Bp Plc · LSE:BP.
Bp — Q2 2020 Earnings Presentation
84 slides from Bp's earnings presentation, Aug 4, 2020
Slide 1: Second quarter 2020 financial results and strategy presentation
Second quarter 2020 financial results and strategy presentation 1 1
Slide 2: Craig Marshall, SVP Investor Relations
Craig Marshall SVP Investor Relations 2 I’m Craig Marshall, bp’s Senior Vice President, Investor Relations. You may have seen from this morning’s announcements, this call is going to be a bit different today. We have a full agenda and do expect to take a little longer than advertised. We will cover
Slide 3: Cautionary statement
Cautionary statement Forward-looking statements - 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 stat
Slide 4: Helge Lund, Chairman
Helge Lund Chairman 4 Thank you, Craig. And good morning. 4
Slide 5: Chairman's welcome and board decisions
5 And let me add my own welcome to everyone on our webcast. Thank you for joining us. As chairman of bp’s board, I would not usually join our results call. Normally they are led by our executive team. But today we’re making an exception. This morning, we outlined a set of results that were delivered
Slide 6: Board judgements
JUDGEMENTS Starting with our judgements. And our first judgement simply recognises a stark truth. The world is on an unsustainable path - its carbon budget is running out. Our second judgement is that – in response to that stark truth – energy markets have begun a process of fundamental, lasting cha
Slide 7: Delivering solutions for customers; financial frame and investor proposition
Company focused on delivering solutions for customers – a major, necessary step in support of bp’s purpose and ambition. FINANCIAL FRAME To deliver this strategy, the board has agreed a new financial frame for bp. It provides a stable foundation for our company. Strengthens our balance sheet Provide
Slide 8: Reimagining energy for people and planet
About energy. And about the opportunity we have to reimagine energy for people and our planet. Bernard and his team have the board’s full support. And I’m very pleased to join them in announcing these big steps for bp. Thank you. 5
Slide 9: Bernard Looney, CEO
Bernard Looney CEO 6 Thank you, Helge and welcome to everyone joining us today. I appreciate you taking the time. First of all – if I may – I want to start by thanking my bp colleagues for the amazing job they are doing right now as we all deal with the impacts of the COVID-19 pandemic. As well as t
Slide 10: A very different kind of energy company within a decade
right for our shareholders, and it is right for society. Within a decade – bp intends to be a very different kind of energy company. 6
Slide 11: From IOC to IEC
7 We are transforming from an International Oil Company focused on producing resources… To an Integrated Energy Company focused on delivering solutions for customers. From IOC to IEC. This is a truly transformational step as we seek to become a net zero company by 2050 or sooner. Today is about a ne
Slide 12: Strategy presentation accelerated to today
Any such decision must be put in context. And that is why we have accelerated our strategy presentation to today – so you can hear a coherent story of how this all fits together. We’ll come back to talk about this in more detail later – but let me turn firstly to recap on what has been a very busy f
Slide 13: What we've done since February 12
Strategic What’s to come – bp week deepdives Reinventing bp What we’ve done since Sustainability framework Petrochemicals Energy divestment outlook What we’ve announced – Feb 12 Long-term announced price assumptions Alaska upstream Human divestment Trade Biodiversity Purpose rights policy closed ass
Slide 14: Safety commitment
9 Before I hand over to Murray to go through our 2Q results, I want to emphasise two things. Firstly – safety. Our commitment to safety remains consistent and unwavering throughout our transformation process. It is, and will continue to be, our core value. And while it may not show up on every singl
Slide 15: Selecting the next level of leadership
10 Secondly – we are transforming the culture of bp. At the end of the day – it’s all about people. And that begins with leadership. We have now selected the next level of leadership in bp. Cutting the number of roles in half – from 240 to 120. Taking out a layer of management with more layers to co
Slide 16: Handover to second quarter results
