BP plc · LSE:BP.
BP — FY2010 Earnings Presentation
84 slides from BP's earnings presentation, Feb 1, 2011
Slide 1: BP 2010 results and investor update
BP 2010 results and investor update London 1 February 2011
Slide 2: Bob Dudley, Group Chief Executive
Bob Dudley Group Chief Executive 2
Slide 3: Cautionary statement
Cautionary statement Forward looking statements - cautionary statement This presentation and the associated slides and discussion contain forward looking statements, particularly those regarding energy demand and sources of supply; possible short term impact on costs and volumes from various actions
Slide 4: Agenda
Agenda Introduction Bob Dudley 2010 results Byron Grote Safety & Operational Risk Bob Dudley Gulf of Mexico oil spill Exploration & Production Refining & Marketing Iain Conn Alternative Energy Bob Dudley Conclusion Q&A 4
Slide 5: 2010: Gulf of Mexico oil spill and response
2010: Gulf of Mexico oil spill and response Deepwater Horizon incident • 11 lives lost Response • Unprecedented containment, well-capping and clean-up • Dividend suspended • $20bn Trust Fund established • $30bn divestment programme initiated • New Safety and Operational Risk organization • Reorganiz
Slide 6: 2010: underlying performance
2010: underlying performance Strong underlying financial performance(1) • Underlying earnings of $20.5bn and operating cash flow of $29.6bn Business performance delivery • 106% reserves and 470% resource replacement(2) • Access and exploration success − Brazil, Azerbaijan, Egypt, North Sea, Indonesi
Slide 7: Energy demand to 2030
Energy demand to 2030 18 15 12 Billion toe 9 6 3 0 1870 1910 1950 1990 2030 Renewables* Nuclear Hydro Gas Oil Coal * Includes biofuels Source: BP Energy Outlook 2030 7
Slide 8: The challenge of meeting growing demand
The challenge of meeting growing demand US EU(1) China 4 4 4 3 3 3 Billion toe 2 2 2 1 1 1 0 0 0 1990 2010 2030 1990 2010 2030 1990 2010 2030 Renewables* Hydro Nuclear Coal Gas Oil (1) Today’s borders * Includes biofuels Source: BP Energy Outlook 2030 8
Slide 9: Moving BP forward: Our strategic agenda
Moving BP forward Our strategic agenda Putting Safety & Operational Risk management at the heart of the company • A long term integrated approach − How we manage risk − How we operate − How we partner with governments and contractors − How we reward our people Re-building trust • Meeting our commitm
Slide 10: The BP team
The BP team 2011 BP investor roadshow team Bob Dudley Group Chief Executive Iain Conn Byron Grote Chief Executive Chief Financial Officer Refining & Marketing Andy Hopwood Mark Bly Brian Gilvary Rupert Bondy Executive Vice President, Executive Vice President, Deputy Group CFO & Group General Counsel
Slide 11: Byron Grote, Chief Financial Officer
Byron Grote Chief Financial Officer 11
Slide 12: Trading environment
Trading environment Liquids realization Gas realization 90 16 12 60 $/mcf $/bbl 8 30 4 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2009 2010 2009 2010 Refining indicator margin Change vs 2009 8 Average realizations 4Q Year 6 Liquids $/bbl 16% 30% 8% 22% $/bbl 4 Natural gas $/mcf Total hydroc
Slide 13: Financial results
Financial results All earnings figures are adjusted for the costs associated with the Gulf of Mexico oil spill, other non-operating items and fair value accounting effects. $bn 4Q09 4Q10 Replacement cost profit before interest and tax 4Q10 vs 4Q09 ($bn) Exploration & Production 7.1 6.7 8 Refining &
Slide 14: Gulf of Mexico oil spill costs and provisions
Gulf of Mexico oil spill costs and provisions (pre-tax, pre partner recovery) $bn 2Q10 3Q10 4Q10 FY10 • Income statement – Charge for the period 32.2 7.7 1.0 40.9 • Balance sheet * – Brought forward 30.1 27.7 – Charge/ (credit) to income statement 32.2 7.7 1.0 – Payments into Trust Fund (3.0) (2.0)
