BP plc · LSE:BP.
BP — Shareholder Meeting (April 2010)
57 slides from BP's shareholder meeting presentation, Apr 15, 2010
Slide 1: Annual General Meeting
Annual General Meeting Thursday 15 April 2010
Slide 2: Carl-Henric Svanberg, Chairman
Carl-Henric Svanberg Chairman
Slide 3: The Resolutions
The Resolutions 1 Annual Report and Accounts 2 Directors’ Remuneration Report 3-16 Election and re-election of Directors 17 Reappointment of Auditors 18 Adoption of new Articles of Association 19 Share buyback 3
Slide 4: The Resolutions
The Resolutions 20 Allotment of shares 21 Allotment of shares free of pre-emption rights 22 Notice of General Meetings (excluding Annual General Meetings) Renewal of the Executive Directors Incentive 23 Plan 24 Scrip dividend programme 25 Shareholder resolution instructing a Committee of the Board t
Slide 5: Resolution 1 Annual Report and Accounts
Resolution 1 Annual Report and Accounts 5
Slide 6: Tony Hayward, Group Chief Executive
Tony Hayward Group Chief Executive
Slide 7: Long-term energy outlook
Long-term energy outlook Energy consumption to 2030 400 Demand 300 Mboed • Growth resumes post Non-OECD 200 recession • Driven by non-OECD 100 OECD • Evolution to lower-carbon 0 economy 2000 2010 2020 2030 400 Renewables Supply 300 Hydro • Diverse energy mix required Mboed Nuclear 200 Coal • Leverag
Slide 8: BP's approach to a lower-carbon future
BP’s approach to a lower-carbon future • Energy efficiency within BP operations • Including the price of carbon in investment decisions • Promoting lowest-cost energy pathways e.g. gas for power generation • Continued investment in Alternative Energy − biofuels − wind − solar − carbon capture and se
Slide 9: Forward Agenda
Forward Agenda Safe and reliable operations • Continue journey in personal safety • Implement Operating Management System • Compliance People • Building capability • Leadership and behaviours Performance • Restore revenues • Reduce complexity and cost 9
Slide 10: Safe, reliable and efficient operations
Safe, reliable and efficient operations Recordable Injury Frequency Integrity Management Major Incidents(1) 1.5 35 30 Industry 1.0 range 25 - six majors 20 15 0.5 10 5 0.0 0 2000200120022003200420052006200720082009 2004 2005 2006 2007 2008 2009 Loss of Primary Containment Incidents 200 150 100 50 0
Slide 11: People and organization
People and organization • Leadership and culture • Restructuring and delayering • Skills and capability • Diversity and inclusion • Reward for performance Changing the culture 1
Slide 12: Restoring revenues
Restoring revenues Production Rolling 4-quarters to Refining availability(1) 4Q09 4500 100% BP 95% 4000 ExxonMobil 90% 3500 mboed 85% Shell 3000 80% Chevron 2500 75% Total 2000 70% 2004 2005 2006 2007 2008 2009 1Q00 1Q01 1Q02 1Q03 1Q04 1Q05 1Q06 1Q07 1Q08 1Q09 Note: Chevron includes Texaco, prior to
Slide 13: Controlling cash costs
Controlling cash costs Cash costs - indexed (Total BP Group) 150 140 130 120 110 100 90 80 2004 2005 2006 2007 2008 2009 A definition of cash costs can be found on our website at www.bp.com 1
Slide 14: 2009 momentum versus peers
2009 momentum versus peers Underlying Net Income $bn(1) 14.6 19.2 11.6 9.5 10.9 Year on Year % -44% -56% -59% -58% -47% Cash from Operations $bn 27.7 28.4 21.0 19.4 17.2 Year on Year % -27% -52% -52% -35% -37% Reported Volumes mboed 3998 3932 3152 2704 2281 Year on Year % 4% 0% -3% 7% -3% Market Cap
Slide 15: BP vs peers – since January 2009
BP vs peers – since January 2009 140 130 BP 120 RDSB 110 Chevron Conoco Phillips 100 Total 90 Exxon Mobil 80 70 60 J F M A M J J A S O N D J F M A Source: Datastream, 14 April 2010 1
Slide 16: Strategic progress in 2009
Strategic progress in 2009 E&P • New access: Iraq, Indonesia, Jordan, new acreage in US Gulf of Mexico and Egypt • Exploration and appraisal success: Tiber, Mad Dog South, Angola Block 31 • Major projects: 7 start-ups and 2 sanctioned developments • Resource replacement: over 250% • Reserves replace
Slide 17: 2009 exploration and access
