Form 6-K BP PLC For: Feb 07
Tweet
Share
E-mailGet inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.
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 07 February,
2023
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
|
4Q22
Part 1 of 1 dated 07 February 2023
|
Exhibit 1.1
Top of page 1
|
FOR IMMEDIATE RELEASE
|
|
|
London 7 February 2023
|
|
|
BP p.l.c. Group results
|
|
|
Fourth quarter and full year 2022
|
"For a printer friendly version of this announcement please click
on the link below to open a PDF version of the
announcement"
http://www.rns-pdf.londonstockexchange.com/rns/0874P_1-2023-2-6.pdf
|
Performing while transforming
|
|
Financial summary
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Profit (loss) for the period attributable to bp
shareholders
|
|
10,803
|
(2,163)
|
2,326
|
|
(2,487)
|
7,565
|
|
Inventory holding (gains) losses*, net of tax
|
|
1,066
|
2,186
|
(358)
|
|
(1,019)
|
(2,826)
|
|
Replacement cost (RC) profit (loss)*
|
|
11,869
|
23
|
1,968
|
|
(3,506)
|
4,739
|
|
Net (favourable) adverse impact of adjusting items*, net of
tax
|
|
(7,062)
|
8,127
|
2,097
|
|
31,159
|
8,076
|
|
Underlying RC profit*
|
|
4,807
|
8,150
|
4,065
|
|
27,653
|
12,815
|
|
Operating cash flow*
|
|
13,571
|
8,288
|
6,116
|
|
40,932
|
23,612
|
|
Capital expenditure*
|
|
(7,369)
|
(3,194)
|
(3,633)
|
|
(16,330)
|
(12,848)
|
|
Divestment and other proceeds(a)
|
|
614
|
606
|
2,265
|
|
3,123
|
7,632
|
|
Surplus cash flow*
|
|
5,080
|
3,530
|
2,993
|
|
19,289
|
6,308
|
|
Net issue (repurchase) of shares(b)
|
|
(3,240)
|
(2,876)
|
(1,725)
|
|
(9,996)
|
(3,151)
|
|
Net debt*(c)
|
|
21,422
|
22,002
|
30,613
|
|
21,422
|
30,613
|
|
Return on average capital employed (ROACE)* (%)
|
|
|
|
|
|
30.5%
|
13.3%
|
|
Adjusted
earnings before interest, taxation, depreciation and amortization
(adjusted EBITDA)*
|
|
|
|
|
|
60,747
|
37,315
|
|
Adjusted
earnings before interest, depreciation and amortization (adjusted
EBIDA)*
|
|
|
|
|
|
45,695
|
30,783
|
|
Announced dividend per ordinary share (cents per
share)
|
|
6.610
|
6.006
|
5.460
|
|
24.082
|
21.630
|
|
Underlying RC profit per ordinary share* (cents)
|
|
26.44
|
43.15
|
20.53
|
|
145.63
|
63.65
|
|
Underlying RC profit per ADS* (dollars)
|
|
1.59
|
2.59
|
1.23
|
|
8.74
|
3.82
|
|
● Net debt reduced to $21.4bn; 2022 ROACE 30.5%
|
|
● 10% increase in resilient dividend to 6.61 cents per
ordinary share; further $2.75bn share buyback
announced
|
|
● Delivering resilient hydrocarbons - Cassia C start-up;
first LNG cargo loaded at Coral Sul FLNG; 20-year extension to
Tangguh PSC*
|
|
● Continued progress in transformation to an IEC -
accelerating biogas strategy with completion of Archaea Energy
acquisition; >65% increase in EV charge points in
2022
|
|
Throughout 2022, bp continued to focus on delivery of our
Integrated Energy Company strategy. We are helping provide the
energy the world needs today and - at the same time - investing
with discipline into our transition and the energy transition - as
demonstrated by the Archaea Energy acquisition. We are
strengthening bp, with our strongest upstream plant reliability on
record and our lowest production costs in 16 years, helping to
generate strong returns and reducing debt for the 11th quarter in a
row. Importantly, we are delivering for our shareholders - with
buybacks and a growing dividend. This is exactly what we said we
would do and will continue to do - performing while
transforming.
|
|
|
|
Bernard Looney
Chief executive officer
|
|
|
(a)
Divestment proceeds are disposal proceeds as per the condensed
group cash flow statement. See page 3 for more
information on divestment and other proceeds.
(b)
Full year 2022 excludes the ordinary shares issued as non-cash
consideration for the acquisition of the public units of BP
Midstream Partners LP. See Note 8 for more
information.
(c)
See Note 10 for more information.
RC profit (loss), underlying RC profit (loss), surplus cash flow,
net debt, ROACE, adjusted EBITDA, adjusted EBIDA, underlying RC
profit per ordinary share and underlying RC profit per ADS are
non-GAAP measures. Inventory holding (gains) losses and adjusting
items are non-GAAP adjustments.
* For items marked with an asterisk throughout this document,
definitions are provided in the Glossary on page
36.
Top
of page 2
|
Highlights
|
|
|
Underlying replacement cost profit* $4.8 billion
|
|
|
●
Underlying replacement cost profit for the quarter was $4.8
billion, compared with $8.2 billion for the previous quarter.
Compared to the third quarter, the result was impacted by a below
average gas marketing and trading result after the exceptional
result in the third quarter, lower oil and gas realizations, a
higher level of refinery turnaround and maintenance activity, and
lower marketing margins and seasonally lower volumes. An underlying
ETR* of 40% in the fourth quarter brings the full year
underlying ETR* to 34%.
●
Reported profit for the quarter was $10.8 billion, compared
with a loss of $2.2 billion for the third quarter 2022. The
reported result for the fourth quarter is adjusted by inventory
holding losses net of tax of $1.1 billion and a gain for
adjusting items* net of tax of $7.1 billion to derive the
underlying replacement cost profit. Adjusting items include
favourable fair value accounting effects* of $13.2 billion before
tax, primarily due to a decrease in forward gas prices compared to
the end of the third quarter.
|
|
|
Net debt* reduced to $21.4 billion; further $2.75 billion
share buyback announced
|
|
|
●
Operating cash flow* in the quarter was $13.6
billion including a working capital release (after adjusting
for inventory holding losses*, fair value accounting effects and
other adjusting items) of $4.2 billion (see page
31).
●
Capital expenditure* in the fourth quarter and full year
was $7.4 billion and $16.3
billion respectively. Within this, inorganic spend was $3.5
billion in the fourth quarter and full year, including $3.0 billion
for Archaea Energy, net of adjustments, and $0.5 billion for the
earlier than expected completion of the acquisition of EDF Energy
Services.
●
During the fourth quarter, bp completed share buybacks of $3.2
billion. The $2.5 billion share buyback programme announced with
the third quarter results was completed on 3 February
2023.
●
In the fourth quarter, bp generated surplus cash flow* of $5.1
billion and intends to execute a $2.75 billion share buyback
from surplus cash flow prior to announcing its first-quarter-2023
results. bp has now announced share buybacks from surplus cash flow
equivalent to 60% of cumulative surplus cash flow since the start
of 2021.
●
Net debt fell for the eleventh successive quarter to
reach $21.4 billion at the end of the fourth
quarter.
|
|
|
Growing distributions; updating disciplined financial
frame
|
|
|
●
A resilient dividend remains bp's first priority within its
disciplined financial frame. It is underpinned by a cash balance
point* of $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 6.610 cents an increase of around 10%. This
increase is underpinned by strong underlying performance and
supported by the confidence we have in delivering higher adjusted
EBITDA* as a result of our updated investment plans.
●
bp is committed to maintaining a strong investment grade credit
rating, targeting further progress within an 'A' grade credit
rating. For 2023 bp intends to allocate 40% of surplus cash flow to
further strengthening the balance sheet.
●
bp continues to focus on disciplined investment allocation. For
2023 bp expects capital expenditure of $16-18 billion and for
2024-30 now expects capital expenditure in a range of $14-18
billion including inorganic capital expenditure*.
