BP.L - Earnings call transcript Q3 2022

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Craig Marshall

Good morning, everyone, and welcome to BP's Third Quarter 2022 Results Presentation. I'm Craig Marshall, BP's Head of Investor Relations. And I'm here today with Murray Auchincloss, our Chief Financial Officer.

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

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

Murray Auchincloss

morning, Thanks, everyone. Craig. Good

today acknowledge on another lives here where at Toledo the strategic tragic financial quarter take to two report I fire. employees a refinery, their first, incident following But want to sadly of a are of and We delivery. moment lost our to the

to thoughts at root and the we Our number Safety to Toledo as and their understand priority, go families, remains causes the of to the one community. offline to team refinery this remains the incident. local work our

Turning to third quarter results. We BP. remain strengthening focused on

we and delivered underlying $X.X billion, quarter, of $X.X billion. of billion operating a flow third working build earnings including $X.X the capital of cash During

announcing consecutive on prices, let in But Starting environment. share leading company. in where the results execute U.S. to moment. with to energy detail significant to convenience Hertz; will and reach gas Since $XX company; We acquire debt high-grade accelerated net continue I an a EV and strategic turn to we our in quarter to first, our disciplined reporting our our biogas our we volatility. a and growth have see through the advanced for more further with strategy provide continue Archaea and reducing to strategy, progress charging our financial collaboration me have hydrocarbons continue macro business. bioenergy results, quarter integrated momentum to And frame, we agreeing a against Energy, $X.X tenth transformation our second billion buyback. billion

to the of average offset pipeline price spot rising Prices XX%. During imports summer LNG in quarter in in prices by cooling U.S. Freeport sharp quarter, the both the also TTF loss Europe with as a demand Russian increases produced exports. future rose and led

flows severity quarter, Hemisphere with expect remain the dependent the and we elevated fourth to ahead pipeline gas and to volatile, Northern heavily of outlook Russian the the Looking prices winter. on

prices. oil to Moving

to third outlook During barrel $XXX in averaged continued economic quarter. in uncertainty the and per down from the barrel, lockdowns uncertainty, we the This the the quarter, reflected the around levels, China. COVID-related elevated expect in this supply per Despite supply oil Brent growth backdrop prices and increased Russian second quarter around cuts, $XXX remain low given uncertainty fourth limited OPEC+ inventory exports. of

levels per average to decreased during Turning expected to $XX.XX and the fourth product. and quarter sanctioning around due lower to Global remain at refining. during margins elevated barrel are Russian to the quarter and third crude of stocks

an quarter, reported $X.X reported a compared profit $X.X Moving In $XX.X cost loss of to prices. billion, to post-tax we of of effects replacement included inventory we $X.X accounting billion items of to billion. Pretax $X.X the quarter. billion billion, the due results. gas increase in last third After of adjusting continued billion loss value holding forward items $X.X fair and an adjusting primarily underlying

value mark-to-market of accounting being hedges LNG for are this adjust the recognizing the changes LNG In effect but of risk-managed. also result, reminder, the a contracts, of the in underlying not reported that value the themselves. contracts mismatch fair to under include the IFRS, the used As by earnings risk-managed value contracts

This operations, to trading an in returning an higher product offset production exceptional reflects margins the improved performance, contribution second in compared Angola higher realizations. result group trading the In and entity. lower from lower midstream The benefited from the in performance, and equity-accounted quarter, an Castrol. exceptional by notably In by carbon converting gas Turning realized and an and and partially refining benefited BXB in of gas reflects and BP's customers to production and result business the costs, retail and aviation and result products, energy, gas liquids result partially impact second an performance. interest oil low higher oil to quarter. offset Compared realizations the to average realizations. higher result was gas customers marketing to input the

increase Turning flow losses flow. adjusting capital effects, on third and mainly billion gas BP's cash accounting included value of Operating LNG fair in $X.X quarter. build inventory a driven in the billion prices of was by to holding This cash impact $X.X after the working portfolio. the forward for

outlook capital subject remains a factors, price. the working forward, for Looking including to number of

result to rising half include weighted second we are of since build working XXXX, into as release a expect as working and the capital of in XXXX, of the gas toward the cargoes now LNG delivered. XXXX prices following primarily around billion a movement However, capital $X

now billion to $X billion With $X.X third the proceeds above was the $X expect slightly back realize expenditure Capital proceeds range. prior quarter. to million. Turning of and by billion disposal during we were $X third guidance $X.X the over end to the $XXX of billion XXXX, quarter, billion received

of of completed repurchased on XXth of the $XX shares program results $X.X announced October. And XXXX consecutive quarter to quarter, reach billion billion. for and for debt tenth was $X.X billion the the the net During we fell second quarter

Moving frame. our to disciplined financial

balance underpinned XXXX. point barrel This a remains an is around average through resilient of $XX per priority first cash Our by dividend.

rating, second we balance strong investment-grade Our the sheet. to strengthening surplus to and maintain flow of to further credit is a allocate XXXX priority cash intend XX%

and continue fourth, transition to and with hydrocarbons. the invest Third discipline into will we resilient

of to completes guidance $XX inorganics, is to unchanged annum. is $XX billion expenditure guidance at And XXXX the billion, execute a year-end. with to the cash third of shares subject BP buybacks Fifth, we Energy of XXXX, including buyback cash of October. AGM medium-term $X.X capital billion $X.X authority our surplus intend quarter results. for surplus XXX of to to billion XX% XX% cash billion, to account fourth $XX.X per around surplus expected total to announced the flow X.XX flow share to now billion and maintaining to reporting will credit cash strong XXXX for from into before buyback, cash at up XXst And including of rating. returning repurchased buybacks, take prior shares, to a be investment-grade surplus In we setting committed acquisition repurchase the flow granted outlook XXXX flow year-to-date. if through brings the Our share Board -- equivalent billion XXXX factors, cumulative continue $X.X million remain BP's has surplus the to at This flow. Archaea of quarter level Against

