BP (BP) Q3 2024 (Q&A) earnings summary

Executive summary

• Underlying profit for Q3 2024 was $2.3 billion, reflecting weaker refining margins and oil trading, partly offset by higher gas realizations; plant reliability exceeded 95% and refining availability was over 96% for the quarter.

• Reported profit for Q3 2024 was $0.2 billion, with $1.7 billion in impairments; a dividend of $0.08 per share and a $1.75 billion share buyback were announced for Q3.

• EV charging business grew 80% year-on-year, reaching one terawatt hour sold; 23 KBD of biogas supply is now online.

• 24 projects have been stopped or paused to high-grade the portfolio; asset divestments and cost savings initiatives are underway, targeting at least $2 billion in sustainable cash cost savings by end-2026.

• Focus remains on growing cash flow through the decade, balancing oil and gas with disciplined transition investments and maintaining a strong investment grade credit rating.

Financial highlights

• Q3 2024 underlying profit was $2.3 billion; reported profit was $0.2 billion after $1.7 billion in impairments.

• Share buybacks of $1.75 billion for Q3 and Q4, totaling $7 billion for 2024; net share repurchases for nine months 2024 were $5.5 billion.

• Dividend per ordinary share set at $0.08 for Q3 2024.

• Q3 2024 operating cash flow was $6.8 billion; capital expenditure for Q3 was $4.5 billion, with full-year 2024 CapEx expected around $16 billion.

• Net debt at end-Q3 2024 was $24.3 billion, up from $22.6 billion at end-Q2 2024.

Outlook and guidance

• Operational growth is expected through 2025, with five new major upstream projects and more LNG contracts coming online.

• Q4 2024 upstream production expected to be lower than Q3; full-year 2024 upstream production expected to be slightly higher than 2023.

• Cost savings of over $500 million targeted for 2025, progressing toward $2 billion by end-2026.

• Capital expenditure for 2024 expected around $16 billion; divestment and other proceeds to exceed $3 billion.

• Guidance for 2025 buybacks and capital allocation will be updated in February.