BP(US:BP)2022-05-02 16:00Financial Performance - Reported loss for the first quarter 2022 was $20.4 billion, compared to a profit of $2.3 billion in the fourth quarter of 2021[8] - Underlying replacement cost profit for the first quarter was $6.2 billion, an increase from $4.1 billion in the previous quarter[9] - The replacement cost profit before interest and tax for Q1 2022 was $3,831 million, up from $1,479 million in Q1 2021, reflecting a significant increase in profitability[69] - Underlying replacement cost profit before interest and tax for Q1 2022 was $4,683 million, compared to $1,565 million in Q1 2021, indicating strong operational performance[70] - Total adjusted EBITDA for Q1 2022 was $6,163 million, an increase from $3,195 million in Q1 2021, showcasing improved earnings before interest, taxes, depreciation, and amortization[76] - Total sales and other operating revenues for Q1 2022 were $49,258 million, a decrease from $50,554 million in Q4 2021[154] - BP's revenue from contracts with customers in Q1 2022 was $46,920 million, compared to $42,628 million in Q1 2021[154] - Total comprehensive income for the first quarter of 2022 was $(9,364) million, a decrease from $3,355 million in the fourth quarter of 2021[113] Cash Flow and Debt Management - Operating cash flow for the first quarter was $8.2 billion, up from $6.1 billion in the same period last year[22] - Net debt reduced to $27.5 billion at the end of the first quarter, down from $30.6 billion at the end of the fourth quarter 2021[25] - Surplus cash flow generated in the first quarter was $4.1 billion, with a $2.5 billion share buyback announced[9] - BP plans to use 60% of surplus cash flow for share buybacks and allocate the remaining 40% to strengthen the balance sheet[41] - The company completed a share buyback program, repurchasing 300 million ordinary shares for $1,592 million in the first quarter of 2022[157] - The net cash provided by operating activities for the first quarter of 2022 was $8,210 million, an increase from $6,116 million in the fourth quarter of 2021[123] - BP's net debt including leases was $36,129 million in the first quarter of 2022, down from $39,411 million in the fourth quarter of 2021[174] Capital Expenditure - Capital expenditure in the first quarter was $2.9 billion, compared to $3.8 billion in the first quarter of 2021[23] - Total capital expenditure for the first quarter 2022 was $715 million, compared to $1,224 million in the fourth quarter 2021[91] - Organic capital expenditure for the first quarter of 2022 was $2,573 million, compared to $3,512 million in the fourth quarter of 2021[169] - Capital expenditure for Q1 2022 was $1,254 million, a decrease from $1,319 million in Q1 2021, reflecting a strategic focus on cost management[76] Production and Operations - Reported production for Q1 2022 was 966 mboe/d, a 6.2% increase compared to Q1 2021, mainly due to major project start-ups[52] - Liquids production for Q1 2022 was 948 mb/d, while natural gas production was 1,964 mmcf/d, reflecting a slight decrease in overall production compared to Q1 2021[77] - BP's total hydrocarbons production in the first quarter 2022 was 750 mboe/d, down from 1,126 mboe/d in the fourth quarter 2021[108] - BP expects second-quarter 2022 underlying upstream production to be lower than Q1 2022, primarily in gas & low carbon energy[35] Strategic Initiatives - Major project start-up in the Gulf of Mexico and creation of Azule Energy joint venture in Angola were highlighted as part of the company's transformation strategy[10] - The company continues to progress its EV charging strategy and has plans to invest £1 billion in the UK over the next decade[10] - The company announced a strategic partnership with Volkswagen Group to roll out an EV fast charging network in Europe and the UK, aiming for up to 8,000 new charge points by the end of 2024[85] - The company entered into a 10-year strategic agreement with Nuseed to accelerate market adoption of sustainable low-carbon biofuel feedstock[86] Impairments and Charges - Significant pre-tax charges of $30.8 billion were recorded as adjusting items, primarily due to the exit from Rosneft[8] - BP reported a total pre-tax charge of $25,520 million in Q1 2022 related to its investment in Rosneft and other businesses in Russia[139] - The impairment charge of $13,479 million was primarily due to the loss of significant influence over Rosneft, with an additional $11,082 million reclassified from equity to the income statement[135][136][147] - The gas & low carbon energy segment reported a net impairment charge of $252 million in Q1 2022, compared to $122 million in the same period of 2021[145] - The oil production & operations segment experienced a net impairment charge of $624 million in Q1 2022, up from $99 million in Q1 2021[146] Shareholder Information - Dividend announced for the first quarter was 5.46 cents per ordinary share, payable in June 2022[8] - BP shareholders' equity decreased to $63,299 million as of March 31, 2022, down from $75,463 million at the beginning of the year[116] - BP's total equity decreased to $78,519 million in the first quarter of 2022 from $90,439 million in the fourth quarter of 2021[163]