BP(US:BP)2023-02-06 16:00Financial Performance - Underlying replacement cost profit for Q4 2022 was $4.8 billion, down from $8.2 billion in Q3 2022, impacted by lower oil and gas realizations and higher refinery maintenance activity[19] - Reported profit for Q4 2022 was $10.8 billion, compared to a loss of $2.2 billion in Q3 2022, with an underlying effective tax rate of 40% for Q4[19] - Operating cash flow for Q4 2022 was $13.6 billion, including a working capital release of $4.2 billion[7] - The company reported a net loss of $1,984 million for the full year 2022, compared to a profit of $8,487 million in 2021[161] - Total comprehensive income for the year was $13,170 million, a decrease of 3,909 million compared to the previous year[162] - The company reported a total comprehensive income of $10,759 million for the year 2022, compared to $36 million in 2021[180] Debt and Cash Management - Net debt reduced to $21.4 billion, marking the eleventh consecutive quarter of debt reduction[7] - The company reported a net debt of $42,590 million as of December 31, 2022, down from $62,946 million at the end of 2021[91] - Total net debt decreased to $21,422 million in Q4 2022 from $30,613 million in Q4 2021, reflecting a significant reduction of 30% year-over-year[102] - The company bought back a total of $7.4 billion of finance debt year to date, compared to $11.0 billion in the same period of 2021[74] - The cash and cash equivalents at the end of 2022 were $29,195 million, a decrease from $30,681 million in 2021[185] Capital Expenditure - Capital expenditure for Q4 2022 was $7.4 billion, with full-year capital expenditure totaling $16.3 billion[7] - BP plans to allocate $16-18 billion for capital expenditure in 2023, with a focus on disciplined investment allocation[20] - Capital expenditure for the full year 2022 was $16.3 billion, an increase from $12.8 billion in 2021, driven by acquisitions completed in Q4 2022[40] - The total capital expenditure for the fourth quarter of 2022 was $1,430 million, compared to $1,272 million in the fourth quarter of 2021, indicating a 12% increase[121] - The total capital expenditure for 2022 was $6,252 million, significantly higher than $2,872 million in 2021[130] Shareholder Returns - A $2.75 billion share buyback was announced, with a commitment to use 60% of surplus cash flow for share buybacks in 2023[8] - The dividend per ordinary share was increased by approximately 10% to 6.610 cents, supported by strong underlying performance[20] - The total dividends paid were $4,365 million, reflecting a commitment to shareholder returns[163] - BP raised its dividend by 21% since Q4 2021 and reduced net debt by $9.2 billion during 2022[35] Production and Reserves - The company expects reported upstream production to be broadly flat in 2023 compared to 2022, with slight increases in oil production and decreases in gas and low carbon energy[32] - bp's reported production for Q4 2022 was 956 mboe/d, which is 1.8% lower than the same period in 2021[54] - Reported production for the full year 2022 was 957 mboe/d, representing a 4.9% increase from the same period in 2021 due to the ramp-up of major projects[67] - The organic reserves replacement ratio for 2022 was 20%, a decrease from 50% in 2021, primarily due to price-related reserves reductions[29] Strategic Initiatives - BP completed the acquisition of Archaea Energy, enhancing its biogas strategy and contributing to its transformation into an Integrated Energy Company[9] - The company completed the acquisition of Archaea Energy Inc., enhancing its strategic bioenergy business[127] - The company has decided to focus on scaling businesses within its five transition growth engines, ceasing the search for new companies for its Launchpad accelerator[157] Environmental and Renewable Energy - The renewables pipeline at the end of Q4 2022 was 37.2 GW, with an increase of 10.3 GW during the quarter, primarily due to hydrogen support projects in Australia[68] - The installed renewables capacity increased to 2.2 GW in the fourth quarter of 2022, up from 1.9 GW in the fourth quarter of 2021[115] - The Cherry Point refinery in the US doubled its renewable diesel production capacity to over 7,000 barrels a day[166] - The company made a $20 million AUD investment in 5B Holdings Pty Ltd for solar power technology[175] Market Conditions - The average realizations for total hydrocarbons in the fourth quarter of 2022 were $57.60 per boe, compared to $43.68 per boe in the fourth quarter of 2021, reflecting a 32% increase[115] - The average realizations for liquids in Q4 2022 were $80.43 per barrel, compared to $62.57 per barrel in Q4 2021, indicating a 28.6% increase[144] - The average refining marker margin for the fourth quarter was $32.2 per barrel, compared to $15.1 per barrel in the same quarter of 2021[172]