As I set out in my note to staff in the days immediately after the killing of George Floyd – we will get there – and we are in action. And you will hear more about this in the weeks ahead. At this point I am now going to hand over to Murray to run through our second quarter results. And then we will
Slide 17: Murray Auchincloss, CFO
Murray Auchincloss CFO 11 Thanks Bernard. 11
Slide 18: Environment
Environment Commodity prices $/bbl / $/mmbtu Brent1 RMM2 Henry Hub1 RMM / Brent Henry Hub 80 21 2Q average Brent oil price 40% lower than 1Q 18 60 BP’s 2Q average RMM 33% 15 lower than 1Q 12 40 2Q US refinery utilisation 9 ~70%, ~19% lower y-o-y 6 20 2Q average Henry Hub gas 3 price lowest i
Slide 19: Long-term price assumptions and exploration review
Long-term price assumptions and exploration review 80 Brent assumption $/bbl real(2020) Impact on 2Q 2020 results 60 $16.8bn reported loss 40 – $6.7bn on an underlying RC basis 20 0 $11.8bn net impairment1 charges, 2020 2030 2040 2050 $8.5bn post tax – $11.1bn in Upstream1 – $0.7bn in Downstream
Slide 20: 2Q 2020 underlying results summary
2Q 2020 underlying results summary $bn 2Q19 1Q20 2Q20 2Q 2020 vs 1Q 2020 Underlying replacement cost profit 2.8 0.8 (6.7) $6.5bn post-tax exploration Underlying operating cash flow1 8.2 1.2 4.8 write-offs Underlying RCPBIT2 Lower oil and gas realisations Upstream 3.4 1.9 (8.5) Downstream 1.4 0.9
Slide 21: Cash flow and balance sheet
Cash flow and balance sheet 1H 2020 cash inflows/outflows $bn 16 Share buybacks Lease payments4 Cash outflow5 of $6.5bn 12 ~$12bn hybrid bond issue Working capital build Capex 8 Disposals2 Net Debt falls to $40.9bn 4 Gearing6 falls to 37.7% Dividends3 Underlying operating cash flow1 Gulf of
Slide 22: 2020 guidance
2020 guidance Third quarter Full year Upstream production Lower Upstream Lower reported production expected, reflecting: excluding Rosneft than 20191 Divestment of the Alaska business Organic capital ~$12bn expenditure Price impacts on entitlement volumes ~10% lower DD&A Downstream Higher prod
Slide 23: Third quarter demand and summary
Looking at the third quarter so far, retail fuel demand has recovered to around 10-15% below a year ago, however aviation fuel demand has remained more than 70% lower than a year ago. And despite demand impacts, store sales at our retail sites have increased year on year on a like for like basis, an
Slide 24: Bernard Looney, CEO
Bernard Looney CEO 17 Thank you, Murray. 17
Slide 25: Our purpose, ambition and aims
Our purpose Our ambition Our aims Five aims to help the world meet net zero Aim 10 Aim 1 Aim 9 Aim 2 Aim 8 Aim 3 Aim 7 by 2050 or sooner Aim 6 Aim 5 Aim and to help the world 4 reach that goal Five aims to become a net zero company 18 We have seen some tough quarters in our 110-year history. And whi
Slide 26: From international oil company to integrated energy company
an international oil company producing resources an integrated energy company delivering solutions for customers 19 After more than a century defined by two core commodities – oil and gas – through two core businesses – upstream and downstream… We are pivoting from an international oil company to an
Slide 27: Our strategy: an IEC delivering solutions for customers
Our strategy – an IEC delivering solutions for customers Low carbon Convenience Resilient electricity and mobility and focused hydrocarbons and energy Integrating energy systems Partnering with countries, cities and industries Driving digital and innovation A sustainability frame linking our purpose
Slide 28: Three sources of differentiation
Second – the three sources of differentiation: – Integrating energy systems along and across value chains – where we will pull together all of our capabilities to create comprehensive offers for our customers. – Partnering with countries, cities, and industries as they shape their own paths to net z
Slide 29: A very different company in 2030
…will create a very different company in 2030 Aims 2.5GW / 250TWh Developed renewables and traded electricity1 50GW developed / 500TWh traded 22Kbd Bioenergy >100Kbd developed / 20% biojet market share 0.6 Mte in our operations Hydrogen 10% share in core markets 10m Customer touchpoints per day >20m
Slide 30: We are building off a rich heritage
We are building off a rich heritage… 1921 – 1922 1922 – 1930 1930 – 1947 1947 – 1958 1958 – 1989 1989 – 1998 1998 – 2000 2000+ 22 Some will ask – in fact many may – why bp? What does bp bring to this new world? We think about it in two dimensions. First, we have the skills, built up over more than 1
