*.
Underlying RC profit or loss / underlying RC profit or loss
attributable to bp shareholders is a non-IFRS measure and is RC profit or loss*
(as defined on page 1) after
excluding net adjusting items and related taxation. See page
1
for additional information on the
adjusting items that are used to arrive at underlying RC profit or
loss in order to enable a full understanding of the items and their
financial impact.
Underlying RC profit or loss before interest and tax
for the operating segments or
customers & products businesses is calculated as RC profit or
loss (as defined above) including profit or loss attributable to
non-controlling interests before interest and tax for the operating
segments and excluding net adjusting items for the respective
operating segment or business.
bp believes that underlying RC profit or loss is a useful measure
for investors because it is a measure closely tracked by management
to evaluate bp’s operating performance and to make financial,
strategic and operating decisions and because it may help investors
to understand and evaluate, in the same manner as management, the
underlying trends in bp’s operational performance on a
comparable basis, period on period, by adjusting for the effects of
these adjusting items. The nearest equivalent measure on an IFRS
basis for the group is profit or loss attributable to bp
shareholders. The nearest equivalent measure on an IFRS basis for
segments and businesses is RC profit or loss before interest and
taxation. A reconciliation to IFRS information is provided on page
1 for the group and pages 1-1 for the
segments.
Top of
page 37
Glossary (continued)
Underlying RC profit or loss per share / underlying RC profit or
loss per ADS is a non-IFRS
measure. Earnings per share is defined in Note 7. Underlying RC
profit or loss per ordinary share is calculated using the same
denominator as earnings per share as defined in the consolidated
financial statements. The numerator used is underlying RC profit or
loss attributable to bp shareholders, rather than profit or loss
attributable to bp ordinary shareholders. Underlying RC profit or
loss per ADS is calculated as outlined above for underlying RC
profit or loss per share except the denominator is adjusted to
reflect one ADS equivalent to six ordinary shares. bp believes it
is helpful to disclose the underlying RC profit or loss per
ordinary share and per ADS because these measures may help
investors to understand and evaluate, in the same manner as
management, the underlying trends in bp’s operational
performance on a comparable basis, period on period. The nearest
equivalent measure on an IFRS basis is basic earnings per share
based on profit or loss for the period attributable to bp ordinary
shareholders.
upstream includes oil and
natural gas field development and production within the gas &
low carbon energy and oil production & operations
segments.
upstream/hydrocarbon plant reliability (bp-operated) is calculated taking 100% less the
ratio of total unplanned plant deferrals divided by installed
production capacity, excluding non-operated assets and bpx energy.
Unplanned plant deferrals are associated with the topside plant and
where applicable the subsea equipment (excluding wells and
reservoir). Unplanned plant deferrals include breakdowns, which
does not include Gulf of America weather related
downtime.
upstream unit production costs are calculated as production cost divided by units
of production. Production cost does not include ad valorem and
severance taxes. Units of production are barrels for liquids and
thousands of cubic feet for gas. Amounts disclosed are for bp
subsidiaries only and do not include bp’s share of
equity-accounted entities.
Working capital is movements in
inventories and other current and non-current assets and
liabilities as reported in the condensed group cash flow
statement.
Change in working capital adjusted for inventory holding
gains/losses, fair value accounting effects relating to
subsidiaries and other adjusting items is a non-IFRS measure. It is
calculated by adjusting for inventory holding gains/losses reported
in the period; fair value accounting effects relating to
subsidiaries reported within adjusting items for the period; and
other adjusting items relating to the non-cash movement of US
emissions obligations carried as a provision that will be settled
by allowances held as inventory. This represents what would have
been reported as movements in inventories and other current and
non-current assets and liabilities, if the starting point in
determining net cash provided by operating activities had been
underlying replacement cost profit rather than profit for the
period. The nearest equivalent measure on an IFRS basis for this is
movements in inventories and other current and non-current assets
and liabilities.
bp utilizes various arrangements in order to manage its working
capital including discounting of receivables and, in the supply and
trading business, the active management of supplier payment terms,
inventory and collateral.
Trade marks
Trade marks of the bp group appear throughout this announcement.
They include:
bp, Amoco, Aral, ampm, bp pulse, Castrol, PETRO, TA, and Thorntons
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 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’, ‘focus on’ or similar
expressions.
