Bp Plc · LSE:BP.
Bp — Q1 2024 Earnings Presentation
28 slides from Bp's earnings presentation, May 7, 2024
Slide 1: 1Q 2024 financial results
1Q 2024 financial results 4Q 2023 financial results
Slide 2: Welcome to bp's first quarter 2024 results
SVP investor relations Welcome to bp’s first quarter 2024 results presentation. I am here today with Murray Auchincloss, chief executive officer and Kate Thomson, chief financial officer. 2
Slide 3: Cautionary statement
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 statement: The discussion in this results presentation
Slide 4: Chief executive officer
Murray Huchincloss Chief executive officer
Slide 5: Resilient performance, growing distributions, six priorities
Resilient financial and Growing shareholder Focus on delivering operational performance distributions our six priorities –A $10.3bn –A 7.270 cents – Simplify organisational EBITDA* dividend per ordinary structure share – Target to deliver at least –A $2.7bn underlying earnings –A $1.75bn $2bn 1Q24 s
Slide 6: Strategic progress and six priorities
gas plant online in Kansas City and are currently commissioning five plants; and − Last week our JV Azule announced a 42.5% farm-in into an exploration block in the Orange basin offshore Namibia. All of this is underpinned by our disciplined financial frame – including today announcing a further $1.
Slide 7: Chief financial officer
Kate [homson Chief financial officer
Slide 8: 1Q24 Underlying results
1Q24 Underlying results 1Q 2024 vs 4Q 2023 ▪ Lower oil and gas realisations* ▪ Impacts of Whiting refinery outage ▪ Significantly weaker fuels margin ▪ Significantly lower level of refining turnaround activity ▪ Strong oil trading ▪ Higher realised refining margins 1Q 2024 financial results 7 Thanks
Slide 9: Underlying results by segment and tax rate
positive effects that benefited the prior quarter, partly offset by lower costs. - In products, the underlying profit was $920 million, around $1 billion higher compared to the previous quarter. The result reflects higher realised refining margins, a significantly lower level of turnaround activity
Slide 10: 1Q24 Cash flow and balance sheet
1Q24 Cash flow and balance sheet Financial frame ▪ Strong investment grade credit rating ▪ Fitch upgrade in 4Q23 to A+ ▪ Moody’s upgrade to A1 ▪ Disciplined investment allocation ~$16bn including inorganics ▪ 2024 divestment proceeds $2-3bn, weighted to the second half ▪ $1.75bn share buybacks annou
Slide 11: Financial frame and capital expenditure
upgraded bp to A1. − Third and fourth, we plan to invest with discipline and are driven by value, including delivering returns consistent with our hurdle rates across our transition growth engines and our oil, gas and refining businesses. We continue to expect capital expenditure to be around $16 bi
Slide 12: Guidance
Guidance Full year 20241 2Q24 vs 1Q241 Reported and underlying* Slightly higher than 2023, of which OPO higher and Reported upstream production: upstream production GLCE lower ▪ expect to be slightly lower Growth from convenience, including TravelCenters of America; stronger Castrol, bp pulse margin
Slide 13: Chief executive officer
Murray fluchincloss Chief executive officer 10
Slide 14: Driving focus and efficiency in our cash costs
Driving focus and efficiency in our cash costs Target to deliver at least $2bn savings Cash costs* reconciliation Savings underpinned by ▪ Portfolio focus ▪ Digital transformation ▪ Supply chain efficiencies ▪ Global capability hubs (1) Represents production and manufacturing expenses plus distribut
Slide 15: Cash cost reductions of around 10%
reductions, or around 10% of our cash costs, that we expect to now deliver. These reductions are expected to come from all parts of the business, as we; – focus our portfolio, – drive continued digital transformation into the business, – continue work with our suppliers to take out waste, and – take
Slide 16: In conclusion, our six priorities are unchanged
