BP (BP) Q2 2024 earnings summary

Executive summary

• Achieved 96%+ upstream plant reliability and 96.4% refining availability in Q2 2024, supporting strong operational performance and 3.4% upstream production growth year-over-year.

• Operating cash flow reached $8.1 billion in Q2 2024, enabling net debt reduction to $22.6 billion and supporting a 10% dividend increase and $1.75 billion buyback for Q2, with $3.5 billion buyback planned for H2 2024.

• Underlying replacement cost profit for Q2 2024 was $2.8 billion, with adjusted EBITDA at $9.6 billion.

• Strategic actions included FID on Kaskida in the Gulf of Mexico, full ownership of bp Bunge Bioenergia, and scaling back new biofuels projects.

• Focused on delivering $2 billion in operating cost reductions, with $500 million of cash cost savings targeted for 2025.

Financial highlights

• Operating cash flow reached $8.1 billion in Q2 2024, with underlying RC profit at $2.8 billion and adjusted EBITDA at $9.6 billion.

• Net debt reduced to $22.6 billion, down $1.4 billion sequentially.

• Dividend per share increased by 10% to 8 cents; $1.75 billion share buyback for Q2 and $3.5 billion committed for H2 2024.

• Impairments of $1.5 billion in Q2, mainly related to refining and capacity optimization.

• Capital expenditure for Q2 2024 was $3.7 billion; H1 2024: $8.0 billion.

Outlook and guidance

• Confident in delivering $2 billion in cost reductions, with $500 million in 2025 and potential for acceleration.

• 2024 capital expenditure expected around $16 billion; divestment proceeds $2–$3 billion, weighted to H2.

• Upstream production for 2024 expected slightly higher than 2023, with oil production & operations up and gas & low carbon energy down.

• Buybacks of $1.75 billion each in Q3 and Q4 2024, with at least 80% of surplus cash allocated to buybacks over time.

• Income taxes paid in Q3 2024 expected to be ~$1 billion higher than Q2 due to timing of payments.