BP Plc - 2Q19 Part 1 of 1

BP p.l.c. Group results

 

Second quarter and half year 2019

 
     

 


 

Highlights

Midway through 5-year plan, continuing to deliver strong performance and strategic progress

•   Strong financial results

Underlying replacement cost profit for the second quarter of 2019 was $2.8 billion, similar to a year earlier. The quarter's result largely reflected continued good operating performance, offset by oil prices lower than in the second quarter of 2018.

Non-operating items in the second quarter of $0.9 billion, post-tax, related mainly to impairment charges.

Operating cash flow, excluding Gulf of Mexico oil spill payments, was $8.2 billion for the second quarter, including a $1.5-billion working capital release (after adjusting for net inventory holding gains), and $14.2 billion for the first half, including a $0.5-billion working capital release.

Gulf of Mexico oil spill payments of $1.4 billion on a post-tax basis in the second quarter were primarily the scheduled annual payments.

A dividend of 10.25 cents a share was announced for the quarter.

•   Solid Upstream and Downstream performance

Reported oil and gas production for the quarter averaged 3.8 million barrels a day of oil equivalent, 4% higher than a year earlier.

With the start-up of Culzean in the North Sea this quarter, four Upstream major projects have begun production in the first half of the year.

Final investment decisions were taken in the quarter for new Upstream major projects in India and the Gulf of Mexico, as well as agreement for additional investment in Angola.

In Downstream, quarter on quarter growth in lubricants and fuels marketing, more than offset by planned turnarounds ahead of IMO 2020.

•   Growing low carbon businesses

BP agreed to combine its Brazilian biofuels and biopower business with that of Bunge in a new equally-owned joint venture. On completion, BP's interest in the venture will be more than 50% larger than its existing biofuels business.

Lightsource BP (43% owned by BP) has continued to make strong progress, including agreeing a significant expansion in Brazil.

BP agreed a $30 million venturing investment in Calysta, which will use BP's natural gas to produce protein feed for aquaculture and agriculture.

 

 

Bob Dudley - Group chief executive:

At the midpoint of our five-year plan, BP is right on target. Reliable performance and disciplined growth across our businesses are delivering strong earnings, cash flow and returns to shareholders. And this is also allowing us to grow businesses that can make a significant contribution in the energy transition, helping deliver the energy the world needs with lower carbon.

 

 

Financial summary

 

Second

First

Second

 

First

First

 

 

quarter

quarter

quarter

 

half

half

$ million

 

2019

2019

2018

 

2019

2018

Profit for the period attributable to BP shareholders

 

1,822

 

2,934

 

2,799

 

 

4,756

 

5,268

 

Inventory holding (gains) losses, net of tax

 

(47

)

(839

)

(1,010

)

 

(886

)

(1,090

)

RC profit

 

1,775

 

2,095

 

1,789

 

 

3,870

 

4,178

 

Net (favourable) adverse impact of non-operating items and fair value accounting effects, net of tax

 

1,036

 

263

 

1,033

 

 

1,299

 

1,230

 

Underlying RC profit

 

2,811

 

2,358

 

2,822

 

 

5,169

 

5,408

 

RC profit per ordinary share (cents)

 

8.72

 

10.38

 

8.96

 

 

19.10

 

20.96

 

RC profit per ADS (dollars)

 

0.52

 

0.62

 

0.54

 

 

1.15

 

1.26

 

Underlying RC profit per ordinary share (cents)

 

13.82

 

11.69

 

14.14

 

 

25.51

 

27.13

 

Underlying RC profit per ADS (dollars)

 

0.83

 

0.70

 

0.85

 

 

1.53

 

1.63