BP has announced its financial results for the fourth quarter and full year of 2024, revealing a challenging period for the energy giant.
The company reported a loss attributable to BP shareholders of $(1,959) million for the fourth quarter, a stark contrast to the $371 million profit recorded in the same period of 2023.
While the full year 2024 shows a profit of $381 million, this represents a substantial decline from the $15,239 million profit achieved in 2023.
Underlying replacement cost (RC) profit, a key metric for BP, also experienced a significant drop, falling to $1,169 million in the fourth quarter of 2024 from $2,991 million in the corresponding period of the previous year.
The full year underlying RC profit decreased from $13,836 million in 2023 to $8,915 million in 2024. Operating cash flow also reflected this downturn, decreasing to $7,427 million in the fourth quarter of 2024 compared to $9,377 million in the fourth quarter of 2023.
Despite the reported losses, BP has announced a dividend of 8.000 cents per ordinary share for the fourth quarter, an increase compared to the 7.270 cents per share distributed in Q4 2023.
In their official statement, BP included a “cautionary statement” highlighting the uncertainties inherent in forward-looking projections.
The company noted that such statements “involve risk and uncertainty because they relate to events and depend on circumstances that will or may occur in the future and are outside the control of bp.”
Murray Auchincloss, Chief executive officer, said in an official statement: “In 2024 we laid the foundations for growth. We have been reshaping our portfolio – sanctioning new major projects, and focusing our low-carbon investment – and we have made strong progress in reducing costs.
“Building on the actions taken in the last 12 months, we now plan to fundamentally reset our strategy and drive further improvements in performance, all in service of growing cash flow and returns.
“It will be a new direction for bp and we look forward to sharing it at our Capital Markets Update on 26 February.”
With a challenging year behind it, BP aims to rebuild investor confidence by unveiling a new strategic direction at its Capital Markets Update on February 26.
