BP plc · LSE:BP.
BP — Investor Presentation (July 2000)
14 slides from BP's investor presentation, July 2000
Slide 1: Position in the industry
Position in the industry 2 $bn Exxon/ Mobil 1.5 BPAC BASF Shell 1 Dow UCC 0.5 0 Ave. 95/99 Operating Profit* * petrochemicals only
Slide 2: Sector definition
Sector definition Aromatics PX PTA Streams Cross Linkages Crude Refinery Oil Olefins Olefins Polyolefins & Polymers Natural Gas Gas Streams Acetic Acid Acrylonitrile Related BDO Business Value Added
Slide 3: Strategy
Strategy “To be the world’s leading Petrochemical company” Discipline Ambition • Low cost/ high efficiency • Expand in Aromatics driven by our PX/PTA • Biased to higher growth leadership position • Leading market positions • Enhance distinctiveness in • World leading technology Olefins & Polymers •
Slide 4: Highlights
Highlights • Intended purchase of Bayer’s share in Erdoelchemie • Further polyethylene expansion at Grangemouth • Progress on Shanghai cracker • YARACO success • ChemConnect investment • Engineering Polymers sale announced
Slide 5: Progress report to existing targets
Progress report to existing targets $bn What we What we did What we said in by end aim to do in July 1999 1999 2000 Costs 0.4 0.2 0.2 Disposals 2.4 0.6 0.1 Gross capex 4.6 1.2 1.6
Slide 6: Unit cost reductions
Unit cost reductions Delivery on target $ per tonne Baseline 200 Target 150 100 50 0 1998 1999 2000 2001 2002 2003
Slide 7: Capital efficiency
Capital efficiency More product for every dollar Tonnes per $000’s Million tonnes 2.2 25 Capital efficiency Volume 2.1 2.0 1.9 20 1.8 1.7 1.6 15 1996 1997 1998 1999
Slide 8: Volume growth
Volume growth Ahead of the industry Volume index 1990 = 100 170 GDP Industry 160 BP Amoco 150 140 130 120 110 100 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Slide 9: Competitive position
Competitive position From laggard to leader Post tax return on sales ranking 1st 15th 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Slide 10: Aromatics leadership
Aromatics leadership Growth in line with market Current capacity Expansion plans New applications Economic development Technology leadership Capital efficiency
Slide 11: Olefins & Polymers strengthening
Olefins & Polymers strengthening Building advantaged sites Rotterdam Marl Terneuzen Antwerp Erdoelchemie Geel Feluy BP Amoco sites Frankfurt Other sites Olefin pipelines Feedstock pipelines Ludwigshafen
Slide 12: Related Business - BDO
Related Business - BDO Cost leadership through technology Production Costs % Other Producers 100 Typical Producers 50 BDO1 BDO2 0 Cumulative capacity
Slide 13: Capital expenditure
Capital expenditure 2001 - 2003 total $6 bn Aromatics Olefins & Polymers 27% 47% Related Business 26%
Slide 14: Shape of the new company
Shape of the new company Ambition Action Expand driven New builds Aromatics by leading China PX/PTA position Olefins & Enhance Advantaged sites Polymers distinctiveness Erdoelchemie Related Focus portfolio Technology Business on distinctive linkage positions BDO