SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
28
April, 2026
BP p.l.c.
(Translation
of registrant's name into English)
1 ST JAMES'S SQUARE, LONDON, SW1Y 4PD, ENGLAND
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file
annual
reports
under cover Form 20-F or Form 40-F.
Form
20-F |X| Form 40-F
---------------
----------------
Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of
1934.
Yes No
|X|
---------------
--------------
|
Exhibit
1.1
|
1Q26
SEA Part 1 of 1 dated 28 April 2026
|
Exhibit 1.1
Top of
page 1
FOR IMMEDIATE
RELEASE
London 28 April
2026
BP p.l.c. Group results
First quarter 2026
"For a printer friendly version of this announcement please click
on the link below to open a PDF version of the
announcement"
http://www.rns-pdf.londonstockexchange.com/rns/1035C_1-2026-4-27.pdf
Continued strong operational and financial delivery
|
Financial summary
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
$ million
|
|
2026
|
2025
|
2025
|
|
Profit (loss) for the period attributable to bp
shareholders
|
|
3,842
|
(3,422)
|
687
|
|
Inventory holding (gains) losses*, net of tax
|
|
(3,180)
|
666
|
(118)
|
|
Replacement cost (RC) profit (loss)*
|
|
662
|
(2,756)
|
569
|
|
Net (favourable) adverse impact of adjusting items*, net of
tax
|
|
2,536
|
4,297
|
812
|
|
Underlying RC profit*
|
|
3,198
|
1,541
|
1,381
|
|
Operating cash flow
|
|
2,860
|
7,602
|
2,834
|
|
Capital expenditure
|
|
(3,290)
|
(4,168)
|
(3,623)
|
|
Divestment and other proceeds(a)
|
|
248
|
3,602
|
328
|
|
Net debt*(b)
|
|
25,309
|
22,182
|
26,968
|
|
Underlying
operating expenditure*
|
|
5,369
|
5,639
|
5,304
|
|
Announced dividend per ordinary share (cents per
share)
|
|
8.320
|
8.320
|
8.000
|
|
Underlying RC profit per ordinary share* (cents)
|
|
20.67
|
10.00
|
8.75
|
|
Underlying RC profit per ADS* (dollars)
|
|
1.24
|
0.60
|
0.53
|
Highlights
● Strong
upstream operations: 1Q
2026 upstream plant reliability improved to 95.7% (4Q25 95.4%);
reported production broadly flat as higher production in the Gulf
of America and strong performance in bpx Energy offset the impact
of disruptions in the Middle East and a North Sea divestment at the
end of 2025.
● Improved
downstream reliability; focused on running assets safely to meet
customer demand: refining
availability improved to 96.3% (4Q25 96.0%) and above our target of
96% availability.
● Strong
financial performance: 1Q
2026 underlying RC profit $3.2 billion; operating cash flow $2.9
billion after taking into account a $6.0 billion adjusted working
capital* build(c) largely
driven by the rising price environment in addition to the seasonal
inventory builds.
● Continued
strategic progress: announced agreement to sell Gelsenkirchen
refinery. On transaction completion, our structural cost reduction*
target will increase by $1 billion to $6.5-7.5 billion by 2027.
Subject to market conditions, we now plan to reduce corporate
hybrid bond financing by around $4.3 billion to approximately $9
billion by end 2027.
|
It's a privilege and an honour to serve as bp's CEO. I join at a
time when our industry is operating in an environment of conflict
and complexity, playing a vital role in keeping energy
flowing.
bp's team has been working relentlessly to keep our assets
producing safely, reliably and efficiently. We are working with
customers and governments to get fuel where it's needed, helping
minimize disruption and the impact it can have on people's
lives.
Overall, our business continues to run well. This was another
quarter of strong operational and financial delivery, and we made
further progress towards our 2027 targets. We had high plant
reliability, high refining availability and increased production in
the Gulf of America and at bpx Energy, our US onshore business -
keeping production levels steady despite the ongoing
disruption.
We also made progress on sustainability, continuing to embed it in
the way we work and building on the 37% reduction in operational
emissions last year, compared to our 2019 baseline. We are
committed to doing business the right way: providing secure,
affordable energy - and doing it sustainably.
bp is a great company, with highly skilled people and world-class
assets. We are heading in the right direction, strengthening the
balance sheet and continuing to accelerate delivery. Now, we have
to capitalize on the opportunity that exists across our portfolio,
simplifying how we work, unlocking growth and driving improved
returns.
That is how we will make bp a simpler, stronger, more valuable
company.
|
|
Meg O'Neill
Chief executive officer
|
(a)
Divestment proceeds are disposal proceeds as per the condensed
group cash flow statement.
(b)
See Note 9 for more information.
(c) Change in working capital
adjusted for inventory holding gains, fair value accounting effects
relating to subsidiaries and other adjusting items. See
page 26.
RC profit (loss), underlying RC profit, net debt, underlying
operating expenditure, underlying RC profit per ordinary share,
underlying RC profit per ADS and adjusted working capital are
non-IFRS measures. Inventory holding (gains) losses and adjusting
items are non-IFRS adjustments.
Definitions are provided in the Glossary on page 30. Non-IFRS
measures are marked with an asterisk.
Top of
page 2
|
|
Highlights
|
|
|
|
|
1Q26 underlying replacement cost (RC) profit* $3.2
billion
|
|
|
|
|
●
|
Underlying RC profit for the quarter of $3.2 billion, compared with
$1.5 billion for the previous quarter. Compared with the fourth
quarter 2025, the underlying result reflects exceptional oil
trading contribution and stronger midstream performance. The
underlying effective tax rate (ETR)* in the quarter was 32%,
compared with 43% for the previous quarter, which reflects changes
in the geographical mix of profits.
|
|
|
|
●
|
Reported profit for the quarter was $3.8 billion, compared
with a loss of $3.4 billion for the fourth quarter 2025. The
reported result for the first quarter is adjusted for inventory
holding gains* of $3.2 billion (net of tax) and a net adverse
impact of adjusting items* of $2.5 billion (net of tax) to derive
the underlying RC profit. Adjusting items include adverse pre-tax
fair value accounting effects of $1.1 billion and post-tax net
impairments of $0.4 billion (see page 25 for
more information on adjusting items).
|
|
|
|
Segment results
|
|
|
|
|
●
|
Gas & low carbon energy: The RC profit before interest and tax
for the first quarter 2026 was $1.1 billion, compared with a
loss of $2.2 billion for the previous quarter. After adjusting
RC profit before interest and tax for a net adverse impact of
adjusting items of $0.3 billion, the underlying RC profit
before interest and tax* for the first quarter was
$1.3 billion, compared with $1.4 billion in the fourth
quarter 2025. This reflects realizations remaining broadly flat
including the adverse impact of price lags. The gas marketing and
trading result was average.
|
|
|
|
●
|
Oil production & operations: The RC profit before interest and
tax for the first quarter 2026 was $1.7 billion, compared with $1.7
billion for the previous quarter. After adjusting RC profit before
interest and tax for a net adverse impact of adjusting items of
$0.3 billion, the underlying RC profit before interest and tax for
the first quarter was $2.0 billion, compared with $2.0 billion for
the fourth quarter 2025. This reflects the divestment in the North
Sea offset by higher realizations including the adverse impact of
the price lags.
|
|
|
|
●
|
Customers & products: The RC profit before interest and tax for
the first quarter 2026 was $2.5 billion, compared with $1.4 billion
for the previous quarter. After adjusting RC profit before interest
and tax for a net adverse impact of adjusting items of $0.8
billion, the underlying RC profit before interest and tax
(underlying result) for the first quarter was $3.2 billion,
compared with $1.3 billion in the fourth quarter 2025. The
customers first quarter underlying result was higher by $0.1
billion, reflecting seasonally lower volumes and lower retail fuels
margins, more than offset by a stronger midstream performance,
including stronger supply optimization across our integrated value
chain and one-off timing effects, and a lower underlying operating
expenditure. The products first quarter underlying result was
higher by $1.7 billion. In refining, the result reflects higher
realized refining margins, a higher throughput driven by lower
turnaround activity and the recovery following reduced capacity at
the Whiting refinery in the fourth quarter, and crude selection
timing effects. The oil trading contribution was
exceptional.
|
|
|
|
Operating cash flow $2.9 billion and net debt* $25.3
billion
|
|
|
|
|
●
|
Operating cash flow for the quarter, after a $6.0 billion working
capital* build (after adjusting for inventory holding gains, fair
value accounting effects and other adjusting items), was $2.9
billion. The working capital build of $6.0 billion reflects three
main factors: around $4.1 billion related to seasonal working
capital effects, higher levels of inventory reflecting longer
shipping routes and the rising price environment through the
quarter; $1.1 billion related to the timing of payments; and $0.8
billion of other items, primarily related to the settlement
payments in the Gulf of America.
|
|
|
|
●
|
Net debt increased to $25.3 billion at the end of the first quarter
compared with $22.2 billion at the end of the fourth quarter 2025,
primarily driven by lower operating cash flow.
|
|
|
|
Our financial frame
|
|
|
|
|
●
|
Our first capital allocation priority is a resilient dividend,
which is expected to increase by at least 4% per ordinary share a
year(a). For
the first quarter, bp has announced a dividend per ordinary share
of 8.320 cents.
|
|
|
|
●
|
We are committed to strengthening the balance sheet and continue to
target improving our credit metrics within an 'A' grade credit
range. We reiterate our primary target of $14 to 18 billion of net
debt by end 2027. When considering our capital structure, we also
look at other instruments including hybrid bonds and securities or
obligations such as leases and our Gulf of America settlement
liabilities.
|
|
|
|
●
|
bp's hybrid capital includes a notional $13.3 billion of perpetual
hybrid bonds made up of a core stack of around $12.0 billion and
$1.3 billion issued in 2024 as prefinancing of upcoming
redemptions. bp now plans to reduce its perpetual hybrid bond
capital to approximately $9 billion,
subject to market conditions, as a result of continued balance
sheet strengthening and the receipt of cash from our divestment
programme. This $4.3 billion reduction is expected to be achieved
through the redemption, without replacement, of perpetual hybrid
bonds with first call dates in March 2026
of €2.5 billion and March 2027 of
£1.25 billion.
Following completion of these actions, the remaining
$9 billion
of perpetual hybrid bonds are currently intended to remain a
permanent component of bp's capital framework.
|
|
|
|
●
|
We reiterate our 2026 capital expenditure budget in the range of
$13-13.5 billion.
|
|
(a)
Shareholder distributions, including dividends are subject to board
discretion, taking into account factors including, but not limited
to, current forecasts and 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
$3.8 billion, compared with $0.7 billion in the same
period of 2025.
- 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
$3.2 billion, compared with $1.4 billion for the same
period of 2025. The underlying RC profit for the first quarter
compared with the same period in 2025 mainly reflects significantly
higher realized margins, partly offset by lower realizations. The
oil trading contribution for the first quarter was exceptional
compared with the average result in the same period of 2025 and the
gas marketing and trading result was average compared with the weak
result for the same period in 2025. See pages 6, 8 and 10 for
more information.
- Adjusting
items in the first quarter had a net adverse pre-tax impact of
$2.0 billion, compared with a net adverse pre-tax impact of
$0.4 billion in the same period of 2025.
- Adjusting
items for the first quarter includes an adverse pre-tax impact of
fair value accounting effects* of $1.1 billion, compared with a
favourable pre-tax impact of $1.0 billion in the same period
of 2025. In both the gas & low carbon energy and customers
& products segments fair value accounting effects represent the
difference in treatment between, management's internal performance
measure and IFRS. In other businesses & corporate, there was an
adverse impact of the fair value accounting effects relating to the
hybrid bonds in the first quarter 2026 compared with a favourable
impact in the first quarter 2025.
● The
effective tax rate (ETR) on the profit before taxation for the
first quarter was 43%, compared with 69% for the same period in
2025. Excluding inventory holding gains or losses and adjusting
items, the underlying ETR* for the first quarter was 32%, compared
with 50% for the same period in 2025. The lower underlying ETR for
the first quarter reflects changes in the geographical mix of
profits, particularly due to the higher results in products.
Underlying ETR is a non-IFRS measure.
● Operating
cash flow for the first quarter was $2.9 billion, compared
with $2.8 billion for the same period in
2025.
● Capital
expenditure in the first quarter was $3.3 billion, compared
with $3.6 billion in the same period of
2025.
● Total
divestment and other proceeds for the first quarter were
$0.2 billion, compared with $0.3 billion for the same
period in 2025.
● At
the end of the first quarter, net debt* was $25.3 billion, compared
with $22.2 billion at the end of the fourth quarter 2025 and
$27.0 billion at the end of the first quarter
2025.
