Bp Plc · LSE:BP.
Bp — Q1 2023 Earnings Presentation
24 slides from Bp's earnings presentation, May 2, 2023
Slide 1: 1Q 2023 financial results
Secret. Draft subject to Board approval. 1Q 2023 1Q 2023 financial results financial results 1Q 2023 financial results
Slide 2: Welcome and introduction
SVP investor relations Good morning everyone and welcome to bp’s first quarter 2023 results presentation. I’m here today with Murray Auchincloss, chief financial officer. Before we begin today, let me draw your attention to our cautionary statement. 2
Slide 3: Cautionary statement
Cautionary statement In order to utilize the ‘safe harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995 (the ‘PSLRA’) and the general doctrine of cautionary statements, bp is providing the following cautionary statement: The discussion in this results announcement
Slide 4: Chief financial officer introduction
Chief financial officer Thanks Craig. Hello everyone and thanks for joining us. 4
Slide 5: Highlights
Highlights Resilient operational and financial performance ▪ $5.0bn underlying earnings ▪ Net debt* reduced to $21.2bn Executing against our disciplined financial frame ▪ Further $1.75bn share buyback announced Delivering our strategy at pace ▪ Advancing two major projects* ▪ Strengthening oil and g
Slide 6: Announcing our intention to form a JV with ADNOC
– Announcing our intention to form a JV with ADNOC focused on gas development in international areas of mutual interest, including the East Mediterranean. bp expects to contribute assets to form the JV and has made a non-binding offer with ADNOC to acquire 50% of NewMed Energy; – Advancing our Kaski
Slide 7: Underlying results
Underlying results $bn 1Q22 4Q22 1Q23 1Q 2023 vs 4Q 2022 Brent ($/bbl) 102.2 88.9 81.2 Henry Hub ($/mmBtu) 5.0 6.3 3.4 ▪ Exceptional gas marketing and NBP (p/therm) 232.8 166.5 130.8 trading result RMM ($/bbl) 18.9 32.2 28.1 Underlying RCPBIT* 10.2 9.3 9.2 ▪ Lower level of refinery turnaround Gas &
Slide 8: Cash flow and balance sheet
Cash flow and balance sheet 1Q23 surplus cash flow* $bn 10 $bn 1Q22 4Q22 1Q23 8 Disposal proceeds* IFRS operating cash flow* 8.2 13.6 7.6 Surplus cash flow Working capital (build)/release *1 (3.6) 4.2 (1.4) 6 * Cash dividends Capital expenditure (2.9) (7.4) (3.6) Operating Lease payments* Divestment
Slide 9: 2023 financial frame
2023 financial frame Resilient Strong investment Disciplined Share dividend grade credit rating investment allocation buybacks per ordinary share 2023 surplus cash flow* 2023 capital expenditure* 2023 surplus cash flow1,2 for 1Q23 Resilient $40/bbl Target further progress 2024-2030: $14-18bn Commitm
Slide 10: Strong momentum in 2023
Strong momentum in 2023 bpx capacity TravelCenters Doubling operated Permian of America1 processing capacity with expected Aim for 2Q23 completion; adding completion of second central ~280 sites; target ~$800m processing facility in 3Q23 EBITDA* in 2025 Major projects* LNG supply ~200mboed from high
Slide 11: Second, we are transforming - executing our strategy with discipline
Second, we are transforming - executing our strategy with discipline. – We expect the acquisition of TravelCenters of America to close in the second quarter and target around $800 million of EBITDA in 2025. – In EV charging, we expect around a two-fold increase in energy sold in 2023 compared to 202
Slide 12: Q&A
Q&A 1Q 2023 financial results 10
Slide 13: Appendix
Appendix 1Q 2023 financial results 11
Slide 14: Guidance
Guidance Full year 2023 2Q23 vs 1Q23 Capital expenditure* $16-18bn bp expects 2Q23 reported upstream production to be lower compared to 1Q23, in both oil production & operations and gas & low carbon energy, including the DD&A Slightly above 2022 effects of seasonal maintenance, with the impact pre
Slide 15: Strategic progress – last months
Strategic progress – last 12 months Denotes transition growth engine Resilient hydrocarbons Convenience and mobility Low carbon energy Acquisition of Archaea Energy bp pulse & Uber Global agreement Renewables pipeline* growth Accelerating growth and realising distinctive value in biogas Building on
Slide 16: Momentum in our strategic delivery
Momentum in our strategic delivery 2019 2022 2025 target 2030 aim Resilient Oil and gas production ~200mboed major Deep resource base hydrocarbons (mmboed) 2.6 2.3 project* production ~2.3 provides optionality ~2.0 ~3.8 incl. Russia production Biofuels production (mbd) 23 27 Scale co-processing ~50
Slide 17: Gas and low carbon energy
Gas and low carbon energy 1Q22 4Q22 1Q23 Underlying RCPBIT* $bn Production volume 7.0 6.2 Liquids (mbd) 121 121 114 6.0 Natural gas (mmcfd) 4,897 4,844 4,962 5.0 Total hydrocarbons (mboed) 966 956 969 4.0 3.6 3.5 3.1 3.1 Average realisations* 3.0 Liquids ($/bbl) 86.09 80.50 73.59 2.0 Natural gas ($/
Slide 18: Oil production and operations
Oil production and operations 1Q22 4Q22 1Q23 Underlying RCPBIT* $bn Production volume 7.0 5.9 Liquids (mbd) 948 966 1,005 6.0 5.2 Natural gas (mmcfd) 1,964 1,989 2,060 5.0 4.7 4.4 Total hydrocarbons (mboed) 1,286 1,309 1,360 4.0 3.3 Average realisations* 3.0 Liquids ($/bbl) 83.47 80.43 71.63 2.0 Nat
Slide 19: Customers and products
Customers and products 1Q22 4Q22 1Q23 Underlying RCPBIT* $bn Customers – convenience & mobility Customers - convenience & mobility Products - refining & trading Total Customers – convenience & mobility 0.8 1.0 0.7 adjusted EBITDA* 5.0 4.0 Castrol1 adjusted EBITDA* 0.3 0.1 0.2 4.0 Capital expenditure
Slide 20: Glossary - abbreviations
Glossary - abbreviations Barrel (bbl) 159 litres, 42 US gallons. MW Megawatts CCS Carbon, capture and storage. RC Replacement cost. DD&A Depreciation, depletion and amortisation. SAF Sustainable aviation fuel. EV Electric vehicle. SVP Senior vice president. FEED Front end engineering and design FID
Slide 21: Glossary
Glossary Adjusting items Include gains and losses on the sale of businesses and fixed assets, Disposal Divestments and other proceeds. impairments, environmental and other provisions, restructuring, integration proceeds and rationalisation costs, fair value accounting effects, financial impacts rela
Slide 22: Glossary
Glossary Operating cash Net cash provided by (used in) operating activities as stated in the condensed Retail sites Include sites operated by dealers, jobbers, franchisees or brand licensees or flow group cash flow statement. joint venture (JV) partners, under the bp brand. These may move to and fro
Slide 23: Glossary
Glossary Underlying Calculated by dividing taxation on an underlying replacement cost (RC) basis Working capital Movements in inventories and other current and non-current assets and effective by underlying RC profit or loss before tax. Taxation on an underlying RC basis liabilities as reported in t
Slide 24: Resources
Resources bp's website includes information Useful links Investor events about our financial performance, reports and information on investing Why invest in bp 1 August 2023 Second quarter results in bp, dividend payments, AGM and strategy events. Modelling guidance 10-11 October 2023 Oil & gas capi