BP (BP)

[SPURLEY]

Thanks for this info Ian .

[daveh]

Looney resigns
https://www.bbc.co.uk/news/business-66790609

[idpickering]

Directorate Change.

BP plc announces that Bernard Looney has notified the Company that he has resigned as Chief Executive Officer with immediate effect.

Murray Auchincloss, the Company's CFO, will act as CEO on an interim basis.

In May 2022, the Board received and reviewed allegations, with the support of external legal counsel, relating to Mr Looney's conduct in respect of personal relationships with company colleagues. The information came from an anonymous source.

During that review, Mr Looney disclosed a small number of historical relationships with colleagues prior to becoming CEO. No breach of the Company's Code of Conduct was found. However, the Board sought and was given assurances by Mr Looney regarding disclosure of past personal relationships, as well as his future behaviour.

Further allegations of a similar nature were received recently, and the Company immediately began investigating with the support of external legal counsel. That process is ongoing.

Mr Looney has today informed the Company that he now accepts that he was not fully transparent in his previous disclosures. He did not provide details of all relationships and accepts he was obligated to make more complete disclosure.

The Company has strong values and the Board expects everyone at the Company to behave in accordance with those values. All leaders in particular are expected to act as role models and to exercise good judgement in a way that earns the trust of others.

No decisions have yet been made in respect of any remuneration payments to be made to Mr Looney. In accordance with section 430(2B) of the Companies Act 2006, particulars of any such decisions will be disclosed at such times as, and to the extent that, any such decisions are made.

https://www.investegate.co.uk/announcem ... ge/7751685

Ian (I hold).

[Dod101]

I note that BP remains accident prone.

Dod

[idpickering]

Kate Thomson appointed BP interim CFO.

BP today announced that Kate Thomson has been appointed interim chief financial officer. Her appointment follows the appointment last week of Murray Auchincloss as interim bp chief executive officer.

Kate is currently BP's senior vice president, finance for Production & Operations, responsible for the financial stewardship of and commercial partnering with the business globally. She has been with bp for 19 years, previously holding a number of senior financial roles, including Group Treasurer and Head of Group Tax.

https://www.investegate.co.uk/announcem ... fo/7764269

Ian (I hold).

[idpickering]

3Q23 SEA Part 1 of 1.

This has been a solid quarter supported by strong underlying operational performance demonstrating our continued focus on delivery. Momentum continues to build across our businesses, with recent start-ups including Tangguh Expansion, bpx energy's 'Bingo' central processing facility and Archaea Energy's first modular biogas plant in Indiana. As we laid out at our investor update in Denver, we remain committed to executing our strategy, expect to grow earnings through this decade, and on track to deliver strong returns for our shareholders.

Murray Auchincloss

Chief executive officer (Interim)

Highlights

Underlying replacement cost profit* $3.3 billion

• Underlying replacement cost profit for the quarter was $3.3 billion, compared with $2.6 billion for the previous quarter. Compared to the second quarter 2023, the result reflects: higher realized refining margins, lower level of refining turnaround activity, a very strong oil trading result, higher oil and gas production, partly offset by a weak gas marketing and trading result.

• Reported profit for the quarter was $4.9 billion, compared with $1.8 billion for the second quarter 2023. The reported result for the third quarter is adjusted for inventory holding gains* of $1.2 billion (net of tax) and a net favourable impact of adjusting items* of $0.4 billion (net of tax) to derive the underlying replacement cost profit. Adjusting items include impairments of $1.2 billion and favourable fair value accounting effects* of $1.5 billion.

Operating cash flow* $8.7 billion and net debt* reduced to $22.3 billion

• Operating cash flow in the quarter of $8.7 billion includes a working capital* release (after adjusting for inventory holding gains, fair value accounting effects and other adjusting items) of $2.0 billion (see page 27).

• Capital expenditure* in the third quarter was $3.6 billion. bp now expects capital expenditure, including inorganic capital expenditure* to be around $16 billion in 2023.

• During the third quarter, bp completed $2.0 billion of share buybacks. This included $225 million as part of the $675 million programme announced on 7 February 2023 to offset the expected full-year dilution from the vesting of awards under employee share schemes in 2023. bp completed the $675 million buyback programme on 1 September 2023.

• The $1.5 billion share buyback programme announced with the second quarter results was completed on 27 October 2023.

• Net debt was reduced by $1.3 billion to $22.3 billion at the end of the third quarter.

Further $ 1.5 billion share buyback within a disciplined financial frame

• A resilient dividend is bp's first priority within its disciplined financial frame, underpinned by a cash balance point* of around $40 per barrel Brent, $11 per barrel RMM and $3 per mmBtu Henry Hub (all 2021 real).

• For the third quarter, bp has announced a dividend per ordinary share of 7.270 cents.

• bp remains committed to using 60% of 2023 surplus cash flow* for share buybacks, subject to maintaining a strong investment grade credit rating.

• bp intends to execute a further $1.5 billion share buyback prior to reporting fourth quarter results.