Top of
page 4
Analysis of RC profit (loss) before interest and tax and
reconciliation to profit (loss) for the period
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
$ million
|
|
2026
|
2025
|
2025
|
|
RC profit (loss) before interest and tax
|
|
|
|
|
|
gas
& low carbon energy
|
|
1,054
|
(2,172)
|
1,358
|
|
oil
production & operations
|
|
1,655
|
1,735
|
2,788
|
|
customers
& products
|
|
2,452
|
1,415
|
103
|
|
other
businesses & corporate
|
|
(855)
|
(386)
|
(22)
|
|
Consolidation
adjustment - UPII*
|
|
21
|
21
|
13
|
|
RC profit before interest and tax
|
|
4,327
|
613
|
4,240
|
|
Finance
costs and net finance expense relating to pensions and other
post-employment benefits
|
|
(1,121)
|
(1,242)
|
(1,269)
|
|
Taxation on a RC basis
|
|
(2,174)
|
(1,830)
|
(2,107)
|
|
Non-controlling interests
|
|
(370)
|
(297)
|
(295)
|
|
RC profit (loss) attributable to bp shareholders*
|
|
662
|
(2,756)
|
569
|
|
Inventory holding gains (losses)*
|
|
4,159
|
(874)
|
159
|
|
Taxation (charge) credit on inventory holding gains and
losses
|
|
(979)
|
208
|
(41)
|
|
Profit (loss) for the period attributable to bp
shareholders
|
|
3,842
|
(3,422)
|
687
|
Analysis of underlying RC profit (loss) before interest and
tax
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
$ million
|
|
2026
|
2025
|
2025
|
|
Underlying RC profit (loss) before interest and tax
|
|
|
|
|
|
gas
& low carbon energy
|
|
1,336
|
1,389
|
997
|
|
oil
production & operations
|
|
1,981
|
1,958
|
2,895
|
|
customers
& products
|
|
3,203
|
1,346
|
677
|
|
other
businesses & corporate
|
|
(272)
|
(304)
|
(117)
|
|
Consolidation
adjustment - UPII
|
|
21
|
21
|
13
|
|
Underlying RC profit before interest and tax
|
|
6,269
|
4,410
|
4,465
|
|
Finance costs on an underlying RC
basis(a) and
net finance expense relating to pensions and other post-employment
benefits
|
|
(1,047)
|
(1,162)
|
(1,082)
|
|
Taxation on an underlying RC basis
|
|
(1,654)
|
(1,410)
|
(1,707)
|
|
Non-controlling interests
|
|
(370)
|
(297)
|
(295)
|
|
Underlying RC profit attributable to bp shareholders*
|
|
3,198
|
1,541
|
1,381
|
(a) A non-IFRS measure. Finance
costs on an underlying RC basis is defined as finance costs as
stated in the group income statement excluding finance costs
classified as adjusting items* (see footnote (d) on
page 25).
Reconciliations of underlying RC profit attributable to bp
shareholders to the nearest equivalent IFRS measure are provided on
page 1 for
the group and on pages 6-12 for
the segments.
Operating Metrics
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
|
|
2026
|
2025
|
2025
|
|
Tier 1 and tier 2 process safety events
|
|
7
|
4
|
10
|
|
upstream production(a) (mboe/d)
|
|
2,339
|
2,344
|
2,239
|
|
upstream unit production
costs(b) ($/boe)
|
|
6.39
|
5.82
|
6.34
|
|
bp-operated upstream plant reliability
|
|
95.7%
|
95.4%
|
95.4%
|
|
bp-operated refining
availability(a)
|
|
96.3%
|
96.0%
|
96.2%
|
(a) See Operational updates on
pages 6, 8 and 10.
Because of rounding, upstream production may not agree exactly with
the sum of gas & low carbon energy and oil production &
operations.
(b)
The increase in the first quarter 2026, compared with the first
quarter 2025 mainly reflects portfolio mix.
Top of
page 5
Outlook & Guidance
2Q 2026 guidance
● Looking
ahead, bp expects second quarter 2026 reported upstream production
to be lower compared with the first quarter 2026, due to seasonal
maintenance predominantly in the Gulf of America and the effects of
disruption in the Middle East. The heightened volatility in the oil
and gas prices could also impact PSA contracts.
● In
its customers business, bp expects compared to the first quarter,
seasonally higher volumes to be more than offset by a lower
midstream result, including the potential reversal of the 1Q timing
effects. We expect volumes and fuels margins to remain sensitive to
conditions and developments in the Middle East.
● In
products, bp expects compared to the first quarter, refining
throughput to be impacted by a higher level of planned refinery
turnaround activity. We also expect lower throughput at Whiting due
to a third-party event this month which has now been resolved.
Refining margins are expected to remain sensitive to the cost of
supply and conditions in the Middle East.
● bp
plans to reduce its hybrid capital in the second quarter 2026
through the redemption, without replacement, of €2.5
billion
of perpetual hybrid bonds.
2026 guidance
In addition to the guidance on
page 2:
● bp
now expects reported upstream production to be lower due to effects
of disruption in the Middle East and underlying upstream production
to be broadly flat compared with 2025. Within this, bp expects
underlying production from oil production & operations to be
broadly flat and production from gas & low carbon energy to be
lower.
● In
its customers business, bp continues to expect to make continued
progress growing cash flows, supported by lower underlying
operating expenditure* driven by structural cost reductions*. These
benefits will be partly offset by the earnings impact of completed
and announced divestments. Reported earnings will benefit from
lower depreciation as a result of the assets held for sale
accounting treatment of Castrol following the planned divestment.
Fuel margins are expected to remain sensitive to movements in the
cost of supply.
● In
products, bp continues to expect significantly lower level of
turnaround activity. Refining margins are expected to remain
sensitive to the cost of supply and conditions in the Middle
East.
● bp
continues to expect other businesses & corporate underlying
annual charge to be around $1.0 billion for 2026. The charge may
vary quarter to quarter.
● bp
continues to expect the depreciation, depletion and amortization to
be broadly flat compared with 2025.
● bp
continues to expect the underlying ETR* for 2026 to be around 40%
but it is sensitive to a range of factors, including the volatility
of the price environment and its impact on the geographical mix of
the group's profits and losses.
● bp
continues to expect capital expenditure to be $13-13.5 billion and
now evenly weighted through the year.
● bp
continues to expect divestment and other proceeds to be $9-10
billion in 2026, including approximately $6 billion from the
announced Castrol transaction, all significantly weighted to the
second half.
● bp
continues to expect Gulf of America settlement payments for the
year to be around $1.6 billion pre-tax including $0.4 billion
pre-tax paid during the first quarter and $1.1 billion pre-tax paid
during the second quarter.
Middle East implications
We continue to closely monitor the situation in the Middle East.
The full impact will be determined by the extent and duration of
the current market conditions.
|
2025 upstream production
(bp share, net of royalties)
|
Crude oil
(mb/d)
|
Natural gas
(mmcf/d)
|
Total hydrocarbons
(mboe/d)
|
|
Subsidiaries
|
|
|
|
|
Abu Dhabi
|
208
|
-
|
208
|
|
Oman
|
22
|
590
|
124
|
|
Equity-accounted entities
|
|||
|
Iraq
|
79
|
-
|
79
|
|
Total
|
309
|
590
|
411
|
● In
the upstream, the heightened volatility is leading to notable
differences between marker prices used in our rules of thumb and
realized prices due to price lags, price caps, timing of liftings
and contract structures.
● In
refining, we are seeing margin dislocations driven by three main
factors: crude differentials, product yields and freight
costs.
|
The commentary above contains forward-looking statements and should
be read in conjunction with the cautionary statement on
page 36.
|
Top of
page 6
gas & low carbon energy
Financial results
● The
replacement cost (RC) profit before interest and tax for the first
quarter was $1,054 million, compared with $1,358 million for the
same period in 2025. The first quarter is adjusted by an adverse
impact of net adjusting items* of $282 million, compared with a
favourable impact of net adjusting items of $361
million for
the same period in 2025. Adjusting items include the impacts of
fair value accounting effects*, relative to management's internal
measure of performance, which are an adverse impact of $273 million
for the first quarter in 2026 and a favourable impact of $668
million for the same period in 2025. See page 25 for
more information on adjusting items.
● After
adjusting RC profit before interest and tax for adjusting items,
the underlying RC profit before interest and tax* for the first
quarter was $1,336 million, compared with $997 million for the same
period in 2025.
● The
underlying RC profit before interest and tax for the first quarter
reflects an average trading result compared to a weak result for
the same period in 2025, and higher production offset by lower
realizations.
Operational update
● Reported
production for the quarter was 798mboe/d, 4.5% higher than the same
period in 2025. Underlying production was 5.5% higher compared with
the first quarter of 2025 reflecting major project start-ups partly
offset by base decline.
Strategic progress
● In
March bp and South Valley Egyptian Petroleum Holding Company signed
a memorandum of understanding for the award of Block (6) in the Red
Sea.
● In
April bp announced a significant gas and condensate discovery
offshore Egypt following the successful drilling of the Denise W-1
exploration well in the Temsah Concession, located in the Eastern
Mediterranean. The Denise W-1 well follows a binding head of
agreement signed in July 2025 with EGPC and EGAS for a 20-year
renewal of the Temsah Concession.
● In
April Arcius, a joint venture with bp holding 51% and XRG holding
49%, has taken a final investment decision to develop the Harmattan
gas field in Egypt's El Burg offshore concession, a significant
step toward executing one of its first projects in
Egypt.
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
$ million
|
|
2026
|
2025
|
2025
|
|
Profit (loss) before interest and tax
|
|
1,054
|
(2,172)
|
1,358
|
|
Inventory holding (gains) losses*
|
|
-
|
-
|
-
|
|
RC profit (loss) before interest and tax
|
|
1,054
|
(2,172)
|
1,358
|
|
Net (favourable) adverse impact of adjusting items
|
|
282
|
3,561
|
(361)
|
|
Underlying RC profit before interest and tax
|
|
1,336
|
1,389
|
997
|
|
Taxation on an underlying RC basis
|
|
(473)
|
(463)
|
(471)
|
|
Underlying RC profit before interest
|
|
863
|
926
|
526
|
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
$ million
|
|
2026
|
2025
|
2025
|
|
Depreciation, depletion and amortization
|
|
|
|
|
|
Total depreciation, depletion and amortization
|
|
1,186
|
1,173
|
1,166
|
|
|
|
|
|
|
|
Exploration write-offs
|
|
|
|
|
|
Exploration write-offs
|
|
-
|
-
|
-
|
|
|
|
|
|
|
|
Adjusted EBITDA*
|
|
|
|
|
|
Total adjusted EBITDA
|
|
2,522
|
2,562
|
2,163
|
|
|
|
|
|
|
|
Capital expenditure
|
|
|
|
|
|
gas
|
|
635
|
757
|
774
|
|
low carbon energy
|
|
60
|
132
|
129
|
|
Total capital expenditure
|
|
695
|
889
|
903
|
Top of
page 7
gas & low carbon energy (continued)
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
|
|
2026
|
2025
|
2025
|
|
Production (net of
royalties)(a)
|
|
|
|
|
|
Liquids (mb/d)
|
|
87
|
86
|
83
|
|
Natural gas (mmcf/d)
|
|
4,124
|
4,074
|
3,950
|
|
Total hydrocarbons (mboe/d)
|
|
798
|
788
|
764
|
|
|
|
|
|
|
|
Average realizations(b)
|
|
|
|
|
|
Liquids ($/bbl)
|
|
67.17
|
62.72
|
70.74
|
|
Natural gas ($/mcf)
|
|
6.30
|
6.30
|
7.26
|
|
Total hydrocarbons ($/boe)
|
|
40.08
|
39.18
|
45.38
|
(a)
Includes bp's share of production of equity-accounted entities in
the gas & low carbon energy segment.
(b)
Realizations are based on sales by consolidated subsidiaries only -
this excludes equity-accounted entities.
Top of
page 8
oil production & operations
Financial results
● The
replacement cost (RC) profit before interest and tax for the first
quarter was $1,655 million, compared with $2,788 million for the
same period in 2025. The first quarter is adjusted by an adverse
impact of net adjusting items* of $326 million, compared with an
adverse impact of net adjusting items of $107 million for the same
period in 2025. See page 25 for
more information on adjusting items.
● After
adjusting RC profit before interest and tax for adjusting items,
the underlying RC profit before interest and tax* for the first
quarter was $1,981 million, compared with $2,895 million for the
same period in 2025.
● The
underlying RC profit before interest and tax for the first quarter,
compared with the same period in 2025, primarily reflects lower
realizations including the impact of price lags, divestment in the
North Sea and increased depreciation charges.
Operational update
● Reported
production for the quarter was 1,541mboe/d, 4.5% higher than the
first quarter of 2025. Underlying production for the quarter was
5.9% higher compared with the first quarter of 2025 primarily
reflecting bpx Energy performance.
Strategic progress
● In
February Aker BP started oil production from the Solveig Phase 2
(formally called Utsira High) development in the North Sea (bp
interest in Aker BP 15.9%). The project has been delivered on
schedule, adding approximately 39 million barrels of oil equivalent
in recoverable resources to the Solveig field.
● In
February bp confirmed an oil discovery in the Algaita-01
exploration well offshore Angola. The well was drilled in Block
15/06, and is operated by Azule Energy, a 50:50 joint venture
between bp and Eni.
● In
February bp announced the start-up of the Ndungu full-field, part
of the Agogo Integrated West Hub Project (IWH), in the western area
of Block 15/06, offshore Angola. Agogo IWH is operated by Azule
Energy.
● In
March bp was the apparent highest bidder on three blocks in the
BBG-2 Gulf of America lease sale.
● In
March bp confirmed start-up of gas production from the Quiluma
field, part of the New Gas Consortium in Angola, operated by Azule
Energy.
● In
April bp agreed to acquire a 60% interest in three offshore
exploration blocks in Namibia from Eco Atlantic Oil & Gas.
Subject to Namibian government approvals, bp will be the operator
of three blocks - PEL97, PEL99 and PEL100 - offshore Namibia in the
Walvis Basin, with Eco Atlantic remaining a partner, along with
Namibia's national oil company NAMCOR.
