BP plc · LSE:BP.
BP — Q1 2020 Earnings Presentation
22 slides from BP's earnings presentation, Apr 28, 2020
Slide 1: BP 1Q 2020 Financial results
BP 1Q 2020 Financial results 28 April 2020 1
Slide 2: Craig Marshall, Head of IR
Craig Marshall Head of IR 2
Slide 3: Cautionary statement
Cautionary statement Forward-looking statements - 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 stat
Slide 4: Bernard Looney, CEO
Bernard Looney CEO 4
Slide 5: Supporting our people and communities
Supporting our people and communities 5
Slide 6: Delivering for our shareholders and strengthening our finances
Delivering for our shareholders and strengthening our finances 6
Slide 7: Reinforcing our commitment to our purpose, ambition and aims
Reinforcing our commitment to our purpose, ambition and aims 7
Slide 8: Brian Gilvary, CFO
Brian Gilvary CFO 8
Slide 9: Environment
Environment Commodity prices $/bbl Brent / Brent1 WTI1 RMM2 WTI RMM 80 24 ▪ 74% decline in Brent over 1Q, averaging $50/bbl 60 18 ▪ Henry Hub average of 40 12 $1.95/mmBtu in 1Q 20 6 ▪ BP RMM2 average of $8.80/bbl in 1Q 0 0 -20 -6 -40 -12 -60 -18 Jan Feb Mar Apr (1) Source: Platts (2) Refining Marker
Slide 10: 1Q 2020 results summary
1Q 2020 results summary $bn 1Q19 4Q19 1Q20 1Q 2020 vs 4Q 2019 Underlying replacement cost profit 2.4 2.6 0.8 ▪ Lower liquid and gas 1 5.9 7.6 1.2 realisations Underlying operating cash flow Underlying RCPBIT2 ▪ A higher effective tax rate Upstream 2.9 2.7 1.9 ▪ Lower Rosneft contribution Downstream
Slide 11: 1Q 2020 sources and uses of cash
1Q 2020 sources and uses of cash Organic cash inflows/outflows $bn 8 Share buybacks ▪ Organic cash outflow of 6 $5.7bn Dividends2 ▪ Working capital build of 4 Lease payments3 $3.7bn Working capital build ▪ ~$32bn of liquidity5 2 Organic capex ▪ Completed share buyback Underlying cash flow1 programme
Slide 12: Murray Auchincloss, CFO Designate
Murray Auchincloss CFO Designate 12
Slide 13: Adapting our financial frame
Adapting our financial frame Near term objectives Taking decisive action Resilient financial framework Balance sheet − ~$32bn liquidity1 including new Reinforce liquidity $10bn RCF2 Balance 2021 organic cash − ~$7bn additional bond issue flows at: Lower cash balance point − <$35/bbl Brent Divestment
Slide 14: 2020 guidance
2020 guidance Second quarter Full year Upstream Upstream production Lower than excluding Rosneft 20191 Lower reported production subject to: ▪ Significant uncertainties around implementation of OPEC+ restrictions Organic capital ~$12bn expenditure ▪ Price impacts on entitlement volumes Slightly belo
Slide 15: Bernard Looney, CEO
Bernard Looney CEO 15
Slide 16: Reimagining energy for people and our planet
Reimagining energy for people and our planet 16
Slide 17: Q&A
Q&A Brian Gilvary Bernard Looney Murray Auchincloss Craig Marshall CFO CEO CFO Designate Head of IR 17
Slide 18: Appendix
Appendix 18
Slide 19: 1Q 2020 summary
1Q 2020 summary $bn 1Q19 4Q19 1Q20 % Y-o-Y % Q-o-Q Upstream 2.9 2.7 1.9 Downstream 1.7 1.4 0.9 Other businesses and corporate (0.4) (0.3) (0.6) Underlying business RCPBIT 1 4.2 3.9 2.2 (47%) (42%) 2 Rosneft 0.6 0.4 (0.0) Consolidation adjustment – unrealised profit in inventory (0.0) 0.0 0.2 1 Under
Slide 20: Upstream
Upstream Volume mboed Underlying RCPBIT3 $bn 4000 Group production1 5.0 Non-US US Total 3500 4.0 3.4 2.9 3000 Upstream production 2.7 3.0 excluding Rosneft 2.1 1.9 2500 2.0 2000 1.0 1500 0.0 1Q19 2Q19 3Q19 4Q19 1Q20 1Q19 2Q19 3Q19 4Q19 1Q20 Realisations2 1Q19 4Q19 1Q20 1Q 2020 vs 4Q 2019 Liquids ($/
Slide 21: Downstream
Downstream Underlying RCPBIT2 $bn 96 % Refining availability1 Refining environment 1Q19 4Q19 1Q20 Fuels Lubricants Petrochemicals Total 2.0 1.9 4Q19: 96% RMM ($/bbl) 10.2 12.4 8.8 1.7 1.4 1.5 1.4 1Q 2020 vs 4Q 2019 ▪ Lower industry refining margins; 1.0 0.9 ▪ Weaker fuels and lubricants demand drive
Slide 22: Rosneft
Rosneft BP share of underlying net income1 $bn BP share of Rosneft dividend2 $bn Dividend paid 1.0 1.0 0.8 0.8 0.6 0.6 0.4 0.4 0.2 0.0 0.2 2017 2018 2019 0.0 1.1mmboed 1Q19 2Q19 3Q19 4Q19 1Q20 -0.2 BP share of Rosneft production3 (1) On a replacement cost basis and adjusted for non-operating items;