Slide 1: bp third quarter 2021 financial results presentation
bp third quarter 2021 Financial results presentation 2 November 2021 1
Slide 2: Welcome to bp's third quarter 2021 results presentation
svp investor relations 3Q 2021 financial results Good morning everyone and welcome to bp’s third quarter 2021 results presentation. I’m here today with Bernard Looney, chief executive officer and Murray Auchincloss, chief financial officer. Before we begin today, let me draw your attention to our ca
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: CEO introduction to results and agenda
Chief executive officer 3Q 2021 financial results Thanks Craig, And welcome everyone - it is great to have you join us. I’m going to start with a summary of our results before Murray takes you through the detail. I’ll then share some operational and strategic highlights and we will then take your qu
Slide 5: Another quarter of strong strategic delivery and underlying financial progress
Strong underlying results and cash Delivering on commitment flow underpins continued to distributions net debt* reduction underlying replacement cost profit* per ordinary share for 3Q21 operating cash flow* including buyback executed from $1.8bn working capital* build1 1H21 surplus cash flow* 2 net
Slide 6: Plans to buy back $1.25 billion of shares
cash flow; and − Have today announced plans to buyback $1.25 billion of shares, which we expect to complete by the time of our fourth quarter results. We have also seen continued momentum across each of our strategic focus areas. I’ll come back to talk about these and other highlights later in the p
Slide 7: Chief financial officer
Chief financial officer 3Q 2021 financial results 6
Slide 8: Environment
Environment Oil price1 $/bbl Natural gas price1 $/mmbtu Refining marker margin* 1 $/bbl Brent Henry Hub JKM NBP RMM* Source: Platts - all data 1 January 2021 to 29 October 2021 (1) Spot price 3Q 2021 financial results Thanks Bernard. Let’s begin with macro environment. Oil prices have continued to i
Slide 9: Refining marker margin and fourth quarter outlook
RMM rose by 11% to $15.20 per barrel. This was mainly due to seasonal demand rebound. Realised margins also benefitted from wider North American heavy crude oil differentials. In the fourth quarter, industry refining margins are expected to be lower compared to the third quarter driven by seasonal d
Slide 10: 3Q21 underlying results summary
3Q21 underlying results summary $bn 3Q20 2Q21 3Q21 Underlying RCPBIT * 1.2 4.7 5.9 3Q 2021 vs 2Q 2021 Gas & low carbon energy 0.5 1.2 1.8 Oil production & operations 0.4 2.2 2.5 ▪ Higher oil and gas realisations* Customers & products 0.6 0.8 1.2 Rosneft * (0.2) 0.7 0.9 ▪ Higher refining availability
Slide 11: Customers and products results and dividend announcement
was supported by higher retail and aviation volumes, strong convenience and fuel margin management, offset by higher wage costs and increased digital and marketing investment. For the third quarter, bp has announced a dividend of 5.46 cents per ordinary share, payable in the fourth quarter. 8
Slide 12: Cash flow and balance sheet
Cash flow and balance sheet 3Q21 highlights 9M21 cash inflows/outflows $bn $6.0bn operating cash flow* including ▪ $1.8bn working capital*1 build $300m disposal proceeds* ▪ $5.4bn YTD with $6-7bn expected by end-21 $900m surplus cash flow* $1.4bn buyback from 1H21 surplus cash flow* completed ▪ $900
Slide 13: Financial frame – a clear hierarchy of priorities
Financial frame – a clear hierarchy of priorities 5.46¢ 40% ~$ 13bn 60% per ordinary share for 3Q21 2021 surplus cash flow* 2021 capital expenditure* 2021 surplus cash flow*1 Announced plan to execute $1.25bn prior to 4Q21 results Capacity for annual increase of the Plan to allocate 40% 2021 2022-20
Slide 14: Hand back to CEO
with our proposition to shareholders. Thank you very much for listening. Bernard, back to you. 10
Slide 15: Chief executive officer
Chief executive officer 3Q 2021 financial results 11
Slide 16: Operational and strategic highlights: hydrocarbons
Achieved target of 900 thousand barrels per day of new major project* production by 2021 ▪ 34 major projects* delivered in six years ▪ On average ~15% under budget Building resilience in our portfolio ▪ 3Q21 upstream plant reliability* 95.4% ▪ 3Q21 refining availability* 95.6% ▪ Permian methane flar
Slide 17: High-margin major projects and operating model
budget. Why is this so important? First, these high margin barrels will help drive EBITDA growth as we high-grade our portfolio. And there is more to come. In 2022 we plan to start-up the high-margin Mad Dog Phase 2 project in the Gulf of Mexico – further expanding our footprint in one of our core r
Slide 18: Convenience and mobility progress
