Bp Plc · LSE:BP.
Bp — Q3 2023 Earnings Presentation
29 slides from Bp's earnings presentation, Nov 1, 2023
Slide 1: 3Q 2023 financial results
3Q 2023 financial results 1Q 2023 financial results
Slide 2: Craig Marshall, SVP investor relations
Craig Marshall SVP investor relations Good morning, everyone and welcome to bp’s third quarter 2023 results presentation. I’m here today with Murray Auchincloss, chief executive officer and Kate Thomson, chief financial officer. Before we begin today, let me draw your attention to our cautionary sta
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 announcement
Slide 4: Murray Auchincloss, Chief executive officer
Murray Auchincloss Chief executive officer 4
Slide 5: bp – performing while transforming
bp – performing while transforming Strategy & net Focused on safety Growing zero ambition & quarter-on-quarter value & unchanged delivery returns 3Q 2023 financial results 5 Thanks Craig. Good morning everyone, thanks for joining us. We hosted our investor update in Denver a few weeks ago – focused
Slide 6: Growing the value of bp
Growing the value of bp Investing in today’s oil and gas system 2025 EBITDA2 2030 EBITDA2 Oil and gas EBITDA* – unchanged – revised up Leading delivery model – improving efficiency Growing to 20251 $30 - 32bn & performance – more to come $40 - 42bn $41- 44bn High-quality, Sustaining Resilient hydroc
Slide 7: Performing while transforming
Performing while transforming • Strong operational performance and cash delivery $3.4bn $3.3bn 3Q23 underlying $8.7bn 3Q23 operating earnings cash flow* Continued momentum in strategic $22.3bn $1.5bn $XXbn • delivery 3Q23 net debt* share buyback announced • Executing against our disciplined financia
Slide 8: Strategic delivery momentum
Renewables pipeline Bioenergy Convenience 43.9 GW +8 % vs 37.2GW in 4Q22 Scaling-up Archaea LNG supply Energy – first plant Awarded 4GW Growth in LNG supply online using Archaea YTD growth in rights to develop from third party offtake Modular Design in convenience two offshore wind contracts – Woodf
Slide 9: EV charging, convenience and hydrogen progress
- In EV charging: We continued to accelerate our EV charging ambition across key markets: - We have announced an agreement with Tesla for the future purchase of $100 million of ultra-fast chargers in the US – this is part of our approved $500 million EV charging infrastructure investment in the US p
Slide 10: Kate Thomson, Chief financial officer
Kate Thomson Chief financial officer 9
Slide 11: Underlying results
Underlying results $bn 3Q22 2Q23 3Q23 3Q 2023 vs 2Q 2023 Brent ($/bbl) 100.8 78.1 86.8 Henry Hub ($/mmbtu) 8.2 2.1 2.5 ▪ Higher realised refining margins and lower level of refining NBP (p/therm) 281.0 83.2 82.0 turnaround activity RMM ($/bbl) 35.5 24.7 31.8 * Underlying RCPBIT 13.8 5.6 6.1 ▪ Very s
Slide 12: Cash flow and balance sheet
Cash flow and balance sheet 9M23 surplus cash flow* $bn 28 $bn 3Q22 2Q23 3Q23 24 Disposal proceeds* * IFRS operating cash flow 8.3 6.3 8.7 Surplus cash flow 20 *1 Working capital (build)/release (5.5) 0.1 2.0 Cash dividends 16 Capital expenditure * (3.2) (4.3) (3.6) Lease payments* Divestment and ot
Slide 13: 2023 financial frame
2023 financial frame Resilient Strong investment Disciplined Share dividend grade credit rating investment allocation buybacks 7.270¢ 40% ~$16bn 60% per ordinary share 2023 surplus cash flow* 2023 capital expenditure* 2023 surplus cash flow1,2 for 3Q23 Resilient $40/bbl Target further progress 2024-
Slide 14: Murray Auchincloss, Chief executive officer
Murray Auchincloss Chief executive officer 13
Slide 15: Wrap up: growing the value of bp
3Q 2023 financial results 14 Thanks Kate. Let me wrap up. - We are growing the value of bp – investing in today’s oil and gas system and investing in our transition growth engines. - We are firmly focused on delivering our strategy safely, with discipline. - And in doing so, quarter-on-quarter, to m
Slide 16: Appendix
Appendix 3Q 2023 financial results 16
Slide 17: Guidance
