BP - Earnings call transcript Q1 2022

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Operator

Welcome to the BP presentation to the financial community Webcast and Conference Call. I now hand over to Craig Marshall, Head of Investor Relations.

Craig Marshall

Good morning, everyone, and welcome to BP's First Quarter 2022 Results Presentation. I'm here today with Bernard Looney, Chief Executive Officer; and Murray Auchincloss, Chief Financial Officer.

Before we begin today, let me draw your attention to our cautionary statement.

will estimates, statements, plans we refer those presentation, our to and today's make including forward-looking that During expectations. our this Actual materially results and on due differ in slide to the and factors we outcomes U.K. could note and SEC filings. refer and filings announcement for stock SEC to our details. Please report, exchange annual more documents These available our on are website. Bernard. over I'll now to hand

Bernard Looney

Thanks, Craig. for thanks us. Hello, joining everyone, and

and for country is markets and employee the today impact matching Russia's attack of in world. And relief everyone a As terrible it BP At have leave the energy consequences against effort. BP, is for the wish also relief globally a for we aware, humanitarian on of support been the cost we donations backdrop terrible contribution people BP is region. people staff the the know, supporting having efforts, situation having the Ukraine by many to the as Foundation and an response war paid creating are living, to the the and in financial who reporting we volunteer of on through to around the

customers job, flowing We working at about To can to at what day provide economies core hard Europe, are with to while and its that that remaining where need. provide in energy it looking we fully is on keeping in end, the do the also is focused the contact governments are support, we which needed. energy close

exit XX.XX% the XXth we Rosneft. On shareholding in decision February, the our of took to

involvement and Rosneft, continue. process concluding simply represented military Russia. decision all a other could impacts in thorough state-owned Board plan with our a that The enterprise, undertook action exit we a people. Russia's to BP's our addition, fundamental change This not In that businesses

Russian nationals. Before the majority XXX Russia, conflict, in had around the employees we

have this all redeployment. until and significant decision has their We a course, talk end material results, including loss a options And reported we this looking charge, we financial today's at this to for to a least after quarter. them, at will and taken look XXXX first quarter have can headline wages continuing impact. of doing to the With a result, are pay shortly. of non-cash as Murray

continues business to underlying perform. the However,

accommodated which the resilient unchanged our dividends strategy. as Importantly, Rosneft within we our of financial loss future remains have frame, does

we Now emphasize the energy turning faces need today, deliver mutually only energy We an that why provide view, cleaner, are XXXX the not resilient the BP's to to is to but of energy accelerate is system our strategy. exactly investing same not at to outlined integrated Current become strategy and our reliable scale that events exclusive. world energy also And This trilemma. to energy hydrocarbons future. company in security in these while affordable. the at an time

creation the And since. Co. production we of bringing strategic a executing ever step-by-step discovery In delivering have an see can been focus have in and from each in In oil the have efficient our supply start Gas through progress rapid XXXX strong made We resilient slide, an we We are convenience the tons and ambitions increased our XX-year of refinery. started project Azule you our we mobility, at from per strategy. advanced more as and hydrocarbons, starting evaluation where of year Lingen to with of LNG our strategic potential X.X SAF is areas. to XXXX ongoing, Expansion in combine investment. in our biofuels, partnered signed making Gulf high-margin around in Mexico. We Energy, assets those agreement Brazil of for million of operations an major up innovative the Angolan Herschel the deal Eni signed with to

and network charging of and to Group wind we Dotzenrath, our EV new our option the in wind lease scale have and position Since the excited start our announcing strategic EV a support advanced are decade capital roll charging rollout partnership we the Volkswagen launching fast discipline. have over to £X with with the invest focus across partnership energy, continue next in we Express fast plans to retail to with Uber, Rotterdam, an to the on offshore plans green more hydrogen of an infrastructure with Europe with a global an Aberdeen billion a we to as X.X in the SAF develop and welcome DHL venture joint EVP, ScotWind charging award announced Japan, for agreement strategic In building available in around out a U.K. collaboration Ana strategy, form a locations by Here, hub. We year, form partnership United the convenient an make XXX-megawatt signed to with Uber increased Kingdom. agreement aiming of City signed agreement to a convenience signed Eats gigawatts XXXX. announced Marubeni net. than supply low to carbon project strategic X,XXX Council on offshore We've hydrogen with to

As real see, have you we momentum. can

real bioenergy, as our transform to an we executing and growth our engines, energy integrated renewables strategy, delivering five EV hydrogen, progress transition are company. across We charging, convenience,

hand Let me who now our through will first Murray, to quarter Murray? run over results.

Murray Auchincloss

everyone. morning, good and Bernard, Thanks,

Let the me macro with start environment.

early of the for in its Brent almost participants. above self both upward years. backdrop averaged Russia's In to This the price. XX% reduced Turning attack XX by Against of market impact highest $XXX prices. sanctions And fourth the per reached increased first premium of capacity, barrel, levels quarter, level on Brent first oil on pressure to reflects and an and Ukraine March, sanctioning quarter. the risk the added spare a

volatility. of there of Looking OPEC+ economic to disruption increased level elevated supply, the capacity reflects the impact impact price growth. and on for on remains uncertainties of Russian This the war risk of around supply, ongoing an demand ahead, the the COVID

Moving prices drove increase an in on risk Europe. quarter Heightened markets. concern to gas in supply average

grew. in Europe. heavily remains the export term the prices moved to were dependent remained peaks forward Forward demand the higher, as U.S. XXXX but below short on broadly prices flat, prices pipeline outlook and Russian flows higher and gas production spot also average moved in LNG Quarter

tight the industry barrel increased where significantly has a invasion. margins RMM oil in the product stocks due sharply ongoing particularly OECD product quarter, to market. This by average. since by XX% and have refining disruptions, below Russia February $XX.XX above remain been supply X% rose stands driven expect year Europe. in second currently refining in margins this. particularly were to elevated Finally, the In and first move five per industry quarter their we to average BP's

as item. any from having BP's for results, February, at $XX a impairment businesses first, separate the to today's as with the billion, possible adjusting Turning than longer its currently resulted Rosneft to and zero. to This decision pretax two Rosneft stepped with as Russia, of level as a to of the February. of shareholding other estimate value value charge net $XX.X of the The XXth the value no Board This carrying classified representing is its shareholding not comprises, longer billion exit IFRS, down in under the it that report in change full equity segment. of pretax take a uncertainty the impact BP BP's an XXth of no nominated the has directors of of means charge will Rosneft accounts of

