Bp Plc · LSE:BP.
Bp — Q4 2021 Earnings Presentation
86 slides from Bp's earnings presentation, Feb 8, 2022
Slide 1: From IOC to IEC
From IOC to IEC bp full year & fourth quarter 2021 financial results & update on strategic progress 8 February 2022
Slide 2: SVP investor relations introduction
svp investor relations Good morning, everyone, and thank you for joining Bernard, Murray and I today. 2
Slide 3: Agenda
Full year and fourth quarter 2021 results Strategic progress Financial frame Investor proposition Q&A 3 We have a slightly extended presentation today. In a moment I’ll hand over to Bernard to introduce and cover the full year highlights, and Murray will take you through our fourth quarter results.
Slide 4: 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 5: Chief executive officer
Chief executive officer Thanks Craig, and good morning to everyone joining us on the phone and web. I’m also delighted that we are able to host a small audience here in-person. 5
Slide 6: The leadership team
The leadership team Murray Auchincloss Gordon Birrell Giulia Chierchia Emma Delaney Anja-Isabel Dotzenrath1 Kerry Dryburgh Chief financial EVP, production EVP, strategy EVP, customers EVP, gas & low EVP, people and officer and operations and sustainability and products carbon energy culture Emeka Em
Slide 7: Chief executive officer reflections on two years of change
Chief executive officer In the two years since laying out our new ambition – we have been through a period of significant change. At the same time - the world around us has changed; COVID, volatility in energy markets and the accelerating energy transition. With this backdrop, it feels like a good t
Slide 8: Performing – building a strong track record in 2021
Full year and fourth quarter 2021 results Performing – building a strong track record in 2021 underlying replacement cash cost savings2 target cost profit* delivered ahead of schedule operating cash flow* including net debt* reduction $5.3bn working capital* build1 per ordinary ROACE* share dividend
Slide 9: Transforming – strategic progress
Full year and fourth quarter 2021 results Transforming – strategic progress 2019 2021 2019 2021 2019 2021 Renewables pipeline* UK and US offshore 1.45GW ScotWind Low carbon hydrogen* hopper* wind pipeline lease option award Renewables pipeline* and hydrogen* hopper* are net to bp FY & 4Q 2021 financ
Slide 10: Accelerating plans and confidence in 2025 targets
0.7 and 1.3 mtpa. Progress like this – as well as the pace at which the world is moving – leads us to believe we can accelerate our plans in some areas and reinforces our confidence in delivering our 2025 targets. Before we get into the detail around that – let me first bring in Murray to discuss ou
Slide 11: Chief financial officer
Chief financial officer Thanks Bernard and good morning everyone. 10
Slide 12: An improving but volatile macro environment
Full year and fourth quarter 2021 results An improving but volatile macro environment Oil price1 $/bbl Natural gas price1 $/mmbtu Refining marker margin* 1 $/bbl Brent Henry Hub JKM NBP RMM* Source: Platts - all data 1 January 2021 to 2 February 2022 (1) Spot price FY & 4Q 2021 financial results & u
Slide 13: Underlying results
Full year and fourth quarter 2021 results Underlying results $bn 4Q20 3Q21 4Q21 Underlying RCPBIT * 1.0 5.9 7.0 4Q 2021 vs 3Q 2021 Gas & low carbon energy 0.2 1.8 2.2 Oil production & operations 0.6 2.5 4.0 ▪ Higher oil and gas realisations* Customers & products 0.1 1.2 0.6 Rosneft * 0.3 0.9 0.7 ▪ H
Slide 14: Cash flow and balance sheet
Full year and fourth quarter 2021 results Cash flow and balance sheet FY21 and 4Q highlights 2021 cash inflows/outflows $bn ▪ $6.1bn 4Q21 operating cash flow* including ▪ $2.2bn working capital*1 build ▪ $7.6bn FY21 disposal proceeds* with $2.3bn in 4Q21 ▪ $6.3bn FY21 surplus cash flow* with $3.0bn
Slide 15: Delivered against the 2021 financial frame
Full year and fourth quarter 2021 results Delivered against the 2021 financial frame (1) Includes OB&C* (2) In addition, $500m share buyback completed during 2Q21 to offset dilution from vesting of awards under employee share schemes FY & 4Q 2021 financial results & update on strategic progress 14 L
