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1Q 2023 quarterly results

Momentum continues to build as we deliver another quarter of resilient earnings, growing returns for investors, and disciplined investment in our integrated energy company strategy

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1Q at a glance

The key numbers from our first quarter 2023 results

bp's first quarter 2023 results highlights
bp's first quarter 2023 results highlights
Bernard Looney, chief executive officer
“This has been a quarter of strong performance and strategic delivery as we continue to focus on safe and reliable operations. Momentum continues to build across our integrated energy company strategy, with the start-up of Mad Dog Phase 2, our agreement to acquire TravelCenters of America and progress towards hydrogen and CCS projects in the UK. And importantly we continue to deliver for shareholders, through disciplined investment, lowering net debt and growing distributions.” Bernard Looney , chief executive officer


Underlying replacement cost profit* $5.0 billion

  • Underlying replacement cost profit for the quarter was $5.0 billion, compared with $4.8 billion for the previous quarter. Compared to the fourth quarter 2022, the result reflects an exceptional gas marketing and trading result, a lower level of refinery turnaround activity and a very strong oil trading result, partly offset by lower liquids and gas realizations and lower refining margins.
  • Reported profit for the quarter was $8.2 billion, compared with $10.8 billion for the fourth quarter 2022. The reported result for the first quarter is adjusted for inventory holding losses* of $0.5 billion (net of tax) and a net favourable impact of adjusting items* of $3.7 billion (net of tax) to derive the underlying replacement cost profit. Adjusting items include favourable fair value accounting effects* of $4.3 billion, primarily resulting from the decline in the forward price of LNG compared to the end of the fourth quarter.

Net debt* reduced to $21.2 billion; further $1.75 billion share buyback announced

  • Operating cash flow* in the quarter was $7.6 billion including a working capital* build (after adjusting for inventory holding losses, fair value accounting effects and other adjusting items) of $1.4 billion (see page 27).
  • Capital expenditure* in the first quarter was $3.6 billion. bp continues to expect capital expenditure, including inorganic capital expenditure*, of $16-18 billion in 2023.
  • During the first quarter, bp completed $2.2 billion of share buybacks from surplus cash flow*. The $2.75 billion share buyback programme announced with the fourth quarter results was completed on 28 April 2023.
  • During the first quarter, bp also completed share buybacks of $225 million as part of the $675 million programme announced on 7 February 2023 to offset the expected full-year dilution from the vesting of awards under employee share schemes in 2023.
  • In the first quarter, bp generated surplus cash flow of $2.3 billion and intends to execute a $1.75 billion share buyback from surplus cash flow prior to announcing its second quarter 2023 results.
  • bp remains committed to using 60% of 2023 surplus cash flow for share buybacks, subject to maintaining a strong investment grade credit rating.
  • Based on bp’s current forecasts, at around $60 per barrel Brent and subject to the board’s discretion each quarter, bp expects to be able to deliver share buybacks of around $4.0 billion per annum, at the lower end of its $14-18 billion capital expenditure range, and have capacity for an annual increase in the dividend per ordinary share of around 4%.
  • Net debt fell to $21.2 billion at the end of the first quarter.

Continued progress in transformation to an Integrated Energy Company

  • In resilient hydrocarbons, bp has announced the safe delivery of its Mad Dog Phase 2 project in the Gulf of Mexico. In addition, the KGD6-MJ project offshore India is in the final stages of commissioning with two wells opened to flow gas and full start-up expected during the second quarter. bp intends to form a new joint venture with ADNOC that will be focused on gas development, together making a non-binding offer for a 50% interest in NewMed Energy as a significant first step. bp is moving forward with concept selection for Kaskida in the Gulf of Mexico and bp and partners have confirmed they will progress evaluation of development concept for the bp-operated Greater Tortue Ahmeyim Phase 2 project. During the quarter, bp completed the divestment of its interest in the Toledo refinery and its Algerian upstream assets.
  • In convenience and mobility, bp is advancing its strategy – agreeing to acquire TravelCenters of America, one of the biggest networks of highway travel centres in the US. bp has also continued to progress its EV charging strategy – signing a strategic collaboration agreement with Iberdrola in Spain and Portugal and signing a global mobility agreement with Uber.
  • In low carbon energy, bp has signed an agreement to take a 40% stake in the Viking carbon capture and storage (CCS) project in the North Sea; three bp-led hydrogen and CCS projects in the north-east England have been chosen by the UK government to progress to the next stage of development; and bp has launched plans for a low-carbon green energy cluster in Spain's Valencia region to include world-scale green hydrogen* production at bp’s Castellón refinery with up to 2GW of electrolysis capacity by 2030.
* For items marked with an asterisk throughout this document, definitions are provided in the Glossary on page 30.

Results presentation

bp's chief financial officer, Murray Auchincloss hosted a webcast covering our results for the first quarter 2023. The results presentation was followed by a question and answer session.


1Q 2023 results presentation