BP plc · LSE:BP.
BP — Q3 2007 Earnings Presentation
14 slides from BP's earnings presentation, Oct 23, 2007
Slide 1: 3Q 2007 Results Webcast
3Q 2007 Results Webcast Tuesday 23 October 2007
Slide 2: Cautionary statement
Cautionary statement Forward-Looking Statements Cautionary Statement This presentation and the associated slides and discussion contain forward-looking statements, particularly those regarding annual charges, oil and gas production, refinery production and capacity and shareholder distributions. By
Slide 3: Trading environment
Trading environment $/bbl Liquids realisation $/mcf Gas realisation 70 12 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 2006 2007 2006 2007 $/bbl Refining indicator margin Change vs. 2006 18 16 3Q 9 mths 14 Average realisations 12 10 Liquids $/bbl 11% 2% 8 Natural gas $/
Slide 4: Financial results
Financial results Change vs. 3Q 2006 Results for the third quarter $bn % % per share • Replacement cost profit 3.9 (45) (42) • Profit including inventory gains/losses 4.4 (29) (26) • Net cash provided by operating activities 6.4 24 27 ¢/ share • Dividend to be paid next quarter 10.825 +10 % Change v
Slide 5: Exploration & Production
Exploration & Production $bn pre-tax 12 • Higher liquids realizations 10 • Lower gas realizations 8 • Lower production 6 • Higher costs 4 • Absence of disposal gains in equity-accounted 2 entities 0 3Q 06 NOI Underlying 3Q 07 7,469 Underlying result $m 6,321 2,466 Non-operating items $m 22 9,935 Tot
Slide 6: Refining & Marketing
Refining & Marketing $bn pre-tax 1.8 • Lower refining margins 1.6 1.4 • Operational issues 1.2 (Whiting) 1.0 • Greater integrity and repair 0.8 spend 0.6 • Adverse fair value 0.4 accounting effects 0.2 • Non-operating Items (NOI) 0.0 3Q 06 NOI Underlying 3Q 07 − Provisions 1,934 Underlying result $m
Slide 7: Gas, Power & Renewables
Gas, Power & Renewables $bn pre-tax 0.3 • Lower marketing and trading contribution 0.2 • Lower NGL volumes • Higher Alternative Energy 0.1 spend • Higher NGL margins 0.0 -0.1 3Q 06 NOI Underlying 3Q 07 237 Underlying result $m (49) (85) Non-operating items $m (8) 152 Total result $m (57) 7
Slide 8: Other Business & Corporate
Other Business & Corporate $bn pre-tax 0.00 • Expected annual charge of (0.10) $900m±$200m (0.20) (0.30) (0.40) (0.50) (0.60) 3Q 06 NOI Underlying 3Q 07 (339) Underlying result $m (246) 78 Non-operating items $m (205) (261) Total result $m (451) 8
Slide 9: Sources and uses of cash
Sources and uses of cash $bn post tax 9 months 06 9 months 07 35 30 25 Disposals Buybacks Disposals Buybacks 20 Dividends 15 Operations Dividends Operations Acquisitions 23.2 Acquisitions 10 20.4 Organic 5 Organic capex capex 0 Sources Uses Sources Uses 9
Slide 10: Net debt ratio
Net debt ratio % 40 35 30 25 20 15 10 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2006 2007 Net debt ratio = net debt / (net debt + equity) 10
Slide 11: Shareholder distributions
Shareholder distributions $bn $bn Full year 9 months 24 18 21 16 18 14 12 15 Buybacks 10 12 Dividends 8 Share issues 9 6 6 4 3 2 0 0 (3) (2) 2002 2003 2004 2005 2006 YTD 2007 11
Slide 12: Strategic progress: restoring revenues
Strategic progress: restoring revenues • Exploration & Production − Greater Plutonio start up − Atlantis commissioning underway • Refining & Marketing − Texas City: production capacity of 400 mb/d by end of 2007* − Whiting: production capacity of 300 mb/d by end of 2007* sour crude processing by end
Slide 13: Strategic progress: reducing complexity
Strategic progress: reducing complexity • Organisational simplification − Three business segments into two: E&P and R&M − Separate Alternative Energy division − Smaller corporate infrastructure − Fewer layers of management • Resources shifted to the front line • Continuous improvement 13
Slide 14: Q&A
Q&A Byron Grote Chief Financial Officer Fergus MacLeod Head of Investor Relations 14