Slide 1: Full year and 4Q 2024 financial results
NICK #1 Full year and 4Q 2024 financial results 3Q 2024 financial results
Slide 2: Craig Marshall, SVP investor relations
Craig Marshall SVP investor relations Hello everyone and thank you for your interest in bp’s fourth quarter and full year 2024 results. Today’s video presentation features Murray Auchincloss, chief executive officer and Kate Thomson, chief financial officer. Before I handover to Murray, let me draw
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 results announcement
Slide 4: Murray Auchincloss, Chief executive officer
Murray Auchincloss Chief executive officer 4
Slide 5: Delivering our priorities in 2024
Delivering our priorities in 2024 1 2 3 Improving safety & Driving focus into Delivering next wave reduce emissions the business of efficiency 4 5 6 Delivering growth Optimising ROACE* Growing shareholder projects returns Growing the value of bp 4Q and FY 2024 results 5 Thanks Craig. Early in 2024,
Slide 6: Improving safety and reducing emissions
Improving safety and reducing emissions Process Safety Events (PSE) Scope 1 and 2 operational emissions MtCO2e 80 Tier 1* Tier 2* 60 60 88% 38% Tier 1: 2019-2024 2019-2024 40 40 20 20 0 0 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 2024 data is provisional 4Q and FY 2024 results 6 Sa
Slide 7: Laying the foundation for growth
Laying the foundation for growth FY 2024 – financial and operational performance Shareholder distributions Operating cash flow * EBITDA* Dividend per ordinary share of $27.3bn $38.0bn 8 cents per share 10% vs 4Q23 Upstream production Upstream plant reliability * Share buyback announced +2% 95.2% $1.
Slide 8: Operational progress in Iraq, refining and trading
country’s oil production. And in Iraq, we have agreed the majority of commercial terms with the government for the redevelopment of several oil fields in Kirkuk. This builds on our longstanding and strategic relationship and delivers access to a new material resource opportunity. In refining, availa
Slide 9: Kate Thomson, Chief financial officer
Kate Thomson Chief financial officer 8
Slide 10: 4Q24 Underlying results
4Q24 Underlying results $bn 4Q23 3Q24 4Q24 Brent ($/bbl) 84.3 80.3 74.7 4Q 2024 vs 3Q 2024 Henry Hub ($/mmbtu) 2.9 2.2 2.8 NBP (p/therm) 98.7 81.8 106.8 – Underlying RCPBIT lower reflecting: RMM ($/bbl) 18.5 16.5 13.1 Underlying RCPBIT* 6.1 5.2 4.0 – Weaker realised refining margins and Gas & low ca
Slide 11: Customers and products underlying results
– In customers, the underlying profit was around $400 million lower, reflecting lower fuels margins, seasonally lower volumes, and adverse foreign exchange impacts. – In products, the underlying result was around $300 million lower, mainly reflecting weaker realised refining margins and a higher imp
Slide 12: 4Q24 Cash flow and balance sheet
4Q24 Cash flow and balance sheet $bn 4Q23 3Q24 4Q24 4Q 2024 vs 3Q 2024 IFRS operating cash flow* 9.4 6.8 7.4 – Operating cash flow higher reflecting: – Lower cash taxes paid and timing of Working capital release*1 2.1 1.4 1.3 provision settlements Capital expenditure* (4.7) (4.5) (3.7) – Partly offs
Slide 13: Closer look at costs
Closer look at costs P&M and D&A expenses as reported Underlying operating expenditure*1 reconciliation in the group income statement 50 43.0 43.0 $bn $bn 4.3 40 40 1.9 32.9 16.4 32.9 3.0 Variable costs2 & 2.0 adjusting items*3 30 30 1.3 1.0 11.5 11.1 7.7 20 20 26.6 21.8 20.9 22.3 10 10 0 0 2019 202
Slide 14: Variable costs and underlying operating expenditure