●
For 2023 and subject to maintaining a strong investment grade
credit rating, bp remains committed to using 60% of surplus cash
flow for share buybacks.
●
Based on bp's current forecasts, at around $60 per barrel Brent and
subject to the board's discretion each quarter, bp expects to be
able to deliver share buybacks of around $4.0 billion per annum, at
the lower end of its capital expenditure range, and have capacity
for an annual increase in the dividend per ordinary share of around
4%.
|
|
|
Continued progress in transformation to an Integrated Energy
Company
|
|
|
●
In a separate
announcement,
bp has today provided an update on the significant progress made in
executing its transformation to an Integrated Energy Company (IEC)
since outlining its new strategy.
●
In resilient hydrocarbons bp has accelerated its biogas strategy -
part of its bioenergy Transition Growth Engine - completing the
acquisition of Archaea Energy a leading US biogas company.
Delivering on its focus on cost and efficiency, in 2022 bp
delivered its lowest upstream unit production cost* since 2006 and
highest upstream plant reliability* on record.
● In convenience and
mobility bp continues to make strategic progress, announcing an
exclusive agreement in the UK with Marks and Spencer (M&S) to
install fast(a) charge
points to around 70 of their stores, adding up to 900 charge points
within the next two years; and increasing the number of EV charge
points by over 65% versus 2021.
●
In low carbon energy bp has continued to make rapid progress
building its portfolio of green hydrogen* projects, signing
memoranda of understanding (MoUs) with both Mauritania and Egypt to
explore the potential for large scale green hydrogen
developments.
|
|
|
During 2022 bp delivered four quarters of robust underlying
financial performance. We have raised our dividend by 21% since 4Q
2021, reduced net debt by $9.2 billion, invested with discipline
and announced $11.25 billion of share buybacks. As we look to 2023,
we remain focused on the disciplined delivery of our financial
frame, with its five priorities, underpinned by a $40/bbl balance
point, unchanged.
|
|
Murray Auchincloss
Chief financial officer
|
|
|
(a)
"fast charging" includes rapid charging ≥50kW and ultra-fast
charging ≥150kW.
|
The commentary above contains forward-looking statements and should
be read in conjunction with the cautionary statement on page
42.
|
Top of page 3
Financial results
At 31 December 2021, the group's reportable segments were gas &
low carbon energy, oil production & operations, customers &
products and Rosneft. The group has ceased to report Rosneft as a
separate segment in the group's financial reporting for 2022. From
the first quarter of 2022, the group's reportable segments are gas
& low carbon energy, oil production & operations and
customers & products. For more information see Note 1 Basis of
preparation - Investment in
Rosneft. For the period from 1
January 2022 to 27 February 2022, net income from Rosneft is
classified as an adjusting item.
In addition to the highlights on page 2:
●
Profit attributable to bp shareholders in the fourth
quarter was $10.8 billion compared
with $2.3 billion in the same period of 2021.
Loss attributable to bp shareholders in the full
year was $2.5 billion compared with a profit
of $7.6 billion in the same period
of 2021.
-
The increase in the underlying replacement cost profit for both
periods reflects higher gas and liquids realizations and higher
refining margins, partially offset by higher tax and the absence of
bp share of earnings from Rosneft. The fourth quarter result
also reflects an adverse impact of turnaround and maintenance
activity, and the year a favourable impact of strong trading
performance.
-
Adjusting items* in the fourth quarter and full year were
a favourable pre-tax impact of $9.7 billion and an
adverse pre-tax impact
of $29.8 billion respectively, compared with an
adverse pre-tax impact
of $3.0 billion and $8.7 billion in
the same periods of 2021.
◦
As a result of bp's two nominated directors stepping-down from the
Rosneft board on 27 February 2022, bp determined that it no longer
meets the criteria set out under IFRS for having "significant
influence" over Rosneft. bp therefore no longer equity accounts for
its interest in Rosneft from that date, treating it prospectively
as a financial asset measured at fair value. Within the full
year result, the loss of significant influence and an
impairment assessment led to a net pre-tax charge of
$24.0 billion classified as an adjusting item, reducing equity
by $14.4 billion. A further $1.5 billion pre-tax charge relating to
bp's decision to exit its other businesses with Rosneft in Russia
is also included in the full year result, reducing equity
by $1.2 billion. See Note 1 for further information.
◦
Adjusting items for the fourth quarter and full year 2022
also include increases in pre-tax fair value accounting effects*
of $13.2 billion and decreases of $3.5
billion respectively, compared with a decreasing pre-tax
impact of $0.9 billion and $8.1 billion in the same periods of
2021. Under IFRS, reported earnings include the mark-to-market
value of the hedges used to risk-manage LNG contracts, but not of
the LNG contracts themselves. The underlying result includes the
mark-to-market value of the hedges but also recognizes changes in
value of the LNG contracts being risk managed.
◦
Adjusting items for the fourth quarter also includes net impairment
charges of $3.6 billion principally as a result of
expected portfolio changes in our oil production & operations
segment, the annual review of price assumptions used for investment
appraisal and value-in-use impairment testing and the annual review
of discount rates used for impairment tests. The full
year 2022 also includes a non-taxable gain of
$2.0 billion arising from the contribution of bp's Angolan
business to Azule Energy.
●
The effective tax rate (ETR) on RC profit or loss* for
the fourth quarter and full year was 33%
and 117% respectively, compared with 38% and 51% for
the same periods in 2021. Excluding adjusting items, the
underlying ETR* for the fourth quarter and full
year was 40% and 34% respectively, compared
with 34% and 32% for the same periods a year ago. The
higher underlying ETR for the fourth quarter and full
year reflects the UK Energy Profits Levy on North Sea profits
and the absence of equity-accounted earnings from Rosneft, for the
full year this is partly offset by changes in the geographical mix
of profits. ETR on RC profit or loss and underlying ETR are
non-GAAP measures.
●
Operating cash flow* for the fourth quarter and full
year 2022
was $13.6 billion and $40.9 billion respectively,
compared
with $6.1 billion and $23.6 billion for
the same periods in 2021 primarily as an outcome of higher
underlying profits and working capital movements.
●
Capital expenditure* in the fourth quarter and full
year 2022
was $7.4 billion and $16.3 billion respectively,
compared
with $3.6 billion and $12.8 billion in
the same periods of 2021, higher as a result of acquisitions
completed during the fourth quarter 2022.
●
Total divestment and other proceeds for the fourth quarter and
full
year were $0.6 billion and $3.1 billion respectively,
compared
with $2.3 billion and $7.6 billion for
the same periods in 2021. Other proceeds for the full
year 2022 consist of $0.6 billion of proceeds from the
disposal of a loan note related to the Alaska divestment.
See page 32 for further information.
●
At the end of the fourth quarter, net debt*
was $21.4 billion, compared
with $22.0 billion at the end of
the third quarter 2022
and $30.6 billion at the end of
the fourth quarter 2021.
