BP plc · LSE:BP.
BP — Q1 2006 Earnings Presentation
14 slides from BP's earnings presentation, Apr 25, 2006
Slide 1: 1Q 2006 Results
1Q 2006 Results 25th April 2006 Byron Grote Chief Financial Officer
Slide 2: Cautionary statement
Cautionary statement Forward-looking Statements Cautionary Statement This presentation and the associated slides and discussion contain forward looking statements, particularly those regarding the expected pick-up of production growth in 2006 as a result of the expected restoration of hurricane loss
Slide 3: Trading environment
Trading environment $/bbl Oil realization $/mcf Gas realization 60 10 50 8 40 6 30 4 20 10 2 0 0 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2005 2006 2005 2006 $/bbl Refining indicator margin 1Q06 change 14 vs. 1Q05 12 10 Average realisations 8 Crude oil $/bbl 34% 6 Natural gas $/mcf 30% 4 Total hydrocarbon $/bo
Slide 4: Financial results
Financial results Change vs. 2005 Results for the first quarter $bn % % per share • Replacement cost profit 5.3 (4) -- • Profit including inventory gains/losses 5.6 (15) (11) • Net cash provided by operating activities 8.9 (5) (1) ¢/share • Dividend to be paid next quarter 9.375 +10
Slide 5: Exploration & Production
Exploration & Production $bn pre-tax • Higher oil and gas prices 8 7 • Weather related volume 6 impacts 5 4 • $800m TNK-BP dividend 3 2 1 0 1Q 05 NOI Underlying 1Q 06 5,704 Underlying result $m 7,209 780 Non-operating items $m (386) 6,484 Total result $m 6,823
Slide 6: Refining & Marketing
Refining & Marketing $bn pre-tax • Slightly lower overall 2.5 margin structure 2.0 • Absence of Texas City: 1.5 $650m impact 1.0 • Strong supply optimisation performance 0.5 0 1Q 05 NOI Underlying 1Q 06 1,438 Underlying result $m 1,048 (27) Non-operating items $m 564 1,411 Total result $m 1,612
Slide 7: Gas, Power & Renewables
Gas, Power & Renewables $bn pre-tax • Stronger marketing and 0.5 trading margins 0.4 • Adverse IFRS fair value 0.3 accounting effects 0.2 0.1 0 1Q 05 NOI Underlying 1Q 06 307 Underlying result $m 356 105 Non-operating items $m (55) 412 Total result $m 301
Slide 8: Strategic progress
Strategic progress • Cannonball gas field start up • First cargo from Atlantic LNG Train 4 • New licences in deepwater Gulf of Mexico and Pakistan • Disposal of non-core North Sea and Gulf of Mexico Shelf interests • European efficiency programmes on track • Second hydrogen-fueled power plant announ
Slide 9: Other business & corporate
Other business & corporate $bn pre-tax • Underlying result 0 consistent with expected annual charge of $900m±$200m (0.1) (0.2) (0.3) 1Q 05 NOI Underlying 1Q 06 (124) Underlying result $m (226) (47) Non-operating items $m 9 (171) Total result $m (217)
Slide 10: Effective tax rate
Effective tax rate • 1Q’06 Effective tax rate 35% • UK North Sea tax changes to be included in the quarter enacted: − $600m deferred tax charge − Current tax impact retroactive to 1Q • Full year effective tax rate 39%
Slide 11: Sources and uses of cash
Sources and uses of cash $bn post tax 1Q 05 1Q 06 12 10 Disposals Disposals 8 Operations Operations Buybacks 6 9.4 Buybacks 8.9 Dividends 4 Dividends 2 Organic Organic capex capex 0 Sources Uses Sources Uses
Slide 12: Net debt ratio
Net debt ratio % 40 35 30 25 20 15 10 1Q 2Q 3Q 4Q 1Q 2005 2006 Net debt ratio = net debt / (net debt + equity)
Slide 13: Shareholder distributions
Shareholder distributions $bn $bn Full year First quarter 28 7.0 26 6.5 24 6.0 22 5.5 20 5.0 18 4.5 16 4.0 14 3.5 12 3.0 10 2.5 8 2.0 6 1.5 4 1.0 2 0.5 0 0.0 (2) (0.5) 2002 2003 2004 2005 1Q 06
Slide 14: Q&A
Q&A Byron Grote Chief Financial Officer Fergus MacLeod Head of Investor Relations