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
$ million
|
|
2026
|
2025
|
2025
|
|
Profit before interest and tax
|
|
1,662
|
1,735
|
2,795
|
|
Inventory holding (gains) losses*
|
|
(7)
|
-
|
(7)
|
|
RC profit before interest and tax
|
|
1,655
|
1,735
|
2,788
|
|
Net (favourable) adverse impact of adjusting items
|
|
326
|
223
|
107
|
|
Underlying RC profit before interest and tax
|
|
1,981
|
1,958
|
2,895
|
|
Taxation on an underlying RC basis
|
|
(854)
|
(918)
|
(1,375)
|
|
Underlying RC profit before interest
|
|
1,127
|
1,040
|
1,520
|
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
$ million
|
|
2026
|
2025
|
2025
|
|
Depreciation, depletion and amortization
|
|
|
|
|
|
Total depreciation, depletion and amortization
|
|
2,009
|
2,038
|
1,787
|
|
|
|
|
|
|
|
Exploration write-offs
|
|
|
|
|
|
Exploration write-offs
|
|
2
|
25
|
53
|
|
|
|
|
|
|
|
Adjusted EBITDA*
|
|
|
|
|
|
Total adjusted EBITDA
|
|
3,992
|
4,021
|
4,735
|
|
|
|
|
|
|
|
Capital expenditure
|
|
|
|
|
|
Total capital expenditure
|
|
1,891
|
1,636
|
1,696
|
Top of
page 9
oil production & operations (continued)
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
|
|
2026
|
2025
|
2025
|
|
Production (net of
royalties)(a)
|
|
|
|
|
|
Liquids (mb/d)
|
|
1,126
|
1,134
|
1,086
|
|
Natural gas (mmcf/d)
|
|
2,407
|
2,442
|
2,258
|
|
Total hydrocarbons (mboe/d)
|
|
1,541
|
1,555
|
1,475
|
|
|
|
|
|
|
|
Average realizations(b)
|
|
|
|
|
|
Liquids ($/bbl)
|
|
59.75
|
56.09
|
67.50
|
|
Natural gas ($/mcf)
|
|
3.57
|
3.19
|
4.74
|
|
Total hydrocarbons ($/boe)
|
|
48.51
|
44.98
|
56.45
|
(a)
Includes bp's share of production of equity-accounted entities in
the oil production & operations segment.
(b)
Realizations are based on sales by consolidated subsidiaries only -
this excludes equity-accounted entities.
Top of
page 10
customers & products
Financial results
● The replacement cost (RC) profit before interest
and tax for the first quarter was $2,452 million, compared with
$103 million for the same period in 2025. The first quarter is
adjusted by an adverse impact of net adjusting items* of $751
million, compared with an adverse impact of net adjusting items of
$574 million for the same period in 2025. See
page 25 for
more information on adjusting items.
● After adjusting RC profit before interest and tax
for adjusting items, the underlying RC profit before interest and
tax* (underlying result) for the first quarter was $3,203 million,
compared with $677 million for the same period in
2025.
● The customers & products underlying result for
the first quarter was significantly higher compared with the same
period in 2025.
● customers -
the customers underlying result for the first quarter was higher
compared with the same period in 2025, reflecting a stronger
midstream performance, including stronger supply optimization
across our integrated value chain and one-off timing effects,
partly offset by lower retail fuels
margins.
● products -
the products underlying result for the first quarter was
significantly higher compared with the same period in 2025. In
refining, the first quarter benefited from significantly higher
realized margins and crude selection timing effects. The
oil trading contribution for the first quarter was exceptional
compared to the average result in the same period last
year.
Operational update
● bp-operated refining availability for the first
quarter was 96.3%, higher compared with 96.2% for the same period
in 2025.
Strategic progress
● In March bp announced the agreed sale of its
Gelsenkirchen refinery and related businesses in Germany to the
Klesch Group. The transaction supports portfolio simplification and
progress toward structural cost reduction* targets. Subject to
conditions including regulatory and governmental approvals, the
transaction is expected to close in the second half of
2026.
● Air bp signed a multi-year supply agreement with
Airbus to provide jet fuel and sustainable aviation fuel (SAF), as
well as aviation services in Germany and Spain.
● In January bp and Castrol commenced their Formula
1 partnership with Audi during the start of the season. This
reflects the outcome of several years of bp and Castrol fuels and
lubricants research and development to support compliance with the
new 2026 Formula 1 regulations. The partnership showcases our
strengths in technology and innovation and helps build brand
equity.
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
$ million
|
|
2026
|
2025
|
2025
|
|
Profit before interest and tax
|
|
6,604
|
541
|
255
|
|
Inventory holding (gains) losses*
|
|
(4,152)
|
874
|
(152)
|
|
RC profit before interest and tax
|
|
2,452
|
1,415
|
103
|
|
Net (favourable) adverse impact of adjusting items
|
|
751
|
(69)
|
574
|
|
Underlying RC profit before interest and tax
|
|
3,203
|
1,346
|
677
|
|
Of which:(a)
|
|
|
|
|
|
customers
- convenience & mobility
|
|
1,009
|
877
|
664
|
|
Castrol - included in customers
|
|
346
|
227
|
238
|
|
products
- refining & trading
|
|
2,194
|
469
|
13
|
|
Taxation on an underlying RC basis
|
|
(646)
|
(379)
|
(76)
|
|
Underlying RC profit before interest
|
|
2,557
|
967
|
601
|
(a) A reconciliation to RC
profit before interest and tax by business is provided on
page 28.
Top of
page 11
customers & products (continued)
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
$ million
|
|
2026
|
2025
|
2025
|
|
Adjusted EBITDA*(b)
|
|
|
|
|
|
customers - convenience & mobility
|
|
1,541
|
1,492
|
1,231
|
|
Castrol - included in customers
|
|
346
|
262
|
284
|
|
products - refining & trading
|
|
2,626
|
909
|
431
|
|
|
|
4,167
|
2,401
|
1,662
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
|
|
|
|
Total depreciation, depletion and amortization
|
|
964
|
1,055
|
985
|
|
|
|
|
|
|
|
Capital expenditure
|
|
|
|
|
|
customers - convenience & mobility
|
|
367
|
1,122
|
585
|
|
Castrol - included in customers
|
|
15
|
51
|
37
|
|
products - refining & trading
|
|
290
|
439
|
358
|
|
Total capital expenditure
|
|
657
|
1,561
|
943
|
(b) A reconciliation to RC profit
before interest and tax by business is provided on
page 28.
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Marketing sales of refined products (mb/d)
|
|
2026
|
2025
|
2025
|
|
US
|
|
1,172
|
1,197
|
1,201
|
|
Europe
|
|
923
|
998
|
946
|
|
Rest of World
|
|
458
|
478
|
466
|
|
|
|
2,553
|
2,673
|
2,613
|
|
Trading/supply sales of refined products
|
|
477
|
497
|
441
|
|
Total sales volume of refined products
|
|
3,030
|
3,170
|
3,054
|
|
bp average refining
indicator margin (RIM)
($/bbl)
|
|
16.9
|
15.2
|
8.1
|
|
Refinery throughputs (mb/d)
|
|
|
|
|
|
US
|
|
682
|
611
|
674
|
|
Europe
|
|
845
|
849
|
822
|
|
Total refinery throughputs
|
|
1,527
|
1,460
|
1,496
|
|
|
|
|
|
|
|
bp-operated refining availability (%)
|
|
96.3
|
96.0
|
96.2
|
Top of
page 12
other businesses & corporate
Other businesses & corporate comprises technology, bp ventures,
shipping, our corporate activities & functions and any residual
costs of the Gulf of America oil spill.
Financial results
● The
replacement cost (RC) loss before interest and tax for the first
quarter was $855 million, compared with a loss of $22 million for
the same period in 2025. The first quarter is adjusted by an
adverse impact of net adjusting items* of $583 million, compared
with a favourable impact of net adjusting items of $95 million for
the same period in 2025. Adjusting items include adverse impacts of
fair value accounting effects* of $218 million for the first
quarter, and a favourable impact of $369 million for the same
period in 2025. See page 25 for
more information on adjusting items.
● After
adjusting RC loss before interest and tax for adjusting items, the
underlying RC loss before interest and tax* for the first quarter
was $272 million, compared with a loss of $117 million for the same
period in 2025.
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
$ million
|
|
2026
|
2025
|
2025
|
|
Profit (loss) before interest and tax
|
|
(855)
|
(386)
|
(22)
|
|
Inventory holding (gains) losses*
|
|
-
|
-
|
-
|
|
RC profit (loss) before interest and tax
|
|
(855)
|
(386)
|
(22)
|
|
Net (favourable) adverse impact of adjusting
items(a)
|
|
583
|
82
|
(95)
|
|
Underlying RC profit (loss) before interest and tax
|
|
(272)
|
(304)
|
(117)
|
|
Taxation on an underlying RC basis
|
|
124
|
151
|
33
|
|
Underlying RC profit (loss) before interest
|
|
(148)
|
(153)
|
(84)
|
(a) Includes fair value
accounting effects relating to hybrid bonds. See
page 31 for
more information.
Top of
page 13
Financial statements
Group income statement
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
$ million
|
|
2026
|
2025
|
2025
|
|
|
|
|
|
|
|
Sales and other operating revenues (Note 5)
|
|
52,255
|
47,383
|
46,905
|
|
Earnings from joint ventures - after interest and
tax
|
|
323
|
(1,044)
|
327
|
|
Earnings from associates - after interest and
tax
|
|
353
|
239
|
249
|
|
Interest and other income
|
|
338
|
452
|
385
|
|
Gains on sale of businesses and fixed assets
|
|
102
|
712
|
14
|
|
Total revenues and other income
|
|
53,371
|
47,742
|
47,880
|
|
Purchases
|
|
26,250
|
28,014
|
27,720
|
|
Production and manufacturing expenses
|
|
8,537
|
6,759
|
6,114
|
|
Production and similar taxes
|
|
429
|
406
|
447
|
|
Depreciation, depletion and amortization (Note 6)
|
|
4,410
|
4,526
|
4,183
|
|
Net
impairment and losses on sale of businesses and fixed assets (Note
3)
|
|
589
|
3,624
|
503
|
|
Exploration expense
|
|
44
|
104
|
103
|
|
Distribution and administration expenses
|
|
4,626
|
4,570
|
4,411
|
|
Profit (loss) before interest and taxation
|
|
8,486
|
(261)
|
4,399
|
|
Finance costs
|
|
1,175
|
1,289
|
1,321
|
|
Net
finance (income) expense relating to pensions and other
post-employment benefits
|
|
(54)
|
(47)
|
(52)
|
|
Profit (loss) before taxation
|
|
7,365
|
(1,503)
|
3,130
|
|
Taxation
|
|
3,153
|
1,622
|
2,148
|
|
Profit (loss) for the period
|
|
4,212
|
(3,125)
|
982
|
|
Attributable to
|
|
|
|
|
|
bp
shareholders
|
|
3,842
|
(3,422)
|
687
|
|
Non-controlling
interests
|
|
370
|
297
|
295
|
|
|
|
4,212
|
(3,125)
|
982
|
|
|
|
|
|
|
|
Earnings per share (Note 7)
|
|
|
|
|
|
Profit (loss) for the period attributable to bp
shareholders
|
|
|
|
|
|
Per
ordinary share (cents)
|
|
|
|
|
|
Basic
|
|
24.83
|
(22.21)
|
4.35
|
|
Diluted
|
|
24.53
|
(22.21)
|
4.27
|
|
Per
ADS (dollars)
|
|
|
|
|
|
Basic
|
|
1.49
|
(1.33)
|
0.26
|
|
Diluted
|
|
1.47
|
(1.33)
|
0.26
|
Top of
page 14
Condensed group statement of comprehensive income
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
$ million
|
|
2026
|
2025
|
2025
|
|
|
|
|
|
|
|
Profit (loss) for the period
|
|
4,212
|
(3,125)
|
982
|
|
Other comprehensive income
|
|
|
|
|
|
Items that may be reclassified subsequently to profit or
loss
|
|
|
|
|
|
Currency translation
differences(a)
|
|
(191)
|
(3)
|
819
|
|
Exchange
(gains) losses on translation of foreign operations reclassified to
gain or loss on sale of businesses and fixed assets
|
|
-
|
19
|
-
|
|
Cash
flow hedges and costs of hedging
|
|
159
|
37
|
(185)
|
|
Share
of items relating to equity-accounted entities, net of
tax
|
|
7
|
(3)
|
1
|
|
Income
tax relating to items that may be reclassified
|
|
(14)
|
(4)
|
42
|
|
|
|
(39)
|
46
|
677
|
|
Items that will not be reclassified to profit or loss
|
|
|
|
|
|
Remeasurements
of the net pension and other post-employment benefit liability or
asset
|
|
119
|
109
|
331
|
|
Remeasurements
of equity investments
|
|
(1)
|
(7)
|
(1)
|
|
Cash
flow hedges that will subsequently be transferred to the balance
sheet
|
|
3
|
2
|
2
|
|
Income
tax relating to items that will not be reclassified
|
|
(37)
|
(28)
|
(95)
|
|
|
|
84
|
76
|
237
|
|
Other comprehensive income
|
|
45
|
122
|
914
|
|
Total comprehensive income
|
|
4,257
|
(3,003)
|
1,896
|
|
Attributable to
|
|
|
|
|
|
bp
shareholders
|
|
3,916
|
(3,293)
|
1,556
|
|
Non-controlling
interests
|
|
341
|
290
|
340
|
|
|
|
4,257
|
(3,003)
|
1,896
|
(a)
First quarter 2025 is principally affected by movements in the
Pound Sterling against the US dollar.
