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Second quarter 2023 results

1 August 2023

Performing while transforming

Second quarter and first half 2023 (a)

  • Underlying RC profit $2.6bn; Operating cash flow $6.3bn
  • 10% increase in resilient dividend to 7.270 cents per ordinary share; further $1.5bn share buyback announced
  • Delivering resilient hydrocarbons - 2Q23 start-up of two major projects*; successful commissioning of Cherry Point refinery improvement projects
  •  Continued progress in transformation to an IEC - acquisition of TravelCenters of America; 4GW entry to German offshore wind; strong progress across the five transition growth* engines
Financial summary
$ million
Second quarter 2023 First quarter 2023 Second quarter 2022 First half 2023 First half 2022
Profit (loss) for the period attributable to bp shareholders 1,792 8,218 9,257 10,010 (11,127)
Inventory holding (gains) losses*, net of tax 549 452 (1,607) 1,001 (4,271)
Replacement cost (RC) profit (loss)* 2,341 8,670 7,650 11,011 (15,398)
Net (favourable) adverse impact of adjusting items*, net of tax 248 (3,707) 801 (3,459) 30,094
Underlying RC profit* 2,589 4,963 8,451 7,552 14,696
Operating cash flow* 6,293 7,622 10,863 13,915 19,073
Capital expenditure* (4,314) (3,625) (2,838) (7,939) (5,767)
Divestment and other proceeds(b) 88 800 722 888 1,903
Surplus cash flow* (269) 2,283 6,546 2,014 10,584
Net issue (repurchase) of shares (2,073) (2,448) (2,288) (4,521) (3,880)
Net debt*(c) 23,660 21,232 22,816 23,660 22,816
Adjusted EBITDA* 9,770 13,066 16,357 22,836 30,240
Announced dividend per ordinary share (cents per share) 7.270 6.610 6.006 13.880 11.466
Underlying RC profit per ordinary share* (cents) 14.77 27.74 43.58 42.65 75.55
Underlying RC profit per ADS* (dollars) 0.89 1.66 2.61 2.56 4.53



Underlying replacement cost profit* $2.6 billion


  • Underlying replacement cost profit for the quarter was $2.6 billion, compared with $5.0 billion for the previous quarter. Compared to the first quarter 2023, the result reflects: significantly lower realized refining margins, a significantly higher level of turnaround and maintenance activity and a weak oil trading result; lower oil and gas realizations; and an exceptional gas marketing and trading result, albeit lower than the first quarter.
  • Reported profit for the quarter was $1.8 billion, compared with $8.2 billion for the first quarter 2023. The reported result for the second quarter is adjusted for inventory holding losses* of $0.5 billion (net of tax) and a net adverse impact of adjusting items* of $0.2 billion (net of tax) to derive the underlying replacement cost profit. Adjusting items include impairments of $1.2 billion and favourable fair value accounting effects* of $1.1 billion.

Operating cash flow* $6.3 billion

  • Operating cash flow in the quarter of $6.3 billion includes $1.2 billion of Gulf of Mexico oil spill payments within a working capital* release (after adjusting for inventory holding losses, fair value accounting effects and other adjusting items) of $0.1 billion (see page 30).
  • Capital expenditure* in the second quarter was $4.3 billion including $1.1 billion for the acquisition of TravelCenters of America, net of adjustments. bp continues to expect capital expenditure, including inorganic capital expenditure*, of $16-18 billion in 2023.
  • During the second quarter, bp completed $2.1 billion of share buybacks. This included $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.
  • The $1.75 billion share buyback programme announced with the first quarter results was completed on 28 July 2023. Over the last four quarters bp has completed over $10 billion of buybacks from surplus cash flow* and reduced its issued share capital by over 9%.
  • Net debt* was $23.7 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, underpinned by a cash balance point* of around $40 per barrel Brent, $11 per barrel RMM and $3 per mmBtu Henry Hub (all 2021 real).
  • For the second quarter, bp has announced a dividend per ordinary share of 7.270 cents, an increase of 10%.
  • bp remains committed to using 60% of 2023 surplus cash flow for share buybacks, subject to maintaining a strong investment grade credit rating.
  • bp intends to execute a further $1.5 billion share buyback prior to reporting third quarter results.
  • In setting the dividend per ordinary share and buyback each quarter, the board will continue to take into account factors including the cumulative level of and outlook for surplus cash flow, the cash balance point and the maintenance of a strong investment grade credit rating.
  • bp’s guidance for distributions remains unchanged. 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%.


Strong momentum in transformation to an integrated energy company

  • In resilient hydrocarbons, during the second quarter bp announced the start-up of the bp-operated Mad Dog Phase 2 project and the Reliance operated KG D6-MJ project, together expected to add around 90 thousand barrels of oil equivalent per day of net production by 2025. In addition, bp's Cherry Point refinery in the US successfully commissioned the hydrocracker improvement project and cooling water infrastructure project to improve availability and reduce costs and CO2 emissions.
  • In convenience and mobility, bp completed the acquisition of TravelCenters of America, adding a network of 288 sites, strategically located on major highways across the US. The deal is expected to almost double bp's global convenience gross margin*, and bring growth opportunities in four of bp's five transition growth* engines. In July, bp and Lekkerland extended their convenience partnership to deliver REWE To Go stores at Aral retail sites until 2028. And during the first half 2023 bp grew energy sold from EV charging by around 170% compared to the first half 2022.
  • In low carbon energy, bp was awarded the rights to develop two offshore wind projects, with total potential generating capacity of 4GW, in the German tender round, marking its entry into offshore wind in continental Europe. In addition, bp has made significant progress growing its pipeline of hydrogen projects to reach 2.8mtpa at the end of the second quarter.
Bernard Looney, chief executive officer
“Another quarter of performing while transforming. Our underlying performance was resilient with good cash delivery - during a period of significant turnaround activity and weaker margins in our refining business. We’re delivering our strategy at pace - we’ve started up two major oil and gas projects to help keep energy flowing today and we’re accelerating our transformation through our five transition growth engines. And we’re delivering for shareholders growing our dividend and announcing a further share buyback. This reflects confidence in our performance and the outlook for cash flow, as well as continued progress reducing our share count.” Bernard Looney, chief executive officer
(a) This results announcement also represents bp's half-yearly financial report (see page 16).
(b) Divestment proceeds are disposal proceeds as per the condensed group cash flow statement. See page 3 for more information on divestment and other proceeds.
(c) See Note 10 for more information.
RC profit (loss), underlying RC profit (loss), surplus cash flow, 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 35.

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 reserves; expectations regarding upstream production and bp’s customers & products business; expectations regarding refining margins; expectations regarding turnaround and maintenance activity, including those in refining; 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, hydrogen and renewables and power, including expectations regarding convenience gross margin; expectations relating to bp’s development of its wind pipeline; 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 around $16-18 billion in 2023; expectations regarding greenhouse gas emissions; expectations regarding legal proceedings, including those related to climate change; plans and expectations regarding bp-operated projects and ventures, and its projects, joint ventures, partnerships and agreements 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 it 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; cyberattacks or sabotage; and other factors discussed elsewhere in this report, including under “Principal risks and uncertainties,” 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.


This announcement contains inside information. The person responsible for arranging the release of this announcement on behalf of BP p.l.c. is Ben Mathews, Company Secretary.