XXth in the principally to income third, of of representing impact share date around this, post-tax around February. the has $XX.X Rosneft's And billion billion, foreign an incremental $XXX equity. Second, from a the February. losses investment accumulated pretax on offset BP's the due of XXth exchange to the initial quarter Of until of $X.X of an of million first charge

to of decision billion, includes This in charge carrying And on other of exit adjusting Rosneft's a BP's its item. an resulted include billion in full finally, as of withholding $X.X those items tax estimated value release with Rosneft Russian liability undistributed a recorded profit. which BP's is Russia tax has relating addition, In of adjusting businesses also deferred to pretax businesses. $X.X the the share

billion Taken resulted of charge in together, $XX.X reduction equity post-tax first a in items quarter. total billion $XX.X adjusting the and these of a

Rosneft around income annual of BP's As tax underlying BP's result XXXX the share expected XX%. increased exclusion from underlying has of effective rate for net disclosed XXXX to our in BP's report,

of that and expected the result of accounting Rosneft billion. ahead, in the loss have we resilient further around interest of equity Rosneft, Looking for lowered hydrocarbons a group XXth from our earnings indicated on $X for February, future the longer no targets our as by EBIDA XXXX

We have also lowered amount. the our respective XXXX EBIDA same aims by

Rosneft EBIDA EBIDA from and barrel base expect to and price to at XXXX through to XXXX XXXX share X% level a this $XX future around constant per assumptions other excluding deliver XXXX per hydrocarbons to and years $XX X% XXXX, levels resilient both CAGR around real. between XHXX/XHXX from expect aim at periods, real sustain However, through continue our we and hold to Russian to businesses

billion unchanged. XX% on group growth target ROACE capital XXXX, our we resilient EBITDA aim with $X financial by includes guidance and priorities to are expected to Our the grow dividends $XX XXXX frame This loss the from of have businesses of of And by also unchanged. to Rosneft future accommodated within transition distributions our investment. XX% to billion our five and remaining

slides have presented we other the reflect Russian and of the X Rosneft the this key exclusion businesses. of to in appendix on some updated February Finally, presentation, our to

relating adjusting In reported to loss included billion, investments of $XX.X $XX.X Moving Russia. an items billion. we IFRS first pretax to results. quarter, primarily This in our the of

reported we to replacement underlying of an compared $X.X cost items, profit billion last Excluding billion adjusting quarter. $X.X

In marketing production stronger seasonality, Turning In higher the fourth lags margins exceptional realizations Gulf and result gas operations, benefited COVID exceptional oil and to energy, the the price Germany gas and from rising of low prices. lower and and This and was oil resilient the in and result. to the China products, commodity and lower Mexico trading to impact ongoing carbon quarter. benefited impacts impact performance refining of group result. notably from offset customers result due despite despite of trading partly UAE. In higher in reflects was a production. business result realizations the and products the compared an The result by customer's the

the from uncertainty impacts elevated in Looking ahead, due there and an conflict COVID-XX ongoing developing restrictions. the level is Ukraine of to

For of quarter, per the ordinary $X.XX first in quarter. dividend announced a has BP payable the second share

fair adjusting was cash $X.X $X value with Capital range and were billion quarter. disposal Turning cash the also billion, included of $X.X $X inventory billion $X.X capital This to XXXX guidance remaining billion. holding $XX accounting unchanged. build for with expenditure of of Operating our flow. XXXX, working flow after effects. billion first in a gains was to the $X.X $XX in billion for billion in And billion proceeds guidance to

fourth with underlying intend included flow employee quarter of for of share dilution April vesting results. $X.X debt the to $X.X flow offset Reflecting consecutive net $XX.X program reach the surplus awards XX. the expected on $X.X cash quarter with to of repurchased XXXX billion program from of strong the prior we $XXX announced $X.X billion, year billion. we quarter million to cash This billion delivery, in quarter to fell $X.X first billion During the shares. a billion execute quarter, and second This results. buyback completed was of reporting And eighth full

As already outlined, financial unchanged. our remains frame

and and frame We this plans. in range, disciplined supports transparency our clear barrel the sheet plans And a balance XXXX I'll price dividend, returning per well and provides back maintaining serves our investment us volatile inorganics, surplus surplus also and continue $XX to a of including XX% buybacks, subject together this discipline provides to drives believe around around cash transparent We today's with to resilience a conclude balance provides share CapEx to An average framework for to XXXX point remain to presentation. our strong cash allocating flow committed now capital environment. sheet. investment investment-grade while strengthening cash to XXXX mechanism to flow for balance hand rating. investors, to Bernard credit distributions allocation

Bernard Looney

uncertain take backdrop, the are to of hard Thanks, any stop the questions customers value progressing delivering might we our same an that in steadfast should our you provide now shareholders. all to At in that need. service We time, and have. an working focus long-term on Murray. here delivery, and To transformation are summarize, energy we against for on performing, economies IEC, while our

Operator

Instructions] [Operator

Craig Marshall

everybody, Thank for now. listening. We're Okay. you, going turn again to to Q&A

and try look and to on finish hour. going tight are to this the We keep

first more Christyan, to So a JPMorgan. to so than to chance me, a Christyan please as your Malek good the Christyan… note, limit question from two, On questions that we're give through. morning. can get no reminder, as everybody from going take we usual, at

Christyan Malek

Sorry, can me? you hear

Craig Marshall

Yes, we can. Thanks.

