6-K
1
a7525j.htm
1Q24 TRADING STATEMENT PART 1 OF 1
a7525j
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
for the
period ended 09 April, 2024
BP p.l.c.
(Translation
of registrant's name into English)
1 ST JAMES'S SQUARE, LONDON, SW1Y 4PD, ENGLAND
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file
annual
reports
under cover Form 20-F or Form 40-F.
Form
20-F |X| Form 40-F
---------------
----------------
Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of
1934.
Yes No
|X|
---------------
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FOR IMMEDIATE RELEASE
London 9 April 2024
BP p.l.c. Trading Statement
First quarter 2024 trading statement
The following Trading Statement provides a summary of BP p.l.c.'s
(bp) current estimates and expectations for the first quarter of
2024, including data on the economic environment as well as group
performance during the period.
The information presented is not comprehensive of all factors which
may impact bp's group results for the first quarter 2024 and is not
an estimate of those results. Also refer to bp's fourth quarter and
full year 2023 group results announcement on 6 February 2024 for
guidance items which continue to apply unless explicitly stated. A
summary of that guidance is also provided in the Appendix to this
Trading Statement. All information provided is subject to the
finalization of bp's financial reporting processes and actual
results may vary.
bp's group results for the first quarter 2024 are expected to be
published on 7 May 2024.
Updated 1Q24 guidancea
● Upstream
productionb in
the first quarter is expected to be higher compared to the prior
quarter, with production higher in oil production &
operations and slightly higher in gas & low carbon
energy.
● In the
gas & low carbon energy segment,
realizationsc compared
to the prior quarter are expected to have an adverse impact in the
range of $0.2-0.4 billion, including declines in non-Henry Hub
natural gas marker prices. There is also expected to be an adverse
impact of around $0.2 billion as a result of the devaluation of the
Egyptian Pound. In addition, the gas marketing and trading
result is expected to be strong following a strong result in the
fourth quarter 2023.
● In the
oil production & operations segment,
realizationsc compared
to the prior quarter are expected to have an adverse impact in the
range of $0.3-0.6 billion, including price lags on bp's production
in the Gulf of Mexico and the UAE and also declines in non-Henry
Hub natural gas marker prices.
● The
customers and products segment, compared to the prior quarter, is
expected to be impacted by the following factors: in products,
improving realized refining margins, expected to result in a
benefit in the range of $0.1-0.2 billion; a significantly lower
level of turnaround activity than the prior quarter, offset by the
impacts of the 1 February plant-wide power outage at the Whiting
refinery which, after a phased start-up, resumed normal operations
on 15 March; the oil trading result is expected to be strong
following a weak result in the fourth quarter 2023; and in
customers, significantly weaker fuel margins, seasonally lower
volumes, and the absence of one-off positive effects that impacted
the prior quarter.
● Other
items: Net debt is expected to increase in the first quarter mainly
reflecting a working capital build plus phasing of capex and
divestment and other proceeds as previously guided.
a All
impacts influence bp's underlying RC profit before interest and
tax, unless stated otherwise.
b Includes
bp's share of production of equity-accounted
entities.
c Realizations
are based on sales by consolidated subsidiaries only - this
excludes equity-accounted entities.
Trading conditions
Brent averaged $83.16/bbl in the first quarter 2024 compared to
$84.34/bbl in the fourth quarter 2023.
US gas Henry Hub first of month index averaged $2.25/mmBtu in
the first quarter compared to $2.88/mmBtu in the fourth quarter
2023.
The bp average refining marker margin averaged $20.6/bbl in the
first quarter compared to $18.5/bbl in the fourth quarter
2023.
Further information on prices and bp's current rules of thumb can
be found at the following link: bp.com
Rules of Thumb
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 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. 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 (without limitation): price
fluctuations in crude oil and natural gas; changes in demand for
bp's products; currency fluctuations; drilling and production
results; reserves estimates; sales volume and sales mix numbers;
supply and demand imbalances including as a result of direct or
indirect restrictions on production; regional pricing differentials
and refining margins; seasonal impacts on product demand and
operating expenses; resolution of trading and derivative positions
for the quarter; 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; 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 as well as those
factors discussed under "Risk factors" in bp's Annual Report and
Form-20F 2023 as filed with the US Securities and Exchange
Commission. Furthermore, additional factors may exist that will be
relevant to bp's group results for the first quarter of 2024 that
are not currently known or fully understood. Neither BP plc nor any
of its subsidiaries assumes any obligation to update, revise or
supplement any forward-looking statement contained in this
announcement to reflect future circumstances, events or
information.