Top of page 4
Analysis of RC profit (loss) before interest and tax and
reconciliation to profit (loss) for the period
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
RC profit (loss) before interest and tax
|
|
|
|
|
|
|
|
|
gas
& low carbon energy
|
|
16,439
|
(2,956)
|
1,911
|
|
14,696
|
2,133
|
|
oil
production & operations
|
|
1,688
|
6,965
|
3,212
|
|
19,721
|
10,501
|
|
customers
& products
|
|
771
|
2,586
|
(426)
|
|
8,869
|
2,208
|
|
other businesses &
corporate(a)
|
|
103
|
(1,093)
|
(369)
|
|
(26,737)
|
(348)
|
|
Of
which:
|
|
|
|
|
|
|
|
|
other
businesses & corporate excluding Rosneft
|
|
103
|
(1,093)
|
(924)
|
|
(2,704)
|
(2,777)
|
|
Rosneft
|
|
-
|
-
|
555
|
|
(24,033)
|
2,429
|
|
Consolidation
adjustment - UPII*
|
|
147
|
(21)
|
(7)
|
|
139
|
(67)
|
|
RC profit loss before interest and tax
|
|
19,148
|
5,481
|
4,321
|
|
16,688
|
14,427
|
|
Finance
costs and net finance expense relating to pensions and other
post-retirement benefits
|
|
(818)
|
(633)
|
(751)
|
|
(2,634)
|
(2,855)
|
|
Taxation on a RC basis
|
|
(6,103)
|
(4,646)
|
(1,350)
|
|
(16,430)
|
(5,911)
|
|
Non-controlling interests
|
|
(358)
|
(179)
|
(252)
|
|
(1,130)
|
(922)
|
|
RC profit (loss) attributable to bp shareholders*
|
|
11,869
|
23
|
1,968
|
|
(3,506)
|
4,739
|
|
Inventory holding gains (losses)*
|
|
(1,428)
|
(2,868)
|
472
|
|
1,351
|
3,655
|
|
Taxation (charge) credit on inventory holding gains and
losses
|
|
362
|
682
|
(114)
|
|
(332)
|
(829)
|
|
Profit (loss) for the period attributable to bp
shareholders
|
|
10,803
|
(2,163)
|
2,326
|
|
(2,487)
|
7,565
|
Analysis of underlying RC profit (loss) before interest and
tax
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Underlying RC profit (loss) before interest and tax
|
|
|
|
|
|
|
|
|
gas
& low carbon energy
|
|
3,148
|
6,240
|
2,211
|
|
16,063
|
7,528
|
|
oil
production & operations
|
|
4,428
|
5,211
|
4,024
|
|
20,224
|
10,292
|
|
customers
& products
|
|
1,902
|
2,725
|
611
|
|
10,789
|
3,252
|
|
other businesses &
corporate(a)
|
|
(306)
|
(405)
|
210
|
|
(1,171)
|
1,337
|
|
Of
which:
|
|
|
|
|
|
|
|
|
other
businesses & corporate excluding Rosneft
|
|
(306)
|
(405)
|
(535)
|
|
(1,171)
|
(1,383)
|
|
Rosneft
|
|
-
|
-
|
745
|
|
-
|
2,720
|
|
Consolidation
adjustment - UPII
|
|
147
|
(21)
|
(7)
|
|
139
|
(67)
|
|
Underlying RC profit before interest and tax
|
|
9,319
|
13,750
|
7,049
|
|
46,044
|
22,342
|
|
Finance
costs and net finance expense relating to pensions and other
post-retirement benefits
|
|
(649)
|
(565)
|
(494)
|
|
(2,209)
|
(2,073)
|
|
Taxation on an underlying RC basis
|
|
(3,505)
|
(4,856)
|
(2,238)
|
|
(15,052)
|
(6,532)
|
|
Non-controlling interests
|
|
(358)
|
(179)
|
(252)
|
|
(1,130)
|
(922)
|
|
Underlying RC profit attributable to bp shareholders*
|
|
4,807
|
8,150
|
4,065
|
|
27,653
|
12,815
|
Reconciliations of underlying RC profit attributable to bp
shareholders to the nearest equivalent IFRS measure are provided
on page 1 for the group and on pages 6-15 for
the segments.
(a) From first
quarter 2022 the results of Rosneft, previously reported as a
separate segment, are also included in other businesses &
corporate. Comparative information for 2021 has been restated to
reflect the changes in reportable segments. For more information
see Note 1 Basis of preparation
- Investment
in Rosneft.
Top of page 5
Operating Metrics
|
Operating metrics
|
|
Year 2022
|
|
vs Year 2021
|
|
Tier 1 and tier 2 process safety events*
|
|
50
|
|
-12
|
|
Reported recordable injury frequency*
|
|
0.187
|
|
+14.1%
|
|
upstream*
production(a) (mboe/d)
|
|
2,253
|
|
+1.6%
|
|
upstream unit production
costs*(b) ($/boe)
|
|
6.07
|
|
-11.0%
|
|
bp-operated hydrocarbon plant reliability*
|
|
96.0%
|
|
+2.0
|
|
bp-operated refining
availability*(a)
|
|
94.5%
|
|
-0.3
|
(a)
See Operational updates on
pages 6, 9 and 11.
(b)
Reflecting higher volumes and lower costs including impact of
conversion to equity-accounted entities.
Reserves replacement ratio*
The organic reserves replacement ratio (RRR) on a combined basis of
subsidiaries and equity-accounted entities was 20% for the year
(2021 50%). The decrease is largely due to price related reserves
reductions in our production-sharing agreements*. The announced
exit from Russia is treated as a divestment and therefore impacts
only total RRR, not organic.
Outlook & Guidance
Macro outlook
●
In the first quarter, bp expects oil prices to remain supported by
recovering Chinese demand, ongoing uncertainty around the level of
Russian exports and low inventory levels.
●
bp expects the outlook for global gas prices during the first
quarter to remain dependent on weather in the Northern Hemisphere
and the pace of Chinese demand recovery.
●
bp expects industry refining margins to remain elevated in the
first quarter due to sanctioning of Russian crude and
product.
1Q23 guidance
●
Looking ahead, we expect first-quarter 2023 reported upstream*
production to be broadly flat compared to fourth quarter
2022.
●
In our customers business, we expect seasonally lower volumes and
in Castrol base oil prices to remain high, although lower than the
fourth quarter 2022. In refining, we expect margins to remain
elevated and a lower level of turnaround activity.
2023 guidance
In
addition to the guidance on page 2:
●
bp expects both reported and underlying upstream production to be
broadly flat compared with 2022. Within this, bp expects underlying
production* from oil production & operations to be slightly
higher and production from gas & low carbon energy to be lower.
bp expects the start-up of Mad Dog Phase 2 in the second quarter of
2023 and first gas from the Tangguh expansion and GTA Phase 1
Tortue projects in the fourth quarter of 2023.
●
bp expects the other businesses & corporate underlying annual
charge to be in a range of $1.1-1.3 billion for 2023. The charge
may vary from quarter to quarter.
●
bp expects the depreciation, depletion and amortization to be
slightly above 2022.
●
The underlying ETR* for 2023 is expected to be around 40% but 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.
●
bp expects capital expenditure* of $16-18 billion in 2023 including
inorganic capital expenditure*.
●
Having realized $15.9 billion of divestment and other proceeds
since the second quarter of 2020, bp now expects divestment and
other proceeds of $2-3 billion in 2023 and continues to expect to
reach $25 billion of divestment and other proceeds between the
second half of 2020 and 2025.
●
bp expects Gulf of Mexico oil spill payments for the year to be
around $1.3 billion pre-tax including $1.2 billion pre-tax to be
paid during the second quarter.
●
Against the authority granted at bp's 2022 annual general meeting
to repurchase up to 1.95 billion shares, bp has repurchased 1.11
billion shares.
●
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 the maintenance of a strong
investment grade credit rating.
|
The commentary above contains forward-looking statements and should
be read in conjunction with the cautionary statement on page
42.
|
Top of page 6
gas & low carbon energy*
Financial results
●
The replacement cost profit before interest and tax for
the fourth quarter and full year was $16,439
million and $14,696 million respectively, compared
with $1,911 million and $2,133 million for the
same periods in 2021. The fourth quarter and full
year is adjusted by a favourable impact of net adjusting
items* of $13,291 million and adverse impact
of $1,367 million respectively to derive the underlying
replacement cost profit, compared with adverse impacts of net
adjusting items of $300 million and $5,395
million for the same periods in 2021.
●
After adjusting items, the underlying replacement
cost profit before interest and tax* for the fourth
quarter and full year was $3,148
million and $16,063 million respectively, compared
with $2,211 million and $7,528 million for the
same periods in 2021. Adjusting items include
favourable fair value accounting effects* of $12,502
million for the quarter and an adverse effect of $1,811
million for the full year. The adjusting items for the
fourth quarter primarily arose from a significant decrease in
forward gas prices during the quarter. Under IFRS, reported
earnings include the mark-to-market value of the hedges used to
risk-manage LNG contracts, but not of the LNG contracts themselves.
