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 portfolio reshaping through divestments and joint ventures.

• Upstream production rose 2% to 2,358mboe/d, 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, and adjusted EBITDA was $38.0bn.

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

Financial highlights

• Underlying RC profit for 2024 was $8.9bn, down from $13.8bn in 2023, mainly due to lower refining margins and realizations.

• Dividend per share increased by 10% and $7bn in share buybacks announced, including $1.75bn 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, recovery from Whiting outage, and 3-4% underlying growth in 2025.

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

• Focus shifting to cash generation, with updated targets and metrics to be provided at the capital markets event.

• Customers business to see growth from bioenergy and TravelCenters of America, with earnings supported by cost reduction.

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