Redefining convenience ▪ Record YTD convenience gross margin* ▪ Increased basket value1 Advancing next-gen mobility ▪ Continued roll-out of rapid and ultra-fast charging points ▪ 45% increase in electron sales versus 2Q21 Expanding in growth markets ▪ Jio-bp opens first branded site in India ▪ Recor
Slide 19: Expanding in growth markets: Jio-bp and China
And finally, we continue to expand in growth markets. In the last few weeks, Jio-bp – our Indian fuels and mobility joint venture with Reliance – opened their first ’mobility station’, providing a fully integrated customer offer; including: - High-quality fuels; - EV charging points; - Tailored conv
Slide 20: Low carbon: renewables, hydrogen and CCUS
Increasing confidence in 2025 target of 20GW developed renewables to FID* ▪ 3Q21 pipeline of 23GW ▪ Lightsource bp increases its target to 25GW developed by 2025 Building foundations to deliver hydrogen and CCUS strategy ▪ Developing an integrated hydrogen energy system with Aberdeen City Council ▪
Slide 21: Strategic partnership with Masdar and ADNOC
And we are in action elsewhere. In September we announced a strategic partnership with Masdar and ADNOC in the UAE where bp has a substantial business and a long- standing relationship. Together we plan to develop a range of low carbon energy projects for the UK and the UAE with a particular focus o
Slide 22: Investor proposition
Investor proposition Committed Resilient dividend distributions ≥60% surplus cash as share buybacks1 Delivering 7-9% adjusted Profitable EBIDA* per share CAGR* growth Growing shareholder value ROACE to 12-14%2 >20% capital Sustainable employed in transition3 value (1) At least 60% of surplus cash as
Slide 23: 3Q 2021 financial results
3Q 2021 financial results
Slide 24: 3Q 2021 financial results
3Q 2021 financial results
Slide 25: Guidance
Guidance Full year 2021 4Q21 vs 3Q21 Capital expenditure* ~$13bn DD&A Similar level to 2020 ▪ Looking ahead, we expect fourth quarter reported upstream production to be higher than the third quarter reflecting major Divestment and other $6-7bn project* ramp-up, mainly in gas regions, recovery from s
Slide 26: Gas and low carbon energy
Gas and low carbon energy 3Q20 2Q21 3Q21 Underlying RCPBIT* $bn Production volume Liquids (mbd) 92 109 109 Natural gas (mmcfd) 4,343 4,440 4,520 Total hydrocarbons (mboed) 841 875 889 Average realisations* Liquids ($/bbl) 37.77 61.69 66.39 Natural gas ($/mcf) 2.99 4.14 5.26 Total hydrocarbons ($/boe
Slide 27: Gas and low carbon energy: renewables pipeline
Gas and low carbon energy Building scale and capability with capital discipline and a returns focus Developed renewables to FID* and Renewables pipeline* Renewables hopper* renewables pipeline* bp net, GW by technology bp net bp net active projects ▪ Developed and pipeline 2GW higher than 2Q21, driv
Slide 28: Oil production and operations
Oil production and operations 3Q20 2Q21 3Q21 Underlying RCPBIT* $bn Production volume1 Liquids (mbd) 1,037 938 975 Natural gas (mmcfd) 2,115 1,786 1,961 Total hydrocarbons (mboed) 1,402 1,245 1,313 Average realisations* Liquids ($/bbl) 38.21 60.55 65.53 Natural gas ($/mcf) 1.42 3.90 5.61 Total hydro
Slide 29: Customers and products
Customers and products 3Q20 2Q21 3Q21 Underlying RCPBIT* $bn Customers – convenience & mobility Customers – convenience & mobility 1.4 1.3 1.1 adjusted EBITDA* Castrol1 adjusted EBITDA* 0.4 0.3 0.3 Capital expenditure* 1.3 0.3 0.3 bp retail sites* – total2 20,550 20,300 20,350 bp retail sites in gro
Slide 30: Rosneft
Rosneft bp share of underlying net income* $bn bp share of Rosneft dividend* $bn 3Q20 2Q21 3Q21 bp share of production volume Liquids (mbd) 858 858 876 Natural gas (mmcfd) 1,260 1,374 1,418 Total hydrocarbons (mboed) 1,075 1,095 1,120 3Q 2021 financial results
Slide 31: 3Q 2021 financial results
3Q 2021 financial results
Slide 32: Glossary
Glossary Adjusted Underlying replacement cost profit before interest and tax*, add back Capital Total cash capital expenditure as stated in the condensed group cash flow EBIDA/EBIDA depreciation, depletion and amortisation and exploration expenditure written- expenditure statement. Capital expenditu
Slide 33: Glossary
Glossary Installed bp's share of capacity for operating assets owned by entities where bp has Refining Represents Solomon Associates’ operational availability for bp-operated renewables an equity share. availability refineries, which is defined as the percentage of the year that a unit is capacity a
Slide 34: Glossary
Glossary Strategic Retail sites, within the bp portfolio, which both sell bp branded fuel and carry Underlying Replacement cost profit or loss* after excluding net adjusting items* and convenience sites one of the strategic convenience brands (e.g. M&S, Rewe to Go). To be replacement cost related ta