• In setting the dividend per ordinary share and buyback each quarter, the board will continue to take into account factors including the cumulative level of and outlook for surplus cash flow, the cash balance point and the maintenance of a strong investment grade credit rating.

• bp's guidance for distributions remains unchanged. Based on bp's current forecasts, at around $60 per barrel Brent and subject to the board's discretion each quarter, bp expects to be able to deliver share buybacks of around $4.0 billion per annum, at the lower end of its $14-18 billion capital expenditure range, and have capacity for an annual increase in the dividend per ordinary share of around 4%.

Dividends payable

BP today announced an interim dividend of 7.270 cents per ordinary share which is expected to be paid on 19 December 2023 to ordinary shareholders and American Depositary Share (ADS) holders on the register on 10 November 2023. The ex-dividend date will be 9 November 2023. The corresponding amount in sterling is due to be announced on 6 December 2023, calculated based on the average of the market exchange rates over three dealing days between 30 November 2023 and 4 December 2023. Holders of ADSs are expected to receive $0.43620 per ADS (less applicable fees). The board has decided not to offer a scrip dividend alternative in respect of the third quarter 2023 dividend. Ordinary shareholders and ADS holders (subject to certain exceptions) will be able to participate in a dividend reinvestment programme. Details of the third quarter dividend and timetable are available at bp.com/dividends and further details of the dividend reinvestment programmes are available at bp.com/drip.

https://www.investegate.co.uk/announcem ... -1/7848986

Ian (I hold).

[idpickering]

Share Repurchases.

BP p.l.c. (the "Company") announces that it is to commence a share buyback programme to repurchase ordinary shares in the capital of the Company (the "Programme").

The purpose of the Programme is to reduce the issued share capital of the Company towards distributing 60% of surplus cash flow[1] generated in 2023 as announced by the Company on 31 October 2023.

https://www.investegate.co.uk/announcem ... es/7849730

Ian.

[monabri]

https://www.theguardian.com/business/20 ... sal-as-ceo

https://www.bbc.co.uk/news/business-67709815


"Former BP boss Bernard Looney is to be dismissed without notice and will forfeit up to £32.4m after the oil giant found he committed "serious misconduct" over relationships with colleagues.

Mr Looney will not receive further salary or benefits, the oil giant said."

[88V8]

"Former BP boss Bernard Looney is to be dismissed without notice and will forfeit up to £32.4m after the oil giant found he committed "serious misconduct" over relationships with colleagues.

Makes Stormy Daniels look quite a bargain

V8

[idpickering]

BP to Pause All Oil Tanker Transits Through the Red Sea

BP Plc said it will pause all its oil tanker shipments through the Red Sea following an escalation of attacks on merchant shipping by Houthi militants.

“In light of the deteriorating security situation for shipping in the Red Sea, BP has decided to temporarily pause all transits through the Red Sea,” the company said in a statement.

https://www.bloomberg.com/news/articles ... he-red-sea

Ian.

[idpickering]

Equinor and BP just scrapped their 1.2 GW Empire Wind 2 offshore wind farm

Equinor and BP have terminated New York State’s Empire Wind 2 offshore wind farm – but a do-over isn’t out of the question.

The two companies have agreed with the New York State Energy Research and Development Authority (NYSERDA) to terminate the Offshore Wind Renewable Energy Certificate (OREC) Agreement for the 1,260 megawatt (MW) Empire Wind 2.

Equinor and bp said that the decision to terminate Empire Wind 2 was due to “commercial conditions driven by inflation, interest rates, and supply chain disruptions” that prevented its existing OREC agreement from being viable.

https://electrek.co/2024/01/03/equinor- ... 20Wind%202.

Ian (I hold BP.).

[idpickering]

Murray Auchincloss appointed BP chief executive officer

BP announced today that the bp board has appointed Murray Auchincloss as bp chief executive officer with immediate effect. Murray, who has been interim CEO since September 2023, will continue as a member of the BP board. 

His appointment has been made following a robust and competitive search process, carried out by the board over the past four months with support from international search advisers. This included detailed consideration of a range of candidates, including external to BP. 

https://www.investegate.co.uk/announcem ... eo/7992507

Ian (I hold).

[idpickering]

Q4 Results

Highlights

• Resilient financial and operational performance: 2023 Operating cash flow $32.0bn; net debt reduced to $20.9bn

• Executing with discipline: Started up four major projects* in 2023, including Seagull in 4Q; Acquisition of TravelCenters of America; Agreement to acquire Lightsource bp

• Growing shareholder distributions: Dividend per ordinary share 7.270 cents per share +10% versus 4Q22; 4Q23 $1.75bn share buyback announced; committed to announcing $3.5bn share buyback for the first half of 2024

• IOC to IEC - destination is unchanged: we will deliver as a simpler and more focused company

And later;

Dividends payable

BP today announced an interim dividend of 7.270 cents per ordinary share which is expected to be paid on 28 March 2024 to ordinary shareholders and American Depositary Share (ADS) holders on the register on 16 February 2024. The ex-dividend date will be 15 February 2024. The corresponding amount in sterling is due to be announced on 12 March 2024, calculated based on the average of the market exchange rates over three dealing days between 6 March 2024 and 8 March 2024. Holders of ADSs are expected to receive $0.43620 per ADS (less applicable fees). The board has decided not to offer a scrip dividend alternative in respect of the fourth quarter 2023 dividend. Ordinary shareholders and ADS holders (subject to certain exceptions) will be able to participate in a dividend reinvestment programme. Details of the 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.

https://www.investegate.co.uk/announcem ... -1/8023003

And https://www.investegate.co.uk/announcem ... -1/8023207

Ian (I hold).

