BP plc · LSE:BP.
BP — FY2009 Earnings Presentation
21 slides from BP's earnings presentation, Feb 2, 2010
Slide 1: BP 4Q 2009 and Full Year Results
BP 4Q 2009 and Full Year Results 2nd February 2010
Slide 2: Fergus MacLeod, Head of Investor Relations
Fergus MacLeod Head of Investor Relations
Slide 3: Cautionary Statement
Cautionary Statement Forward Looking Statements - Cautionary Statement This presentation and the associated slides and discussion contain forward looking statements, particularly those regarding production growth and future production; oil and gas markets; cash costs; capital expenditure and capital
Slide 4: Tony Hayward, Group Chief Executive
Tony Hayward Group Chief Executive
Slide 5: 2009: Financial results
2009: Financial results • Replacement cost profit $14.0 bn • Post-tax operating cash flow $27.7 bn • Organic capex* of $20.0 bn • Divestments of $2.7 bn • Dividend − 56 cents per share − $10.5 bn • Gearing at 20%, bottom of target range * Capital expenditure excluding acquisitions and asset exchange
Slide 6: 2009 delivery
2009 delivery 2009 initial guidance FY 09 Production* Growth +4% Refining availability* Higher +5% Cash cost reduction* Around $2bn More than $4bn Divestments Around $2-3bn $2.7bn Capex** $20-22bn $20.0bn * Change versus 2008 ** Capital expenditure excluding acquisitions and asset exchanges 6
Slide 7: Strategic delivery: Upstream growth
Strategic delivery Upstream growth • New access for future growth − Iraq: Rumaila − Indonesia: Sanga-Sanga Coalbed Methane and West Papua − Jordan: Risha − Gulf of Mexico and Egypt: new acreage • Continued exploration and appraisal success − Gulf of Mexico: Tiber (giant discovery), Mad Dog South − A
Slide 8: Strategic delivery: Downstream turnaround
Strategic delivery Downstream turnaround • Safe and reliable operations − Operating Management System (OMS) implemented at all major sites • Behaviours and core processes − Business service centres established • Restoring missing revenues − Refining availability re-established • Business simplificat
Slide 9: Strategic delivery: Corporate efficiency
Strategic delivery Corporate efficiency • Alternative Energy − Focused and disciplined • Restructuring and delayering − Around 7500* reduction in BP non-retail staff − More than 1500 reduction in permanent contractors − Senior executive roles reduced from 650 to fewer than 500 • Organization − Deepe
Slide 10: Byron Grote, Chief Financial Officer
Byron Grote Chief Financial Officer
Slide 11: Trading environment
Trading environment $/bbl Liquids realization $/mcf Gas realization 120 20 100 16 80 12 60 40 8 20 4 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2008 2009 2008 2009 $/bbl Refining indicator margin 12 Change vs 2008 Average realizations 4Q FY 9 Liquids $/bbl 31% (38)% 6 Natural gas $/mcf (28)
Slide 12: Financial highlights
Financial highlights All earnings figures are adjusted for non-operating items and fair value accounting effects ($bn) 4Q08 4Q09 Replacement cost profit before interest and tax 4Q09 vs 4Q08 ($bn) Exploration & Production 4.3 7.1 10 Refining & Marketing 0.6 0.0 9 Other businesses & corporate (0.4) (0
Slide 13: Exploration & Production
Exploration & Production Pre-tax replacement cost profit Production growth Y-o-Y Adjusted for non-operating items and fair value accounting effects (4 quarter rolling average) Average hydrocarbon ($bn) realizations ($/boe) % 8 50 5 6 40 4 4 30 3 2 20 2 0 10 1 (2) 0 4Q08 1Q09 2Q09 3Q09 4Q09 4Q08 1Q09
Slide 14: Refining & Marketing
Refining & Marketing Pre-tax replacement cost profit Refining availability Adjusted for non-operating items and fair value accounting effects Refining indicator Solomon ($bn) margin ($/bbl) availability (%) 2.0 12 96 10 1.5 8 92 1.0 6 4 0.5 88 2 0 0 84 (0.5) (1.0) 80 4Q08 1Q09 2Q09 3Q09 4Q09 4Q08 1Q
Slide 15: Other businesses & corporate
Other businesses & corporate Pre-tax replacement cost profit Adjusted for non-operating items and fair value accounting effects ($bn) 0.2 • Favourable foreign exchange impact 0.0 • Lower costs (0.2) • Weaker margin environment for Shipping and Solar (0.4) (0.6) (0.8) 4Q08 1Q09 2Q09 3Q09 4Q09 15
Slide 16: Sources & uses of cash
Sources & uses of cash $bn post tax 2008 2009 45 40 Disposals Buybacks 35 30 Disposals 25 Capex Capex 20 Operations 15 Operations 10 5 Dividends Dividends 0 Sources Uses Sources Uses 16
Slide 17: Net debt ratio
Net debt ratio % 40 35 30 25 20 15 10 2001 2002 2003 2004 2005 2006 2007 2008 2009 Net debt ratio = net debt / (net debt + equity) Net debt includes the fair value of associated derivative financial instruments used to hedge finance debt 17
Slide 18: 2010 Outlook
2010 Outlook 2009 Delivery 2010 Guidance Production 4% growth Slightly lower Cash costs (year-on-year change) More than $4bn lower Further reduction* Organic capital expenditure $20bn ~ $20bn Divestment proceeds $2.7bn $2 - 3bn OB&C: average quarterly charge ~ $450m ~ $400m (excl. NOI’s) Full year e
Slide 19: Tony Hayward, Group Chief Executive
Tony Hayward Group Chief Executive
Slide 20: BP strategy
BP strategy • Upstream profit growth, cost and capital efficiency • Downstream turnaround, cost efficiency • Alternative Energy; focused and disciplined • Corporate efficiency 20
Slide 21: Q&A
Q&A Tony Hayward Byron Grote Group Chief Executive Chief Financial Officer Andy Inglis Iain Conn Chief Executive Chief Executive Exploration & Production Refining & Marketing Fergus MacLeod Head of Investor Relations 21