Slide 16: Chief executive officer
Chief executive officer Thanks Murray. I am going to speak for just over half an hour before handing back to Murray to cover the financial frame. Then I will close and we’ll move to Q&A. 15
Slide 17: Our strategy to transform into an IEC remains unchanged
Strategic progress Our strategy to transform into an IEC remains unchanged FY & 4Q 2021 financial results & update on strategic progress 16 Let me turn now to our strategic progress. We now have two years under our belt. We have made progress on our 2025 targets. And we are increasingly confident -
Slide 18: Our progress so far
Strategic progress Our progress so far ▪ New purpose ▪ Restructuring completed ▪ New ambition ▪ Disclosures enhanced ▪ New strategy ▪ Capability expanded ▪ New financial frame ▪ Shareholder distributions increased ▪ New sustainability frame ▪ Balance sheet ▪ New leadership strengthened team FY & 4Q
Slide 19: From IOC to IEC
Strategic progress From IOC to IEC Confidence in 2025 EBITDA from delivery, EBITDA* resilient hydrocarbons growth to 20301 sustained through 20301 Capital discipline, $9-10bn EBITDA* from Greening accelerated – balance sheet transition growth net zero operations, deleverage, focus on businesses by 2
Slide 20: Confidence in 2025 delivery
Strategic progress Confidence in 2025 delivery Two year track record of strategic delivery Growing EBITDA* to ~$40bn in 2025 ▪ Sustaining from resilient hydrocarbons at ~$33bn ▪ Rateable growth from convenience and mobility to ~$7bn Disciplined application of our financial frame ▪ $14-16bn capital e
Slide 21: Aiming for EBITDA growth to 2030
Strategic progress Aiming for EBITDA growth to 2030 All numbers represent 2030 aims, at $60/bbl Brent (2020, real) and bp planning assumptions FY & 4Q 2021 financial results & update on strategic progress 20 And we aim to continue to grow EBITDA to 2030. We plan to do this by: sustaining EBITDA from
Slide 22: Renewables and hydrogen growth sectors
− Renewables; and − Hydrogen. You can think of them as non-fossil and in high growth sectors. 20
Slide 23: Transition growth businesses
Strategic progress Transition growth businesses (1) Expected returns (IRR) (2) Excludes goodwill and cash and cash equivalent (3) 2030 EBITDA* aim, at $60/bbl Brent (2020, real) and bp planning assumptions FY & 4Q 2021 financial results & update on strategic progress 21 In each of these areas – our
Slide 24: From IOC to IEC
Strategic progress From IOC to IEC Confidence in 2025 EBITDA* from delivery, EBITDA* resilient hydrocarbons growth to 20301 sustained through 20301 Capital discipline, $9-10bn EBITDA* from Greening accelerated – balance sheet transition growth net zero operations, deleverage, focus on businesses by
Slide 25: Resilient hydrocarbons
Strategic progress ‒ resilient hydrocarbons FY & 4Q 2021 financial results & update on strategic progress 23 Turning then to progress across our strategic themes – and starting with # 1 – resilient hydrocarbons. 23
Slide 26: Resilient hydrocarbons: high-grading our portfolio
Strategic progress ‒ resilient hydrocarbons Resilient hydrocarbons “High-grading our portfolio, ▪ Maximise returns and cash flow ▪ Continue to improve availability ▪ Transition refineries to produce lowering our ▪ Maintain production base decline at 3-5% ▪ Move portfolio to first quartile Solomon ne
Slide 27: Progressing our strategy: resilient hydrocarbons
Strategic progress ‒ resilient hydrocarbons Progressing our strategy new major projects* Under budget on average reduction in drilling & production since 2016 for the 35 major projects* completions non-productive delivered since 2016 time vs 2020 Driving portfolio , competitiveness ▪ Angola and Iraq
Slide 28: Aim to sustain EBITDA to 2030
Strategic progress ‒ resilient hydrocarbons Aim to sustain EBITDA to 2030 2019 2021 2025 2030 aims EBITDA*1 ($bn) 32.0 33.5 ~33 30-35 Capital expenditure*2 ($bn) 17.3 9.3 9-10 ~8 Oil and gas production3 2.6 2.2 ~2 ~1.5 (mmboed) Unit production costs* ($/boe) ~7 ~7 ~6 ~6 Refining throughput (mmbd) 1.
