• Net debt reduced to $22.8 billion; further share buyback announced
• 10% increase in resilient dividend per ordinary share; unchanged financial frame;
• Delivering resilient hydrocarbons - Brazil and Indonesia renewal options; high-grading Canadian portfolio
• Continued progress in transformation to an IEC - momentum in EV charging and hydrogen

Underlying replacement cost profit $8.5 billion

• Underlying replacement cost profit was $8.5 billion, compared with $6.2 billion for the previous quarter. This was driven by strong realized refining margins, continuing exceptional oil trading performance and higher liquids realizations. This was partly offset by an average gas marketing and trading contribution, down from the exceptional result in the first quarter, including an impact from the ongoing outage at Freeport LNG.
• Reported profit for the quarter was $9.3 billion, compared with a loss of $20.4 billion for the first quarter 2022. The reported result for the second quarter includes a charge for adjusting items before tax of $0.3 billion within which are adverse fair value accounting effects of $0.8 billion. The first quarter loss included a post-tax charge of $24.4 billion relating to bp's decision to exit its 19.75% shareholding in Rosneft and its other businesses with Rosneft in Russia.

Operating cash flow $10.9 billion; net debt reduced to $22.8 billion

• Operating cash flow in the quarter of $10.9 billion includes $1.2 billion of Gulf of Mexico oil spill payments within a working capital build of $2.9 billion (after adjusting for inventory holding gains and fair value accounting effects).
• During the second quarter bp executed share buybacks of $2.3 billion. The $2.5-billion programme announced with the first-quarter 2022 results was completed on 22 July.
• Net debt fell for the ninth successive quarter to reach $22.8 billion at the end of the second quarter.

Growing distributions within an unchanged financial frame

• A resilient dividend is bp’s first priority within its disciplined financial frame.
• It is underpinned by an average 2021-5 cash balance point of around $40 per barrel Brent, $11 per barrel RMM and $3 per mmBtu Henry Hub (all 2020 real).
• bp has announced a 10% increase in its quarterly dividend to 6.006 cents per ordinary share.
• This increase reflects the underlying performance and cash generation of the business, which has enabled strong progress in delivering share buybacks and net debt reduction.
• Looking ahead, on average, based on bp's current forecasts, bp continues to expect to have capacity for an annual increase in the dividend per ordinary share of around 4% through 2025 at around $60 per barrel Brent and subject to the board’s discretion each quarter.
• During the second quarter bp generated surplus cash flow of $6.6 billion and intends to execute a $3.5 billion share buyback prior to announcing its third-quarter results. bp has now announced share buybacks from 2021 and first-half 2022 surplus cash flow equivalent to 60% of the cumulative surplus cash flow.
• For 2022 and subject to maintaining a strong investment grade credit rating, bp remains committed to using 60% of surplus cash flow for share buybacks and intends to allocate the remaining 40% to further strengthen the balance sheet.

Progressing transformation to an Integrated Energy Company

• In resilient hydrocarbons bp has strengthened its renewal options partnering with Petrobras in a successful Drill Stem Test at the Cabo Frio discovery in the Campos Basin offshore Brazil and participating in the Timpan-1 discovery offshore Indonesia. bp continues to high-grade its portfolio, agreeing to acquire a 35% interest in the undeveloped Bay du Nord discovery offshore Canada as part of the transaction to sell its 50% interest in the Sunrise oil sands project.
• In convenience and mobility bp has continued to progress its EV charging strategy, recently announcing expansion plans with Iberdrola in Spain and Portugal and signing a contract to operate China's largest fast(a) EV charging hub.
• In low carbon energy bp has announced plans to take a 40.5% stake in the AREH project to lead and operate one of the world’s largest planned renewables and green hydrogen energy hubs based in Western Australia; has announced its intent to partner with Iberdrola to develop large-scale integrated green hydrogen production in Spain, Portugal and the UK; and has continued to progress its renewables strategy, submitting bids for two offshore wind leases in the Netherlands.

Bernard Looney,chief executive officer, commented:
"Today’s results show that bp continues to perform while transforming. Our people have continued to work hard throughout the quarter helping to solve the energy trilemma – secure, affordable and lower carbon energy. We do this by providing the oil and gas the world needs today – while at the same time, investing to accelerate the energy transition."

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