Christyan Malek

on congratulations So results. the

years context I outlook. - in bearish the sort ago, your of update have you you. view. want to know you just of maybe for question question, within I stick And First - macro [indiscernible] to longer I think that to outlook? your talked one context, an more three sort all, is Thank And just macro on of a about

Bernard Looney

hopeful good. Christyan. morning, like It sounds Very as Good you're traveling well.

probably outlook, barrels a the kind today talk of oil off macro in million day. about would market and gas general, of On estimate Russian X think the there's I we if the sanctions prices probably number for We And there That number, existing will that come this crude. if real, we month think, could shall see. we into sanctions, effect obviously, further is when increase double.

lot happen a with low As oil, uncertainty a happen it I Europe, zero at gas China, mean, what's relatively to policy knock-on the but and of And I think, what's the in a and but the we moment, on inflation stocks step oil gas, filling of whether economic I Libya, Spare COVID bit relatively to Iran, global is growth, what's of out with the moment, low going on there course, in U.S. capacity with back, uncertainty, be low. are happening lot relatively think going on in impacts shale. overall. to going what's in at happen

So a uncertainties. lot of

continue us, that think will where world think, order to leave a in the does I probably I be of where day. the volatility

and a to remain energy we medium we So expect prices, the I expect continued to for prices outlook strong term. volatile think in near probably

it's the our all, we our And terms best longer shifted do be environment Murray an that come think you outlook. In the doing middle that current We'll that has with at and of back year. annual this of if assumptions, we I then to updating in on how, term basis. medium

So we'll come back to that year. midst the of

Christyan Malek

follow for of longer the around particularly and the to sort and to framing, prove towards should allocation in a were a was see we're we around it your environment. backdrop up, to guess investing just shale, higher And whether I oil Sure. that if higher capital question more

- that reframing of when change, of we usual, shift of sort So sort your a two outlook we in and long-run event slow renewable? sort very as [indiscernible]? the much sort no could and outlook, an sort down year Or it around what to is of sort relative of of see expect you ago, investments sort were two macro just to business you a framing allocate of fundamental years potentially

Bernard Looney

frame consistent. that one have of I think we things clear, very the and good very it's financial is been our is

discipline is day. think the between the and $XX this order investment We'll spend year. I billion of $XX billion on capital

$XX to the to Our the $XX continue medium-term needs. and energy to There's going advancing is to in no world We're continue guidance which invest around invest is the hydrocarbons that what increasingly change needs that. world in we're billion the today, capital also to going transition, billion. to

the plans, our that of plan to with discipline important have, change no the day. So staying the being we order

Christyan Malek

much. you very Thank Excellent.

Bernard Looney

Christyan. Thanks,

Craig Marshall

take next We'll Christyan. Biraj? Thanks, at Biraj from RBC. the question Borkhataria

Biraj Borkhataria

question. Hi. Thanks my taking for

looking at commodity is a last let's But move tax. that a, the as up question, sort following why through environment, any the terms just Obviously, versus is this P&L. the just through prices in which cash flowing straightforward say, price I'm assuming are first there a year? of increases But the reason of on differential at one. to And The is, in lag just normalize second rate then one. a wouldn't we tax hopefully, commodity one cash steady-state

energy you you're other the stakeholders from the the trilemma. crisis sticking investments. about do more, you're capital thinking, management are release today medium-term just strategy, you away U.K. medium over longer-term press I'm current probably out the governments to but as the referenced with thinking You or and to term. framework put Presumably, asking the moving on

where slowing spending is you're transition, accelerate to you sort from? that you. the capital Thank or where Or coming more are less? If of down doing

Bernard Looney

previous you. life, Murray, tax, think. your thank Biraj, favorite your from subject I

Murray Auchincloss

Thanks, was our to effective saw Bernard. tax Morning, that on rate try you and rate still deny on effective I an basis, Biraj, cash underlying rate, XX%. that.

we little tricky of I normally headline quarter. it scale this at than Our rates. saw is. was given pretty impairment cash wouldn't a look the that bit tax the the as that They're lower

and a cycle. tax would you lower So time, the bit little over close through ETR expect cash is rate to maybe CTR

talked can of I than tax tax, an one what from slightly we profits. rate first of So really that in that And XX% any underlying would effective that. about deviate cash on that's mix of was course, mix anticipate less that and a basis, on quarter you saw quarter based profits, the

Bernard Looney

Very good.

the you question. So for Biraj, thank

seeing the we're role Yes, just ago, actually trilemma. needs we is That reliable purpose, two company let's strategy energy our said, an stepping secure, It's to think the is you also energy I energy, that's about needs this solve the energy a world as an needs life, it's the And that affordable. is just not years is cleaner think said trilemma back, of energy it that it it and its energy company. as energy and purpose, trilemma. in solve to integrated and but or role integrated now.

do by accelerating invested and that, Now by is go billion XX% referred non-hydrocarbons in by U.K., the XXXX, XX% will a which laid XXXX that we framework financial we and how the that? And transition. that probably non-hydrocarbons in in And of the do few XXXX. just to U.K., in the our into that doing that years that majority of number £XX of hydrocarbons. capital investing increase in out. the you The part do same time you not about is we capital will away, into over energy be the have that the in hydrocarbons us by we time, our or investment do that at We today X% same today, our see with of investing at going

from here support within the historically enable education of policies Britain resources are or that. capital low this has us system And the of XX% to is been to to carbon are that. our We resources and our resources, the do will that. And do that XX% place in in to the that's now investment XX% increasing The us to to are through here the U.K. hydrocarbon that, we be enable to up go to said in skills here what XX% decade have because capital.

national development in integrated or a in seeing in [ph] energy will new many transition investing Sea today in see Investing at time, of U.K., like you in the you're level. in what a it of ways, we're investing microcosm do on Merlok bringing the Biraj future, overall, country at in a North solar, billion wind, electrification. on doing the the So like hydrocarbons energy strategy investing investing we £X the a offshore the and investing same in hydrogen, in system and

XX% part and to you're XX%. the our XX% increase an from weighting plan increase that U.K. seeing helps. So the XX% of in Hopefully, that to capital to is the in of

Craig Marshall

thanks Biraj, Martijn next morning. question. Morgan for question Rats Stanley. your the take from good We'll at Martin,

