First quarter 2025 results

(a) Divestment proceeds are disposal proceeds as per the condensed group cash flow statement.
(b) See Note 9 for more information.

RC profit (loss), underlying RC profit, net debt, adjusted EBITDA, 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. 

Highlights 

1Q25 underlying replacement cost (RC) profit* $1.4 billion

• Underlying RC profit for the quarter was $1.4 billion, compared with $1.2 billion for the previous quarter. Compared with the fourth quarter 2024, the underlying result reflects lower impact from turnaround activity, stronger realized refining margins, lower other businesses & corporate underlying charge, partly offset by a weak gas marketing and trading result. The underlying effective tax rate (ETR)* in the quarter was 50%.
  
• Reported profit for the quarter was $0.7 billion, compared with a loss of $2.0 billion for the fourth quarter 2024. The reported result for the first quarter is adjusted for inventory holding gains* of $0.2 billion (pre-tax) and a net adverse impact of adjusting items* of $0.4 billion (pre-tax) to derive the underlying RC profit. Adjusting items include pre-tax net impairments of $0.4 billion and favourable fair value accounting effects* of $1.0 billion. See page 24 for more information on adjusting items.
  

Segment results_(b)

• Gas & low carbon energy: The RC profit before interest and tax for the first quarter 2025 was $1.4 billion, compared with $1.3 billion for the previous quarter. After adjusting RC profit before interest and tax for a net favourable impact of adjusting items of $0.4 billion, the underlying RC profit before interest and tax* for the first quarter was $1.0 billion, compared with $2.0 billion in the fourth quarter 2024. The first quarter underlying result before interest and tax is largely driven by a weak gas marketing and trading result, lower production, including the impact of divestments, and higher costs, mainly non-cash costs and start up costs related to major projects*.
  
• Oil production & operations: The RC profit before interest and tax for the first quarter 2025 was $2.8 billion, compared with $2.6 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $0.1 billion, the underlying RC profit before interest and tax for the first quarter was $2.9 billion, compared with $2.9 billion in the fourth quarter 2024. The first quarter underlying result before interest and tax reflects higher volume and realizations offset by lower income from equity-accounted entities and the absence of the benefit of several non-recurring items in the fourth quarter 2024.
• Customers & products: The RC profit before interest and tax for the first quarter 2025 was $0.1 billion, compared with a loss of $1.9 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $0.6 billion, the underlying RC profit or loss before interest and tax (underlying result) for the first quarter was a profit of $0.7 billion, compared with a loss of $0.3 billion in the fourth quarter 2024. The customers first quarter underlying result was higher by $0.1 billion, reflecting lower costs and stronger midstream performance, partly offset by seasonally lower volumes. The products first quarter underlying result was higher by $0.8 billion, mainly reflecting a lower impact from turnaround activity and stronger realized refining margins. The oil trading contribution was average. 

Operating cash flow* $2.8 billion and net debt* $27.0 billion

• Operating cash flow of $2.8 billion, which includes a working capital* build of $3.4 billion (after adjusting for inventory holding gains, fair value accounting effects and other adjusting items), was around $4.6 billion lower than the previous quarter, reflecting seasonal inventory effects and timing of various payments including annual bonus payments and payments related to low carbon assets held for sale. Net debt was $27.0 billion at the end of the first quarter, primarily driven by lower operating cash flow.

Financial frame

• bp is committed to maintaining a strong balance sheet and maintaining 'A' grade credit range through the cycle. We have a target of $14-18 billion of net debt by the end of 2027_(a).
• Our policy is to maintain a resilient dividend. Subject to board approval, we expect an increase in the dividend per ordinary share of at least 4% per year_(c). For the first quarter, bp has announced a dividend per ordinary share of 8 cents.
• Share buybacks are a mechanism to return excess cash. When added to the resilient dividend, we expect total shareholder distributions of 30-40% of operating cash flow*, over time. Related to the first quarter results, bp intends to execute a $0.75 billion share buyback prior to reporting the second quarter results. The $1.75 billion share buyback programme announced with the fourth quarter results was completed on 25 April 2025.
• bp will continue to invest with discipline, driven by value and focused on delivering returns. We expect capital expenditure of around $14.5 billion in 2025 and have a capital frame of around $13-15 billion for 2026 and 2027. 

(a) Potential proceeds from any transactions related to the Castrol strategic review and announcement to bring a strategic partner into Lightsource bp will be allocated to reduce net debt.
(b) RC profit or loss before interest and tax for the fourth quarter 2024 for gas & low carbon energy and customers and products has been restated for material items to reflect the move of our Archaea business from the customers & products segment to the gas & low carbon energy segment.
(c) Subject to board discretion each quarter taking into account factors including current forecasts, the cumulative level of and outlook for cash flow, share count reduction from buybacks and maintaining ‘A’ range credit metrics.

Further information

Contacts

bp press office, London: +44 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 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’, ‘focus on’ 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 production and volumes; expectations regarding turnaround and maintenance activity; expectations regarding financial performance, results of operations, finance debt acquired in the first quarter, and cash flows; expectations regarding future project start-ups; expectations regarding shareholder returns; plans and expectations regarding bp’s upstream production; 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; plans and expectations regarding bp’s balance sheet, cost reduction, cash flow, returns, and long-term shareholder value growth and its effects on bp’s resilience; plans and expectations regarding bp’s net debt target, investment strategy, divestments and other proceeds, capital expenditures, capital frame, underlying effective tax rate, depreciation, depletion and amortization; expectations regarding bp’s shareholder returns including amount and timing of dividends and share buybacks; expectations regarding bp’s customers business, including with respect to volumes, fuel margins, recovery from the US freight recession and its effects, and contributions from bp bioenergy and TravelCenters of America; expectations regarding bp’s products business, including improvement plans, refinery turnaround activity, refining margins and operations; expectations regarding bp’s other businesses & corporate underlying annual charge; plans and expectations regarding bp’s oil and gas projects, including the Azule Energy projects, the Deepwater Guneshli (ACG) production-sharing agreement, the Raven facility and the agreed divestment of a non-controlling stake in bp Pipelines TANAP Limited; expectations regarding bp’s low carbon energy business, including timing of completion of the JERA Nex bp offshore wind joint venture; expectations regarding the strategic review of the Castrol business; expectations regarding Gulf of America settlement payments; expectations regarding bp’s plans to sell its mobility and convenience business in Austria, including timing of the divestment; and accounting principles used in preparing bp’s Annual Report and Form 20-F 2025.

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. Recent global developments have caused significant uncertainty and volatility in macroeconomic conditions and commodity markets. Each item of outlook and guidance set out in this announcement is based on bp’s current expectations but actual outcomes and results may be impacted by these evolving macroeconomic and market conditions.

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, 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 forwardlooking 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 including ongoing approvals required for the continued developments of approved projects; 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 America 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 governmental authorities or any other relevant persons may 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 those factors discussed under “Risk factors” in bp’s Annual Report and Form 20-F for fiscal year 2024 as filed with the US Securities and Exchange Commission.