Hello and welcome. This is BPs second quarter 2014 results webcast and conference call. Im Jess Mitchell, BPs Head of Investor Relations and Im here with our Group Chief Executive Bob Dudley, and our Chief Financial Officer Brian…
Thank you Jess. Hello everyone and wherever you are in the world, Id like to thank you for joining us today. 4
Its been another active and, I think, a successful quarter at BP. We continue to move with momentum towards our key goals, not least our commitment to delivering the 10-point plan we first laid out to you in 2011. The demonstration of…
So let me start with an overview of progress in the first half of 2014, beginning with the portfolio. Having completed the 38 billion divestment programme in 2013, we announced a further 10 billion of divestments by the end of 2015. We…
BP has also signed some important deals in the second quarter, notably a Heads of Agreement with CNOOC, the Chinese National Offshore Oil Corporation, for a 20-year LNG supply contract. So progress is visible and all of this supports our…
Thanks Bob. 7
BPs underlying replacement cost profit in the second quarter was 3.6 billion, up 34% on the same period a year ago and 13% higher than the first quarter of 2014. Compared to a year ago, the result reflects: Increased upstream…
In the Upstream, the underlying second quarter replacement cost profit before interest and tax of 4.7 billion compares with 4.3 billion a year ago and 4.4 billion in the first quarter of 2014. Compared to the second quarter of 2013 the…
Partly offset by: A lower gas marketing and trading result, following strong first quarter performance; and Lower gas realisations. Looking ahead, we expect third quarter 2014 reported production to be lower than the second quarter,…
BPs share of Rosneft underlying net income was 1 billion in the second quarter, compared to 220 million a year ago and 270 million in the first quarter. The second quarter result benefited primarily from foreign exchange impacts. BPs…
In the Downstream, the second quarter underlying replacement cost profit before interest and tax was 730 million compared with 1.2 billion a year ago and 1 billion in the first quarter. The fuels business reported an underlying…
In Other Businesses and Corporate, we reported a pre-tax underlying replacement cost charge of 440 million for the second quarter, in line with guidance. The underlying effective tax rate for the second quarter was 33%. 12
The charge for the Gulf of Mexico oil spill was 260 million in the second quarter, primarily reflecting an increase in the provision for future litigation relating to the spill. The total cumulative pre-tax charge for the incident to…
Turning to divestments. As Bob noted, following the completion of our 38 billion divestment programme and the sale of our share of TNK-BP to Rosneft in 2013, we continue to actively manage the portfolio. In October we announced plans to…
Moving now to cash flow, this slide compares our sources and uses of cash in the first half of 2014 to the same period a year ago. Operating cash flow in the first half was 16.1 billion, of which 7.9 billion was generated in the second…
Net debt at the end of the second quarter was 24.4 billion with gearing of 15.5% compared to 12.3% a year ago. This largely reflects the impact of our share buyback programme over the course of the year. Our intention remains to keep…
Our guidance for the full year remains unchanged, as outlined to you in February. We expect full year underlying production to grow compared to 2013, after adjusting for the impacts of the Abu Dhabi onshore concession expiry and…
Looking at shareholder distributions. In April we increased the quarterly dividend by 8.3% year-on-year, reflecting our confidence in the delivery of the 10-point plan and growth in operating cash flow over the medium term. The Board will…
Looking further out to 2018 and to remind you of the outlook we shared with you in March. We remain confident of delivering operating cash flow of 30 to 31 billion dollars in 2014. Our first half operating cash delivery of 16.1 billion…
Thank you Brian. 20
So let me give you a brief update on the main Gulf of Mexico related legal proceedings in the United States. The first and second phases of the MDL 2179 trial have been completed, and the court is yet to rule on either. The third phase…
In Russia, as you are aware, recent geo-political events have continued to create levels of uncertainty in the region which we monitor closely. At the business level, as you have seen, Rosneft had a good quarter. In June, it held its…
Turning to the Upstream, our primary focus here of course continues to be carrying out operations safely and reliably while delivering the milestones we expect to underpin the growth in operating cash for the long term. Summarising…
We continue with the steady delivery of new projects. As I mentioned earlier, we have seen five major project start-ups in the first half of the year and our remaining 2014 project start-ups are on track. After a major programme of…
Looking at major projects in more detail. Most recently, the TOTAL-operated CLOV project in Angola achieved first oil on the 12th of June, joining this years other start- ups: Na Kika Phase 3, Atlantis North Expansion and the…
In addition to this momentum on new projects we are also steadily improving the reliability of our operations. We are seeing the result of our investment in turnarounds and systematic defect elimination. Across our operated assets we…
Turning to wells, our Global Wells Organisation is expected to deliver our highest operated production from new wells and interventions since 2010. We have placed eight Gulf of Mexico wells online in the first half of the year, de-risking…
In the Downstream, we continued to increase heavy crude processing at the Whiting refinery, reaching a peak of 270 thousand barrels per day during the quarter. Also in fuels, our marketing businesses continues enhanced customer offers…
So let me end today by summing up our central message to you. BP is an increasingly focused oil and gas business a business with momentum and a business doing exactly what we said it would do. As weve gone about shaping BPs investor…
And we continue to focus on operating our assets safely, reliably and more efficiently. So we have two solid quarters behind us this year and a sense of real momentum in our company. I am confident this will support our enduring…
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