Here is a summary of the key points from the trading statement released by BP PLC on January 14, 2025
Fourth-quarter 2024 trading statementBP provides an overview of its performance and expectations for the fourth quarter of 2024. The information is subject to change and actual results may vary.
Updated 4Q24 guidanceBP expects lower upstream production compared to the previous quarter, with decreases in both oil and gas segments. Realizations are expected to have a mixed impact, with favorable results in the gas segment and unfavorable results in the oil segment. Exploration write-offs are expected to be lower.
In the customers & products segment, results are expected to be impacted by seasonally lower volumes, lower fuel margins, foreign exchange losses, and a one-off inventory adjustment. Weaker refining margins and higher turnaround activity will also impact the products segment.
Other itemsNet debt is expected to be lower due to divestments, bond issuances, and acquired debt from recent transactions. Non-cash charges related to impairments of $1.0-2.0 billion are expected in the quarter.
Updated FY24 guidanceBP updates its full-year guidance, including an expected underlying effective tax rate of around 42% and a higher annual charge for other businesses & corporate due to foreign exchange losses.
Trading conditionsBrent crude oil prices averaged lower in the fourth quarter compared to the previous quarter. The bp RMM index also decreased.
Cautionary StatementBP provides a standard cautionary statement regarding forward-looking information and the potential risks and uncertainties that may impact actual results.
The trading statement includes a glossary of terms, contact information, and additional notes.
Overall, BPs trading statement provides an overview of the companys performance and expectations for the fourth quarter of 2024, with updates on production, realizations, taxes, and other financial factors. The statement also highlights potential risks and uncertainties that may impact BPs results.
| Financial Metric | 4Q24 vs 3Q24 | Full Year 2024 |
|---|---|---|
| Reported and underlying upstream production | Lower | Slightly higher than 2023, with Oil production & operations higher and Gas & low carbon energy lower |
| Customers | Seasonally lower volumes, lower fuels margins, foreign exchange losses, and a one-off inventory purchase price adjustment | Growth from convenience, stronger Castrol and bp pulse margin growth; fuels margins remain sensitive to cost of supply |
| Products | Weaker realized refining margins and higher impact from turnaround activity; expected to remain low in 4Q24 | Lower industry refining margins, realized margins impacted by narrower North American heavy crude oil differentials; higher turnaround activity in 2H24 |
| OB&C | N/A | Around $0.3-0.4 billion charge |
| DD&A | N/A | Slightly higher than 2023 |
| Underlying effective tax rate | N/A | Expected to be around 42% (previously guided at 40%) due to changes in geographical mix of profits |
| Capital expenditure | N/A | Around $16 billion |
| Divestment and other proceeds | N/A | Greater than $3 billion |
| Net Debt | Lower compared to the prior quarter due to divestments, hybrid bond issuance, and acquired net debt from transactions | N/A |