BP 2Q23 Results | Climate Transition Analysis

Quarterly results
Written By Rohan Bowater

There are both risks and opportunities in BP’s latest results.

Despite lower earnings due to lower oil trading and refining margins, BP’s low-carbon businesses experienced strong capacity growth in 2Q23.  

Key findings

  • The company has improved visibility to the performance of its Transition Growth Engines with half yearly capex and EBITDA disclosures (capex was $2.1bn, and EBITDA was $0.7bn for 1H23). 

  • BP’s low-carbon businesses experienced strong capacity growth in 2Q23. Low carbon energy (renewables, power, hydrogen) capex was $190m, up 34% from 2Q22. 

  • Despite lower profits, in 1Q23 BP distributed $3.2bn to shareholders, three times its $1bn investment in Transition Growth Engines (TGE).  

  • The company has made it clear that its commitment to $4bn pa of buybacks depends on being at the lower end of the FY24-30 $14-18bn capex range. There is a risk that lower capex in the next few years will limit low-carbon investment. 

Rohan Bowater
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