Bp Plc · LSE:BP.
Bp — Q1 2025 Earnings Presentation
33 slides from Bp's earnings presentation, Apr 29, 2025
Slide 1: Growing shareholder value: 1Q 2025 financial results
Growing shareholder value 1Q 2025 financial results 2025 capital markets update 1
Slide 2: Craig Marshall, SVP investor relations
Craig Marshall SVP investor relations 2025 capital markets update 2 Hello everyone and thank you for your interest in bp’s first quarter 2025 results. Today’s video presentation features Murray Auchincloss, chief executive officer and Kate Thomson, chief financial officer. Before I handover to Murra
Slide 3: Cautionary statement
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 presentation contain
Slide 4: Murray Auchincloss, Chief executive officer
Murray Auchincloss Chief executive officer 2025 capital markets update 4 4
Slide 5: Capital markets update: focused on delivery, moving at pace
Capital markets update Focused on delivery, moving at pace Resetting Reallocating Driving strategy capital performance Growing shareholder value 1Q 2025 financial results 5 Thanks Craig. Our Capital Markets Update on the 26th February marked the start of a new chapter for bp. We laid out a fundament
Slide 6: Volatility and lower price cycles are not new to the sector or to bp
Volatility and lower price cycles are not new to the sector or to bp and we are continuing to monitor developments closely. We have extensive experience of managing through many price cycles and know how to navigate a weaker environment should we see a sustained period of lower prices. 5
Slide 7: Clear near-term priorities – delivering on our plan
Clear near-term priorities – delivering on our plan Strong operational >96% refining >95% upstream ~$6/boe upstream performance availability* plant reliability* unit production cost Progressing Intent to sell Austria & Agreement for Castrol strategic divestment TANAP Netherlands retail and review un
Slide 8: Capex guidance and capital flexibility
set of balanced criteria, including lower price and margin scenarios. As we continue to optimise our investment plans, and in light of market volatility, we now expect full year 2025 capex to be around $14.5 billion, around $500 million lower than previously guided; within this, organic capital expe
Slide 9: 1Q25 highlights
1Q25 highlights Upstream plant reliability * Refining availability* >95% >96% Underlying replacement cost profit Underlying replacement cost profit * before interest and tax $4.5bn $1.4bn 1Q25 dividend per ordinary share 1Q25 share buyback announced 8¢ $750m ($1.75bn 4Q24 share buyback completed) St
Slide 10: Growing upstream – delivering cash flow and returns today
Growing upstream – delivering cash flow and returns today Delivered 3 of 10 major projects* expected to start up between 2025 and 2027… 1 Cypre Raven infills GTA Phase 1 Trinidad Egypt Mauritania & Senegal Tie backs to existing infrastructure New production hub …adding ~100mboed2 of 250mboed peak ne
Slide 11: Exploration and access success – creating future growth
Exploration and access success – creating future growth Iraq US Gulf of America • Kirkuk discovered Egypt resource access • Far South discovery • El King-2 discovery • Fayoum-5 discovery India • Mumbai High TSP Trinidad Exploration discoveries • Ginger FID Namibia (Azule JV) Access • Frangipani disc
Slide 12: Kate Thomson, Chief financial officer
Kate Thomson Chief financial officer 2025 capital markets update 10 10
Slide 13: 1Q25 Underlying results
1Q25 Underlying results $bn 1Q24 4Q24 1Q25 1Q25 vs 4Q24 Brent ($/bbl) 83.2 74.7 75.7 – Underlying RCPBIT Henry Hub ($/mmbtu) 2.3 2.8 3.7 higher reflecting: NBP (p/therm) 68.7 106.8 115.9 – Lower impact from RMM ($/bbl) 20.6 13.1 15.2 turnaround activity Underlying RCPBIT 6.0 4.0 4.5 – Stronger reali
Slide 14: Underlying profit, tax rate and cost reduction progress
realised refining margins. The oil trading contribution was average. The group underlying replacement cost profit before interest and tax was $4.5 billion. And after interest and taxes, we reported group underlying replacement cost profit of $1.4 billion. Our underlying effective tax rate increased
Slide 15: 1Q25 Cash flow and balance sheet
1Q25 Cash flow and balance sheet $bn 1Q24 4Q24 1Q25 1Q25 vs 4Q24 Operating cash flow* 5.0 7.4 2.8 – Lower operating cash flow reflects a working capital build due to seasonal Working capital (build) / release*1 (2.4) 1.3 (3.4) inventory effects and timing of payments including annual bonus payments
Slide 16: Financial frame
Financial frame Balance sheet Shareholder distributions Capital expenditure* $14 – 18bn Resilient dividend Share buybacks Disciplined investment $[15debt Net – 20]bn * target by allocation Net debt end 2027target Expect an annual increase Excess cash shared in [20XX] in dividend per ordinary through
