Highlights

• Resilient financial performance: 1Q25 underlying RC profit $1.4bn; dividend per ordinary share of 8 cents; $0.75bn share buyback.
• Delivering strong operations: 1Q25 upstream plant reliability* 95.4%; 1Q25 refining availability* 96.2%.
• Growing upstream: Safely started up three major projects*; six exploration discoveries.
• Executing our strategy at pace: Good progress on our divestment programme, including the strategic review of Castrol, and the intentions to sell mobility & convenience businesses in Austria and the Netherlands and the Gelsenkirchen refinery.

Murray Auchincloss , Chief executive officer:
In February, we announced a fundamental reset of our strategy - to grow the upstream, focus the downstream and invest with discipline in the transition - and we have already made significant progress. So far this year we have started up three major projects, made six exploration discoveries and have progressed our divestment programme - all while delivering strong operational performance, with over 95% upstream plant reliability supporting the best operating efficiency on record, and over 96% refining availability. We continue to monitor market volatility and changes and remain focused on moving at pace. I’m confident that our plans to strengthen the balance sheet, reduce costs, and improve cash flow and returns will grow long-term shareholder value and strengthen the resilience of bp.

Kate Thomson Chief financial officer:
In the first quarter, we delivered resilient financial results and are in action to improve the performance of bp. Underlying RC profit grew quarter-on-quarter to $1.4 billion and we have made good progress on our plans to deliver on our structural cost reduction target. Our financial frame provides us with flexibility through cycle. We continue to optimize investment plans and now expect 2025 capital expenditure of around $14.5 billion. We are also making good progress on divestments and now expect proceeds of $3-4 billion this year. This underpins our confidence in meeting our net debt target of $14-18 billion by the end of 2027. For the first quarter, we have announced a dividend per ordinary share of 8 cents and a share buyback of $750 million. 

1Q25 underlying replacement cost (RC) profit $1.4 billion

• Underlying RC profit for the quarter was $1.4 billion, compared with $1.2 billion for the previous quarter. Compared with the fourth quarter 2024, the underlying result reflects lower impact from turnaround activity, stronger realized refining margins, lower other businesses & corporate underlying charge, partly offset by a weak gas marketing and trading result. The underlying effective tax rate (ETR) in the quarter was 50%.
• Reported profit for the quarter was $0.7 billion, compared with a loss of $2.0 billion for the fourth quarter 2024. The reported result for the first quarter is adjusted for inventory holding gains of $0.2 billion (pre-tax) and a net adverse impact of adjusting items of $0.4 billion (pre-tax) to derive the underlying RC profit. Adjusting items include pre-tax net impairments of $0.4 billion and favourable fair value accounting effects of $1.0 billion. See page 24 for more information on adjusting items.

Segment results(b)

• Gas & low carbon energy: The RC profit before interest and tax for the first quarter 2025 was $1.4 billion, compared with $1.3 billion for the previous quarter. After adjusting RC profit before interest and tax for a net favourable impact of adjusting items of $0.4 billion, the underlying RC profit before interest and tax for the first quarter was $1.0 billion, compared with $2.0 billion in the fourth quarter 2024. The first quarter underlying result before interest and tax is largely driven by a weak gas marketing and trading result, lower production, including the impact of divestments, and higher costs, mainly non-cash costs and start up costs related to major projects.
• Oil production & operations: The RC profit before interest and tax for the first quarter 2025 was $2.8 billion, compared with $2.6 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $0.1 billion, the underlying RC profit before interest and tax for the first quarter was $2.9 billion, compared with $2.9 billion in the fourth quarter 2024. The first quarter underlying result before interest and tax reflects higher volume and realizations offset by lower income from equity-accounted entities and the absence of the benefit of several non-recurring items in the fourth quarter 2024.
• Customers & products: The RC profit before interest and tax for the first quarter 2025 was $0.1 billion, compared with a loss of $1.9 billion for the previous quarter. After adjusting RC profit before interest and tax for a net adverse impact of adjusting items of $0.6 billion, the underlying RC profit or loss before interest and tax (underlying result) for the first quarter was a profit of $0.7 billion, compared with a loss of $0.3 billion in the fourth quarter 2024. The customers first quarter underlying result was higher by $0.1 billion, reflecting lower costs and stronger midstream performance, partly offset by seasonally lower volumes. The products first quarter underlying result was higher by $0.8 billion, mainly reflecting a lower impact from turnaround activity and stronger realized refining margins. The oil trading contribution was average. 

