BP doubles profits in 2018 driven by strong operating performance

Editors Note: Included below is an edited view of BP's report, referencing upstream related results. For the full report, please visit the company's website.

Photo: BP Chief Executive Bob Dudley.

LONDON -- "We now have a powerful track record of safe and reliable performance, efficient execution and capital discipline. And we’re doing this while growing the business – bringing more high-quality projects online, expanding marketing in the Downstream and doing transformative deals such as BHP. Our strategy is clearly working and will serve the company and our shareholders well through the energy transition." Bob Dudley – group chief executive

More than double full-year earnings, near double returns

• Underlying replacement cost profit for full year 2018 was $12.7 billion, more than double that reported for 2017. The fourth quarter result was $3.5 billion, driven by the strong operating performance across all business segments.
• Return on average capital employed was 11.2% compared to 5.8% in 2017.
• Operating cash flow, excluding Gulf of Mexico oil spill payments, for full year 2018 was $26.1 billion, including a $2.6 billion working capital build (after adjusting for inventory holding losses). This compares with $24.1 billion for 2017, which included a working capital release of $2.6 billion.
• Gulf of Mexico oil spill payments in 2018 totaled $3.2 billion on a post-tax basis.
• Total divestments and other proceeds in 2018 were $3.5 billion. BP intends to complete more than $10 billion divestments over the next two years, which includes plans announced following the BHP transaction.
• Dividend of 10.25 cents a share announced for the fourth quarter, 2.5% higher than a year earlier.

Record Upstream reliability, record refining throughput

• Operational reliability was very strong in 2018 for both main business segments.
• For the year, BP-operated Upstream plant reliability was a record 96%.
• Reported oil and gas production averaged 3.7 million barrels of oil equivalent a day for 2018. Upstream underlying production, which excludes Rosneft, was 8.2% higher than 2017.

Growing the business, advancing the energy transition

• Six Upstream major projects started up in 2018, making a total of 19 brought online since 2016.
• Reserves replacement ratio (RRR) for 2018, including Rosneft, is 100%. Including acquisitions and disposals, RRR is 209%, primarily reflecting the BHP transaction.