The underlying result includes the mark-to-market value of the
hedges but also recognizes changes in value of the LNG contracts
being risk managed, which decreased as forward prices
fell.
●
The underlying replacement cost profit for the fourth quarter,
compared with the same period in 2021, reflects higher
realizations, partially offset by lower production and a lower gas
marketing and trading result. For the full year the
result reflects higher realizations, higher production and an
exceptional gas marketing and trading result.
Operational update
●
Reported production for the quarter was 956mboe/d, 1.8% lower than
the same period in 2021. Underlying production* was 2.4%
lower, mainly due to base decline in Trinidad.
●
Reported production for the full year was 957mboe/d, 4.9%
higher than the same period in 2021. Underlying production for
the full year was 4.9% higher due to the ramp-up of major
projects*.
● Renewables
pipeline* at the end of the quarter was 37.2GW (bp net). The
renewables pipeline increased by 10.3GW during the quarter due to
additions to the renewables pipeline in support of hydrogen in
Australia. The renewables pipeline increased by 14.1GW for the full
year, primarily as a result of bp and its partner EnBW being
awarded a lease option off the east coast of Scotland to develop an
offshore wind project (1.45GW bp net) in the first quarter of 2022,
net additions to Lightsource bp's pipeline, and the additions to
the renewables pipeline in the fourth quarter in support of
hydrogen in Australia.
Strategic progress
gas
●
On 23 December the government of Indonesia granted a 20-year
extension, to 2055, of the Tangguh production-sharing contract*
(Tangguh PSC) to bp (40.22% and operator), and its Tangguh PSC
partners.
●
On 29 November bp announced its Cassia C development offshore
Trinidad had safely delivered first gas. Cassia C is bp Trinidad
and Tobago's (bp 70%) first offshore compression platform and its
biggest offshore facility.
●
On 28 November bp was awarded two exploration blocks in the
Mediterranean sea, offshore Egypt by the Egyptian Natural Gas
Holding Company. The Northwest Abu Qir Offshore Area (bp 82.75%
operator, Wintershall-Dea 17.25%) is located west of the recently
awarded North King Mariout block (bp 100%) and north of the Raven
field. The Bellatrix-Seti East block (bp 50%, Eni 50% operator) is
located west of the Atoll field and North Tabya
blocks.
●
On 8 December Trinidad's Ministry of Energy and Energy Industries
announced that it had reached agreement with the Atlantic LNG
shareholders, including bp, on substantial commercial terms
for the consolidation of its operations into a single entity which
is a key milestone towards unlocking the energy future for Trinidad
and Tobago. The new structure is expected to be effective in
October 2024 and will enable increased focus on operational
efficiency and reliability and underpin future upstream
investments.
●
On 14 November bp began lifting cargoes of LNG from Mozambique's
first LNG project. bp has a long-term agreement to purchase 100% of
the LNG output from the facility that has the capacity to produce
up to 3.4 million tonnes of LNG per year.
low carbon energy
●
On 8 November and 8 December bp signed memoranda of understanding
with the governments of Mauritania and Egypt, respectively to
explore the potential for establishing green hydrogen* production
facilities in the countries.
●
Lightsource bp brought 2.7GW to FID (1.34GW bp net)
in full year 2022, an increase of 32% compared with 2.0GW
(1.0GW bp net) in 2021, and divested 0.9GW of projects (0.45GW
bp net) during the year, resulting in $0.1 billion of gains on
disposal recognized in bp's share of equity-accounted
earnings.
●
On 9 December bp announced it will partner with Shell and
Lightsource bp to develop a 148 megawatt-peak
solar project in Trinidad and Tobago following approval
by the country's government. It is the country's first
commercial-scale renewable energy project.
●
On 14 December bp agreed with its Flat Ridge 2 joint venture
partner to purchase their 50% ownership in that wind farm. bp now
owns 100%, adding an additional 235MW of capacity to bp's renewable
portfolio.
Top of page 7
gas & low carbon energy (continued)
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Profit (loss) before interest and tax
|
|
16,429
|
(2,970)
|
1,903
|
|
14,688
|
2,166
|
|
Inventory holding (gains) losses*
|
|
10
|
14
|
8
|
|
8
|
(33)
|
|
RC profit (loss) before interest and tax
|
|
16,439
|
(2,956)
|
1,911
|
|
14,696
|
2,133
|
|
Net (favourable) adverse impact of adjusting items
|
|
(13,291)
|
9,196
|
300
|
|
1,367
|
5,395
|
|
Underlying RC profit before interest and tax
|
|
3,148
|
6,240
|
2,211
|
|
16,063
|
7,528
|
|
Taxation on an underlying RC basis
|
|
(1,163)
|
(1,478)
|
(509)
|
|
(4,367)
|
(1,677)
|
|
Underlying RC profit before interest
|
|
1,985
|
4,762
|
1,702
|
|
11,696
|
5,851
|
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|
Total depreciation, depletion and amortization
|
|
1,373
|
1,177
|
1,265
|
|
5,008
|
4,464
|
|
|
|
|
|
|
|
|
|
|
Exploration write-offs
|
|
|
|
|
|
|
|
|
Exploration write-offs
|
|
(6)
|
10
|
2
|
|
2
|
43
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA*
|
|
|
|
|
|
|
|
|
Total adjusted EBITDA
|
|
4,515
|
7,427
|
3,478
|
|
21,073
|
12,035
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure*
|
|
|
|
|
|
|
|
|
gas
|
|
1,032
|
872
|
928
|
|
3,227
|
3,180
|
|
low carbon energy(a)(b)
|
|
577
|
86
|
109
|
|
1,024
|
1,561
|
|
Total capital expenditure
|
|
1,609
|
958
|
1,037
|
|
4,251
|
4,741
|
(a)
Full year 2021 includes $712 million in respect of the remaining
payment to Equinor for our investment in our strategic US offshore
wind partnership and $326 million as a lease option fee deposit
paid to The Crown Estate in connection with our participation in
the UK Round 4 Offshore Wind Leasing together with our partner
EnBW.
(b)
Fourth quarter and full year 2022 include $504 million in respect
of the acquisition of EDF Energy Services. Power trading is
reported under low carbon energy.
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Production (net of
royalties)(b)
|
|
|
|
|
|
|
|
|
Liquids* (mb/d)
|
|
121
|
117
|
122
|
|
118
|
113
|
|
Natural gas (mmcf/d)
|
|
4,844
|
5,011
|
4,941
|
|
4,866
|
4,632
|
|
Total hydrocarbons* (mboe/d)
|
|
956
|
981
|
974
|
|
957
|
912
|
|
|
|
|
|
|
|
|
|
|
Average realizations*(c)
|
|
|
|
|
|
|
|
|
Liquids ($/bbl)
|
|
80.50
|
88.03
|
71.63
|
|
89.86
|
63.60
|
|
Natural gas ($/mcf)
|
|
9.40
|
9.85
|
6.94
|
|
8.91
|
5.11
|
|
Total hydrocarbons* ($/boe)
|
|
57.60
|
60.80
|
43.68
|
|
56.34
|
33.75
|
(c)
Includes bp's share of production of equity-accounted entities in
the gas & low carbon energy segment.
(d)
Realizations are based on sales by consolidated subsidiaries only -
this excludes equity-accounted entities.