Archaea biogas our relationships biogas within we trading and And growing sector, are in value disciplined integrate of the Aim bioenergy, our our resilient we our a engines. agreement October, frame, rapidly This also one In distinctive our intensity, in high-grade have financial will have U.S. our five to Turning supporting strategy the from momentum Energy, to transition to we energy Energy resilient we participation add hydrocarbons, global an experienced with our accelerating as of where delivery in biogas deepen portfolio. transaction, reduce our to Archaea carbon we accommodated leading strategic transformation X. supply integrated real in customer continued BP's an company. progress, company. and growth business announced acquire Within hydrocarbons,

install a with In charging taken Angolan Energy, to by Hertz joint look announcing and customers in transitions with and to We subsea Eni. investment progressing Cypre to Hertz to to fleet fleet divest new to powered our have is convenience growth a are venture our mobility, the network decision for America, completed electric solutions agreed Pulse. final infrastructure; its formation we charging working the the our forward BP in strategy, tie-back them. we Eni; of North offshore collaborate investing plans assets Hertz engines. we create our Algerian In and largest the gas with EV on Azule are strategy existing to of EV America, advancing convenience rental Trinidad, North and project and

partnership have collaboration REWE ultrafast accelerate in in Germany of retailer with a Technology convenient charging Avatr charging agreement strategic development with expanded network to our fast, reliable, sites. And an at install China. the in we signed We their to China, leading

XX.X% Zero strategy the advance Australia, integrated shortlisted have Hub. U.K. to Teesside of And low-carbon process of continued hubs. to a Energy our have energy Power a BP-led in support Renewables that we closed Finally, government's for CCUS. take while and Net BP stake is X create we were deal projects to our In performing the in cluster To U.K., transforming. show results Phase X sequencing HXTeesside in today's Asian summarize,

shareholder We on we are are our frame, disciplined the to distributions. commitment financial strengthening delivering underpinning our company,

to have for value long-term shareholders. remain time. momentum transformation company, Thank for your focused on our we you and in an integrated We real delivering our energy

questions. Now let's turn your to

Operator

Instructions]. [Operator

Craig Marshall

first the And Scotiabank. to Instructions]. Okay. again, question questions we'll Cheng everybody, turn Paul to listening. take to [Operator you U.S. to Paul, We're the for Thank going I think and over you. at for now.

Paul Cheng

have morning profit profit tax on Good can don't elaborate Murray, second granted windfall guys. what is and U.K. EU the Can tax the that? you us windfall tax windfall profit EU all issue. is that the of also your Thank you. year for the for X Mad Dog the nature question details. this probably that you And the tell the you. commission Thank estimate

Murray Auchincloss

early and Paul. for morning, the the morning, questions. Good in Great. this states Bright thanks

global understand our profits. one We and answer off. back society a difficult why very for they that understand very Maybe time. questions. stepping government I just it's start And we before focus now, for understand on challenges your this face time people through taxes move Let's we as our on minute difficult the right

on at energy corporation, new a taxes, starting into things: two energy asked the and As And of today pay we're really as of you first, course, investing the transition the about. system. we system our focused

windfall specifics we XXXX North to seeing. rate see the U.K. the To for you, tax the tax taxes, the on announced, U.K. is today, the XX% we in Sea. in remind press the profits you'll So we're in of what that announced the

that year, $X.X million on paying XX% was back. a be will enacted We while the billion uplift including this $XXX

profits the say our EU give Sea our in yet. I'm certain XX% $X.X about $XXX our in you an of that's the are the -- global applications And that seven afraid EU, profits. not can't estimate. And million sorry, the I profits only X%. about U.K. In So months the far. North It's that's in are is I'll XX% think -- only so or billion. profits are do on of enough I just

magnitude. of sense a you give will that So

then through So tax And time about to helps we'll the year. our update I way questions. last expect see issues Phase We as issues. that just on X, in Paul. when working we're Mad Dog Thanks, February around, and commissioning we still next to riser hope startup that, talked with on the you

Craig Marshall

Clint question We'll Os at the Bernstein. Paul. next Thanks, from morning. take Os good

Oswald Clint

in Manufacturing American Murray, you. Lightsource very couple Clean last the potential you. installations, much cost curious and you way if all let return performing doing that of think that House weighed any we I'm gigawatts of us of getting the tax BP in windfall out that White they're I BP Thank just local U.S. discussion. could all called as into territory, in content. both the Lightsource weeks and levels might and Thank the ago terms you statement first one. a And help how to please? a ultimately, saw double-digit is know had and control really just you the that investment That's

moving I -- here pieces, positioning, into on and consequences price LNG to further strip that linked the of are seems billion over does selling Or the any part -- you. mean but that normal? unintended of quite have if time release, period Europe, gas Is a working an further $X cap like what extended please? across just me a to this for a Secondly, capital you Thank in reverse looks lot potential XXXX. maybe

Murray Auchincloss

Starting Lightsource XXX a The developed. X.X Thanks, Yes. and got now. pipeline Os. of gigawatts. Great. is people They've on up They've humming, XX entity, BP. gigawatts hired