Slide 29: Deep oil and gas resource base driving quality through choice
Strategic progress ‒ resilient hydrocarbons Deep oil and gas resource base driving quality through choice ~19bn boe of resource selected for development3 ~$7.5bn capital frame through 2025 $9/boe average point-forward development cost4 ~$15/boe DD&A in 2021 80% of 2022-2030 capital expenditure* in 6
Slide 30: Higher quality more focused oil and gas portfolio
Strategic progress ‒ resilient hydrocarbons Higher quality more focused oil and gas portfolio Broadly flat underlying production* ▪ Base decline held at 3-5% through 2025 and beyond ▪ Invest in best barrels High-grade ~700mboed by 2030 ▪ EBITDA* margin <$20/boe ▪ Realise value through proceeds Drive
Slide 31: Growing contribution from our advantaged refining portfolio
Strategic progress ‒ resilient hydrocarbons Growing contribution from our advantaged refining portfolio EBITDA* $bn Improving market conditions ▪ Recovery in product demand Availability improvement ▪ >96% Solomon availability* Cost efficiencies ▪ Solomon 2nd quartile non-energy cash costs Enhance fl
Slide 32: Growing bioenergy production
Strategic progress ‒ resilient hydrocarbons growth engine Growing bioenergy production Biofuels Maximise co-processing Bioenergy production1 mbd ▪ Biofuels production to triple Biodiesel/SAF production from 5 projects ▪ Investment in 3 standalone bio-plants ▪ Conversion of up to 2 refineries to bio-
Slide 33: Biogas growth
Turning to biogas. This is a sector we are increasingly excited about. It: − is capital light − is highly modular and capable of rapid growth − can achieve very low carbon intensities − creates value for bp through strong integration with trading; and − it delivers high returns and fast paybacks. Th
Slide 34: Convenience and mobility
Strategic progress ‒ convenience and mobility FY & 4Q 2021 financial results & update on strategic progress 31 Strategic theme #2 is convenience and mobility. 31
Slide 35: Convenience and mobility: doubling EBITDA
Strategic progress ‒ convenience and mobility Convenience and mobility “Doubling EBITDA*, sustaining returns, focused on ▪ Market leading convenience offers ▪ Acceleration of EV charging – ‘on-the-go’ fast-charging¹ and Castrol customers” ▪ Focus on growing revenue and ▪ Differentiated fuels and str
Slide 36: Progressing our strategy: convenience and mobility
Strategic progress ‒ convenience and mobility Progressing our strategy convenience partnership Castrol earnings from record convenience extended to at least 2030 growth markets gross margin* vs $1.2bn in 2019 in bpme customers supported by leading digital offers Strategic investments Growing biofuel
Slide 37: Aim to double EBITDA to $9-10bn by 2030
Strategic progress ‒ convenience and mobility Aim to double EBITDA to $9-10bn by 2030 2019 2021 2025 2030 aims EBITDA* ($bn) 4.9 4.4 ~7 9-10 Convenience and mobility EBITDA* $bn Capital expenditure*¹ ($bn) 1.5 1.6 2-3 Customer touchpoints per >10 >12 >15 >20 day (million) bp retail sites in growth m
Slide 38: Convenience and fuels retail – global presence and track record
Strategic progress ‒ convenience and mobility Convenience and fuels retail – global presence and proven track record of growth Convenience gross margin* $bn Record convenience gross margin* and increase in basket size in key markets ▪ $1.5bn, growth of >20% Increased strategic convenience sites * by
Slide 39: Jio-bp growth in India
2030, which will be primarily driven by our successful Jio-bp JV in India. 35
Slide 40: EV charging – accelerating our ambition