Top of page 8
gas & low carbon energy (continued)
|
|
|
31 December 2022
|
30 September 2022
|
31 December 2021
|
|
|
|
|||
|
low carbon energy(a)
|
|
|||
|
|
|
|
|
|
|
Renewables (bp net, GW)
|
|
|
|
|
|
Installed renewables capacity*
|
|
2.2
|
2.0
|
1.9
|
|
|
|
|
|
|
|
Developed renewables to FID*
|
|
5.8
|
4.6
|
4.4
|
|
Renewables pipeline
|
|
37.2
|
26.9
|
23.1
|
|
of which by geographical area:
|
|
|
|
|
|
Renewables
pipeline - Americas
|
|
17.0
|
17.5
|
16.2
|
|
Renewables pipeline - Asia
Pacific(b)
|
|
11.8
|
1.7
|
1.4
|
|
Renewables
pipeline - Europe
|
|
8.3
|
7.6
|
5.3
|
|
Renewables
pipeline - Other
|
|
0.1
|
0.1
|
0.2
|
|
of which by technology:
|
|
|
|
|
|
Renewables
pipeline - offshore wind
|
|
5.2
|
5.2
|
3.7
|
|
Renewables
pipeline - onshore wind
|
|
6.3
|
-
|
-
|
|
Renewables
pipeline - solar
|
|
25.7
|
21.7
|
19.4
|
|
Total Developed renewables to FID and Renewables
pipeline
|
|
43.0
|
31.5
|
27.5
|
(a)
Because of rounding, some totals may not agree exactly with the sum
of their component parts.
(b)
31 December 2022 includes 10.3GW of onshore wind and solar pipeline
in support of hydrogen.
Top of page 9
oil production & operations
Financial results
●
The replacement cost profit before interest and tax for
the fourth quarter and full year was $1,688
million and $19,721 million respectively, compared
with $3,212 million and $10,501 million for the
same periods in 2021. The fourth quarter and full
year is adjusted by an adverse impact of net adjusting items*
of $2,740 million and $503
million respectively to derive the underlying replacement cost
profit, compared with an adverse impact of net adjusting items
of $812 million and a favourable impact of $209
million for the same periods in 2021. Adjusting
items in the fourth quarter principally relate to impairments
as a result of expected portfolio changes. See Note
4 and page 30 for more information.
●
After adjusting items, the underlying replacement
cost profit before interest and tax* for the fourth
quarter and full year was $4,428
million and $20,224 million respectively, compared
with $4,024 million and $10,292 million for the
same periods in 2021.
● The
underlying replacement cost profit for the fourth quarter compared
to the same quarter in 2021, reflects higher oil and gas
realizations, partly offset by the impact of portfolio changes. For
the full year the result reflects primarily higher
realizations.
Operational update
●
Reported production for the quarter was 1,309mboe/d, 3.6% lower
than the fourth quarter of 2021. Underlying production* for the
quarter was flat compared with the fourth quarter of
2021.
●
Reported production for the full year was 1,297mboe/d, 0.8% lower
than the same period of 2021. Underlying production for the full
year was 2.1% higher compared with the same period of 2021
reflecting bpx energy performance, major projects* and reduced
weather impacts in the US Gulf of Mexico partly offset by base
performance.
●
Progressed operational performance in upstream* in 2022, delivering
the highest bp-operated hydrocarbon plant reliability* on record at
96%.
Strategic Progress
●
On 16 December bp was awarded operatorship of the Bumerangue block,
in the Santos Pre Salt Basin, in Brazil.
●
On 7 November the National Agency for Petroleum, Gas and Biofuels
(ANPG), ExxonMobil Angola and the Angola Block 15 partners
announced a new discovery at the Bavuca South-1 exploration well.
Azule Energy, the bp and ENI 50:50 joint venture, owns 42% of block
15.
●
In the Permian, methane flaring intensity averaged <0.5% in
2022, the lowest recorded in BPX Energy.
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Profit before interest and tax
|
|
1,686
|
6,966
|
3,212
|
|
19,714
|
10,509
|
|
Inventory holding (gains) losses*
|
|
2
|
(1)
|
-
|
|
7
|
(8)
|
|
RC profit before interest and tax
|
|
1,688
|
6,965
|
3,212
|
|
19,721
|
10,501
|
|
Net (favourable) adverse impact of adjusting items
|
|
2,740
|
(1,754)
|
812
|
|
503
|
(209)
|
|
Underlying RC profit before interest and tax
|
|
4,428
|
5,211
|
4,024
|
|
20,224
|
10,292
|
|
Taxation on an underlying RC basis
|
|
(2,015)
|
(2,921)
|
(1,235)
|
|
(9,143)
|
(4,123)
|
|
Underlying RC profit before interest
|
|
2,413
|
2,290
|
2,789
|
|
11,081
|
6,169
|
Top of page 10
oil production & operations (continued)
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|
Total depreciation, depletion and amortization
|
|
1,383
|
1,381
|
1,628
|
|
5,564
|
6,528
|
|
|
|
|
|
|
|
|
|
|
Exploration write-offs
|
|
|
|
|
|
|
|
|
Exploration write-offs
|
|
73
|
180
|
45
|
|
383
|
125
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA*
|
|
|
|
|
|
|
|
|
Total adjusted EBITDA
|
|
5,884
|
6,772
|
5,697
|
|
26,171
|
16,945
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure*
|
|
|
|
|
|
|
|
|
Total capital expenditure
|
|
1,430
|
1,386
|
1,272
|
|
5,278
|
4,838
|
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Production (net of
royalties)(a)
|
|
|
|
|
|
|
|
|
Liquids* (mb/d)
|
|
966
|
959
|
1,004
|
|
952
|
978
|
|
Natural gas (mmcf/d)
|
|
1,989
|
2,075
|
2,053
|
|
1,998
|
1,903
|
|
Total hydrocarbons* (mboe/d)
|
|
1,309
|
1,317
|
1,358
|
|
1,297
|
1,307
|
|
|
|
|
|
|
|
|
|
|
Average realizations*(b)
|
|
|
|
|
|
|
|
|
Liquids ($/bbl)
|
|
80.43
|
93.14
|
71.07
|
|
89.62
|
62.57
|
|
Natural gas(c) ($/mcf)
|
|
10.20
|
12.12
|
8.73
|
|
10.46
|
5.49
|
|
Total hydrocarbons*(c) ($/boe)
|
|
74.60
|
86.83
|
66.19
|
|
82.23
|
55.65
|
(a)
Includes bp's share of production of equity-accounted entities in
the oil production & operations segment.
(b)
Realizations are based on sales by consolidated subsidiaries only -
this excludes equity-accounted entities.
(c)
Realizations calculation methodology has been changed to reflect
gas price fluctuations within the North Sea region. All
comparatives are restated. There is no impact on financial
results.
Top of page 11
customers & products
Financial results
●
The replacement cost profit before interest and tax for
the fourth quarter and full year was $771
million and $8,869 million respectively, compared
with a loss of $426 million and a profit of $2,208 million for the
same periods in 2021. The fourth quarter and full year is adjusted
by an adverse impact of net adjusting items* of $1,131 million and
$1,920 million respectively to derive the underlying replacement
cost profit, mainly relating to impairment charges (see Note 4),
compared with an adverse impact of net adjusting items of $1,037
million and $1,044 million for the same periods
in 2021.
●
After adjusting items, the underlying replacement
cost profit before interest and tax* for the fourth
quarter and full year was $1,902
million and $10,789 million respectively, compared
with a profit of $611 million and $3,252
million for the same periods in 2021.
●
The customers & products result for
the fourth quarter and full year were higher than the
same periods in 2021. This reflects a stronger performance in
refining and oil trading.
● customers -
the convenience and mobility results, excluding Castrol, for
the fourth quarter and full year were higher compared
with the same periods in 2021. The benefits of a stronger
convenience, retail fuels and aviation performance were partially
offset by inflationary cost pressures. The full year result also
included higher midstream performance, including biofuels, and
adverse foreign exchange impacts.
Castrol
results for the fourth quarter and full
year were
lower than the same periods in 2021, due to higher input costs,
ongoing COVID restrictions, notably in China, and adverse foreign
exchange impacts.
● products -
the products results for the fourth quarter and full
year were higher compared with the same periods in 2021. In
refining, the fourth quarter and full year results benefited from
higher realized margins, partially offset by higher energy costs,
and turnaround and maintenance activity. In
oil trading the fourth quarter and full year results were higher
compared to the same period in 2021. The full year result benefited
from an exceptionally strong oil trading performance in the first
half of 2022.
