Moving BP forward Introduction Bob Dudley 3Q 2011 results Byron Grote Moving BP forward Bob Dudley Q&A Bob Dudley Group Chief Executive Byron Grote Chief Financial Officer 4
Moving BP Forward Safety : Trust : Value Growth Putting safety and operational risk management at the heart of the company New Safety and Operational Risk organization Investment in maintenance Reorganized upstream Rebuilding trust…
Moving BP Forward A 10 point plan What you can expect 1. Relentless focus on safety and managing risk 2. Play to our strengths Exploration Deepwater Giant fields Gas value chains World class downstream business Relationships and…
Moving BP Forward A 10 point plan What you can measure 6. Active portfolio management to continue Increase overall divestment programme to 45bn versus current program of 30bn Further 15bn over the next two years including two US…
Financial results All earnings figures are adjusted for the costs associated with the Gulf of Mexico oil spill, other non-operating items and fair value accounting effects Replacement cost profit before interest and tax bn 3Q10 3Q11…
Exploration & Production Replacement cost profit before interest and tax Stronger environment Adjusted for non-operating items and fair value accounting effects Production 12% lower 10 80 Average hydrocarbon realizations /boe…
TNK-BP BP share of TNK-BP net income and dividend 2.0 Strong environment Higher production 1.5 bn 1.0 0.5 0 3Q10 4Q10 1Q11 2Q11 3Q11 Dividend Share of net income 12
Refining & Marketing Replacement cost profit before interest and tax Texas City refinery capacity Adjusted for non-operating items and fair value accounting effects restored 2.5 15.0 Improved refining environment Higher supply and…
Other businesses & corporate Replacement cost profit before interest and tax Adjusted for non-operating items and fair value accounting effects 0.2 Beneficial foreign exchange effects versus prior year 0 Higher charge expected…
Gulf of Mexico oil spill costs and provisions bn pre-tax(1) FY10 YTD11 Income statement Charge for the period 40.9 0.4 Balance sheet(2) Brought forward 23.3 Charge to income statement 40.9 0.4 Payments into Trust Fund (5.0)…
Sources & uses of cash YTD 2010 YTD 2011 Year-to-date 2011 operating cash 25 flow is 17.1 billion 2.2 billion of disposals 20 Disposals completed during 3Q (6.4 billion Inorganic capex(2) year-to-date 2011) Inorganic Disposals…
Net debt ratio 35 30 25 20 to 30% 20 % 15 10 to 20% 10 5 0 2008 2009 2010 2011 2012 Net debt ratio = net debt / (net debt + equity) Net debt includes the fair value of associated derivative financial instruments used…
Moving BP Forward Additional segment disclosure Focus on growing cash flow Around 50% improvement in operating cash flow by 2014 versus 2011(1) 15bn additional divestments by end 2013; 45bn in total Increased investment to grow the…
Bob Dudley Group Chief Executive 19
Putting safety and operational risk management at the heart of the company Safety and Operational Risk organization Growing deep capability Operating Management System Driving continuous improvement Implementing lessons from the Gulf…
Rebuilding trust Progress in the US Focus shifting from response to recovery Funding economic and environmental restoration 7bn in claims and government payments(1) 1bn committed to early restoration projects 10bn paid into Trust…
Value growth: Upstream Framework Risk reduction Increased investment with a focus on exploration Active portfolio management Growing operating cash faster than production Growth engines Deepwater Gas value chains Giant…
Increased investment with a focus on exploration Continued Access Success North Sea Caspian Central & Southern North Sea Shafag-Asiman 300km2 1,100km2 China US Gulf of Mexico South China Sea OCS lease sale 213 16,700km2 (1)…
Increased investment with a focus on exploration Building for the future Planned exploration wells 15-25 12-17 6 2011 2012 2013 On track to double exploration investment Continue to access new acreage Leveraging seismic…
Active portfolio management Continuing active phase Production impact of divestments from 2010 Balancing criteria of focus, risk and growth 2010 2011 2012 2013 2014 0 Concentration in promising areas where we operate (100) New…
Growing upstream operating cash faster than production Operating cash Excluding TNK-BP 2011 operating Growth driven by Divested 2014 operating cash estimate Angola, operations and cash estimate at oil price of Gulf of Mexico,…
Momentum in operating cash flow Potential rig activity in the Gulf of Mexico 3 rigs currently operating In year production from new wells mboed Additional 2 by year end Further 2 by end 2012 Potential Gulf of Mexico rig schedule 2011…
TNK-BP dividends and growth Dividends (BP net) World class integrated oil and gas 10 Initial Investment company 8 Dividends 6 4.2bn boe of proved reserves(1) 4 bn 1mmboed BP net production 2 0 Future growth potential (2)…
Value growth World class downstream business The highest quality downstream business Hydrocarbon value chains delivering leading returns and cash flow growth Incorporating three business models Fuels (including optimization and…
World class downstream business Safe and reliable operations Becoming a leader in process safety Industry leading reliability and availability Excellent execution Compliance, rigour, discipline, efficient use of resources Effective…
Refining & Marketing Earnings momentum Sources of earnings growth in a 2009 refining environment 14 10 9 12 Delta incremental earnings bn WRMP 8 Actual pre-tax returns % 10 7 6 8 Growth market 5 positions and cash 6…
Refining & Marketing Operating cash flow momentum Sustaining leading returns in the base Operating cash flow Invest to maintain competitive position Improve efficiency and margin capture capabilities Other Working capital efficiency…
Moving BP Forward Momentum in operating cash flow Around 50% growth in operating cash flow by 2014 at 100/bbl(1) Key enablers: Restoration of high value production Growth from new projects Whiting refinery upgrade coming onstream…
Moving BP Forward Safety : Trust : Value Growth ) 17 major upstream projects (1 w onstream by end 2014(2) lf o ash c Whiting onstream 2013 g atin p er Payments to US Trust Fund end in 2012 o in th o w Reducing uncertainties…
Moving BP Forward A 10 point plan What you can expect 1. Relentless focus on safety and managing risk 2. Play to our strengths 3. Stronger and more focused 4. Simpler and more standardized 5. More visibility and transparency to value…
Q&A Bob Dudley Group Chief Executive Byron Grote Chief Financial Officer 37
Loading...