Martijn Rats

good got morning. may. Yeah, I two if I've questions,

of perspective refining I the And now important still guided little very is slack buybacks how that going running of is X% me you I billion. but this well, the of high. in XQ to is a wondering in you've sort sort an then you BP's BP product the secondly, your could the year think It the order forward, billion, are this year developing extremely issue. think how ask X% results, you at system? X% of Are $X that neutralized refineries back I full question? effectively on sort first cap of about you've can - DPS maximum all, going With was capacity, the the is of the is So shares. you you've The by $XXX your that on perhaps The all do strikes hoping buy now market so results are shares, there growth of global comments for. much going see in for markets. that's half was bit clear, for share to elaborate question that combined the perhaps I'm of around nonetheless. answer announced tightness of But product First be, more the prices

wondering buybacks the of stick dividend that, distributes point So to X% to actually, growth second incremental you I and if the dollars, want is And perhaps sort I'd send be was growth interested about X% if there the at are too? guidance, that or this that to that start if some you of guidance whether company which the actually your in total of in could sort be DPS half, shrink. reconsidered absolute dividend message billions and the thoughts

Bernard Looney

answer let why good. dividend question. Murray Martijn, the Very I don't

Murray Auchincloss

frame Yeah it Financial until Martijn s, thanks. changes. change Martijn. is intact, intact, Thanks, around guidance it's doesn't

now. at quarter, through are And grow at assuming to revisit annum we'll we on each have We you $XX decide of year That right the capacity billion remains is first And $X But have guidance X% well what course, priority $XX are the to for correct, XXXX, out buying as XXXX. dividend, back do unchanged now. shares do. our the capacity which per a buybacks, we world. substantial we to guidance a and the

that will for something to about financial thinks contemplate as the Board quarter it the frame. each be So

Bernard Looney

refineries I out. sort the The the of spare the that market Martijn, West global pretty think flat is what and in running is the in products, East. system can it out now system in the moment thank to you. West, flat much that are capacity BP's refining doing what you're can. where we're largely we system the the seeing And On the they that is running is give needs. at in everything

gasoline think diesel are globally at in relatively jet moment, actually I are stocks the stocks, reasonable shape. low stocks

there the refining. So strong a at is moment for environment

the it's first today, XX Murray at today. XX [ph] I XX, In running I around think quarter, RMM saw up we XX%. think

flat have out. the in The the is in we firmly is strong environment. The are the it So spare of majority today. a world refineries East capacity that running

So hopefully, that helps Martijn.

Martijn Rats

you. Thank

Craig Marshall

from question Exane Lucas Lucas? Herrmann Thanks, the Martijn. take next at We'll BNP.

Lucas Herrmann

quarter relatively from the least, straightforward. And modest, with why the course divestment not seeing onshore this all not billion the on If I modest. gas, you've $X as the as divestment you business to price macro the the the billion the of over lags high realizations, And proceeds year. have should proceeds of to U.S. it? price the moderated first profits if relatively seems questions, in and coming lags. year, you. $X Murray, what's price of treat not starting around could I billion if backlog? as as sound also happening on through, and production, in might, secondly, direction quarter perhaps on through which a expand ask just being least I Gulf if relatively done $X given being But as first could have of this is all, come there were both Two anticipated isn't as well might Thank a one to always divestment? in

Bernard Looney

Thanks, Lucas. let take I'll Murray both.

Murray Auchincloss

Lucas. frame Yeah. XXXX. we overall Divestment is proceeds, The talked $XX out about to billion

billion which other in regarding to that good quarter, very the first right these got date a billion relative we've to hopper in billion so proceeds course, is and timing And of start the achieved a predict. $X We we're year. was tricky guiding have promise. in to We you're think divestments far I - to year. do things to the $X.X on XX $X of

between fairly right buyers bid-ask The spreads other wide now and thing say is sellers. are I'd

careful in right, just to course. spreads And more and we're then things to guidance move X% we'll so the if remains now. X% being do But you're given for how update transaction, time. think guidance And due right taking bid-ask close given faster, it's long taking it's I now. good

Mexico, custom a practice. just lags, et might It's I that on you price cetera, think in on Gulf price in we remember lag. of the

production, of in January quarter a there December, the our obviously offshore and between in the Obviously, $XX, and March, but decreases as March, all we of that received So and by price February we the up Gulf difference that XQ in months. picked it was May. prices are April, those prices Mexico big December

when liquids, our little at to On those NGLs that's and you realizations. Dhabi difficult So look inside that's you at BPX, [ph] oil. GAM a both Abu realizations. what's it's look When look and happening BPX bit at

have we pot understand So of you side, obviously on create gas to hedge side. gas the pricing melting to a And that. the

So why lower gas see you prices. that's slightly

I the that questions, covered Lucas. think

Lucas Herrmann

of do Murray, in those hedges side? how far the terms run gas out

Murray Auchincloss

Generally, we…

Bernard Looney

When look at real life...

Murray Auchincloss

we're Yeah, go Lucas. sorry, running ahead, - generally,

Lucas Herrmann

clearly that not No, I realizations going has was headline strong. been rather To are for or hedging, I very something mean exceeded is but... you do, by extent expect just QX I what prices which to say, to

Murray Auchincloss

Yeah. to We've could now inside activity out when long hedging separately we it a BPX entity. of continue the practice that had ensure the we set

corporation. the we've around a choice And So with... made that's to as generally, a windows hedge XX months XX

Bernard Looney

And the not gas hedged? all is

Murray Auchincloss

And is gas hedged. all the

Bernard Looney

divestments, and there prices there. guiding to forward the situation for on But going seekers being to assets. outlook where and of are Not sure we're we they that's to get message is help think rush when here. key only going our value. making our going being that's our gas the And it outlook, the on today good to the purpose is all no divestments, be is these value hedged. overall a not And We're I with in rush Lucas, time. We're going take our comes

thanks, me. So from good to hear

Lucas Herrmann

Thank you.