Operational update
● Utilization
for the full year was similar to 2021, however the
fourth
quarter was
lower compared to the same period in 2021, primarily
due to the
bp-Husky Toledo refinery shutdown and a higher level of
maintenance activity. bp-operated refining availability* for
the fourth quarter and full year was 95.0%
and 94.5% respectively, compared with 95.4%
and 94.8% for the same periods in 2021.
Strategic progress
●
Strategic convenience sites* grew to 2,400, an increase of more
than 250 compared to 2021.
● In December,
bp announced an exclusive agreement in the UK with its convenience
partner M&S for bp pulse to install fast(a) charge
points in around 70 of their stores, with initial ambition to
add up to 900 charge points within the next two years. This follows
bp's announcement in October that its strategic partnership with
REWE in Germany has been expanded to include the installation of
fast(a) charge
points at up to 180 of their sites.
● EV charge
points* installed and energy sold grew by more than 65% and around
150% respectively, compared to 2021, with charge points now at
around 22,000. In addition, we continued to build momentum in
fleets. In October, bp announced plans to establish a bp pulse
Gigahub network, a series of large, EV fast(a) charging
hubs designed to serve ride-hail and taxi fleets, near US airports
and high-demand locations, with an initial location near Los
Angeles Airport in collaboration with Hertz.
●
In November, Castrol announced an investment in Ki Mobility
solutions (KMS) to create a co-branded service and maintenance
network in India, supported by KMS's digitally integrated
multi-brand service platform. The investment supports Castrol's aim
to grow its presence in service and maintenance for both EV and
non-EV vehicles.
● In
December, bp completed its purchase of Archaea Energy Inc., a
leading provider of renewable natural gas, marking a milestone in
the growth of bp's strategic bioenergy business. Bioenergy is one
of five strategic transition growth engines that bp intends to grow
rapidly through this decade.
●
In November, bp announced its Cherry Point refinery in the US had
doubled its renewable diesel production capacity compared to the
fourth quarter in 2021. The refinery now has the capability to
co-process more than 7,000 barrels a day of renewable
diesel.
●
Following a fire at the bp-Husky Toledo refinery in Ohio, US, the
refinery remains shut down. bp continues to work with Cenovus
Energy, its partner in the facility, on the announced sale of bp's
50% interest in the refinery to Cenovus Energy.
(a)
"fast charging" includes rapid charging ≥50kW and ultra-fast
charging ≥150kW.
Top
of page 12
customers & products (continued)
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Profit (loss) before interest and tax
|
|
(645)
|
(269)
|
(14)
|
|
10,235
|
5,563
|
|
Inventory holding (gains) losses*
|
|
1,416
|
2,855
|
(412)
|
|
(1,366)
|
(3,355)
|
|
RC profit (loss) before interest and tax
|
|
771
|
2,586
|
(426)
|
|
8,869
|
2,208
|
|
Net (favourable) adverse impact of adjusting items
|
|
1,131
|
139
|
1,037
|
|
1,920
|
1,044
|
|
Underlying RC profit before interest and tax
|
|
1,902
|
2,725
|
611
|
|
10,789
|
3,252
|
|
Of which:(a)
|
|
|
|
|
|
|
|
|
customers
- convenience & mobility
|
|
628
|
1,137
|
637
|
|
2,966
|
3,052
|
|
Castrol - included in customers
|
|
70
|
151
|
207
|
|
700
|
1,037
|
|
products
- refining & trading
|
|
1,274
|
1,588
|
(26)
|
|
7,823
|
200
|
|
Taxation on an underlying RC basis
|
|
(400)
|
(725)
|
(640)
|
|
(2,308)
|
(1,210)
|
|
Underlying RC profit before interest
|
|
1,502
|
2,000
|
(29)
|
|
8,481
|
2,042
|
(a)
A reconciliation to RC profit before interest and tax by business
is provided on page 34.
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Adjusted EBITDA*(b)
|
|
|
|
|
|
|
|
|
customers - convenience & mobility
|
|
962
|
1,448
|
966
|
|
4,252
|
4,358
|
|
Castrol - included in customers
|
|
110
|
187
|
243
|
|
853
|
1,187
|
|
products - refining & trading
|
|
1,681
|
1,974
|
399
|
|
9,407
|
1,894
|
|
|
|
2,643
|
3,422
|
1,365
|
|
13,659
|
6,252
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|
Total depreciation, depletion and amortization
|
|
741
|
697
|
754
|
|
2,870
|
3,000
|
|
|
|
|
|
|
|
|
|
|
Capital expenditure*
|
|
|
|
|
|
|
|
|
customers - convenience & mobility
|
|
694
|
404
|
692
|
|
1,779
|
1,564
|
|
Castrol - included in customers
|
|
98
|
42
|
53
|
|
235
|
173
|
|
products - refining & trading(c)
|
|
3,455
|
309
|
532
|
|
4,473
|
1,308
|
|
Total capital expenditure
|
|
4,149
|
713
|
1,224
|
|
6,252
|
2,872
|
(b)
A reconciliation to RC profit before interest and tax by business
is provided on page 34.
(c)
Fourth quarter and full year 2022 include $3,030
million in respect of the Archaea Energy
acquisition.
|
Retail(d)
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
bp retail sites* - total (#)
|
|
20,650
|
20,550
|
20,500
|
|
20,650
|
20,500
|
|
bp
retail sites in growth markets*
|
|
2,650
|
2,600
|
2,700
|
|
2,650
|
2,700
|
|
Strategic
convenience sites*
|
|
2,400
|
2,250
|
2,150
|
|
2,400
|
2,150
|
(d)
Reported to the nearest 50.
|
Marketing sales of refined products (mb/d)
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
US
|
|
1,126
|
1,143
|
1,151
|
|
1,136
|
1,115
|
|
Europe
|
|
1,069
|
1,098
|
936
|
|
1,021
|
863
|
|
Rest of World
|
|
461
|
451
|
496
|
|
456
|
461
|
|
|
|
2,656
|
2,692
|
2,583
|
|
2,613
|
2,439
|
|
Trading/supply sales of refined products
|
|
325
|
355
|
395
|
|
350
|
393
|
|
Total sales volume of refined products
|
|
2,981
|
3,047
|
2,978
|
|
2,963
|
2,832
|
Top of page 13
customers & products (continued)
|
Refining marker
margin*(e)
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
bp average refining marker margin (RMM) ($/bbl)
|
|
32.2
|
35.5
|
15.1
|
|
33.1
|
13.2
|
(e) The RMM in the
quarter is calculated based on bp's current refinery portfolio. On
a comparative basis, the fourth quarter and full year 2021 RMM
would be $15.3/bbl and $13.6/bbl respectively.
|
Refinery throughputs (mb/d)
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
US
|
|
615
|
703
|
720
|
|
678
|
719
|
|
Europe
|
|
763
|
809
|
833
|
|
804
|
787
|
|
Rest of World
|
|
-
|
-
|
91
|
|
22
|
88
|
|
Total refinery throughputs
|
|
1,378
|
1,512
|
1,644
|
|
1,504
|
1,594
|
|
bp-operated refining availability* (%)
|
|
95.0
|
94.3
|
95.4
|
|
94.5
|
94.8
|
Top of page 14
other businesses & corporate
Other businesses & corporate comprises innovation &
engineering, bp ventures, Launchpad, regions, corporates &
solutions, our corporate activities & functions and any
residual costs of the Gulf of Mexico oil spill. From first quarter
2022 the results of Rosneft, previously reported as a separate
segment, are also included in other businesses & corporate.
Comparative information for 2021 has been restated to reflect the
changes in reportable segments. For more information see Note
1 Basis of Preparation - Investment in
Rosneft.
