As we reflect on our progress in 2025 and look forward to the future, we are aligned around our conviction in bp’s potential to grow significant long-term shareholder value and we are in action to simplify and strengthen the company.
a. bp’s structural cost reduction target is $4 to $5 billion by 2027, against a 2023 underlying operating expenditure baseline of $22.6 billion. The completed sale of the Gelsenkirchen refinery and the expected completion of the Castrol transaction support a further lowering underlying operating expenditure by around $1 billion and $1.5 billion, respectively.
b. This is on a price adjusted basis that assumes a hypothetical price environment of $70/bbl Brent, $4/mmBtu Henry Hub, and $10.3/bbl refining indicator margin (all 2024 real) and assumptions about the impact of these marker prices on underlying replacement cost profit before tax.
c. Shareholder distribution decisions, including dividends and share buybacks, are subject to board discretion, taking into account factors including, but not limited to, current forecasts and credit metrics.