![]() The deal is expected to almost double bp's global convenience gross margin*, and bring growth opportunities in four of bp's five transition growth* engines. In convenience and mobility, bp completed the acquisition of TravelCenters of America, adding a network of 288 sites, strategically located on major highways across the US.In addition, bp's Cherry Point refinery in the US successfully commissioned the hydrocracker improvement project and cooling water infrastructure project to improve availability and reduce costs and CO 2 emissions. In resilient hydrocarbons, during the second quarter bp announced the start-up of the bp-operated Mad Dog Phase 2 project and the Reliance operated KG D6-MJ project, together expected to add around 90 thousand barrels of oil equivalent per day of net production by 2025.Strong momentum in transformation to an integrated energy company Based on bp’s current forecasts, at around $60 per barrel Brent and subject to the board’s discretion each quarter, bp expects to be able to deliver share buybacks of around $4.0 billion per annum, at the lower end of its $14-18 billion capital expenditure range, and have capacity for an annual increase in the dividend per ordinary share of around 4%. bp’s guidance for distributions remains unchanged.In setting the dividend per ordinary share and buyback each quarter, the board will continue to take into account factors including the cumulative level of and outlook for surplus cash flow, the cash balance point and the maintenance of a strong investment grade credit rating.bp intends to execute a further $1.5 billion share buyback prior to reporting third quarter results.bp remains committed to using 60% of 2023 surplus cash flow for share buybacks, subject to maintaining a strong investment grade credit rating.For the second quarter, bp has announced a dividend per ordinary share of 7.270 cents, an increase of 10%.A resilient dividend is bp’s first priority within its disciplined financial frame, underpinned by a cash balance point* of around $40 per barrel Brent, $11 per barrel RMM and $3 per mmBtu Henry Hub (all 2021 real).Growing distributions within an unchanged financial frame Net debt* was $23.7 billion at the end of the second quarter.Over the last four quarters bp has completed over $10 billion of buybacks from surplus cash flow* and reduced its issued share capital by over 9%. The $1.75 billion share buyback programme announced with the first quarter results was completed on 28 July 2023.This included $225 million as part of the $675 million programme announced on 7 February 2023 to offset the expected full-year dilution from the vesting of awards under employee share schemes in 2023. During the second quarter, bp completed $2.1 billion of share buybacks.bp continues to expect capital expenditure, including inorganic capital expenditure*, of $16-18 billion in 2023. Capital expenditure* in the second quarter was $4.3 billion including $1.1 billion for the acquisition of TravelCenters of America, net of adjustments.Operating cash flow in the quarter of $6.3 billion includes $1.2 billion of Gulf of Mexico oil spill payments within a working capital* release (after adjusting for inventory holding losses, fair value accounting effects and other adjusting items) of $0.1 billion (see page 30).Adjusting items include impairments of $1.2 billion and favourable fair value accounting effects* of $1.1 billion. ![]() The reported result for the second quarter is adjusted for inventory holding losses* of $0.5 billion (net of tax) and a net adverse impact of adjusting items* of $0.2 billion (net of tax) to derive the underlying replacement cost profit. ![]() Reported profit for the quarter was $1.8 billion, compared with $8.2 billion for the first quarter 2023. ![]() Compared to the first quarter 2023, the result reflects: significantly lower realized refining margins, a significantly higher level of turnaround and maintenance activity and a weak oil trading result lower oil and gas realizations and an exceptional gas marketing and trading result, albeit lower than the first quarter.
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