BP today announced an interim dividend of 6.610 cents per ordinary share which is expected to be paid on 31 March 2023 to ordinary shareholders and American Depositary Share (ADS) holders on the register on 17 February 2023. The ex-dividend date will be 16 February 2023. The corresponding amount in sterling is due to be announced on 14 March 2023, calculated based on the average of the market exchange rates over three dealing days between 8 March 2023 and 10 March 2023. Holders of ADSs are expected to receive $0.39660 per ADS (less applicable fees). The board has decided not to offer a scrip dividend alternative in respect of the fourth quarter 2022 dividend. Ordinary shareholders and ADS holders (subject to certain exceptions) will be able to participate in a dividend reinvestment programme. Details of the fourth quarter dividend and timetable are available at bp.com/dividends and further details of the dividend reinvestment programmes are available at bp.com/drip.
Other financial highlights include:
• Capital expenditure in the fourth quarter and full year was $7.4 billion and $16.3 billion respectively. Within this, inorganic spend was $3.5 billion in the fourth quarter and full year, including $3.0 billion for Archaea Energy, net of adjustments, and $0.5 billion for the earlier than expected completion of the acquisition of EDF Energy Services.
• During the fourth quarter, bp completed share buybacks of $3.2 billion. The $2.5 billion share buyback programme announced with the third quarter results was completed on 3 February 2023.
• In the fourth quarter, bp generated surplus cash flow of $5.1 billion and intends to execute a $2.75 billion share buyback from surplus cash flow prior to announcing its first-quarter-2023 results. bp has now announced share buybacks from surplus cash flow equivalent to 60% of cumulative surplus cash flow since the start of 2021.
• Net debt fell for the eleventh successive quarter to reach $21.4 billion at the end of the fourth quarter.
Growing distributions; updating disciplined financial frame
• A resilient dividend remains bp's first priority within its disciplined financial frame. It is underpinned by a cash balance point of $40 per barrel Brent, $11 per barrel RMM and $3 per mmBtu Henry Hub (all 2021 real).
• For the fourth quarter, bp has announced a dividend per ordinary share of 6.610 cents an increase of around 10%. This increase is underpinned by strong underlying performance and supported by the confidence they have in delivering higher adjusted EBITDA as a result of updated investment plans.
• bp is committed to maintaining a strong investment grade credit rating, targeting further progress within an 'A' grade credit rating. For 2023 bp intends to allocate 40% of surplus cash flow to further strengthening the balance sheet.
• bp continues to focus on disciplined investment allocation. For 2023 bp expects capital expenditure of $16-18 billion and for 2024-30 now expects capital expenditure in a range of $14-18 billion including inorganic capital expenditure.
• For 2023 and subject to maintaining a strong investment grade credit rating, bp remains committed to using 60% of surplus cash flow for share buybacks.
• Based on bp's current forecasts, at around $60 per barrel Brent and subject to the board's discretion each quarter, bp expects to be able to deliver share buybacks of around $4.0 billion per annum, at the lower end of its capital expenditure range.