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Q4 and FY 2018 Results and Strategy Update – BP Plc

BP Plc · Feb 5, 2019 · 46 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 1
    BP 4Q and full year 2018 Results and strategy update 5 February 2019 keep advancing BP 4Q & FULL YEAR 2018 RESULTS & STRATEGY UPDATE 1
  2. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 2
    Craig Marshall Head of Investor Relations BP 4Q and full year 2018 Results and strategy update keep advancing BP 4Q & FULL YEAR 2018 RESULTS & STRATEGY UPDATE 2
  3. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 3
    Bob Dudley Group Chief Executive BP 4Q and full year 2018 Results and strategy update keep advancing BP 4Q & FULL YEAR 2018 RESULTS & STRATEGY UPDATE 4
  4. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 4
    Agenda Strategic update, low carbon 4Q results and financial & energy transition frame Bob Dudley Brian Gilvary Group chief executive Chief financial officer Upstream Downstream Bernard Looney Tufan Erginbilgic Summary &…
  5. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 5
    2018 highlights Full year results Strategic delivery Advancing the energy transition 12.7bn BHP Low carbon ambitions underlying replacement US onshore transaction Reduce Improve Create cost profit Advanced mobility agenda 26.1bn 6…
  6. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 6
    Safe, reliable and efficient execution Process Safety Events (PSE) number of instances 140 PSE Tier 1 PSE Tier 2 96 % 120 2018 Upstream plant reliability1 100 80 60 40 95 % 20 2018 Refining availability 0 2014 2015 2016…
  7. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 7
    Macro environment OECD oil stocks1 Brent forward strip2 Mbbls /bbl 3200 85 80 3000 75 70 2800 65 60 2600 55 2400 50 45 2200 40 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2015 2016 2017 2018 2019 2020 2021 2022…
  8. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 8
    The dual challenge Societys need for More Lower greenhouse energy gas emissions Increasing population and Need to fall by 50% by prosperity expected to increase 2040 to be on track to demand 20-30% by 2040 meet Paris climate…
  9. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 9
    Growing demand for energy 2040 Energy demand scenarios1 Projected oil demand1 billion tonnes of oil equivalent mmbd Gas Coal Nuclear Hydro Renewables Oil 120 20 Evolving +33% transition +20% 100 Unmet oil 15 demand2 Even faster…
  10. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 10
    Advancing a low carbon future Reducing Improving Creating emissions in our our products low carbon businesses operations net growth in operational Provide lower Expand low carbon and emissions out to 2025 emissions gas…
  11. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 11
    BP strategic priorities Growing Market led Venturing and advantaged oil growth in the low carbon and gas in the Downstream businesses Upstream across multiple fronts Modernising the whole group keep advancing BP 4Q & FULL…
  12. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 12
    Brian Gilvary Chief Financial Officer BP 4Q and full year 2018 Results and strategy update keep advancing BP 4Q & FULL YEAR 2018 RESULTS & STRATEGY UPDATE 13
  13. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 13
    Environment Brent oil price1 Henry Hub gas price1 Refining Marker Margin2 /bbl /mmbtu /bbl 90 7.0 18 85 16 80 6.0 75 14 5.0 70 12 65 4.0 60 10 55 3.0 8 50 45 2.0 6 Jan Apr Jul Oct Dec Jan Apr Jul Oct Dec Jan Apr Jul Oct Dec…
  14. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 14
    4Q 2018 results summary bn 4Q17 3Q18 4Q18 Underlying replacement cost profit 2.1 3.8 3.5 4Q 2018 vs 3Q 2018 1 Underlying operating cash flow 6.2 6.6 7.1 Lower Upstream 2 liquids Underlying RCPBIT realisations Upstream 2.2 4.0 3.9…
  15. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 15
    Sources and uses of cash 2017 organic cash inflows/outflows bn 2018 organic cash inflows/outflows bn 30 30 25 25 Share buybacks 20 Dividends2 20 Dividends2 15 Underlying 15 Underlying cash flow1 cash flow1 10 10 Organic capex…
  16. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 16