Slide 17: Balance sheet resilience and share buybacks
balance sheet remains resilient in a lower price environment. And as Murray said earlier, today we announced $750 million of share buybacks to be executed by 2Q results. Looking ahead, we continue to expect to announce buyback decisions at the time of quarterly results. We will, of course, be mindfu
Slide 18: Guidance
Guidance Full year 20251 2Q25 vs 1Q251 Reported upstream Lower than 2024 Reported upstream production: production Underlying upstream Slightly lower than 2024, of which OPO broadly flat and ▪ Broadly flat production* GLCE lower Customers Growth in its customers businesses including a full year Custo
Slide 19: Murray Auchincloss, Chief executive officer
Murray Auchincloss Chief executive officer 2025 capital markets update 15 15
Slide 20: Our primary targets
Our primary targets Adjusted >20% 1 free cash Net debt* $14 – 18bn flow* CAGR from 2024 – 2027 target by end 2027 growth Structural $4 – 5bn >16% 1 Group cost ROACE* reduction* by end 2027 in 2027 (1) For price assumptions, see appendix 1Q 2025 2025 financial capital markets results update 16 Thanks
Slide 21: Appendix
Appendix
Slide 22: Growing shareholder value
Growing shareholder value Resetting strategy Reallocating capital Driving performance – Growing upstream* – Reallocating and reducing capex* – Improving downstream – Disciplined transition investment – Significant divestment program – Cost efficiency Compelling FCF* growth Strong returns growth >20%
Slide 23: Price assumptions
1Q 2025 results Price assumptions Marker prices 2024 Actual 20241 2025 2026 2027 2025 rule-of-thumb impact on pre-tax replacement cost operating profit2 Brent 80.8 70.0 71.5 72.9 74.4 – Oil price Brent +/- $1/bbl ($/bbl) is ~$340m – Natural gas price Henry Hub Henry Hub +/- $0.10/mmbtu is $40m 2.3 4
Slide 24: Gas and low carbon energy
Gas and low carbon energy 1Q24 4Q24 1Q25 Underlying RCPBIT* $bn Production volume Liquids (mbd) 102 91 83 Natural gas (mmcfd) 4,708 4,402 3,950 Total hydrocarbons* (mboed) 914 850 764 Average realisations* Liquids ($/bbl) 76.92 68.93 70.74 Natural gas ($/mcf) 5.45 6.96 7.26 Total hydrocarbons ($/boe
Slide 25: Oil production and operations
Oil production and operations 1Q24 4Q24 1Q25 Underlying RCPBIT* $bn Production volume Liquids (mbd) 1,056 1,057 1,086 Natural gas (mmcfd) 2,364 2,269 2,258 Total hydrocarbons* (mboed) 1,463 1,449 1,475 Average realisations* Liquids1 ($/bbl) 70.53 65.56 67.50 Natural gas ($/mcf) 2.66 3.29 4.74 Total
Slide 26: Customers and products
Customer and products 1Q24 4Q24 1Q25 Underlying RCPBIT* $bn Customers – convenience & mobility Customers – convenience & mobility 0.9 1.2 1.2 adjusted EBITDA* ($bn) Castrol adjusted EBITDA1 ($bn) 0.2 0.3 0.3 Capital expenditure* ($bn) 0.6 0.5 0.6 Marketing sales of refined products (mbd) 2,841 3,127
Slide 27: Glossary – abbreviations
Glossary – abbreviations Barrel (bbl) 159 litres, 42 US gallons. mmcfd Million cubic feet per day. boe Barrels of oil equivalent. OB&C Other businesses and corporate. CAGR Compound annual growth rate. OCF Operating cash flow. DD&A Depreciation, depletion and amortisation. OPO Oil production and oper
Slide 28: Glossary
Glossary Adjusted free Adjusted free cash flow is a non-IFRS measure. It is defined as adjusted Adjusting items Items that bp discloses separately because it considers such disclosures cash flow operating cash flow less capital expenditure. to be meaningful and relevant to investors. They are items
Slide 29: Glossary
Glossary Capital Total cash capital expenditure as stated in the condensed group cash Net debt Non-IFRS measure. Calculated as finance debt, as shown in the balance expenditure flow statement. Capital expenditure for the operating segments, gas & sheet, plus the fair value of associated derivative f
Slide 30: Glossary
Glossary Reflects the replacement cost of inventories sold in the period and is Replacement Structural cost Non-IFRS measure. Calculated as decreases in underlying operating calculated as profit or loss attributable to bp shareholders, adjusting cost (RC) profit reduction expenditure as a result of
Slide 31: Glossary
Glossary Underlying Non-IFRS measure. A subset of production and manufacturing expenses Underlying Non-IFRS measure and is RC profit or loss* after excluding net operating plus distribution and administration expenses and excludes costs that are replacement adjusting items and related taxation. expe
Slide 32: Glossary
Glossary Working capital 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
Slide 33: Resources
Resources bp's website includes information Useful links Investor events about our financial performance, reports and information on investing Why invest in bp 5 August 2025 in bp, dividend payments, AGM and Second quarter results strategy events. Modelling guidance 4 November 2025 Databook Third qu