Slide 15: Exploration & Production
Exploration & Production Replacement cost profit before interest and tax • Stronger environment Adjusted for non-operating items and fair value accounting effects 10 60 • Lower depreciation Average hydrocarbon realizations ($/boe) 50 • Loss in gas marketing and trading 8 40 • Reported production 9%
Slide 16: Refining & Marketing
Refining & Marketing Replacement cost profit before interest and tax Adjusted for non-operating items and fair value accounting effects 2.0 12.0 Refining indicator margin ($/bbl) 10.0 • Stronger refining margins 1.5 8.0 • Strong operational performance in 1.0 6.0 fuels value chains 4.0 $bn 0.5 • Con
Slide 17: Other businesses & corporate
Other businesses & corporate Replacement cost profit before interest and tax Adjusted for non-operating items and fair value accounting effects 0.2 0 (0.2) $bn • Adverse foreign exchange effects (0.4) (0.6) (0.8) 4Q09 1Q10 2Q10 3Q10 4Q10 17
Slide 18: Sources & uses of cash
Sources & uses of cash 2009 2010 45 40 Trust Fund • Disposal proceeds of $6.2 billion 35 Disposals Other Gulf for deals closed in 4Q 30 Disposals of Mexico oil spill • Additional $6.2 billion of cash 25 payments deposits held at year end for $bn Capex disposals expected to complete in 20 subsequent
Slide 19: Net debt ratio
Net debt ratio 40 30 20 to 30% % 20 10 to 20% 10 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Net debt ratio = net debt / (net debt + equity) Net debt includes the fair value of associated derivative financial instruments used to hedge finance debt Cash of $6.2bn received as deposits for
Slide 20: 2011 guidance
2011 guidance 2010 2011 guidance Organic capital expenditure $18bn ~ $20bn Cash from disposals* $17bn $13bn Payments into Trust Fund $5bn $5bn DD&A $11bn ~ $500m higher Cash costs** (year-on-year change) Slightly lower Slightly higher OB&C: average underlying quarterly charge ~ $350m ~ $400m Full ye
Slide 21: Financial framework
Financial framework • Increased investment to grow the firm • Resumption of the quarterly dividend supported by: − Continued success in the disposal program − Improving business environment balanced by: − The need to retain significant level of financial flexibility • Financial flexibility provided
Slide 22: Bob Dudley, Group Chief Executive
Bob Dudley Group Chief Executive 22
Slide 23: Safety track record
Safety track record Recordable Injury Frequency (RIF) 2.0 1.6 1.2 0.8 0.4 0.0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Group excluding response contribution API US benchmark Gulf of Mexico oil spill contribution Int. Assoc. of Oil and Gas Producers benchmark Process Safety Related
Slide 24: Putting Safety and Operational Risk management at the heart of BP
Putting Safety and Operational Risk management at the heart of BP Resetting the focus on safe, reliable operating activity to achieve long term value creation Leadership priorities • Process safety and operating risk reduction • Embedding BP’s Operating Management System (OMS) − Consistent and syste
Slide 25: Implementing lessons globally
Implementing lessons globally Building on our learnings and sharing them around the world Internal changes to strengthen BP • Centralized global wells organization • Broadening areas of expertise • Enhancing our standards and practices Advancing technology, standards and equipment in 5 key areas • P
Slide 26: Living up to our commitments and earning back trust