2009 exploration and access CANADA EGYPT Ellice J-27 Nile Delta BP (25%) 2,900km2 net in two blocks JORDAN Risha 7,000km2 US SHALE GAS block Eagle Ford IRAQ New ~5tcf position Rumaila Redevelopment of supergiant PAKISTAN Onshore US GULF OF MEXICO 5,000km2 in two blocks Tiber BP (62%) and operator Gi
Slide 18: Growth to 2015
Growth to 2015 mboed 5,000 TNK-BP Angola 4,000 Gulf of Mexico Asia Pacific 3,000 South America 2,000 N. Africa, Middle East and Caspian Trinidad & Tobago 1,000 North Sea 0 North America Onshore 2008 2009 2010 2011 2012 2013 2014 2015 2010-2015 BP projections at $60/bbl 1
Slide 19: Project start-ups 2010–2015
Project start-ups 2010–2015 North Sea Skarv * Russia (TNK-BP) Valhall Russkoye Alaska Redevelopment * Suzun Liberty * Canada Devenick * Verkhnechonskoye FFD Canada Noel * Kinnoull * Sunrise Clair Ridge * Azerbaijan WoS Q204 * Chirag Oil * Gulf of Mexico Great White Galapagos * Egypt Na Kika Phase 3
Slide 20: Portfolio quality
Portfolio quality Efficient and successful Robust medium-term explorer Strong reserve growth (excluding oil sands, using year-end pricing) replacement track record (1) 5-Year Average Organic RRR ’04-’08 5 Majors' relative performance 2004 - 120% 2008 Discovered resource bnboe 5,000 100% 4 BP TNK-BP
Slide 21: The opportunity
The opportunity Earnings vs Peers ROACE vs Peers Refining efficiency Underlying net income gap $bn Underlying ROACE Refining performance 5 100 40% 2012 95 2004 Solomon Availability % 0 35% 2009 90 30% Other (5) Supermajors 85 25% 80 (10) 20% BP 75 2007 (15) 15% BP gap to Shell 70 140 130 120 110 100
Slide 22: Realising the opportunity
Realising the opportunity • Capital efficiency • Cost efficiency • Technology • Culture 2
Slide 23: Strategy
Strategy • Upstream profit growth, cost and capital efficiency • Downstream turnaround, cost efficiency • Alternative Energy focused and disciplined • Corporate efficiency 2
Slide 24: Carl-Henric Svanberg, Chairman
Carl-Henric Svanberg Chairman
Slide 25: Resolution 1 Annual Report and Accounts
Resolution 1 Annual Report and Accounts 2
Slide 26: 2009 Annual Report and Accounts
Resolution 1 2009 Annual Report and Accounts Voted For 11,079,621,694 Voted Against 21,499,097 Vote Withheld 66,436,113 Results to date: For 99.8% Against 0.2% 2
Slide 27: Resolution 2 Directors' Remuneration Report
Resolution 2 Directors’ Remuneration Report 2
Slide 28: Directors' Remuneration Report
Resolution 2 Directors’ Remuneration Report Voted For 9,398,720,859 Voted Against 931,578,571 Vote Withheld 837,212,009 Results to date: For 91.0% Against 9.0% 2
Slide 29: Election or re-election of Directors
Resolutions 3-15 Election or re-election of Directors Mr P Anderson Mr R Dudley Mr A Burgmans Mr D J Flint Mrs C B Carroll Dr B E Grote Sir William Castell Dr A B Hayward Mr I C Conn Mr A G Inglis Mr G David Dr D S Julius Mr I E L Davis 2
Slide 30: Election or re-election of Directors
Resolutions 3-15 Election or re-election of Directors Vote for Vote against Vote withheld Mr P Anderson 10,977,409,512 151,066,543 38,993,692 Result to date: For 98.6% Against 1.4% Mr A Burgmans 10,965,134,434 164,050,721 38,302,403 Result to date: For 98.5% Against 1.5% Mrs C B Carroll 11,027,057,4
Slide 31: Election or re-election of Directors
Resolutions 3-15 Election or re-election of Directors Vote for Vote against Vote withheld Mr I C Conn 10,938,403,093 191,087,047 38,041,584 Result to date: For 98.3% Against 1.7% Mr G David 10,733,392,610 395,475,212 38,614,107 Result to date: For 96.4% Against 3.6% Mr I E L Davis 10,975,611,000 152
Slide 32: Election or re-election of Directors
Resolutions 3-15 Election or re-election of Directors Vote for Vote against Vote withheld Mr R Dudley 10,940,166,275 188,849,910 38,478,595 Result to date: For 98.3% Against 1.7% Mr D J Flint 10,899,035,276 102,425,031 166,033,213 Result to date: For 99.1% Against 0.9% Dr B E Grote 10,939,048,013 19
Slide 33: Election or re-election of Directors