Craig Marshall

question the from We'll Himona Societe morning. Irene next good Lucas. at Thanks, Generale. take Irene,

Irene Himona

you. Thank And and decades. obviously, on Good very morning there on first My for two been has is strong my BP congratulations of question results. Russia.

strategic this low-cost presented always key resources. as region a You've prolific of

reasons you're out control. beyond essentially for Now

a I rest seen you've overall versus actually think, about more down. Obviously, left a reported U.S., retain XX%, is organization inflation year-on-year. of dealing strategically than is you. U.S. please the and the seeing in little is feel In sales And You BP the portfolio the you inflation. which more Can of upstream guidance. cost financial does my around BPX Thank world? then bit the gap U.S. up there and differences unit how in second production financially? cost you're in pressures the you perhaps production the And upstream you your But which this? reported in that talk frame you're cost, on cost, question with

Bernard Looney

Good around On say of hear you. Russia, are Murray of chose say. XX because I'll would we things just costs exit just from outside I Russia. said question invasion Number I we couple let to starting. We thank you take guess hours and you, a that, Irene, production the out inflation. our within I of reasons the one, chose control. to would to exit and

by - it because do, the a the our do day, was a choice driven to of that was the it shareholders. and the to right we at the we right And we both thing was thing end But it Ukraine. choice, made for choice believe on So made. obviously, it that and in the was it's attack

first quarter contribution. results without today, that Irene, you The are see Russia's

So you're can it and BP how seeing absent Russia. perform

business a now a U.S. on see many trading record basket between had also XX%, now, many, sales pre-pandemic. XX.X%. XX% years fantastic, up Believe had performance, the and first our its reliability and Thorntons it which in in is sizes. not, but or quarter good You We highest between are in had XX%, strongest yes, think, I convenience that,

future, investing become is in the in about the and company while of. a capable it's that of and laid engines company, to strategy five what And an we've integrated growth investing energy our out. see you system So is hydrocarbons that energy the today, that's and

gap a there. don't portfolio think all. I it will see I So at I leave in just our And

Murray Auchincloss

similar cycle cost that's on cycles. I to very Irene, And guess it's Great. past inflation, a

excess levels not X% the generally around XX% you that's services place broad be the a to across chain. inflation BPX inside There between is CapEx, cost. inflation probably lower first on mitigation U.S. is capacity and after inflation XX, portfolio, the to seeing continues outside X% somewhere and range supply inside of what similar seeing of The inflation We're see the

very so just that cost On not we And but performance, into only focused often broad in very, seeing we're remain talked of driving there. the digitization BPX business not portfolio. through in efficiency past, that the the in rest the on plans we've about

very, capital need because believe ago, continue drive So low. focused price we're oil efficiency to only was on the to very and We it. we of months very XX cost

the as end they mitigate front business. the right they're I to on BPX of So we're on that. focused do hope to just now, very tackling inflation to always, can helps. going and very, continue efficiency what that focus is that throughout And

Irene Himona

very Thanks much.

Craig Marshall

the Clint please. at you, Os from take We'll Irene. Bernstein, Thank next question

Os Clint

the talk coming I'm that, that about trading kind of terms of appropriately of much set Is in I environment? I'm CapEx Obviously, and I exceptional for mean, a have Do the gas gas on you this number? there whether of you're And question. there that? monetize there work forward kind of number. gas you're XXXX. signs you gas? was get portfolio subsea in that And about That's all perhaps linked within the to - here, sense is power any can just like how through to first start - caps? Could year starting new you things bring talking really Is rest of mean, compression the to up

But exchange. the QX just the big Secondly, number. this Was looks on convenience a that and It mobility, particular there some coming there it in ex foreign and I squeezing marginally that's quarter, costs the think is talk obviously anything FX? you. it get price convenience It down to love This just wholesale that say not is was I'd quarterly here? sense you Castrol. around Thank weak. margin? else - Is of morning. but up, mobility, not just release does weak me. is look working to

Bernard Looney

and On think mobility, you gas. And convenience and second and Os. just Castrol, Thank have good. our I'll for Very quick was accelerating power as actually the a trading it potential say, to you. about and let excluding natural go driven maybe Murray I the to XX% and between in XX% in strongest XX%, up first a the record U.S. said, up, at things are about that earlier, as number up Europe, basket XX% of spoke XX% by I sizes Thorntons. on quarter

We more quite have more up do so million to a loyal a from bit than We're speak. we make loyal customer loyal now, we customers. non-loyal customers to and one, a XX

We have more sites. premium

non-fuel have risen XXXX. sales XX%. to We sales. from XX% X% more has share up from since premium margin And fuel They're the

of So below what COVID are still an levels think the effect I in thing are seeing saw still fuels XXXX. big and retail is seeing? the that you you're we

in we also quarter, first I think about in lockdowns volumes China. probably the situation are and have down X%. had retail Germany still for strong our the we BP, in And

quarter is I I high But environment a Europe your in business. something absolutely here. not app, quarter customers fuel underlying of year. growth just with a China three times sites, question, more obviously, the sizes. in electrification, the bigger the always as prices, the challenge the by of first we the of in sold BPme performance the sites continuing it's on the fundamentally loyal think oil customers. of and power tough at we first last issue India, are that previous way, So basket core Oswald. an would COVID in remnants say sales, well, lockdowns more the business, convenience in which for premium did more of premium We've in amount on And more than got

with profitable. being So our is that top really sites business accelerating now

natural of So in that a gives scenes sense trading convenience on Murray, what's you gas. behind and the hopefully going power, mobility. little

Murray Auchincloss

Yeah. Hi, Os.

So on the focused making on locations assurance, What producing first the now your sure We get where gas that to trading, I exceptionally consumers. right that's think flow is. world from are question. think the the was that molecules given important teams

first up focused very trading organization energy our flows. the flow and and Generally, they're occurs of make when is we've highest assurance on volatility to was volatility that set sure the profits quarter quarter probably making So seen.

It's doesn't high it's matter low. price volatility. is So volatility. about more It about if or

for I'll forward CapEx Obviously, Mauritania to year. happen of in acceleration, Europe. help to bring what's and well to the the the gas judge we rest year? So Tortue rest up set have of options On with of Senegal. let are you lot going a the and we

would Europe help. talking In to gas looking blow The draw things across additional well, [ph] the the try in the at of downs U.K., the around et that bringing options to the ongoing. as like about, ETAP pipeline phase a Shotanees we're first at like In compression is looking places phase to and We're expanding on at second resource gas portfolio. you're more cetera. some looking we're

focused So flows on help jurisdictions, to energy what towards as Europe we in point the organization across is the the do right many can we world very, very now.