Living up to our commitments and earning back trust Gulf Coast Restoration Organization Economic & environmental impact • ~$5bn of claims & government payments to date • Natural Resource Damages Assessment − Understanding the incident’s effects − Restoring the environment & use of natural resources
Slide 27: Gulf of Mexico oil spill: Expected milestones
Gulf of Mexico oil spill Expected milestones Indicated dates* Investigations • Presidential Commission final report March 2011 • Marine Board investigation final report Spring 2011 • Chemical Safety Board report to be determined • National Academy of Engineers final report end 2011 Department of Jus
Slide 28: Gulf of Mexico oil spill: Financial impacts
Gulf of Mexico oil spill Financial impacts • $20bn Trust Fund − Claims by individuals and businesses − Government claims − Natural Resource Damages claims • $41bn charge taken against income • Partner recovery not included • Final $1.25bn cash payment to Trust Fund in Q4 2013 28
Slide 29: Upstream: Exploration, Developments and Production
Upstream: Exploration, Developments and Production 29
Slide 30: Upstream − agenda
Upstream − agenda • Focus on value growth – Risk reduction – New forms of relationships – Increased investment in exploration – Active portfolio management: divestments / acquisitions – Build technology and capability • 2010 delivery • 2011 guidance 30
Slide 31: Divestment update
Divestment update Divestment program success • Total headline proceeds of more than $21bn • Reserves and non-proved resources of 1.7bn boe and 3.2bn boe, with 0.4bn boe and 1.8bn boe closed in 2010 • Financial impact of ~$1.5bn pre-tax underlying replacement cost profit Key transactions 21 US Permia
Slide 32: Net asset value distribution: Focused portfolio with potential for growth
Net asset value distribution: Focused portfolio with potential for growth North Azerbaijan North Angola Alaska Asia Trinidad PAE North Middle Canada Brazil US Colombia Canada Vietnam Venezuela Pakistan Sea America Pacific Africa East Gas (Permian) Oil Gas Sands Divested portfolio Source: Wood Macken
Slide 33: Resources to reserves to production
Resources to reserves to production Exploration and Access Prospect inventory Exploration Discovered Field extensions and improved Impact of discoveries resource access recovery End 2009 End 2010 2010 disposals 45.3 bn boe Non-proved resources 50.2 bn boe (1.8) bn boe 18.3 bn boe Proved reserves 18.
Slide 34: Resource and reserve distribution
Resource and reserve distribution 2010 resource base 2010 reserves additions % Proved: 18.1 bn boe TNK-BP Conventional oil 13 years North America Onshore Deepwater oil North Africa, Middle East, Water-flood viscous Caspian and heavy oil Gulf of Mexico Conventional gas North Sea LNG gas 35 years Sout
Slide 35: Recent access
Recent access North Sea Russian Arctic Valhall deepening South Kara Sea UKCS 26th licensing round Strategic alliance with Rosneft Canada Terre de Grace 750km2 Azerbaijan PSA for 1100km2 Shafag-Asiman block US shale gas China Eagle Ford South China Sea 38,000 acres Farmed in to 2 blocks US Gulf of Me
Slide 36: Project Final Investment Decisions
Project Final Investment Decisions • Final Investment Decisions made Tubular Bells Gulf of Mexico 9 on 15 projects Mars B Gulf of Mexico 9 Atlantis Phase 2 Gulf of Mexico 9 Galapagos Gulf of Mexico 9 • ~$20bn of total BP net investment Na Kika Phase 3 Gulf of Mexico 9 Horn Mountain Phase 2 Gulf of M
Slide 37: 2011 increased turnaround activity
2011 increased turnaround activity Number of turnarounds 51 • ~ 50% increase in turnaround activity • Major investment programs to manage 35 34 safety and operational risk • Short-term production impact with long-term reliability benefit 2009 2010 2011 2011 BP projection 37