    2019 guidance 2018 2019 1Q 2019 actual guidance outlook Upstream production excluding Rosneft 2.5mboed higher than 20181 Upstream including Rosneft 3.7mboed Broadly flat production reflecting Organic capital expenditure 15.1bn…
  17. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 17
    Medium term financial frame 2019 - 2021 Organic free cash flow per share3 55/bbl1 Cost and capital 15-17bn p.a. discipline organic capital expenditure Divestments 10bn over next 2 years Gearing 20-30% Current 10% ROACE full…
  18. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 18
    Bernard Looney Chief Executive, Upstream BP 4Q and full year 2018 Results and strategy update keep advancing BP 4Q & FULL YEAR 2018 RESULTS & STRATEGY UPDATE 19
  19. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 19
    Upstream Upstreamkey messages key messages Continued track record of delivery 1 continued safety progress 20 projects delivered on average under budget and on schedule 1 45% reduction2 in unit production costs base decline below…
  20. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 20
    Continued track record of delivery FEBRUARY 2018 GUIDANCE 2018 DELIVERY 5-7% underlying 8% underlying production growth1 production growth1 12-13bn organic capital 12bn organic capital expenditure expenditure 6 major project…
  21. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 21
    Major projects on track BP net production from major projects 20 delivered, 15 to go operating construction 2016 2017 2018 1,000 mboed In Salah Southern Fields West Nile Delta Atoll Phase 1 Taurus/Libra Thunder Horse Water Taas…
  22. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 22
    BPX Energy - improved value creation potential Acquisition of BHPs US onshore assets Attractive NPV1 and near-term value delivery bn (1) NPV: net present value at 10% discount rate, 55/bbl WTI, and Midland discount of 7/bbl…
  23. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 23
    2021 free cash flow growth underpinned Pre-tax free cash flow1 bn 2019 2021 impact of 2018 prices 2018 Production underlying 5% CAGR2 14-15bn production Organic capital 13-14bn 13-14bn expenditure Major projects 5 start-ups…
  24. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 24
    High-quality growth capacity Resources bn boe 50 12bn boe of proved volumes Non-proved resources3 13bn boe of high-quality discovered resource we 3 25 expect to progress in our plan 2 Pre-FID Includes 8bn boe of new well investment…
  25. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 25
    Next wave of growth options Alaska UK Liberty Seagull Clair SW Russia Kharampur Aker BP (Turonian) US Gulf of Mexico Thunder Horse South Mauritania Expansion 2 & Senegal Azerbaijan Thunder Horse BPX Energy Tortue Phases 1-3…
  26. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 26
    Transformation - creating billions of dollars of value Production Transforming Digital Fast paced digital twin inspections models tie-backs Apex, and the rest of Improving safety and Digital models Mindset and agile the BP production…
  27. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 27
    Upstream Upstreamkey messages key messages Continued track record of delivery 1 continued safety progress 20 projects delivered on average under budget and on schedule 1 45% reduction2 in unit production costs base decline below…
  28. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 28
    Tufan Erginbilgic Chief Executive, Downstream BP 4Q and full year 2018 Results and strategy update keep advancing BP 4Q & FULL YEAR 2018 RESULTS & STRATEGY UPDATE 29
  29. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 29
    Downstream strategy Strategic priorities Safety Profitable Advantaged Efficiency and Low carbon 1 core value marketing growth manufacturing simplification and digital Key metrics 3bn 9-10bn 20% underlying free cash flow2…
  30. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 30
    Strategy delivering record earnings on track for 2021 targets Pre-tax earnings1 Continued underlying earnings3 growth bn bn 8 4.0 6 1.4 6 3.0 4.0 2016-21 4 3.0 4 7.6 4.4 2 2 3.0 delivered 2014-16 0 2 0 2014 Environment…
  31. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 31
    Cash flow growth, earnings quality and attractive returns Growing free cash flow1 Improved earnings quality Attractive pre-tax returns bn refining marker margin /bbl % 25 21 RMM to generate 20 15% pre-tax returns 20 Adjusted…