Strategic progress ‒ convenience and mobility growth engine EV charging – accelerating our ambition through a focus on ‘on-the-go’ charging and fleets in material markets Operated ‘on-the-go’ EV charge points* and energy sales Established a leading presence in UK and Germany, entered fleet segment i
Slide 41: Fleet customers and AMPLY Power
− we have a material fleet business with customers who we aim to support in their transition to EV charging − we already provide dedicated fleet solutions, which include hardware, software and other services; and − our acquisition of AMPLY Power has accelerated our entry into the US – one of the fas
Slide 42: Castrol, aviation, B2B/midstream – growth in volume and margin
Strategic progress ‒ convenience and mobility Castrol, aviation, B2B/midstream – growth in volume and margin Castrol revenues $bn 2030 aims underpinned by ▪ Top line increase from Castrol, aviation, B2B/midstream ▪ Bottom line improvement through efficiency, optimisation and footprint ▪ ~55% of Cast
Slide 43: Low carbon energy
Strategic progress ‒ low carbon energy FY & 4Q 2021 financial results & update on strategic progress 38 Strategic theme #3 is low carbon energy. 38
Slide 44: Low carbon energy: building scale with capital discipline
Strategic progress ‒ low carbon energy Low carbon energy “Building scale with capital ▪ Build a leadership position in offshore wind ▪ Leverage bp’s existing refinery demand discipline and ▪ Focus on integrated core markets and to build regional supply positions returns focus” early stage project de
Slide 45: Progressing our strategy: low carbon energy
Strategic progress ‒ low carbon energy Progressing our strategy Creating integrated hydrogen* and UK offshore wind renewables hubs renewables pipeline*1 ▪ Oman, Abu Dhabi, ▪ 1.45GW bp net increased 4x since 2019 UK and Europe ScotWind lease option awarded in 2022 US offshore wind JVs progress ▪ 3.3G
Slide 46: Aim to grow EBITDA to $2-3bn by 2030
Strategic progress ‒ low carbon energy Aim to grow EBITDA to $2-3bn by 2030 2019 2021 2025 2030 aims EBITDA* ($bn) Growth phase 2-3 Capital expenditure* ($bn) 0 1.6 3-5 4-6 Developed renewables to FID* 2.6 4.4 20 50 (GW) Low carbon hydrogen* in core Growth phase 10 markets (%) In addition we have ▪
Slide 47: Establishing our new wave of projects in low carbon energy
Strategic progress ‒ low carbon energy growth engine Establishing our new wave of projects in low carbon energy UK and Europe USA and rest of the world UK USA Offshore wind Norway NZT Morgan Lightsource bp Empire Wind 2 Ireland Hydrogen* / CCS NEP Mona bp US solar1 Beacon Wind 1 UK HyGreen Morven Em
Slide 48: Low carbon hydrogen – ambition to reach 10% share
Strategic progress ‒ low carbon energy growth engine Low carbon hydrogen – ambition to reach 10% share in core markets Hydrogen* hopper* bp net, mtpa Leveraging ~450ktpa existing refining hydrogen* demand First projects on schedule for production from 2024 onwards ▪ E.g. Lingen gH2, H2-Fifty, Castel
Slide 49: Integration
Strategic progress ‒ integration FY & 4Q 2021 financial results & update on strategic progress 44 Turning to Integration. Let me explain why we see a role, and need, for an IEC such as bp – one of a few companies we believe who have the scale and expertise to navigate complex markets and who can hel
Slide 50: Integrated hydrocarbon, electron and hydrogen value chains
business. And we will sell the products – electrons and hydrogen – to customers – a new marketing business. This creates an electron and hydrogen energy value chain with upstream, downstream and marketing businesses, that complement our existing hydrocarbon value chain. 44
