bp fourth quarter and full year 2024 results

Results presentation

Murray Auchincloss, chief executive officer and Kate Thomson, chief financial officer discuss our full year and 4Q 2024 financial results in the video below. 

They also hosted a live question and answer session (Q&A). 

Highlights

4Q24 underlying replacement cost (RC) profit* $1.2 billion

• Underlying RC profit for the quarter was $1.2 billion, compared with $2.3 billion for the previous quarter. Compared with the third quarter 2024, the underlying result reflects weaker realized refining margins, higher impact from turnaround activity, seasonally lower customer volumes and fuels margins and higher other businesses & corporate underlying charge. The underlying effective tax rate (ETR)* in the quarter was 49%.
• Reported loss for the quarter was $2.0 billion, compared with a profit of $0.2 billion for the third quarter 2024. The reported result for the fourth quarter is adjusted for inventory holding losses* of $21 million (pre-tax) and a net adverse impact of adjusting items* of $3.4 billion (pre-tax) to derive the underlying RC profit. Adjusting items pre-tax include net impairments of $1.5 billion (see Note 4) and adverse fair value accounting effects* of $1.0 billion. See page 27 for more information on adjusting items.

Segment results

• Gas & low carbon energy: The RC profit before interest and tax for the fourth quarter 2024 was $1.8 billion, compared with$1.0 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $0.1 billion, the underlying RC profit before interest and tax* for the fourth quarter was $2.0 billion, compared with $1.8 billion in the third quarter 2024. The fourth quarter underlying result before interest and tax is largely driven by higher realizations. The gas marketing and trading result was average.
• Oil production & operations: The RC profit before interest and tax for the fourth quarter 2024 was $2.6 billion, compared with $1.9 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $0.4 billion, the underlying RC profit before interest and tax for the fourth quarter was $2.9 billion, compared with $2.8 billion in the third quarter 2024. The fourth quarter underlying result before interest and tax reflects lower exploration write-offs, partly offset by lower realizations and volumes.
• Customers & products: The RC loss before interest and tax for the fourth quarter 2024 was $2.4 billion, compared with a profit of $23 million for the previous quarter. After adjusting RC loss before interest and tax for a net adverse impact of adjusting items of $2.1 billion, the underlying RC loss or profit before interest and tax (underlying result) for the fourth quarter was a loss of $0.3 billion, compared with a profit of $0.4 billion in the third quarter 2024. The customers fourth quarter underlying result was lower by $0.4 billion, reflecting lower fuels margins, seasonally lower volumes and adverse foreign exchange impacts. The products fourth quarter underlying result was lower by $0.3 billion, mainly reflecting weaker realized refining margins and a higher impact from turnaround activity. The oil trading contribution was weak.

Operating cash flow* $7.4 billion and net debt* $23.0 billion

• Operating cash flow of $7.4 billion, which includes a working capital* release of $1.3 billion (after adjusting for inventory holding losses, fair value accounting effects and other adjusting items), was around $0.7 billion higher than the previous quarter, reflecting lower cash taxes paid and timing of provision settlements, partly offset by lower underlying earnings. Net debt reduced to $23.0 billion compared to the third quarter, primarily driven by the impact of proceeds from divestments of around $2.8 billion, the issuance of perpetual hybrid bonds of $2.6 billion and acquired net debt of around $3.0 billion from the completion of the bp Bunge Bioenergia and Lightsource bp transactions.

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 fourth quarter, bp has announced a dividend per ordinary share of 8 cents.
• bp is committed to maintaining a strong balance sheet and strong investment grade credit rating. Through the cycle, we are targeting to further improve our credit metrics within an 'A' grade credit range.
• bp continues to invest with discipline and a returns focused approach in our transition growth* engines and in our oil, gas and refining businesses.
• The $1.75 billion share buyback programme announced with the third quarter results was completed on 7 February 2025. Related to the fourth quarter results, bp intends to execute a $1.75 billion share buyback prior to reporting the first quarter results. As part of our capital markets update scheduled for 26 February we intend to review elements of our financial guidance, including our expectations for 2025 share buybacks and capital expenditure*.
• 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 maintaining a strong investment grade credit rating.