BP p.l.c. (BP) Bundle
A Brief History of BP p.l.c.
BP p.l.c., originally known as the Anglo-Persian Oil Company, was founded in 1909 in Persia (now Iran). The company was established to exploit oil reserves discovered in the region. Over the decades, BP expanded its operations globally, becoming one of the world's leading oil and gas companies.
Major Milestones
- 1914: The company was renamed the Anglo-Iranian Oil Company.
- 1954: The company became known as British Petroleum.
- 1998: BP merged with Amoco, significantly increasing its market presence.
- 2000: BP rebranded itself as "Beyond Petroleum" to emphasize its commitment to renewable energy.
- 2010: The Deepwater Horizon oil spill in the Gulf of Mexico resulted in significant environmental and financial repercussions for the company.
- 2020: BP announced a strategy to become a net-zero company by 2050, focusing on renewable energy and reducing fossil fuel dependency.
Recent Developments (2024)
As of 2024, BP has continued to adapt its business strategy in response to market dynamics and environmental challenges. The company has been increasing investments in renewable energy and low-carbon technologies.
Financial Performance
In the third quarter of 2024, BP reported a profit of $0.2 billion, a decline from $4.9 billion in the same quarter of 2023. The underlying replacement cost (RC) profit was $2.3 billion, compared to $3.3 billion in Q3 2023. The overall financial performance reflects the impacts of weaker realized refining margins and lower liquids realizations.
| Financial Metrics | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 |
|---|---|---|---|---|
| Profit (Loss) for the Period | $0.2 billion | $4.9 billion | $2.8 billion | $15.4 billion |
| Underlying RC Profit | $2.3 billion | $3.3 billion | $7.7 billion | $10.8 billion |
| Adjusted EBITDA | $9.7 billion | $10.3 billion | $29.6 billion | $33.1 billion |
| Net Debt | $24.3 billion | $22.3 billion | $24.3 billion | $22.3 billion |
| Finance Debt | $57.5 billion | $48.8 billion | $57.5 billion | $48.8 billion |
Operational Highlights
BP's total hydrocarbon production in Q3 2024 was reported at 1,488 mboe/d, a 7.7% increase compared to the same quarter in 2023. The company has also focused on expanding its renewable energy portfolio, with installed renewables capacity reaching 2.8 GW.
Market Position
As of September 30, 2024, BP remains one of the largest oil and gas companies globally, with significant investments in both traditional energy sources and renewables. The company's commitment to transitioning to a low-carbon future is evident in its strategic initiatives and operational adjustments.
Dividends
For the third quarter of 2024, BP announced a dividend of 8.00 cents per ordinary share, an increase from 7.27 cents per share in the same quarter of 2023. Over nine months, the dividend increased to 23.27 cents from 21.15 cents in 2023.
| Dividends | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 |
|---|---|---|---|---|
| Dividends per Ordinary Share (cents) | 8.00 | 7.27 | 23.27 | 21.15 |
| Dividends per ADS (cents) | 48.00 | 43.62 | 135.24 | 122.94 |
BP's focus on sustainable energy solutions and its financial resilience continues to shape its operations and market presence as of 2024.
A Who Owns BP p.l.c. (BP)
Ownership Structure
As of 2024, BP p.l.c. has a diverse ownership structure comprising institutional investors, retail shareholders, and corporate entities. The total number of issued ordinary shares as of September 30, 2024, was 16,262,632,593, down from 17,174,461,587 at the end of the previous year. The company has also repurchased shares, with 717,435,379 ordinary shares held in treasury as of the same date.
Major Shareholders
The major shareholders of BP include a mix of institutional investors and individual stakeholders. The following table summarizes the top shareholders as of 2024:
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Vanguard Group | 8.25% | 1,339,000,000 |
| BlackRock, Inc. | 7.85% | 1,275,000,000 |
| State Street Corporation | 4.45% | 724,000,000 |
| Royal Bank of Canada | 3.10% | 502,000,000 |
| Other Institutional Investors | 16.35% | 2,670,000,000 |
| Retail Investors | 60.00% | 9,750,000,000 |
Institutional Ownership
Institutional ownership remains significant, with major investment firms holding substantial stakes. The overall institutional ownership percentage stands at approximately 40%. The following statistics highlight the financial strength and share activities of BP:
| Metric | Value |
|---|---|
| Market Capitalization | $132.5 billion |
| Shares Outstanding | 16.26 billion |
| Average Daily Trading Volume | 15 million shares |
| Dividend Yield | 4.61% |
| Trailing Twelve Months (TTM) Earnings per Share (EPS) | $1.26 |
Recent Shareholder Activities
BP has been actively engaging in share buyback programs, with a total of $1.75 billion completed by October 25, 2024. The company's strategy includes maintaining a resilient dividend, announced at 8 cents per ordinary share for the third quarter of 2024.
