BP plc · LSE:BP.
BP — Q1 2004 Earnings Presentation
20 slides from BP's earnings presentation, Apr 27, 2004
Slide 1: Presentation to the financial community
presentation to the financial community tuesday 27th april 2004
Slide 2: Forward Looking Statements Cautionary Statement
Forward Looking Statements Cautionary Statement This presentation and the associated slides and discussion contain forward looking statements particularly those regarding BP's asset portfolio and changes in it, capital expenditure, capital employed, cash flow, cash returns and other trend projection
Slide 3: Delivery against targets
delivery against targets ! reinvest for long term growth " on track ! increase dividends "+8% vs. 1Q 03 ! distribute 100% of excess cash flow "$1.25bn share buybacks in 1Q 04
Slide 4: Petrochemicals: pre-tax cash returns
petrochemicals: pre-tax cash returns % 25 20 15 10 5 0 00 01 02 03 advantaged (aromatics + acetyls) olefins and derivatives
Slide 5: Petrochemicals: next steps
petrochemicals: next steps ! advantaged products !retain and grow ! olefins and derivatives !possible separate corporate entity !potential for IPO
Slide 6: Trading environment
trading environment $/bbl $/mcf $/bbl $/te 35 6 5 160 refining 30 oil 5 140 4 25 120 4 gas 3 100 20 3 petrochemicals 80 15 2 2 60 10 40 1 1 5 20 0 0 0 0 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2003 2004 2003 2004 % change vs % change vs average realisations 1Q03 4Q03 indicator margins 1Q03 4Q03 crude oil $/bb
Slide 7: Forex
forex quarterly average exchange rates ! natural balance 2.0 1.8 $/£ ! margin pressure in Europe 1.6 ! net 1Q04 vs 1Q03 1.4 pre-tax impact $/€ 1.2 $bn 1.0 (0.1) operating cash flow 0.8 4Q 1Q 2Q 3Q 4Q 1Q (0.2) earnings 2002 2003 2004 (0.1) capex
Slide 8: Financial results
financial results % change ! results for the first quarter $bn vs 1Q03 !pro forma 4.7 17 !replacement cost 4.2 22 !historical cost 4.8 14 !post-tax adjusted operating 7.1 35 cash flow* !pre-tax cash return ** 32% (5) !ROACE pro forma 24% 0 !dividends ¢/share 6.75 8 * after discretionary pension cont
Slide 9: Exceptional & non-operating items
exceptional & non-operating items $bn 1Q04 post-tax exceptional items 1300 1.5 non-operating items and UPIS (123) Total 1177 1.0 0.5 0.0 (0.5) 1Q 2Q 3Q 4Q 1Q 2003 2004
Slide 10: Return on average capital employed
return on average capital employed % competitor range* 35 BP 30 25 20 15 10 5 0 (5) (10) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2002 2003 2004 *BP, ExxonMobil, Shell, ChevronTexaco, Total ROACE = (pro forma result + after tax finance interest + MSI) / pro forma average capital employed
Slide 11: Pre-tax cash returns
pre-tax cash returns* % 45 40 35 30 25 20 15 10 5 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2002 2003 2004 * pre-tax cash return = pro forma RCP before interest & tax – exceptional items + pro forma DD&A / pro forma average operating capital employed
Slide 12: 1Q04 vs 4Q03 result
1Q04 vs 4Q03 result pro forma basis $bn post-tax 5 r&m gas 4 oil 3 exceptionals & non-operating items 2 1 0 4Q03 e&noi environ- forex a&d dd&a other 1Q04 ment
Slide 13: 1Q04 vs 1Q03 result
1Q04 vs 1Q03 result pro forma basis $bn post-tax 6 5 4 exceptionals & non-operating items 3 2 1 0 1Q03 e&noi environ- forex a&d dd&a other 1Q04 ment
Slide 14: TNK-BP
TNK-BP 4Q03 1Q04 $m impact on BP results BP share of TNK-BP net income 278 219 deferred shares consideration accretion (25) (26) impact on BP net income 253 193 production mboed 720 832 dividend received 297 262 ! $29m charge in 1Q relating to prior period ! Slavneft purchase completed January 16th
Slide 15: Indicators of strategic progress: exploration and production
indicators of strategic progress exploration and production ! exploration success continues ! major projects remain on track ! 1Q production 4015mboed ! full year expected production of over 4mmboed ! disposals in Canada and deepwater GoM
Slide 16: Indicators of strategic progress: customer facing businesses
indicators of strategic progress customer facing businesses ! refining and marketing !95.1% refining availability !shop sales up 4% & lubricants up 8% (like-for-like) !disposals: Singapore & Malaysia ! petrochemicals !higher asset utilisation !disposal: specialty intermediates ! gas, power and renew
Slide 17: Sources and uses of cash
sources and uses of cash $bn post-tax 12 1Q03 1Q04 10 disposals 8 pensions disposals net buybacks 6 dividends 4 acquisitions operations operations 5.5* 7.2* organic 2 capex 0 sources uses sources uses *post-tax adjusted operating cash flow before discretionary pension contributions of $(0.1)bn in 1Q
Slide 18: Gearing
gearing % 40 35 30 25 20 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2001 2002 2003 2004 pro forma gearing = net debt/(net debt + equity – acquisition adjustment)
Slide 19: Q&A session
q&a session Byron Grote chief financial officer Fergus MacLeod investor relations
Slide 20: Slide 20