Bp Plc · LSE:BP.
Bp — Q2 2025 Earnings Presentation
44 slides from Bp's earnings presentation, Aug 5, 2025
Slide 1: Growing shareholder value: 2Q 2025 financial results
Growing shareholder value 2Q 2025 financial results 2Q 2025 financial results 1
Slide 2: Craig Marshall, SVP investor relations
Craig Marshall SVP investor relations 2Q 2025 financial results 2 Hello everyone and thank you for your interest in bp’s second quarter 2025 results. Today’s video presentation features Murray Auchincloss, chief executive officer and Kate Thomson, chief financial officer. Before I handover to Murray
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 2Q 2025 financial results 4 Thanks Craig. Before we begin, and following the announcement a fortnight ago, I’d like to extend my welcome to the incoming chair, Albert Manifold. Albert will join the Board on 1st September as a non-executive director and chai
Slide 5: Delivering our plan
Delivering our plan Strong operational Enhancing our portfolio and performance progressing divestments Growing resilient dividend, Delivering structural further quarterly share cost reductions buyback announced 2Q 2025 financial results 5 Turning to today’s presentation, we are now two quarters into
Slide 6: 1H25 and 2Q25 highlights
1H25 and 2Q25 highlights 1H25 ~30% ~2.3mmboed >96% >96% Tier 1 and 2 PSEs (vs. 1H24) Upstream production Upstream plant reliability * Refining availability * 2Q25 $2.4bn $6.3bn +4% $750m Underlying replacement Operating cash flow * Increase in dividend 2Q25 share buyback cost profit * including $1.4
Slide 7: Executing our strategy – growing the upstream
Executing our strategy – growing the upstream bpx Egypt Azerbaijan – Crossroads start-up – Raven infills start-up – Shah Deniz compression FID – El King-2 and – Karabagh, ADUA and US Gulf of America Libya Fayoum-5 discoveries Shafag-Asiman – Argos South West – Hasheem1 discovery Extension start-up –
Slide 8: Redevelopment opportunities in the Sirte basin
redevelopment opportunities in the Sirte basin. And finally, our subsurface and drilling teams have continued their strong start to the year with ten exploration discoveries so far – our best year in recent memory - including an exciting well in the Bumerangue block, located in Brazil's Santos basin
Slide 9: Executing our strategy – downstream and transition
Executing our strategy – downstream and transition Focusing downstream Disciplined in transition Improving Improving performance performance Reshaping our portfolio Capital-light in low carbon energy +3% improvement in refining availability*1 – Castrol strategic review –– US US onshore windsale sale
Slide 10: Refinery continue
refinery continue. In transition, we’re continuing to high-grade and decapitalise low carbon energy. This includes agreeing the sale of our US onshore wind business following a competitive bidding process. In offshore wind, we have completed the formation of JERA Nex bp, our 50:50 joint venture. Fin
Slide 11: Kate Thomson, Chief financial officer
Kate Thomson Chief financial officer 2Q 2025 financial results 9 9
Slide 12: 2Q25 Underlying results
2Q25 Underlying results $ billon 2Q25 vs 1Q25 2Q25 1Q25 2Q24 Underlying RCPBIT higher reflecting: Brent ($/bbl) 67.9 75.7 85.0 Henry Hub ($/mmbtu) 3.4 3.7 1.9 – Average gas marketing and trading result NBP (p/therm) 84.5 115.9 76.6 RMM* ($/bbl) 21.1 15.2 20.6 – Stronger realised refining margins RIM
Slide 13: Organization's resilience
organisation’s resilience and their continuing focus on creating value and delivering returns through the cycle. Below the operating segments: - underlying finance costs were $1.1 billion, and - non-controlling interest was $300 million, similar to the prior quarter and expected to remain at this le
Slide 14: 2Q25 Cash flow and balance sheet
2Q25 Cash flow and balance sheet $ billon 2Q25 vs 1Q25 2Q25 1Q25 2Q24 – Higher operating cash flow primarily driven by higher earnings Operating cash flow* 6.3 2.8 8.1 and lower working capital build – Lower net debt driven by higher Working capital (build) / release*1 (1.4) (3.4) 0.5 operating cash
Slide 15: Financial frame
Financial frame Balance sheet Shareholder distributions Capital expenditure* Resilient dividend Share buybacks $14 –18bn Expect an annual increase in dividend per ordinary Excess cash shared through buybacks over Disciplined investment allocation Net debt* target by share of at least 4%1 time end 20
