BP (BP) Q2 2024 earnings summary

Executive summary

• Achieved $8.1 billion in operating cash flow and $9.6 billion EBITDA in Q2 2024, with underlying RC profit of $2.8 billion and a 10% dividend increase to 8 cents per share.

• Net debt reduced by $1.4 billion to $22.6 billion, with $1.75 billion share buyback for Q2 and $3.5 billion buyback planned for H2 2024.

• Upstream production grew 3.4% in H1 2024, with plant reliability at 96–96.1% and refining availability at 96.4%.

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

• Focused on safety, efficiency, growth projects, and optimizing ROACE to drive shareholder returns.

Financial highlights

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

• Operating cash flow reached $8.1 billion in Q2 2024; net debt reduced to $22.6 billion.

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

• Q2 2024 profit attributable to shareholders was a loss of $0.1 billion, mainly due to $1.5 billion post-tax impairments.

• Capital expenditure for Q2 2024 was $3.7 billion.

Outlook and guidance

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

• Upstream production for 2024 expected slightly higher than 2023; Q3 2024 production expected to be lower than Q2.

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

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

• TGE EBITDA expected to grow to $3–$4 billion in 2025, supported by Bunge acquisition.