XX than they're think greater in I operating countries now.

look at a is you financial is XXX% for can company's That's EBITDA can published, the revenue XX% year-on-year. a see a you up obviously, XXXX. take lag, of see bit house, you now up and but where If reports that's

our with pretty is honest I'm as side. line remain performance Os, well So guidance solar returns inflation as external hits the if solid, in

PPA are uplift. seeing We

time last the think we're on uplift seeing I solar I looked, XX% PPAs.

team remain So fantastic just BP happy with they're that to very we the congratulations Lightsource and the and doing. Boyle go work for Nick

few positions guys how working it we annum we've to On And guidance a the way that years. had hedge we provide the about some will we're next million have on exchange. pretty growing significantly derivative ton is have It's portfolio Obviously, think capital you working this quarter. principally to build just capital big about now. the a release, the the unwind. related the And trying XX with right it's over per to

of helpful age, sure, that taglines You'll 'XX, have I'm my remember 'XX can XX I kind was it's Os. easily, At of by to remember brilliant those well. our tagline XX as by

when MTPA that XX.X X.X X.X back got MTPA. another We've we're MTPA. trading. we've Tortue, now Freeport MTPA. that's So Coral's Venture, two X.X got comes online, got -- MTPA.

can now that's touch risk-manage get and we coming. feel So wave And closer. these things they we and closer LNG obviously, that of as

to position, lock why And both that in from that is the capital the the ramp-up flow carefully large very clear ensure that's contracts. on we're to can why disclosing derivatives these LNG that -- that the that's the working last And OTC so and we we've the what with -- follow disclosing. we're we're buildout, inside managed profit going quarter. these inside And pretty

working incredibly it our business. the just you sense last book trying when give just were of I hope give But to we me, the capital Os. we all what I'll of the Now with moves helps, is place over that caution guidance. give given Craig and would happen volatile that might scale LNG caveat, a one itself

Oswald Clint

It you. does, thank

Craig Marshall

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

Biraj Borkhataria

buybacks. this on the and and my the Hi, some questions. out you've gas envisage of very do this put I when -- And benefited we're have have limitations didn't trading. environments distribution for clearly the one you seeing year, framework. you oil you consistently on kind probably thanks But across of the your taking framework,

market the limits a these on year You equity can each obviously of your there's daily basis. -- only and buy XX%

think which much the larger if cash number about able build, working and how underlying you're I your then the to always is performing, capital than So I excluding it would about is think execute. a flow, actually business actually buyback suggest

improve as framework sheet about rapidly? and question your forward, Some the you're will quite the so balance are distribution on. special looking dividends to how peers have as you So the is, particularly about of thinking continue talked

and that. just of on your or various way sort how the business. quite Thank ascertain trading, is So question to thoughts It's beat. on any second you of would get on then to down break can be power then U.S. trading of into very gas the color the Any trading there And your goes hard you. domestic contribution is helpful. that LNG. But elements much incremental what

Murray Auchincloss

Great. Thanks, Biraj.

about that to stock framework, capacity program. saw inside do distribution our exchange first we on So the XXXX announcement, there concerns were our

second the did the on we how our page program So far. about talk of of SCA, much we've completed so

XXX of through an capacity shares October completed So with million shares. billion annual X.XX XX,

concerns have we to forward, five frame quarters. don't we suppose So I the upcoming retreat any three moving priorities. with our back about think our Then I'll as

we surplus, fifth they the look what The we future. also be determine the what know cash in said share look we've think we we X, buybacks. X, X, at priority not surplus be will flow at are, but obviously When the And that, surplus is only will X. XX% flow. You X, do surplus accumulated we cash of with what through forward

deploy of up there's look moving our would but the X, equal, growth I contracts, suggest We same online, build-outs Tortue, And start share forward I've we've have we we're we be talked offtake into at these Trade Freeport, some for Mauritania very next cetera. I strong me about, time strong X, that over LNG go all it we that et type you Dog but should where period. think fairly have three at years. the the all next years. that got time so see don't earnings coming Biraj, Tango the Senegal else would operations, two suggests Coral, Phase as a the just Mad price as momentum, would to go to Venture, the few over up, That share being price imagine far earnings to capital,

We're risks think looking I next fine with it over I our we buybacks. the years. see forward is any the on we'll it. And We continued be we're move buyback for few So part, strong fine think performance with to don't as forward as now.

you thumb we the up guided work $XX the so $XXX to we've we out point Now last -- what have I'd do is far. year. encountered that well said at space billion that we'll thing that And a of $X is rules

hope So Thank pretty when you buybacks thumb I about at idea you. think think we our $XX. you how a our a that that Biraj. decent gives guidance rules $X at of you around look of I use year billion helps, and

Craig Marshall

you had question second trading. on Biraj, I think, a

Murray Auchincloss

Biraj, you me could remind trading your on question?

Biraj Borkhataria

Yes.