Top of
page 15
Condensed group statement of changes in equity
|
|
|
bp shareholders'
|
Non-controlling interests
|
Total
|
|
|
$ million
|
|
equity
|
Hybrid bonds
|
Other interest
|
equity
|
|
At 1 January 2026
|
|
53,052
|
15,955
|
4,993
|
74,000
|
|
|
|
|
|
|
|
|
Total comprehensive income
|
|
3,916
|
185
|
156
|
4,257
|
|
Dividends
|
|
(1,280)
|
-
|
(171)
|
(1,451)
|
|
Cash
flow hedges transferred to the balance sheet, net of
tax
|
|
(1)
|
-
|
-
|
(1)
|
|
Repurchase of ordinary share capital
|
|
(114)
|
-
|
-
|
(114)
|
|
Share-based payments, net of tax
|
|
374
|
-
|
-
|
374
|
|
Payments on perpetual hybrid bonds
|
|
(1)
|
(106)
|
-
|
(107)
|
|
Transactions
involving non-controlling interests, net of tax
|
|
16
|
-
|
(13)
|
3
|
|
At 31 March 2026
|
|
55,962
|
16,034
|
4,965
|
76,961
|
|
|
|
|
|
|
|
|
|
|
bp shareholders'
|
Non-controlling interests
|
Total
|
|
|
$ million
|
|
equity
|
Hybrid bonds
|
Other interest
|
equity
|
|
At 1 January 2025
|
|
59,246
|
16,649
|
2,423
|
78,318
|
|
|
|
|
|
|
|
|
Total comprehensive income
|
|
1,556
|
197
|
143
|
1,896
|
|
Dividends
|
|
(1,265)
|
-
|
(74)
|
(1,339)
|
|
Cash
flow hedges transferred to the balance sheet, net of
tax
|
|
(1)
|
-
|
-
|
(1)
|
|
Repurchase of ordinary share capital
|
|
(1,753)
|
-
|
-
|
(1,753)
|
|
Share-based payments, net of tax
|
|
432
|
-
|
-
|
432
|
|
Issue of perpetual hybrid bonds
|
|
-
|
500
|
-
|
500
|
|
Payments on perpetual hybrid bonds
|
|
-
|
(103)
|
-
|
(103)
|
|
Transactions
involving non-controlling interests, net of tax
|
|
-
|
-
|
2
|
2
|
|
At 31 March 2025
|
|
58,215
|
17,243
|
2,494
|
77,952
|
Top of
page 16
Group balance sheet
|
|
|
31 March
|
31 December
|
|
$ million
|
|
2026
|
2025
|
|
Non-current assets
|
|
|
|
|
Property, plant and equipment
|
|
97,209
|
98,633
|
|
Goodwill
|
|
10,276
|
10,300
|
|
Intangible assets
|
|
8,294
|
8,197
|
|
Investments in joint ventures
|
|
13,563
|
13,400
|
|
Investments in associates
|
|
7,497
|
7,325
|
|
Other investments
|
|
795
|
857
|
|
Fixed assets
|
|
137,634
|
138,712
|
|
Loans
|
|
2,077
|
1,991
|
|
Trade and other receivables
|
|
2,575
|
2,376
|
|
Derivative financial instruments
|
|
20,001
|
20,957
|
|
Prepayments
|
|
636
|
608
|
|
Deferred tax assets
|
|
3,463
|
4,325
|
|
Defined benefit pension plan surpluses
|
|
7,716
|
7,771
|
|
|
|
174,102
|
176,740
|
|
Current assets
|
|
|
|
|
Loans
|
|
541
|
457
|
|
Inventories
|
|
36,596
|
22,499
|
|
Trade and other receivables
|
|
34,435
|
26,014
|
|
Derivative financial instruments
|
|
10,323
|
5,180
|
|
Prepayments
|
|
3,603
|
3,422
|
|
Current tax receivable
|
|
1,005
|
1,153
|
|
Other investments
|
|
70
|
158
|
|
Cash and cash equivalents
|
|
35,693
|
36,556
|
|
|
|
122,266
|
95,439
|
|
Assets classified as held for sale (Note 2)
|
|
5,375
|
6,347
|
|
|
|
127,641
|
101,786
|
|
Total assets
|
|
301,743
|
278,526
|
|
Current liabilities
|
|
|
|
|
Trade and other payables
|
|
67,581
|
56,843
|
|
Derivative financial instruments
|
|
11,061
|
4,413
|
|
Accruals
|
|
4,824
|
5,572
|
|
Lease liabilities
|
|
2,898
|
2,832
|
|
Finance debt
|
|
7,624
|
3,356
|
|
Current tax payable
|
|
2,072
|
1,262
|
|
Provisions
|
|
6,134
|
4,709
|
|
|
|
102,194
|
78,987
|
|
Liabilities directly associated with assets classified as held for
sale (Note 2)
|
|
2,512
|
1,594
|
|
|
|
104,706
|
80,581
|
|
Non-current liabilities
|
|
|
|
|
Other payables
|
|
7,857
|
7,975
|
|
Derivative financial instruments
|
|
19,054
|
19,667
|
|
Accruals
|
|
1,951
|
1,834
|
|
Lease liabilities
|
|
11,459
|
11,739
|
|
Finance debt
|
|
52,197
|
54,602
|
|
Deferred tax liabilities
|
|
7,684
|
7,642
|
|
Provisions
|
|
15,743
|
15,670
|
|
Defined benefit pension plan and other post-employment benefit plan
deficits
|
|
4,131
|
4,816
|
|
|
|
120,076
|
123,945
|
|
Total liabilities
|
|
224,782
|
204,526
|
|
Net assets
|
|
76,961
|
74,000
|
|
Equity
|
|
|
|
|
bp shareholders' equity
|
|
55,962
|
53,052
|
|
Non-controlling interests
|
|
20,999
|
20,948
|
|
Total equity
|
|
76,961
|
74,000
|
Top of
page 17
Condensed group cash flow statement
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
$ million
|
|
2026
|
2025
|
2025
|
|
Operating activities
|
|
|
|
|
|
Profit (loss) before taxation
|
|
7,365
|
(1,503)
|
3,130
|
|
Adjustments
to reconcile profit (loss) before taxation to net cash provided by
operating activities
|
|
|
|
|
|
Depreciation,
depletion and amortization and exploration expenditure written
off
|
|
4,412
|
4,551
|
4,236
|
|
Net
impairment and (gain) loss on sale of businesses and fixed
assets
|
|
487
|
2,912
|
489
|
|
Earnings
from equity-accounted entities, less dividends
received
|
|
(367)
|
1,461
|
(200)
|
|
Net
charge for interest and other finance expense, less net interest
paid
|
|
35
|
486
|
147
|
|
Share-based
payments
|
|
318
|
197
|
401
|
|
Net
operating charge for pensions and other post-employment benefits,
less contributions and benefit payments for unfunded
plans
|
|
(29)
|
(9)
|
(11)
|
|
Net
charge for provisions, less payments
|
|
2,357
|
(416)
|
1,104
|
|
Movements
in inventories and other current and non-current assets and
liabilities
|
|
(10,542)
|
1,785
|
(5,069)
|
|
Income
taxes paid
|
|
(1,176)
|
(1,862)
|
(1,393)
|
|
Net cash provided by operating activities
|
|
2,860
|
7,602
|
2,834
|
|
Investing activities
|
|
|
|
|
|
Expenditure
on property, plant and equipment, intangible and other
assets
|
|
(3,242)
|
(3,463)
|
(3,351)
|
|
Acquisitions, net of cash acquired
|
|
(14)
|
(642)
|
(202)
|
|
Investment in joint ventures
|
|
(22)
|
(22)
|
(58)
|
|
Investment in associates
|
|
(12)
|
(41)
|
(12)
|
|
Total cash capital expenditure
|
|
(3,290)
|
(4,168)
|
(3,623)
|
|
Proceeds from disposal of fixed assets
|
|
159
|
498
|
292
|
|
Proceeds from disposal of businesses, net of cash
disposed
|
|
102
|
1,604
|
36
|
|
Proceeds from loan repayments
|
|
32
|
63
|
31
|
|
Cash provided from investing activities
|
|
293
|
2,165
|
359
|
|
Net cash used in investing activities
|
|
(2,997)
|
(2,003)
|
(3,264)
|
|
Financing activities
|
|
|
|
|
|
Net issue (repurchase) of shares (Note 7)
|
|
(562)
|
(826)
|
(1,847)
|
|
Lease liability payments
|
|
(764)
|
(764)
|
(727)
|
|
Proceeds from long-term financing
|
|
67
|
487
|
54
|
|
Repayments of long-term financing
|
|
(845)
|
(2,231)
|
(1,366)
|
|
Net increase (decrease) in short-term debt
|
|
3,112
|
(361)
|
(125)
|
|
Issue of perpetual hybrid bonds
|
|
-
|
-
|
500
|
|
Payments relating to perpetual hybrid bonds
|
|
(237)
|
(308)
|
(272)
|
|
Payments
relating to transactions involving non-controlling interests (Other
interest)
|
|
(13)
|
-
|
-
|
|
Receipts
relating to transactions involving non-controlling interests (Other
interest)
|
|
-
|
1,501
|
-
|
|
Dividends paid - bp shareholders
|
|
(1,278)
|
(1,276)
|
(1,257)
|
|
-
non-controlling interests
|
|
(175)
|
(150)
|
(74)
|
|
Net cash provided by (used in) financing activities
|
|
(695)
|
(3,928)
|
(5,114)
|
|
Currency translation differences relating to cash and cash
equivalents
|
|
(109)
|
(2)
|
106
|
|
Increase (decrease) in cash and cash equivalents
|
|
(941)
|
1,669
|
(5,438)
|
|
Cash and cash equivalents at beginning of period(a)
|
|
36,658
|
34,955
|
39,269
|
|
Cash and cash equivalents at end of period(b)
|
|
35,717
|
36,624
|
33,831
|
(a)
First quarter 2026 reflects the adoption of amendments to IFRS 9
'Financial Instruments'. See note 1.
(b)
First quarter 2026 includes $24 million (fourth quarter 2025 $68
million, first quarter 2025 $57 million) of cash and cash
equivalents classified as assets held for sale in the group balance
sheet.
Top of
page 18
Notes
Note 1. Basis of preparation
The interim financial information included in this report has been
prepared in accordance with IAS 34 'Interim Financial
Reporting'.
The results for the interim periods presented herein are unaudited
and, in the opinion of management, include all adjustments
necessary for a fair presentation of the results for each period.
All such adjustments are of a normal recurring nature. This report
should be read in conjunction with the consolidated financial
statements and related notes for the year ended 31 December 2025
included in bp Annual Report and Form 20-F
2025.
bp prepares its consolidated financial statements included within
bp Annual Report and Form 20-F on the basis of United Kingdom
adopted international accounting standards and IFRS Accounting
Standards® (IFRS) as issued by the International Accounting
Standards Board (IASB), IFRS as adopted by the European Union (EU),
and in accordance with the provisions of the UK Companies Act 2006
as applicable to companies reporting under international accounting
standards. IFRS as adopted by the UK does not differ from IFRS as
adopted by the EU. IFRS as adopted by the UK and EU differ in
certain respects from IFRS as issued by the IASB. The differences
have no impact on the group's consolidated financial statements for
the periods presented. The financial information presented herein
has been prepared in accordance with the accounting policies
expected to be used in preparing bp Annual Report and Form 20-F
2026, which are the same as those used in
preparing bp Annual Report and Form 20-F
2025.
New standards and amendments to IFRS
On 1 January 2026, bp adopted the amendments to IFRS 9 'Financial
Instruments' relating to the settlement of liabilities through
electronic payment systems using the modified retrospective
approach. The impact to the interim financial information upon
transition was $34 million increase to cash and cash
equivalents.
Significant accounting judgements and estimates
bp's significant accounting judgements and estimates were disclosed
in bp
Annual Report and Form 20-F 2025. These have been subsequently considered at the
end of this quarter to determine if any changes were required to
those judgements and estimates.
Considerations in respect of the conflict in the Middle East and
impact on the economic environment
The impact of the conflict in the Middle East and the associated
economic developments have been considered for the basis of
preparation for the interim financial information. Such factors
include the economic effect of price volatility, supply disruptions
in the region, operability of producing assets and discount
rates.
Impairment testing assumptions
As a result of the recent and ongoing conflict in the Middle East
and the related economic impact, the group's value-in-use
impairment testing price assumptions for Brent oil and Henry Hub
gas were revised during the first quarter from those disclosed in
the bp
Annual Report and Form 20-F 2025. The group has updated its estimate of Brent oil
prices to $82.80/bbl (previously $70.00/bbl) and Henry Hub gas
prices to $3.00/mmBtu (previously $3.80/mmBtu) in real 2024 terms
for the full year 2026. With reference to the Brent price, this
estimate assumes that the ongoing supply disruptions as a result of
the conflict in the Middle East resolve before the year end 2026.
With regard to the Henry Hub gas price assumption, the price
decrease is based on an expectation of oversupply in 2026 in the US
domestic market. The post-tax discount rate used for value-in-use
impairment testing of assets other than certain low carbon energy
assets was maintained at 8% (31 December 2025 8%). No material
impairment or reversal of impairment arose in the first quarter
2026 interim period as a result of the changes to these commodity
price assumptions.
Provisions
The nominal risk-free discount rate applied to provisions is
reviewed on a quarterly basis. The discount rate applied to the
group's provisions remains at 4.5% (31 December 2025
4.5%).
Top of
page 19
Note 2. Non-current assets held for sale
The carrying amount of assets classified as held for sale at
31 March 2026 is $5,375 million, with associated
liabilities of $2,512 million.
Gas & low carbon energy
On 24 October 2024, bp completed the acquisition of the remaining
50.03% of Lightsource bp. The acquisition included certain assets
for which sales processes were in progress at the acquisition date.
The sale of some of these assets completed during the first quarter
of 2026 with the remaining expected to complete in 2026. The
carrying amount of assets classified as held for sale at 31 March
2026 is $930 million, with associated liabilities of $584
million.
Customers & products
On 18 March 2026, bp agreed with the Klesch Group to divest its
100% interest in the Gelsenkirchen refinery and associated assets.
The transaction is expected to complete during the second half of
2026, subject to regulatory approvals. The carrying amount of
assets classified as held for sale at 31 March 2026 is $31 million,
with associated liabilities of $1,617 million. Net working
capital has not been classified as assets and associated
liabilities held for sale. Working capital balances, including
inventory, as at completion will be transferred to the
buyer.