Slide 31: We are not starting from scratch
…and we are not starting from scratch… SmartLog Hydrogen export project, Australia H2 Low carbon electricity Convenience and energy businesses and mobility offer US onshore wind Traded electricity 23 That is what we aim to do – and we are not starting from scratch in this new world. This slide is a
Slide 32: EV charging in China and DiDi partnership
rides per year 24 First EV charging – this is a picture of one of the charging racks at our Jinding retail site in Guangzhou in southern China. It is taken just after midnight – you can see from the time stamp on the security camera – and every charger is in use. China is the world’s fastest-growing
Slide 33: Convenience: Wild Bean coffee
coffees per year 25 Turning to convenience, this is our bp Connect Clifton retail station in Auckland, New Zealand. It serves the number one preferred coffee in New Zealand – which is our Wild Bean brand. We launched the brand in 2001 and now serve more than 150 million cups of coffee a year across
Slide 34: Lightsource bp solar
Lightsource bp presence in 26 This is the solar park that should soon be providing 25% of all the electricity for Penn State University in the US. It is a 70-megawatt solar array being built by our Lightsource bp partnership – and it will help reduce the university’s emissions. In the two years sinc
Slide 35: North American gas and power energy management
energy management services to in the US 27 And this image helps to illustrate a point about our North American Gas and Power business. While we are known as a major gas producer in the US, it is not so well known that we are the biggest marketer of natural gas in North America. We sell more than 20
Slide 36: Coherent approach to capital allocation
…underpinned by a coherent approach to capital allocation Clear priorities Resilient 1 dividend Strong balance 2 sheet Investing at scale in the 3 energy transition Investing to maximise 4 value in resilient hydrocarbons 5 Buyback commitment1 (1) Buyback commitment: once net debt is reduced to $35bn
Slide 37: Getting to net zero by 2050 or sooner
Getting to net zero by 2050 or sooner…. 2025 2030 2050, or sooner Targets Aims Aims Aim 1 20% 30-35% 100%1 Aim 2 20% 35-40% 100%2 Emissions Aim reductions 3 5% >15% 50% Aim Timeline to achieve 4 Measurements in place by 2023 50% 50% reduction to follow Aim 5 $3-4bn ~$5bn Low carbon spend3 (1) Net ze
Slide 38: Carbon markets and emissions from product use
bp will help make carbon markets effective. But for the avoidance of doubt – we do not anticipate them being needed to meet our planned reductions over the next 10 years. The second point relates to our Aim 3. While we believe our carbon intensity will come down by more than 15% by 2030 – absolute e
Slide 39: Delivering on our new investor proposition
…and delivering on our new investor proposition Resilient Committed dividend distributions Share buybacks EBIDA¹ per Profitable share growth growth Growing returns Investment Sustainable in transition value (1) EBIDA: Underlying replacement cost profit before interest and tax, add back depreciation,
Slide 40: All anchored in a coherent frame
All anchored in a coherent frame Purpose and core beliefs New strategy Resilient financial and sustainability frame frame for all stakeholders Compelling investor proposition 31 Let me finish for now by anchoring what you have heard so far within a coherent frame. It starts with our purpose and a se
Slide 41: Giulia Chierchia, EVP strategy and sustainability
Giulia Chierchia EVP, strategy and sustainability 32 Thank you, Bernard 32
Slide 42: Anchored in a coherent frame
Anchored in a coherent frame Purpose and core beliefs New strategy Resilient financial and sustainability frame frame for all stakeholders Compelling investor proposition 33 I’m delighted, and excited to be here today. Some people have asked me why I joined BP – I would reply “why would someone not
Slide 43: Informed by energy transition scenarios
Informed by energy transition scenarios Share of primary energy demand Non-fossil fuel Fossil fuel Business-as-usual Rapid Net Zero Continuing recent trends Broadly consistent with ‘Well below 2oC’ Broadly consistent with ‘1.5oC’ Absolute growth Absolute growth Absolute growth vs. 2019 vs. 2019 vs.
