BP(US:BP)2024-07-30 11:29Financial Performance - Total adjusted EBITDA for the second quarter of 2024 was $4,891 million, up from $4,389 million in the same period of 2023, reflecting a 11.4% increase[1] - Underlying RC profit before interest and tax for the second quarter of 2024 was $3,094 million, compared to $2,777 million in the same period of 2023, representing an increase of 11.4%[9] - The company reported a loss of $133 million in the second quarter of 2024 for the customers & products segment, compared to a profit of $555 million in the same period of 2023[21] - bp reported an underlying RC profit before interest and tax of $1,149 million for Q2 2024, compared to $796 million in Q2 2023, reflecting a 44.3% increase year-over-year[40] - BP reported a profit before taxation of $1,254 million for Q2 2024, down from $3,494 million in Q2 2023, representing a decrease of 64%[72] - In the second quarter of 2024, bp reported a loss attributable to shareholders of $129 million, compared to a profit of $2,263 million in the first quarter of 2024 and $1,792 million in the second quarter of 2023[118] - Profit for the second quarter of 2024 was $70 million, a significant decrease from $1,953 million in the second quarter of 2023[161] - Underlying RC profit before interest and tax for the first half of 2024 was $11,364 million, compared to $14,822 million in the first half of 2023, reflecting a decline of approximately 23%[161] Production and Sales - Reported production for the second quarter of 2024 was 1,481 mboe/d, an 8.2% increase compared to the second quarter of 2023[11] - The average realization for liquids in the second quarter of 2024 was $73.01 per barrel, compared to $69.19 per barrel in the same period of 2023, indicating a 4.1% increase[19] - The average realizations for bp's liquids in the second quarter of 2024 were $73.73 per barrel, up from $69.76 per barrel in the second quarter of 2023[134] - The average Brent oil price for the second quarter of 2024 was $84.97 per barrel, compared to $78.05 per barrel in the second quarter of 2023[163] - bp's production and similar taxes increased to $484 million in Q2 2024, up from $404 million in Q2 2023, reflecting a 19.8% increase[51] - Total hydrocarbons production cost in the US for the second quarter of 2024 was $44.26 per barrel of oil equivalent (boe), an increase from $40.84 per boe in the second quarter of 2023[163] Capital Expenditure - Capital expenditure for the second quarter of 2024 was $1,534 million, compared to $1,478 million in the same period of 2023, reflecting a 3.8% increase[19] - The company achieved a total capital expenditure of $1,045 million in Q2 2024, down from $1,858 million in Q2 2023, indicating a 43.7% decrease[43] - BP's total cash capital expenditure for Q2 2024 was $3,691 million, a decrease of 14% compared to $4,314 million in Q2 2023[73] - Organic capital expenditure for the second quarter of 2024 was $3,586 million, an increase from $3,233 million in the second quarter of 2023[123] - bp's capital expenditure in the US for the second quarter of 2024 was $1,636 million, down from $2,661 million in the second quarter of 2023[123] Investments and Projects - bp has made a final investment decision on the Kaskida project, expected to have a production capacity of 80,000 barrels of crude oil per day[14] - bp's investment in Hysata to expand high-efficiency electrolyser technology production amounted to $10 million, highlighting the company's commitment to renewable energy[45] - The Hyport green hydrogen project in Duqm, Oman, is expected to produce approximately 57,000 tonnes of green hydrogen annually, with bp acquiring a 49% stake[38] - bp announced a new joint venture with ADNOC in Egypt, with BP holding a 51% stake, expected to complete in the second half of 2024[78] - In June 2024, Castrol announced a $50 million investment in Gogoro Inc. to diversify beyond its core lubricants and fluids business[109] Financial Position - The total assets of bp as of June 30, 2024, were $273,384 million, down from $280,294 million at the end of 2023, indicating a 2.9% decrease[56] - The company reported total liabilities of $191,185 million as of June 30, 2024, a decrease from $194,801 million at the end of 2023, indicating a reduction of 1.3%[71] - BP's cash and cash equivalents at the end of Q2 2024 were $34,891 million, up from $33,030 million at the end of Q1 2024, marking an increase of 5.6%[74] - bp's net debt as of June 30, 2024, was $22,614 million, a decrease from $24,015 million at the end of Q1 2024[100] - The total equity of bp as of June 30, 2024, was $82,199 million, down from $84,940 million at the end of Q1 2024[100] Impairments and Charges - Net impairment charges for Q2 2024 were $1,309 million, compared to $1,269 million in Q2 2023, while total net charges for the first half of 2024 reached $2,046 million, up from $1,357 million in the same period last year[91] - The net impairment and losses on sale of businesses and fixed assets for gas & low carbon energy in the second quarter of 2024 were $(590) million, compared to $(1,058) million in the second quarter of 2023[124] Dividends and Share Repurchases - The company announced an interim dividend of 8.000 cents per ordinary share, expected to be paid on September 20, 2024[99] - Dividends paid per ordinary share in the second quarter of 2024 were 7.270 cents, compared to 6.610 cents in the second quarter of 2023[119] - bp repurchased 116 million ordinary shares for $1,751 million during Q2 2024, with an additional 125 million shares repurchased after the reporting period[116] Operational Insights - The company is focused on developing low carbon opportunities and transitioning to a lower carbon economy, which may increase costs and affect financial performance[165] - Financial performance is influenced by fluctuating prices of oil, gas, and refined products, as well as macroeconomic outlook[165] - The company faces risks from geopolitical developments, regulatory changes, and competition, which could disrupt operations and financial performance[165] - The company emphasizes the importance of attracting and retaining talent to ensure effective strategy delivery in a competitive market[165] Taxation and Adjustments - The net adverse impact of adjusting items before interest and tax for the first half of 2024 was $3,982 million, contrasting with a net favorable impact of $3,495 million in the first half of 2023[161] - bp's net adverse impact of adjusting items for H1 2024 was $168 million, compared to a favorable impact of $79 million in H1 2023[44] - The effective tax rate on replacement cost profit or loss is calculated to exclude the impact of price changes on inventory, aiding meaningful comparisons[172] Miscellaneous - The company reported a deferred tax asset of $1,180 million as of June 30, 2024, down from $1,320 million as of December 31, 2023[157] - The Gulf of Mexico oil spill payables and provisions as of June 30, 2024, were $7,785 million, a decrease from $8,735 million as of December 31, 2023[157] - The company reported a decrease in the carrying amount of assets classified as held for sale to $1,512 million as of June 30, 2024, from $1,408 million previously[89]