On 24 December 2025, bp announced an agreement with Stonepeak to
divest a 65% shareholding in the Castrol business with bp retaining
a 35% interest through a holding in a newly incorporated entity.
Cash proceeds are estimated at $6 billion. The transaction is
expected to complete by the end of 2026, subject to regulatory
approvals. The carrying amount of assets classified as held for
sale at 31 March 2026 is $4,414 million including $2,704 million of
goodwill that arose on the acquisition of Castrol in 2000, with
associated liabilities of $311 million. Net working capital has not
been classified as assets and associated liabilities held for sale.
The working capital balances, including inventory, as at completion
will be transferred to the buyer. The shares to be held by
Stonepeak after the transaction closes are subject to preferred
distributions, the effect of which is that bp does not expect to
recognize income or dividends from the investment in the short to
medium term.
Note 3. Impairment and losses on sale of businesses and fixed
assets
Net impairment charges and losses on sale of businesses and fixed
assets for the first quarter were $589 million, compared with
net charges of $503 million for the same period in 2025 and
include net impairment charges for the first quarter of
$360 million, compared with net impairment charges of
$431 million for
the same period in 2025.
Top of
page 20
Note 4. Analysis of replacement cost profit (loss) before interest
and tax and reconciliation to profit (loss) before
taxation
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
$ million
|
|
2026
|
2025
|
2025
|
|
gas & low carbon energy
|
|
1,054
|
(2,172)
|
1,358
|
|
oil production & operations
|
|
1,655
|
1,735
|
2,788
|
|
customers & products
|
|
2,452
|
1,415
|
103
|
|
other businesses & corporate
|
|
(855)
|
(386)
|
(22)
|
|
|
|
4,306
|
592
|
4,227
|
|
Consolidation adjustment - UPII*
|
|
21
|
21
|
13
|
|
RC profit (loss) before interest and tax
|
|
4,327
|
613
|
4,240
|
|
Inventory holding gains (losses)*
|
|
|
|
|
|
gas
& low carbon energy
|
|
-
|
-
|
-
|
|
oil
production & operations
|
|
7
|
-
|
7
|
|
customers
& products
|
|
4,152
|
(874)
|
152
|
|
Profit (loss) before interest and tax
|
|
8,486
|
(261)
|
4,399
|
|
Finance costs
|
|
1,175
|
1,289
|
1,321
|
|
Net
finance expense/(income) relating to pensions and other
post-employment benefits
|
|
(54)
|
(47)
|
(52)
|
|
Profit (loss) before taxation
|
|
7,365
|
(1,503)
|
3,130
|
|
|
|
|
|
|
|
RC profit (loss) before interest and tax*
|
|
|
|
|
|
US
|
|
1,521
|
(895)
|
1,533
|
|
Non-US
|
|
2,806
|
1,508
|
2,707
|
|
|
|
4,327
|
613
|
4,240
|
Top of
page 21
Note 5. Sales and other operating revenues
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
$ million
|
|
2026
|
2025
|
2025
|
|
By segment
|
|
|
|
|
|
gas & low carbon energy
|
|
9,447
|
10,728
|
10,778
|
|
oil production & operations
|
|
5,952
|
5,740
|
6,502
|
|
customers & products
|
|
42,961
|
36,474
|
36,163
|
|
other businesses & corporate
|
|
561
|
582
|
484
|
|
|
|
58,921
|
53,524
|
53,927
|
|
|
|
|
|
|
|
Less: sales and other operating revenues between
segments
|
|
|
|
|
|
gas & low carbon energy
|
|
347
|
454
|
731
|
|
oil production & operations
|
|
5,600
|
5,332
|
5,818
|
|
customers & products
|
|
475
|
(14)
|
42
|
|
other businesses & corporate
|
|
244
|
369
|
431
|
|
|
|
6,666
|
6,141
|
7,022
|
|
|
|
|
|
|
|
External sales and other operating revenues
|
|
|
|
|
|
gas & low carbon energy
|
|
9,100
|
10,274
|
10,047
|
|
oil production & operations
|
|
352
|
408
|
684
|
|
customers & products
|
|
42,486
|
36,488
|
36,121
|
|
other businesses & corporate
|
|
317
|
213
|
53
|
|
Total sales and other operating revenues
|
|
52,255
|
47,383
|
46,905
|
|
|
|
|
|
|
|
By geographical area
|
|
|
|
|
|
US
|
|
19,476
|
17,652
|
19,089
|
|
Non-US
|
|
42,577
|
37,686
|
35,701
|
|
|
|
62,053
|
55,338
|
54,790
|
|
Less: sales and other operating revenues between areas
|
|
9,798
|
7,955
|
7,885
|
|
|
|
52,255
|
47,383
|
46,905
|
|
|
|
|
|
|
|
Revenues from contracts with customers
|
|
|
|
|
|
Sales
and other operating revenues include the following in relation to
revenues from contracts with customers:
|
|
|
|
|
|
Crude oil
|
|
333
|
592
|
415
|
|
Oil products
|
|
29,851
|
28,199
|
27,162
|
|
Natural gas, LNG and NGLs
|
|
6,637
|
6,973
|
7,263
|
|
Non-oil products and other revenues from contracts with
customers
|
|
3,695
|
4,274
|
3,633
|
|
Revenue from contracts with customers
|
|
40,516
|
40,038
|
38,473
|
|
Other operating revenues(a)
|
|
11,739
|
7,345
|
8,432
|
|
Total sales and other operating revenues
|
|
52,255
|
47,383
|
46,905
|
(a)
Principally relates to commodity derivative transactions including
sales of bp own production in trading books.
Top of
page 22
Note 6. Depreciation, depletion and amortization
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
$ million
|
|
2026
|
2025
|
2025
|
|
Total depreciation, depletion and amortization by
segment
|
|
|
|
|
|
gas & low carbon energy
|
|
1,186
|
1,173
|
1,166
|
|
oil production & operations
|
|
2,009
|
2,038
|
1,787
|
|
customers & products
|
|
964
|
1,055
|
985
|
|
other businesses & corporate
|
|
251
|
260
|
245
|
|
|
|
4,410
|
4,526
|
4,183
|
|
Total depreciation, depletion and amortization by geographical
area
|
|
|
|
|
|
US
|
|
1,879
|
1,780
|
1,736
|
|
Non-US
|
|
2,531
|
2,746
|
2,447
|
|
|
|
4,410
|
4,526
|
4,183
|
Note 7. Earnings per share and shares in issue
Basic earnings per ordinary share (EpS) amounts are calculated by
dividing the profit (loss) for the period attributable to ordinary
shareholders by the weighted average number of ordinary shares
outstanding during the period. Against the authority granted at
bp's 2025 annual general meeting, 74 million ordinary shares
repurchased were settled during the first quarter 2026 for a total
cost of $450 million. All of these shares were held as
treasury shares.
The calculation of EpS is performed separately for each discrete
quarterly period, and for the year-to-date period. As a result, the
sum of the discrete quarterly EpS amounts in any particular
year-to-date period may not be equal to the EpS amount for the
year-to-date period.
For the diluted EpS calculation the weighted average number of
shares outstanding during the period is adjusted for the number of
shares that are potentially issuable in connection with employee
share-based payment plans using the treasury stock
method.
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
$ million
|
|
2026
|
2025
|
2025
|
|
Results for the period
|
|
|
|
|
|
Profit
(loss) for the period attributable to bp shareholders
|
|
3,842
|
(3,422)
|
687
|
|
Less: preference dividend
|
|
-
|
-
|
-
|
|
Profit (loss) attributable to bp ordinary shareholders
|
|
3,842
|
(3,422)
|
687
|
|
|
|
|
|
|
|
Number of shares (thousand)(a)(b)
|
|
|
|
|
|
Basic
weighted average number of shares outstanding
|
|
15,471,646
|
15,409,755
|
15,778,296
|
|
ADS equivalent(c)
|
|
2,578,607
|
2,568,292
|
2,629,716
|
|
|
|
|
|
|
|
Weighted
average number of shares outstanding used to calculate diluted
earnings per share
|
|
15,662,113
|
15,409,755
|
16,097,610
|
|
ADS equivalent(c)
|
|
2,610,352
|
2,568,292
|
2,682,935
|
|
|
|
|
|
|
|
Shares in issue at period-end
|
|
15,496,882
|
15,377,210
|
15,785,972
|
|
ADS equivalent(c)
|
|
2,582,813
|
2,562,868
|
2,630,995
|
(a)
If the inclusion of potentially issuable shares would decrease loss
per share, the potentially issuable shares are excluded from the
weighted average number of shares outstanding used to calculate
diluted earnings per share. The numbers of potentially issuable
shares that have been excluded from the calculation for the fourth
quarter 2025 are 251,360 thousand (ADS equivalent 41,893
thousand).
(b)
Excludes treasury shares and includes certain shares that will be
issued in the future under employee share-based payment
plans.
(c)
One ADS is equivalent to six ordinary shares.
Top of
page 23
Note 8. Dividends
Dividends payable
bp today announced an interim dividend of 8.320 cents per ordinary
share which is expected to be paid on 26 June 2026 to ordinary
shareholders and American Depositary Share (ADS) holders on the
register on 15 May 2026. The ex-dividend date will be 14 May 2026
for ordinary shareholders and 15 May 2026 for ADS holders. The
corresponding amount in sterling is due to be announced on 9 June
2026, calculated based on the average of the market exchange rates
over three dealing days between 3 June 2026 and 5 June 2026.
Holders of ADSs are expected to receive $0.4992 per ADS (less
applicable fees). The board has decided not to offer a scrip
dividend alternative in respect of the first quarter 2026 dividend.
Ordinary shareholders and ADS holders (subject to certain
exceptions) will be able to participate in a dividend reinvestment
programme. Details of the first quarter dividend and timetable are
available at bp.com/dividends and
further details of the dividend reinvestment programmes are
available at bp.com/drip.
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
|
|
2026
|
2025
|
2025
|
|
Dividends paid per ordinary share
|
|
|
|
|
|
cents
|
|
8.320
|
8.320
|
8.000
|
|
pence
|
|
6.226
|
6.239
|
6.176
|
|
Dividends paid per ADS (cents)
|
|
49.92
|
49.92
|
48.00
|
Note 9. Net debt
|
Net debt*
|
|
31 March
|
31 December
|
31 March
|
|
$ million
|
|
2026
|
2025
|
2025
|
|
Finance debt(a)
|
|
59,821
|
57,958
|
58,646
|
|
Fair value (asset) liability of hedges related to finance
debt(b)
|
|
1,181
|
780
|
2,096
|
|
|
|
61,002
|
58,738
|
60,742
|
|
Less: cash and cash equivalents
|
|
35,693
|
36,556
|
33,774
|
|
Net debt(c)
|
|
25,309
|
22,182
|
26,968
|
|
Total equity
|
|
76,961
|
74,000
|
77,952
|
|
Gearing*
|
|
24.7%
|
23.1%
|
25.7%
|
(a)
The fair value of finance debt at 31 March 2026 was
$56,331 million (31 December 2025 $54,935 million, 31 March
2025 $55,064 million).
(b)
Derivative financial instruments entered into for the purpose of
managing foreign currency exchange risk associated with net debt
with a fair value liability position of $101 million at
31 March 2026 (fourth quarter 2025 liability of
$94 million and first quarter 2025 liability of
$137 million) are not included in the calculation of net debt
shown above as hedge accounting is not applied for these
instruments.
(c)
Net debt does not include accrued interest, which is reported
within other receivables and other payables on the balance sheet
and for which the associated cash flows are presented as operating
cash flows in the group cash flow statement.
Note 10. Statutory accounts
The financial information shown in this publication, which was
approved by the Board of Directors on 27 April 2026, is unaudited
and does not constitute statutory financial statements. Audited
financial information will be published in bp Annual Report and Form 20-F
2026. bp Annual Report and Form 20-F 2025 has been filed with the Registrar of
Companies in England and Wales. The report of the auditor on those
accounts was unqualified, did not include a reference to any
matters to which the auditor drew attention by way of emphasis
without qualifying the report and did not contain a statement under
section 498(2) or section 498(3) of the UK Companies Act
2006.
Top of
page 24
Additional information
Capital expenditure
Capital expenditure is a measure that provides useful information
to understand how bp's management allocates resources including the
investment of funds in projects which expand the group's activities
through acquisition.
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
$ million
|
|
2026
|
2025
|
2025
|
|
Capital expenditure
|
|
|
|
|
|
Organic capital expenditure*
|
|
3,276
|
3,524
|
3,440
|
|
Inorganic capital expenditure*(a)
|
|
14
|
644
|
183
|
|
|
|
3,290
|
4,168
|
3,623
|
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
$ million
|
|
2026
|
2025
|
2025
|
|
Capital expenditure by segment
|
|
|
|
|
|
gas & low carbon energy(a)
|
|
695
|
889
|
903
|
|
oil production & operations
|
|
1,891
|
1,636
|
1,696
|
|
customers & products
|
|
657
|
1,561
|
943
|
|
other businesses & corporate
|
|
47
|
82
|
81
|
|
|
|
3,290
|
4,168
|
3,623
|
|
Capital expenditure by geographical area
|
|
|
|
|
|
US
|
|
1,602
|
1,529
|
1,433
|
|
Non-US
|
|
1,688
|
2,639
|
2,190
|
|
|
|
3,290
|
4,168
|
3,623
|
(a)
Fourth quarter 2025 includes the final payment for the bp Bunge
Bioenergia acquisition.
Top of
page 25
Adjusting items*
Adjusting items are items that management considers to be important
to period-on-period analysis of the group's results and are
disclosed in order to enable investors to better understand and
evaluate the group's reported financial performance. Adjusting
items are used as a reconciling adjustment to derive underlying RC
profit or loss and related underlying measures which are non-IFRS
measures.
