BP(US:BP)2025-04-29 14:29Financial Performance - In Q1 2025, BP reported a profit attributable to shareholders of $687 million, a significant recovery from a loss of $1.96 billion in Q4 2024[4]. - Underlying replacement cost (RC) profit for Q1 2025 was $1.4 billion, up from $1.2 billion in Q4 2024, but down from $2.7 billion in Q1 2024[10][17]. - Profit before taxation for Q1 2025 was $3,130 million, compared to a loss of $503 million in Q4 2024 and a profit of $4,633 million in Q1 2024[54]. - Total revenues and other income for Q1 2025 were $47,880 million, a decrease of 4.3% compared to Q1 2024's $49,961 million[54]. - Total sales and other operating revenues for the first quarter of 2025 amounted to $46,905 million, a decrease from $48,880 million in the first quarter of 2024[81]. - The profit for the period in the first quarter of 2025 was $982 million, a significant recovery from a loss of $1,620 million in the fourth quarter of 2024[112]. - Total comprehensive income for Q1 2025 was $1,896 million, compared to a loss of $2,448 million in Q4 2024[56]. - Earnings per share for Q1 2025 were $0.26 (basic and diluted), compared to a loss of $0.74 in Q4 2024[56]. Cash Flow and Capital Expenditure - Operating cash flow for Q1 2025 was $2.8 billion, a decrease of approximately $4.6 billion compared to Q4 2024, primarily due to seasonal inventory effects[12][17]. - Capital expenditure in Q1 2025 was $3.6 billion, down from $4.3 billion in Q1 2024, reflecting reduced spending on low carbon energy[17]. - BP expects 2025 capital expenditure to be around $14.5 billion and divestment proceeds of $3-4 billion for the year[9][17]. - The company issued perpetual subordinated hybrid securities of $500 million during Q1 2025 to fund BP Alternative Energy Investments Ltd[59]. - Organic capital expenditure for the first quarter of 2025 was $3,440 million, a decrease from $4,229 million in the fourth quarter of 2024 and $3,979 million in the first quarter of 2024[97]. - Inorganic capital expenditure for the first quarter of 2025 was $183 million, compared to a negative $503 million in the fourth quarter of 2024 and $299 million in the first quarter of 2024[97]. Debt and Equity - BP's net debt at the end of Q1 2025 was $27 billion, an increase from $24 billion at the end of Q1 2024, driven by lower operating cash flow[12][17]. - As of March 31, 2025, the company's net debt stood at $26,968 million, an increase from $22,997 million at December 31, 2024, and $24,015 million at March 31, 2024[92]. - Total equity decreased to $77,952 million as of March 31, 2025, compared to $78,318 million at December 31, 2024, and $84,940 million at March 31, 2024[107]. - The company's gearing ratio increased to 25.7% as of March 31, 2025, up from 22.7% at December 31, 2024, and 22.0% at March 31, 2024[92]. Production and Operational Performance - Upstream production for Q1 2025 was 2,239 mboe/d, reflecting a 5.8% decline from 2,378 mboe/d in Q1 2024[21]. - The company achieved upstream plant reliability of 95.4% and refining availability of 96.2% in Q1 2025, supporting strong operational performance[7][17]. - Reported production for gas & low carbon energy in Q1 2025 was 764 mboe/d, a 16.5% decrease from 914 mboe/d in Q1 2024[26]. - BP's upstream unit production costs for Q1 2025 were $6.34 per boe, an increase of 5.6% from $6.00 per boe in Q1 2024[21]. - The average realization for total hydrocarbons in Q1 2025 was $45.38 per boe, up 23.8% from $36.64 per boe in Q1 2024[35]. - The average realization for natural gas in Q1 2025 was $4.74 per mcf, significantly higher than $2.66 per mcf in Q1 2024, representing an increase of approximately 77.5%[41]. Dividends and Shareholder Returns - The company announced a dividend of 8 cents per ordinary share for Q1 2025, maintaining a resilient dividend policy[15][17]. - An interim dividend of 8.000 cents per ordinary share is expected to be paid on June 27, 2025, with the corresponding amount in sterling to be announced on June 10, 2025[89]. - Expectations regarding bp's shareholder returns include dividends and share buybacks, with specific amounts and timing yet to be determined[179]. Strategic Initiatives and Future Outlook - BP has made six exploration discoveries and started three major projects in 2025, indicating progress in its growth strategy[5][7]. - BP plans to sell its mobility and convenience business in Austria, targeting to close the divestment by the end of 2025[44]. - The company plans to sell its US onshore wind energy business, with a carrying amount of assets classified as held for sale at $569 million[72]. - BP is reviewing its Castrol business and plans to divest its mobility and convenience business in Austria[179]. - BP plans to exit its shareholding in Rosneft, impacting its overall global economic and business conditions[180]. - The company anticipates future project start-ups and plans related to its upstream production and low carbon energy business[179].