Slide 51: Business integration – trading organisation at the heart of IEC
Strategic progress ‒ integration Business integration – our trading organisation is at the heart of our IEC model Established positions “Leading energy Trade in >15 European gas trader present in and power hubs 140 countries with Largest natural gas and biogas marketer in North America >2,000 employ
Slide 52: Country integration – multi-energy customer solutions
Strategic progress ‒ integration Country integration – creating multi-energy customer solutions along and across value chain (1) 2021 (2) Shared with partner FY & 4Q 2021 financial results & update on strategic progress 46 The UK is an example of how these integrated hydrocarbon, electron and hydrog
Slide 53: Leveraging infrastructure and ScotWind bid
organisation. This ability to leverage existing infrastructure, capabilities and relationships, and integrate across offshore wind, hydrogen and EV charging, supported our recent successful bid in the ScotWind leasing round. And we are already working to replicate this model in other countries. 46
Slide 54: Our capability
Strategic progress ‒ integration Our capability We have great incumbent capability… …and are attracting high-calibre specialised talent Anja-Isabel Matthias Tracey Clements, Dotzenrath, Bausenwein, SVP Mobility & EVP G&LCE SVP Offshore wind Convenience, ESA From RWE, 1 March From Orsted in 2H22 Prev
Slide 55: Sustainability
Strategic progress ‒ sustainability FY & 4Q 2021 financial results & update on strategic progress 48 Turning then to sustainability. In 2020, we announced our ambition to be a net zero company by 2050 or sooner, and to help the world get to net zero. Two years on, we continue to believe our ambition
Slide 56: Accelerating our net zero ambition
Strategic progress ‒ sustainability Sustainability – we are accelerating our net zero ambition in line with the progression of our strategy (1) 2025 targets and 2030 aims for Aims 1-3 are against our 2019 baseline. 100% means to net zero* by 2050 or sooner. FY & 4Q 2021 financial results & update on
Slide 57: Net zero aims and advisory vote at 2022 AGM
Our other aims remain as is, including those on methane and net zero production. In aiming for net zero across our operations, production and sales by 2050 or sooner, we believe our ambition supports the global push to meet the Paris goals, including helping the world pursue efforts to limit tempera
Slide 58: Rosneft – sustainably developing resources and driving down emissions
Strategic progress ‒ sustainability Rosneft – committed to sustainably developing resources and driving down emissions ▪ Upstream GHG intensity ▪ Scope 1 and 2 operational competitive with global emissions targets leading in peers1 Russia In action on New net zero emissions ▪ Co-leading Methane 2050
Slide 59: Chief financial officer
Chief financial officer No script 51
Slide 60: Growing cash flow as the business transitions
Strategic progress ‒ financial frame Growing cash flow as the business transitions 2H19/1H20 2021 2025 2030 aims $51/bbl $71/bbl $66/bbl¹ $73/bbl¹ Resilient hydrocarbons 25.0 33.5 ~33 30-35 Convenience and mobility 4.0 4.4 ~7 9-10 Low carbon energy Growth phase 2-3 Group EBITDA*2 ($bn) 28.5 37.2 ~40
Slide 61: Guidance on EBIDA per share CAGR and ROACE
