BP plc · LSE:BP.
BP — Q3 2006 Earnings Presentation
14 slides from BP's earnings presentation, Oct 24, 2006
Slide 1: 3Q 2006 update
3Q 2006 update 24th October 2006 John Browne Group Chief Executive
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 capital expenditure, cash generation and cash returns, cost inflation, decline in production, dividends, sh
Slide 3: 3Q'06: Financial highlights
3Q’06: Financial highlights • Replacement cost profit of $7.0bn up 58% • Replacement cost profit per share 35¢ up 67% • Effective tax rate 40%, compared to 34% a year ago • Quarterly dividend per share 9.825¢ up 10% y-o-y • Divestment proceeds of $5.4bn year to date • Share buybacks of $12.2bn by th
Slide 4: 3Q'06: Milestones
3Q’06: Milestones • Continuing improvement in the frequency rate of days away from work cases and number of oil spills • Decision to invest $3bn at Whiting Refinery to process Canadian heavy oil • Acquisition of wind power company, Greenlight Energy Inc. • Funding of Cashima in Trinidad and LNG trai
Slide 5: Crude oil prices
Crude oil prices Dated Brent $ per bbl 80 3Q ‘06 Ave $70 70 3Q ‘05 Ave +13% 60 $62 50 40 30 20 10 0 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Daily prices Source: USGC Platts quotes 5
Slide 6: US gas prices
US gas prices US Henry Hub $ per mmbtu 20 18 16 14 12 3Q ’05 Ave 10 $8.50 8 -22% 6 3Q ’06 Ave 4 $6.60 2 0 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Daily prices and monthly average for the quarter Source: USGC Platts quotes 6
Slide 7: UK gas prices
UK gas prices NBP Day Ahead $ per mmbtu 35 30 25 20 15 3Q ‘06 Ave 10 $6.30 +21% 5 3Q ‘05 Ave 0 $5.20 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Daily prices Source: Platts quotes 7
Slide 8: Refining margins
Refining margins $ per bbl 30 25 20 3Q ’05 Ave 15 $12.10 10 -31% 3Q ’06 Ave 5 $8.40 0 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Daily prices BP Global Indicator Margin (GIM) 8
Slide 9: Exploration & Production
Exploration & Production • 3Q production 3.816 million boe/d • All flow stations in Prudhoe Bay Eastern Operating Area are on line • All transit lines in Prudhoe Bay to be replaced in ‘07 • Thunder Horse start up estimated in 2H ‘08 • Atlantis expected start up unchanged (in mid ’07) • ’06 productio
Slide 10: Refining & Marketing
Refining & Marketing • Texas City − Phased re-commissioning continues − 3Q throughput 247 thousand bbl/d − Full production by end ’07 − 3Q ’06 loss $200 million pre-tax 10
Slide 11: Alternative Energy
Alternative Energy • Plans on track • In Solar, commissioned the first 25MW cell line expansion at our in Madrid facility • In Wind, Greenlight acquisition completed • In Hydrogen power, strategic relationship with GE progressing well • In Gas-fired power − K Power gas turbine in South Korea − Texas
Slide 12: '06 investments and divestments
’06 investments and divestments • Organic capex expected to be around $16bn • Proceeds from divestments expected to be around $6bn 12
Slide 13: Response to '05 - '06 events
Response to ’05 - ’06 events • Heightened awareness of all aspect of safety and environmental management • Top priority is to implement process safety management across the company • Baker Panel recommendations will help us improve operations across the world • Going beyond what is mandated by regul
Slide 14: Summary
Summary • We have: − Great people − Strong values − High aspirations − An enduring strategy • We are determined to improve and improve continuously 14