BP (BP) Q4 2024 (Q&A) earnings summary

Executive summary

• Achieved significant strategic progress in 2024, including 10 new FIDs, new access in Iraq and India, and divestments of non-core assets.

• Upstream production rose 2% year-over-year to 2.36 million barrels per day, with plant reliability above 95%.

• Announced a fundamental reset of strategy to be detailed at the upcoming capital markets event.

• Operating cash flow for 2024 was $27.3bn, adjusted EBITDA $38.0bn, and underlying RC profit $8.9bn, down from $13.8bn in 2023.

• Structural cost reductions of $0.8bn achieved in 2024, with a target of $2bn by end-2026.

Financial highlights

• Dividend per share increased by 10% year-over-year.

• $7 billion in share buybacks announced for the year, including $1.75 billion in Q4.

• Adjusted EBITDA for 2024: $38.0bn (vs $43.7bn 2023).

• Net debt at year-end: $23.0bn (vs $20.9bn end-2023); gearing at 22.7%.

• Return on average capital employed (ROACE) for 2024: 14.2% (vs 18.1% 2023).

Outlook and guidance

• Expecting continued cost improvements and underlying growth of 3%-4% year-over-year.

• Whiting refinery outage recovery and less complex turnarounds anticipated to boost 2025 profitability.

• Focus shifting from EBITDA targets to cash generation; updated targets and metrics to be provided at Capital Markets Day.

• Q1 2025 upstream production expected to be lower due to divestments and base decline; refining margins to remain low.

• 2025 divestment and other proceeds expected around $3bn, weighted to H2.