Slide 16: Growing adjusted free cash flow
Growing adjusted free cash flow bp Capital Markets Update 26 February (1) For price assumptions, see appendix 2Q 2025 financial results 13 (2) Excludes any potential transactions relating to announced Castrol strategic review and Gelsenkirchen (3) Including biogas I’d now like to spend the next few
Slide 17: Framing our $4 to 5 billion structural cost reduction target
Framing our $4 to 5 billion structural cost reduction target Less: certain variable costs $41.8bn $9.7bn Transportation and shipping costs Distribution & $4.3bn administration Environment $5.3bn − Price and volume Other driven $22.6bn − RINs − CO2 credits − German emissions $4-5bn target − Marketing
Slide 18: Delivering a net reduction in underlying operating expenditure
Delivering a net reduction in underlying operating expenditure 2024 1H25 $0.4bn $0.4bn $22.6bn $0.4bn $22.3bn -$0.8bn − Inflation -$0.9bn Organic growth ~50% − Energy costs − Major project start-ups − Forex movements − Supply chain − bpx production growth efficiencies Inorganic growth ~50% − Organis
Slide 19: Strong momentum delivering structural cost reductions
Strong momentum delivering structural cost reductions Structural cost reductions* delivered by period Structural cost reductions delivered by category $1.7bn structural cost reductions delivered 1 (1) Versus 2023 baseline. Phasing of $0.8bn structural cost reductions delivered in 2024 is indicative
Slide 20: Portfolio related reductions to 2027
50% of portfolio related reductions to 2027 are now underpinned by announced divestments. 16
Slide 21: Technology enabling productivity and cost reductions
Technology enabling productivity and cost reductions Improving capital productivity... Oil & gas operations Drilling & completions Production optimisation Well planning efficiency in and real-time monitoring Azerbaijan 5% 90% …and delivering cost reductions Increase in production1 Improvement in tim
Slide 22: Convenience and Mobility AI tools
- And in Convenience and Mobility, we are utilising AI and digital tools to drive efficiency in our marketing organisation. For example, we are now producing point of sale marketing materials in around 50% of time it used to take, thereby allowing greater speed to market and significantly reducing c
Slide 23: Guidance
Guidance 3Q25 vs 2Q251 Full year 20251 Reported upstream * production: Reported upstream Lower than 2024 – slightly lower production Customers: Underlying upstream Slightly lower than 2024, of which OPO broadly flat and – seasonally higher volumes production GLCE lower – fuels margins to remain sens
Slide 24: Divestment and other proceeds
- We continue to expect divestment and other proceeds to be around $3 to 4 billion with remaining proceeds weighted towards the fourth quarter of 2025. Before I hand back to Murray – and consistent with our continuing effort to improve guidance and enhance transparency – effective today, we are intr
Slide 25: Murray Auchincloss, Chief executive officer
Murray Auchincloss Chief executive officer 2Q 2025 financial results 19 19
Slide 26: Our primary targets
Our primary targets Adjusted free cash flow*growth Net debt* target >20% $14 – 18bn 1 CAGR from 2024–2027 by end 2027 Structural cost reduction* Group ROACE* $4 – 5bn >16% 1 by end 2027 by end 2027 (1) For price assumptions, see appendix 2Q 2025 financial results 20 Thanks Kate. To summarise, in the
Slide 27: Closing remarks
continuous business improvement across our operations. This is all in service of accelerating the delivery of our strategy. bp can and will do better for its investors. Thank you for listening. 20
Slide 28: Appendix
Appendix
Slide 29: Safety
Safety Process safety events (PSE) Tier 1* Tier 2* Safety goals – Maintain a consistent safety culture – Eliminate life changing injuries – Eliminate Tier 1 PSEs 2Q 2025 financial results 22
Slide 30: Adjusted free cash flow reconciliation
Adjusted free cash flow reconciliation Adjusted free cash flow* reconciliation Adjusted free cash flow $ billion Reported Reported Price adjusted 1H25 1H24 $7.0bn $6.9bn ~$7bn Net cash provided by 9.1 13.1 operating activities ~$5bn Exclude: working capital*1 build (4.7) (1.9) Adjusted operating cas
Slide 31: Enhancing guidance and disclosures – Refining Indicator Margin
