BP plc · LSE:BP.
BP — Q1 2010 Earnings Presentation
14 slides from BP's earnings presentation, Apr 27, 2010
Slide 1: 1Q 2010 Results Presentation
1Q 2010 Results Presentation 27th April 2010
Slide 2: Fergus MacLeod, Head of Investor Relations
Fergus MacLeod Head of Investor Relations
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 production, second quarter turn-around activities and the effect on volumes, costs and margins; our refin
Slide 4: Byron Grote, Chief Financial Officer
Byron Grote Chief Financial Officer
Slide 5: Trading environment
Trading environment Liquids realization Gas realization 80 12 60 8 $/mcf $/bbl 40 4 20 0 0 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2009 2010 2009 2010 Refining indicator margin Average realizations Change vs 1Q09 8 Liquids $/bbl 74% 6 Natural gas $/mcf 17% $/bbl 4 Total hydrocarbons $/boe 57% 2 Refining indic
Slide 6: Financial results
Financial results All earnings figures are adjusted for non-operating items and fair value accounting effects ($bn) 1Q09 1Q10 Replacement cost profit before interest and tax 1Q10 vs 1Q09 ($bn) Exploration & Production 3.9 8.2 10 Refining & Marketing 1.5 0.8 Other businesses & corporate (0.4) (0.2) 9
Slide 7: Exploration & Production
Exploration & Production Pre-tax replacement cost profit Adjusted for non-operating items and fair value accounting effects 10 50 Average hydrocarbon realizations ($/boe) • Stronger environment 8 40 • Reported production broadly flat – underlying up 1% 6 30 • Unit production costs down 3% ($bn) • Hi
Slide 8: Refining & Marketing
Refining & Marketing Pre-tax replacement cost profit Adjusted for non-operating items and fair value accounting effects 2.0 12.0 • Weaker refining margins with Refining indicator margin ($/bbl) 10.0 some recovery from 4Q 1.5 8.0 • Weak supply and trading 1.0 6.0 contribution ($bn) 4.0 • Further cost
Slide 9: Other businesses & corporate
Other businesses & corporate Pre-tax replacement cost profit Adjusted for non-operating items and fair value accounting effects 0.2 • Favourable foreign exchange effects 0 • Lower costs (0.2) • Guidance remains at ($bn) $400 million average underlying quarterly charge (0.4) (0.6) (0.8) 1Q09 2Q09 3Q0
Slide 10: Sources & uses of cash
Sources & uses of cash 9 1Q09 1Q10 8 Disposals 7 6 Disposals $bn post tax 5 Capex Capex 4 Operations 3 Operations 2 Dividends Dividends 1 0 Sources Uses Sources Uses 10
Slide 11: Net debt ratio
Net debt ratio % 40 35 30 25 20 15 10 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Net debt ratio = net debt / (net debt + equity) Net debt includes the fair value of associated derivative financial instruments used to hedge finance debt 11
Slide 12: 2010 Outlook
2010 Outlook 2010 Guidance 1Q10 Production Slightly lower Broadly flat Cash costs* (year-on-year change) Further reduction Lower Organic capital expenditure** ~ $20bn $3.8bn Divestment proceeds $2-3bn $0.1bn Full year effective tax rate 33%-34% 34% * Excluding the effects of changes in exchange rate
Slide 13: Strategy
Strategy • Upstream profit growth, cost and capital efficiency • Downstream turnaround, cost efficiency • Alternative Energy focused and disciplined • Corporate efficiency 13
Slide 14: Q&A
Q&A Byron Grote Chief Financial Officer Fergus MacLeod Head of Investor Relations 14