Slide 44: Energy outlook scenarios and net zero advocacy
energy system. While we do not anchor on a base case and seek resilience across a broad range of scenarios, for the avoidance of doubt, we do not want “business as usual” and will advocate directly, in support of net zero. 34
Slide 45: Our beliefs on the energy transition
Our beliefs on the energy transition Customers. will Oil and gas The world will challenged; redefine mobility and electrify, with convenience, driven but will remain part renewables by electrification, of the energy mix a clear winner digital and fleets for decades Customers – Energy systems will co
Slide 46: Customer demand for decarbonisation solutions
increasingly demand bespoke energy, mobility and decarbonisation solutions. 114 cities have already pledged to 1.5 degrees by 2050. 23% of Fortune 500 companies have announced emissions reduction goals. A fundamental acceleration in the transition is needed to meet those goals; and – Third, digital
Slide 47: Our strategy: an IEC delivering solutions for customers
Our strategy – an IEC delivering solutions for customers Low carbon Convenience Resilient and focused electricity and energy and mobility hydrocarbons Low carbon electricity Advancing growth Continued rigour in safety markets and operations Integrated gas Redefining convenience Driving e
Slide 48: bp 2030 aims: low carbon electricity and energy
bp 2030 aims – low carbon electricity and energy Low carbon Integrated gas electricity 25Mtpa customer sales 50GW developed >30Mtpa LNG portfolio renewables Position across generation and customers 500TWh traded1 Bioenergy >100Kbd produced Hydrogen and integrated across value and CCUS ch
Slide 49: Integrated gas, bioenergy, hydrogen and CCUS plans
– We plan to integrate further downstream, securing end-user demand through city gas, gas-to-transport, gas-to-electricity and Renewable Natural Gas Third, bioenergy. Hard to abate sectors such as aviation, marine and heavy- duty vehicles will need alternative solutions. – We plan to scale our bioen
Slide 50: bp 2030 aims: convenience and mobility
bp 2030 aims – convenience and mobility Advancing growth Redefining Next-gen markets convenience mobility >8,000 sites in growth markets 50% margin from convenience and electrification1 Differentiated fuels and Castrol >3,000 strategic convenience sites Differentiated customer offers lubricants Mar
Slide 51: Customer focus and next-gen mobility
– And we will put the customer at the heart of everything we do through a seamless digital experience and innovative offers such as delivered convenience and last mile logistics. Finally, we intend to shape and drive next generation mobility solutions for our customers: – We plan to scale up EV char
Slide 52: bp 2030 aims: resilient and focused hydrocarbons
bp 2030 aims – resilient and focused hydrocarbons Continued rigour in Driving emissions Focused upstream safety and operations down and refining portfolio Capital discipline and >15Mte reduction in Aim 1 Divest non-core assets project delivery >125Mte reduction in Aim 2 ~1.5mmboed2 oil and
Slide 53: Rosneft and the role of hydrocarbons
These numbers do not include our shareholding in Rosneft – which is a fundamental part of our broader portfolio providing us with a strong position in Russia – a key and resilient oil and gas province. We welcome Rosneft’s reported reduction in CO2 per unit since 2016 – by 7% in upstream and by 11%
Slide 54: Our distinctive sources of value creation
Our distinctive sources of value creation Integrating energy Partnering with countries, Driving digital systems cities and industries and innovation Focus on 10-15 cities and 3 Transform core operations, enabling Integration along value chains industries material efficiency improvements Integr
Slide 55: Cities, industries, digital and innovation
– We will focus on 10 to 15 cities and on three industrial sectors including high-tech and consumer-facing, heavy transport (including aviation, marine and trucks) and heavy industry, including cement and steel; and – We will aim to partner to define transition pathways and develop joint solutions T
Slide 56: Financial outcomes from new strategy
Financial outcomes from new strategy Resilient hydrocarbons Annual capital expenditure $bn Capital employed1 $bn 2030 ROACE2 Equity oil Equity gas 15 14-16 Refining Trading (oil and gas) Low carbon electricity and energy Low carbon electricity Integrated gas and power 12-14% Bioenergy CCUS Hydrogen
Slide 57: Transition to an integrated energy company
Transition to an integrated energy company Annual capital expenditure $bn Capital employed1 $bn Resilient base Equity oil 15 14-16 Equity gas Refining Fuels Lubes Trading (oil, gas) Transition Low carbon Low carbon electricity Bio-energy Electrification Future mobility solutions CCUS Hydrogen (incl.