Slide 38: Deepwater: Gulf of Mexico
Deepwater: Gulf of Mexico • Resource base remains unchanged Production, mmboed • Industry-wide production reduced in 2010 3.0 • 2011 focus on safely bringing back rig activity 2.5 • Our restart criteria will cover: − Regulatory requirements 2.0 − Activity and pace − Capability − Contractor managemen
Slide 39: Production 2006−2011
Production 2006−2011 Production, mmboed • 2011 year of consolidation 4.5 • Increased turnaround activity and 4.0 planned losses • Key drivers of uncertainty: 3.5 – Gulf of Mexico restart 3.0 – Divestment timing – Oil price and PSA effects 2.5 – OPEC quota restrictions 2.0 1.5 1.0 2006 2007 2008 2009
Slide 40: Capital investment 2006-2011
Capital investment 2006-2011 Organic capital expenditure, $bn Increasing investment in line with 20 priorities: • Safety and operational risk activity, including an increased number of 15 turnarounds Exploration • Increased exploration spend Production • Resumption of activity in Gulf of 10 Mexico D
Slide 41: Long term value growth
Long term value growth Portfolio choice Deepwater Gas Giant fields Enduring presence in key basins Relationships Basin knowledge Technology Capturing value across life cycle Exploration Developments Production 41
Slide 42: Value growth in the life cycle of a basin: Azerbaijan example
Value growth in the life cycle of a basin: Azerbaijan example Value creation Shafag-Asiman Shah Deniz FFD Shah Deniz / SCP Azeri / BTC Resources Proven Chirag Explore Develop Produce 1990 1995 2000 2005 2010 2015 2020 2025 2030 FFD - Full Field Development SCP – South Caucasus Pipeline BTC – Baku-Tb
Slide 43: Increasing investment in exploration
Increasing investment in exploration Post-merger Net discovered volume drill-out Portfolio rebuild The future Net accessed volume 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Direct resource access Exploration access Source: BP internal 43
Slide 44: Future exploration focus
Future exploration focus Canadian Arctic Russian Arctic Azerbaijan Gulf of South Libya Mexico Jordan China Sea Egypt Indonesia Angola Brazil Australia New / untested positions Existing positions 44
Slide 45: Developments: project portfolio
Developments: project portfolio Po st FID Pre FID >1bn >1bn Gross Gross Locat ion Project BP Net Ty pe WI % Locat ion Project BP Net Ty pe WI % Capacit y Capacit y Inv est m ent Inv est m ent Alaska Liberty* 9 z 100 40 mboed Angola Block 18 West* 9 z 50 50-75 mboed Angola Angola LNG 9 z 14 5 mtpa Ki
Slide 46: Developments: deepwater projects
Developments: deepwater projects Angola Gulf of Mexico Brazil • Block 31 PSVM • Atlantis Phase 2 • Itaipu • Clochas-Mavacola • Galapagos • Wahoo • CLOV • Mars B • Pazflor • Na Kika Phase 3 • Block 18 West • Tubular Bells • Kizomba Satellites Phase 2 • Freedom • Block 31 SE • Mad Dog Phase 2 • Atlant
Slide 47: Developments: gas projects
Developments: gas projects Azerbaijan Oman Shah Deniz Full Field Development Khazzan-Makarem Full Field Development Egypt Asia Pacific West Nile Delta Tangguh expansion 47
Slide 48: Developments: new start-ups
Developments: new start-ups North Sea Skarv * Russia (TNK-BP) Alaska Devenick * Canada Verkhnechonskoye FFD Liberty * Kinnoull * Sunrise Suzun WoS Q204 * Uvat Central Expansion Clair Ridge * Russkoye Gulf of Mexico Azerbaijan Galapagos * Egypt Chirag Oil * Na Kika Phase 3 * Tubular Bells Algeria WND
Slide 49: Production: Iraq
Production: Iraq 2010 2011-2012 2013+ • Set up the business • Cost recovery starts • Brownfield project underway • Achieved Improved • Rehabilitation; inspection, • Deliver plateau target end Production Target (IPT) maintenance, commence FEED 2015 • Water, gas, power, export solutions Company positi