Emissions Trading Act that was introduced in 2021. In addition, we saw an increase in marketing and distribution costs, largely reflecting increased volumes as we grow our customers business. We are continuously reviewing these variable costs to ensure we are safely running the most efficient busine
Slide 15: Continuous focus on costs
Continuous focus on costs Delivered around $5bn of structural cost reduction* $bn 5.7 0.4 22.6 22.3 -4.0 -0.8 20.9 2019 Growth1 and Structural cost 2023 Growth and Structural cost 2024 underlying operating environment 2 reduction 3 underlying operating environment reduction underlying operating expe
Slide 16: Guidance
Guidance Full year 20251 1Q 2025 vs 4Q 20241 Reported upstream Lower than 2024 Reported upstream production: production ▪ Lower compared with 4Q 2024 primarily due to the already announced Underlying upstream Slightly lower than 2024, of which OPO broadly flat and divestments in Egypt and Trinidad,
Slide 17: 2025 guidance for customers and products
production is expected to be slightly lower year-on-year. – In our customers business, we expect growth including a full year contribution from bp bioenergy and a higher contribution from TravelCenters of America. Fuels margins are expected to remain sensitive to the cost of supply and earnings deli
Slide 18: Capital markets update
Back to growth Capital markets update 26 February 2025 Resetting Driving Growing cash strategy performance flow & returns 2025 4Q capital and markets FY 2024 update results 14 Thanks Kate. I’ll close by looking ahead to our capital markets update on 26 February. Since setting out our strategy five y
Slide 19: Capital markets update closing remarks
– It will enable us to grow cash flow and returns – and shareholder value. It will be a new direction for bp, and NOT business as usual. I am excited about it and look forward to updating the market and seeing many of you then. 14
Slide 20: Appendix
Appendix 4Q and FY 2024 results 15
Slide 21: Building momentum into 2025
Building momentum into 2025 Group EBITDA* $bn 2024 to 2025 EBITDA growth: ~42 38 – Underlying growth across businesses including structural cost reduction* – Refining – return to a normal turnaround schedule with Whiting at full capacity – Portfolio, including full year impact of recent acquisitions
Slide 22: Financial summary
Financial summary $bn FY23 FY24 Brent ($/bbl) 82.6 80.8 Henry Hub ($/mmbtu) 2.7 2.3 NBP (p/therm) 98.9 83.6 RMM ($/bbl) 25.8 17.7 Underlying RCPBIT* 27.0 20.6 Gas and low carbon energy 8.7 6.8 Oil production & operations 12.8 11.9 Customer & products 6.4 2.5 Other businesses and corporate (0.9) (0.6
Slide 23: FY23 & FY24 Underlying operating expenditure reconciliation
FY23 & FY24 Underlying operating expenditure reconciliation $bn FY23 FY24 From group income statement Production and manufacturing expenses 25.0 26.6 Distribution and administration expenses 16.8 16.4 41.8 43.0 Less certain variable costs Transportation and shipping costs 10.8 11.5 Environmental cos
Slide 24: FY19 & FY23 Underlying operating expenditure reconciliation
FY19 & FY23 Underlying operating expenditure reconciliation $bn FY19 FY23 From group income statement Production and manufacturing expenses 21.8 25.0 Distribution and administration expenses 11.1 16.8 32.9 41.8 Less certain variable costs Transportation and shipping costs 7.7 10.8 Environmental cost
Slide 25: Gas and low carbon energy
Gas and low carbon energy 4Q23 3Q24 4Q24 Underlying RCPBIT* $bn Production volume 3.0 Liquids (mbd) 99 92 91 Natural gas (mmcfd) 4,637 4,627 4,402 2.0 2.0 1.8 1.8 Total hydrocarbons* (mboed) 899 890 850 1.7 1.4 Average realisations* Liquids ($/bbl) 78.87 74.80 68.93 1.0 Natural gas ($/mcf) 6.18 5.80