Summary of Shareholder Returns
The following table outlines the recent shareholder returns and performance metrics:
| Year | Dividends per Share (USD) | Share Buyback (USD) | Total Shareholder Return (%) |
|---|---|---|---|
| 2024 | 0.32 | 3.5 billion | 5.2% |
| 2023 | 0.29 | 2.5 billion | 8.1% |
| 2022 | 0.24 | 1.8 billion | 10.5% |
Non-Controlling Interests
As of September 30, 2024, BP reported non-controlling interests amounting to $5.6 billion, reflecting interests in various joint ventures and partnerships.
Conclusion on Ownership and Shareholder Dynamics
The ownership of BP p.l.c. is characterized by a robust mix of institutional and retail investors, with significant engagement in shareholder return initiatives. The company's strategic focus on maintaining a strong balance sheet and rewarding shareholders through dividends and buybacks underscores its commitment to enhancing shareholder value going forward.
BP p.l.c. (BP) Mission Statement
Mission Statement Overview
The mission of BP p.l.c. is to reimagine energy for people and the planet. BP aims to deliver solutions that help the world transition to a low-carbon economy while creating long-term value for its stakeholders.
Strategic Objectives
- Transition to renewable energy sources and reduce carbon emissions.
- Invest in low-carbon technologies and sustainable energy solutions.
- Enhance operational efficiency and reduce costs across its traditional oil and gas operations.
Financial Performance
As of the third quarter of 2024, BP reported a profit of $0.2 billion attributable to shareholders, down from $4.9 billion in the same period in 2023. The underlying replacement cost (RC) profit was $2.3 billion for the quarter, a decrease from $3.3 billion year-over-year.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Profit (Loss) for the Period | $0.2 billion | $4.9 billion | -95.9% |
| Underlying RC Profit | $2.3 billion | $3.3 billion | -30.3% |
| Operating Cash Flow | $6.8 billion | $8.7 billion | -21.9% |
| Net Debt | $24.3 billion | $22.3 billion | +8.9% |
| Finance Debt | $57.5 billion | $48.8 billion | +17.7% |
Investment Focus
BP has committed to a capital expenditure budget of approximately $16 billion for 2024, focusing on both traditional oil and gas operations and renewable energy investments.
Dividend Policy
For Q3 2024, BP announced a dividend of $0.08 per ordinary share, up from $0.0727 in Q3 2023.
Renewable Energy Initiatives
By the end of September 2024, BP had developed a renewables pipeline of 46.8 GW, up from 43.9 GW in the previous year. The installed renewable capacity reached 2.8 GW, compared to 2.5 GW in 2023.
Environmental Goals
BP's mission includes a strong commitment to reducing greenhouse gas emissions. The company aims for net zero emissions by 2050, with significant interim targets set for 2030.
Acquisitions and Partnerships
In October 2024, BP acquired additional stakes in bp Bunge Bioenergia and Lightsource bp, increasing its ownership to 100%. The total consideration for these acquisitions was estimated at $1.3 billion.
Market Position
BP remains one of the leading energy companies globally, with a focus on transitioning to a more sustainable energy model while maintaining robust oil and gas operations.
How BP p.l.c. (BP) Works
Financial Performance Overview
In the third quarter of 2024, BP p.l.c. reported a profit of $0.2 billion, compared to a profit of $4.9 billion in the third quarter of 2023. The underlying replacement cost (RC) profit for the same quarter was $2.3 billion, down from $3.3 billion in the previous year.
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Profit Attributable to BP Shareholders ($ billion) | 0.2 | 4.9 | -4.7 |
| Underlying RC Profit ($ billion) | 2.3 | 3.3 | -1.0 |
| Adjusted EBITDA ($ billion) | 9.654 | 10.306 | -0.652 |
Debt and Cash Flow
As of September 30, 2024, BP's finance debt stood at $57.5 billion, an increase from $52.0 billion at the end of 2023. Net debt also rose to $24.3 billion from $20.9 billion over the same period.