Financial results
●
The replacement cost result before interest and tax for
the fourth quarter and full year was
a profit of $103 million and a loss
of $26,737 million respectively, compared with
a loss of $369 million and $348
million for the same periods in 2021. The fourth
quarter and full year is adjusted by a
favourable impact of net adjusting items* of $409
million and an adverse impact of $25,566
million respectively to derive the underlying replacement cost
profit, compared with an adverse impact of net adjusting
items of $579 million and $1,685 million for
the same periods in 2021. The adjusting items for the full
year of 2022 mainly relate to Rosneft. Fair value accounting
effects* for the fourth quarter and full year had a
favourable impact of $515 million and an adverse
impact of $1,381 million respectively, compared
with an adverse impact of $212
million and $849 million for the same periods
in 2021.
●
After adjusting items, the underlying replacement
cost loss before interest and tax* for the fourth
quarter and full year was $306
million and $1,171 million respectively, compared
with a profit of $210 million and $1,337
million for the same periods in 2021.
●
For other businesses & corporate excluding Rosneft, after
excluding adjusting items, the underlying replacement cost loss
before interest and tax for the fourth quarter and full
year was $306 million and $1,171
million respectively, compared with $535
million and $1,383 million for the same periods in
2021.
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Profit (loss) before interest and tax
|
|
103
|
(1,093)
|
(301)
|
|
(26,737)
|
(89)
|
|
Inventory holding (gains) losses*
|
|
-
|
-
|
(68)
|
|
-
|
(259)
|
|
RC profit (loss) before interest and tax
|
|
103
|
(1,093)
|
(369)
|
|
(26,737)
|
(348)
|
|
Net (favourable) adverse impact of adjusting
items(a)
|
|
(409)
|
688
|
579
|
|
25,566
|
1,685
|
|
Underlying RC profit (loss) before interest and tax
|
|
(306)
|
(405)
|
210
|
|
(1,171)
|
1,337
|
|
Taxation on an underlying RC basis
|
|
43
|
206
|
55
|
|
439
|
25
|
|
Underlying RC profit (loss) before interest
|
|
(263)
|
(199)
|
265
|
|
(732)
|
1,362
|
(a)
Includes fair value accounting effects relating to the hybrid bonds
that were issued on 17 June 2020. See page 37 for more
information.
other businesses & corporate (excluding Rosneft)
Strategic progress
● We
have taken the decision to no longer seek new companies for bp's
Launchpad accelerator, with our focus now to scale and build
businesses within our 5 transition growth engines - bioenergy,
convenience, EV charging, renewables and hydrogen.
●
In December, bp ventures made a $20-million AUD investment in 5B
Holdings Pty Ltd, an Australian renewable company with technology
that enables rapid deployment of solar power at scale.
●
On 2 February 2023, bp and Chubu Electric signed a memorandum of
understanding to explore opportunities for decarbonisation in Japan
and the wider Asia region, including plans for a feasibility study
for a carbon capture, utilization, and storage (CCUS) hub in the
Nagoya port area.
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Profit (loss) before interest and tax
|
|
103
|
(1,093)
|
(924)
|
|
(2,704)
|
(2,777)
|
|
Inventory holding (gains) losses*
|
|
-
|
-
|
-
|
|
-
|
-
|
|
RC profit (loss) before interest and tax
|
|
103
|
(1,093)
|
(924)
|
|
(2,704)
|
(2,777)
|
|
Net (favourable) adverse impact of adjusting items
|
|
(409)
|
688
|
389
|
|
1,533
|
1,394
|
|
Underlying RC profit (loss) before interest and tax
|
|
(306)
|
(405)
|
(535)
|
|
(1,171)
|
(1,383)
|
|
Taxation on an underlying RC basis
|
|
43
|
206
|
128
|
|
439
|
294
|
|
Underlying RC profit (loss) before interest
|
|
(263)
|
(199)
|
(407)
|
|
(732)
|
(1,089)
|
Top of page 15
other businesses & corporate (Rosneft)
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
Profit (loss) before interest and tax
|
|
-
|
-
|
623
|
|
(24,033)
|
2,688
|
|
Inventory holding (gains) losses*
|
|
-
|
-
|
(68)
|
|
-
|
(259)
|
|
RC profit (loss) before interest and tax
|
|
-
|
-
|
555
|
|
(24,033)
|
2,429
|
|
Net (favourable) adverse impact of adjusting items
|
|
-
|
-
|
190
|
|
24,033
|
291
|
|
Underlying RC profit (loss) before interest and tax
|
|
-
|
-
|
745
|
|
-
|
2,720
|
|
Taxation on an underlying RC basis
|
|
-
|
-
|
(73)
|
|
-
|
(269)
|
|
Underlying RC profit (loss) before interest
|
|
-
|
-
|
672
|
|
-
|
2,451
|
Top of page 16
Financial statements
Group income statement
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
|
|
|
|
|
|
|
|
|
Sales and other operating revenues (Note 6)
|
|
69,257
|
55,011
|
50,554
|
|
241,392
|
157,739
|
|
Earnings from joint ventures - after interest and
tax
|
|
189
|
498
|
243
|
|
1,128
|
543
|
|
Earnings from associates - after interest and
tax
|
|
129
|
275
|
896
|
|
1,402
|
3,456
|
|
Interest and other income
|
|
608
|
159
|
259
|
|
1,103
|
581
|
|
Gains on sale of businesses and fixed assets
|
|
173
|
1,866
|
286
|
|
3,866
|
1,876
|
|
Total revenues and other income
|
|
70,356
|
57,809
|
52,238
|
|
248,891
|
164,195
|
|
Purchases
|
|
34,101
|
39,993
|
32,089
|
|
141,043
|
92,923
|
|
Production and manufacturing expenses
|
|
6,841
|
7,193
|
6,397
|
|
28,610
|
25,843
|
|
Production and similar taxes
|
|
557
|
639
|
406
|
|
2,325
|
1,308
|
|
Depreciation, depletion and amortization (Note 7)
|
|
3,714
|
3,467
|
3,863
|
|
14,318
|
14,805
|
|
Net impairment and losses on sale of businesses and fixed assets
(Note 4)
|
|
3,629
|
417
|
1,223
|
|
30,522
|
(1,121)
|
|
Exploration expense
|
|
140
|
225
|
102
|
|
585
|
424
|
|
Distribution and administration expenses
|
|
3,654
|
3,262
|
3,365
|
|
13,449
|
11,931
|
|
Profit (loss) before interest and taxation
|
|
17,720
|
2,613
|
4,793
|
|
18,039
|
18,082
|
|
Finance costs
|
|
834
|
649
|
759
|
|
2,703
|
2,857
|
|
Net
finance (income) expense relating to pensions and other
post-retirement benefits
|
|
(16)
|
(16)
|
(8)
|
|
(69)
|
(2)
|
|
Profit (loss) before taxation
|
|
16,902
|
1,980
|
4,042
|
|
15,405
|
15,227
|
|
Taxation
|
|
5,741
|
3,964
|
1,464
|
|
16,762
|
6,740
|
|
Profit (loss) for the period
|
|
11,161
|
(1,984)
|
2,578
|
|
(1,357)
|
8,487
|
|
Attributable to
|
|
|
|
|
|
|
|
|
bp
shareholders
|
|
10,803
|
(2,163)
|
2,326
|
|
(2,487)
|
7,565
|
|
Non-controlling
interests
|
|
358
|
179
|
252
|
|
1,130
|
922
|
|
|
|
11,161
|
(1,984)
|
2,578
|
|
