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.