BP plc · LSE:BP.
BP — Investor Presentation (March 2018)
24 slides from BP's investor presentation, March 2018
Slide 1: The Enterprise Trading Game: Introductory presentation
The Enterprise Trading Game Introductory presentation = =“ l A game that . real-life oil trading! /
Slide 2: Your challenge
Your challenge ©) You are going to trade crude oil. © You will work as a trading team competing against other teams. © Your task is to demonstrate the same skills that BP traders rely on in their everyday business. © Your objective is to make a profit.
Slide 3: Building success
Building success ie Success in this game means: ©) showing courage — a determination to win © working together as one team — respecting opinions and communicating © using analytical and thinking skills — demonstrating excellence. These Values and enterprise capabilities are integral to the game.
Slide 4: Importance of crude oil
Importance of crude oil ie ©) The commodity you will be trading is crude oil. © This is ‘unprocessed’ oil that is extracted from deep beneath the earth. © It is not useful in its raw form — so is refined to make petrol, diesel and other useful products. © It provides us with: - energy for heating, c
Slide 5: Trading crude oil
Trading crude oil ©) Crude oil is the world’s most actively traded commodity. © Traders buy crude oil at the best available price and then sell it at the best price to meet demand. ©) This price is largely set by: - how much crude oil is for sale (supply) - how many buyers there are for it (demand).
Slide 6: Entry-level game > Standard game >
Entry-level game > Standard game >
Slide 7: Playing the Entry-level game
6 Playing the Entry-level game
Slide 8: Step 1: Form a company
Step 1: Form a company There are four different roles within the company: © Chair: calls meetings and oversees progress © Market Analyst/s: leads on interpreting market information © Trader/s: completes Trading request form and gets it to the Assistant Controller within the time limit © Accountant:
Slide 9: Step 2: Company brief
Step 2: Company brief Your aim is to make a profit by: - buying barrels of oil at the lowest price possible - selling barrels at the highest price possible. ©) Each company begins with a set amount of $US dollars (trading fund) and barrels of oil in stock. © You will play: * 3 practice rounds * 6 tr
Slide 10: Step 3: Buying and selling
Step 3: Buying and selling ©) Each trading round starts with a news bulletin. © Decision time: NEWS does your company think it’s a good time to: - buy (when you think the price will go up) a - sell (when you think the price will go down) - not trade at all? © How will you manage risk? Are you feelin
Slide 11: Step 4: Trading request form
bp Step 4: Trading request form aa A Trader from your team must complete a Trading request form and get it to the Assistant Controller before the end of the round. All trading decisions must be made as a team! Company name: A1 Team Practice round: 1 Cperingtatncs Stock: 100 barrels Trading fund: $5,
Slide 12: Step 5: Financial report
io” ao) i Step 5: Financial report ® During the game your Accountant Table of accounts a Bi Company name: AlTeam will need to keep track of your Tote tac of yur aden reg pve eri coment tect exert Ogee rtf ech and company’s funds and stock by filling in a table of accounts. © At the end of the game e
Slide 13: Trading range and regulations
bp Trading range and regulations ie Prices can vary! In July 2008, crude oil traded for a record price of $147 a barrel — but fell to a price of around $40 a barrel within just a few months. © Therefore, during the game expect to trade within the range of $40-$140 a barrel. Regulations ©) Commission
Slide 14: Trading tips
Trading tips © What is your team’s market view? Are prices going up, down or staying stable? ©) Trade so that your position reflects your market view. ® Buy low and sell high. © Keep within time — and trading limits. © Always keep track of your position. © You can only buy or sell up to 4,000 barrel
Slide 15: Playing the Standard game
Playing the Standard game
Slide 16: Step 1: Form a trading team
Step 1: Form a trading team There are four different roles within your team: © Chair: calls meetings and oversees progress © Market Analyst/s: leads on interpreting market information © Trader/s: completes Trading request form in consultation with team, and gets it to the Assistant Controller within
Slide 17: Step 2: Team brief
Step 2: Team brief © You will be trading in crude oil futures. © This means you will be making agreements during the game to buy or sell oil at a certain price. © However, the actual exchange will take place in the future (at the end of the game). © Therefore it is not necessary to own something bef
Slide 18: Trading terminology
Trading terminology Market view © Bullish — an expectation that prices will go up. © Bearish — an expectation that prices will go down. Feeling mega Slightly ‘bearish’ Slightly ‘bullish’ Feeling mega ‘bearistt ‘bullish’ (Max short -100) (Max long +100) Market position © Long — you've bought more tha
Slide 19: Step 3: Trading guidelines
Step 3: Trading guidelines © You will be trading in ‘lots’. 1 lot = 1,000 barrels of oil. ® You must trade in increments of 10 lots. © Your market position must be between -100 and +100 lots (+/- 100,000 barrels). ©) At the end of the game* you need to be flat. © If your position is short at the end
Slide 20: Step 4: Buying and selling
Step 4: Buying and selling ©) Each trading round starts with a news bulletin. © Market prices will change as supply and demand of oil is affected by events. ©) Decision time: does you think it’s a good time to: - buy (when you think the price will go up) - sell (when you think the price will go down
Slide 21: Expected trading price ranges
Expected trading price ranges © The price of oil is volatile! © Market prices will change as supply and demand of oil is affected by events. © In July 2008, crude oil traded for a record price of $147 a barrel but fell to around $40 a barrel within just a few months. © Therefore, during the game exp
Slide 22: Step 5: Trading request form
bp Step 5: Trading request form aa A Trader from your Team name: AlTeam Practice round: 1 team must complete a Trading request form and get it to the Assistant Controller before the Instruction to buy 0 x$120 10 wteotare $120 bere = 000 x 1,000 barrels ° ~~ pela end of the round bots of ol @ per bar
Slide 23: Step 6: Financial report
bp Step 6: Financial report aa © During the game your Table of accounts Accountant will need to Sek pe kT Sg PT dca fem dg ed cd keep track of your team’s wewerime yy | sattpeten wy | ened ma $120 w ° » -$1,200,000 market position by filling in : the table of accounts on 3 the Financial report. one
Slide 24: Trading tips
Trading tips © What is your team’s market view? Are prices going up, down or staying stable? ©) Trade so that your position reflects your market view. © Buy low and sell high. © Keep within time - and trading limits. © Always keep track of your position. © Trade in increments of 10 lots (10,000 barr