So the of any would how think gas trading LNG, on helpful. we about and sources beat, trading power or be if the incremental then trading, just much color you. -- Thank domestic the split color

Murray Auchincloss

a grow think they business ratable pretty over gradually America time. I that it's just in North

a I think to inside up exceptional that's when an portfolio. it of think about probably I you. would the LNG probably be it. generally all see then can XX% average quarter makes give what And way Biraj, it's you swings,

Craig Marshall

we think think, it contribution it, is part the with Biraj, for which was offline obviously an had Freeport another That average in I way to quarter. is well of obviously And about trading documented. second

you we guidance quarter, As obviously to around the as look given look we've ahead. third volumes

as and realizations, described see exceptional. can gas You trading we've

compare think of go could XQ on XQ I back the to you get look take to and get at segment, So to volumes, that, a a probably sense view realizations a and sense.

sort it, into way you for of try our a correlate word. of better choice as and superlatives, as Just a

Murray Auchincloss

Biraj. Thanks,

Biraj Borkhataria

Thanks. understood. Yes,

Craig Marshall

Okay. Syme. take from the Thanks, Alastair We'll question Biraj. next

Alastair Syme

exceptional own an other? words, exceptional their clarity, other was Murray, about in referenced here gas question think follow-up gas. it threshold? oil? profit it you've any and on would gas feedback when if these affordability be of my of trading over on words, interested history each does or Thank gas oil then these trading and got in I'm trading. just just just general you. average that And getting at I you you've for any customers in So useful. exceptional, And profit for used sort the of Craig. Are itself. business versus sake same against Is the Thanks, from the about talk you're comments

Murray Auchincloss

Yes, on different gas equal, easy think the superlatives oil. so don't that the versus do is I something we answer they're for

the So they're question.. equal, to Alastair, that answer is

you're customers as natural which it far just depends basin the As world. around for gas, in

$X right running there. $X Of Henry course, Hub or are I -- the with around any there don't U.S., concerns affordability $X in somewhere is think now.

Europe, of with high We've in October, the demand think, quite turning the destruction. we've as seeing, seen industrial similar Europe and inside we're think is what now conserving. I through well consumers prices I natural season. And seen, a off as of off levels enter bit demand XX% on we last gas

the think I So you're mechanism out do working to you basin depends behaviors to drive in how generally, now it And right the that as demand. to which would these price relate just things. supply and balance is

Alastair Syme

gas on I are Does sort reluctant prices? Murray, of mean can ask the that to customers these term contract. out that

Murray Auchincloss

question. it's basin-by-basin a Again,

look a If Far the out starting customers to desire to at of life contracts. these are seeing want long levels. term They're you to to wave East, lock in

deal You'll so year, earlier the in have specific that. a example our of seen Cogas announced that's

out, so, willing So as far, to say. Europe less not term you

Alastair Syme

Okay, thank you.

Craig Marshall

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

Michele Della Vigna

two Thank here. low carbon. Craig especially the and and have you. gas results, and Thank questions congratulations you, strong I in Murray, on

clearly months laid last quarter, value your in one next suggests the very fair the out derivatives release 'XX the of half matching the the has versus move, capital in and TTF about first end month, the of the for second on of The XX%. physical, since working accounting which for you've and fallen But the 'XX. XX the is forward operating

question top in if include that wondering around Thank also was of of a comment quarter. refining, capital inventories, whether if your I could be by Whiting you. there the that price higher release on physical on second would effect. the nearer-term shorter-term driven my turnaround fourth operating And activity working release So of in simply then is

Murray Auchincloss

working Craig, cap then Yes. the TAR comment first on tackle question. to the want FAA do I'll you and

Craig Marshall

typically Yes, for picked commented, fourth reasons, factors up, as that. into so we don't turnarounds comment talk elevated other I are portfolio region-by-region specifically on note, to you've refining quarter. specifically Michele, than have into the couldn't we competitive But

Murray Auchincloss

will working Michele, Great. On window value effects, what end very years move we are two And each know. things, with as contracted the cap contracts around the fair the Thanks, Craig. you quarter. couple On of we call fair a value different and well mark-to-market accounting of liquid of that at gas.

that's you book how saw -- would value saying expect think working the we in So why different we we unwind with with working manage in is were XQ. today, in trading which we've line it we fair this probably from expect we're is a there how if in and have. where to guidance what 'XX. But very it's our all the we capital position locked reversal that these we derivatives sort that obviously now, And profits be close manage I and to a if 'XX about of separate capital capital, and working

oil Now big we as et have positions, know, a cetera. have you we also power position,

volatility There's moving will that around, just it's now can is fourth working pricing capital. right very, Michele. a with So And in happening to I'd in XQ. lot be quarter say predict difficult all what in very the create

I'd So hesitate any to provide guidance.

Craig Marshall

question take next morning. Thanks, Lydia, the Lydia good Barclays. from Michele. We'll at

Lydia Rainforth

good everybody. Thanks, morning could. Two Craig questions, if and I

that for so it, to is The translates where deal interesting $X for out there opportunities translate through Archaea done lot that first that you come want an how flow, but returns, seems lesser about like go, that that a a cash deal and those Is the we of to buybacks. lower okay cash think billion, then which And going to where a last little I one comments a -- was thank difficult. can if earlier is you through when and bit I quarter? the something just is upstream, the to the there is safety. at you're there buyback at But lower not Whiting actually at thinking is to Thank to do how But you. And Murray. you're is is [indiscernible] being does over the flow we've there's to transferred -- allocate run looking it kind anything to we is were the at like and, alongside cash looking Toledo the there check, one looking back you're I'm anything when working? -- when then element maybe second there of of around and within so operations about actually therefore, relative the fire really tragedy,

