BP plc · LSE:BP.
BP — Q3 2006 Earnings Presentation
14 slides from BP's earnings presentation, Oct 24, 2006
Slide 1: 3Q 2006 Results Webcast
3Q 2006 Results Webcast Tuesday 24th October 2006
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: Trading environment
Trading environment $/bbl Oil realization $/mcf Gas realization 70 12 60 10 50 8 40 6 30 20 4 10 2 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2005 2006 2005 2006 $/bbl Refining indicator margin 14 Change vs 2005 12 3Q 9 mths 10 Average realisations 8 Crude oil $/bbl 18% 30% 6 Natural gas $/mcf (5
Slide 4: Financial results
Financial results Change vs 3Q 2005 Results for the third quarter $bn % % per share • Replacement cost profit 7.0 58% 67% • Profit including inventory gains/losses 6.2 (4)% 2% • Net cash provided by operating activities 5.1 (19)% (15)% ¢/ share • Dividend to be paid next quarter 9.825 +10 % Change v
Slide 5: Exploration & Production
Exploration & Production $bn pre-tax 12 • Higher oil prices 10 • Lower gas prices 8 • Higher production taxes and costs 6 • Growth in New Profit 4 Centres 2 • Disposal gain in TNK-BP 0 • Non-Operating Items (NOI) 3Q 05 NOI Underlying 3Q 06 − Disposal gains 6,681 Underlying result $m 7,469 − Embedded
Slide 6: Refining & Marketing
Refining & Marketing $bn pre-tax 2.0 • Stronger marketing margins 1.6 • IFRS fair value accounting gain 1.2 • Lower refining margins and weaker supply optimization 0.8 • Higher turnaround activity 0.4 and ongoing Texas City impact 0.0 3Q 05 NOI Underlying 3Q 06 • Non-Operating Items (NOI) 2,029 Unde
Slide 7: Gas, Power & Renewables
Gas, Power & Renewables $bn pre-tax 0.4 • Lower marketing & trading contribution 0.3 • Smaller IFRS fair value accounting charge 0.2 • Non-Operating Item (NOI) − Embedded derivatives 0.1 − Impairment 0.0 3Q 05 NOI Underlying 3Q 06 252 Underlying result $m 237 95 Non-operating items $m (85) 347 Total
Slide 8: Other business & corporate
Other business & corporate $bn pre-tax 0.0 • Vacant space provision (0.1) • Non-Operating Items (NOI) (0.2) − Environmental and other provisions (0.3) (0.4) (0.5) (0.6) 3Q 05 NOI Underlying 3Q 06 (211) Underlying result $m (339) (290) Non-operating items $m 78 (501) Total result $m (261) 8
Slide 9: Effective tax rate
Effective tax rate • 3Q’06 effective tax rate 40% − UK North Sea tax changes enacted in 3Q − Deferred tax charge − Current tax impact retroactive to 1Q − Tax savings due to lower end 3Q’06 oil prices • Expected full year effective tax rate 37% 9
Slide 10: Strategic progress
Strategic progress • New acreage in Pakistan and India • New discoveries in Gulf of Mexico and Angola • Shenzi (Gulf of Mexico) disposal completed • Greenlight acquisition in Alternative Energy • K-Power gas-power plant in South Korea completed • Sanction of $3bn Whiting refinery upgrade 10
Slide 11: Sources and uses of cash
Sources and uses of cash $bn post tax 9 months 05 9 months ‘06 35 30 25 Disposals Disposals Buybacks 20 Buybacks Operations 15 Operations 23.2 Dividends 22.5 Dividends 10 Acquisitions Organic Organic 5 capex capex 0 Sources Uses Sources Uses 11
Slide 12: Net debt ratio
Net debt ratio % 40 35 30 25 20 15 10 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2005 2006 Net debt ratio = net debt / (net debt + equity) 12
Slide 13: Shareholder distributions
Shareholder distributions $bn $bn Full year 9 months 24 18 21 16 14 18 12 15 Buybacks 10 12 Dividends 8 Share issues 9 6 6 4 3 2 0 0 (2) (3) 2002 2003 2004 2005 2006 13
Slide 14: Q&A
Q&A Byron Grote Chief Financial Officer Fergus MacLeod Head of Investor Relations 14