BP plc · LSE:BP.
BP — Shareholder Meeting (April 2006)
19 slides from BP's shareholder meeting presentation, Apr 20, 2006
Slide 1: Annual General Meeting Thursday 20th April 2006
Annual General Meeting Thursday 20th April 2006
Slide 2: Cautionary statement
Cautionary statement Forward-looking Statements This presentation and the associated slides and discussion contain forward looking statements, particularly those regarding BP’s asset portfolio and changes to it, acquisitions, capital expenditure, cash flow and cash generation, competitive position,
Slide 3: Lord Browne, Group Chief Executive
Lord Browne Group Chief Executive
Slide 4: Agenda
Agenda • Performance in 2005 • Strategy • Outlook • Highlights of what’s to come 4
Slide 5: 2005: a year of mixed fortunes
2005: a year of mixed fortunes • Texas City • War in the Middle East • Terrorism • Tsunami and hurricanes 5
Slide 6: 2005 results
2005 results • Record profit of $19bn • Record free cash flow of $25bn • Gearing below 17% • 100% reserves replacement • Divestment of Innovene for $8.3bn • Launch of BP Alternative Energy 6
Slide 7: Distributions to shareholders
Distributions to shareholders • Total distributions: $19bn − 50% higher than peer group average • Dividend paid: $7bn − 26% dividend per share increase from 2004 to 2005 • Share buybacks: $12bn 7
Slide 8: Crude oil prices
Crude oil prices Dated Brent $ per bbl 70 60 $54.52 50 40 $38.27 +42% 30 20 10 0 2000 2001 2002 2003 2004 2005 Daily prices Source: USGC Platts quotes 8
Slide 9: Strategy – Exploration & Production
Strategy – Exploration & Production Build leadership positions in the world’s most prolific basins Invest in the largest, lowest cost fields Manage decline of existing assets 9
Slide 10: Strategy - Refining & Marketing
Strategy - Refining & Marketing Invest in advantaged refineries Secure low-cost feedstocks Improve marketing margins 10
Slide 11: Low carbon power
Low carbon power Launched in November 2005 $8bn investment over 10 years 11
Slide 12: BP’s priorities
BP’s priorities Essentials • Safety & operational integrity • People: selection, development and motivation • Excellent operational execution Future • Lower carbon future • More impact from technology 12
Slide 13: BP’s priorities
BP’s priorities Objective: maximise sustainable free cash flow Financial • Cash costs growing below inflation • Capex $15bn in 2006, grow $0.5bn per year to 2008 • Divest around $3bn per year Outcomes • Grow production • Increase relative return on capital employed 13
Slide 14: Financial framework
Financial framework • Gearing band: 20 to 30% • Return all excess free cash to shareholders • Grow dividend per share 14
Slide 15: Shareholder distribution potential
Shareholder distribution potential $bn 70 $65bn 60 (Average oil 50 price $60/bbl) 40 Potential 30 2006-2008 20 10 0 Future shareholder distribution potential Assumptions-based potential 15
Slide 16: BTC – one of the world’s great engineering projects
BTC – one of the world’s great engineering projects
Slide 17: Making Texas City a model of performance and safety
Making Texas City a model of performance and safety
Slide 18: Tangguh – serving fast growing markets
Tangguh – serving fast growing markets
Slide 19: Peterhead – a potential world first in hydrogen power
Peterhead – a potential world first in hydrogen power North Sea Fields