BP plc · LSE:BP.
BP — Q3 2010 Earnings Presentation
15 slides from BP's earnings presentation, Nov 2, 2010
Slide 1: 3Q 2010 Results Presentation
3Q 2010 Results Presentation 2 November 2010
Slide 2: Fergus MacLeod, Head of Investor Relations
Fergus MacLeod Head of Investor Relations
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 full year estimated underlying effective tax rate; expected average underlying quarterly charges for Othe
Slide 4: Byron Grote, Chief Financial Officer
Byron Grote Chief Financial Officer
Slide 5: 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 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2009 2010 2009 2010 Change vs 2009 Refining indicator margin Average realizations 3Q YTD 8 Liquids $/bbl 12% 37% 6 Natural gas $/mcf 40% 28% $/bbl 4 Total hydrocarbons
Slide 6: Financial results
Financial results All earnings figures are adjusted for the Gulf of Mexico oil spill, other non-operating items and fair value accounting effects. Replacement cost profit before interest and tax ($bn) 3Q09 3Q10 3Q10 vs 3Q09 ($bn) Exploration & Production 6.3 6.5 8 Refining & Marketing 1.1 1.6 Other
Slide 7: Gulf of Mexico oil spill costs and provisions
Gulf of Mexico oil spill costs and provisions (pre-tax, pre-partner recovery) $bn 2Q10 3Q10 • Income statement – Charge for the period 32.2 7.7 • Balance sheet * – Brought forward 0 30.1 – Charge/ (credit) to income statement 32.2 7.7 – Payments into escrow fund 0 (3.0) – Other related payments in t
Slide 8: Exploration & Production
Exploration & Production Replacement cost profit before interest and tax Adjusted for non-operating items and fair value accounting effects 10 50 Average hydrocarbon realizations ($/boe) • Reported production 4% lower – 45 adjusting for PSA entitlement 8 40 effects and A&D 3% lower 35 − Seasonal tur
Slide 9: 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 1.5 8.0 • Continued strong operational 1.0 performance in fuels value chains 6.0 4.0 • Continued strong delivery in
Slide 10: 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) • Guidance remains at $400 million ($bn) average underlying charge per (0.4) quarter (0.6) (0.8) 3Q09 4Q09 1Q10 2Q10 3Q10 10
Slide 11: Sources & uses of cash
Sources & uses of cash YTD 2009 YTD 2010 35 • Disposal proceeds of $3.7 billion for 30 deals closed in 3Q Disposals Gulf of 25 Mexico • Further $5.0 billion of cash received for disposals closing after 3Q ($bn post-tax) Disposals oil spill 20 reported as short-term debt 15 Capex • Cash at 30 Septemb
Slide 12: Net debt
Net debt 30 25 20 ($bn) 15 Range of $10 to $15bn 10 5 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 1. Net debt includes the fair value of associated derivative financial instruments used to hedge finance debt 2. Cash of $5.0bn received as deposits for disposals completing after 30 Septem
Slide 13: Strategic progress and outlook
Strategic progress and outlook New access and projects • Azerbaijan – agreed terms for Shah Deniz phase 2, signed new Shafag-Asiman PSA, additional 3% interest in ACG field • China – 40% interest in block 42/05 in South China Sea • North Sea – 7 blocks awarded in latest offshore licensing round • Fi
Slide 14: Rebuilding trust and restoring shareholder value
Rebuilding trust and restoring shareholder value • New Safety and Operational Risk function reporting directly to CEO • Restructuring of Upstream into separate functional divisions: Exploration, Development and Production • Review of third-party contractor management • Review of how the Group incent
Slide 15: Q&A
Q&A Byron Grote Chief Financial Officer Fergus MacLeod Head of Investor Relations 15