| Metric | Q3 2024 | Q4 2023 | Change |
|---|---|---|---|
| Finance Debt ($ billion) | 57.5 | 52.0 | +5.5 |
| Net Debt ($ billion) | 24.3 | 20.9 | +3.4 |
| Operating Cash Flow ($ billion) | 6.8 | 8.7 | -1.9 |
Segment Performance
BP's business segments have shown varying performance in Q3 2024:
| Segment | RC Profit Before Interest and Tax ($ million) | Underlying RC Profit Before Interest and Tax ($ million) |
|---|---|---|
| Gas & Low Carbon Energy | 1,007 | 1,756 |
| Oil Production & Operations | 1,891 | 2,794 |
| Customers & Products | 23 | 381 |
| Other Businesses & Corporate | 653 | 231 |
Market Trends and Realizations
Average realizations for BP's products in Q3 2024 were as follows:
| Product Type | Average Realization ($/unit) |
|---|---|
| Liquids | 70.68 |
| Natural Gas | 4.75 | Total Hydrocarbons | 46.81 |
Dividend and Shareholder Returns
BP announced a dividend of 8 cents per share for the third quarter of 2024, reflecting an increase from 7.27 cents in the same period of 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Dividend per Ordinary Share (cents) | 8.00 | 7.27 |
| Share Buyback Program ($ billion) | 1.75 | 1.75 |
Production Data
BP's total hydrocarbons production for the third quarter of 2024 was reported at 1,488 mboe/d, a 7.7% increase compared to Q3 2023.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Hydrocarbons Production (mboe/d) | 1,488 | 1,382 | +7.7 |
Strategic Initiatives
BP continues to focus on its transition growth engines, with a renewables pipeline of 46.8 GW as of Q3 2024, up from 43.9 GW in Q3 2023.
| Renewables Pipeline (GW) | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Renewables Pipeline | 46.8 | 43.9 |
| Renewables Pipeline - Americas | 17.8 | 18.4 |
| Renewables Pipeline - Europe | 15.4 | 13.4 |
How BP p.l.c. (BP) Makes Money
Revenue Breakdown
As of 2024, BP generates revenue through several key segments including oil production, gas and low carbon energy, as well as customer and product services. The total sales and other operating revenues for the third quarter of 2024 amounted to $47.254 billion, compared to $53.269 billion in the same quarter of 2023.
| Segment | Q3 2024 Revenue ($ million) | Q3 2023 Revenue ($ million) |
|---|---|---|
| Gas & Low Carbon Energy | 8,141 | 9,946 |
| Oil Production & Operations | 608 | 478 |
| Customers & Products | 38,575 | 42,400 |
| Other Businesses & Corporate | (70) | 445 |
| Total Revenues | 47,254 | 53,269 |
Operating Profit
For the third quarter of 2024, BP reported a profit before interest and taxation of $2.457 billion, down from $8.287 billion in the same quarter of 2023. The profit attributable to BP shareholders was $206 million, compared to $4.858 billion in Q3 2023.
Segment Profit Analysis
BP's profit segments are categorized into gas and low carbon energy, oil production operations, customers and products, and other businesses. The replacement cost profit before interest and tax for each segment in Q3 2024 is detailed below:
| Segment | Q3 2024 Profit Before Interest & Tax ($ million) | Q3 2023 Profit Before Interest & Tax ($ million) |
|---|---|---|
| Gas & Low Carbon Energy | 1,007 | 2,275 |
| Oil Production & Operations | 1,891 | 3,427 |
| Customers & Products | 23 | 1,549 |
| Other Businesses & Corporate | 653 | (500) |
| Total Profit | 3,639 | 6,694 |
Cash Flow and Debt Management
In Q3 2024, BP's operating cash flow was $6.761 billion, down from $8.747 billion in Q3 2023. The company reported finance debt of $57.5 billion and net debt of $24.3 billion as of the end of September 2024.
Dividends and Share Buybacks
BP has maintained a focus on returning capital to shareholders, announcing a dividend of 8 cents per ordinary share for Q3 2024, up from 7.270 cents in the previous quarter. Additionally, BP completed a $1.75 billion share buyback program in October 2024.
Market Realizations
The average realizations for BP's products in Q3 2024 were as follows:
| Product | Average Realization ($) |
|---|---|
| Liquids (average) | 70.68 |
| Natural Gas (average) | 4.75 |
| Total Hydrocarbons (average) | 46.81 |
Production Statistics
BP's production for Q3 2024 was reported at 1,488 mboe/d, which is a 7.7% increase compared to the same period in 2023. The company's operational focus remains on enhancing production volumes while also transitioning towards low carbon energy initiatives.
Strategic Investments
BP has been actively investing in renewable energy sources, with a renewables pipeline of 46.8 GW as of September 2024. The company aims to increase its footprint in renewable energy while maintaining robust operations in oil and gas.
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Article updated on 8 Nov 2024
Resources:
- BP p.l.c. (BP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of BP p.l.c. (BP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View BP p.l.c. (BP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.