Performing while transforming
| $ million |
Second quarter 2022 | First quarter 2022 | Second quarter 2021 | First half 2022 | First half 2021 |
|---|---|---|---|---|---|
| Profit (loss) for the period attributable to bp shareholders | 9,257 | (20,384) | 3,116 | (11,127) | 7,783 |
| Inventory holding (gains) losses*, net of tax | (1,607) | (2,664) | (736) | (4,271) | (2,078) |
| Replacement cost (RC) profit (loss)* | 7,650 | (23,048) | 2,380 | (15,398) | 5,705 |
| Net (favourable) adverse impact of adjusting items*, net of tax | 801 | 29,293 | 418 | 30,094 | (277) |
| Underlying RC profit* | 8,451 | 6,245 | 2,798 | 14,696 | 5,428 |
| Operating cash flow* | 10,863 | 8,210 | 5,411 | 19,073 | 11,520 |
| Capital expenditure* | (2,838) | (2,929) | (2,514) | (5,767) | (6,312) |
| Divestment and other proceeds(b) | 722 | 1,181 | 215 | 1,903 | 5,054 |
| Surplus cash flow* | 6,590 | 4,089 | 695 | 10,679 | 2,382 |
| Net issue (repurchase) of shares(c) | (2,288) | (1,592) | (500) | (3,880) | (500) |
| Net debt*(d) | 22,816 | 27,457 | 32,706 | 22,816 | 32,706 |
| Announced dividend per ordinary share (cents per share) | 6.006 | 5.460 | 5.460 | 11.466 | 10.710 |
| Underlying RC profit per ordinary share* (cents) | 43.58 | 32.00 | 13.80 | 75.55 | 26.75 |
| Underlying RC profit per ADS* (dollars) | 2.61 | 1.92 | 0.83 | 4.53 | 1.61 |
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 contains certain forecasts, projections and forward-looking statements - that is, statements related to future, not past events and circumstances - with respect to the financial condition, results of operations and businesses of bp and certain of the plans and objectives of bp with respect to these items. These statements may generally, but not always, be identified by the use of words such as ‘will’, ‘expects’, ‘is expected to’, ‘aims’, ‘should’, ‘may’, ‘objective’, ‘is likely to’, ‘intends’, ‘believes’, ‘anticipates’, ‘plans’, ‘we see’ or similar expressions. In particular, the following, among other statements, are all forward looking in nature: expectations regarding the conflict in Ukraine and inflationary pressures, including the impacts and consequences on demand; plans, expectations and assumptions regarding oil and gas demand, supply, prices or volatility and storage levels; expectations regarding major project ramp-up, divestment and maintenance activity; expectations regarding refining margins and product demand; expectations regarding implementation of bp’s strategy, bp’s business, financial performance, results of operations, cash flows, liquidity, prospects, shareholder value and returns and reputation; expectations regarding future hydrocarbon production and project ramp-up; expectations regarding future project start-ups; expectations with regards to bp’s transformation to an IEC; expectations regarding price assumptions used in accounting estimates; bp’s plans and expectations regarding the amount and timing of share buybacks and quarterly and interim dividends; plans and expectations regarding bp’s credit rating, including in respect of maintaining a strong investment grade credit rating; plans and expectations regarding the allocation of surplus cash flow to share buybacks and strengthening the balance sheet; plans and expectations regarding bp’s exit of its shareholding in Rosneft and other investments in Russia; plans and expectations with respect to the total depreciation, depletion and amortization and other businesses & corporate underlying annual charge for 2022; plans and expectations regarding investments in the UK, including in charging infrastructure; plans and expectations regarding the divestment programme, including the amount and timing of proceeds; plans and expectations regarding bp’s renewable energy and alternative energy businesses; expectations regarding the UK government’s new levy on the profits of UK oil and gas companies; expectations regarding the underlying effective tax rate for 2022; expectations regarding the timing and amount of future payments relating to the Gulf of Mexico oil spill; expectations regarding the impact of the recent outage at Freeport LNG; plans and expectations regarding bp’s defined benefit pension plans; plans and expectations regarding capital expenditure, including that capital expenditure will be within a range of $14-15 billion in 2022; plans and expectations regarding projects, joint ventures and other partnerships and agreements, including partnerships and other collaborations with Iberdrola, Eni, Korea Gas Corporation, ADNOC, Masdar, Marubeni, HyCC, Shenzhen Huize New Energy Co. Ltd, Julius Stiglechner GmbH, Submer, and AENA, as well as plans and expectations regarding the operation of China’s largest fast EV charging hub, the Herschel Expansion project in the Gulf of Mexico, the Gas Natural Acu power plant in Brazil, the Asian Renewable Energy Hub in Western Australia, submission of bids for offshore wind leases in the Netherlands, the sale of its interest in the Sunrise oil sands project, the acquisition of an interest in the Bay du Nord project, the building of a hydrogen refuelling station at the bp truckstop in Queensland, the development of EV charge points and the HyGreen Teesside green hydrogen project.
By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will or may occur in the future and are outside the control of bp.
Actual results or outcomes, may differ materially from those expressed in such statements, depending on a variety of factors, including: the extent and duration of the impact of current market conditions including the volatility of oil prices, the effects of bp’s plan to exit its shareholding in Rosneft and other investments in Russia, the impact of COVID-19, overall global economic and business conditions impacting bp’s business and demand for bp’s products as well as the specific factors identified in the discussions accompanying such forward-looking statements; changes in consumer preferences and societal expectations; the pace of development and adoption of alternative energy solutions; developments in policy, law, regulation, technology and markets, including societal and investor sentiment related to the issue of climate change; the receipt of relevant third party and/or regulatory approvals; the timing and level of maintenance and/or turnaround activity; the timing and volume of refinery additions and outages; the timing of bringing new fields onstream; the timing, quantum and nature of certain acquisitions and divestments; future levels of industry product supply, demand and pricing, including supply growth in North America and continued base oil and additive supply shortages; OPEC+ quota restrictions; PSA and TSC effects; operational and safety problems; potential lapses in product quality; economic and financial market conditions generally or in various countries and regions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations and policies, including related to climate change; changes in social attitudes and customer preferences; regulatory or legal actions including the types of enforcement action pursued and the nature of remedies sought or imposed; the actions of prosecutors, regulatory authorities and courts; delays in the processes for resolving claims; amounts ultimately payable and timing of payments relating to the Gulf of Mexico oil spill; exchange rate fluctuations; development and use of new technology; recruitment and retention of a skilled workforce; the success or otherwise of partnering; the actions of competitors, trading partners, contractors, subcontractors, creditors, rating agencies and others; bp’s access to future credit resources; business disruption and crisis management; the impact on bp’s reputation of ethical misconduct and non-compliance with regulatory obligations; trading losses; major uninsured losses; the possibility that international sanctions or other steps taken by governmental authorities or any other relevant persons may impact Rosneft’s business or outlook, bp’s ability to sell its interests in Rosneft, or the price for which bp could sell such interests; the possibility that actions of any competent authorities or any other relevant persons may limit bp’s ability to sell its interests in Rosneft, or the price for which it could sell such interests; the actions of contractors; natural disasters and adverse weather conditions; changes in public expectations and other changes to business conditions; wars and acts of terrorism; cyber-attacks or sabotage; and other factors discussed elsewhere in this report, as well as those factors discussed under “Risk factors” in bp’s Annual Report and Form 20-F 2021 as filed with the US Securities and Exchange Commission.