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 14 January, 2025
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
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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
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Exhibit
1.1
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4Q24 bp
Trading Statement Part 1 of 1 dated 14 January 2025
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Exhibit 1.1
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FOR IMMEDIATE RELEASE
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London
14 January 2025
BP p.l.c. Trading Statement
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Fourth quarter 2024 trading statement
The following Trading Statement provides a summary of BP p.l.c.'s
(bp) current estimates and expectations for the fourth 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 fourth quarter 2024 and is
not an estimate of those results. Also refer to bp's third quarter
and nine months 2024 group results announcement on 29 October 2024
for fourth 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.
Murray Auchincloss has recently undergone a planned medical
procedure from which he is recovering well. He will be back in the
office by February. To ensure his full recuperation the capital
markets event previously scheduled for 11 February in New York will
now take place on 26 February in London. The fourth quarter and
full year 2024 results date is unchanged and they are expected to
be published at 0700 GMT on 11 February.
Updated 4Q24 guidancea
●
Upstream productionb in
the fourth quarter is expected to be lower compared to the prior
quarter, with production lower 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 in the range of $0.1 - 0.2 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 $0.2 - 0.4 billion, including the impact of
price lags on bp's production in the Gulf of Mexico and the UAE.
Compared to the prior quarter, exploration write-offs are expected
to be $0.1 - 0.2 billion lower.
●
In
the customers & products segment, compared to the prior
quarter, results are expected to be impacted by the following
factors:
o
customers - seasonally lower volumes, lower fuels
margins, foreign exchange losses, and a one-off inventory purchase
price adjustment relating to our bio-ethanol
acquisition.
o
products - weaker realized refining margins in the
range of $0.1 - 0.3 billion and a higher impact from turnaround
activity. The oil trading result is expected to be
weak.
●
Other
items:
o
Net
debt at the end of the quarter is expected to be lower compared the
prior quarter, including proceeds from divestments of around $2.8
billion, the issuance of around $2.5 billion perpetual hybrid bonds
primarily in anticipation of refinancing perpetual hybrid bonds
callable from June 2025 and/or March 2026, and acquired net debt of
around $3.0 billion from the completion of the bp Bunge Bioenergia
and Lightsource bp transactions.
o
The
fourth quarter results are expected to include non-cash, post-tax
charges related to impairments of $1.0 - 2.0 billion attributable
across the segments. These items are treated as adjusting items and
excluded from underlying replacement cost profit.
Updated FY24 guidancea
●
The
underlying effective tax rate for the full year is now expected to
be around 42% compared to the previous guidance of around 40%
primarily due to changes in the geographical mix of
profits.
●
bp now expects other businesses & corporate underlying annual
charge to be around $0.6 billion for 2024 compared to the previous
range of $0.3 - 0.4 billion due to foreign exchange
losses.
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 $74.73/bbl in the fourth quarter 2024 compared to
$80.34/bbl in the third quarter 2024.
US
gas Henry Hub first of month index averaged $2.79/mmBtu in the
fourth quarter 2024 compared to $2.15/mmBtu in the third quarter
2024.
The
bp RMM* averaged $13.1/bbl in the fourth quarter 2024 compared to
$16.5/bbl in the third 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 fourth quarter and full year
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.
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FOR IMMEDIATE RELEASE
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London 14 January 2025
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BP p.l.c. Trading Statement
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Appendix: Guidance
issued in 3Q24 Stock Exchange Announcementa
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Guidance Area
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Full Year 2024
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4Q24 vs 3Q24
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Reported and underlying* upstream production
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Slightly higher than 2023, of which Oil production & operations
higher and Gas & low carbon energy lower
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●
lower
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Customers
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Growth from convenience, including a full year contribution from
TravelCenters of America; stronger Castrol, bp pulse margin growth;
fuels margins to remain sensitive to movements in cost of
supply
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seasonally lower volumes
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fuels margins to remain sensitive to movements in the cost of
supply
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Products
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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, with the highest impact in the fourth
quarter
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●
realized refining margins to remain low in the fourth quarter,
albeit to continue to remain sensitive to relative movements in
product cracks
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OB&C
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Around $0.3-0.4bn charge
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DD&A
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Slightly higher than 2023
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Underlying effective tax rate*b
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Expected to be around 40%
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Capital expenditure*
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Around $16bn
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Divestment and other proceeds
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Greater than $3bn
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bp Bunge Bioenergia and Lightsource bp transaction
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Full earnings from both companies will be included in bp's results
from the date the transactions complete and finance debt acquired
is expected to be approximately $3.7 billion.
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Gulf of Mexico oil spill payments
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~$1.2bn pre-tax, of which $1.1bn 2Q
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a
Refer to bp's third quarter and nine
months 2024 group results announcement and bp.com for full
text.
b
Underlying effective tax rate is
sensitive to a range of factors, including the volatility of the
price environment and its impact on the geographical mix of the
group's profits and losses.
*
See Glossary.
Contacts
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London
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Houston
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Press Office
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David Nicholas
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Paul Takahashi
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+44 (0) 7831 095541
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+1 713 903 9729
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Investor Relations
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Craig Marshall
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Graham Collins
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bp.com/investors
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+44 (0) 203 401 5592
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+1 832 753 5116
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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.
bp believes that underlying RC profit or loss is a useful measure
for investors because it is a measure closely tracked by management
to evaluate bp's operating performance and to make financial,
strategic and operating decisions and because it 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, by adjusting for the effects of these
adjusting items. The nearest equivalent measure on an IFRS basis
for the group is profit or loss attributable to bp shareholders.
The nearest equivalent measure on an IFRS basis for segments and
businesses is RC profit or loss before interest and
taxation.
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.
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BP
p.l.c.
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(Registrant)
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Dated: 14
January 2025
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/s/ Ben
J. S. Mathews
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Ben J.
S. Mathews
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Company
Secretary
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