The contents of websites referred to in this announcement do not
form part of this announcement.
FOR IMMEDIATE RELEASE
London 9 April 2024
BP p.l.c. Trading Statement
Appendix: Guidance
issued in 4Q23 Stock Exchange Announcementa
Guidance Area
Full Year 2024
1Q24 vs 4Q23
Reported and underlying* upstream production
Slightly higher than 2023, of which Oil production & operations
higher and Gas & low carbon energy lower
●
expected to be higher
Customers
Growth from convenience, including TravelCenters of America;
stronger Castrol, bp pulse margin growth; fuels margins to remain
sensitive to movements in cost of supply
●
expect seasonally lower volumes across most businesses
●
absence of fourth quarter one-off positive effects
●
fuels margins to remain sensitive to movements in cost of
supply
Products
Lower level of industry refining margins, with realized margins
impacted by narrower North American heavy crude oil differentials;
turnaround activity broadly in line with 2023 but heavily weighted
towards the second half
●
significantly lower levels of refinery turnaround
activity
●
lower industry refining margins with a larger reduction in realized
margins due to narrower North American heavy crude oil
differentials
OB&C
Around $1.0bn charge; quarterly charges may vary
DD&A
Slightly higher than 2023
Underlying effective tax rate*b
Expected to be around 40%
Capital expenditure*
Around $16bn, weighted to the first half
Divestment and other proceeds
$2-3bn, weighted to the second half
Gulf of Mexico oil spill payments
~$1.2bn pre-tax, of which $1.1bn 2Q
a Refer
to bp's fourth quarter and full year 2023 group results
announcement and bp.com for full text.
b Underlying
effective tax rate is sensitive to the impact that volatility in
the current price environment may have on the geographical mix of
the group's profits and losses.
*
See Glossary.
Contacts
London
Houston
Press Office
David Nicholas
Paul Takahashi
+44 (0) 7831 095541
+1 713 903 9729
Investor Relations
Craig Marshall
Graham Collins
bp.com/investors
+44 (0) 203 401 5592
+1 832 753 5116
Glossary
Underlying production - 2024 underlying production,
when compared with 2023, is production after adjusting for
acquisitions and divestments, curtailments, and entitlement impacts
in our production-sharing agreements/contracts and technical
service contract*.
Underlying RC profit or loss before interest and
tax for the operating segments or
customers & products businesses is calculated as RC profit or
loss (as defined above) including profit or loss attributable to
non-controlling interests before interest and tax for the operating
segments and excluding net adjusting items for the respective
operating segment or business.
Underlying effective tax rate (ETR) is a non-IFRS measure. The
underlying ETR is calculated by dividing taxation on an underlying
replacement cost (RC) basis by underlying RC profit or loss before
tax. Taxation on an underlying RC basis for the group is calculated
as taxation as stated on the group income statement adjusted for
taxation on inventory holding gains and losses and total taxation
on adjusting items. Information on underlying RC profit or loss is
provided below. Taxation on an underlying RC basis presented for
the operating segments is calculated through an allocation of
taxation on an underlying RC basis to each segment. bp believes it
is helpful to disclose the underlying ETR because this measure may
help investors to understand and evaluate, in the same manner as
management, the underlying trends in bp's operational performance
on a comparable basis, period on period. Taxation on an underlying
RC basis and underlying ETR are non-IFRS measures. The nearest
equivalent measure on an IFRS basis is the ETR on profit or loss
for the period.
Capital expenditure is total cash capital expenditure
as stated in the condensed group cash flow statement. Capital
expenditure for the operating segments, gas & low carbon energy
businesses and customers & products businesses is presented on
the same basis.
Technical service contract (TSC) - Technical service contract is
an arrangement through which an oil and gas company bears the risks
and costs of exploration, development and production. In return,
the oil and gas company receives entitlement to variable physical
volumes of hydrocarbons, representing recovery of the costs
incurred and a profit margin which reflects incremental production
added to the oilfield.
BP p.l.c.'s LEI Code 213800LH1BZH3D16G760
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