In particular, the following, among other statements, are all
forward-looking in nature: plans, expectations and assumptions
regarding oil and gas demand, supply, prices or volatility;
expectations regarding production and volumes; expectations
regarding turnaround and maintenance activity; plans and
expectations regarding bp’s balance sheet, financial
performance, results of operations, cost reduction, cash flows, and
shareholder returns; plans and expectations regarding the amount
and timing of dividends, share buybacks, dividend reinvestment
programs and the use of excess cash; plans and expectations
regarding bp’s upstream production; plans and expectations
regarding the amount, effects, timing, quantum and nature of
certain acquisitions, divestments and related payments and
proceeds, including expectations regarding the Castrol business,
the Gelsenkirchen refinery, Lightsource bp and other bp businesses
and assets subject to disposal or divestment; plans and
expectations regarding bp’s net debt, credit rating,
investment strategy, capital expenditures, capital frame,
underlying effective tax rate, and depreciation, depletion and
amortization; expectations regarding bp’s customers business,
including with respect to volumes, earnings growth, fuels margins
and the impact of structural cost reduction; expectations regarding
bp’s products, including underlying performance, industry
refining margins and refinery turnaround activity; expectations
regarding bp’s other businesses & corporate underlying
annual charge; expectations regarding Gulf of America settlement
payments; plans and expectations regarding the Greater Western
Flank 4 project, the Bumerangue block, the Atlantis Drill Center 1
expansion project; and expectations regarding bp’s tax
liabilities and obligations, including the future impact of German
tax legislation.
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. Recent global developments have caused
significant uncertainty and volatility in macroeconomic conditions
and commodity markets. Each item of outlook and guidance set out in
this announcement is based on bp’s current expectations but
actual outcomes and results may be impacted by these evolving
macroeconomic and market conditions.
Actual results or outcomes may differ materially from those
expressed in such statements, depending on a variety of factors,
including: the extent and duration of the impact of current market
conditions including the volatility of oil prices, the effects of
bp’s plan to exit its shareholding in Rosneft and other
investments in Russia, overall global economic and business
conditions impacting bp’s business and demand for bp’s
products as well as the specific factors identified in the
discussions accompanying such forward-looking statements; changes
in consumer preferences and societal expectations; the pace of
development and adoption of alternative energy solutions;
developments in policy, law, regulation, technology and markets,
including societal and investor sentiment related to the issue of
climate change; the receipt of relevant third party and/or
regulatory approvals including ongoing approvals required for the
continued developments of approved projects; the timing and level
of maintenance and/or turnaround activity; the timing and volume of
refinery additions and outages; the timing of bringing new fields
onstream; the timing, quantum and nature of certain acquisitions
and divestments; future levels of industry product supply, demand
and pricing, including supply growth in North America and continued
base oil and additive supply shortages; OPEC+ quota restrictions;
PSA and TSC effects; operational and safety problems; potential
lapses in product quality; economic and financial market conditions
generally or in various countries and regions; political stability
and economic growth in relevant areas of the world; changes in laws
and governmental regulations and policies, including related to
climate change; changes in social attitudes and customer
preferences; regulatory or legal actions including the types of
enforcement action pursued and the nature of remedies sought or
imposed; the actions of prosecutors, regulatory authorities and
courts; delays in the processes for resolving claims; amounts
ultimately payable and timing of payments relating to the Gulf of
America oil spill; exchange rate fluctuations; development and use
of new technology; recruitment and retention of a skilled
workforce; the success or otherwise of partnering; the actions of
competitors, trading partners, contractors, subcontractors,
creditors, rating agencies and others; bp’s access to future
credit resources; business disruption and crisis management; the
impact on bp’s reputation of ethical misconduct and
non-compliance with regulatory obligations; trading losses; major
uninsured losses; the possibility that international sanctions or
other steps taken by governmental authorities or any other relevant
persons may impact bp’s ability to sell its interests in
Rosneft, or the price for which bp could sell such interests; the
actions of contractors; natural disasters and adverse weather
conditions; changes in public expectations and other changes to
business conditions; wars and acts of terrorism; cyber-attacks or
sabotage; and those factors discussed under “Principal risks
and uncertainties” in bp’s Report on Form 6-K regarding
results for the six-month period ended 30 June 2025 as filed with
the US Securities and Exchange Commission (the “SEC”)
as well as “Risk factors” in bp’s Annual Report
and Form 20-F for fiscal year 2024 as filed with the
SEC.
Cautionary
note to U.S. investors –
This document contains references to non-proved reserves and
production outlooks based on non-proved reserves that the
SEC’s rules prohibit us from including in our filings with
the SEC. U.S. investors are urged to consider closely the
disclosures in our Form 20-F, SEC File No. 1-06262. This form is
available on our website at www.bp.com. You can also obtain this
form from the SEC’s website at www.sec.gov.
This announcement contains inside information. The person
responsible for arranging the release of this announcement on
behalf of BP p.l.c. is Ben Mathews, Company Secretary.
Top of
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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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Rita Brown
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Paul Takahashi
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+44 (0) 7787 685821
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+1 713 903 9729
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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 213800LH1BZH3DI6G760
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: 10
February 2026
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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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