2019. Taken together, this underpins our confidence in the guidance that we gave you in August 2020. We expect to deliver a 7 to 9% EBIDA per share CAGR between 2H19/1H20 and 2025, and ROACE of 12 to 14%. This assumes oil prices of $50 to 60 per barrel in 2020 real terms. And looking further ahead,
Slide 62: Increasing exposure to transition growth businesses
Strategic progress ‒ financial frame Increasing exposure to transition growth businesses Capital expenditure* % Capital employed1 % EBITDA* $bn aims ▪ Bioenergy ▪ Convenience ▪ EV charging ▪ Renewables ▪ Hydrogen* (1) Excludes goodwill and cash and cash equivalent FY & 4Q 2021 financial results & up
Slide 63: Transition growth engines – operational milestones
Strategic progress ‒ financial frame Transition growth engines – operational milestones Operational bio-refineries* 2 2 Global biogas offtakes 35 >125 >225 Bioenergy production >26mbd >50mbd >100mbd Standalone bio-plants 3 3 Strategic convenience sites* 2,150 ~3,000 ~3,500 Margin share from convenie
Slide 64: Disciplined investment allocation
Strategic progress ‒ financial frame Disciplined investment allocation Capital expenditure* (including inorganics) $bn 2021 2022 2023-25 2026-30 Resilient hydrocarbons 9.3 ~9 9-10 ~8 Convenience and mobility 1.6 2-3 2-3 2-3 Low carbon energy 1.6 ~2.5 3-5 4-6 Group capital expenditure*1 12.8 14-15 14
Slide 65: Continued strengthening of the balance sheet
Strategic progress ‒ financial frame Continued strengthening of the balance sheet Continued net debt* reduction $bn Doubling duration of debt book to >9 years % Gross debt 2021-5 average cash balance point* Intend to allocate 40% of 2022 surplus ~$40/bbl cash to further strengthen balance sheet FY &
Slide 66: Resilient dividend with clear priorities for surplus cash flow
Strategic progress ‒ financial frame Resilient dividend with clear priorities for surplus cash flow 2022-25 average annual dividend and uses of surplus cash flow*¹ $bn Resilient dividend is our first priority Capacity for ~4% annual dividend per share increase at ~$60/bbl² Committed to return ≥60% s
Slide 67: Continued discipline in executing the financial frame
Strategic progress ‒ financial frame Continued discipline in executing the financial frame (1) Subject to maintaining a strong investment grade credit rating. (2) In addition, executed $500m buyback programme during 1Q22 to offset expected dilution from vesting of awards under employee schemes durin
Slide 68: Chief executive officer
Chief executive officer Thanks Murray 59
Slide 69: Our investor proposition
Investor proposition Our investor proposition Growing value and returns ▪ 7-9% adjusted EBIDA*1 per share CAGR* ▪ Growing ROACE* to 12-14%2 Compelling cash distributions ▪ Resilient dividend3, ~4% p.a. growth Investing in transition; ▪ ≥60% surplus cash as share driving down emissions buybacks3 ▪ >2
Slide 70: Q&A
briefly as you can – so that we can get through as many as we can. 60
Slide 71: Appendix
Appendix FY & 4Q 2021 financial results & update on strategic progress
Slide 72: Guidance
Guidance Full year 2022 1Q22 vs 4Q21 Capital expenditure* $14-15bn Expect first-quarter 2022 reported upstream* production to be lower than DD&A Similar level to 2021 fourth-quarter 2021 reflecting base decline and higher maintenance. Within this, we expect production from both oil production & op
Slide 73: Gas and low carbon energy
Gas and low carbon energy 4Q20 3Q21 4Q21 Underlying RCPBIT* $bn Production volume 3 Liquids (mbd) 98 109 122 2.3 Natural gas (mmcfd) 4,049 4,520 4,941 2.2 2 1.8 Total hydrocarbons (mboed) 796 889 974 Average realisations* 1.2 Liquids ($/bbl) 36.51 66.39 71.63 1 Natural gas ($/mcf) 3.37 5.26 6.94 21.
