BP plc · LSE:BP.
BP — Q1 2007 Earnings Presentation
13 slides from BP's earnings presentation, Apr 24, 2007
Slide 1: 1Q 2007 Results Webcast
1Q 2007 Results Webcast Tuesday 24th April 2007 Byron Grote Chief Financial Officer
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 annual charges, future performance, oil and gas production and gas resources. By their nature, forward-look
Slide 3: Trading environment
Trading environment $/bbl $/mcf Gas realization Liquids realization 70 12 60 10 50 8 40 6 30 4 20 10 2 0 0 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2006 2007 2006 2007 $/bbl Refining indicator margin 14 12 10 1Q 07 change Average realizations vs. 1Q 06 8 6 Liquids $/bbl (4)% 4 Natural gas $/mcf (12)% 2 Total h
Slide 4: Financial results
Financial results Change vs. 1Q 2006 Results for the first quarter $bn % % per share • Replacement cost profit 4.4 (17)% (12)% • Profit including inventory gains/losses 4.7 (17)% (12)% • Net cash provided by operating activities 8.0 (11)% (5)% ¢/share • Dividend to be paid next quarter 10.325 +10 %
Slide 5: Exploration & Production
Exploration & Production $bn pre-tax 9 • Lower realizations 8 7 • Lower volumes 6 • Sector specific inflation 5 • Greater integrity spend 4 • Higher DD&A 3 • Lower TNK-BP contribution 2 1 • Non-Operating Items (NOI) 0 − Disposal gains 1Q 06 NOI Underlying 1Q 07 − Embedded derivatives 7,209 Underlyin
Slide 6: Refining & Marketing
Refining & Marketing $bn pre-tax 1.8 • Higher refining and marketing 1.6 margins 1.4 • Higher throughput 1.2 1.0 • Operational issues 0.8 • IFRS fair value accounting charge 0.6 • Lower supply optimization 0.4 • Greater integrity spend 0.2 • Non-Operating Items (NOI) 0.0 1Q 06 NOI Underlying 1Q 07 −
Slide 7: Gas, Power & Renewables
Gas, Power & Renewables $bn pre-tax 0.4 • Lower marketing & trading contribution 0.3 • Absence of IFRS fair value accounting charge 0.2 • Stronger NGL performance 0.1 0.0 1Q 06 NOI Underlying 1Q 07 356 Underlying result $m 197 (55) Non-operating items $m 9 301 Total result $m 206
Slide 8: Other Business & Corporate
Other Business & Corporate $bn pre-tax 0.0 • Expected annual charge of $900m±$200m (0.1) (0.2) (0.3) 1Q 06 NOI Underlying 1Q 07 (226) Underlying result $m (150) 9 Non-operating items $m 34 (217) Total result $m (116)
Slide 9: Strategic progress
Strategic progress • Process Safety Management: Incorporation of Baker Panel recommendations • Upstream access: Oman • Exploration success: Angola and Egypt • Refining: Nerefco/Coryton • Alternative Energy growth • BP Energy Biosciences Institute established
Slide 10: Sources and uses of cash
Sources and uses of cash $bn post tax 1Q 06 1Q 07 10 9 Disposals Disposals 8 Buybacks 7 Buybacks 6 Dividends Operations Operations 5 8.9 8.0 Dividends Acquisitions 4 3 2 Organic Organic capex capex 1 0 Sources Uses Sources Uses
Slide 11: Net debt ratio
Net debt ratio % 40 35 30 25 20 15 10 1Q 2Q 3Q 4Q 1Q 2006 2007 Net debt ratio = net debt / (net debt + equity)
Slide 12: Shareholder distributions
Shareholder distributions Full Year First Quarter $bn 24 6 Buybacks 21 5 Dividends 18 Share issues 4 15 12 3 9 2 6 1 3 0 0 (3) 2002 2003 2004 2005 2006 (1) 1Q 07
Slide 13: Q&A
Q&A Byron Grote Chief Financial Officer Fergus MacLeod Head of Investor Relations