Slide 50: BP has a unique growth-oriented position in Russia
BP has a unique growth-oriented position in Russia 2010 production, mmboed 9.0 8.5 3.0 2.5 2.0 1.5 1.0 0.5 BP BP 0.0 Hess MOL Total Chevron Gazprom TNK-BP ONGC COP Rosneft E.ON Sinopec LUKoil Shell Mitsubishi Wintershall XOM Mitsui Source: Wood Mackenzie / BP internal 50
Slide 51: TNK-BP
TNK-BP Yamal projects Moscow Suzun Tagul Russkoye Nyagan Rospan Kamennoye Samotlor Uvat Orenburg Novosibirsk Verkhnechonskoye Core production areas Project areas 51
Slide 52: BP is forming a global strategic alliance with Rosneft
BP is forming a global strategic alliance with Rosneft A unique alliance unlocking future growth potential for both BP and Rosneft • International upstream collaboration • Significant share swap Arctic exploration agreement Wider Arctic focused on South Kara Sea protocol A leading European refining
Slide 53: Leveraging technology to reduce risk and underpin long term reliability and value
Leveraging technology to reduce risk and underpin long term reliability and value Inherently Reliable Facilities Unconventional Oil Managing and reducing Technologies for UO integrity risk resource progression Unconventional Gas FieldoftheFuture® Globalize unconventional Digital tools for managing g
Slide 54: Upstream value growth
Upstream value growth • 2010 − Gulf of Mexico incident − Strategic and operational progress • 2011 – year of consolidation: − Increased turnaround activity − Uncertainty on Gulf of Mexico timing − Increasing investment for growth • Long-term value growth − Portfolio focus – deepwater, gas, giant fie
Slide 55: Iain Conn, Chief Executive, Refining & Marketing
Iain Conn Chief Executive, Refining & Marketing 55
Slide 56: Refining & Marketing − agenda
Refining & Marketing − agenda • R&M turnaround and 2010 performance • Strategy and portfolio • Outlook and what you can expect 56
Slide 57: Refining & Marketing turnaround
Refining & Marketing turnaround The five priorities • Safe operations and OMS(1) • Behaviours and core processes • Restoring missing revenues and earnings momentum • Business simplification • Repositioning cost efficiency (1) Operating Management System 57
Slide 58: Delivering competitive performance
Delivering competitive performance Underlying ROACE % (post tax)(1) Underlying net income $/bbl(3) Rolling 4-quarter data 30 6 25 5 20 4 15 3 10 2 5 1 0 0 2003 2004 2005 2006 2007 2008 2009 2010 2003 2004 2005 2006 2007 2008 2009 2010 Competitor average(2) BP R&M Competitor range(2) (1) BP and compe
Slide 59: Performance momentum 2007–2010
Performance momentum 2007–2010 0.9 BP’s Global Indicator Margin (GIM) Pre-tax underlying RC profit $bn 0.4 2.1 4.9 (1.8) (3.3) 3.9 2.7 3.6 3.3 2007 Environ’t Performance 2008 Environ’t Performance 2009 Environ’t Performance 2010 improvement improvement improvement GIM 9.9 6.5 4.0 4.4 $/bbl Environme
Slide 60: Our portfolio and performance 2007–2010
Our portfolio and performance 2007–2010 2010 average operating Pre-tax underlying RC capital employed (pre tax) $bn profit $bn Fuels Value Chains 2007 2008 2009 2010 Convenience 14 Fuels Marketing 1.2 2.0 3.1 1.7 and Supply 24 Refining 1.2 (0.7) (1.6) 0.3 International Businesses Lubricants 1.5 2.0
Slide 61: 2010 performance delivery
2010 performance delivery 2007 2009 2010 2011 2012 Repositioning cost Repositioning $0.6bn >$1.5bn efficiency cost efficiency $1.4bn Portfolio quality & Simplification >$0.5bn integration Restoring revenues & Up to $2.8bn Growing margin share earnings momentum $0.5bn $4.8bn $0.9bn > $2bn Values base
Slide 62: Improving efficiency
