Lydia Rainforth's questions to BP PLC (BP) leadership • Q4 2024
Question
Lydia Rainforth of Barclays PLC asked for clarification on the 'strong cost margin ratio' mentioned in disclosures, how it's measured, and how it has changed, particularly for the trading business.
Answer
CFO Katherine Thomson explained that this ratio is central to the trading business, where variable costs like shipping are directly linked to margin delivery. She noted costs have risen due to increased shipping rates and LNG portfolio growth, but emphasized that targeting a reduction in these specific costs would be counterproductive to value creation. CEO Murray Auchincloss added that more detail would come at the Capital Markets Day.