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 is now
targeting $6.5 to $7.5 billion of structural cost reductions by 2027, reflecting the
expected savings of around $1 billion of underlying operating expenditure associated
with Gelsenkirchen. The 2027 cost reduction target now equates to around 30 percent
of bp’s 2023 cost baseline. This marks the second time bp has increased its target,
having outlined $4 to $5 billion of savings in February 2025, and increased this in
February 2026 to $5.5 to $6.5 billion reflecting the outcome of the strategic review
of Castrol.
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.