Bernard Looney

the demand the a that ourselves ultimate trading has to make energy that more on quarter. on is the need role upstream guess, been important and sure first we I of just not than home has never the it And for remind molecules also to connecting the with find supply been side, systems in

months, think, actually I of LNG biggest in LNG with So I the tonnes, deal five a into from just million signed, X.X cargoes Co. the ever ago. few Gas into XX just XX those last think, our U.K. We of Europe months

just not around investment It's Oswald. also it's story and So through marketing upstream an business equity the natural gas. trading

helps. So hopefully, that

Os Clint

you. Thank Super.

Craig Marshall

Paul being take We'll from Scotiabank the up again. for Paul, next U.S. question Thanks, Cheng thanks in Os. the at early

Paul Cheng

questions, Two morning. Good you. Thank please.

mean, refining with relation, - system? that, presentation. how to European just And within I on curious on page yield is I just want First, your the your operation European think [ph] on of XX [indiscernible] refining I impact question the operationally second If see that being Russian product operation. the your orders your impact on

improvement. see better the improvement the understand seems resin comes of the help or for business, EBITDA, the you my from? quantify chart it - Can and the XXXX couple chart there of you. oil in we little a maybe a dollars gas billion us bit where hydrocarbon, the your suggests For Thank

Bernard Looney

I'll Very second good. the take you. let thank Murray question. Paul,

system, Spain, the of of are BP's Lingen molecules. and and can On in in are Germany European Corkran clear Europe, Russian of four we've got refineries confirm in Netherlands, that refineries all European the refining Kelsen refineries I in the in and all Castion [ph] European Rotterdam

and question outlook, is pass which And we've are XX, about of page you refineries to that, independent for as Murray you And would So managed Murray? I running adapted Russian today. XXXX with will crude expect. those on the the

Murray Auchincloss

Paul. Good morning, Yeah.

if I've the the bringing where the and bridge, the at EBITDA we're comes of you're about hydrocarbon the resilient all, higher-margin We're from the the bringing barrels talked you're here, decade. barrels. in first upstream. question decline in your wondering Obviously, other profit Let's hit looking on across in we've stuff in increase see past, offsetting

big that's is chunk in the mix. improvement of an So a it

to and Second, have gas the and barrel from cost the focus business, six the seven through holding on the cost driving decade. inside down and across XXXX we through big improving that a then production cost per oil

around course, investment and forward big decisions phase, in an five plants first seeing pre-COVID levels. plans looking are and where bioenergy, the the Of and world, optimize And the able refining got design we're next in we've we're gets refining as to the back months. expand in inside to last improvement those we're to engineering slate XX margin to across our the

sell-side happy if the Rosneft the growth was So coming where slides guidance just like. questions the sure a take that to XXXX gives our to helps, I'm that in I And XXXX. hope without that make sense to from on you put today of you'd Paul. more presentation clear. we restate the is later call to slide

Bernard Looney

Thanks, Murray. obviously that doing situation. can you, add throughput Craig. max running at well, help everything the we refineries as we to And are Paul, I have that Back just European to would the

Craig Marshall

next the question from take Paul. Lydia. Thanks, Lydia Good We'll Rainforth at Barclays. morning,

Lydia Rainforth

I Two if could. and good questions, morning. Okay

was $XXX, to at to generating Firstly, it $XX, up but conservative more just set come the are be question. you Obviously, back to strategy at cash.

nothing change really other more debt. than lower does buybacks So and

and you to secondly, understand margin? to trying what of her? talk then ExCo might have you adapt how portfolio have to just head And carbon to I'm want that, the that may So allude BP a you you that made And observations about current Ana. do share? new the low from to any Ana at the possibly you Can like

Bernard Looney

lean of we making. they're of really of just incredibly experience point companies space, things On brings things accelerating clearly that so in some asking enormous the into in And financial is board as the away, in sector, and We're important pleased lots But is. she's I'm this but people. Why turning have discipline from process our Very question. good lots actually think the hiring she's I'll on BP. Murray you impact sector. And hopefully, about. our update which and running other on and thank market, of changes? she's several on other and are her we're credibility in, bringing fantastic framework talent to challenging this time. the the questions, spend good. with part what around joining as Ana, changes in, any the delighted nothing than, reiterate obviously, our don't on Ana probably around to strategy might absolutely are I for our that the She her she's is and you on Lydia, morning. strategy because say later that delighted let listening any across eye changes we're But think we'll soon she later to as We'll with to early But Murray, have it And to get I'd year. of if get team. opportunity and is strategy, of any, we part really front year, that because the the of bring I strategy, there has. that, too know working say the it of right in you I love that and

Murray Auchincloss

$XX can make I XXs. at dividend, point. We months sure resilient pay oil that was that Nothing exceptionally changes number price the it's Yeah, in the We answered think my boss ago question, It the Lydia. we XX was to think priority. need one important. balance it only and that's

And need XX.X% Second, of very to straight quarters now pleased debt. to we're to net down to eight reduce debt. see continue we

and reduction. of now, change our helps drive or all to whether what into no the past, hope Third, time in buybacks focused not on surplus to continuing And we rises CapEx the the that value lot of destroying destroy I the then with past years XX% share we're to do to capital spend, awful efficiency we and and XX to spent debt Lydia. be that as stick a lesson we price with sector, more XX% discipline. value. an cost Every oil our

Bernard Looney

Thanks, Lydia.