Guidance Full year 2023 4Q23 vs 3Q23 Capital expenditure* ~$16bn1 bp expects fourth quarter 2023 reported upstream production to be broadly flat compared to third quarter 2023. DD&A Slightly above 2022 In its customers business, bp expects seasonally lower volumes with marketing Divestment and o
Slide 18: Momentum in our strategic delivery
Momentum in our strategic delivery 2019 2022 2025 target 2030 aim Resilient Oil and gas production ~200mboed major Deep resource base hydrocarbons (mmboed) 2.6 2.3 project* production ~2.3 provides optionality ~2.0 ~3.8 incl. Russia production Biofuels production (mbd) 23 27 Scale co-processing ~50
Slide 19: Strategic progress – last 12 months
Strategic progress – last 12 months Denotes transition growth* engine Resilient hydrocarbons Convenience and mobility Low carbon energy Scaling-up our bioenergy business bp pulse & Uber Global agreement Renewables pipeline* growth • Acquisition of Archaea Energy Building on our existing relationship
Slide 20: Our capital expenditure and EBITDA targets and aims
Our capital expenditure and EBITDA targets and aims Capital expenditure* $bn EBITDA* $bn 2021 2022 2025 target 2030 aim 2021 2022 2025 target 2030 aim $71/bbl $103/bbl $70/bbl2 $70/bbl2 Resilient 9.1 13.01 9-11 8-10 Resilient 30.63 56.93 40-42 41-44 hydrocarbons hydrocarbons 39-425 Convenience Conve
Slide 21: Gas and low carbon energy
Gas and low carbon energy 3Q22 2Q23 3Q23 Underlying RCPBIT* $bn Production volume 7.0 6.2 Liquids (mbd) 117 103 106 6.0 Natural gas (mmcfd) 5,011 4,641 4,875 5.0 Total hydrocarbons (mboed) 981 903 946 4.0 3.5 3.1 Average realisations* 3.0 2.2 Liquids ($/bbl) 88.03 73.57 76.69 2.0 1.3 Natural gas ($/
Slide 22: Oil production and operations
Oil production and operations 3Q22 2Q23 3Q23 Underlying RCPBIT* $bn Production volume 7.0 Liquids (mbd) 959 1,000 1,011 6.0 5.2 Natural gas (mmcfd) 2,075 2,140 2,155 5.0 4.4 Total hydrocarbons (mboed) 1,317 1,369 1,382 4.0 3.3 3.1 Average realisations* 2.8 3.0 Liquids ($/bbl) 93.14 69.19 71.10 2.0 N
Slide 23: Customers and products
Customers and products 3Q22 2Q23 3Q23 Underlying RCPBIT* $bn Customers – convenience & mobility Customers - convenience & mobility Products - refining & trading Total Customers – convenience & mobility 1.4 1.1 1.2 adjusted EBITDA* 4.0 Castrol1 adjusted EBITDA 0.2 0.2 0.2 2.7 2.8 3.0 Capital expendit
Slide 24: Glossary - abbreviations
Glossary - abbreviations Barrel (bbl) 159 litres, 42 US gallons. mmbtu Million British thermal units. bcm Billion cubic meters. mmcfd Million cubic feet per day. CCS Carbon, capture and storage. mtpa Million tonnes per annum. DD&A Depreciation, depletion and amortisation. MW Megawatts. EV Electric v
Slide 25: Glossary
Glossary Adjusting items Include gains and losses on the sale of businesses and fixed assets, Convenience It is calculated as RC profit before interest and tax for the customers & impairments, environmental and other provisions, restructuring, integration gross margin products segment, excluding RC
Slide 26: Glossary
Glossary Fair value Difference between the way bp manages the economic exposure and Net zero References to global net zero in the phrase, ‘to help the world get to net accounting internally measures performance of certain activities and the way those zero’, means achieving ‘…a balance between anthro
Slide 27: Glossary
Glossary Refining marker Average of regional indicator margins weighted for bp’s crude refining Surplus cash flow Refers to the net surplus of sources of cash over uses of cash, after margin (RMM) capacity in each region. Each regional marker margin is based on product reaching the $35 billion net d
Slide 28: Glossary
Glossary Underlying 2023 underlying production, when compared with 2022, is production after Working capital Movements in inventories and other current and non-current assets and production adjusting for acquisitions and divestments, curtailments, and entitlement liabilities as reported in the conde
Slide 29: Resources
Resources bp's website includes information Useful links Investor events about our financial performance, reports and information on investing Why invest in bp 6 February 2024 Fourth quarter results in bp, dividend payments, AGM and strategy events. Modelling guidance Databook Find out more on bp.co