• Underlying RC profit $2.6bn; Operating cash flow $6.3bn
• 10% increase in resilient dividend to 7.270 cents per ordinary share; further $1.5bn share buyback announced
• Delivering resilient hydrocarbons - 2Q23 start-up of two major projects; successful commissioning of Cherry Point refinery improvement projects
• Continued progress in transformation to an IEC - acquisition of TravelCenters of America; 4GW entry to German offshore wind; strong

Underlying replacement cost profit $2.6 billion

• Underlying replacement cost profit for the quarter was $2.6 billion, compared with $5.0 billion for the previous quarter. 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.
• Reported profit for the quarter was $1.8 billion, compared with $8.2 billion for the first quarter 2023. 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. Adjusting items include impairments of $1.2 billion and favourable fair value accounting effects of $1.1 billion.

Operating cash flow $6.3 billion

• 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.
• Capital expenditure in the second quarter was $4.3 billion including $1.1 billion for the acquisition of TravelCenters of America, net of adjustments. bp continues to expect capital expenditure, including inorganic capital expenditure, of $16-18 billion in 2023.
• During the second quarter, bp completed $2.1 billion of share buybacks. 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.
• The $1.75 billion share buyback programme announced with the first quarter results was completed on 28 July 2023. 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%.
• Net debt was $23.7 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, 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).
• For the second quarter, bp has announced a dividend per ordinary share of 7.270 cents, an increase of 10%.
• bp remains committed to using 60% of 2023 surplus cash flow for share buybacks, subject to maintaining a strong investment grade credit rating.
• bp intends to execute a further $1.5 billion share buyback prior to reporting third quarter results.
• 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’s guidance for distributions remains unchanged. 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%.

Strong momentum in transformation to an integrated energy company

• 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. 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 CO2 emissions.
• 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. 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 July, bp and Lekkerland extended their convenience partnership to deliver REWE To Go stores at Aral retail sites until 2028. And during the first half 2023 bp grew energy sold from EV charging by around 170% compared to the first half 2022.
• In low carbon energy, bp was awarded the rights to develop two offshore wind projects, with total potential generating capacity of 4GW, in the German tender round, marking its entry into offshore wind in continental Europe. In addition, bp has made significant progress growing its pipeline of hydrogen projects to reach 2.8mtpa at the end of the second quarter.

Bernard Looney, chief executive officer, commented:
“Another quarter of performing while transforming. Our underlying performance was resilient with good cash delivery - during a period of significant turnaround activity and weaker margins in our refining business. We’re delivering our strategy at pace - we’ve started up two major oil and gas projects to help keep energy flowing today and we’re accelerating our transformation through our five transition growth engines. And we’re delivering for shareholders growing our dividend and announcing a further share buyback. This reflects confidence in our performance and the outlook for cash flow, as well as continued progress reducing our share count.”

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