• Reported loss primarily due to decision to exit Rosneft shareholding
• Net debt reduced to $27.5bn; further share buyback announced
• Delivering resilient hydrocarbons: major project start-up in the Gulf of Mexico; deal to create Azule Energy in Angola
• Continued progress in transformation to an IEC - momentum in each of the five transition growth engines

Bernard Looney,chief executive officer commented:
In a quarter dominated by the tragic events in Ukraine and volatility in energy markets, bp's focus has been on supplying the reliable energy our customers need. Our decision in February to exit our shareholding in Rosneft resulted in the material non-cash charges and headline loss we reported today. But it has not changed our strategy, our financial frame, or our expectations for shareholder distributions. Importantly bp continues to perform and step-by-step we are making progress executing our IEC strategy - producing resilient hydrocarbons to provide energy security while investing with discipline in the energy transition.

Highlights

Reported loss of $20.4 billion, underlying replacement cost profit of $6.2 billion

• Reported loss for the quarter was $20.4 billion, compared with a profit of $2.3 billion for the fourth quarter 2021. The reported result includes adjusting items* before tax of $30.8 billion.
• Adjusting items include pre-tax charges of $24.0 billion and $1.5 billion as a result of the loss of significant influence and bp's decision to exit its 19.75% shareholding in Rosneft and its other businesses with Rosneft in Russia respectively.
• As a result, in the first quarter the post-tax charge is $24.4 billion and the total reduction in equity is $14.7 billion.
• Adjusting items also include fair value accounting effects of $5.8 billion. See page 3 for further details.
• Underlying replacement cost profit was $6.2 billion, compared with $4.1 billion for the previous quarter. This was driven by exceptional oil and gas trading, higher oil realizations and a stronger refining result, partly offset by the absence of Rosneft from the first quarter underlying result.
• For the first quarter bp has announced a dividend of 5.46 cents per ordinary share payable in June 2022.

Net debt reduced to $27.5 billion; further $2.5 billion share buyback announced
 

• Operating cash flow of $8.2 billion includes a working capital build of $4.1 billion (after adjusting for inventory holding gains and fair value accounting effects). 
• Capital expenditure in the quarter was $2.9 billion. bp continues to expect capital expenditure of $14-15 billion in 2022. 
• bp received divestment and other proceeds of $1.2 billion in the first quarter and continues to expect to receive total proceeds of $2-3 billion during 2022. 
• Net debt fell to $27.5 billion at the end of the first quarter. 
• During the first quarter bp executed share buybacks of $1.6 billion - $0.5 billion during January to offset the expected full-year dilution of the 2022 vesting of awards under employee share schemes and a further $1.1 billion representing progress against the $1.5 billion programme announced with the fourth quarter 2021 results on 8 February. This programme was completed on 27 April. 
• During the first quarter bp generated surplus cash flow of $4.1 billion and intends to execute a $2.5 billion share buyback prior to announcing its second quarter results.

Progressing transformation to an Integrated Energy Company

• In resilient hydrocarbons since the start of 2022 bp announced the start-up of the Herschel Expansion major project in the Gulf of Mexico; signed a final agreement with Eni to create Azule Energy a new independent joint venture in Angola; and advanced its strategy in biofuels producing sustainable aviation fuel at bp's Lingen refinery and entering into a long-term strategic offtake and market development agreement for low-carbon biofuels feedstock with Nuseed. 
• In convenience and mobility since the start of 2022 bp has continued to progress its EV charging strategy - launching a strategic partnership with Volkswagen Group and announcing plans to invest £1 billion in the UK over the next decade; signed a global strategic convenience partnership with Uber, aiming to make more than 3,000 retail locations available on Uber Eats by 2025; and signed a strategic collaboration agreement with DHL Express to supply sustainable aviation fuel. 
• In low carbon energy since the start of 2022 bp has increased its position in offshore wind with the ScotWind lease option award of 1.45GW net; agreed to form an offshore wind partnership with Marubeni; and advanced its hydrogen strategy, announcing plans to develop H2-Fifty, a 250MW gross green hydrogen plant in Rotterdam and signing an agreement to form a joint venture with Aberdeen City Council to develop a hydrogen hub.

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