1 2 3 Improve safety and Drive focus into Deliver next wave reduce emissions the business of efficiency Safety is our number one priority. And Actively manage our portfolio, Using technology and global capability we are working towards our aim for continued high-grading hubs to increase margin while
Slide 17: 2025 EBITDA targets and closing summary
2025; and – Third, in our TGEs, we expect to deliver $3-4 billion of EBITDA by 2025, growing from around $1 billion in 2023. We see positive momentum in bioenergy and Archaea is on track to bring online 15- 20 new plants per year in each of 2024 and 2025. In convenience, we are focused on the roll-o
Slide 18: Appendix
Appendix 1Q 2024 financial results 13
Slide 19: Gas and low carbon energy
Gas and low carbon energy 1Q23 4Q23 1Q24 Underlying RCPBIT* $bn Production volume Liquids (mbd) 114 99 102 Natural gas (mmcfd) 4,962 4,637 4,708 Total hydrocarbons (mboed) 969 899 914 Average realisations* Liquids ($/bbl) 79.44 78.87 76.92 Natural gas ($/mcf) 7.41 6.18 5.45 Total hydrocarbons ($/boe
Slide 20: Oil production and operations
Oil production and operations 1Q23 4Q23 1Q24 Underlying RCPBIT* $bn Production volume Liquids (mbd) 1,005 1,024 1,056 Natural gas (mmcfd) 2,060 2,305 2,364 Total hydrocarbons (mboed) 1,360 1,421 1,463 Average realisations* Liquids ($/bbl) 71.63 76.22 70.53 Natural gas ($/mcf) 6.57 3.65 2.66 Total hy
Slide 21: Customers and products
Customers and products 1Q23 4Q23 1Q24 Underlying RCPBIT* $bn Customers – convenience & mobility Customers – convenience & mobility 0.7 1.3 0.9 adjusted EBITDA*($bn) Castrol1 adjusted EBITDA ($bn) 0.2 0.3 0.2 Capital expenditure* ($bn) 0.5 0.8 0.6 bp retail sites* – total2 20,700 21,100 21,150 Strate
Slide 22: Strategic progress – last 12 months
Strategic progress – last 12 months Resilient hydrocarbons Convenience and mobility Low carbon energy Scaling-up our bioenergy business Strategic convenience partnership Renewables pipeline* • Archaea – 3 AMD plants online - capacity of >3.5m mmbtu of RNG p.a. • Extended convenience partnership with
Slide 23: Glossary – abbreviations
Glossary – abbreviations ACE Azeri Central East mmcfd Million cubic feet per day. Barrel (bbl) 159 litres, 42 US gallons. mtpa Million tonnes per annum. boe Barrels of oil equivalent. OB&C Other businesses and corporate. CCS Carbon, capture and storage. RC Replacement cost. DD&A Depreciation, deplet
Slide 24: Glossary
Glossary Adjusting items Include gains and losses on the sale of businesses and fixed assets, EBITDA / Replacement cost (RC) profit before interest and tax, excluding net adjusting impairments, environmental and other provisions, restructuring, integration adjusted EBITDA items* before interest and
Slide 25: Glossary
Glossary Net debt Calculated as finance debt, as shown in the balance sheet, plus the fair Renewables Renewable projects satisfying the following criteria until the point they can value of associated derivative financial instruments that are used to hedge pipeline be considered developed to FID: Sit
Slide 26: Glossary
Glossary Surplus cash flow Refers to the net surplus of sources of cash over uses of cash, after Underlying 2024 underlying production, when compared with 2023, is production after reaching the $35 billion net debt target. Sources of cash include net cash production adjusting for acquisitions and di
Slide 27: Glossary
Glossary Working capital Movements in inventories and other current and non-current assets and liabilities as reported in the condensed group cash flow statement. Change in working capital adjusted for inventory holding gains/losses, fair value accounting effects relating to subsidiaries and other a
Slide 28: Resources
Resources bp's website includes information Useful links Investor events about our financial performance, reports and information on investing Why invest in bp 30 July 2024 Second quarter results in bp, dividend payments, AGM and strategy events. Modelling guidance 29 October 2024 Third quarter resu