BP's gas and low carbon energy business experienced a decline in profits for the fourth quarter and full year of 2023, according to recent financial disclosures.
The business, encompassing renewables among other sectors, revealed a replacement cost (RC) profit of $2.16 billion in Q4 2023, down from $2.28 billion in the same period of 2022. Similarly, the full-year RC profit for 2023 amounted to $14 billion, compared to $14.7 billion in FY 2022.
Underlying RC profit before interest and tax for the fourth quarter and full year was reported at $1.78 billion and $8.7 billion, respectively. This marked a notable decrease from $3.1 billion and $16 billion reported for the corresponding periods in 2022.
By the end of 2023, BP's installed renewables capacity reached 2.7 gigawatts (GW), a rise from 2.2 GW at the close of 2022.
The company's renewables pipeline, measured at the end of the quarter, totaled 58.3 GW (BP net), inclusive of a 19.3 GW BP net share of Lightsource BP's pipeline. Notably, the renewables pipeline witnessed a net increase of 21.1 GW throughout the full year, attributed to various factors such as BP securing rights for two North Sea offshore wind projects in Germany (4 GW), expansions to Lightsource BP's pipeline (5.3 GW), and advancements in dedicated hydrogen renewables (12.4 GW). Furthermore, there are over 12 GW (BP net) of early-stage opportunities in Lightsource BP's development pipeline.
In terms of developed renewables projects, BP had 9.3 GW of offshore wind by the end of 2023, up from 5.2 GW at the close of 2022. Similarly, the company reported 12.7 GW of onshore wind and 36 GW of solar capacity by the end of 2023, compared to 6.3 GW and 28 GW, respectively, at the end of 2022.
