We’re reporting our latest earnings against the backdrop of Russia’s attack on Ukraine and the terrible consequences it is having for people in the country and the region. Thank you for everything you are doing in response. We want to be a truly purpose-led company – and this is one way you are living our purpose, day in, day out.
All at the same time, costs of living are rising and the pandemic, while less intense in many places, is not yet over. It is a lot to be dealing with. Please look out for your colleagues, keep talking, and really listening to each other.
Very close to home, I’m saddened to tell you that a contractor colleague died last week in an accident at an Aral retail site in Marne, Germany. This is the second person who has died in an accident this year. In my note last quarter, in February, I wrote about the contractor road tanker driver killed in a collision. Two families left heartbroken. As you will expect, the families are being supported, and both incidents are being investigated – that is how we and our contractors can learn how to eliminate the risks that lead to tragedies like these. Please help by keeping your focus on the job and – most of all – showing the deep care for your colleagues that will help us to keep each other safe.
When it comes to today’s numbers, you’ll see the impact of our decision to exit Rosneft and our businesses in Russia. You have been overwhelmingly supportive – thank you – it is the right decision for bp and for our shareholders. It does mean that we have taken some large non-cash charges in our accounts, and these show up in the headline loss we reported of $20.4 billion. There are three very important things to note about that number – and our decision on Russia in general.
First, it does NOT change our strategy, our financial frame, or our plans for the dividend and share buybacks.
Second, the company is running well – you will see that in our underlying profit of $6.2 billion and cash flow of $8.2 billion. And we’ve reduced net debt yet again – for the eighth quarter in a row – now at $27.5 billion.
Third, you are making great progress on our transformation – across the whole of the strategy and right around the bp world:
That is just a fraction of what you are all doing – and you can read much more on bp.com. Our transformation to an integrated energy company is well under way – you can feel it!
Yes, the deeply tragic situation in Ukraine has shaped what we’re reporting today. And it is making a cost-of-living crisis worse for many millions of people. Our main job is to do all we can to keep energy flowing where it is needed – today and tomorrow. But I know many of you want to do more. We have a team in the UK working on it – looking at how we can reach those most in need, building on our experience during the pandemic supporting communities with donations and free fuel. If you have suggestions for your own region, please talk to your local leaders.
One final thought for now – when we started our transformation, we said we’d look to deliver energy that is reliable, affordable and clean. This is at the core of our strategy:
Providing the hydrocarbons the world needs today – with lower emissions – while at the same time, investing to accelerate the energy transition.
This is what we mean by an Integrated Energy Company. And its role has never been clearer.
We stay the course – performing while transforming.
Thank you for all you do for our great company.
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