BP 3Q 2009 Results 27th October 2009
Fergus MacLeod Head of Investor Relations
Cautionary Statement Forward Looking Statements - Cautionary Statement This presentation and the associated slides and discussion contain forward looking statements, particularly those regarding production growth; phasing of production; refining availability; petrochemicals and refining margins; refinery maintenance; costs; capital expenditure and divestments. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may occur in the future. Actual results may differ from those expressed in such statements, depending on a variety of factors, including the timing of bringing new fields on stream; future levels of industry product supply; demand and pricing; operational problems; general economic conditions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations; exchange rate fluctuations; development and use of new technology; changes in public expectations and other changes in business conditions; the actions of competitors; natural disasters and adverse weather conditions; wars and acts of terrorism or sabotage; and other factors discussed elsewhere in this presentation. Reconciliations to GAAP - This presentation also contains financial information which is not presented in accordance with generally accepted accounting principles (GAAP). A quantitative reconciliation of this information to the most directly comparable financial measure calculated and presented in accordance with GAAP can be found on our website at www.bp.com Cautionary Note to US Investors - The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation, such as “resources” and “non-proved reserves”, that the SEC’s guidelines strictly prohibit us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosures in our Form 20-F, SEC File No. 1-06262, available from us at 1 St James’s Square, London SW1Y 4PD. You can also obtain this form from the SEC by calling 1-800-SEC-0330. October 2009 3
Byron Grote Chief Financial Officer
Trading environment $/bbl Liquids realization Gas realization $/mcf 120 20 100 16 80 12 60 8 40 4 20 0 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2008 2009 2008 2009 Refining indicator margin $/bbl Change vs 2008 12 Average realizations 3Q 9 Months 9 Liquids $/bbl (44)% (50)% 6 Natural gas $/mcf (57)% (51)% Total hydrocarbons $/boe (44)% (49)% 3 Refining indicator margin $/bbl (57)% (30)% 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 2008 2009 5
Financial highlights All earnings figures are adjusted for non-operating items and fair value accounting effects Replacement cost profit before interest and tax 3Q08 3Q09 ($bn) 3Q09 vs 3Q08 ($bn) Exploration & Production 11.5 6.3 14 Refining & Marketing 1.3 1.1 Other businesses & corporate 0.1 (0.5) 12 Consolidation adjustment 0.8 0.1 Replacement cost profit before 13.8 6.9 10 interest and tax Interest & minority interest (0.4) (0.3) 8 Tax (4.5) (1.9) Replacement cost profit 8.9 4.7 6 Earnings per share ($c) 47.3 25.0 4 Cash from operations ($bn) 14.9 8.1 Share buybacks ($bn) 0.9 - Dividend ($bn) 2.6 2.6 2 Dividend per share ($c) 14.0 14.0 Capital expenditure excluding 0 5.2 4.7 acquisitions ($bn) 3Q08 E&P R&M OB&C Co.adj. 3Q09 6
Exploration & Production Pre-tax replacement cost profit Production growth YoY Adjusted for non-operating items and fair value accounting effects (4 quarter rolling average) Average hydrocarbon ($bn) % realizations ($/boe) 4 14 80 12 70 3 10 60 8 50 6 40 2 4 30 1 2 20 0 10 0 (2) 0 3Q08 4Q08 1Q09 2Q09 3Q09 3Q08 4Q08 1Q09 2Q09 3Q09 US Non-US TNK-BP Total Average Hydrocarbon realizations ($/boe) • Weaker environment • Momentum in cost reduction • Production growth – strong operational • Higher DD&A in line with guidance performance and absence of hurricanes 7
Refining & Marketing Pre-tax replacement cost profit Refining availability Adjusted for non-operating items and fair value accounting effects Refining indicator Solomon ($bn) margin ($/bbl) availability (%) 96 2.0 12.0 10.0 1.5 8.0 92 1.0 6.0 4.0 0.5 88 2.0 0 0 84 (0.5) (1.0) 80 3Q08 4Q08 1Q09 2Q09 3Q09 3Q08 4Q08 1Q09 2Q09 3Q09 US Non-US Total Refining Margins • Weak refining environment • Strong operational performance • Continued cost reduction 8
Other businesses & corporate Pre-tax replacement cost profit Adjusted for non-operating items and fair value accounting effects ($bn) 0.2 • Adverse foreign exchange effects 0 • Weaker margin environment in Shipping and Solar (0.2) • Underlying quarterly charge in 4Q expected to be in the range of (0.4) $400-$500m (0.6) (0.8) 3Q08 4Q08 1Q09 2Q09 3Q09 9
Sources & uses of cash $bn post tax 9 months 08 9 months 09 35 Disposals 30 Buybacks 25 Disposals 20 Operations Capex Capex 32.5 15 Operations 10 20.4 5 Dividends Dividends 0 Sources Uses Sources Uses 10
Net debt ratio % 40 35 30 25 20 15 10 2001 2002 2003 2004 2005 2006 2007 2008 2009 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
2009 Outlook 2009 guidance 9 months 09 Production* Growth More than 4% Refining availability* Higher More than 5% Cash cost reduction* Around $4bn More than $3bn Divestments Around $2-3bn $1.6bn Capex** Around $20bn $14.1bn * Change versus 2008 ** Organic capital expenditure, excluding acquisitions and asset exchanges 12
Q&A Byron Grote Chief Financial Officer Fergus MacLeod Head of Investor Relations 13
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