Improving efficiency Refining Refining performance 100 09 10 2012 95 2010 2004 2009 Solomon availability % 90 85 80 75 2007 70 140 130 120 110 100 90 Refining cost efficiency(1) Year BP portfolio average Top 3 BP refineries (1) Based on Solomon non-energy operating expense per Effective Distillation
Slide 63: Repositioning cost efficiency
Repositioning cost efficiency BP Refining & Marketing cash cost index TAR costs(2) 130 Adjusted for energy & forex(1) Normalized for energy, forex, 120 TAR(2) & manufacturing variable costs(3) 110 100 90 80 70 60 50 2004 2005 2006 2007 2008 2009 2010 (1) Corrected for major historic divestments (2)
Slide 64: Refining Marker Margin 1990–2010
Refining Marker Margin 1990–2010 Refining Marker Margin adjusted to 2010 $ 20 18 16 14 12 $/bbl 10 8 6 4 2 0 2007 2008 2009 2010 1990 1993 1994 1995 1998 1999 2001 2003 2004 2006 1991 1992 1996 1997 2000 2002 2005 64
Slide 65: 2010 performance progression
2010 performance progression 10 >$2bn earnings growth by 2012 9 Pre-tax underlying RC profit $/ bbl 8 7 ~$5bn recovery 6 2007>2009 2005 2006 $0.9bn delivered 5 2010 2004 in 2010 4 2009 2007 3 2008 2 1 0 0 4 8 12 16 20 BP's Refining Marker Margin (RMM) $/ bbl 65
Slide 66: Net investment
Net investment 5 4 3 2 Organic capex Depreciation 1 Total net investment $bn 0 (1) (6) (7) 2005(1) 2006 2007 2008 2009 2010 2011(2) (1) Includes $8.3bn proceeds for Innovene sale (2) 2011 BP projections 66
Slide 67: Portfolio performance 2008–2010
Portfolio performance 2008–2010 Fuels Value Chains & International Businesses progression 4 Pre-tax underlying RC EH FVC(3) 3 2008 IBs(4) 2010 profit $bn 2 EH FVC IBs 2010 2008 1 US FVC(2) (10)% 2010 10% 20% 30% 40% (1) Pre-tax returns - %(1) US FVC 2008 (2) (1) Returns are based on Pre-tax average
Slide 68: Strategy and portfolio
Strategy and portfolio 1 Reposition US Fuels Value Chains and halve US refining capacity • Divest Texas City refinery(1) • Divest Southern West Coast Fuels Value Chain(1) • Transform Whiting refinery capability • Improve Cherry Point and Toledo refineries • Focused marketing and logistics footprint
Slide 69: Divest Texas City refinery
Divest Texas City refinery • 3rd largest US refinery, highly complex(1) • Significant improvement in safety and operations • $2.5bn p.a. improvement in profit(2) • Plan to complete before end 2012(3) • BP’s obligations will be fulfilled 600 Crude Distillation Unit capacity (kb/d) 500 400 300 200 100
Slide 70: Divest Southern West Coast Fuels Value Chain
Divest Southern West Coast Fuels Value Chain Cherry Point refinery Retain Northern Fuels Value Chain Seattle Seattle Pipelines • High quality modern refinery BP refinery Portland • Feedstock flexibility and location BP terminal • Diesel/ Jet yield focus • Good integrated margins and relative returns
Slide 71: Whiting Refinery Modernization Project
Whiting Refinery Modernization Project • Major rebuild of CDU(1) to process heavy crude • World scale 100kbd state of the art 6 drum coker • New world scale sulphur removal and gas oil hydro-treating units • Refinery infrastructure upgrade • ~60% complete 2010 > commissioning 2013 (1) Crude Distilla
Slide 72: Whiting Refinery Modernization Project: Sources of value
Whiting Refinery Modernization Project Sources of value 600 Mid West post project performance for a range Indexed pre tax underlying RC profit 500 of WTI – Lloydminster differentials 400 $/bbl of capacity 300 Mid West historical performance range 200 100 0 0 2 4 6 8 10 12 Mid West Refining Marker Ma
Slide 73: Repositioned US Fuels Value Chains
Repositioned US Fuels Value Chains • US refining capacity halved • Repositioned configurations ANS Edmonton • Advantaged feedstock and flexibility Crude Canadian Hardisty ANS crude adv Crude +$ 1-2/bbl Cherry Point Canadian crude adv +$3-4/bbl +$3-4/bbl Whiting Toledo Cushing Traded Product Supply •
