Highlights.
Underlying replacement cost profit* $8.5 billion
• Underlying replacement cost profit was $8.5 billion, compared with $6.2 billion for the previous quarter. This was driven
by strong realized refining margins, continuing exceptional oil trading performance and higher liquids realizations. This
was partly offset by an average gas marketing and trading contribution, down from the exceptional result in the first
quarter, including an impact from the ongoing outage at Freeport LNG.
• Reported profit for the quarter was $9.3 billion, compared with a loss of $20.4 billion for the first quarter 2022. The
reported result for the second quarter includes a charge for adjusting items* before tax of $0.3 billion within which are
adverse fair value accounting effects* of $0.8 billion. The first quarter loss included a post-tax charge of $24.4 billion
relating to bp's decision to exit its 19.75% shareholding in Rosneft and its other businesses with Rosneft in Russia.
Operating cash flow* $10.9 billion; net debt* reduced to $22.8 billion
• Operating cash flow in the quarter of $10.9 billion includes $1.2 billion of Gulf of Mexico oil spill payments within a
working capital* build of $2.9 billion (after adjusting for inventory holding gains* and fair value accounting effects).
• During the second quarter bp executed share buybacks of $2.3 billion. The $2.5-billion programme announced with the
first-quarter 2022 results was completed on 22 July.
• Net debt fell for the ninth successive quarter to reach $22.8 billion at the end of the second quarter.
Growing distributions within an unchanged financial frame
• A resilient dividend is bp’s first priority within its disciplined financial frame.
• It is underpinned by an average 2021-5 cash balance point* of around $40 per barrel Brent, $11 per barrel RMM and $3
per mmBtu Henry Hub (all 2020 real).
• bp has announced a 10% increase in its quarterly dividend to 6.006 cents per ordinary share.
• This increase reflects the underlying performance and cash generation of the business, which has enabled strong
progress in delivering share buybacks and net debt reduction.
• Looking ahead, on average, based on bp's current forecasts, bp continues to expect to have capacity for an annual
increase in the dividend per ordinary share of around 4% through 2025 at around $60 per barrel Brent and subject to the
board’s discretion each quarter.
• During the second quarter bp generated surplus cash flow* of $6.6 billion and intends to execute a $3.5 billion share
buyback prior to announcing its third-quarter results. bp has now announced share buybacks from 2021 and first-half
2022 surplus cash flow equivalent to 60% of the cumulative surplus cash flow.
• For 2022 and subject to maintaining a strong investment grade credit rating, bp remains committed to using 60% of
surplus cash flow for share buybacks and intends to allocate the remaining 40% to further strengthen the balance
sheet.
Progressing transformation to an Integrated Energy Company
• In resilient hydrocarbons bp has strengthened its renewal options partnering with Petrobras in a successful Drill Stem
Test at the Cabo Frio discovery in the Campos Basin offshore Brazil and participating in the Timpan-1 discovery offshore
Indonesia. bp continues to high-grade its portfolio, agreeing to acquire a 35% interest in the undeveloped Bay du Nord
discovery offshore Canada as part of the transaction to sell its 50% interest in the Sunrise oil sands project.
• In convenience and mobility bp has continued to progress its EV charging strategy, recently announcing expansion plans
with Iberdrola in Spain and Portugal and signing a contract to operate China's largest fast(a) EV charging hub.
• In low carbon energy bp has announced plans to take a 40.5% stake in the AREH project to lead and operate one of the
world’s largest planned renewables and green hydrogen* energy hubs based in Western Australia; has announced its
intent to partner with Iberdrola to develop large-scale integrated green hydrogen production in Spain, Portugal and the
UK; and has continued to progress its renewables strategy, submitting bids for two offshore wind leases in the
Netherlands.
And later;
Dividends payable
BP today announced an interim dividend of 6.006 cents per ordinary share which is expected to be paid on 23 September 2022 to
ordinary shareholders and American Depositary Share (ADS) holders on the register on 12 August 2022. The ex-dividend date will be
11 August 2022. The corresponding amount in sterling is due to be announced on 6 September 2022, calculated based on the
average of the market exchange rates over three dealing days between 31 August 2022 and 2 September 2022. Holders of ADSs
are expected to receive $0.36036 per ADS (less applicable fees). The board has decided not to offer a scrip dividend alternative in
respect of the second quarter 2022 dividend. Ordinary shareholders and ADS holders (subject to certain exceptions) will be able to
participate in a dividend reinvestment programme. Details of the second quarter dividend and timetable are available at bp.com/
dividends and further details of the dividend reinvestment programmes are available at bp.com/drip.
https://www.bp.com/content/dam/bp/busin ... esults.pdf
Also posted on Company News here; viewtopic.php?p=518996#p518996
Ian.
