BP PLC Form 6-K Summary: Full Year and Q4 2024 Results
Business Context and Reporting Period
This Form 6-K reports the unaudited financial results for BP p.l.c. for the fourth quarter and full year ended December 31, 2024. The filing includes Management's Discussion and Analysis, consolidated financial statements, and updates on capitalization and indebtedness. The company operates across Gas & Low Carbon Energy, Oil Production & Operations, and Customers & Products segments.
Key Financial Metrics
| Metric ($ million) | Q4 2024 | Q4 2023 | Full Year 2024 | Full Year 2023 |
|---|---|---|---|---|
| Profit (Loss) Attributable to BP Shareholders | (1,959) | 371 | 381 | 15,239 |
| Underlying RC Profit | 1,169 | 2,991 | 8,915 | 13,836 |
| Operating Cash Flow | 7,427 | 9,377 | 27,297 | 32,039 |
| Capital Expenditure | (3,726) | (4,711) | (16,237) | (16,253) |
| Divestment Proceeds | 2,761 | 300 | 4,224 | 1,843 |
| Net Debt | 22,997 | 20,912 | 22,997 | 20,912 |
| Finance Debt | 59,547 | 51,954 | 59,547 | 51,954 |
| Adjusted EBITDA | 8,413 | 10,568 | 38,012 | 43,710 |
| ROACE (%) | 14.2% | 18.1% | 14.2% | 18.1% |
Note: Underlying RC Profit is a non-IFRS measure adjusted for inventory holding gains/losses and adjusting items.
Material Changes vs. Prior Period
- Q4 2024 Loss: Reported a loss of $2.0 billion attributable to shareholders, compared to a profit of $0.4 billion in Q4 2023. This was driven by a $3.4 billion pre-tax adverse impact from adjusting items, including $1.5 billion in impairments and $1.0 billion in fair value accounting effects.
- Underlying Performance: Underlying RC profit for Q4 2024 was $1.2 billion, down from $3.0 billion in Q4 2023, reflecting weaker realized refining margins, lower realizations, and seasonally lower volumes.
- Full Year 2024: Full-year profit attributable to shareholders was $0.4 billion, a significant decrease from $15.2 billion in 2023. Underlying RC profit for the full year was $8.9 billion, down from $13.8 billion in 2023.
- Segment Results:
- Gas & Low Carbon Energy: Underlying RC profit before interest and tax was $2.0 billion in Q4, up from $1.8 billion in Q3 2024, driven by higher realizations.
- Oil Production & Operations: Underlying RC profit before interest and tax was $2.9 billion in Q4, slightly up from $2.8 billion in Q3 2024, reflecting lower exploration write-offs offset by lower realizations.
- Customers & Products: Recorded an underlying loss of $0.3 billion in Q4, compared to a profit of $0.4 billion in Q3 2024, due to lower fuels margins and weaker refining margins.
- Balance Sheet: Net debt increased to $23.0 billion from $20.9 billion in Q4 2023, primarily due to acquired net debt from the Lightsource bp and bp Bunge Bioenergia transactions, partially offset by divestment proceeds and hybrid bond issuances.
Guidance, Outlook, and Risks
- Dividends and Buybacks: BP announced a Q4 2024 dividend of 8.0 cents per ordinary share. A $1.75 billion share buyback program was completed in February 2025, and another $1.75 billion buyback is intended prior to Q1 2025 reporting.
- 2025 Guidance:
- Reported upstream production expected to be lower than 2024 due to divestments in Egypt and Trinidad.
- Refining margins expected to be broadly flat relative to 2024, with turnaround activity weighted towards the first half of 2025.
- Divestment and other proceeds expected to be around $3 billion in 2025.
- Underlying ETR expected to be around 40%.
- Strategic Progress: Completed acquisitions of Lightsource bp and bp Bunge Bioenergia. Announced joint ventures including Arcius Energy (Egypt) and JERA Nex bp (offshore wind). Initiated gas flow at the Greater Tortue Ahmeyim (GTA) Phase 1 LNG project.
- Risks and Contingencies:
- Legal Proceedings: Ongoing Gulf of America oil spill settlement payments expected to be around $1.2 billion pre-tax in 2025.
- Market Volatility: Earnings remain sensitive to oil and gas prices, refining margins, and the strength of the US dollar.
- Regulatory Changes: UK Energy Profits Levy changes enacted in Q4 2024 increased the tax rate to 78% and extended the period to 2030.
Key Facts for Investor Verification
- Verify the impact of the $3.4 billion pre-tax adjusting items in Q4 2024, specifically the $1.5 billion in impairments and $1.0 billion in fair value accounting effects.
- Confirm the details of the $1.75 billion share buyback executed in February 2025 and the planned Q1 2025 buyback.
- Review the integration progress and financial contribution of the Lightsource bp and bp Bunge Bioenergia acquisitions.
- Monitor the execution of the $3 billion divestment target for 2025, including the planned sale of the US onshore wind business and the Gelsenkirchen refinery.
- Assess the impact of the UK Energy Profits Levy changes on future North Sea profitability and tax provisions.