Bp Plc · LSE:BP.
Bp — Q3 2022 Earnings Presentation
28 slides from Bp's earnings presentation, Nov 1, 2022
Slide 1: bp third quarter 2022 financial results
bp third quarter 2022 financial results 1 November 2022
Slide 2: Welcome and introductions
svp investor relations 1Q 2022 financial results Good morning everyone and welcome to bp’s third quarter 2022 results presentation. I’m Craig Marshall, bp’s head of bp investor relations and I am here today with Murray Auchincloss, our chief financial officer. Before we begin today, let me draw your
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: CFO opening remarks and Toledo refinery incident
Chief financial officer 1Q 2022 financial results Thanks Craig. Good morning everyone. We are here today to report on another quarter of financial and strategic delivery. But first I want to take a moment to acknowledge the tragic incident at the Toledo refinery where two of our employees sadly lost
Slide 5: Performing while transforming
Performing while transforming Strengthening bp Within a disciplined While accelerating our financial frame transformation to an IEC $8.2bn $22.0bn Agreed acquisition of Archaea Energy 3Q22 underlying earnings 3Q22 net debt * Agreement with Hertz advancing $8.3bn $2.5bn EV growth strategy 3Q22 operat
Slide 6: Macro environment
Macro environment $/mmbtu Natural gas price1,2 $/bbl Brent oil price1,2 TTF Henry Hub TTF forward prices3 Refining marker margin* 1,2 30 Sept 22 30 June 22 31 Dec 21 (1) Source: Platts – data 1 October 2021 to 28 October 2022 (2) Spot price (3) Settlement prices published by ICE 3Q 2022 financial re
Slide 7: Underlying results
Underlying results $bn 3Q21 2Q22 3Q22 3Q 2022 vs 2Q 2022 Underlying RCPBIT * 5.9 12.8 13.8 Gas & low carbon energy 1.8 3.1 6.2 ▪ Lower refining margins Oil production & operations 2.5 5.9 5.2 Customers & products 1.2 4.0 2.7 Other businesses and corporate 1 0.6 (0.2) (0.4) ▪ Average oil trading perf
Slide 8: Customers and products result commentary
– In customers and products, the products result reflects lower realised refining margins, and oil trading returning to an average contribution compared to an exceptional result in the second quarter. – The customers result benefitted from an improved retail, midstream and B2B, and aviation performa
Slide 9: Cash flow and balance sheet
Cash flow and balance sheet 3Q22 highlights 9M22 cash inflows/outflows $bn ▪ $8.3bn operating cash flow* including ▪ $6.2bn working capital*1 build ▪ $3.5bn surplus cash flow* ▪ $2.9bn share buyback executed ▪ $3.5bn programme announced with 2Q22 results completed on 27 October ▪ Net debt* reduced t
Slide 10: Maintaining our disciplined financial frame
Maintaining our disciplined financial frame 6.006¢ 40% ~$15.5bn 60% per ordinary share for 3Q22 2022 surplus cash flow* 2022 capital expenditure*1 2022 surplus cash flow*2,3 Capacity for annual increase of the Intend to allocate 40% 2022 2023-2025: $14-16bn Commitment to allocate ≥60% dividend per o
Slide 11: Share buyback considerations
In setting the buyback, the board will continue to take into account factors including the cumulative level of and outlook for surplus cash flow. 9
Slide 12: Momentum in our transformation to an IEC
Momentum in our transformation to an IEC Denotes transition growth engine Resilient hydrocarbons Convenience and mobility Low carbon energy High-grading position in Canada Completed Sunrise oil sands EDF Energy Services acquisition1 divestment and acquisition of 35% H2Teesside and Net Zero Teesside
Slide 13: Transition growth engines progress
and convenience transition growth engines. – In North America we are advancing our fleet strategy, announcing plans to collaborate with Hertz to install a network of EV charging solutions for Hertz and its customers powered by bp pulse. – Hertz is investing to create the largest electric rental flee
Slide 14: Summary: Strengthening bp, financial frame, transformation
