BP
🇬🇧 LSE:BP
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Dec 31, 2024
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BP Q4 2024 Earnings Report
Key Takeaways
BP reported a net loss of $1.96 billion in Q4 2024, primarily due to lower refining margins, weaker fuel margins, and adverse fair value accounting effects. Revenue for the quarter was $45.75 billion, with underlying RC profit of $1.2 billion. The company announced a dividend of 8 cents per share and a $1.75 billion share buyback.
BP Revenue
BP EPS
BP Revenue by Segment
BP Revenue by Geographic Location
Forward Guidance
BP expects Q1 2025 upstream production to decline due to asset divestments and base declines. Refining margins are expected to remain low, and fuels margins will remain sensitive to cost of supply. The company plans to execute a $1.75 billion share buyback and review financial guidance in February 2025.
Positive Outlook
- Continued focus on cost reduction, with a target of at least $2 billion in savings by 2026.
- $1.75 billion share buyback planned before Q1 2025 results.
- Stable dividend of 8 cents per share, reflecting shareholder returns commitment.
- Growth in renewable energy pipeline, including a new offshore wind joint venture with JERA.
- Operational efficiency improvements with a 2.0% increase in upstream production for FY 2024.
Challenges Ahead
- Declining upstream production in Q1 2025 due to asset divestments in Egypt and Trinidad.
- Lower refining margins expected to persist in Q1 2025.
- Fuels margins remain highly sensitive to movements in cost of supply.
- Continued impact of foreign exchange volatility on earnings delivery.
- Increased depreciation and higher exploration write-offs affecting profit margins.
Revenue & Expenses
Visualization of income flow from segment revenue to net income