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
$ million
|
|
2026
|
2025
|
2025
|
|
gas & low carbon energy
|
|
|
|
|
|
Gains on sale of businesses and fixed assets
|
|
1
|
190
|
(1)
|
|
Net
impairment and losses on sale of businesses and fixed
assets
|
|
(56)
|
(3,154)
|
(366)
|
|
Environmental and related provisions
|
|
-
|
-
|
-
|
|
Restructuring, integration and rationalization costs
|
|
(13)
|
1
|
(14)
|
|
Fair value accounting effects(a)(b)
|
|
(273)
|
453
|
668
|
|
Other(c)
|
|
59
|
(1,051)
|
74
|
|
|
|
(282)
|
(3,561)
|
361
|
|
oil production & operations
|
|
|
|
|
|
Gains on sale of businesses and fixed assets
|
|
67
|
231
|
9
|
|
Net
impairment and losses on sale of businesses and fixed
assets
|
|
(155)
|
(217)
|
(15)
|
|
Environmental and related provisions
|
|
(170)
|
(37)
|
(31)
|
|
Restructuring, integration and rationalization costs
|
|
(66)
|
11
|
(41)
|
|
Fair value accounting effects
|
|
-
|
-
|
-
|
|
Other
|
|
(2)
|
(211)
|
(29)
|
|
|
|
(326)
|
(223)
|
(107)
|
|
customers & products
|
|
|
|
|
|
Gains on sale of businesses and fixed assets
|
|
33
|
288
|
3
|
|
Net
impairment and losses on sale of businesses and fixed
assets
|
|
(134)
|
(253)
|
(114)
|
|
Environmental and related provisions
|
|
(3)
|
(66)
|
-
|
|
Restructuring, integration and rationalization costs
|
|
(60)
|
(47)
|
(91)
|
|
Fair value accounting effects(b)
|
|
(593)
|
34
|
(82)
|
|
Other
|
|
6
|
113
|
(290)
|
|
|
|
(751)
|
69
|
(574)
|
|
other businesses & corporate
|
|
|
|
|
|
Gains on sale of businesses and fixed assets
|
|
1
|
3
|
-
|
|
Net
impairment and losses on sale of businesses and fixed
assets
|
|
(244)
|
-
|
(5)
|
|
Environmental and related provisions
|
|
-
|
(182)
|
(72)
|
|
Restructuring, integration and rationalization costs
|
|
(110)
|
35
|
(198)
|
|
Fair value accounting effects(b)
|
|
(218)
|
61
|
369
|
|
Gulf of America oil spill
|
|
(4)
|
(4)
|
(9)
|
|
Other
|
|
(8)
|
5
|
10
|
|
|
|
(583)
|
(82)
|
95
|
|
Total before interest and taxation
|
|
(1,942)
|
(3,797)
|
(225)
|
|
Finance costs(d)
|
|
(74)
|
(80)
|
(187)
|
|
Total before taxation
|
|
(2,016)
|
(3,877)
|
(412)
|
|
Taxation on adjusting items(e)(f)
|
|
(520)
|
(418)
|
139
|
|
Taxation - tax rate change effect(g)
|
|
-
|
(2)
|
(539)
|
|
Total after taxation for period
|
|
(2,536)
|
(4,297)
|
(812)
|
(a)
Under IFRS bp marks-to-market the value of the hedges used to
risk-manage LNG contracts, but not the contracts themselves,
resulting in a mismatch in accounting treatment. The fair value
accounting effect includes the change in value of LNG contracts
that are being risk managed, and the underlying result reflects how
bp risk-manages its LNG contracts.
(b) For further information, including
the nature of fair value accounting effects reported in each
segment, see pages 3, 6 and 31.
(c)
Fourth quarter 2025 includes $1,007 million impairment charges
recognized through equity-accounted earnings primarily relating to
the Archaea and offshore wind businesses.
(d)
Includes the unwinding of discounting effects relating to Gulf of
America oil spill payables, the income statement impact of
temporary valuation differences related to the group's interest
rate and foreign currency exchange risk management associated with
finance debt, and the unwinding of discounting effects relating to
certain onerous contract provisions.
(e)
Includes certain foreign exchange effects on tax as adjusting
items. These amounts represent the impact of: (i) foreign exchange
on deferred tax balances arising from the conversion of local
currency tax base amounts into functional currency, and (ii)
taxable gains and losses from the retranslation of US
dollar-denominated intra-group loans to local
currency.
Top of
page 26
(f)
First quarter 2026 and fourth quarter 2025 include the impact of
the reassessment of the recognition of deferred tax assets. Fourth
quarter 2025 also includes limited tax relief on impairment
charges.
(g)
First quarter 2025 includes a revision to the deferred tax impact
of the introduction of the UK Energy Profits Levy (EPL) on
temporary differences existing at the opening balance sheet date.
The EPL increases the headline rate of tax on taxable profits from
bp's North Sea business to 78%. In the first quarter 2025 a
two-year extension of the EPL to 31 March 2030 was substantively
enacted.
Net debt including leases*
Gearing including leases and net debt including leases are non-IFRS
measures that provide the impact of the group's lease portfolio on
net debt and gearing.
|
Net debt including leases
|
|
31 March
|
31 December
|
31 March
|
|
$ million
|
|
2026
|
2025
|
2025
|
|
Net debt*
|
|
25,309
|
22,182
|
26,968
|
|
Lease liabilities
|
|
14,357
|
14,571
|
12,484
|
|
Net
partner (receivable) payable for leases entered into on behalf of
joint operations
|
|
(1,072)
|
(1,067)
|
(91)
|
|
Net debt including leases
|
|
38,594
|
35,686
|
39,361
|
|
Total
equity
|
|
76,961
|
74,000
|
77,952
|
|
Gearing including leases*
|
|
33.4%
|
32.5%
|
33.6%
|
Gulf of America oil spill
|
|
|
31 March
|
31 December
|
|
$ million
|
|
2026
|
2025
|
|
Gulf of America oil spill payables and provisions
|
|
(6,938)
|
(7,256)
|
|
Of
which - current
|
|
(1,137)
|
(1,522)
|
|
|
|
|
|
|
Deferred tax asset
|
|
1,034
|
1,110
|
Payables and provisions presented in the table above reflect the
latest estimate for the remaining costs associated with the Gulf of
America oil spill. Where amounts have been provided on an estimated
basis, the amounts ultimately payable may differ from the amounts
provided and the timing of payments is uncertain. Further
information relating to the Gulf of America oil spill, including
information on the nature and expected timing of payments relating
to provisions and other payables, is provided
in bp
Annual Report and Form 20-F 2025 - Financial statements - Notes 7, 22,
23, 29, and 33.
Working capital* reconciliation
Change in working capital adjusted for inventory holding
gains/losses*, fair value accounting effects* relating to
subsidiaries and other adjusting items is a non-IFRS measure. It
represents what would have been reported as movements in
inventories and other current and non-current assets and
liabilities, if the starting point in determining net cash provided
by operating activities had been underlying replacement cost profit
rather than profit for the period.
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
$ million
|
|
2026
|
2025
|
2025
|
|
Movements in inventories and other current and
non-current assets and liabilities as per condensed group cash flow
statement(a)
|
|
(10,542)
|
1,785
|
(5,069)
|
|
Adjusted for inventory holding gains (losses) (Note 4)
|
|
4,159
|
(874)
|
159
|
|
Adjusted for fair value accounting effects relating to
subsidiaries
|
|
(1,101)
|
608
|
959
|
|
Other adjusting items(b)
|
|
1,454
|
(594)
|
601
|
|
Working
capital release (build) after adjusting for net inventory holding
gains (losses), fair value accounting effects and other adjusting
items
|
|
(6,030)
|
925
|
(3,350)
|
(a)
The movement in working capital includes outflows relating to the
Gulf of America oil spill on a pre-tax basis of $396 million
in the first quarter 2026 (fourth quarter 2025 $1 million,
first quarter 2025 $2 million).
(b)
Other adjusting items relate to the non-cash movement of US
emissions obligations carried as a provision that will be settled
by allowances held as inventory.
Top of
page 27
Underlying operating expenditure* reconciliation
Underlying operating expenditure is a non-IFRS measure and a subset
of production and manufacturing expenses plus distribution and
administration expenses and excludes costs that are classified as
adjusting items. It represents the majority of the remaining
expenses in these line items but excludes certain costs that are
variable, primarily with volumes (such as freight
costs).
Management believes that underlying operating expenditure is a
performance measure that provides investors with useful information
regarding the company's financial performance because it considers
these expenses to be the principal operating and overhead expenses
that are most directly under their control although they also
include certain foreign exchange and commodity price
effects.
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
$ million
|
|
2026
|
2025
|
2025
|
|
From group income statement
|
|
|
|
|
|
Production and manufacturing expenses
|
|
8,537
|
6,759
|
6,114
|
|
Distribution and administration expenses
|
|
4,626
|
4,570
|
4,411
|
|
|
|
13,163
|
11,329
|
10,525
|
|
Less certain variable costs:
|
|
|
|
|
|
Transportation and shipping
costs(a)
|
|
3,083
|
2,797
|
2,446
|
|
Environmental costs(a)
|
|
2,399
|
1,456
|
1,337
|
|
Marketing
and distribution costs
|
|
767
|
486
|
427
|
|
Commission,
storage and handling costs
|
|
399
|
413
|
366
|
|
Other
variable costs and non-cash costs
|
|
503
|
433
|
297
|
|
Certain variable costs and non-cash costs
|
|
7,151
|
5,585
|
4,873
|
|
|
|
|
|
|
|
Adjusted operating expenditure*
|
|
6,012
|
5,744
|
5,652
|
|
Less certain adjusting items*:
|
|
|
|
|
|
Gulf
of America oil spill
|
|
4
|
4
|
9
|
|
Environmental
and related provisions
|
|
173
|
285
|
103
|
|
Restructuring,
integration and rationalization costs
|
|
249
|
-
|
344
|
|
Fair
value accounting effects - derivative instruments relating to the
hybrid bonds
|
|
218
|
(61)
|
(369)
|
|
Other
certain adjusting items
|
|
(1)
|
(123)
|
261
|
|
Certain adjusting items
|
|
643
|
105
|
348
|
|
|
|
|
|
|
|
Underlying operating expenditure
|
|
5,369
|
5,639
|
5,304
|
(a)
First quarter 2025 has been restated for a reclassification in
costs from transportation and shipping to
environmental.
Top of
page 28
Reconciliation of customers & products RC profit before
interest and tax to underlying RC profit before interest and tax*
to adjusted EBITDA* by business
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
$ million
|
|
2026
|
2025
|
2025
|
|
RC profit before interest and tax for customers &
products
|
|
2,452
|
1,415
|
103
|
|
Less: Adjusting items* gains (charges)
|
|
(751)
|
69
|
(574)
|
|
Underlying
RC profit before interest and tax for customers &
products
|
|
3,203
|
1,346
|
677
|
|
By business:
|
|
|
|
|
|
customers
- convenience & mobility
|
|
1,009
|
877
|
664
|
|
Castrol - included in customers
|
|
346
|
227
|
238
|
|
products
- refining & trading
|
|
2,194
|
469
|
13
|
|
|
|
|
|
|
|
Add back: Depreciation, depletion and amortization
|
|
964
|
1,055
|
985
|
|
By business:
|
|
|
|
|
|
customers
- convenience & mobility
|
|
532
|
615
|
567
|
|
Castrol - included in customers
|
|
-
|
35
|
46
|
|
products
- refining & trading
|
|
432
|
440
|
418
|
|
|
|
|
|
|
|
Adjusted EBITDA for customers & products
|
|
4,167
|
2,401
|
1,662
|
|
By business:
|
|
|
|
|
|
customers
- convenience & mobility
|
|
1,541
|
1,492
|
1,231
|
|
Castrol - included in customers
|
|
346
|
262
|
284
|
|
products
- refining & trading
|
|
2,626
|
909
|
431
|
Top of
page 29
Realizations and marker prices
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
|
|
2026
|
2025
|
2025
|
|
Average realizations(a)
|
|
|
|
|
|
Liquids ($/bbl)
|
|
|
|
|
|
US
|
|
51.20
|
49.08
|
62.01
|
|
Europe
|
|
85.35
|
61.84
|
75.31
|
|
Rest of World
|
|
68.74
|
66.55
|
74.59
|
|
bp average
|
|
60.43
|
56.61
|
67.79
|
|
Natural gas ($/mcf)
|
|
|
|
|
|
US
|
|
3.36
|
2.53
|
3.15
|
|
Europe
|
|
8.76
|
9.28
|
16.47
|
|
Rest of World
|
|
6.30
|
6.30
|
7.26
|
|
bp average
|
|
5.37
|
5.21
|
6.40
|
|
Total hydrocarbons ($/boe)
|
|
|
|
|
|
US
|
|
38.91
|
35.64
|
46.26
|
|
Europe
|
|
80.66
|
59.55
|
81.48
|
|
Rest of World
|
|
47.28
|
46.70
|
53.39
|
|
bp average
|
|
45.26
|
42.79
|
52.28
|
|
Average oil marker prices ($/bbl)
|
|
|
|
|
|
Brent
|
|
81.13
|
63.73
|
75.73
|
|
West Texas Intermediate
|
|
72.73
|
59.24
|
71.47
|
|
Western Canadian Select
|
|
57.22
|
46.72
|
58.29
|
|
Alaska North Slope
|
|
77.55
|
64.02
|
75.83
|
|
Average natural gas marker prices
|
|
|
|
|
|
Henry Hub gas price(b) ($/mmBtu)
|
|
5.05
|
3.55
|
3.65
|
|
UK Gas - National Balancing Point (p/therm)
|
|
100.85
|
75.16
|
115.91
|
(a) Based on sales of
consolidated subsidiaries only - this
excludes equity-accounted entities.
