BP : Presentation slides pdf / 3.2 MB

bp second quarter 2021

Financial results presentation

3 August 2021

svp investor relations

Cautionary statement

In order to utilize the 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of 1995 (the 'PSLRA') and the general doctrine of cautionary statements, bp is providing the following cautionary statement: The discussion in this

results announcement contains certain forecasts, projections and forward-looking statements - that is, statements related to future, not past events and circumstances - with respect to the financial condition, results of operations and businesses of bp and certain of the plans and objectives of bp with respect to these items. These statements may generally, but not always, be identified by the use of words such as 'will', 'expects', 'is expected to', 'aims', 'should', 'may', 'objective', 'is likely to', 'intends', 'believes', 'anticipates', 'plans', 'we see', 'focus on' or similar expressions.

In particular, the following, among other statements, are all forward looking in nature: expectations regarding the COVID-19 pandemic, including its risks, impacts, consequences, duration, continued restrictions, challenges, bp's response, the impact on bp's financial performance (including cash flows and net debt), operations and credit losses, and the impact on the trading environment, oil and gas prices, and global GDP; expectations regarding the shape of the COVID-19 recovery and the pace of transition to a lower-carbon economy and energy system; plans, expectations and assumptions regarding oil and gas demand, supply or prices, the timing of production of reserves, or decision making by OPEC+; expectations regarding refining margins, refinery utilization rates and product demand; expectations regarding bp's future financial performance and cash flows; expectations regarding future upstream production and project ramp-up; expectations regarding supply shortages; expectations with respect to completion of transactions and the timing and amount of proceeds of agreed disposals; expectations with regards to bp's transformation to an IEC; plans and expectations regarding bp's financial framework; expectations regarding price assumptions used in accounting estimates; expectations regarding quarterly dividends and share buybacks, including bp's plan to increase the second quarter dividend by 4% per ordinary share, bp's expectation based on its current forecasts, at an oil price of around $60 per barrel Brent and subject to the board's discretion each quarter of being able to deliver a buyback of around $1.0 billion per quarter on average and have capacity for an annual increase in the dividend per ordinary share of around

4% through 2025, and bp's plans to commence a buyback from first half surplus cash flow and execute a share buyback of $1.4 billion prior to third quarter 2021 results; expectations of outlining plans for the fourth-quarter share buyback at the time of

bp's third quarter results; plans and expectations regarding net debt; plans and expectations regarding bp's credit rating, including in respect of maintaining a strong investment grade credit rating; plans and expectations of allocating 40% of surplus cash flow to the balance sheet and using 60% of surplus cash flow for share buybacks for 2021; plans and expectations regarding capital discipline; expectations regarding bp's renewables pipeline and development of hydrogen and CCUS projects (including those in Germany and Teesside, UK); plans and expectations regarding the growth of electrification and the implications of the energy transition and changing energy mix for bp; plans and expectations for bp's work on EV charging, including plans to grow bp's Pulse brand EV charging points to more than 16,000; plans and expectations regarding bp's entry into offshore wind; plans and expectations regarding bp's partnership with EnBW to submit a bid on offshore wind acreage off the coast of Scotland; plans and expectations of taking full ownership of the Thorntons JV and integration of Thorntons with bp's other capabilities in the region; plans and expectations for bp's retail footprint in the UK; expectations regarding returns in offshore wind, hydrogen and CCUS and their implications for bp's trading capability; expectations with respect to completion of transactions of agreed disposals; plans and expectations related to potential future transactions; plans and expectations regarding joint ventures, partnership and other collaborations with CEMEX, Qantas, Aberdeen, Houston, Azerbaijan, Marks & Spencer, Uber, BMW, Microsoft and Amazon; and plans and expectations regarding bp's trading business.

By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will or may occur in the future and are outside the control of bp.

Actual results may differ materially from those expressed in such statements, depending on a variety of factors, including: the extent and duration of the impact of current market conditions including the volatility of oil prices, the impact of COVID-19,

overall global economic and business conditions impacting our business and demand for our products as well as the specific factors identified in the discussions accompanying such forward-looking statements; changes in consumer preferences and societal expectations; the pace of development and adoption of alternative energy solutions; developments in policy, law, regulation, technology and markets, including societal and investor sentiment, related to the issue of climate change; the receipt of relevant third party and/or regulatory approvals; the timing and level of maintenance and/or turnaround activity; the timing and volume of refinery additions and outages; the timing of bringing new fields onstream; the timing, quantum and nature of certain acquisitions and divestments; future levels of industry product supply, demand and pricing, including supply growth in North America and continued base oil and additive supply shortages; OPEC+ quota restrictions; PSA and TSC effects; operational and safety problems; potential lapses in product quality; economic and financial market conditions generally or in various countries and regions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations; regulatory or legal actions including the types of enforcement action pursued and the nature of remedies sought or imposed; the actions of prosecutors, regulatory authorities and courts; delays in the processes for resolving claims; amounts ultimately payable and timing of payments relating to the Gulf of Mexico oil spill; exchange rate fluctuations; development and use of new technology; recruitment and retention of a skilled workforce; the success or otherwise of partnering; the actions of competitors, trading partners, contractors, subcontractors, creditors, rating agencies and others; our access to future credit resources; business disruption and crisis management; the impact on our reputation of ethical misconduct and non-compliance with regulatory obligations; trading losses; major uninsured losses; decisions by Rosneft's management and board of directors; the actions of contractors; natural disasters and adverse weather conditions; changes in public expectations and other changes to business conditions; wars and acts of terrorism; cyber-attacks or sabotage; and other factors discussed elsewhere in this report, as well those factors discussed under "Risk factors" in bp Annual Report and Form 20-F 2020 as filed with the US Securities and Exchange Commission.

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.

Tables and projections in this presentation are bp projections unless otherwise stated.

August 2021

* For items marked with an asterisk throughout this document, definitions are provided in the glossary

2Q 2021 financial results

Chief executive officer

Strong results and	Growth of resilient	Executing buyback	Strong progress
continued net debt*	dividend within a	from surplus cash flow*	in our transformation
reduction in an improving	disciplined financial frame		to an integrated
environment			energy company
underlying earnings	for 2Q21	for 1H21

cash flow

net debt*

2Q 2021 financial results