...August 11, 2023 BP PLC's second-quarter 2023 results were consistent with our rating expectations. In our base case, we assume market conditions remain supportive over the coming quarters, albeit weaker than an exceptional 2022, with BP benefiting in second-half 2023 as major projects start and refining turnarounds are less material. Cash generation from oil and gas activities will anchor BP's credit quality and enable strategic diversification. The group's steady strategic delivery and adherence to the financial framework underpin the ratings and continue to improve headroom for weaker industry conditions. More granular disclosures about the transition growth engines, such as bioenergy and renewables, imply combined EBITDA for these businesses of more than a $1 billion in 2023. However, investment to deliver the planned growth may run at double the annual EBITDA level until 2025 or later. This can be seen in both company and license acquisitions and organic expansion. BP is building financial...