  32. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 32
    Leading Downstream business Downstream net income per barrel Downstream year on year net income growth2 /bbl, rolling 4-quarters % 10 20 20% 8.2 5 0 0% Competitor range1 2.6 3Q18 0 -20 -20% 2014 2015 2016 2017 2018…
  33. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 33
    Marketing material earnings and growing Pre-tax earnings1 Competitive site profitability bn Germany REWE convenience 2.8bn 4.1 fuels marketing 4 earnings 200% 200 17% growth vs 2017 2.7 1.2bn 2 100 100% non-fuel retail gross…
  34. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 34
    Manufacturing further underlying earnings growth potential Underlying earnings growth1 bn 95% Whiting refinery 0.9 2.4 Refining availability Sustained record Record refinery availability for 2nd throughput2 consecutive year 2…
  35. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 35
    Value creation from new business models and digital Advanced mobility Fastest, most convenient charging Electrification, ride-pooling network Scale-up in UK, & autonomous vehicles Germany and China Bio and low carbon 70m from Bio…
  36. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 36
    Downstream key messages Strong track record of delivery and on track to meet targets 1 2018 delivery 1.4bn underlying1 growth in marketing & manufacturing since 2016 6.9bn free cash flow 2 21% pre-tax returns 2021 targets 3bn…
  37. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 37
    Bob Dudley Group Chief Executive BP 4Q and full year 2018 Results and strategy update keep advancing BP 4Q & FULL YEAR 2018 RESULTS & STRATEGY UPDATE 38
  38. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 38
    Alternative Energy five established low carbon businesses Renewable fuels Focus on safety, predictability, optimisation and efficiency 10Mtpa Biofuels industrial Partnerships and innovation capacity Renewable power Developing…
  39. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 39
    Our commitment to advancing a low carbon future A clear approach Strict financial framework Five focus Reducing areas 500m emissions in our operations 2018 investments 500m Planned for 2019 Improving our products Creating…
  40. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 40
    The BP proposition Safe, reliable and Safer efficient execution Growing sustainable free Fit for the A distinctive portfolio fit cash flow and distributions future for a changing world to shareholders over the long-term…
  41. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 41
    Q&A Bob Dudley Brian Gilvary Group chief executive Chief financial officer Bernard Looney Tufan Erginbilgic Craig Marshall Chief executive, Chief executive, Head of Investor Upstream Downstream Relations keep advancing BP…
  42. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 42
    Appendix BP 4Q and full year 2018 Results and strategy update keep advancing BP 4Q & FULL YEAR 2018 RESULTS & STRATEGY UPDATE 43
  43. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 43
    4Q 2018 summary bn 4Q17 3Q18 4Q18 % Y-o-Y % Q-o-Q Upstream 2.2 4.0 3.9 Downstream 1.5 2.1 2.2 Other businesses & corporate (0.4) (0.3) (0.3) 1 Underlying business RCPBIT 3.3 5.8 5.7 73% (1%) 2 Rosneft 0.3 0.9 0.4 Consolidation…
  44. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 44
    Upstream Volume Underlying RCPBIT3 mboed bn 4000 5.0 Non-US US Total RCPBIT Group production1 4.0 3.9 3500 4.0 3.5 3.2 3000 Upstream production 3.0 excluding Rosneft 2.2 2500 2.0 2000 1.0 1500 0.0 4Q17 1Q18 2Q18 3Q18 4Q18 4Q17…
  45. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 45
    Downstream Underlying RCPBIT1 95% Refining environment 4Q17 3Q18 4Q18 bn Refining availability RMM (/bbl) 14.4 14.7 11.0 Fuels Lubricants Petrochemicals Total RCPBIT 3Q18: 96% 2.5 2.1 2.2 2.0 1.8 4Q 2018 versus 3Q 2018 1.5…
  46. Q4 and FY 2018 Results and Strategy Update – BP Plc – slide 46
    Rosneft BP share of underlying net income1 BP share of Rosneft dividend bn bn 1.0 Annual dividend for previous year Half yearly dividend paid 2 0.8 0.8 0.6 0.6 0.4 0.2 0.4 0.0 2016 2017 2018 0.2 1.2mmboed 0.0 4Q17…

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