Murray Auchincloss

Lydia. Great. Thanks,

absolutely I a that, Toledo think accident about comment, second doubt on was no as the safety #X know. killed. priority, you with being remains in brothers It tragic our two

everything Our possibly the investigations thoughts cooperating We're that families moving go with and learn out the forward. on involved. we'll now, can to we

during Birrell. operations hazard think, we Gordon put under high I remember, all reinvents,

centralized we lessons safer remain confident So to that BP. build we and we'll operations stronger And under move hazard a forward, high as and Birrell. we Gordon learn these continue

no said Lydia, say capital. returns, to answer, And on to On is priorities guidance unchanged. and organic on I'd question. midterm and And are change priorities. cash that's what four that we've think It is includes what both XX financial that five is I So three frame, capital. my of inorganic XX number

to completes, have some to inorganic continue capacity into see a bit. organic up so the of XXXX. might buybacks still If capacity a more organic about at organic inside can can will billion we'll But have change is do bump capital priority look year billion rate grow one. there this Archaea the that year what and we'll inorganic. and capacity a dividend we out to to financial that capacity $XX-ish us like But that frame. of five, You capital. both $XX thumb have the is at you gave levels. figure that for We move And the on to run per as our Obviously, is organic, bit rules higher priority still the no to $X our year we $XX have it the do at X% use

Lydia, boring the answer, gave no I guidance. think change to I of So

Lydia Rainforth

Brilliant. Thank you very much Murray.

Murray Auchincloss

welcome. You're

Craig Marshall

take from Low Thanks, next Redburn. at Lydia. the We'll question Peter. Peter

Peter Low

Thank yeah. Hi, you.

mitigate coming on you're was, question inflation, was is very then through? to seeing And clarification. obviously portfolio the doing second it where and what So first your comment can across you're where it you the it, the

you said guidance billion Thanks. So CapEx inorganic that include future any to potential billion I $XX would the XXXX $XX think in to just XXXX spend?

Murray Auchincloss

yes, easy, that is Peter, second Yes. one super yes.

$XX priorities includes financial to our inorganics. of and and Our guidance billion capital are unchanged billion $XX guidance, our midterm organics five

there. the So net-net we're can't rates last a capital where in only contracts. Nothing's inside through the since really the CapEx XXXX That's Lower XX, changed. really much seen XX% From we've no change in place we give Inflation, I the update upstream. inflation inflation you that the quarter. place historic of is an perspective, inflation once seeing space negotiate the with

bottom that material line. somewhere hundred couple we shows our to we've numbers downstream top Inside no inside are line year. wages, I our as $X.X of look costs up over, But costs energy think real as It obviously. had billion carbon, started or low fuel additional logistics our probably costs you across the the business, downstream between and and and energy well. prices billion are probably $X challenging, quite and dollars impacting a million cash past see And pretty business take, of give some inside in change.

Solar, seeing increase net-net in with in where being the offshore returns PPAs were solar X% to a solar but a uplift XX% for last wind, In gave overall change PPA. panel was update you, But our the the were we offset that. compensated seeing the no we again, a cost, cost. XX% that costs, we increase in would uplift,

we're see we're metal world, starting indices obviously, carefully. pressures And the watching out drop to significant the amount. look indices given we a of XXXX, As to in the recessionary many

have we'll and we what move So that have into Thanks, as XXXX. Peter. strategy we see how chain evolves supply to

Peter Low

Thank you.

Craig Marshall

Irene. next question Irene Generale. Societe take We'll Himona the from you, Thank Peter. at

Irene Himona

Good you. and thank my Murray, numbers. first congratulations morning rates question, on interest Yes, the obviously, rising. are

financial don't then your credit to So improve What values gas. And rating past perhaps over one know, R&D does year if for you Obviously, just year. implications or words, Thank next, you credit on of frame? economics hope depend the you. your other or be halved would your approach And how priorities? order the the liabilities the to the change decommissioning Californian to of if of going I do that have second drop. Do of acquisition? assume it LCFS those do may in the in NPV natural question, and acquisition you happens long-term did, less expects of, I'm so? the any, it curious credit these anticipate this. other or financial back how what the renewable you the more would values that credits. Archaea evaluation In

Murray Auchincloss

On a States. Yes. It's point We governments us. or the which it biogas back of you way a LNG with MBD credit don't XXXX. the MBD. XX assets to system announced the Thanks. of team. XX for They've hopper United Great. know, development of a two a It's flies. company ago that month great is time you in And How because now. for the a got inside fantastic awful those are the Archaea, through production already been along acquisition fantastic Archaea of States, Irene, an XX the has six from United grow lot as all with out, the facilities multiple they are to capacity durable to worth the operating opportunity

think I this, just we average these think as to pricing how things. at back about we use we price when look

can down. volatile. move like And Much complex price up, Sometimes, things all sure energy to will as we are ourselves sometimes position just effectively history against prices we'll over prices that we through make very systems, very, will go time. go

if can five, you it you go, past been some charts, you can through the priced probably and on you yourself based priced So we seven look COVID, it's plot see years. where -- for It's almost history.

you that it. beyond where talked gives about think to that I the indication hit priced comfortable We're this. we about. returns remain So think it. And very that. the market that a inside we'll well very good I we'll double-digit And opportunity see we we excited huge We go

that organization I gets new And at will option that lot help a are interesting to going Synfuels the BP, to it. here create in there solid given to as hydrogen, come think IRA. value with set we'll into opportunities to I waste to shareholders closer with look transition. play well be have fantastic our will of CCUS We're municipal for play start the as a going together. just think and

sheet. Interest comfortable of rising. to We did rates is did a We very It decrease And write-back Interest some to be our that. liabilities. XQ That interest have do happens decommissioning that of we'll with less rising. are of a this in very, obviously, liability happening. what rates the be and appear in what's transaction. will -- with first understand question. strengthen, So will see balance have your our rates because beyond

far forward strong just as will looking ratings continuing As maintain I'll to do, credit to smile. We're what agencies I the think investment-grade ratings.

