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First quarter 2023 results

2 May 2023

Performing while transforming

  • Underlying RC profit $5.0bn; Net debt reduced to $21.2bn
  • Further $1.75bn share buyback announced
  • Delivering resilient hydrocarbons - advancing two major projects*; intention to form JV with ADNOC
  • Continued progress in transformation to an IEC - agreement to acquire TravelCenters of America; advancing EV charging strategy
Financial summary
$ million
First quarter 2023 Fourth quarter 2022 First quarter 2022
Profit (loss) for the period attributable to bp shareholders 8,218 10,803 (20,384)
Inventory holding (gains) losses*, net of tax 452 1,066 (2,664)
Replacement cost (RC) profit (loss)* 8,670 11,869 (23,048)
Net (favourable) adverse impact of adjusting items*, net of tax (3,707) (7,062)
Underlying RC profit* 4,963 4,807 6,245 
Operating cash flow* 7,622 13,571 8,210 
Capital expenditure* (3,625) (7,369) (2,929) 
Divestment and other proceeds(a) 800 614 1,181 
Surplus cash flow* 2,283 4,985 4,037
Net issue (repurchase) of shares (2,448) (3,240) (1,592)
Net debt*(b) 21,232 21,422 27,457 
Announced dividend per ordinary share (cents per share) 6.610 6.610 5.460
Underlying RC profit per ordinary share* (cents) 27.74 26.44 32.00 
Underlying RC profit per ADS* (dollars) 1.66 1.59 1.92 


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.
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
(a) Divestment proceeds are disposal proceeds as per the condensed group cash flow statement. See page 3 for more information on divestment and other proceeds.
(b) See Note 9 for more information.

RC profit (loss), underlying RC profit (loss), surplus cash flow, net debt, underlying RC profit per ordinary share and underlying RC profit per ADS are non-IFRS measures. Inventory holding (gains) losses and adjusting items are non-IFRS adjustments.
* For items marked with an asterisk throughout this document, definitions are provided in the Glossary on page 30.

Further information




bp press office, London: +44 (0)20 7496 4076, bppress@bp.com

Cautionary statement


In order to utilize the ‘safe harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995 (the ‘PSLRA’) and the general doctrine of cautionary statements, bp is providing the following cautionary statement: The discussion in this results announcement contains certain forecasts, projections and forward-looking statements - that is, statements related to future, not past events and circumstances - with respect to the financial condition, results of operations and businesses of bp and certain of the plans and objectives of bp with respect to these items. These statements may generally, but not always, be identified by the use of words such as ‘will’, ‘expects’, ‘is expected to’, ‘aims’, ‘should’, ‘may’, ‘objective’, ‘is likely to’, ‘intends’, ‘believes’, ‘anticipates’, ‘plans’, ‘we see’ or similar expressions.

In particular, the following, among other statements, are all forward looking in nature: plans, expectations and assumptions regarding oil and gas demand, supply, prices or volatility; expectations regarding upstream production and bp’s customers & products business; expectations regarding refining margins; expectations regarding marketing margins and volumes; expectations regarding turnaround activity; expectations regarding production from oil production & operations and from gas & low carbon energy; expectations regarding bp’s business, financial performance, results of operations and cash flows; expectations regarding future project start-ups; expectations with regards to bp’s transformation to an IEC; expectations regarding price assumptions used in accounting estimates; bp’s plans and expectations regarding the amount and timing of share buybacks and quarterly and interim dividends; plans and expectations regarding bp’s credit rating, including in respect of maintaining a strong investment grade credit rating; plans and expectations regarding the allocation of surplus cash flow to share buybacks and strengthening the balance sheet; plans and expectations with respect to the total depreciation, depletion and amortization and the other businesses & corporate underlying annual charge for 2023; plans and expectations regarding the factors taken into account in setting the dividend per ordinary share and buyback each quarter; plans and expectations regarding investments, collaborations and partnerships in electric vehicle (EV) charging infrastructure; plans and expectations related to bp’s transition growth engines of bioenergy, convenience, EV charging, renewables & power and hydrogen; plans and expectations regarding the amount or timing of payments related to divestment and other proceeds, and the timing, quantum and nature of certain acquisitions and divestments, including the amount and timing of proceeds; expectations regarding the underlying effective tax rate for 2023; expectations regarding the timing and amount of future payments relating to the Gulf of Mexico oil spill; plans and expectations regarding capital expenditure, including that capital expenditure will be $16-18 billion in 2023; expectations regarding legal proceedings, including those related to climate change; plans and expectations regarding projects, joint ventures, partnerships, agreements and memoranda of understanding with commercial entities and other third party partners.

By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will or may occur in the future and are outside the control of bp.

Actual results or outcomes, may differ materially from those expressed in such statements, depending on a variety of factors, including: the extent and duration of the impact of current market conditions including the volatility of oil prices, the effects of bp’s plan to exit its shareholding in Rosneft and other investments in Russia, the impact of COVID-19, overall global economic and business conditions impacting bp’s business and demand for bp’s products as well as the specific factors identified in the discussions accompanying such forward-looking statements; changes in consumer preferences and societal expectations; the pace of development and adoption of alternative energy solutions; developments in policy, law, regulation, technology and markets, including societal and investor sentiment related to the issue of climate change; the receipt of relevant third party and/or regulatory approvals; the timing and level of maintenance and/or turnaround activity; the timing and volume of refinery additions and outages; the timing of bringing new fields onstream; the timing, quantum and nature of certain acquisitions and divestments; future levels of industry product supply, demand and pricing, including supply growth in North America and continued base oil and additive supply shortages; OPEC+ quota restrictions; PSA and TSC effects; operational and safety problems; potential lapses in product quality; economic and financial market conditions generally or in various countries and regions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations and policies, including related to climate change; changes in social attitudes and customer preferences; regulatory or legal actions including the types of enforcement action pursued and the nature of remedies sought or imposed; the actions of prosecutors, regulatory authorities and courts; delays in the processes for resolving claims; amounts ultimately payable and timing of payments relating to the Gulf of Mexico oil spill; exchange rate fluctuations; development and use of new technology; recruitment and retention of a skilled workforce; the success or otherwise of partnering; the actions of competitors, trading partners, contractors, subcontractors, creditors, rating agencies and others; bp’s access to future credit resources; business disruption and crisis management; the impact on bp’s reputation of ethical misconduct and non-compliance with regulatory obligations; trading losses; major uninsured losses; the possibility that international sanctions or other steps taken by any competent authorities or any other relevant persons may limit or otherwise impact, bp’s ability to sell its interests in Rosneft, or the price for which bp could sell such interests; the actions of contractors; natural disasters and adverse weather conditions; changes in public expectations and other changes to business conditions; wars and acts of terrorism; cyber-attacks or sabotage; and other factors discussed elsewhere in this report, as well as those factors discussed under “Risk factors” in bp’s Annual Report and Form 20-F 2022 as filed with the US Securities and Exchange Commission.