Slide 26: Oil production and operations
Oil production and operations 4Q23 3Q24 4Q24 Underlying RCPBIT* $bn 4.0 Production volume 3.5 Liquids (mbd) 1,024 1,084 1,057 3.1 3.1 2.8 2.9 3.0 Natural gas (mmcfd) 2,305 2,348 2,269 Total hydrocarbons* (mboed) 1,421 1,488 1,449 2.0 Average realisations* Liquids ($/bbl) 76.22 70.22 65.56 1.0 Natura
Slide 27: Customer and products
Customer and products 4Q23 3Q24 4Q24 Underlying RCPBIT* $bn Customers – convenience & mobility Customers - convenience & mobility Products - refining & trading Total Customers – convenience & mobility 2.0 1.3 1.4 1.2 adjusted EBITDA* ($bn) 1.3 1 1.1 Castrol adjusted EBITDA ($bn) 0.3 0.3 0.3 1.0 0.8
Slide 28: Transition growth engines
Transition growth engines Capex* EBITDA* $bn FY23 FY24 FY23 FY24 Bioenergy 0.7 0.8 0.51 0.7 Convenience 1.32 0.5 0.8 1.0 EV charging 0.5 0.6 (0.3) (0.2) Hydrogen 0.2 0.3 (0.3) (0.4) Renewables & power 1.1 1.5 0.4 0.1 Total transition growth* engines 3.8 3.7 1.0 1.2 (1) Commencing 1H24 we have includ
Slide 29: Strategic progress – last 12 months
Strategic progress – last 12 months Resilient hydrocarbons* Convenience and mobility1 Low carbon energy Scaling-up our bioenergy business Scaling-up our bioenergy business bp and JERA agree to combine offshore • Archaea – 9 AMD plants brought online in FY24 with capacity of >10m mmbtu of • Took full
Slide 30: Glossary – abbreviations
Glossary – abbreviations ACE Azeri Central East. JV Joint venture. ACG Azeri-Chirag-Deepwater Gunashli. LNG Liquefied natural gas. AMD Archaea Modular Design. MachH2 Midwest Alliance for Clean Hydrogen. Barrel (bbl) 159 litres, 42 US gallons. mboed Thousand barrels of oil equivalent per day. boe Bar
Slide 31: Glossary – abbreviations
Glossary – abbreviations SEA Stock Exchange Announcements. SPA Sale and purchase agreement. SVP Senior vice president. UFC Ultra-fast charging. 4Q and FY 2024 results 26
Slide 32: Glossary
Glossary Adjusting items Items that bp discloses separately because it considers such disclosures to EBITDA / Replacement cost (RC) profit before interest and tax, excluding net adjusting be meaningful and relevant to investors. They are items that management adjusted EBITDA items* before interest a
Slide 33: Glossary
Glossary Major projects Have a bp net investment of at least $250 million, or are considered to be Refining marker Average of regional indicator margins weighted for bp’s crude refining of strategic importance to bp or of a high degree of complexity. margin (RMM) capacity in each region. Each region
Slide 34: Glossary
Glossary Strategic Retail sites, within the bp portfolio, which sell bp-supplied vehicle energy Tier 1 and tier 2 Tier 1 events are losses of primary containment from a process of greatest convenience sites (e.g. bp, Aral, Arco, Amoco, Thorntons, bp pulse, TA and PETRO) and either process safety con
Slide 35: Glossary
Glossary Underlying Non-IFRS measure and a subset of production and manufacturing Working capital Movements in inventories and other current and non-current assets and operating expenses plus distribution and administration expenses and excludes costs liabilities as reported in the condensed group c
Slide 36: Resources
Resources bp's website includes information Useful links Investor events about our financial performance, reports and information on investing Why invest in bp 26 February 2025 in bp, dividend payments, AGM and Capital markets update strategy events. Modelling guidance 29 April 2025 Databook First q