forecast But the sure with metrics very solid. not rating. I'm our right I'm very, what Our person are happen to will

You'd to or a with I is Fitch, say. have smile I'd what ask S&P think, Moody's or

fourth at with what thing as forward, say. lay As we quarter we'll you always far surplus they do what's do XXXX we as including as the And to results what well, as will debate, and right do we're to do, out Board priorities with do. going what debt, the the moving

We frame. to helps, have We're pleased made tremendous XX continue that. $XX Irene. hope quarters very very, need billion. progress And we row, just following to that with down I in a on debt, that financial

Irene Himona

Take Murray. care. lot, a Thanks

Craig Marshall

Irene. Lucas Thank from the question Exane. Lucas. We'll next take Herrmann, Great. you,

Lucas Herrmann

thanks I very Craig. Murray. Couple, Yes, if Good much, might. morning

question share simply The the is higher. AGM, XXX shares understand Firstly, you just number's if your since trying going the back I the materially bought [indiscernible] buyback back look the date. that and to to to at

one, the Azule second cash or that impacted could And walk have flow through line Thanks movements items just I us on been you and whether very is So Azule missing? by much. this am it, the question That's what question quarter. Murray.

Murray Auchincloss

Thanks, answer you question, share Craig, to buyback do Azule. Great. hear take voice. Nice please? Lucas. the to your want I'll

Craig Marshall

company at authority one, XXX at The Yes. the AGM of XXXX shares. see actually said, Yes, runs enables Thanks, the may will company whether just following in agreed shares or repurchase was purchases before the Murray AGM in has billion AGM. repeat authority the XX, date as AGM. ordinary repurchased these Resolution shares, to the executed to if it after the X.XX Murray October, we'd And and gives what be on us says the repurchase the states firstly, authority the the AGM Lucas. basically, first SEA authority the to that XXXX, resolution the terminates. after what to [ph] And And million XXst purchase we shares. to

that buyback the seeing, is was prior probably in So one that is the announced in quoted in in the share XXXX covered under we've authority, relates disconnect we the the numbers SEA. program which Anything quarter. second Lucas, hence, that this to your only the current calculation, that the you're to short,

Lucas Herrmann

Thank Craig. you,

Craig Marshall

Okay.

Murray Auchincloss

between It really Obviously, XXX Azule, next a business. XXX ourselves. And on can now, about the year years. of for MBD we $X opportunities look produces it's $XX about there. over there. a barrel. more MBD about complete to We'll the investing getting to to We cost see that do after billion pleased And a synergies, further and at look Lucas, that Eni $XX do CapEx forward five fantastic entity what to We're to inside we'll growth growing transaction. operates

have We're to interested We cash. distribution a shareholders. quarterly in not trapping

working sure and to other we we'll now, cash we we perspective, show the And only suspect different sure From get through capital needs. But is that entity you between And an a making be happened. it post-tax, I it doesn't has they it that. income had know net entity, transaction. in that very pleased. sweeping a dividend get in this what larger type well. ourselves thing what accounting knew as one-line and the The you et I'm Obviously, up show overall, as a cetera. of So has EBITDA, mention sure Eni flow

higher third the distribution, we you Lucas. larger they've that I And because our than built had relative So cash a in entity to than proceeds. hope had quarter that of amount up they have had. the distribution the helps, in inside we a that's simply see might

Lucas Herrmann

Yes.

spend moment, Murray. I one -- just can if Just

short clear, an to higher perspective? the billion So so that Is from be than this just element will a I effect was interpretation this simple case that $X of from think, The of in be or or of I of Azule reason to with mean, repayment that in be Eni the BP is capital. a capital appears quarter. working cash higher than indicated

Murray Auchincloss

Correct, Lucas, yes.

Lucas Herrmann

Brilliant. Thank you.

Murray Auchincloss

Pleasure. chat Lucas. Nice to

Craig Marshall

the Thanks, from next Malek Christyan question Lucas. We'll take at JPMorgan. Christyan.

Christyan Malek

Hey, thanks Craig.

you've versus that provide linked exceptional perhaps But to and a return achieved. the couple or how could I'm clearer you've And link as And of just correlate frame framework that trying just provide back of normal to standard of you definition answered. a away a now your if cash couple trying So trading as it be results. were sort just could the already return around deviations frame to quite into sort to just is a understand would coming or questions cash back useful what you going typically of of from help, going make forward. far

chain break the there refers want CapEx? question and portfolio your your in decline just to in rates of you to second rank Thank volume volumes chose context outlook on set against add XXXX ability The any and to your add your volumes to your you. if oil hypothetically, [indiscernible] beyond. understand supply bottlenecks? short-cycle in Is I could way, you

Murray Auchincloss

gas did in We in have quarter Christyan. Thanks, quarter trading. exceptional an the third Great.

