BP plc · LSE:BP.
BP — Q2 2022 Earnings Presentation
32 slides from BP's earnings presentation, Aug 2, 2022
Slide 1: bp second quarter 2022 financial results
bp second quarter 2022 financial results 2 August 2022
Slide 2: SVP investor relations
svp investor relations 1Q 2022 financial results
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: Chief executive officer
Chief executive officer 1Q 2022 financial results
Slide 5: 2Q 2022 financial results: Performing while transforming
Performing while ay an finchanged financial frame $85 10% underlying earnings increase in dividend per ordinary share for 2022 = ~, 410.%bn £3.5bn operating cash flow* share buyback announced Ch BEIT — Advancing our-strategy at pace 20 2022 financial results’ | 5
Slide 6: Chief financial officer
Chief financial officer 1Q 2022 financial results
Slide 7: Macro environment
Macro environment Oil price1 $/bbl Natural gas price1 $/mmbtu Refining marker margin* 1 $/bbl Source: Platts - all data 1 July 2021 to 27 July 2022 (1) Spot price 2Q 2022 financial results 7
Slide 8: Underlying results
Underlying results $bn 2Q21 1Q22 2Q22 2Q 2022 vs 1Q 2022 * Underlying RCPBIT 4.7 10.2 12.8 Gas & low carbon energy 1.2 3.6 3.1 ▪ Strong realised refining margins Oil production & operations 2.2 4.7 5.9 Customers & products 0.8 2.2 4.0 Other businesses and corporate 1 0.4 (0.3) (0.2) ▪ Higher liquids
Slide 9: Cash flow and balance sheet
Cash flow and balance sheet 2Q22 highlights 1H22 cash inflows/outflows $bn ▪ $10.9bn operating cash flow* including: ▪ $2.9bn working capital*1 build – includes $1.2bn Gulf of Mexico oil spill payment ▪ $6.6bn surplus cash flow* ▪ $2.3bn share buyback executed ▪ $2.5bn programme announced with 1Q22
Slide 10: Maintaining our disciplined financial frame
Maintaining our disciplined 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 share schemes during 2022 2Q 2022 financial results 10
Slide 11: Chief executive officer
Chief executive officer 1Q 2022 financial results
Slide 12: Advancing our strategy at pace – growing EBITDA to 2030
Advancing our strategy at pace – growing EBITDA to 2030 All numbers represent 2030 EBITDA* aims, at $60/bbl Brent (2020, real) and bp planning assumptions 2Q 2022 financial results 12
Slide 13: Resilient hydrocarbons, convenience and mobility, low carbon energy
#4 Resilient hifdrocarbons = Oil and gas « Refining Se, » Bioenergy & #2 Convenience and pnobilitiy - Retail fuels » Castrol, aviation, B2B/midstream « Convenience &2 - EV charging oo | #3 low carbon energy = Renewables &@ - Hydrogen’ Integration 20 2022 financial results | 13
Slide 14: Oil and gas – a high-graded portfolio
Oil and gas – a high-graded portfolio Remaining highly price leveraged Focused on growth from six Driving >20% margin expansion as production declines material regions in unit EBITDA Oil & gas EBITDA*1,2,3 $bn Oil & gas EBITDA*1,3 $bn Production1,3 % Price upside >$45/boe Other resilient hydrocarbon
Slide 15: Oil and gas – progress in high-grading our portfolio
Oil and gas – progress in high-grading our portfolio High-grading Access in Egypt position in Canada Awarded 100% working • Agreed to divest 50% interest in offshore interest in Sunrise exploration block oil sands asset Azule Energy begins Growing investment and • Agreed to acquire 35% operations Di
Slide 16: Integration
Integration 2Q 2022 financial results 16
Slide 17: EV charging – aim to deliver ~$2bn EBITDA by 2030
EV charging – aim to deliver ~$2bn EBITDA by 2030 Leveraging our Charge points*: >50% growth to 2025 already announced global scale 000’s Global network and infrastructure Convenience and loyalty offers Established global strategic relationships Trading and shipping (1) Reported to the nearest 50 2Q