(1,357)
|
8,487
|
|
|
|
|
|
|
|
|
|
|
Earnings per share (Note 8)
|
|
|
|
|
|
|
|
|
Profit (loss) for the period attributable to bp
shareholders
|
|
|
|
|
|
|
|
|
Per
ordinary share (cents)
|
|
|
|
|
|
|
|
|
Basic
|
|
59.43
|
(11.45)
|
11.75
|
|
(13.10)
|
37.57
|
|
Diluted
|
|
58.36
|
(11.45)
|
11.66
|
|
(13.10)
|
37.33
|
|
Per
ADS (dollars)
|
|
|
|
|
|
|
|
|
Basic
|
|
3.57
|
(0.69)
|
0.70
|
|
(0.79)
|
2.25
|
|
Diluted
|
|
3.50
|
(0.69)
|
0.70
|
|
(0.79)
|
2.24
|
Top of page 17
Condensed group statement of comprehensive income
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2022
|
2022
|
2021
|
|
2022
|
2021
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) for the period
|
|
11,161
|
(1,984)
|
2,578
|
|
(1,357)
|
8,487
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to profit or
loss
|
|
|
|
|
|
|
|
|
Currency translation
differences(a)
|
|
2,142
|
(1,725)
|
(619)
|
|
(3,786)
|
(921)
|
|
Exchange (gains) losses on translation of foreign
operations reclassified to gain or loss on sale of businesses and
fixed assets(b)
|
|
(32)
|
-
|
36
|
|
10,759
|
36
|
|
Cash
flow hedges and costs of hedging
|
|
584
|
(142)
|
408
|
|
763
|
(259)
|
|
Share
of items relating to equity-accounted entities, net of
tax
|
|
392
|
(134)
|
104
|
|
402
|
44
|
|
Income
tax relating to items that may be reclassified
|
|
(108)
|
(54)
|
(24)
|
|
(334)
|
65
|
|
|
|
2,978
|
(2,055)
|
(95)
|
|
7,804
|
(1,035)
|
|
Items that will not be reclassified to profit or loss
|
|
|
|
|
|
|
|
|
Remeasurements of the net pension and other
post-retirement benefit liability or asset(c)
|
|
(1,508)
|
112
|
1,306
|
|
340
|
4,416
|
|
Cash
flow hedges that will subsequently be transferred to the balance
sheet
|
|
1
|
(1)
|
-
|
|
(4)
|
1
|
|
Income
tax relating to items that will not be reclassified
|
|
538
|
19
|
(434)
|
|
68
|
(1,317)
|
|
|
|
(969)
|
130
|
872
|
|
404
|
3,100
|
|
Other comprehensive income
|
|
2,009
|
(1,925)
|
777
|
|
8,208
|
2,065
|
|
Total comprehensive income
|
|
13,170
|
(3,909)
|
3,355
|
|
6,851
|
10,552
|
|
Attributable to
|
|
|
|
|
|
|
|
|
bp
shareholders
|
|
12,760
|
(4,042)
|
3,095
|
|
5,782
|
9,654
|
|
Non-controlling
interests
|
|
410
|
133
|
260
|
|
1,069
|
898
|
|
|
|
13,170
|
(3,909)
|
3,355
|
|
6,851
|
10,552
|
(a)
Fourth and third quarter 2022 are principally affected by movements
in the Pound Sterling against the US dollar. Full year 2022 is
principally affected by movements in the Russian rouble and Pound
Sterling against the US dollar.
(b) See Note 1 Basis of
preparation - Investment in
Rosneft.
(c) See Note 1 Basis
of preparation - Pensions and other
post-retirement benefits for further information.
Top of page 18
Condensed group statement of changes in equity
|
|
|
bp shareholders'
|
Non-controlling interests
|
Total
|
|
|
$ million
|
|
equity(a)
|
Hybrid bonds
|
Other interest
|
equity
|
|
At 1 January 2022
|
|
75,463
|
13,041
|
1,935
|
90,439
|
|
|
|
|
|
|
|
|
Total comprehensive income
|
|
5,782
|
519
|
550
|
6,851
|
|
Dividends
|
|
(4,365)
|
-
|
(294)
|
(4,659)
|
|
Cash
flow hedges transferred to the balance sheet, net of
tax
|
|
1
|
-
|
-
|
1
|
|
Issue of ordinary share capital(b)
|
|
820
|
-
|
-
|
820
|
|
Repurchase of ordinary share capital
|
|
(10,493)
|
-
|
-
|
(10,493)
|
|
Share-based payments, net of tax
|
|
847
|
-
|
-
|
847
|
|
Issue of perpetual hybrid bonds
|
|
(4)
|
374
|
-
|
370
|
|
Payments on perpetual hybrid bonds
|
|
15
|
(544)
|
-
|
(529)
|
|
Transactions
involving non-controlling interests, net of tax
|
|
(513)
|
-
|
(144)
|
(657)
|
|
At 31 December 2022
|
|
67,553
|
13,390
|
2,047
|
82,990
|
|
|
|
|
|
|
|
|
|
|
bp shareholders'
|
Non-controlling interests
|
Total
|
|
|
$ million
|
|
equity
|
Hybrid bonds
|
Other interest
|
equity
|
|
At 1 January 2021
|
|
71,250
|
12,076
|
2,242
|
85,568
|
|
|
|
|
|
|
|
|
Total comprehensive income
|
|
9,654
|
507
|
391
|
10,552
|
|
Dividends
|
|
(4,316)
|
-
|
(311)
|
(4,627)
|
|
Cash
flow hedges transferred to the balance sheet, net of
tax
|
|
(10)
|
-
|
-
|
(10)
|
|
Repurchase of ordinary share capital
|
|
(3,151)
|
-
|
-
|
(3,151)
|
|
Share-based payments, net of tax
|
|
632
|
-
|
-
|
632
|
|
Share
of equity-accounted entities' changes in equity, net of
tax
|
|
556
|
-
|
-
|
556
|
|
Issue of perpetual hybrid bonds
|
|
(26)
|
950
|
-
|
924
|
|
Payments on perpetual hybrid bonds
|
|
(7)
|
(492)
|
-
|
(499)
|
|
Transactions
involving non-controlling interests, net of tax
|
|
881
|
-
|
(387)
|
494
|
|
At 31 December 2021
|
|
75,463
|
13,041
|
1,935
|
90,439
|
(a)
In 2022 $9.2 billion of the opening foreign currency translation
reserve has been moved to the profit and loss account reserve as a
result of bp's decision to exit its shareholding in Rosneft and its
other businesses with Rosneft in Russia. For more information see
Note 1.
(b)
Relates to ordinary shares issued as non-cash consideration for the
acquisition of the public units of BP Midstream Partners
LP.
Top of page 19
Group balance sheet
|
|
|
31 December
|
31 December
|
|
$ million
|
|
2022
|
2021
|
|
Non-current assets
|
|
|
|
|
Property, plant and equipment
|
|
106,044
|
112,902
|
|
Goodwill
|
|
11,960
|
12,373
|
|
Intangible assets
|
|
10,200
|
6,451
|
|
Investments in joint ventures
|
|
12,400
|
9,982
|
|
Investments in associates(a)
|
|
8,201
|
21,001
|
|
Other investments
|
|
2,670
|
2,544
|
|
Fixed assets
|
|
151,475
|
165,253
|
|
Loans
|
|
1,271
|
922
|
|
Trade and other receivables
|
|
1,092
|
2,693
|
|
Derivative financial instruments
|
|
12,841
|
7,006
|
|
Prepayments
|
|
576
|
479
|
|
Deferred tax assets
|
|
3,908
|
6,410
|
|
Defined benefit pension plan surpluses
|
|
9,269
|
11,919
|
|
|
|
180,432
|
194,682
|
|
Current assets
|
|
|
|
|
Loans
|
|
315
|
355
|
|
Inventories
|
|
28,081
|
23,711
|
|
Trade and other receivables
|
|
34,010
|
27,139
|
|
Derivative financial instruments
|
|
11,554
|
5,744
|
|
Prepayments
|
|
2,092
|
2,486
|
|
Current tax receivable
|
|
621
|
542
|
|
Other investments
|
|
578
|
280
|
|
Cash and cash equivalents
|
|
29,195
|
30,681
|
|
|
|
106,446
|
90,938
|
|
Assets classified as held for sale (Note 3)
|
|
1,242
|
1,652
|
|
|
|
107,688
|
92,590
|
|
Total assets
|
|
288,120
|
287,272
|
|
Current liabilities
|
|
|
|
|
Trade and other payables
|
|
63,984
|
52,611
|
|
Derivative financial instruments
|
|
12,618
|
7,565
|
|
Accruals
|
|
6,398
|
5,638
|
|
Lease liabilities
|
|
2,102
|
1,747
|