Enhancing guidance and disclosures – Refining Indicator Margin Updating bp’s refining rule of thumb (RoT) Crude markers EU Brent 55% – Refining Marker Margin* (RMM) is being replaced with a portfolio US WCS 1 25% level Refining Indicator Margin* (bp RIM) ANS 10% WTI 10% – bp RIM has a better track r
Slide 32: Price assumptions
Price assumptions Rule-of-thumb 2025 impact Marker prices 2024 Actual 20241 2025 2026 2027 on underlying replacement cost profit before tax2 Brent ($/bbl) 80.8 70.0 71.5 72.9 74.4 – Oil price Brent +/- $1/bbl is ~$340m Henry Hub ($/mmbtu) 2.3 4.0 4.1 4.2 4.3 – Natural gas price Henry Hub +/- $0.10/m
Slide 33: Financial summary
Financial summary 1H25 1H24 Brent ($/bbl) 71.9 84.1 Henry Hub ($/mmbtu) 3.6 2.1 UK Gas - National Balancing Point (p/therm) 100.5 72.6 RMM* ($/bbl) 18.2 20.6 RIM* ($/bbl) 10.0 13.6 $ billon Underlying RCPBIT 9.7 11.4 Gas & low carbon energy 2.5 3.1 Oil production & operations 5.2 6.2 Customers & pro
Slide 34: Gas and low carbon energy
Gas and low carbon energy 2Q25 1Q25 2Q24 Underlying RCPBIT* $bn Production volume Liquids (mbd) 85 83 98 Natural gas (mmcfd) 4,043 3,950 4,648 Total hydrocarbons* (mboed) 782 764 899 Average realisations* Liquids ($/bbl) 64.15 70.74 79.92 Natural gas ($/mcf) 6.50 7.26 5.47 Total hydrocarbons ($/boe)
Slide 35: Oil production and operations
Oil production and operations 2Q25 1Q25 2Q24 Underlying RCPBIT* $bn Production volume Liquids (mbd) 1,115 1,086 1,085 Natural gas (mmcfd) 2,338 2,258 2,292 Total hydrocarbons* (mboed) 1,518 1,475 1,481 Average realisations* Liquids ($/bbl) 59.74 67.50 73.01 Natural gas ($/mcf) 3.66 4.74 2.02 Total h
Slide 36: Customer and products
Customer and products 2Q25 1Q25 2Q24 Underlying RCPBIT* $bn Customers – convenience & mobility ($bn) Customers – convenience & mobility adjusted EBITDA* 1.7 1.2 1.3 Castrol adjusted EBITDA1 0.3 0.3 0.3 Capital expenditure* 0.4 0.6 0.5 Marketing sales of refined products (mbd) 3,198 3,054 3,197 Produ
Slide 37: Glossary – abbreviations
Glossary – abbreviations ANS Alaskan North Slope. mboed Thousand barrels of oil equivalent per day. Barrel (bbl) 159 litres, 42 US gallons. MED Mediterranean. boe Barrels of oil equivalent. mmbtu Million British thermal units. CAGR Compound annual growth rate. mmcfd Million cubic feet per day. CCS C
Slide 38: Glossary – abbreviations
Glossary – abbreviations RC Replacement cost. RCOP Replacement cost operating profit. RFS Renewable fuel standard. RIM Refining Indicator Margin. RINs Renewable Identification Numbers. RMM Refining Marker Margin. RoT Rule of thumb. SCR Structural cost reduction. SVP Senior vice president. TSP Techni
Slide 39: Glossary
Glossary Adjusted EBITDA Is a non-IFRS measure presented for bp's operating segments and is Adjusted Non-IFRS measure. It is defined as net cash provided by (used in) defined as replacement cost (RC) profit before interest and tax, excluding operating cash operating activities as presented in the gr
Slide 40: Glossary
Glossary Capital Total cash capital expenditure as stated in the condensed group cash Fair value Non-IFRS adjustments to our IFRS profit (loss). They reflect the difference expenditure flow statement. Capital expenditure for the operating segments, gas & accounting between the way bp manages the eco
Slide 41: Glossary
Glossary Reflects the replacement cost of inventories sold in the period and is Realisations Result of dividing revenue generated from hydrocarbon sales, Replacement calculated as profit or loss attributable to bp shareholders, adjusting for excluding revenue generated from purchases made for resale
Slide 42: Glossary
Glossary Tier 1 and tier 2 Tier 1 events are losses of primary containment from a process of Underlying Non-IFRS measure. A subset of production and manufacturing process safety greatest consequence – causing harm to a member of the workforce, operating expenses plus distribution and administration
Slide 43: Glossary
Glossary Underlying RC For the operating segments or customers & products businesses is Upstream plant (bp-operated) is calculated taking 100% less the ratio of total profit or loss calculated as RC profit or loss (as defined above) including profit or loss reliability unplanned plant deferrals divi
Slide 44: Resources
Resources bp's website includes information Useful links Investor events about our financial performance, reports and information on investing – Why invest in bp 4 November 2025 Third quarter results in bp, dividend payments, AGM – Modelling guidance and strategy events. – Databook Find out more on