BP plc · LSE:BP.
BP — Q1 2005 Earnings Presentation
14 slides from BP's earnings presentation, Apr 26, 2005
Slide 1: 1Q 2005 Results Webcast
1Q 2005 Results Webcast Tuesday 26th April 2005 Byron Grote Chief Financial Officer
Slide 2: Cautionary statement
Cautionary statement Forward looking statements This presentation and the associated slides and discussion contain forward looking statements, particularly those regarding BP’s asset portfolio and changes to it, capital expenditure, cash generation and increases in cash returns, consumption and prod
Slide 3: Trading environment
Trading environment $/bbl Oil realization $/mcf Gas realization 50 8 40 6 30 4 20 10 2 0 0 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2004 2005 2004 2005 $/bbl Refining indicator margin change vs 2004 10 8 Average realizations 1Q Crude oil $/bbl 39% 6 Natural gas $/mcf 12% 4 Total hydrocarbon $/boe 27% 2 0 Refin
Slide 4: Financial results
Financial results change Results for the first quarter $bn vs 1Q’04 z Profit for the quarter Replacement cost profit 5.5 +29% Profit including inventory gains/losses 6.6 +34% z Net cash provided by operating activities 9.4 +34% ¢/ share z Dividend to be paid next quarter 8.5 +26%
Slide 5: Non-operating items (NOIs)
Non-operating items (NOIs) $m 1Q'05 Non-operating items 787 $bn Tax (252) post-tax Total post-tax 535 1.0 0.5 0.0 (0.5) (1.0) (1.5) 1Q 2Q 3Q 4Q 1Q 2004 2005
Slide 6: 1Q'05 vs 1Q'04 group result
1Q’05 vs 1Q’04 group result $bn Start-up & repair costs post tax Turnarounds Environmental settlement Tax rate 7 6 5 4 Upstream volumes Supply optimization Lubricants 3 Business marketing 2 1 0 1Q 04 NOIs Price / Forex A&D DD&A Other 1Q 05 Margin
Slide 7: Segment results
Segment results $bn pre-tax* E&P $bn pre-tax* R&M 7 7 6 6 5 5 4 4 3 3 2 2 1 1 0 0 1Q 04 1Q 05 1Q 04 1Q 05 NOIs included $25m $780m $(160)m $(27)m above z Higher realizations z Strong refining margin z Increased production volume: z Significantly lower retail marketing margin TNK-BP z 95% refining av
Slide 8: Segment results
Segment results $bn pre-tax* GP&R $bn pre-tax* OB&C 1.2 1.2 1.0 1.0 0.8 0.8 0.6 0.6 0.4 0.4 0.2 0.2 0.0 0.0 (0.2) (0.2) (0.4) (0.4) 1Q 04 1Q 05 1Q 04 1Q 05 NOIs included - $105m $1,257m $(71)m above z Improved NGL margins z PetroChina and Sinopec shares disposal in 1Q 04 (NOI) z Improved Olefins and
Slide 9: Strategic progress
Strategic progress z New discoveries in Angola; new licences in Algeria z New field start-ups: Mad Dog, Azeri and Clair z Milestones: Atlantis platform loaded; Thunder Horse moved to location z Projects sanctioned: Tangguh in Indonesia; Saqqara gas field in Egypt z Acetic acid joint venture contract
Slide 10: Sources and uses of cash
Sources and uses of cash $bn post tax 12 1Q 05 1Q 04 10 Disposals 8 Disposals Buybacks 6 Buybacks Dividends 4 Operations Acquisitions Operations 7.0 Dividends 9.4 2 Organic Organic capex capex 0 Sources Uses Sources Uses
Slide 11: Pre-tax cash returns
Pre-tax cash returns % 40 35 30 25 20 1Q 2Q 3Q 4Q 1Q 2004 2005 pre-tax cash return = RCP before interest & tax – non-operating items + DD&A + interest and tax from equity accounted entities / average operating capital employed
Slide 12: Net debt ratio
Net debt ratio % 40 35 30 25 20 15 10 1Q 2Q 3Q 4Q 1Q 2004 2005 Net debt ratio = net debt / (net debt + equity)
Slide 13: Shareholder distributions
Shareholder distributions $bn – full year $bn – first quarter 16 4.0 Buybacks 14 3.5 Dividends paid 12 3.0 Share issues 10 2.5 8 2.0 6 1.5 4 1.0 2 0.5 0 0.0 (2) (0.5) 2002 2003 2004 1Q 05
Slide 14: Q&A
Q&A Byron Grote Chief Financial Officer Fergus MacLeod Head of Investor Relations