Craig Marshall

Chris question Lydia. the Chris? We'll America. next of from at take Kuplent you, Thank Bank

Chris Kuplent

selecting And forward Or for about to can going your for obviously, are finally questions, takes believe, you're quick Rosneft not what you Two the in reality. and for update a coming I then to it price? to market, you're On exit, highest actually time to price, - bit take it going you no Russia morning. about and on there made is but your point, year elaborate good referred the significantly the appreciate Hey, perhaps idea Is But about that of your commodity use paybacks, again buyers your And trilemma message composition if of And please. your there are are opportunities means Isn't earlier? on to just little because considerations to at exit time? stake? if BPX? purely portfolio by of your for you other criteria I overall to this the hasn't two going least for account? not changes also out suggesting into later there with changed, longer-term partly in the But on us in you wonder short Is you could should hedging one, comment your you upgrade a CapEx. having I CapEx energy assumptions. this cycle why price CapEx. it

to releases? numbers, that up press been new these actually me you're weeks. guess, you as you. this I for XX world your in think maybe order Thank So do if investments, these changed. asking changed of have release in We've by regarding Which that press which have the let the wrap representing last, any, energy CapEx U.K. of

Bernard Looney

Thank I'll doing Very BPX Chris. Murray what and talk good, you. about let we're there.

You're runs like bit beginning to who sound a Dave little that Lawler, business.

the support electrification. what's the seen from have things U.K. can And supporting we'll as looking security published this always strategy BP to many billion we've out announced, have £X the over energy take months, strategy. of been to commit put electrification the its government and but through I will place expect who's think the see allowed on last coming in these been for has as drive coming government capital, question. more in policies And in has And that rolled its us just we months So decade. for several investments to plans that further over in the Many place. the have That's you of that

that, it as everyone should watch to expect don't I will BP else. see your for On the All say processes, our frame you same on thing Russia, unfortunately commercial change. overall you that. to not the within to I to comes would comment. When capital I So say space we say, question on

for policy know of not we're more. back once commenting and to an making Russia this BPX, case come update and particular We'll a exception morning. this Murray not on you have We please? we you of

Murray Auchincloss

BPX, billion. see On $X.X spent We'll amount the investment spending we and remember, through year, year. somewhere billion. Last Yes. the going billion have in. we're Chris, how around of between all we go increased you we $X year, $X.X This

gathering operated, is in capacity end two we'll capacity stage, then year. now, that big ramp Haynesville, Right inside drilling be should investment focus ourselves have don't at there. more. we're the in out drilling up we the Permian. more They to in the with the And and Our Ford systems. up partner up And have increasing ramp with by the the Permian of to building Eagle

think I up rigs we're to nine now.

investments all we that in want sure we've go Permian. and got or methane So don't up inefficient, fast the too the in yes, we there, we we to become through flare increasing about facilities expansion make as that want it's ensure the are and doing we We the ramp efficiently. in or it to don't to place

few trying the plans that trying to dividend a we out bought ago. have So X.X, BPX upwards of that and and X.X having further investing from very to get get happy BHP now to in beyond XXXX money to back. we're years increasing Remember We're continue to a assets our we're CapEx.

that So to you. entity. Bernard, a back we're dividend for looking of out

Chris Kuplent

And Understood. hedging policy Understood. to no your therefore, there? change

Murray Auchincloss

to policy. change No hedging

Chris Kuplent

Okay.

Murray Auchincloss

Chris. you, Thank

Craig Marshall

Alastair? Chris. Citi. take Syme question next at from Thanks, the Alastair We'll

Alastair Syme

Great.

we're have just know, why there i.e., warning profit reason a we've any wind, you specifically the seeing And pass of loss the RMM you. this XQ? is increase that in chain secondly, on there's on Thank point low supply it chain? that you we're a yesterday, out inflation, some You First the carbon, seems cost the or or RMM on seeing just the seen there. then apply wouldn't some Is to on developer to guidance in question the either me quarter-to-date? back wind system, that environment gain another though guidance guidance the use you just in that that from are guys to bit as unable to supply in

Bernard Looney

you cost a take that wind net around That's of number X and that ago. on of Alastair, discipline. of take we got from think gigawatts offshore portfolio I at We to want any wind, a the in around in sign States and up a the zero that. months were We've offshore question BP And license grow will couple costs. of have. certainly to sector. thank We as ask at round want RMM particular, think to I rules bid with would X% XX comfortable guidance. the On that returns. our challenging on marketplace I do you. dimensions, carbon, and thumb Murray low I meet for only say. A grow we suppliers recently guidance including in we over hope XX% that a about and one, today. of But We're in unsuccessful. United don't obviously Number to or things projects all of I'll

we disciplined, the rounds future in So announcement will we seen Norway, are look at you'll have Holland, very and with Marubeni. Japan, in in

that all case-by-case second is And on And on. meet we say different you we cost commitments very, it's would I won't it. and are very basis. containing if case-by-case They're So that thing upfront increases our returns, the do so very do a we'll the a seeing then sector. different, it can't in and

We risk should of upstream placed of that. consumer supply prices I to opportunity entire across a massive can in an guess, upstream are steel hedge be re-share re-sharing BP well seeing to a You steel of the reward were chain, our business. do some

things remain investments the cases, to that some that prices do. do. ensure up we're that would knock-on can in are impact power So market to a also economic of seeing, others these going you types the the expect prices And on are as power may IEC struggle do the where to

up increasing challenges of by a a as people XX form do gigawatts, energy. So continuing to is this There there world and going so with ambitions the yes, hydrogen need some is of sector U.K. more on. desire there out for the that in

and We skills, will do it, and in invest but market. make our investment do where the we that bring returns it will most it the only we can

you, helps And Alastair. that guidance? hopefully, So Murray

Murray Auchincloss

RMM to tricky figure On how a to guide bit Yes. it's right guidance, out now.

the in of RMM We before haven't level seen this past.

be high. are locally the a COX point. end very So Gas market prices very as would inputs dislocations thumb about starting very of to rules high, think Things prices are into high. are refineries

I could we I'll think give like of wish bit, the before. thumb better not with than have I But off then I this seen rules you I am and So prices a that. guidance start

So we'll as these we've tires at through tars big have we learn and to big [ph] comment, prices. higher work in with couple as and well. year how of move there's you understand XQ they of XQ and a ahead a us, got of XQ Last

helps something that's So out. to that Hope consider.

Alastair Syme

Thank you.