Slide 74: Gas and low carbon energy: renewables pipeline
Gas and low carbon energy Developed renewables to FID* and Renewables pipeline* Renewables hopper* renewables pipeline* bp net, GW by technology bp net bp net 0.2 Solar Offshore wind 17 GW 5.3 1.4 16% 23 GW 27.5 16.2 active projects 84% 4.4 Developed Americas Asia Europe Other Developed to FID* Paci
Slide 75: Oil production and operations
Oil production and operations 4Q20 3Q21 4Q21 Underlying RCPBIT* $bn Production volume1 5.0 Liquids (mbd) 1,021 975 1,004 4.0 4.0 Natural gas (mmcfd) 1,962 1,961 2,053 Total hydrocarbons (mboed) 1,359 1,313 1,358 3.0 2.5 2.2 Average realisations* 2.0 1.6 Liquids ($/bbl) 38.58 65.53 71.07 Natural gas
Slide 76: Customers and products
Customers and products 4Q20 3Q21 4Q21 Underlying RCPBIT* $bn Customers – convenience & mobility Customers - convenience & mobility Products - refining & trading Petrochemicals Total Customers – convenience & mobility 1.0 1.1 1.0 adjusted EBITDA* 2.0 Castrol1 adjusted EBITDA* 0.3 0.3 0.2 1.2 0.8 Capi
Slide 77: Rosneft
Rosneft bp share of underlying net income* $bn bp share of Rosneft dividend* $bn 1.0 0.8 0.9 0.6 0.8 0.7 0.7 0.4 0.6 0.2 0.0 0.4 0.4 2020 2021 0.3 4Q20 3Q21 4Q21 0.2 bp share of production volume Liquids (mbd) 876 876 879 0.0 Natural gas (mmcfd) 1,360 1,418 1,432 4Q20 1Q21 2Q21 3Q21 4Q21 Total hydro
Slide 78: Oil investment options
Oil investment options Existing hub New hub US Gulf of Mexico UK and Norway Atlantis Murlach Johan Sverdrup Phase 2 Major facility Drill center 1,2 and 3 expansion expansions Alligin Phase 2 NOAKA Mad Dog Clair Phase 3 and NCP follow-on North West water South West injection expansion UK infill drill
Slide 79: Gas investment options
Gas investment options Existing hub New hub UK and Norway Angola New Gas Consortium Infill drilling Exploration drilling Azerbaijan bpx energy Shah Deniz Infill drilling Eagle Ford infill compression Haynesville infill drilling and expansion Exploration drilling drilling Russia Trinidad & Tobago Kha
Slide 80: Reconciling strategic themes and reporting segments
Reconciling strategic themes and reporting segments Reporting segment Oil production & Customers & Gas & low carbon Rosneft Other businesses operations products energy1 & corporate Resilient Oil production Refining and products Gas production Rosneft hydrocarbons Bioenergy Gas marketing
Slide 81: Glossary
Glossary FY & 4Q 2021 financial results & update on strategic progress
Slide 82: Glossary
Glossary Adjusting items Include gains and losses on the sale of businesses and fixed assets, Cash balance Implied Brent oil price for the quarter that would cause the sum of operating impairments, environmental and other provisions, restructuring, integration point cash flow excluding Gulf of Mexic
Slide 83: Glossary
Glossary EBIDA / adjusted Underlying replacement cost profit before interest and tax*, add back Net debt Calculated as finance debt, as shown in the balance sheet, plus the fair value EBIDA depreciation, depletion and amortisation and exploration expenditure written- of associated derivative financi
Slide 84: Glossary
Glossary Net zero sales bp’s aim to reach net zero* for the greenhouse gas emissions associated Refining Represents Solomon Associates’ operational availability for bp-operated with the lifecycle (including end use) of its marketed and physically traded* availability refineries, which is defined as
Slide 85: Glossary
Glossary ROACE Defined as underlying replacement cost profit, which is defined as profit or Surplus cash flow Refers to the net surplus of sources of cash over uses of cash, after loss attributable to bp shareholders adjusted for inventory holding gains and reaching the $35 billion net debt target.
Slide 86: Glossary
Glossary Unit production Calculated as production cost divided by units of production. Production cost Working capital Movements in inventories and other current and non-current assets and costs does not include ad valorem and severance taxes. Units of production are liabilities as reported in the c