BP plc · LSE:BP.
BP — Q1 2008 Earnings Presentation
13 slides from BP's earnings presentation, Apr 29, 2008
Slide 1: 1Q 2008 Results Webcast
1Q 2008 Results Webcast 29 April 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 annual charges, improvements in operating performance and stronger financial delivery, effective tax rate,
Slide 3: Byron Grote, Chief Financial Officer
Byron Grote Chief Financial Officer
Slide 4: Trading environment
Trading environment $/bbl Liquids realization $/mcf Gas realization 100 16 80 12 60 8 40 20 4 0 0 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2007 2008 2007 2008 $/bbl Refining indicator margin 18 16 14 Average realizations 1Q08 vs. 1Q07 12 Liquids $/bbl 70% 10 8 Natural gas $/mcf 21% 6 Total hydrocarbons $/boe 5
Slide 5: Financial results
Financial results Change vs. 1Q 2007 Results for the first quarter $bn % % per share • Replacement cost profit 6.6 48 52 • Profit including inventory gains/losses 7.6 63 68 • Net cash provided by operating activities 10.9 37 40 ¢/ share • Dividend to be paid next quarter 13.525 +31% 5
Slide 6: Exploration & Production
Exploration & Production $bn pre-tax 12 • Higher realizations 10 • Higher gas marketing and trading and LNG contribution 8 • Higher costs: DD&A and sector- 6 specific inflation • Higher TNK–BP contribution: 4 prices and tax lag benefit 2 • Non-operating items (NOI) − Embedded derivatives 0 1Q 07 FVA
Slide 7: Refining & Marketing
Refining & Marketing $bn pre-tax 2.5 • Higher refining availability 2.0 • Lower refining margins • Greater turnaround and repair 1.5 activity • Non-operating items (NOI) 1.0 − Disposal gains 0.5 − Restructuring costs 0.0 1Q 07 FVAE/NOI Underlying 1Q 08 1,572 Underlying result $m 539 (539) Fair value
Slide 8: Other businesses & corporate
Other businesses & corporate $bn pre-tax 0.2 • Expected underlying annual 0.1 charge of $1.5bn ± $200m • Non-operating items (NOI) 0.0 − Restructuring costs (0.1) (0.2) (0.3) (0.4) 1Q 07 FVAE/NOI Underlying 1Q 08 (132) Underlying result $m (132) 34 Non-operating items (NOI) $m (81) (98) Total result
Slide 9: Sources and uses of cash
Sources and uses of cash $bn post tax 1Q 07 1Q 08 12 Disposals 10 Disposals 8 Buybacks Buybacks Operations 6 Dividends Dividends 10.9 Operations 4 8.0 Acquisitions Organic Organic capex capex 2 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 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: Strategic progress
Strategic progress Closing the competitive gap: restoring momentum • Underlying production growth excluding PSA effects of more than 5% • Project start-ups: Deep Water Gunashli (ACG development) and Mondo (Kizomba C Development) • Whiting: full crude capacity and flexibility • Texas City: crude capa
Slide 12: Outlook
Outlook • Expect strong underlying growth in full-year production • Matched by negative PSA effects at $100/bbl • Seasonal upstream turnarounds planned in 2Q-3Q: North Sea and US • Refining margins recovering but remain below 2007 level • Marketing businesses showing impact of economic slowdown 12
Slide 13: Q&A
Q&A Byron Grote Chief Financial Officer Fergus MacLeod Head of Investor Relations 13