[idpickering]

BP are up over 4% on market opening today in The UK. The above results have obviously been well received.

Ian.

[idpickering]

Share Repurchases

BP p.l.c. (the "Company") announces that it is to commence a share buyback programme to repurchase ordinary shares in the capital of the Company (the "Programme").

The purpose of the Programme is to reduce the issued share capital of the Company towards distributing 60% of surplus cash flow[1] generated in 2023 as announced by the Company on 6 February 2024.

The maximum amount allocated to the Programme is around $1.75 billion for a period up to and including 3 May 2024.

https://www.investegate.co.uk/announcem ... es/8024056

Ian.

[seagles]

Updaate from SimplyWallSt

BP.
Share Price 7 Day 1 Year
4.79 3.6% -10.2%

New major risk - Revenue and earnings growth

Earnings are forecast to decline by an average of 4.4% per year for the foreseeable future.

This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns.

Currently, the following risks have been identified for the company:

Major Risk

Earnings are forecast to decline by an average of 4.4% per year for the foreseeable future.

Minor Risk

Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past.

[simoan]

Updaate from SimplyWallSt

BP.
Share Price 7 Day 1 Year
4.79 3.6% -10.2%

New major risk - Revenue and earnings growth

Earnings are forecast to decline by an average of 4.4% per year for the foreseeable future.

This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns.

Currently, the following risks have been identified for the company:

Major Risk

Earnings are forecast to decline by an average of 4.4% per year for the foreseeable future.

Minor Risk

Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past.

Unbelievable. Do you seriously take any notice of this machine generated nonsense? The machine will be telling you it knows what the price of oil and gas will be for the next 12 months too. Or does that not matter?

[peterh]

2023 Q4 sterling dividend cash amount announced today: £0.056922

To be paid 28 March 2024.

https://www.bp.com/en/global/corporate/investors/shareholder-and-dividend-information/dividends.html

[idpickering]

1Q24 Trading statement part 1 of 1.

Updated 1Q24 guidancea

• Upstream productionb in the first quarter is expected to be higher compared to the prior quarter, with production higher in oil production & operations and slightly higher in gas & low carbon energy.

• In the gas & low carbon energy segment, realizationsc compared to the prior quarter are expected to have an adverse impact in the range of $0.2-0.4 billion, including declines in non-Henry Hub natural gas marker prices. There is also expected to be an adverse impact of around $0.2 billion as a result of the devaluation of the Egyptian Pound. In addition, the gas marketing and trading result is expected to be strong following a strong result in the fourth quarter 2023.

• In the oil production & operations segment, realizationsc compared to the prior quarter are expected to have an adverse impact in the range of $0.3-0.6 billion, including price lags on bp's production in the Gulf of Mexico and the UAE and also declines in non-Henry Hub natural gas marker prices.

• The customers and products segment, compared to the prior quarter, is expected to be impacted by the following factors: in products, improving realized refining margins, expected to result in a benefit in the range of $0.1-0.2 billion; a significantly lower level of turnaround activity than the prior quarter, offset by the impacts of the 1 February plant-wide power outage at the Whiting refinery which, after a phased start-up, resumed normal operations on 15 March; the oil trading result is expected to be strong following a weak result in the fourth quarter 2023; and in customers, significantly weaker fuel margins, seasonally lower volumes, and the absence of one-off positive effects that impacted the prior quarter.

• Other items: Net debt is expected to increase in the first quarter mainly reflecting a working capital build plus phasing of capex and divestment and other proceeds as previously guided.

https://www.investegate.co.uk/announcem ... -1/8126909

Ian (I hold).

[idpickering]

BP simplifies organisational structure and announces executive team changes.

BP is simplifying its organisational structure, supporting delivery of the priorities it set out in February 2024 to grow the value of BP..

BP will continue to have three businesses - production & operations, gas & low carbon energy and customers & products - enabled by trading & shipping. The current regions, corporates & solutions organisation will be integrated into the businesses and functions, and BP will now be supported by five functions: finance; technology; strategy, sustainability & ventures; people & culture; and legal. Together these changes will reduce duplication and reporting line complexity. bp's executive leadership team will reduce in size to ten members. bp's financial reporting structure remains unchanged.

https://www.investegate.co.uk/announcem ... am/8144431

Ian (I hold).