BP : Slides pdf / 4.6 MB

bp first quarter 2021

financial results presentation

Craig Marshall

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 the impacts of the pandemic on volume, margin and performance; expectations regarding the shape of the COVID-19 recovery; expectations regarding oil and gas prices and demand and future refining margins; plans and expectations regarding the divestment programme, including the amount and timing of proceeds in 2021, and plans and expectations in respect of reaching $25 billion of proceeds by 2025 and expectations that disposal proceeds will reach $5-6 billion during the latter stages of 2021; plans and expectations in respect of maintaining a strong investment grade credit rating; expectations regarding operating cash flow, convenience & mobility EBITDA growth, capital expenditure (including expected capital expenditure of around $13 billion in 2021 and capital expenditure of $14-16 billion thereafter), plans and expectations with respect to dividends, distributions and share buybacks (including plans and expectations to return at least 60% of surplus cash flow to shareholders and to offset dilution from employee share schemes going forward), including the intention of maintaining a dividend of 5.25 cents per ordinary share per quarter; expectations with respect to the timing of cash outflows, including the timing of severance payments associated with the reinvent programme, annual GOM oil spill payment, and an improvement in realized refining margins relative to the quarter-to-date rise in RMM; plans and expectations that convenience and mobility will deliver returns in the range of 15-20%; plans and expectations to develop the UK's largest blue hydrogen facility targeting one gigawatt of production by 2030; plans and expectations with respect to the roll-out of EV charging networks, including plans to have more than 70 thousand bp-operated EV charge points by 2030; expectations to grow margin share from convenience and electrification to around 50% by 2030; plans and expectations regarding bp's hydrocarbons business, including achieving $1.5 billion of annual cost savings by 2023 as part of the $3-4 billion reinvent bp target; expectations regarding refining margins, refinery capacity additions in 2021, refinery utilization rates, North American heavy crude differential, levels of turnaround activity in the refining portfolio, marketing volumes and product demand; plans and expectations regarding the ramp-up and production capacity of the Mad Dog 2, KG D6 Satellite Cluster and Raven projects; plans and expectations to reach 900kboed by the end of 2021; plans and expectations regarding joint ventures and other agreements, including bp's partnership with EnBW to develop offshore wind opportunities in the Irish Sea (including the expectation of achieving 8-10% returns), and bp's partnerships with Amazon, Pure Planet, Utilita, Infosys, BMW, Daimler, Volkswagen Group and other industries and cities; expectations with respect to completion of transactions of agreed disposals; plans and expectations related to potential future transactions; plans and expectations regarding the net output from the recent UK Round 4 offshore wind lease awards; and plans and expectations regarding bp's convenience and mobility business, including plans to nearly double EBITDA from 2019 to 2030 with returns of 15-20%.

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; 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; 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.

April 2021

1Q 2021 financial results

Bernard Looney

Chief executive officer

Strong set of results

$35bn net debt target achieved

buybacks commencing

Disciplined strategic progress