an an in provide in what XQ transparency me exceptional I XQ. can guys the think we you out is with Remember, quarter that quarter figure without it number. stating you and average enough we had

and sure guys that I'm out can So figure that's the level pretty you of yourselves. earnings,

look Paul subtract the the capital -- doesn't obviously, And accumulated would what's date. really. the takes pay how add surplus It's just we a the to frame, is, it And move. impact a just the a we've understand the Board the we effectively As contributor that an goes And on that XX% what answer either accumulated or is We surplus be, as into the to which today cash say. working announced what outlook earlier, outlook. what financial based plus through does the Obviously, far balanced -- flow, went position. a the impact as forward, maybe pretty now move think outlook, through we we're of to spending in have And outlook. how the we're we capital Cheng's feeling in some on which off moving upstream. will We're shareholder things then few $X this XXXX bullish I looked right in historic On about about And upstream. projects on we'll at returns XXXX the quarter. billion question, in buybacks finishing I forward. CapEx, the

which room We're another Mexico, upstream. of into at Permian. Haynesville of two the We're gives accounting in Iraq couple a Gulf at the at to projects then workover CapEx a us between another XXXX off. the We've Lower rigs spend Some as more come Sea. well, North into into the rigs the the got to of bringing rig. effects and two looking bringing Angola the on bringing and and fixed rigs three looking XX We're looking

XXXX these get sand. can process, looking So what you and highest back we get you at you business. capital you And frack can in our talk the challenge suppose days you quality is I around to crews, the we'll the work we key February. through come with can we're are XXXX get fleet, frack supply can fleet, in about chain opportunities rigs, doing budgeting across as can get challenges, you and get

right have choking it's really at don't activity We ramp we chain secure So up supply a now. chain prices. supply the reasonable if that's won't

So I hope that helps Christyan.

Christyan Malek

back the a like point. I normal put environment? trading on dividend exceptional that mean, environment come I'd have In words, another a then just Yes, XX%, first would way. if exceptional is an special. other you drive just to trading an on that that anchored

away your if two standard in sort your of payment the in return understand now trading, through maybe sense what anchor terms to of sort three to that trying cash makes cycle what deviations process versus of sustain? Just is

Murray Auchincloss

surplus does clear don't business with that the think we for crystal be clear XX%. priority. XX% portfolio. priorities. market an of our XXXX, inside financial the what individual fifth absolutely We've the be can I to Christyan, just our matter Yes, is Five frame. on aim tried Doesn't

questions, outlook Christyan. company. Yes, the better. worse. for answer moves yes, some So together and overall, some our into do do for businesses XXXX. the Thanks just added it businesses for And is it XX% the just gets But overall

Christyan Malek

you. Thank

Craig Marshall

Thanks. Giacomo. the at question next from Romeo we'll take Jefferies. Giacomo

Giacomo Romeo

Yes, Thank morning. you. good

back again, relates over smooth -- time have there. volatility EBITDA cash. -- in sort distribution is have is just in you EBITDA The the on of presentation? -- question have column And where year, the I acquisition. into noticed last of of I unit sort wanted to you First decision portfolio last to us any have I to Archaea other of sit XQ to Board that of Algeria we back the seen check do these seen divestments, a asset at we assets referred also you your terms high-grading question year, your to, think showed surplus the that the you taking buyback, this short-term in

over led Just which the not effect the trying of wondering of the decision for in outflow this quarter. to considered buyback an the to what kind this as therefore, are following in the circumstances to sat being working and quarters? the large And smooth setting then, effect over capital will what average exceptional

Murray Auchincloss

you. a about for that year talked be I now, we a so Gosh, it's PSAs think. lower relatively late margin Great. soon. expiring They're they're On Thanks, are bucket about back us. will yes, fixed ago Giacomo. that the asset Algeria, price, in and a life with

So that On fin that answers question. frame thinking how are we fin I frame, about and think buybacks.

the take that's on go the XXXX. a I it's determination outlook buyback what the for follows helps I the at at We surplus think look surplus. I accumulated at to for environment. dead the to just look Board language, macro -- just We guys. basically date. this look that the Obviously, of back of determine XX%, need And the amount believe, boilerplate And formula. quarter. We to the the

think that that's to by the how we As have the And in will will the hope to made fourth that. quarter. Archaea be quarter, with a the if around occur, they we transaction obviously, take Board to But decision that a look fourth completes decision the out that's what deal backwards, this. I'm and year we February, rules do about a And you $XX. that in how Board a told are guidance We've to going told look of thumb you do billion we is. at not good forwards. prejudge we But $X we've the that for look

think you help just one thumb there, Craig. how So encourage the to to leave that billion $X I rules of the to I'd at $XX about we'll back it. understand go and think we And just

Craig Marshall

we've you working that something which, And that I'd $X think to through it half as I billion expected well. of is consider thing forward-looking you told Murray's the into is capital as to capital, Yes. outlook, cash XXXX also second impact when the relates one the add release and other of that explained, is Board XXXX working considers on as

and rules relates releases as alongside also terms in that how you've how sense above and at as capital a now look $X billion of impacts the the that. you cash through operating working it So $XX to got thumb about that to Murray of feeds the surplus working on guidance, capital ahead the cash, says, as

Stanley. take We'll next the from question from Morgan Rats Martijn Great. Okay.

