BP Lubricant Half-Year Report 2023

The company reported an underlying replacement cost profit of $2.6 billion compared to $5.0 billion last quarter.

Compared to the first quarter:

• In gas and low carbon energy the result reflects an exceptional gas marketing and trading result, albeit lower than the first quarter, and lower gas realisations.
• In oil production and operations, the result reflects lower realisations.
• Operating cash flow was $6.3 billion in the second quarter. This includes a working capital release of $100 million.
• Capital expenditure was $4.3 billion including inorganic expenditure, net of adjustments, of $1.1 billion related to the acquisition of TravelCenters of America.
• During the quarter, we repurchased $2.1 billion of shares. And the $1.75 billion programme announced with first quarter 2023 results was completed on 28 July.
• In the second quarter, bp’s surplus cash was an outflow of $300 million and, at the end of the second quarter, net debt was $23.7 billion.

We remain committed to maintaining a strong investment grade credit rating. We are targeting further progress within an ‘A’ grade credit rating, however we have no intention to target an ‘AA’ rating.

As a result of our strong surplus cash flow generation, over the last four quarters we have executed over $10 billion of buybacks and have reduced our issued share capital by over 9%.