BP plc · LSE:BP.
BP — FY2006 Earnings Presentation
20 slides from BP's earnings presentation, Feb 6, 2007
Slide 1: BP Full Year 2006 Results and Strategy Update
BP Full Year 2006 Results and Strategy Update 6 February 2007
Slide 2: John Browne, Group Chief Executive
John Browne Group Chief Executive
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 capital expenditure, capital investments, spending on integrity management, annual charges, cost inflation,
Slide 4: 2006: Milestones
2006: Milestones • 2006 reserve replacement 113% • 10 new discoveries including Kaskida, Titania, Urano and in Uvat area • New upstream access: Pakistan, India and Oman • Start-up of 9 new upstream projects • Re-commissioning of Texas City continues • Significant progress in Alternative Energy • $3b
Slide 5: Byron Grote, Chief Financial Officer
Byron Grote Chief Financial Officer
Slide 6: 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 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2005 2006 2005 2006 $/bbl Refining indicator margin 14 Change vs. 2005 12 4Q Year 10 Average realizations 8 Crude oil $/bbl 5% 23% 6 Natural gas $/mc
Slide 7: Financial results
Financial results Change vs. 4Q 2005 Results for the fourth quarter $bn % % per share • Replacement cost profit 3.9 (12)% (6)% • Profit including inventory gains/losses 2.9 (22)% (16)% • Net cash provided by operating activities 5.0 17% 24% ¢/ share • Dividend to be paid next quarter 10.325 +10 % Ch
Slide 8: Sources and uses of cash
Sources and uses of cash Post tax 2005 2006 $bn 40 35 Disposals Disposals 30 Buybacks 25 Buybacks 20 Dividends Operations Dividends Operations Acquisitions* 15 26.7 28.2 10 Organic Organic 5 capex capex 0 Sources Uses Sources Uses * Acquisitions include Rosneft IPO
Slide 9: Strategic indicators
Strategic indicators 1995 2006 Ratio Production (mboed) 1428 3926 2.7 Production/share (boe/ADR/yr) 0.28 0.43 1.5 Reserves (bn boe) 8.4 17.7 2.1 Reserves/share (boe/ADR) 4.5 5.3 1.2 Share of gas in total production 15 37 2.5 (%) Number of countries > 100mbd 3 8 n.a. Total refining capacity (mbd) 200
Slide 10: Tony Hayward, Group Chief Executive Designate
Tony Hayward Group Chief Executive Designate
Slide 11: Exploration & Access
Exploration & Access Exploration • Deepwater Gulf of Mexico − Kaskida • Angola − Titania and Urano • TNK-BP − Uvat area Access • Oman • Pakistan • India • Gulf of Mexico lease sale
Slide 12: Reserves replacement
Reserves replacement % 160 5 year moving average 140 120 100 80 60 40 20 0 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 Reserves replacement for subsidiaries + associates, excludes the effects of acquisitions & divestments, SEC basis
Slide 13: Major projects 2006 key start ups
Major projects 2006 key start ups • Azerbaijan − BTC Pipeline / East Azeri • Algeria − In Amenas • Trinidad − Cannonball • Egypt − Temsah Redevelopment • Angola − Dalia
Slide 14: Underpinning the future
Underpinning the future • The four promises made in February 2003: − Production Growth − Technology Transfer − Corporate Governance − Good Corporate Citizen of Russia • Organisational Capability – building a world-class company
Slide 15: Production outlook
Production outlook Guidance impacted by: • Focus on safety and operational efficiency • PSC entitlements - $40/bbl to $60/bbl price assumption • 2006 divestments • Gulf of Mexico project delays • TNK-BP project phasing • Conservatism − Greater allowance for unplanned downtime − Operational efficienc
Slide 16: Production guidance
Production guidance Guidance based on current portfolio at $60/barrel: 2007 3.8 - 3.9 mmboed Effectively flat vs 2006 after allowing for divestment impact By 2009 More than 4.0 mmboed By 2012 More than 4.3 mmboed Reserve base strong : portfolio lengthening : sustainable growth BP estimates for 2007,
Slide 17: John Browne, Group Chief Executive
John Browne Group Chief Executive
Slide 18: Summary
Summary • Priorities: safety and performance • High-quality asset base • Acting on lessons learned from 2005-06 • Robust and unchanged financial framework
Slide 19: Q&A
Q&A
Slide 20: Slide 20