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 2.8 mtpa at the end of the second quarter.
“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,” – Bernard Looney, chief executive officer, said.
Reported profit for the quarter was $1.8 billion, compared with $8.2 billion for the first quarter 2023. 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.