First quarter 2023.
Highlights
Underlying replacement cost profit* $5.0 billion
• Underlying replacement cost profit for the quarter was $5.0 billion, compared with $4.8 billion for the previous quarter.
Compared to the fourth quarter 2022, the result reflects an exceptional gas marketing and trading result, a lower level of
refinery turnaround activity and a very strong oil trading result, partly offset by lower liquids and gas realizations and
lower refining margins.
• Reported profit for the quarter was $8.2 billion, compared with $10.8 billion for the fourth quarter 2022. The reported
result for the first quarter is adjusted for inventory holding losses* of $0.5 billion (net of tax) and a net favourable impact
of adjusting items* of $3.7 billion (net of tax) to derive the underlying replacement cost profit. Adjusting items include
favourable fair value accounting effects* of $4.3 billion, primarily resulting from the decline in the forward price of LNG
compared to the end of the fourth quarter.
Net debt* reduced to $21.2 billion; further $1.75 billion share buyback announced
• Operating cash flow* in the quarter was $7.6 billion including a working capital* build (after adjusting for inventory
holding losses, fair value accounting effects and other adjusting items) of $1.4 billion (see page 27).
• Capital expenditure* in the first quarter was $3.6 billion. bp continues to expect capital expenditure, including inorganic
capital expenditure*, of $16-18 billion in 2023.
• During the first quarter, bp completed $2.2 billion of share buybacks from surplus cash flow*. The $2.75 billion share
buyback programme announced with the fourth quarter results was completed on 28 April 2023.
• During the first quarter, bp also completed share buybacks of $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.
• In the first quarter, bp generated surplus cash flow of $2.3 billion and intends to execute a $1.75 billion share buyback
from surplus cash flow prior to announcing its second quarter 2023 results.
• bp remains committed to using 60% of 2023 surplus cash flow for share buybacks, subject to maintaining a strong
investment grade credit rating.
• Based on bp’s current forecasts, at around $60 per barrel Brent and subject to the board’s discretion each quarter, bp
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%.
• Net debt fell to $21.2 billion at the end of the first quarter.
Continued progress in transformation to an Integrated Energy Company
• In resilient hydrocarbons, bp has announced the safe delivery of its Mad Dog Phase 2 project in the Gulf of Mexico. In
addition, the KGD6-MJ project offshore India is in the final stages of commissioning with two wells opened to flow gas
and full start-up expected during the second quarter. bp intends to form a new joint venture with ADNOC that will be
focused on gas development, together making a non-binding offer for a 50% interest in NewMed Energy as a
significant first step. bp is moving forward with concept selection for Kaskida in the Gulf of Mexico and bp and partners
have confirmed they will progress evaluation of development concept for the bp-operated Greater Tortue Ahmeyim
Phase 2 project. During the quarter, bp completed the divestment of its interest in the Toledo refinery and its Algerian
upstream assets.
• In convenience and mobility, bp is advancing its strategy – agreeing to acquire TravelCenters of America, one of the
biggest networks of highway travel centres in the US. bp has also continued to progress its EV charging strategy –
signing a strategic collaboration agreement with Iberdrola in Spain and Portugal and signing a global mobility agreement
with Uber.
• In low carbon energy, bp has signed an agreement to take a 40% stake in the Viking carbon capture and storage (CCS)
project in the North Sea; three bp-led hydrogen and CCS projects in the north-east England have been chosen by the UK
government to progress to the next stage of development; and bp has launched plans for a low-carbon green energy
cluster in Spain's Valencia region to include world-scale green hydrogen* production at bp’s Castellón refinery with up
to 2GW of electrolysis capacity by 2030.
And later;
Dividends payable
BP today announced an interim dividend of 6.610 cents per ordinary share which is expected to be paid on 23 June 2023 to ordinary
shareholders and American Depositary Share (ADS) holders on the register on 12 May 2023. The ex-dividend date will be 11 May
2023. The corresponding amount in sterling is due to be announced on 6 June 2023, calculated based on the average of the market
exchange rates over three dealing days between 31 May 2023 and 2 June 2023. Holders of ADSs are expected to receive $0.39660
per ADS (less applicable fees). The board has decided not to offer a scrip dividend alternative in respect of the first 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 first quarter dividend and timetable are available at bp.com/dividends and further details of the dividend
reinvestment programmes are available at bp.com/dri
Downloadable via here;
https://www.bp.com/en/global/corporate/ ... bcast.htmlIan (I hold).