BP plc · LSE:BP.
BP — Q3 2005 Earnings Presentation
16 slides from BP's earnings presentation, Oct 25, 2005
Slide 1: 3Q 2005 Results Webcast
3Q 2005 Results Webcast Tuesday 25th October 2005
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, capital expenditure, the coming on stream of a second PTA plant at Zhuhai, the completion of the sale of Innovene, the continua
Slide 3: Byron Grote, Chief Financial Officer
Byron Grote Chief financial officer
Slide 4: Trading environment
Trading environment $/bbl Oil realization $/mcf Gas realization 60 10 50 8 40 6 30 20 4 10 2 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2004 2005 2004 2005 $/bbl Refining indicator margin 14 change vs. 2004 12 Average realizations 3Q 9 months 10 8 Crude oil $/bbl 44% 40% 6 Natural gas $/mcf 30% 2
Slide 5: Financial results
Financial results change vs. 2004 Results for the third quarter $bn % % per share • Replacement cost profit 4.4 +16 +20 • Profit including inventory gains/losses 6.5 +34 +38 • Net cash provided by operating activities 6.4 +5 +9 ¢/ share • Dividend to be paid next quarter 8.925 +26 change vs. 2004 Re
Slide 6: Non-operating items (NOIs)
Non-operating items (NOIs) $bn 2005 post-tax $m 1Q 2Q 3Q 9 mths Non-operating items 787 (1,206) (1,255) (1,674) 1.0 Tax (245) 384 334 473 Total post-tax 542 (822) (921) (1,201) 0.5 0.0 (0.5) (1.0) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2004 2005 6
Slide 7: 9 months 05 vs 9 months 04 group result
9 months 05 vs 9 months 04 group result $bn Hurricanes post-tax Heavier maintenance 18 16 14 12 New fields 10 Supply optimization 8 6 4 2 0 9 months NOIs Price / A&D DD&A Other 9 months 04 Margin 05 7
Slide 8: Segment results
Segment results $bn E&P $bn R&M pre-tax* pre-tax* 7 7 6 6 5 5 4 4 3 3 2 2 1 1 0 0 3Q 04 3Q 05 3Q 04 3Q 05 NOIs included $(19)m $(147)m $(224)m $(154)m above • Strong price environment • Strong refining margins • Hurricanes • Weak retail margins • Increased seasonal maintenance • Refining availabilit
Slide 9: Segment results
Segment results $bn GP&R $bn OB&C pre-tax* pre-tax* excluding Innovene 0.4 0.4 0.2 0.2 0.0 0.0 (0.2) (0.2) (0.4) (0.4) (0.6) (0.6) 3Q 04 3Q 05 3Q 04 3Q 05 NOIs included $16m $95m $(338)m $(290)m above • Strong gas marketing • Environmental and other performance provisions (NOI) • Embedded derivative
Slide 10: Strategic progress
Strategic progress • New start-up: Kizomba B in Angola • New discoveries in Angola and Russia • Expansion of Wamsutter gas field in the US Kizomba • Second PTA plant in Zhuhai China • Refining and marketing joint venture in India • Innovene disposal agreed Wamsutter 10
Slide 11: Innovene
Innovene $bn post-tax 0.2 • Sale to INEOS for 0.0 $9 billion (0.2) • Net proceeds around (0.4) $8 billion (0.6) • Proceeds available for (0.8) distribution to shareholders (1.0) • Reclassified as an asset held for sale 3Q 04 3Q 05 NOIs included - $(592)m above • Weak petrochemicals margins • Impairm
Slide 12: Sources and uses of cash
Sources and uses of cash 9 months 04 9 months 05 $bn post tax 25 Disposals 20 Disposals Buybacks Buybacks 15 Operations Operations Dividends Dividends 18.2 22.5 10 Acquisitions Organic Organic 5 capex capex 0 Sources Uses Sources Uses 12
Slide 13: Pre-tax cash returns
Pre-tax cash returns % 45 40 35 30 25 20 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2004 2005 Pre-tax cash return = RCP before interest & tax – non-operating items + DD&A + interest and tax from equity accounted entities / average operating capital employed 13
Slide 14: Net debt ratio
Net debt ratio % 40 35 30 25 20 15 10 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2004 2005 Net debt ratio = net debt / (net debt + equity) 14
Slide 15: Shareholder distributions
Shareholder distributions $bn – full year $bn – 9 months 20 15.0 18 Buybacks 13.5 16 Dividends 12.0 14 Share issues 10.5 12 9.0 10 7.5 8 6.0 6 4.5 4 3.0 2 1.5 0 0.0 (2) (1.5) (4) (3.0) 2002 2003 2004 9 months 05 15
Slide 16: Q&A
Q&A Byron Grote Chief Financial Officer Fergus MacLeod Head of Investor Relations 16