Bp Plc · LSE:BP.
Bp — Q3 2024 Earnings Presentation
32 slides from Bp's earnings presentation, Oct 29, 2024
Slide 1: 3Q 2024 financial results
3Q 2024 financial results 3Q 2024 financial results
Slide 2: Introduction by Craig Marshall, SVP investor relations
Craig Marshall SVP investor relations Hello everyone and thank you for your interest in bp’s third quarter 2024 results. Today’s video presentation features Murray Auchincloss, chief executive officer and Kate Thomson, chief financial officer. Before we begin today, let me draw your attention to our
Slide 3: Cautionary statement
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 statement: The discussion in this results announcement
Slide 4: Murray Auchincloss, Chief executive officer
Murray Auchincloss Chief executive officer 4
Slide 5: Highlights
Highlights Upstream production* Refining availability* ~2.4mmboed ~96% Underlying replacement cost profit * Operating cashflow * $2.3bn $6.8bn 3Q24 dividend per ordinary share 3Q24 share buyback announced 8¢ $1.75bn ($1.75bn 2Q share buyback completed) Simpler, more focused and higher value 3Q 2024
Slide 6: 2024 in action – focusing and simplifying our business
2024 in action – focusing and simplifying our business Driving focus Simplifying our business High-grading our portfolio Oil & gas Convenience Global – Agreed sale of four – Agreed sale of Türkiye ground standardisation mature fields in Trinidad fuels business (~30mboed) Refining – Stopped four pote
Slide 7: Digitisation of refining operations with Palantir and Infosys
Additionally, we are working with Palantir and teaming up with Infosys to accelerate the digitisation of our refining operations. We will update you on progress as we move forward and I’m very excited about this opportunity as I firmly believe companies with well managed data or digital ontology as
Slide 8: 2024 in action – delivering growth, optimising returns
2024 in action – delivering growth, optimising returns Returns led growth New access Paleogene — progressing the next chapter in deepwater New era in Azerbaijan – Kaskida progress – Exploration and development of gas reservoirs in ACG – Expected FID on Tiber in 2025 – SOCAR partnership in Caspian Se
Slide 9: Kate Thomson, Chief financial officer
Kate Thomson Chief financial officer 8
Slide 10: 3Q24 Underlying results
3Q24 Underlying results 3Q 2024 vs 2Q 2024 ▪ Underlying RCP lower driven by higher underlying ETR ▪ Underlying RCPBIT lower reflecting: ▪ Weaker realised refining margins ▪ A weak oil trading result, lower than 2Q24 ▪ Lower liquids realisations ▪ Partly offset by higher gas realisations ▪ Gas market
Slide 11: Underlying effective tax rate and adjusting items
Our underlying effective tax rate in the third quarter was 42%. We recorded net adverse adjusting items of $1.2 billion after tax, primarily related to impairments which are across all three segments. On an IFRS basis, our headline profit was $200 million. 9
Slide 12: 3Q24 Cash flow and balance sheet
3Q24 Cash flow and balance sheet ▪ 3Q24 working capital release reflecting the unwind of a working capital build in 1Q24, impact of the price environment and timing of various payments ▪ YTD 2024 capex of $12.5bn ▪ YTD 2024 divestment and other proceeds $1.5bn (1) Adjusted for inventory holding gain
Slide 13: Financial frame
Financial frame Resilient Strong investment Disciplined investment Share dividend grade credit rating allocation buybacks 8¢ ‘A’ range ~$16bn $3.5bn per ordinary share for 3Q24 credit metrics through cycle 2024-25 p.a. capital expenditure* 2H242 Resilient $40/bbl cash balance point*1 at least $14bn
Slide 14: Share buyback programme
share buyback programme to be executed by the time of our fourth quarter results. And as we look ahead to the fourth quarter – we remain committed to announcing a $1.75 billion share buyback, subject to board approval. In addition, our previous guidance for at least $14 billion of share buybacks thr
Slide 15: Guidance
Guidance Full year 20241 4Q 2024 vs 3Q 20241 Reported and underlying Slightly higher than 2023, of which OPO higher Reported upstream production*: upstream production* and GLCE lower ▪ expect to be lower Customers Growth from convenience, including TravelCenters of America; stronger Castrol, bp puls
Slide 16: Driving focus and efficiency in our cash costs
Driving focus and efficiency in our cash costs Portfolio focus Supply chain efficiencies High grading customers & products Working with our suppliers to take out waste, ― Refining – agreed sale of SAPREF and reduce 3rd party spend – reducing demand, ― Customers – agreed sale of Türkiye ground fuels
