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 11 October, 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|
---------------
--------------
|
Exhibit
1.1
|
3Q24 bp
Trading Statement part 1 of 1 dated 11 October 2024
|
Exhibit 1.1
|
FOR IMMEDIATE RELEASE
|
|
|
London 11 October 2024
|
|
|
BP p.l.c. Trading Statement
|
Third quarter 2024 trading statement
The following Trading Statement provides a summary of BP p.l.c.'s
(bp) current estimates and expectations for the third 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 third quarter 2024 and is not
an estimate of those results. Also refer to bp's second quarter and
first half 2024 group results announcement on 30 July 2024 for
third quarter and full year 2024 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 third quarter 2024 are expected to be
published on 29 October 2024.
Updated 3Q24 guidancea
●
Upstream productionb in
the third quarter is now expected to be broadly flat compared to
the prior quarter, with production broadly flat in oil production
& operations and in gas & low carbon
energy.
●
In the gas & low carbon energy segment,
realizationsc,
compared to the prior quarter, are expected to have a favourable
impact of around $0.1 billion, including changes in non-Henry Hub
natural gas marker prices. The gas marketing and trading result is
expected to be average.
●
In the oil production & operations segment,
realizationsc,
compared to the prior quarter, are expected to have an unfavourable
impact in the range of $0.1 - 0.3 billion, including the impact of
price lags on bp's production in the Gulf of Mexico and the UAE.
There is also expected to be an unfavourable impact in the range of
$0.2 - 0.3 billion, compared to the prior quarter, as a result of
higher exploration write-offs.
●
In
the customers and products segment, compared to the prior quarter,
results are expected to be impacted by the following
factors:
o
customers - broadly flat fuels margins, seasonally
higher volumes partly offset by costs.
o
products - weaker realized refining margins in the
range of $0.4 - 0.6 billion and the oil trading result is expected
to be weak.
●
Other
items: Net debt at the end of the quarter is now expected to be
higher, driven primarily by the impact of weaker realized refining
margins and by the rephasing of around $1 billion of divestment
proceeds into the fourth quarter.
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 $80.34/bbl in the third quarter 2024 compared to
$84.97/bbl in the second quarter 2024.
US gas Henry Hub first of month index averaged $2.15/mmBtu in the
third quarter 2024 compared to $1.89/mmBtu in the second quarter
2024.
The bp RMM* averaged $16.5/bbl in the third quarter 2024 compared
to $20.6/bbl in the second quarter 2024.
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 20-F 2023 and under "Principal risks and uncertainties" in
bp's Report on Form 6-K for the three months and six months ended
30 June 2024, each 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 third quarter of 2024 that
are not currently known or fully understood. Neither bp 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 11 October 2024
|
|
|
BP p.l.c. Trading Statement
|
Appendix: Guidance
issued in 2Q24 Stock Exchange Announcementa
|
Guidance Area
|
Full Year 2024
|
3Q24 vs 2Q24
|
|
Reported and underlying* upstream production
|
Slightly higher than 2023, of which Oil production & operations
higher and Gas & low carbon energy lower
|
● lower,
including in higher margin regions.
|
|
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
|
● fuels
margins to remain sensitive to movements in cost of
supply
● expect
seasonally higher volumes
|
|
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
|
● realized
refining margins to continue to be sensitive to relative movements
in product cracks and North American heavy crude
differentials
● similar
level of turnaround activity
|
|
Income taxes paid
|
|
● expected
to be around $1bn higher mainly due to the timing of installment
payments, which are typically higher in the third quarter each
year
|
|
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, split broadly evenly between the first and second
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 second quarter and first half 2024 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 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.
|
|
BP
p.l.c.
|
|
|
(Registrant)
|
|
|
|
|
Dated: 11
October 2024
|
|
|
|
/s/ Ben
J. S. Mathews
|
|
|
------------------------
|
|
|
Ben J.
S. Mathews
|
|
|
Company
Secretary
|