Operating cash flow $2.8 billion and net debt $27.0 billion

• Operating cash flow of $2.8 billion, which includes a working capital build of $3.4 billion (after adjusting for inventory holding gains, fair value accounting effects and other adjusting items), was around $4.6 billion lower than the previous quarter, reflecting seasonal inventory effects and timing of various payments including annual bonus payments and payments related to low carbon assets held for sale. Net debt was $27.0 billion at the end of the first quarter, primarily driven by lower operating cash flow.

Financial frame

• bp is committed to maintaining a strong balance sheet and maintaining 'A' grade credit range through the cycle. We have a target of $14-18 billion of net debt by the end of 2027(a). 
• bp will maintain a resilient dividend. Subject to board approval, we expect an increase in the dividend per ordinary share of at least 4% per year(c). For the first quarter, bp has announced a dividend per ordinary share of 8 cents.
• Share buybacks are a mechanism to return excess cash. When added to the resilient dividend, we expect total shareholder distributions of 30-40% of operating cash flow, over time. Related to the first quarter results, bp intends to execute a $0.75 billion share buyback prior to reporting the second quarter results. The $1.75 billion share buyback programme announced with the fourth quarter results was completed on 25 April 2025. 
• bp will continue to invest with discipline, driven by value and focused on delivering returns. We expect capital expenditure of around $14.5 billion in 2025 and have a capital frame of around $13-15 billion for 2026 and 2027.  

(a) Potential proceeds from any transactions related to the Castrol strategic review and announcement to bring a strategic partner into Lightsource bp will be allocated to reduce net debt.
(b) RC profit or loss before interest and tax for the fourth quarter 2024 for gas & low carbon energy and customers and products has been restated for material items to reflect the move of our Archaea business from the customers & products segment to the gas & low carbon energy segment.
(c) Subject to board discretion each quarter taking into account factors including current forecasts, the cumulative level of and outlook for cash flow, share count reduction from buybacks and maintaining ‘A’ range credit metrics.

2025 guidance

• bp continues to expect reported upstream production to be lower and underlying upstream production to be slightly lower compared with 2024. Within this, bp expects underlying production from oil production & operations to be broadly flat and production from gas & low carbon energy to be lower.
• In its customers business, bp continues to expect growth in its customers businesses including a full year contribution from bp bioenergy and a higher contribution from TravelCenters of America in part supported by a partial recovery from the US freight recession. Earnings growth is expected to be supported by structural cost reduction. bp continues to expect fuels margins to remain sensitive to the cost of supply and earnings delivery to remain sensitive to the relative strength of the US dollar.
• In products, bp continues to expect broadly flat refining margins relative to 2024 and stronger underlying performance underpinned by the absence of the plant-wide power outage at Whiting refinery, and improvement plans across the portfolio. bp continues to expect similar levels of refinery turnaround activity, with phasing of turnaround activity in 2025 heavily weighted towards the first half, with the highest impact in the second quarter.
• bp continues to expect other businesses & corporate underlying annual charge to be around $1.0 billion for 2025. The charge may vary from quarter to quarter.
• bp continues to expect the depreciation, depletion and amortization to be broadly flat compared with 2024.
• bp continues to expect the underlying ETR* for 2025 to be around 40% but it is sensitive to a range of factors, including the volatility of the price environment and its impact on the geographical mix of the group’s profits and losses.
• bp now expects divestment and other proceeds to be around $3-4 billion in 2025, weighted towards the second half. 
• bp continues to expect Gulf of America settlement payments for the year to be around $1.2 billion pre-tax including $1.1 billion pre-tax paid during the second quarter.

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