• Upstream Production: Increased by around 3% year-to-date, with liquids production up 5%.

• Plant Reliability: More than 95% in Upstream operations.

• Refining Availability: More than 96% for the quarter.

• EV Charging Business Growth: 80% year-on-year increase.

• Biogas Supply: 23 kbd online with eight plants commissioning in 4Q.

• Underlying Profit: $2.3 billion for the quarter.

• Share Buyback: Announced $1.75 billion.

• Dividend: $0.08 per ordinary share.

• Cost Savings Target: Over $0.5 billion in 2025, aiming for at least $2 billion by 2026.

• Warning! GuruFocus has detected 3 Warning Sign with BP.

Release Date: October 29, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• BP PLC (NYSE:BP) reported a 3% increase in upstream production year-to-date, with liquids production up 5%.

• The company achieved an 80% year-on-year growth in its EV charging business, reaching 1 terawatt hour of electrons sold globally.

• BP PLC (NYSE:BP) announced a $1.75 billion share buyback and a dividend per ordinary share of $0.08, reflecting strong shareholder returns.

• The company is on track to deliver over $0.5 billion of cost savings in 2025, aiming for at least $2 billion by 2026.

• BP PLC (NYSE:BP) has made significant progress in accessing new resource opportunities in Iraq, Azerbaijan, and Abu Dhabi, enhancing its portfolio.

Negative Points

• BP PLC (NYSE:BP) experienced a weak quarter in its oil trading business, impacting downstream earnings.

• The company faces challenges in refining margins, particularly in Europe, due to market conditions.

• BP PLC (NYSE:BP) has increased its divestment guidance, indicating potential reliance on asset sales to manage cash flow.

• The company is dealing with high levels of net debt, including $3.7 billion from recent acquisitions, which may impact future financial flexibility.

• BP PLC (NYSE:BP) is facing challenges in the US natural gas market, with weak pricing affecting operations in regions like the Haynesville and Permian.

Q & A Highlights

Q: Can you discuss any changes in BP's strategy and the performance of the liquids trading business this quarter? A: Murray Auchincloss, CEO, stated that BP's strategic direction remains focused on being an integrated energy company (IEC), emphasizing returns and capital efficiency. The liquids trading performance was weak due to low market volatility, but overall trading is on track for an average year.

Q: What are BP's plans regarding share buybacks and divestments for 2025? A: Murray Auchincloss mentioned that BP is on track to meet its $25 billion divestment target by 2025, with $20 billion already announced. Kate Thomson, CFO, confirmed a $1.75 billion share buyback for Q4 2024, with further guidance to be provided in February 2025.