Slide 74: Improve Eastern Hemisphere Fuels Value Chains, access market growth
Improve Eastern Hemisphere Fuels Value Chains, access market growth Margin growth options • Rotterdam hydrocracker • Gelsenkirchen yield Market growth improvement • Fuels: China, Australasia, Turkey, South Africa, Poland, Iberia • Convenience: Rhine, Poland, Australasia, UK BP owned refinery Joint B
Slide 75: Impact of portfolio choices – refining
Impact of portfolio choices – refining Global refining quality 250 Current BP divestment plans ’11-’12 Texas City Post 2013 Carson BP divestments ’00-’10 Average refinery size (kbd) Alliance Mombasa 200 Coryton Reichstett Grangemouth Salt Lake Lavera Singapore Divested Mandan Yorktown 00>12 150 100
Slide 76: Lubricants – high returns, high growth
Lubricants – high returns, high growth Return on sales(1) Profit growth(3) 2007 2010 Top Quartile Midpoint(2) Consumer Sector Companies ROW OECD BRICs Median(2) Synthetic/premium lubricants sales(4) Consumer Sector Companies 50% 25% 2007 2008 2009 2010 (1) Pre tax basis. 2010 based on 3Q YTD (2) Bas
Slide 77: Petrochemicals – high quality, Asia growth
Petrochemicals – high quality, Asia growth KEY PET co-location Acetyls growth PTA growth PTA sites • Decatur • Middle East • East China Acetyls sites • Geel • India • Zhuhai 2 DB • Zhuhai • China • Zhuhai 3 PX sites • India O&D • Taiwan • Indonesia SECCO growth Return on sales(1) Production MTes Pro
Slide 78: Portfolio performance outlook
Portfolio performance outlook ) (2 rn VC 4 ste re F Ea he 3+ Pre-tax underlying RC isp 201 nal + 3 m a ti 013 o He 3+ t ern ses 2 profit $bn 1 n I es 0 in ) 2 (2 B us 2 C FV S U 1 (10)% 10% 20% 30% 40% (1) Pre-tax returns - %(1) (2) (1) Returns are based on pre-tax average operating capital employed
Slide 79: Refining & Marketing growth and returns
Refining & Marketing growth and returns 12 18% Competitive Differential Growth Sustainable 11 Recovery Growth and 15-20% CAGR Attractive 16% >50% CAGR(1) Pre-tax underlying RC profit ($bn) 10 Returns 14% 9 Pre-tax Returns (%) 8 12% 7 10% 6 8% 5 4 6% 3 4% 2 2% 1 0 0% (1) 2007 2008 2009 2010 2011 2012
Slide 80: Refining & Marketing: Summary and what to expect
Refining & Marketing Summary and what to expect • Safe and reliable operations remains #1 priority • On track to deliver >$2bn pa of pre-tax underlying RC profit improvement by 2012 − Costs: efficiency improved, returning to 2004 levels − Refining: achieved break-even in similar environment to 2009
Slide 81: Bob Dudley, Group Chief Executive
Bob Dudley Group Chief Executive 81
Slide 82: Alternative Energy
Alternative Energy Shares of world primary energy 50% Oil 40% 30% Coal Sugar cane harvesting in Brazil 20% Gas 10% Hydro Nuclear Goshen wind farm, Idaho, USA Renewables 0% 1970 1990 2010 2030 • Alternative Energy is the fastest growing energy sector • BP continues to invest: focus on biofuels andGos
Slide 83: Moving BP forward
Moving BP forward Putting Safety & Operational Risk management at the heart of the company Re-building trust Value growth • Dividend resumed − Quarterly dividend level of 7 cents/share − Intention to grow over time in line with improving circumstances of firm • Active portfolio management: divesting
Slide 84: Q&A
Q&A Mike Daly Bob Dudley Executive Vice President, Group Chief Executive Exploration Bernard Looney Byron Grote Executive Vice President, Chief Financial Officer Developments Iain Conn Bob Fryar Chief Executive Executive Vice President, Refining & Marketing Production Mark Bly Andy Hopwood Executive