(b)
Henry Hub First of Month Index.
Exchange rates
|
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
|
|
2026
|
2025
|
2025
|
|
$/£ average rate for the period
|
|
1.35
|
1.33
|
1.26
|
|
$/£ period-end rate
|
|
1.32
|
1.35
|
1.29
|
|
|
|
|
|
|
|
$/€ average rate for the period
|
|
1.17
|
1.16
|
1.05
|
|
$/€ period-end rate
|
|
1.15
|
1.18
|
1.08
|
|
|
|
|
|
|
|
$/AUD average rate for the period
|
|
0.69
|
0.66
|
0.63
|
|
$/AUD period-end rate
|
|
0.68
|
0.67
|
0.63
|
|
|
|
|
|
|
Top of
page 30
Legal proceedings
For a full discussion of the group's material legal proceedings,
see pages 236-237 of bp Annual Report and Form 20-F
2025.
Glossary
Non-IFRS measures are provided for investors because they are
closely tracked by management to evaluate bp's operating
performance and to make financial, strategic and operating
decisions. Non-IFRS measures are sometimes referred to as
alternative performance measures.
Adjusted EBITDA is a
non-IFRS measure presented for bp's operating segments and is
defined as replacement cost (RC) profit before interest and tax,
adjusting for net adjusting items* before interest and tax, and
adding back depreciation, depletion and amortization and
exploration write-offs (net of adjusting items). Adjusted EBITDA by
business is a further analysis of adjusted EBITDA for the customers
& products businesses. bp believes it is helpful to disclose
adjusted EBITDA by operating segment and by business because it
reflects how the segments measure underlying business delivery. The
nearest equivalent measure on an IFRS basis for the segment is RC
profit or loss before interest and tax, which is bp's measure of
profit or loss that is required to be disclosed for each operating
segment under IFRS. A reconciliation to IFRS information is
provided on page 28 for
the customers & products businesses.
Adjusted operating expenditure is a non-IFRS measure and a subset of production
and manufacturing expenses plus distribution and administration
expenses. It represents the majority of the remaining expenses in
these line items but excludes certain costs that are variable,
primarily with volumes (such as freight costs). Other variable
costs are included in purchases in the income statement. Management
believes that adjusted operating expenditure is a performance
measure that provides investors with useful information regarding
the company's financial performance because it considers these
expenses to be the principal operating and overhead expenses that
are most directly under their control although they also include
certain adjusting items*, foreign exchange and commodity price
effects. The nearest IFRS measures are production and manufacturing
expenses and distributions and administration expenses. A
reconciliation of production and manufacturing expenses plus
distribution and administration expenses to adjusted operating
expenditure is provided on page 27.
Adjusting items are items
that bp discloses separately because it considers such disclosures
to be meaningful and relevant to investors. They are items that
management considers to be important to period-on-period analysis
of the group's results and are disclosed in order to enable
investors to better understand and evaluate the group's reported
financial performance. Adjusting items include gains and losses on
the sale of businesses and fixed assets, impairments, environmental
and related provisions and charges, restructuring, integration and
rationalization costs, fair value accounting effects and costs
relating to the Gulf of America oil spill and other items.
Adjusting items within equity-accounted earnings are reported net
of incremental income tax reported by the equity-accounted entity.
Adjusting items are used as a reconciling adjustment to derive
underlying RC profit or loss and related underlying measures which
are non-IFRS measures. An analysis of adjusting items by segment
and type is shown on page 25.
Capital expenditure is
total cash capital expenditure as stated in the condensed group
cash flow statement. Capital expenditure for the operating
segments, gas & low carbon energy businesses and customers
& products businesses is presented on the same
basis.
Consolidation adjustment - UPII is unrealized profit in inventory arising on
inter-segment transactions.
Divestment proceeds are
disposal proceeds as per the condensed group cash flow
statement.
Excess cash is a non-IFRS
measure and refers to the net of sources and uses of cash. Sources
of cash include net cash provided by operating activities, cash
provided from investing activities and cash receipts relating to
transactions involving non-controlling interests. Uses of cash
include lease liability payments, payments on perpetual hybrid
bonds, dividends paid, cash capital expenditure, the cash cost of
share buybacks to offset the dilution from vesting of awards under
employee share schemes, cash payments relating to transactions
involving non-controlling interests and currency translation
differences relating to cash and cash equivalents as presented on
the condensed group cash flow statement.
Top of
page 31
Glossary (continued)
Fair value accounting effects are non-IFRS adjustments to our IFRS profit
(loss). They reflect the difference between the way bp manages the
economic exposure and internally measures performance of certain
activities and the way those activities are measured under IFRS.
Fair value accounting effects are included within adjusting items.
They relate to certain of the group's commodity, interest rate and
currency risk exposures as detailed below. Other than as noted
below, the fair value accounting effects described are reported in
both the gas & low carbon energy and customer & products
segments.
bp uses derivative instruments to manage the economic exposure
relating to inventories above normal operating requirements of
crude oil, natural gas and petroleum products. Under IFRS, these
inventories are recorded at historical cost. The related derivative
instruments, however, are required to be recorded at fair value
with gains and losses recognized in the income statement. This is
because hedge accounting is either not permitted or not followed,
principally due to the impracticality of effectiveness-testing
requirements. Therefore, measurement differences in relation to
recognition of gains and losses occur. Gains and losses on these
inventories, other than net realizable value provisions, are not
recognized until the commodity is sold in a subsequent accounting
period. Gains and losses on the related derivative commodity
contracts are recognized in the income statement, from the time the
derivative commodity contract is entered into, on a fair value
basis using forward prices consistent with the contract
maturity.
bp enters into physical commodity contracts to meet certain
business requirements, such as the purchase of crude for a refinery
or the sale of bp's gas production. Under IFRS these physical
contracts are treated as derivatives and are required to be fair
valued when they are managed as part of a larger portfolio of
similar transactions. Gains and losses arising are recognized in
the income statement from the time the derivative commodity
contract is entered into.
IFRS require that inventory held for trading is recorded at its
fair value using period-end spot prices, whereas any related
derivative commodity instruments are required to be recorded at
values based on forward prices consistent with the contract
maturity. Depending on market conditions, these forward prices can
be either higher or lower than spot prices, resulting in
measurement differences.
bp enters into contracts for pipelines and other transportation,
storage capacity, oil and gas processing, liquefied natural gas
(LNG) and certain gas and power contracts that, under IFRS, are
recorded on an accruals basis. These contracts are risk-managed
using a variety of derivative instruments that are fair valued
under IFRS. This results in measurement differences in relation to
recognition of gains and losses.
The way that bp manages the economic exposures described above, and
measures performance internally, differs from the way these
activities are measured under IFRS. bp calculates this difference
for consolidated entities by comparing the IFRS result with
management's internal measure of performance. We believe that
disclosing management's estimate of this difference provides useful
information for investors because it enables investors to see the
economic effect of these activities as a whole.
These include:
● Under
management's internal measure of performance the inventory,
transportation and capacity contracts in question are valued based
on fair value using relevant forward prices prevailing at the end
of the period.
● Fair
value accounting effects also include changes in the fair value of
the near-term portions of LNG contracts that fall within bp's risk
management framework. LNG contracts are not considered derivatives,
because there is insufficient market liquidity, and they are
therefore accrual accounted under IFRS. However, oil and natural
gas derivative financial instruments used to risk manage the
near-term portions of the LNG contracts are fair valued under IFRS.
The fair value accounting effect, which is reported in the gas and
low carbon energy segment, represents the change in value of LNG
contracts that are being risk managed and which is reflected in the
underlying result, but not in reported earnings. Management
believes that this gives a better representation of performance in
each period.
Furthermore, the fair values of derivative instruments used to risk
manage certain other oil, gas, power and other contracts, are
deferred to match with the underlying exposure. The commodity
contracts for business requirements are accounted for on an
accruals basis.
In addition, fair value accounting effects include changes in the
fair value of derivatives entered into by the group to manage
currency exposure and interest rate risks relating to hybrid bonds
to their respective first call periods. The hybrid bonds which are
classified as equity instruments were recorded in the balance sheet
at their issuance date at their USD equivalent issued value. Under
IFRS these equity instruments are not remeasured from period to
period, and do not qualify for application of hedge accounting. The
derivative instruments relating to the hybrid bonds, however, are
required to be recorded at fair value with mark to market gains and
losses recognized in the income statement. Therefore,
measurement differences in relation to the recognition of gains and
losses occur. The fair value accounting effect, which is reported
in the other businesses & corporate segment, eliminates the
fair value gains and losses of these derivative financial
instruments that are recognized in the income statement. We
believe that this gives a better representation of performance, by
more appropriately reflecting the economic effect of these risk
management activities, in each period.
Top of
page 32
Glossary (continued)
Gas & low carbon energy segment comprises our gas and low carbon
businesses. Our gas business includes regions with upstream
activities that predominantly produce natural gas, gas trading and
our Archaea Energy business. Our low carbon business includes
solar, offshore wind, hydrogen and CCS, and power trading, and
until December 2025 also included onshore wind. Power trading and
marketing includes trading of both renewable and non-renewable
power.
Gearing and gearing including leases are non-IFRS measures. See Net debt or net debt
including leases below.
Hydrocarbons - Liquids and
natural gas. Natural gas is converted to oil equivalent at 5.8
billion cubic feet = 1 million barrels.
Inorganic capital expenditure is a subset of capital expenditure on a cash basis
and a non-IFRS measure. Inorganic capital expenditure comprises
consideration in business combinations and certain other
significant investments made by the group. It is reported on a cash
basis. bp believes that this measure provides useful information as
it allows investors to understand how bp's management invests funds
in projects which expand the group's activities through
acquisition. The nearest equivalent measure on an IFRS basis is
capital expenditure on a cash basis. Further information and a
reconciliation to IFRS information is provided on
page 24.
Inventory holding gains and losses are non-IFRS adjustments to our IFRS profit (loss)
and represent:
● the
difference between the cost of sales calculated using the
replacement cost of inventory and the cost of sales calculated on
the first-in first-out (FIFO) method after adjusting for any
changes in provisions where the net realizable value of the
inventory is lower than its cost. Under the FIFO method, which we
use for IFRS reporting of inventories other than for trading
inventories, the cost of inventory charged to the income statement
is based on its historical cost of purchase or manufacture, rather
than its replacement cost. In volatile energy markets, this can
have a significant distorting effect on reported income. The
amounts disclosed as inventory holding gains and losses represent
the difference between the charge to the income statement for
inventory on a FIFO basis (after adjusting for any related
movements in net realizable value provisions) and the charge that
would have arisen based on the replacement cost of inventory. For
this purpose, the replacement cost of inventory is calculated using
data from each operation's production and manufacturing system,
either on a monthly basis, or separately for each transaction where
the system allows this approach; and
● an
adjustment relating to certain trading inventories that are not
price risk managed which relate to a minimum inventory volume that
is required to be held to maintain underlying business activities.
This adjustment represents the movement in fair value of the
inventories due to prices, on a grade by grade basis, during the
period. This is calculated from each operation's inventory
management system on a monthly basis using the discrete monthly
movement in market prices for these
inventories.
The amounts disclosed are not separately reflected in the financial
statements as a gain or loss. No adjustment is made in respect of
the cost of inventories held as part of a trading position and
certain other temporary inventory positions that are price
risk-managed. See Replacement cost (RC) profit or loss definition
below.
Liquids - Liquids
comprises crude oil, condensate and natural gas liquids. For the
oil production & operations segment, it also includes
bitumen.
Major projects have a bp
net investment of at least $250 million, or are considered to be of
strategic importance to bp or of a high degree of
complexity.
Net debt and gearing are
non-IFRS measures. Net debt is calculated as finance debt, as shown
in the balance sheet, plus the fair value of associated derivative
financial instruments that are used to hedge foreign currency
exchange and interest rate risks relating to finance debt, for
which hedge accounting is applied, less cash and cash equivalents.
Net debt does not include accrued interest, which is reported
within other receivables and other payables on the balance sheet
and for which the associated cash flows are presented as operating
cash flows in the group cash flow statement. Gearing is defined as
the ratio of net debt to the total of net debt plus total equity.
bp believes these measures provide useful information to investors.
Net debt enables investors to see the economic effect of finance
debt, related hedges and cash and cash equivalents in total.
Gearing enables investors to see how significant net debt is
relative to total equity. The derivatives are reported on the
balance sheet within the headings 'Derivative financial
instruments'. The nearest equivalent measures on an IFRS basis are
finance debt and finance debt ratio. A reconciliation of finance
debt to net debt is provided on page 23.
We are unable to present reconciliations of forward-looking
information for net debt or gearing to finance debt and total
equity, because without unreasonable efforts, we are unable to
forecast accurately certain adjusting items required to present a
meaningful comparable IFRS forward-looking financial measure. These
items include fair value asset (liability) of hedges related to
finance debt and cash and cash equivalents, that are difficult to
predict in advance in order to include in an IFRS
estimate.
Net debt including leases and gearing including
leases are non-IFRS
measures. Net debt including leases is calculated as net debt plus
lease liabilities, less the net amount of partner receivables and
payables relating to leases entered into on behalf of joint
operations. Gearing including leases is defined as the ratio of net
debt including leases to the total of net debt including leases
plus total equity. bp believes these measures provide useful
information to investors as they enable investors to understand the
impact of the group's lease portfolio on net debt and gearing. The
nearest equivalent measures on an IFRS basis are finance debt and
finance debt ratio. A reconciliation of finance debt to net debt
including leases is provided on page 26.
