presentation to the money related group.


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presentation to the monetary group. 2Q outcomes tuesday 29th july 2003 ... also, instabilities and genuine results may vary from those communicated ...
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Slide 1

presentation to the money related group 2Q results tuesday 29 th july 2003

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Forward Looking Statements Cautionary Statement This presentation and the related slides and discourse contain forward looking articulations especially those with respect to future execution, costs, income, returns, profits, capital use, ventures, divestments, outfitting, BP\'s benefit portfolio and changes in it, timing of pending exchanges, offer repurchases, annuity store bolster, stores and creation and other pattern projections. Forward looking proclamations by their tendency include dangers and vulnerabilities and real results may vary from those communicated in such articulations relying upon an assortment of components including the accompanying: the planning of bringing new fields on stream; industry item supply; request and valuing; operational issues; general monetary conditions; political strength and financial development in important ranges of the world; changes in administrative controls; swapping scale variances; advancement and utilization of new innovation and fruitful business connections; the activities of contenders; regular fiascos and different changes in business conditions; delayed antagonistic climate conditions; and wars and demonstrations of terrorism or damage. July 2003

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John Browne CEO presentation

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motivation the year so far gathering results vital advancement q&a

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the year so far solid environment – particularly US gas market technique on track capex and divestments as arranged five new benefit fixates on track TNK-BP fulfillment expected this mid year solid income and asset report $ profit up 8.5%: $2bn in offer buybacks

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Byron Grote CFO 2Q 2003 execution

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exchanging environment 2Q02 1Q03 2Q03 1H03 1H02 normal acknowledge 22.81 29.82 24.90 liquids $/bbl 27.47 20.81 2.45 3.87 3.39 natural gas $/mcf 3.64 2.36 19.01 26.39 22.43 aggregate hydrocarbons $/boe 24.49 17.63 pointer edges 2.06 4.52 3.27 refining $/bbl 3.89 1.85 109 96 120* chemicals $/te 108* 95 *provisional

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money related results % change results for the second quarter versus 2Q02 proforma $ 3.1bn 42 substitution cost $ 2.5bn 87 verifiable cost $ 1.6bn (21) net money from working activity $ 7.3bn 43 profit 6.5¢/share 8 ROACE (proforma) 17.0% 29 results for the main half versus 1H02 proforma $ 6.8bn 81 substitution cost $ 5.6bn 150 authentic cost $ 5.9bn 76 net money from working activity $13.3bn 52 profit 12.75¢/offer 9 ROACE (proforma) 18.6% 56

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% contender range* 30 25 20 15 10 5 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2003 2001 2002 2000 profit for normal capital utilized *BP, XOM, Shell, CVX, TOT roace = (proforma result + after expense account premium + MSI)/proforma ACE

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$bn post-charge $ 0.6 b illion cost sway p ensions , i nflation 8 other 7 r & m $ 0.5 b illion income sway 6 g as p erformance, i nterest, t hatchet 5 o il 4 3 2 1 0 1H02 cost/forex a&d dd&a other 1H03 edge 1H 2003 versus 1H 2002 result proforma premise

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mboed 3700 3600  1H 2003 normal pre-divestments 2002 avg. 3500 2001 avg. divestments 3400 3300 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2001 2002 2003 generation volumes

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unique and excellent things $bn pre-charge 1.0 0.5 0 (0.5) (1.0) (1.5) (2.0) 1 Q 2Q 3Q 4Q 1Q 2Q 200 2 2003

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$bn 1H02 1H03 20 18 16 transfers 14 buybacks 12 profits 10 acquisitions 8 natural capex operations 6 8.8 13.3 4 charge, premium & msi 2 0 sources utilizes sources utilizes sources and employments of money

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needs with the expectation of complimentary trade stream out 2H03 subject to the exchanging environment we mean to: expansion benefits arrangement subsidizing to coordinate 2002 shortage end 2002 deficiency of $2.2bn in supported annuity arranges $0.3bn financed 1H03 up to $2bn extra subsidizing arranged complete further share buybacks

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$bn 1H03 2003 plan natural capex 6.1 14.0 - 14.5 divestments (4.1) (3.0 - 6.0) capital spending & divestments

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% 40 35 30 25 20 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1999 2000 2001 2002 2003 equipping proforma adapting = net obligation/(net obligation + value – procurement alteration)

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John Browne CEO methodology

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settling on decisions: upstream inclination to speculation stripping to acknowledge esteem and enhance quality putting resources into five new upstream benefit focuses and TNK-BP keeping up monetary order: outfitting staying inside target band post TNK-BP money inflows and surges adjusted over the long–term at $16 enhancing efficiency: nonstop concentrate on vital cost administration enhancing gross edge: concentrate on gross edge driving refining & promoting benefits checking progress through an adjusted structure of pointers conveying procedure

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make – new revelations in Angola and Egypt assemble – every single new venture on track upstream: markers of vital advancement expected date on-stream 2003 2004 2005 2007 2006 Na Kika Holstein Kizomba A Xikomba Australia T4 Mad Dog Thunder Horse Azeri & BTC Kizomba B Trinidad T4 Trinidad T3 Kapok Bombax Jasmin Atlantis Dalia Kizomba C Shah Deniz Greater Plutonio

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portfolio – enhancing quality $5bn of divestments declared ROACE accretive costs/capital necessities lessened TNK-BP on track for 3Q close potential creation limit sways: divestments: c.140mboed diminish in 2003 c.220mboed diminish in entire year 2004 TNK-BP: c.140mboed increment in 2003* c.440mboed increment in entire year 2004 upstream: markers of key advancement *assumes TNK-BP closes 1 st Sep 2003 : +/ - one month on shutting = +/ - appx. 35,000 bpd of yearly limit

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upstream: pointers of key advancement costs on track for 2003 lifting cost target capital spending on track for lower end of $9.8 - $10.2bn territory for 2003

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gp&r: markers of key advancement augmenting esteem through gas showcasing #1 wholesale gas advertiser in North America value gas to LNG plants up 45% 2 mtpa of LNG redirected to the US third LNG bearer, British Merchant, conveyed developing NGL rebuilding supports execution in high gas cost environment

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refining & promoting: markers of key advancement edges proceeded with edge extension 96.7% refining accessibility 1.7% same site retail volume development separated fuel offer 3.5% same store deals development costs on track to convey $300m cost diminishment

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petrochemicals: markers of vital advancement methodology usage on track ROACE change, portfolio re-center, unit cost decreases concentrate on center items procured expanded shares in Asian PTA JVs Shanghai complex development accumulates pace rebuilding finished offer of PT Peni (Indonesia) declared offer of modern intermediates business

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TNK-BP upgrade on-track for consummation this mid year official group named cooperative energies being distinguished generation development c.11% 1Q on 1Q trade rates rising income solid June 26th consenting to of arrangement on every single material angle $2.4bn trade at close $1.25bn out BP normal shares/annum for a long time Slavneft under thought workshop to be hung on October sixteenth

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conveying esteem outside environment stays positive an adjusted structure for worth conveyance development budgetary judiciousness profit strategy stock purchase backs $2bn reported in february now finish: $6bn since mid 2000

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John Browne CEO Byron Grote CFO Tony Hayward CEO, e&p Fergus MacLeod financial specialist relations q&a session

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