BP plc (LON:BP) has announced its Q1 2025 results.
Strong operational performance, delivering major projects
| Financial summary | First | Fourth | First | |
| quarter | quarter | quarter | ||
| $ million | 2025 | 2024 | 2024 | |
| Profit (loss) for the period attributable to bp shareholders | 687 | (1,959) | 2,263 | |
| Inventory holding (gains) losses*, net of tax | (118) | 7 | (657) | |
| Replacement cost (RC) profit (loss)* | 569 | (1,952) | 1,606 | |
| Net (favourable) adverse impact of adjusting items*, net of tax | 812 | 3,121 | 1,117 | |
| Underlying RC profit* | 1,381 | 1,169 | 2,723 | |
| Operating cash flow* | 2,834 | 7,427 | 5,009 | |
| Capital expenditure* | (3,623) | (3,726) | (4,278) | |
| Divestment and other proceeds(a) | 328 | 2,761 | 413 | |
| Net issue (repurchase) of shares | (1,847) | (1,625) | (1,750) | |
| Net debt*(b) | 26,968 | 22,997 | 24,015 | |
| Adjusted EBITDA* | 8,701 | 8,413 | 10,306 | |
| Announced dividend per ordinary share (cents per share) | 8.000 | 8.000 | 7.270 | |
| Underlying RC profit per ordinary share* (cents) | 8.75 | 7.36 | 16.24 | |
| Underlying RC profit per ADS* (dollars) | 0.53 | 0.44 | 0.97 |
Highlights
• Resilient financial performance: 1Q25 underlying RC profit $1.4bn; dividend per ordinary share of 8 cents; $0.75 bn share buyback.
• Delivering strong operations: 1Q25 upstream plant reliability* 95.4%; 1Q25 refining availability* 96.2%.
• Growing upstream: Safely started up three major projects*; six exploration discoveries.
• Executing our strategy at pace: Good progress on our divestment programme, including the strategic review of Castrol, and the intentions to sell mobility & convenience businesses in Austria and the Netherlands and the Gelsenkirchen refinery.
In February, we announced a fundamental reset of our strategy – to grow the upstream, focus the downstream and invest with discipline in the transition – and we have already made significant progress. So far this year we have started up three major projects, made six exploration discoveries and have progressed our divestment programme – all while delivering strong operational performance, with over 95% upstream plant reliability supporting the best operating efficiency* on record, and over 96% refining availability. We continue to monitor market volatility and changes and remain focused on moving at pace. I’m confident that our plans to strengthen the balance sheet, reduce costs, and improve cash flow and returns will grow long-term shareholder value and strengthen the resilience of bp.
Murray Auchincloss, Chief Executive Officer
(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.
In the first quarter, we delivered resilient financial results and are in action to improve the performance of bp. Underlying RC profit* grew quarter-on-quarter to $1.4 billion and we have made good progress on our plans to deliver on our structural cost reduction* target. Our financial frame provides us with flexibility through cycle. We continue to optimize investment plans and now expect 2025 capital expenditure of around $14.5 billion. We are also making good progress on divestments and now expect proceeds of $3-4 billion this year. This underpins our confidence in meeting our net debt* target of $14-18 billion by the end of 2027(a). For the first quarter, we have announced a dividend per ordinary share of 8 cents and a share buyback of $750 million.
Kate Thomson, Chief Financial Officer
| 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.
| The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 36. |
Top of page 3
Financial results
In addition to the highlights on page 2:
• Profit attributable to bp shareholders in the first quarter was $0.7 billion, compared with $2.3 billion in the same period of 2024.
– After adjusting profit attributable to bp shareholders for inventory holding gains* and net impact of adjusting items*, underlying replacement cost (RC) profit* for the first quarter was $1.4 billion, compared with $2.7 billion for the same period of 2024. The underlying RC profit for the first quarter compared with the same period in 2024 mainly reflects lower refining margins, a weak gas marketing and trading result and an average oil trading contribution, partly offset by a higher customers result.
– Adjusting items in the first quarter had a net adverse pre-tax impact of $0.4 billion, compared with a net adverse pre-tax impact of $1.2 billion in the same period of 2024.
– Adjusting items for the first quarter include a favourable pre-tax impact of fair value accounting effects*, relative to management’s internal measure of performance, of $1.0 billion, compared with an adverse pre-tax impact of $0.2 billion in the same period of 2024. This is primarily due to a larger decline in the forward price of LNG over the 2025 period compared to the comparative periods of 2024 and the favourable impact of the fair value accounting effects relating to the hybrid bonds in the first quarter 2025 compared to the adverse impact in the first quarter 2024.
– Adjusting items for the first quarter of 2025 include an adverse pre-tax impact of asset impairments of $0.4 billion, compared with an adverse pre-tax impact of $0.6 billion in the same period of 2024.
• The effective tax rate (ETR) on RC profit or loss* for the first quarter was 71%, compared with 54% for the same period in 2024. Excluding adjusting items, the underlying ETR* for the first quarter was 50%, compared with 43% for the same period in 2024. The higher underlying ETR for the first quarter reflects changes in the geographical mix of profits. ETR on RC profit or loss and underlying ETR are non-IFRS measures.
• Operating cash flow* for the first quarter was $2.8 billion, compared with $5.0 billion for the same period in 2024. The reduction in operating cash flow reflects lower underlying replacement cost profit coupled with a higher working capital* build partly offset by a reduction in tax paid.
• Capital expenditure* in the first quarter was $3.6 billion, compared with $4.3 billion in the same period of 2024 largely reflecting reduced capital expenditure on low carbon energy.
• Total divestment and other proceeds for the first quarter were $0.3 billion, compared with $0.4 billion for the same period in 2024.
• At the end of the first quarter, net debt* was $27.0 billion, compared with $23.0 billion at the end of the fourth quarter 2024 and $24.0 billion at the end of the first quarter 2024 primarily due to the lower operating cash flow and timing of divestment proceeds in the first quarter 2025. The movement over the last year was also impacted by divestment proceeds and the issuance of additional perpetual hybrid bonds, offset partly by acquired net debt from the completion of the bp Bunge Bioenergia and Lightsource bp transactions.