Slide 17: Sustainable and material efficiencies
to drive sustainable and material efficiencies. For example: – We are managing our third-party resource differently through our bp- wide transformation programme, we are calling Total Resource Management. This provides detailed visibility to our contractor population and is leading to more than $200
Slide 18: Murray Auchincloss, Chief executive officer
Murray Auchincloss Chief executive officer 14
Slide 19: Six priorities
Six priorities 1 2 3 Improve safety & Drive focus into Deliver next wave reduce emissions the business of efficiency 4 5 6 Deliver growth Optimise ROACE* Grow shareholder projects returns Growing the value of bp 3Q 2024 financial results 15 Thanks Kate. To summarise, as you have heard we have made s
Slide 20: Closing remarks on cost and capital efficiency
We are also focused on driving cost and capital efficiency into our business and this is all underpinned by our financial frame focused on a resilient and growing dividend, a strong balance sheet, disciplined capital investment and competitive distributions to shareholders. Looking forward, I firmly
Slide 21: Appendix
Appendix 3Q 2024 financial results 16
Slide 22: Financial summary
Financial summary (1) Adjusted for inventory holding gains or losses*, fair value accounting effects* and other adjusting items (2) Includes share buybacks to offset the expected full-year dilution from the vesting of awards under employee share schemes. In 2023, bp completed the $675m buyback progr
Slide 23: Gas and low carbon energy
Gas and low carbon energy Underlying RCPBIT* $bn 3Q 2024 vs 2Q 2024 ▪ Higher gas realisations ▪ Gas marketing and trading result was average 3Q 2024 financial results 18
Slide 24: Oil production and operations
Oil production and operations Underlying RCPBIT* $bn 3Q 2024 vs 2Q 2024 ▪ Lower liquids realisations ▪ Higher exploration write-offs (1) Because of rounding, upstream production may not agree exactly with the sum of gas and low carbon energy and oil production and operations (2) On a year-to-date ba
Slide 25: Customers and products
Customers and products Underlying RCPBIT* $bn 3Q 2024 vs 2Q 2024 Customers ▪ Convenience & mobility – broadly flat fuels margins, seasonally higher volumes partly offset by costs Products ▪ Refining – weaker realised refining margins ▪ Trading – a weak oil trading result which was lower than 2Q 2024
Slide 26: Strategic progress – last 12 months
Strategic progress – last 12 months Resilient hydrocarbons Convenience and mobility1 Low carbon energy Scaling-up our bioenergy business Scaling-up our bioenergy business Renewables pipeline* • Archaea – 9 AMD plants online - capacity of >10m mmbtu of RNG p.a • Acquired bp Bunge Bioenergia – product
Slide 27: Glossary – abbreviations
Glossary – abbreviations ACE Azeri Central East mboed Thousand barrels of oil equivalent per day. ACG Azeri-Chirag-Deepwater Gunashli mmbtu Million British thermal units. AMD Archaea Modular Design. MoU Memorandum of understanding. Barrel (bbl) 159 litres, 42 US gallons. mtpa Million tonnes per annu
Slide 28: Glossary
Glossary Adjusting items Include gains and losses on the sale of businesses and fixed assets, EBITDA / Replacement cost (RC) profit before interest and tax, excluding net adjusting impairments, environmental and related provisions, restructuring, adjusted EBITDA items* before interest and tax, and a
Slide 29: Glossary
Glossary Net debt Calculated as finance debt, as shown in the balance sheet, plus the fair Renewables Renewable projects satisfying the following criteria until the point they can value of associated derivative financial instruments that are used to hedge pipeline be considered developed to FID: Sit
Slide 30: Glossary
Glossary Surplus cash flow Refers to the net surplus of sources of cash over uses of cash, after Underlying 2024 underlying production, when compared with 2023, is production after reaching the $35 billion net debt target. Sources of cash include net cash production adjusting for acquisitions and di
Slide 31: Glossary
Glossary Working capital Movements in inventories and other current and non-current assets and liabilities as reported in the condensed group cash flow statement. Change in working capital adjusted for inventory holding gains/losses, fair value accounting effects relating to subsidiaries and other a
Slide 32: Resources
Resources bp's website includes information Useful links Investor events about our financial performance, reports and information on investing Why invest in bp 11 February 2025 Full year and fourth quarter 2024 in bp, dividend payments, AGM and results strategy events. Modelling guidance Databook Fi