BP plc · LSE:BP.
BP — Q3 2008 Earnings Presentation
13 slides from BP's earnings presentation, Oct 28, 2008
Slide 1: 3Q 2008 Results Webcast
3Q 2008 Results Webcast 28th October 2008
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 progress in delivering the strategy of upstream growth, downstream turnaround and corporate simplificatio
Slide 3: Byron Grote, Chief Financial Officer
Byron Grote Chief Financial Officer
Slide 4: Trading environment
Trading environment $/bbl Liquids realization $/mcf Gas realization 120 20 100 16 80 12 60 8 40 20 4 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2007 2008 2007 2008 $/bbl Refining indicator margin 18 Change vs 2007 15 Average realizations 3Q 9mths 12 Liquids $/bbl 57% 68% 9 Natural gas $/mcf 65% 4
Slide 5: Financial results
Financial results Change vs. 3Q 2007 Results for the third quarter $bn % % per share • Replacement cost profit 10.0 148 151 • Profit including inventory gains/losses 8.0 83 85 • Net cash provided by operating activities 14.9 134 137 ¢/ share • Dividend to be paid next quarter 14.0 29 Change vs. 9mth
Slide 6: Exploration & Production
Exploration & Production $bn pre-tax 14 • Higher realizations 12 • Strong underlying production 10 growth more than offset the impact of hurricanes and operational events 8 in 3Q 6 • Higher production taxes and depreciation 4 • Higher TNK–BP contribution 2 • Higher gas marketing and trading 0 contri
Slide 7: Refining & Marketing
Refining & Marketing $bn pre-tax 2.5 • Improved refining operations 2.0 • Improved marketing performance • Stronger commercial refining, 1.5 supply and trading performance • Negative foreign exchange effects 1.0 0.5 0.0 3Q 07 FVAE/NOI Underlying 3Q 08 808 Underlying result $m 1,336 (93) Fair value a
Slide 8: Other businesses & corporate
Other businesses & corporate $bn pre-tax 0.1 • Underlying annual charge below 0.0 expected range of $1.5bn ± $200m (0.1) (0.2) (0.3) (0.4) (0.5) (0.6) 3Q 07 FVAE/NOI Underlying 3Q 08 (310) Underlying result $m 112 (201) Non-operating items (NOIs) $m (128) (511) Total result $m (16) 8
Slide 9: Sources & uses of cash
Sources & uses of cash $bn post tax 9 months 07 9 months 08 40 Disposals 30 Buybacks Disposals Buybacks Dividends 20 Operations Inorganic Dividends 32.5 capex Operations Inorganic capex 10 20.4 Organic Organic capex capex 0 Sources Uses Sources Uses 9
Slide 10: Net debt ratio
Net debt ratio % 40 35 30 25 20 15 10 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2007 2008 Net debt ratio = net debt / (net debt + equity) Net debt includes the fair value of associated derivative financial instruments used to hedge finance debt 10
Slide 11: Outlook
Outlook Exploration & Production • Lower oil and gas prices • Strong underlying growth in production continuing • TNK-BP: Tax lag Refining & Marketing • Q4 turnaround activity • Impact of economic slowdown on marketing and supply OB&C in line with February guidance Tax rate expected around 33% 11
Slide 12: Strategic Progress: Closing the competitive gap
Strategic Progress Closing the competitive gap • Upstream growth • Downstream turnaround • Corporate simplification • Alternative Energy: disciplined growth 12
Slide 13: Q&A
Q&A Byron Grote Chief Financial Officer Fergus MacLeod Head of Investor Relations 13