BP plc · LSE:BP.
BP — Warburg Conference 2001
16 slides from BP's conference presentation, Sep 11, 2001
Slide 1: Presentation to Warburg Conference
bp presentation to Warburg Conference tuesday 11th september 2001
Slide 2: Safe harbour and pro forma
bp safe harbour and pro forma This presentation and the associated slides and discussion contain statements, particularly those regarding capital employed, capital expenditure, cashflows, costs, savings, debt, demand, disposals, dividends, earnings, efficiency, gearing, growth, margins, performance,
Slide 3: Energy markets: primary energy mix
bp energy markets: primary energy mix 130 120 Gas Oil 110 100 Coal 90 1990 1992 1994 1996 1998 2000 Source: BP Statistical Review Global consumption indexed to 1990
Slide 4: Regional growth in gas demand
regional growth in gas demand mtoe 800 North America 600 400 Europe 200 Asia Pacific 0 1975 1980 1985 1990 1995 Source: BP Statistical Review
Slide 5: Price volatility in our upstream businesses
bp price volatility in our upstream businesses Oil Oilprices prices––Dated DatedBrent Brent1990-2001 1990-2001 $/bbl 40 $/bbl 40 35 35 30 30 25 25 20 20 15 15 10 10 US USGas GasPrice Price––Henry HenryHub Hub1990-2001 1990-2001 5 5 0 Henry Hub 0 10 Henry Hub 10 $/mmbtu 1990 1991 1992 1993 1994 1995
Slide 6: Oil prices & OPEC
bp oil prices & OPEC 30 28 >> Oil Oil prices prices remain remain 26 within within the the $22-$28 $22-$28 24 22 range… range… 20 24 r 8-M r 28 g g 16 n 30 n 13 n 19 n n 17 l ay 31 l l ay 27 b 13 b ar 10 r u -Ju -Ju -Ap -Ap a -Au -Au a -Ja -Ja u -Ju -Fe -Fe 3 -J -M -M 2- J -M 5-J 27 14 22 27 New OPE
Slide 7: Ownership of our industry
bp “ownership”of our industry 100 Chemicals 80 Other Companies percent of total industry 60 Other Companies ExxonMobil ExxonMobil 40 Shell Shell private BP BP FSU FSU state 20 Other Other State State OPEC OPEC 0 oil oil gas gas refining oil chemicals reserves production reserves production product s
Slide 8: The industry in August 2001: emergence of global competitors
bp the industry in august 2001 emergence of global competitors Exxon Mobil 250 Shell Market capitalisation $bn BP 200 150 Total Fina Elf 100 Chevron-Texaco Closure expected 3q01 ENI 50 Others Repsol-YPF 0 0 5 10 15 20 25 Reserves bn boe
Slide 9: BP today
bp BP today market capitalisation $ 188 billion # markets >100 countries employees 107,000 shareholders >1.1 million market strengths - upstream #1 in US and UK gas largest N American reserves - downstream #1 in US retail leading European marketer Castrol global lubes brand - chemicals building lead
Slide 10: Production target
bp production target mboed 5000 7% 4000 5.5% growth projects 3000 row base 2000 north sea base 1000 north america base 0 2000 2001 2002 2003 2004 2005 source: BP data
Slide 11: New projects
bp new projects Northstar Alligin Shearwater Rhum Tambar Skarv Atlantis Clair Princess Crazy Horse Kessog Devenick Na Kika ACG Horn Mtn King’s Peak King In Salah Shah Deniz Mad Dog Trin. Holstein Atlas Methanol Karous/Temsah Europa Ha’py Vietnam Marlin Trinidad T1 In Amenas Diana/Hoover Ursa JDA Cro
Slide 12: Downstream: second pillar of growth
bp downstream: second pillar of growth ! #1 in US retail ! leading European marketer ! building presence in growth markets ! sector leading returns ! portfolio of strong brands ! Castrol leading lubricants company ! International businesses – Air BP/trading ! Veba transaction to strengthen BP in Ger
Slide 13: Maintaining financial strength...
bp maintaining financial strength... net debt 31/12/00 $19.4bn to 30/06/01 $18.8bn gearing 31/12/00 26.9% to 30/06/01 25.4% dividend increased from 5.25 to 5.5 ¢/share - 4.8% increase 1Q01 to 2Q01 - 10% increase 2Q00 to 2Q01 share buybacks 2000 1H01 ordinaries m shares 222 92 $bn 2.0 0.8 Arco prefs
Slide 14: Record results
bp record results ! for the second quarter ! income $3.8 bn ! per ordinary share 16.9 ¢ ! ROACE 22.7% ! for the first half ! income $7.9 bn ! per ordinary share 35.3 ¢ ! ROACE 23.4% ! 2Q dividend up 5.50 ¢/share source: BP data
Slide 15: Chemicals: weak environment, operating problems
bp chemicals: weak environment, operating problems 225 chemical indicator margin 200 175 $/te 150 125 100 bottom of cycle 0 75 Q1 91 Q1 93 Q1 95 Q1 97 Q1 99 Q1 01 source: ChemSystems ! margins at historic lows ! operational problems ! remedial actions - solve operational problems - high grade portfo
Slide 16: In summary
bp in summary " determination to develop leading position for growth " demand growth and OPEC discipline underpin the strength of the sector " positioning to capture the best opportunities – lowest cost resources – high growth markets " differential share of best opportunities to deliver – quality g