Slide 58: Murray Auchincloss, CFO
Murray Auchincloss CFO 43 Thanks Giulia 43
Slide 59: Anchored in a coherent frame
Anchored in a coherent frame Purpose and core beliefs New strategy Resilient financial and sustainability frame frame for all stakeholders Compelling investor proposition 44 So far today you have heard a lot about our beliefs and our strategy. The strategy is enabled by a new and resilient financial
Slide 60: Coherent approach to capital allocation
Coherent approach to capital allocation Clear priorities Phase 1 Phase 2 Resilient dividend Resilient dividend 1 of 5.25 cents per share1 of 5.25 cents per share1 per quarter per quarter De-lever Strong investment grade 2 to $35bn credit rating Low carbon2 and Low carbon2 and 3 convenience and mobil
Slide 61: Capital allocation priorities
allocation intended to rise once our near-term deleveraging target is achieved – Fourth, investing appropriately in our resilient and valuable hydrocarbons business to generate sustainable cash flow; and – Fifth, committing to return at least 60% of surplus cash as buybacks, after having reached $35
Slide 62: Maintaining a strong investment grade credit rating
Maintaining a strong investment grade credit rating Clear objectives1 Net Debt $bn Cash cover2 Strong progress $12bn hybrid 30-40% across ~$12bn hybrid bond issue the cycle $35bn target $1.8bn 1H20 divestment proceeds Delivery underpinned 2021-25 cash balance point~$40/bbl3 $25bn 2H20-2025 d
Slide 63: Evolving long-term capital structure
We are also creating resilience through evolving our long-term capital structure, and we have made progress during the first-half with the issuance of hybrid bonds and 30 year debt. Recognising the growing pool of investors with a desire to finance the energy transition, we are also increasingly thi
Slide 64: Committed distributions
Committed distributions Clear policy Per share2 distributions Dividend Buybacks Resilient dividend intended to stay fixed at c/share 5.25 cents per share per quarter1 Commitment to return at least 60% of surplus3 42c/share cash flow via buybacks – once net debt target achieved; and – subject to
Slide 65: Investment allocation drives value growth
Investment allocation drives value growth Investment criteria Disciplined process Sustainable value growth Strategic alignment Boundaries set by capital Optimising returns and net frame and the 10 aims asset value, balancing: Returns Central allocation across – short-term free cash flow
Slide 66: Performing while transforming: 2021-25 business plan
Performing while transforming – 2021-25 business plan Disciplined expenditure $14-16bn per year1 investment Includes $5-7bn per year² investment $2.5bn cash cost reductions by including inorganics in low carbon electricity and energy end 2021³ on track. Ambition of and convenience and mobility $3-4b
Slide 67: Portfolio management and execution
enabled organisation. They are focused not only on fewer people, but on eliminating waste and driving supply chain efficiencies. Despite all the strides we have made so far, we continue to have a long way to go. Second. An active approach to portfolio management as we high-grade our portfolio to adv
Slide 68: Scaling our low carbon electricity and energy businesses
Scaling our low carbon electricity and energy businesses SmartLog Developed 2.5 20 renewables (GW) 250 Traded electricity1 (TWh) 350 14.9 LNG portfolio (Mtpa) 25 US onshore wind 222 Bioenergy (Kbd) 50 Growing to achieve material scale by 2025 (1) Traded electricity may include electricity sourced fr
Slide 69: Expanding our convenience and mobility offer
Expanding our convenience and mobility offer Customer >10m >15m touchpoints per day bp retail sites in 1,270 7,000 growth markets $6.5bn Castrol revenues $7.5bn Strategic >1,600 >2,300 convenience sites >7,500 EV charge points >25,000 Margin from convenience ~25% ~35% and electrification1 Customer c
Slide 70: Maximising value from resilient and focused hydrocarbons