Slide 18: Low carbon energy
#3 low carbon ener gy » Hydrogen’ && 20 2022 financial results 18
Slide 19: Hydrogen – building global leadership in low carbon hydrogen
Hydrogen – building global leadership in low carbon hydrogen Our progress Asian Renewable Energy Hub (AREH) Global scale, cost advantaged solar, wind & hydrogen Decarbonising Refineries own demand >1mtpa Building global hydrogen hopper scale (risked) Capturing customer >2.5mtpa demand identified Glo
Slide 20: Performing while transforming
Performing while transforfning Strengthening bp Advancing our Growing shareholder strategy at pace distributions 20 2022 financial resul Its’ | 20
Slide 21: 2Q 2022 financial results
2Q 2022 financial results 21
Slide 22: 2Q 2022 financial results
2Q 2022 financial results 22
Slide 23: Guidance
Guidance Full year 2022 3Q22 vs 2Q22 Capital expenditure* $14-15bn ▪ Looking ahead, we expect third-quarter 2022 upstream production on a DD&A Similar level to 2021 reported basis to be broadly flat compared with the second-quarter 2022, with improved base performance offset by planned maintenance a
Slide 24: Gas and low carbon energy
Gas and low carbon energy 2Q21 1Q22 2Q22 Underlying RCPBIT* $bn Production volume Liquids (mbd) 109 121 112 Natural gas (mmcfd) 4,440 4,897 4,709 Total hydrocarbons (mboed) 875 966 924 Average realisations* Liquids ($/bbl) 61.69 86.09 105.50 Natural gas ($/mcf) 4.14 7.88 8.42 Total hydrocarbons ($/b
Slide 25: Gas and low carbon energy
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 ▪ Developed and pipeline 0.9GW higher than 1Q22, driven by increase in Lightsource bp pipeline ▪ 53 projects developed to FID* by Lightsource
Slide 26: Oil production and operations
Oil production and operations 2Q21 1Q22 2Q22 Underlying RCPBIT* $bn Production volume1 Liquids (mbd) 938 948 935 Natural gas (mmcfd) 1,786 1,964 1,964 Total hydrocarbons (mboed) 1,245 1,286 1,274 Average realisations* Liquids ($/bbl) 60.55 83.47 100.34 Natural gas ($/mcf) 3.90 9.40 7.97 Total hydroc
Slide 27: Customers and products
Customers and products 2Q21 1Q22 2Q22 Underlying RCPBIT* $bn Customers – convenience & mobility Customers – convenience & mobility 1.3 0.8 1.0 adjusted EBITDA* Castrol1 adjusted EBITDA* 0.3 0.3 0.3 Capital expenditure* 0.3 0.3 0.3 bp retail sites* – total2 20,300 20,550 20,600 bp retail sites in gro
Slide 28: 2Q 2022 financial results
2Q 2022 financial results 28
Slide 29: Glossary – definitions
Glossary – definitions Adjusting items Include gains and losses on the sale of businesses and fixed assets, EBITDA / RC profit before interest and tax, excluding net adjusting items*, adding back impairments, environmental and other provisions, restructuring, integration adjusted EBITDA depreciation
Slide 30: Glossary – definitions
Glossary – definitions Net debt Calculated as finance debt, as shown in the balance sheet, plus the fair value Renewables Renewable projects satisfying the following criteria until the point they can of associated derivative financial instruments that are used to hedge foreign pipeline be considered
Slide 31: Glossary – definitions
Glossary – definitions Surplus cash flow Refers to the net surplus of sources of cash over uses of cash, after reaching Underlying Underlying RC profit or loss before interest and tax for the operating the $35 billion net debt target. Sources of cash include net cash provided by replacement cost seg
Slide 32: Glossary - abbreviations
Glossary - abbreviations Barrel (bbl) 159 litres, 42 US gallons. boe Barrels of oil equivalent. GW Gigawatt. mbd Thousand barrels per day. mboed Thousand barrels of oil equivalent per day. mmbtu Million British thermal units. mtpa Million tonnes per annum. RC Replacement cost. SAF Sustainable aviati