BP plc · LSE:BP.

BP — Q3 2003 Earnings Presentation

17 slides from BP's earnings presentation, Oct 28, 2003

  1. Slide 1: Presentation to the financial community: 3Q results

    presentation to the financial community 3Q results tuesday 28th october 2003

  2. Slide 2: Forward Looking Statements Cautionary Statement

    Forward Looking Statements Cautionary Statement This presentation and the associated slides and discussion contain forward looking statements particularly those regarding BP’s asset portfolio and changes in it, capital expenditure, cash flow, costs, divestments, dividends, environmental remediation

  3. Slide 3: Agenda

    agenda ! group results ! strategic progress ! q&a

  4. Slide 4: Trading environment

    trading environment ytd 3Q 02 2Q 03 3Q 03 2003 2002 average realisations 24.40 24.90 26.79 liquids $/bbl 27.24 21.99 2.25 3.39 3.08 natural gas $/mcf 3.46 2.32 19.27 22.43 22.58 total hydrocarbons $/boe 23.88 18.17 indicator margins 1.98 3.27 4.59 refining $/bbl 4.13 1.90 120 134 109* petrochemicals

  5. Slide 5: Financial results

    financial results % change ! results for the third quarter vs 3Q02 ! proforma $ 2.9bn 25 ! replacement cost $ 2.1bn 180 ! historical cost $ 2.4bn (16) ! net cash from operating activity $ 4.9bn 12 ! dividend 6.50¢/share 8 ! ROACE (proforma) 15% ! results for the first 9 months vs ytd 02 ! proforma $

  6. Slide 6: TNK-BP

    TNK-BP impact on BP 3Q results (33 days) $m BP share of TNK-BP net income 114 deferred shares consideration accretion (9) impact on BP 3Q net income 105 production 249 mboed drivers of performance improvement vs. 1H ! higher volumes ! higher exports ! increased domestic market price

  7. Slide 7: Return on average capital employed

    return on average capital employed % 30 competitor range* 25 20 15 10 5 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2000 2001 2002 2003 *BP, XOM, Shell, CVX, TOT roace = (proforma result + after tax finance interest + MSI) / proforma ACE

  8. Slide 8: YTD 03 vs YTD 02 result

    ytd 03 vs ytd 02 result proforma basis* $bn post-tax inflation pensions & 12 medical 10 r&m 8 gas tax rate oil int. expense 6 performance 4 2 0 ytd 02 environment forex a&d dd&a other ytd 03 *a reconciliation to the nearest equivalent UK GAAP numbers is available on www.bp.com

  9. Slide 9: Special and exceptional items

    special and exceptional items $bn pre-tax 1.0 0.5 0 (0.5) 3Q 03 one off items $m exceptional special ordinary total 172 (351) (300) (1.0) of which environmental - (243) (255) remediation (1.5) provision (2.0) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2002 2003

  10. Slide 10: Sources and uses of cash

    sources and uses of cash $bn 25 ytd 02 ytd 03 disposals buybacks 20 dividends 15 acquisitions 10 operations operations organic capex 13.1* 18.2* 5 tax, interest & msi 0 sources uses sources uses *after discretionary pension contributions of nil in 2002 and $0.9bn in 2003

  11. Slide 11: Gearing

    gearing $bn 40 35 30 25 20 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1999 2000 2001 2002 2003 proforma gearing = net debt/(net debt + equity – acquisition adjustment)

  12. Slide 12: Production volumes

    production volumes ! 3Q reported production up over one and a half percent ! TNK-BP incremental production 208mboed in 3Q (249mboed less Sidanco 41mboed) ! divestment impact 179mboed in 3Q

  13. Slide 13: Exploration and production: indicators of strategic progress

    exploration and production: indicators of strategic progress ! build – projects on track ! Kapok field on line in july ! Xikomba / Na Kika preparing for start-up ! BTC pipeline on track for early 2005 start-up ! produce ! base decline in line with expectation ! lifting costs on track ! portfolio ! f

  14. Slide 14: Refining and marketing: indicators of strategic progress

    refining and marketing: indicators of strategic progress ! refining ! marketing ! improved refining availability ! continued like-for-like volume growth refining availability % ! differentiated fuel offer 98 96.5 96.7 95.8 95.8 96.1 96.2 96 95.1 94.2 ! costs 94 92.5 ! like-for-like unit 92 91.7 cash

  15. Slide 15: Indicators of strategic progress

    indicators of strategic progress gp&r ! first LNG deliveries to Bilbao and Cove Point ! 3Q restructuring to improve future solar competitiveness and profitability petrochemicals ! 3% capacity growth, all in core ! 3% lower CFC/te* since january *Cash Fixed Costs per tonne production

  16. Slide 16: Q&A session

    q&a session Byron Grote chief financial officer Fergus MacLeod investor relations

  17. Slide 17: Slide 17

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