Maximising value from resilient and focused hydrocarbons Track record of major project delivery 24 Delivering Delivering 2.6 Upstream production1 (mmboed) ~2 Major Projects 700mboed 900mboed online developed by end-2021 ~7 Unit production costs2 ($/boe) ~6 2020 2021 2022 2023+ Atlantis Ph3 KG D6
Slide 71: Refining portfolio high-grading
Here we intend to high-grade the portfolio to deliver first quartile net cash margin and sustainable EBIDA generation. – We aim to grow earnings per barrel through continued delivery of business improvement plans focused on reliability, cost efficiency, advantaged feedstock and commercial optimisati
Slide 72: 2021-25 business plan outcomes
2021-25 business plan outcomes Underlying1 EBIDA2 growth EBIDA2 per share growth3 Strong and growing ROACE5 $bn c/share % 2H19-1H20 2025 2H19-1H20 2025 2019 2025 $51 $50-60 $51 $50-60 $64 $50-60 5-6% underlying 7-9% per share EBIDA2 12-14% group ROACE5 in EBIDA2 CAGR4 per share CAGR4 2025 (1)
Slide 73: Clear priorities for uses of cash
Clear priorities for uses of cash 2021-25 sources of cash¹ 5.25 c/share2 Resilient dividend per quarter Deleverage To $35bn net debt Phase 1 ~$13-15bn per year Investment3 Phase 2 ~$14-16bn per year At least 60% Buybacks of surplus4 Surplus after buybacks (1) Sources of cash includes Operating cash
Slide 74: Our new investor proposition
Our new investor proposition Resilient dividend of 5.25 cents per Committed share per quarter1 distributions >60% surplus cash as share buybacks2 7-9% EBIDA3 Profitable per share CAGR4 growth Growing ROACE to 12-14%5 >20% capital Sustainable employed in transition6 value (1) Intended to remain fixed
Slide 75: Bernard Looney, CEO
Bernard Looney CEO 56 Thank you Murray, and Giulia 56
Slide 76: Summary: an integrated energy company
to low carbon energy and our net zero customer focus ambition An integrated energy company delivering solutions for customers long-term resilient hydrocarbon value for business on value shareholders 57 Let me recap very quickly on four points and then we’ll take your questions. First, we are pivotin
Slide 77: The team
The team David Eyton Geoff Morrell EVP, innovation & engineering Emma Delaney EVP, communications Giulia Chierchia EVP, customers & advocacy Murray Auchincloss EVP, strategy & & products Chief financial officer William Lin sustainability Eric Nitcher EVP, regions, EVP, Legal cities & solutions Carol
Slide 78: Q&A
Q&A Giulia Chierchia Bernard Looney Murray Auchincloss EVP, Strategy and CEO CFO Sustainability 59 59
Slide 79: Appendix
Appendix 60 60
Slide 80: Emissions pathways with 2019 baseline
Emissions pathways with 2019 baseline 2019 2025 2030 2050, or sooner Baseline Targets Aims Aims Aim 1 54 20% 30-35% 100% 1 Mte Aim 2 360 20% 35-40% 100% 2 Mte Emissions Aim reductions 3 79.7 5% >15% 50% gCO2e/MJ Aim Timeline to 4 0.2% proxy Measurements in place by 2023 50% reduction achieve 50% to
Slide 81: 2Q 2020 summary
2Q 2020 summary $bn 2Q19 1Q20 2Q20 % Y-o-Y % Q-o-Q Upstream 3.4 1.9 (8.5) Downstream 1.4 0.9 1.4 Other businesses and corporate (0.3) (0.6) (0.3) Underlying business RCPBIT 1 4.5 2.2 -7.3 (264%) (429%) Rosneft2 0.6 (0.0) (0.1) Consolidation adjustment – unrealised profit in inventory 0.0 0.2 (0.0) U
Slide 82: Upstream
Upstream Volume mboed Underlying RCPBIT3 $bn 3.4 Non-US US Total 4000 Group production1 4.0 2.7 2.1 1.9 3500 2.0 0.0 3000 Upstream production (2.0) excluding Rosneft 2500 (4.0) (6.0) 2000 (8.5) (8.0) 1500 (10.0) 2Q19 3Q19 4Q19 1Q20 2Q20 2Q19 3Q19 4Q19 1Q20 2Q20 Realisations2 2Q19 1Q20 2Q20 2Q 2020 v
Slide 83: Downstream
Downstream 96% Underlying RCPBIT2 $bn Refining 2Q19 1Q20 2Q20 Fuels Lubricants Petrochemicals Total environment Refining availability1 2.0 1.9 RMM ($/bbl) 15.2 8.8 5.9 1Q20: 96% 1.4 1.4 1.5 1.4 2Q 2020 vs 1Q 2020 0.9 Weaker industry refining margins and 1.0 narrower North American heavy crude oil
Slide 84: Rosneft
Rosneft BP share of underlying net income1 $bn BP share of Rosneft dividend2 $bn Dividend paid Half yearly dividend 1.0 1.0 0.8 0.8 0.6 0.6 0.4 0.4 0.2 0.0 0.2 2018 2019 2020 0.0 -0.2 2Q19 3Q19 4Q19 1Q20 2Q20 1.1mmboed BP share of Rosneft production3 (1) On a replacement cost basis and adjusted for