Top of
page 33
Glossary (continued)
Operating cash flow is net
cash provided by (used in) operating activities as stated in the
condensed group cash flow statement.
Organic capital expenditure is a non-IFRS measure. Organic capital expenditure
comprises capital expenditure on a cash basis less inorganic
capital expenditure. bp believes that this measure provides useful
information as it allows investors to understand how bp's
management invests funds in developing and maintaining the group's
assets. The nearest equivalent measure on an IFRS basis is capital
expenditure on a cash basis and a reconciliation to IFRS
information is provided on page 24.
We are unable to present reconciliations of forward-looking
information for organic capital expenditure to total cash capital
expenditure, because without unreasonable efforts, we are unable to
forecast accurately the adjusting item, inorganic capital
expenditure, that is difficult to predict in advance in order to
derive the nearest IFRS estimate.
Production-sharing agreement/contract
(PSA/PSC) is an
arrangement through which an oil and gas company bears the risks
and costs of exploration, development and production. In return, if
exploration is successful, the oil company receives entitlement to
variable physical volumes of hydrocarbons, representing recovery of
the costs incurred and a stipulated share of the production
remaining after such cost recovery.
Realizations are the
result of dividing revenue generated from hydrocarbon sales,
excluding revenue generated from purchases made for resale and
royalty volumes, by revenue generating hydrocarbon production
volumes. Revenue generating hydrocarbon production reflects the bp
share of production as adjusted for any production which does not
generate revenue. Adjustments may include losses due to shrinkage,
amounts consumed during processing, and contractual or regulatory
host committed volumes such as royalties. For the gas & low
carbon energy and oil production & operations segments,
realizations include transfers between
businesses.
Refining availability represents Solomon Associates' operational
availability for bp-operated refineries, which is defined as the
percentage of the year that a unit is available for processing
after subtracting the annualized time lost due to turnaround
activity and all mechanical, process and regulatory
downtime.
Refining indicator margin (RIM) is a simple indicator of the weighted average of
bp's crude slate and product yield as deemed representative for
each refinery. Actual margins realized by bp may vary due to a
variety of factors, including the actual mix of a crude and product
for a given quarter.
Replacement cost (RC) profit or loss / RC profit or loss
attributable to bp shareholders reflects the replacement cost of inventories sold
in the period and is calculated as profit or loss attributable to
bp shareholders, adjusting for inventory holding gains and losses
(net of tax). RC profit or loss for the group is not a recognized
IFRS measure. bp believes this measure is useful to illustrate to
investors the fact that crude oil and product prices can vary
significantly from period to period and that the impact on our
reported result under IFRS can be significant. Inventory holding
gains and losses vary from period to period due to changes in
prices as well as changes in underlying inventory levels. In order
for investors to understand the operating performance of the group
excluding the impact of price changes on the replacement of
inventories, and to make comparisons of operating performance
between reporting periods, bp's management believes it is helpful
to disclose this measure. The nearest equivalent measure on an IFRS
basis is profit or loss attributable to bp shareholders. A
reconciliation to IFRS information is provided on
page 1.
RC profit or loss before interest and tax is bp's measure of profit
or loss that is required to be disclosed for each operating segment
under IFRS.
Structural cost reduction is calculated as decreases in underlying operating
expenditure* (as defined on page 34)
as a result of operational efficiencies, divestments, workforce
reductions and other cost saving measures that are expected to be
sustainable compared with 2023 levels. The total change between
periods in underlying operating expenditure will reflect both
structural cost reductions and other changes in spend, including
market factors, such as inflation and foreign exchange impacts, as
well as changes in activity levels and costs associated with new
operations. Estimates of cumulative annual structural cost
reduction may be revised depending on whether cost reductions
realized in prior periods are determined to be sustainable compared
with 2023 levels. Structural cost reductions are stewarded
internally to support management's oversight of spending over
time.
bp believes this performance measure is useful in demonstrating how
management drives cost discipline across the entire organization,
simplifying our processes and portfolio and streamlining the way we
work. The nearest IFRS measures are production and manufacturing
expenses and distributions and administration expenses. A
reconciliation of production and manufacturing expenses plus
distribution and administration expenses to underlying operating
expenditure is provided on page 27.
Top of
page 34
Glossary (continued)
Technical service contract (TSC) - Technical service contract is an arrangement
through which an oil and gas company bears the risks and costs of
exploration, development and production. In return, the oil and gas
company receives entitlement to variable physical volumes of
hydrocarbons, representing recovery of the costs incurred and a
profit margin which reflects incremental production added to the
oilfield.
Tier 1 and tier 2 process safety events - Tier 1 events are losses of primary containment
from a process of greatest consequence - causing harm to a member
of the workforce, damage to equipment from a fire or explosion, a
community impact or exceeding defined quantities. Tier 2 events are
those of lesser consequence. These represent reported incidents
occurring within bp's operational HSSE reporting boundary. That
boundary includes bp's own operated facilities and certain other
locations or situations. Reported process safety events are
investigated throughout the year and as a result there may be
changes in previously reported events. Therefore comparative
movements are calculated against internal data reflecting the final
outcomes of such investigations, rather than the previously
reported comparative period, as this represents a more up to date
reflection of the safety environment.
Underlying effective tax rate (ETR) is a non-IFRS measure. The underlying ETR is
calculated by dividing taxation on an underlying replacement cost
(RC) basis by underlying RC profit or loss before tax. Taxation on
an underlying RC basis for the group is calculated as taxation as
stated on the group income statement adjusted for taxation on
inventory holding gains and losses and total taxation on adjusting
items. Information on underlying RC profit or loss is provided
below. Taxation on an underlying RC basis presented for the
operating segments is calculated through an allocation of taxation
on an underlying RC basis to each segment. bp believes it is
helpful to disclose the underlying ETR because this measure may
help investors to understand and evaluate, in the same manner as
management, the underlying trends in bp's operational performance
on a comparable basis, period on period. Taxation on an underlying
RC basis and underlying ETR are non-IFRS measures. The nearest
equivalent measure on an IFRS basis is the ETR on profit or loss
for the period.
We are unable to present reconciliations of forward-looking
information for underlying ETR to ETR on profit or loss for the
period, because without unreasonable efforts, we are unable to
forecast accurately certain adjusting items required to present a
meaningful comparable IFRS forward-looking financial measure. These
items include the taxation on inventory holding gains and losses
and adjusting items, that are difficult to predict in advance in
order to include in an IFRS estimate.
Underlying operating expenditure is a non-IFRS measure and a subset of production
and manufacturing expenses plus distribution and administration
expenses and excludes costs that are classified as adjusting items.
It represents the majority of the remaining expenses in these line
items but excludes certain costs that are variable, primarily with
volumes (such as freight costs). Other variable costs are included
in purchases in the income statement. Management believes that
underlying operating expenditure is a performance measure that
provides investors with useful information regarding the company's
financial performance because it considers these expenses to be the
principal operating and overhead expenses that are most directly
under their control although they also include certain foreign
exchange and commodity price effects. The nearest IFRS measures are
production and manufacturing expenses and distribution and
administration expenses. A reconciliation of production and
manufacturing expenses plus distribution and administration
expenses to underlying operating expenditure is provided on
page 27.
Underlying production -
2026 underlying production, when compared with 2025, is production
after adjusting for acquisitions and divestments, curtailments, and
entitlement impacts in our production-sharing agreements/contracts
and technical service contract.
Underlying RC profit or loss / underlying RC profit or loss
attributable to bp shareholders is a non-IFRS measure and is RC profit or loss*
(as defined on page 33)
after excluding net adjusting items and related taxation. See
page 25 for
additional information on the adjusting items that are used to
arrive at underlying RC profit or loss in order to enable a full
understanding of the items and their financial
impact.
Underlying RC profit or loss before interest and
tax for the operating
segments or customers & products businesses is calculated as RC
profit or loss (as defined above) including profit or loss
attributable to non-controlling interests before interest and tax
for the operating segments and excluding net adjusting items for
the respective operating segment or business.
bp believes that underlying RC profit or loss is a useful measure
for investors because it is a measure closely tracked by management
to evaluate bp's operating performance and to make financial,
strategic and operating decisions and because it may help investors
to understand and evaluate, in the same manner as management, the
underlying trends in bp's operational performance on a comparable
basis, period on period, by adjusting for the effects of these
adjusting items. The nearest equivalent measure on an IFRS basis
for the group is profit or loss attributable to bp shareholders.
The nearest equivalent measure on an IFRS basis for segments and
businesses is RC profit or loss before interest and taxation. A
reconciliation to IFRS information is provided on
page 1 for
the group and pages 6-12 for
the segments.
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Glossary (continued)
Underlying RC profit or loss per share / underlying RC profit or
loss per ADS is a non-IFRS
measure. Earnings per share is defined in Note 7. Underlying RC
profit or loss per ordinary share is calculated using the same
denominator as earnings per share as defined in the consolidated
financial statements. The numerator used is underlying RC profit or
loss attributable to bp shareholders, rather than profit or loss
attributable to bp ordinary shareholders. Underlying RC profit or
loss per ADS is calculated as outlined above for underlying RC
profit or loss per share except the denominator is adjusted to
reflect one ADS equivalent to six ordinary shares. bp believes it
is helpful to disclose the underlying RC profit or loss per
ordinary share and per ADS because these measures may help
investors to understand and evaluate, in the same manner as
management, the underlying trends in bp's operational performance
on a comparable basis, period on period. The nearest equivalent
measure on an IFRS basis is basic earnings per share based on
profit or loss for the period attributable to bp ordinary
shareholders.
upstream includes oil and
natural gas field development and production within the gas &
low carbon energy and oil production & operations
segments.
upstream/hydrocarbon plant reliability (bp-operated) is calculated taking 100% less the
ratio of total unplanned plant deferrals divided by installed
production capacity, excluding non-operated assets and bpx energy.
Unplanned plant deferrals are associated with the topside plant and
where applicable the subsea equipment (excluding wells and
reservoir). Unplanned plant deferrals include breakdowns, which
does not include Gulf of America weather related
downtime.
upstream unit production costs are calculated as production cost divided by units
of production. Production cost does not include ad valorem and
severance taxes. Units of production are barrels for liquids and
thousands of cubic feet for gas. Amounts disclosed are for bp
subsidiaries only and do not include bp's share of equity-accounted
entities.
Working capital is
movements in inventories and other current and non-current assets
and liabilities as reported in the condensed group cash flow
statement.
Change in working capital adjusted for inventory holding
gains/losses, fair value accounting effects relating to
subsidiaries and other adjusting items is a non-IFRS measure. It is
calculated by adjusting for inventory holding gains/losses reported
in the period; fair value accounting effects relating to
subsidiaries reported within adjusting items for the period; and
other adjusting items relating to the non-cash movement of US
emissions obligations carried as a provision that will be settled
by allowances held as inventory. This represents what would have
been reported as movements in inventories and other current and
non-current assets and liabilities, if the starting point in
determining net cash provided by operating activities had been
underlying replacement cost profit rather than profit for the
period. The nearest equivalent measure on an IFRS basis for this is
movements in inventories and other current and non-current assets
and liabilities.
bp utilizes various arrangements in order to manage its working
capital including discounting of receivables and, in the supply and
trading business, the active management of supplier payment terms,
inventory and collateral.
Trade marks
Trade marks of the bp group appear throughout this announcement.
They include:
bp, Amoco, Aral, ampm, bp pulse, Castrol, PETRO, TA, and Thorntons
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page 36
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; plans and
expectations regarding bp's balance sheet, financial performance,
results of operations, cost reduction, cash flows, and shareholder
returns; plans and expectations regarding the amount and timing of
dividends, share buybacks, dividend reinvestment programs and the
use of excess cash; plans and expectations regarding bp's upstream
production; plans and expectations regarding the amount, effects,
timing, quantum and nature of certain acquisitions, divestments and
related payments and proceeds, including expectations regarding the
Castrol business, the Gelsenkirchen refinery, the offshore
exploration blocks in Namibia, Lightsource bp and other bp
businesses and assets subject to disposal or divestment; plans and
expectations regarding bp's net debt, credit rating, hybrid capital
(including with respect to the redemption, without replacement, of
hybrid bonds), investment strategy, capital expenditures, capital
frame, underlying effective tax rate, and depreciation, depletion
and amortization; expectations regarding bp's customers business,
including with respect to volumes, earnings growth, fuels margins,
the impact of underlying operating expenditure, structural cost
reduction and the earnings impact of divestments; expectations
regarding bp's products, including underlying performance, industry
refining margins, refinery turnaround activity, and refining
margins and operations at the Whiting refinery; expectations
regarding bp's other businesses & corporate underlying annual
charge; and expectations regarding Gulf of America settlement
payments.
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
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 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;
the conditions and developments in the Middle East; 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 2025
as filed with the US Securities and Exchange
Commission.
Cautionary
note to U.S. investors -
This document contains references to non-proved reserves and
production outlooks based on non-proved reserves that the SEC's
rules prohibit us from including in our filings with the SEC. U.S.
investors are urged to consider closely the disclosures in our Form
20-F, SEC File No. 1-06262. This form is available on our website
at www.bp.com. You can also obtain this form from the SEC's website
at www.sec.gov.
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Contacts
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London
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Houston
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Press Office
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Rita Brown
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Paul Takahashi
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+44 (0) 7787 685821
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+1 713 903 9729
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Investor Relations
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Craig Marshall
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Graham Collins
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bp.com/investors
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+44 (0) 203 401 5592
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+1 832 753 5116
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BP p.l.c.'s LEI Code 213800LH1BZH3DI6G760
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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BP
p.l.c.
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(Registrant)
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Dated: 28
April 2026
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/s/ Ben
J. S. Mathews
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------------------------
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Ben J.
S. Mathews
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Company
Secretary
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