BP plc · LSE:BP.
BP — Q1 2003 Earnings Presentation
20 slides from BP's earnings presentation, Apr 29, 2003
Slide 1: Presentation to the financial community: 1Q results
presentation to the financial community 1Q results tuesday 29th april 2003
Slide 2: Forward Looking Statements Cautionary Statement
Forward Looking Statements Cautionary Statement This presentation and the associated slides and discussion contain forward looking statements particularly those regarding future performance, costs, returns, dividends, capital expenditure, investments, divestments, gearing, BP’s asset portfolio and c
Slide 3: Agenda
Byron Grote – chief financial officer agenda ! trading environment ! group results ! strategic progress by segment ! financial framework ! q&a
Slide 4: Trading environment
trading environment 4Q02 1Q02 1Q03 average realisations liquids $/bbl 24.78 18.77 29.82 natural gas $/mcf 2.87 2.27 3.87 total hydrocarbons $/boe 21.03 16.21 26.41 indicator margins refining $/bbl 2.76 1.64 4.52 petrochemicals $/te 108 80 90* *provisional
Slide 5: 1Q03 financial results
1Q03 financial results % change result vs 1Q02 proforma $3.7bn 136 replacement cost $3.1bn 239 historical cost $4.3bn 229 net cash from op. activity $6.0bn 64 dividend 6.25¢/share 9 roace (proforma) 20.4%
Slide 6: Return on average capital employed
return on average capital employed % competitor range* 30 25 20 15 10 5 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 00 01 02 03 *BP, XOM, Shell, CVX, TOT roace = (proforma result + after tax finance interest + MSI) / proforma ACE
Slide 7: 1Q 2003 vs 1Q 2002 result
1Q 2003 vs 1Q 2002 result proforma basis inflation & forex pension & benefits $bn post-tax Ruhrgas disposal 4 3 volume growth cost efficiencies interest & tax 2 1 0 1Q 02 oil gas R&M other operations 1Q 03 prices prices margins environment and financing
Slide 8: Special and exceptional items
special and exceptional items $bn pre-tax 2 1 0 (1) (2) (3) (4) 99 00 01 02 1Q03
Slide 9: Strategy
strategy ! choice: create distinctive set of investment opportunities !upstream bias !invest or divest to realise value !choice improves quality ! financial discipline: balance cash in and cash out over time at standardised assumptions ! productivity: strategic focus - ‘right’ level of costs ! gross
Slide 10: Upstream strategic progress
upstream strategic progress ! create !two new discoveries announced in Angola ! build !four project sanctions in 1Q as planned !other build projects on track ! produce !record quarter at 3618 mboed ! portfolio !transactions completed (Trinidad/Tangguh interests, Colombia/JDA swap, GOM package etc) !
Slide 11: GP&R strategic progress
gp&r strategic progress ! maximise value through gas marketing !strong sales & margin growth in North America !commissioned Bilbao power plant !launched second of three new LNG ships ! grow NGL !improved NGL margin despite lower volume ! build renewables !new branded solar offer in California
Slide 12: Refining & marketing strategic progress
refining & marketing strategic progress ! operations !600 sites re-imaged !3 clean fuels projects completed !1% higher refining throughput ! portfolio !Veba mandated divestments completed
Slide 13: Petrochemicals strategic progress
petrochemicals strategic progress ! restructuring !completed Burmah Castrol Chemicals sale !announced intent to sell speciality intermediates ! focus on core products !Zhuhai PTA plant start-up in China !announced build of 700kte European PTA plant !300kte ethylene expansion in USA underway !Shangha
Slide 14: TNK-BP
TNK-BP ! integration programme on track ! senior management team named ! completion expected this summer ! further information at completion
Slide 15: Sources and uses of cash
sources and uses of cash $bn 1Q02 1Q03 9 8 7 disposals 6 dividends 5 acquisitions buybacks 4 3 2 operations operations organic capex 1 3.6 6.0 tax, interest & 0 msi sources uses sources uses
Slide 16: Capital spending & divestments
capital spending & divestments $bn 1Q03 2003 plan organic capex 2.9 14.0 - 14.5 divestments (2.5) (3.0 - 6.0)
Slide 17: Gearing
gearing % 40 35 30 25 20 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 99 00 01 02 03 proforma gearing = net debt/(net debt + equity – acquisition adjustment)
Slide 18: Delivering value
delivering value a balanced framework ! value growth ! dividend policy ! stock buy backs !$2bn announced on Feb 11th !$1bn to date in 2003
Slide 19: Q&A session
q&a session Byron Grote chief financial officer Fergus MacLeod investor relations
Slide 20: Slide 20