Craig Marshall

from take next Michele Thanks, please. We'll Sachs, Goldman Della Al. at Vigna the question

Michele Della Vigna

four wondering growth the demand I I thinking on for need I'm projects and makes the on And Tortue for of couple drive [ph] next results. phase you. once project contracts Trinidad. update there? X your key likely And in the for next if And or Phase us LNG the revival the of and of the over you of more particular if was given financing wondering could years. secondly, Dog long-term Thank long-term again, that congratulations an was give five Mad especially

Bernard Looney

chances by improved of lead guess, team is, we tag this Michele, next the today's I for good. one, price which only maybe Very phase Murray, Tortue, environment. or outlook might the on

On doing the X Phase on Dog well the you've mentioned location. Mad is actually big projects, ones.

is of [ph] out with Gulf happen connected Mexico. Lucerne think We've some which now. there I subsea the in of had challenges the all real

that job we and that team exceptionally need And has of important most the operation couple extra. fact, safety the in first So of are done that well. predrilled, a all wells is and

of Cassia will project up by excited Trinidad in year, also phase very that in up the of of the development up completing that we're end there. by KGDX well Compression will the this and So start starting India, as end it year. about start

doing for So excited been example, think, Africa. Tango, if about over teams jobs that. in going Indonesia, doing, The in from major mind saying have And Tortue impacts you over projects then don't me have had keeping Tortue those I and seven people managing some XX,XXX West and the We've expansion with in particularly heroic on for COVID those of it Tango there. from year, we a some China COVID of or with COVID. has eight by been team Jakarta. evolves, the We'd lot how in for an of in end depends job Tortue. the projects, hours up And but hope exceptional China start FPSO being next both those of completed

So to bit of to the Murray, And progress phases? in that's all that a you anything but pretty the good around in add on shape. little projects, Tortue all do want next comment or us

Murray Auchincloss

for the weeks And Senegal ago expand of add I completion Michele, now. Yes, Tortue James that. country with We're the chance take then and get in it negotiations commercial say, to next Tortue with and to partners of are positive will is with Finance as had on to to few pleased you now. phase to suppliers Minister environment a a with looking and nothing St. just there. the better progress it, meet right the and feeling things here it

Phase hopefully looking the to So II forward future. we're sanctioning in

Bernard Looney

talked And years, Great. adder coming not real a project to about. we add, BPX, this be year while from growth in also Michele, we just should also those that a projects the liquids the BPX major and will

So thank you, Michele.

Craig Marshall

the from question Jefferies. from Jack. Jack Moore Thanks, take We'll Michele. [ph] next

Unidentified Analyst

you. guys. morning, Thank Good

question renewable fell gigawatt somewhat noticed hopper is, to XX from I First that your XX.

plus the understand developed pipeline that bucket. moved X.X Now I into

sort reconcile around of at whether question Just your if the the looking that's you're or projects, of cost reflection potential wondering of an bidding impact happened is it's Second higher seeing stake. of the pressure the any sort already divestment to remaining a there? opportunities of you what can if Rosneft

you lower can the there little would shareholders would Thank use reinvested of could of proceeds or be to a potential you're carbon in divestments be If if you. side be could what talk use looking business helpful. from a into proceeds be the Or accelerating the bit more returned the if of about of an upstream bit growth? at they reinvested to carton they little they

Bernard Looney

Jack, thank you.

commercial On commenting not are from the the proceeds on. process that we

we say until - again, that think, further that have that's to on leave let's okay. something if just I we'll commercial process,

that financial our lays very clear hopefully think is I out. frame and

shrink. and you has to measure. hopper. some should and back do Yes, already On we a not a are kicked hoppers a probably thing. renewable haven't - chosen nature the pipeline hopper, best the do very better tight is things you've in because it seen we things. the much Why should grow not which many we've chosen rule very fallen proposals, running of And probably we've That's think not has a I right, things The Ana ways. It's very, it is to fall. is measure think positive over because

can doing So what want why we hired that's so lean we the make promised, want we've her returns to accelerate. she do to is, is to which and her. want we in only we've exactly if yes, that do, and But we

Ana's that believe and obviously make things So can have running she the we because don't of partly returns all all. is promised that over we that you we rule because

that. all that's and So say it's of combination I would on a both,

noticing, So questions. thank for you thank and the you for

Craig Marshall

And Patrick for from the Thanks Anre Thanks UBS. question the [ph] much. invitation, very take final we'll Anre.

Unidentified Analyst

taking Thank questions. you for everyone. Yes, my

ones production. quick for gas couple the We carbon guidance the took a low on Just year. the

expected gas you the And of this Can previously. further change? comment could see lower driving what's secondly, production is then slightly look production? maximize improvement So whether we to on you as

Bernard Looney

Anre, Thank you. I'll that let Murray question. take

Murray Auchincloss

a Trinidad we've base see little bit than we decline inside just we'd updated we thought guidance. Yes, less that as

Bernard Looney

Very back good. Craig. to for patient, you you, and Anre, thank being

Craig Marshall

listening. Thanks, the end the tight. questions. the all that's Thanks for Yes, everybody, for of keeping questions

comments. to hand me some for closing you back Bernard over Let

Bernard Looney

thank Well, you good. you, time. for everyone. Thank your Very

Just a few things to close.

at That energy. with company in company it trilemma integrated with That's hydrocarbons in energy energy reliable transition. affordable the And BP, of the energy For we're an today. the and role the never is of with lower time, providing doing. is world the accelerating cleaner, than what the us role at today here and has energy emissions it many the that needs integrated same to solve been an clearer means ways world the investing providing of

thing The direction. the see that today is It's strong quarter our and I that second being focus. We've being our quarter first quarter strong all set company, first would strong. reliability about I can with say convenience in hope inside you our We've that a with on in is our trading with done delivery basis change. being first results delivery

all about. what So delivery is it's

are the doing next tomorrow. everybody performing company able up the with appreciate that, of been of you, to meeting said some is person with We It's of your to look transforming for what that our And forward would time, focused interest, on We resolutions now in General the forward forward. do which this support of we do, look for to XXXX. time and the the the today And owners since been Aberdeen Annual XXth same we've the perform we at we to recommendations We're first and your transforming, welcoming Meeting leave while you we put have to Board's we there. on it. May.

very thanks So everybody. Take much, care.

BP p.l.c. (BP) 3 May 222022 Q1 Earnings call transcript