Resolutions 3-15 Election or re-election of Directors Vote for Vote against Vote withheld Dr A B Hayward 11,024,928,701 104,948,195 37,664,239 Result to date: For 99.1% Against 0.9% Mr A G Inglis 10,939,126,761 190,109,903 38,288,567 Result to date: For 98.3% Against 1.7% Dr D S Julius 10,809,445,15
Slide 34: Election of Mr C-H Svanberg
Resolution16 Election of Mr C-H Svanberg 3
Slide 35: Election of Mr C-H Svanberg
Resolution 16 Election of Mr C-H Svanberg Voted For 10,930,203,696 Voted Against 198,508,861 Vote Withheld 38,772,903 Results to date: For 98.2% Against 1.8% 3
Slide 36: Reappointment of Auditors
Resolution17 Reappointment of Auditors 3
Slide 37: Reappointment of Auditors
Resolution 17 Reappointment of Auditors Voted For 11,033,820,135 Voted Against 82,465,621 Vote Withheld 51,260,548 Results to date: For 99.3% Against 0.7% 3
Slide 38: Special Resolution: Adoption of New Articles
Resolution18 Special Resolution: Adoption of New Articles 3
Slide 39: Adoption of New Articles
Resolution 18 Adoption of New Articles Voted For 10,875,402,957 Voted Against 100,262,826 Vote Withheld 191,793,500 Results to date: For 99.1% Against 0.9% 3
Slide 40: Special Resolution: Authority to repurchase shares
Resolution19 Special Resolution: Authority to repurchase shares 4
Slide 41: Authority to repurchase shares
Resolution 19 Authority to repurchase shares Voted For 11,049,776,527 Voted Against 54,030,655 Vote Withheld 63,742,541 Results to date: For 99.5% Against 0.5% 4
Slide 42: Authority to allot shares up to a specified amount
Resolution 20 and 21 Authority to allot shares up to a specified amount Special Resolution: authority to allot shares free of pre-emption rights 4
Slide 43: Authority to allot shares up to a specified amount
Resolution 20 Authority to allot shares up to a specified amount Voted For 10,515,692,761 Voted Against 598,522,964 Vote Withheld 53,292,408 Results to date: For 94.6% Against 5.4% 4
Slide 44: Authority to allot shares free of pre-emption rights
Resolution 21 Authority to allot shares free of pre-emption rights Voted For 10,936,954,354 Voted Against 172,496,006 Vote Withheld 58,061,690 Results to date: For 98.4% Against 1.6% 4
Slide 45: Notice of General Meetings (excluding AGMs)
Resolution 22 Special Resolution: Notice of General Meetings (excluding AGMs) 4
Slide 46: Notice of General Meetings (excluding AGMs)
Resolution 22 Notice of General Meetings (excluding AGMs) Voted For 10,531,741,736 Voted Against 591,822,173 Vote Withheld 44,000,807 Results to date: For 94.7% Against 5.3% 4
Slide 47: Renewal of the Executive Directors' Incentive Plan
Resolution 23 Renewal of the Executive Directors’ Incentive Plan 4
Slide 48: Renewal of the Executive Directors' Incentive Plan
Resolution 23 Renewal of the Executive Directors’ Incentive Plan Voted For 10,259,000,528 Voted Against 766,588,209 Vote Withheld 141,936,021 Results to date: For 93.0% Against 7.0% 4
Slide 49: The Scrip Dividend Programme
Resolution 24 The Scrip Dividend Programme 4
Slide 50: The Scrip Dividend Programme
Resolution 24 The Scrip Dividend Programme Voted For 11,002,697,317 Voted Against 98,523,003 Vote Withheld 67,968,327 Results to date: For 99.1% Against 0.9% 5
Slide 51: Shareholder Resolution: Sunrise SAGD Project review
Resolution 25 Shareholder Resolution Special Resolution: Instructing a Committee of the Board to review the assumptions behind the Sunrise SAGD Project 5
Slide 52: A typical SAGD Well Pad
A typical Steam Assisted Gravity Drainage (SAGD) Well Pad 5
Slide 53: SAGD Schematic
SAGD Schematic 5
Slide 54: Instructing a Committee to review Sunrise SAGD Project
Resolution 25 Instructing a Committee of the Board to review the assumptions behind the Sunrise SAGD Project Voted For 622,272,418 Voted Against 9,497,638,714 Vote Withheld 1,020,301,075 Results to date: For 6.1% Against 93.9% 5
Slide 55: Your signature Your name and address
Your signature Your name and address 5
Slide 56: Please complete your poll cards
Please complete your poll cards and place them in the boxes provided 5
Slide 57: The BP p.l.c. AGM 2010 is now concluded
The BP p.l.c. AGM 2010 is now concluded Thank you for your attendance 5