Strengthening bp Disciplined financial Accelerating our frame transformation to an IEC 3Q 2022 financial results 11 To summarise, today’s results show that bp is performing while transforming. – We are strengthening the company; – We are delivering on our disciplined financial frame – underpinning o
Slide 15: 3Q 2022 financial results
3Q 2022 financial results 13
Slide 16: Guidance
Guidance Full year 2022 4Q22 vs 3Q22 Capital expenditure* ~$15.5bn if Archaea Energy acquisition completes We expect fourth quarter 2022 upstream production on a reported basis to be before year-end 2022 slightly lower compared with the third quarter 2022, primarily in our gas regions. DD&A Simila
Slide 17: Gas and low carbon energy
Gas and low carbon energy 3Q21 2Q22 3Q22 Underlying RCPBIT* $bn Production volume Liquids (mbd) 109 112 117 Natural gas (mmcfd) 4,520 4,709 5,011 Total hydrocarbons* (mboed) 889 924 981 Average realisations* Liquids ($/bbl) 66.39 105.50 88.03 Natural gas ($/mcf) 5.26 8.42 9.85 Total hydrocarbons* ($
Slide 18: Gas and low carbon energy: renewables pipeline
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 active projects ▪ Developed to FID and pipeline 1.4GW higher than 2Q22, driven by increase in solar pipeline ▪ 56 projects developed to FID s
Slide 19: Oil production and operations
Oil production and operations 3Q21 2Q22 3Q22 Underlying RCPBIT* $bn Production volume Liquids (mbd) 975 935 959 Natural gas (mmcfd) 1,961 1,964 2,075 Total hydrocarbons* (mboed) 1,313 1,274 1,317 Average realisations* Liquids ($/bbl) 65.53 100.34 93.14 Natural gas ($/mcf) 5.61 7.97 11.73 Total hydro
Slide 20: Customers and products
Customers and products 3Q21 2Q22 3Q22 Underlying RCPBIT* $bn Customers – convenience & mobility Customers – convenience & mobility 1.1 1.0 1.4 adjusted EBITDA* Castrol1 adjusted EBITDA* 0.3 0.3 0.2 Capital expenditure* 0.3 0.3 0.4 bp retail sites* – total2 20,350 20,600 20,550 bp retail sites in gro
Slide 21: bp and Archaea Energy – a compelling combination
bp and Archaea Energy – a compelling combination accelerating adding remaining growth Rateable EBITDA* growth from acquisition + distinctive value Complements bp’s established global biogas business + disciplined Remain committed to disciplined financial framework >$500m ~$1bn Experienced management
Slide 22: Strategic progress – transforming in 2022
Strategic progress – transforming in 2022 Denotes transition growth engine Agreed acquisition of Archaea Energy1 Renewables pipeline growth Strategic partnership with Iberdrola Accelerating growth and realising distinctive value in biogas YTD grows 3.8GW to a total of 26.9GW Deploying up to 11,000 f
Slide 23: 3Q 2022 financial results
3Q 2022 financial results 21
Slide 24: 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 25: Glossary – definitions
Glossary – definitions Net zero References to net zero for bp in the context of our ambition and aims 1, 2 and Realisations Result of dividing revenue generated from hydrocarbon sales, excluding 3 mean achieving a balance between (a) the relevant Scope 1 and 2 revenue generated from purchases made f
Slide 26: Glossary – definitions
Glossary – definitions Retail sites Include sites operated by dealers, jobbers, franchisees or brand licensees or Technical service An arrangement through which an oil and gas company bears the risks and joint venture (JV) partners, under the bp brand. These may move to and from contract (TSC) costs
Slide 27: Glossary – definitions
Glossary – definitions Working capital Movements in inventories and other current and non-current assets and liabilities as reported in the condensed group cash flow statement. Change in working capital adjusted for inventory holding gains/losses and fair value accounting effects relating to subsidi
Slide 28: Glossary - abbreviations
Glossary - abbreviations Barrel (bbl) 159 litres, 42 US gallons. MW Megawatt. CCS Carbon, capture and storage. mmbtu Million British thermal units. CCUS Carbon, capture, usage and storage. mtpa Million tonnes per annum. DD&A Depreciation, depletion and amortisation. OB&C Other businesses and corpora