Martijn Rats

morning. of lot of been a Look, I ask two good sort but Yes, more. to has sort hi, want frankly, already covered,

buybacks the billion $X.X share the sort of is quarter incremental of count. fourth of in So X.X%

what it of at that's announcement. be have that the quarter, So seems points now per DPS XX%. that, sort for do discussion fourth billion that should to -- that It every conclusion on to of whether you -- you of X.X%, if I And will say another would was well, every the will the anticipate lies we quarter four start so buyback quarter, had last next building we fair to be X.X a last sort percentage growth add the sort buybacks wondering, the years, $X.X of it's sort to on had much been the embargo difficult question lines to you of navigate here, thinking whether wanted of but you're sort along XQ. of you to to us. put we're thoughts see wanted I we ask any on incredibly you But than to issue, connecting basically I the arguably today's dividend is any you'd to the say oil. updated mean Russian EU of it closer of impact if discussed I to extension it buyback an second the And tomorrow's growth. right in

wondering both this was expect impact company would I you and the the market. how to So

Murray Auchincloss

state. a Surplus to low on just today. some are as embargo relative the stocks held EU OPEC+ The capacity Martijn. maybe history. Thanks, few well relatively facts to things five-year Great. compared Yes. low I guess Oil, to history. oil, relatively Oil is by

facts. the How December think is EU I that sanctions February are So well as we're as be will still and those in gap. implemented the something two price closely watching

I unfold. think impossible these how will to predict almost it's things

on a of demand. Chinese got lot just You've parts moving

of lot a parts how sanctions will the on got EU moving impact. You've

on a of moving lot parts You've destruction. got demand

level very, is uncertainty. products the difficult capacity out levels to I it given low moving at all figure are low And prices stocks find and coming where oil What I so surplus quarters, and price over that do of that levels. are very at is know

in will elevated that Martijn. helps. difficult but I've trying I'm time dodge, as hope I think and a So things I think unfold conclude volatile, to we it's that not as how period to I understand seen.

As far as your buybacks that. on leading to dividends, question

doing XQ, As about we'd to through interest balance Henry is the the think and we an that's why We'd to things. with the balance themselves our an all the those obviously make slavishly the Hub stock. debt look it back we with want three Board point. lot load look to We retired quite as XX And lot awful increase transition, and any we focal RMM that of dividend of resilient being these well. gave key increase operations sure and $XX the confidence point retired point dividend were associated and awful at of the

So I else. by balance as think as it's point driven much anything

X. on then, anchor XX, you We think point, XX forward balance will about how Looking this? can and

Of We'll, hopefully, look we'll, look at note course, operational that's load. to of guidance X% you in my we've that's I look cheery only moving at look the annum, that And give is course, The capacity wave that And about we coming interest. the Martijn. what at firm hope helps, But oil. strong $XX it doing now. per can and voice got increase a performance the dividend how forward. of we have assuming buybacks by I we of course, will dividend we to the at hear you think performance.

Martijn Rats

Okay.

Craig Marshall

question of America. we'll at the Martijn. Chris And Chris? Thanks, from Bank take Kuplent next

Christopher Kuplent

quick much. thank just Murray, on a you very Yes, one Alaska.

some reminder. collected And of have compare as a gas proceeds quarter. sort you it You've time How this that the a price now just headline had disclosed to disposal, the collected more many on the at you when you then trading. lastly, of

being that of a transparent? in it's make Why there they about get fear X work You're gas in Is it fear? more the kind it billion? the not billion yourself street, Or by X gas is way that you political might should trading environment? do competition it in your the is you very across contribution telling not Who traders terms QX. thinking the out us

Murray Auchincloss

Chris, on the I'm to going comment number. not

transparency tricky thing. on is a think I trading

I you've analyst and the entire we this trying observed with have focused not that's think, when I'm comes to got a sure conversation on the productive business others that's trading, generally, that community very broad-based transition. do

on mind. my what then take. and X-ish so So Chris, focus investor I or announcement, the on to -- Alaska, I far focusing the to covers And think number about the relative broad conversation, is it's give original is think, the about

Christopher Kuplent

All right, thank you.

Murray Auchincloss

It's pleasure.

Craig Marshall

the from Wong at Amy Credit We'll question Suisse. Okay. take Amy. next

Amy Wong

couple a actually. It's your and of good product questions, Kind related guys. of Hi, customers more line. to morning bit both strategic,

at your kind flow, and go on So seem all of thinking about looking this you've site metrics quarter cash backwards. to convenience

feel theme? to you how on you us reporting, launched And customers EV in your your you when do then strategy how you'd second your your come progress there business. the So new on you could measure question market is, your on update about back you and said just charging mobility the metrics on

some some on You've progress good arguably made there acquisitions.

that stand-alone should to you. of we to metrics Thank some reporting when So and expect business? see related line

Murray Auchincloss

Amy. now. they're tough when right sector that prices, have headwinds base in a China. They making is talked oil are additive et the They the -- in thanks, we've in strategic cetera, Yes, before, all lockdowns, Castrol progress. largest a prices, Chinese tough Great, about

thing and we forward she's I We think plan And competition in her December. against gives externals. we Castrol that the business with great in me I And is with in up hope the Bernard last for benchmark relatively is that have great we if coming a leader have against sense. a And she'll to competitive week, well it to XX-day it. that the doing look actually that published new hope present can and take

flat then should now. just program the we gradually base great additives need take globally, oils hopefully, us. effect just to to there. be And then we for We China And not see So will our fixed need unlock. brand

Castrol So benchmark for that an the lot is for quarter. We strong. of and relative every future hope performance awful very competitive

seeing as XX As isn't who move And Emma, months. a we're we week. energy a far in in as fantastic. heck past We're it, Richard, is sales. over after runs more the China record is points Netherlands number, fast a XXX up there charge XX% the XXX globally utilization installing only of we'll on to X% of a U.S. Progress up business at record utilization. That's week. is across EVs, to behalf and in start the having We're provide XX EVs X% embarked to forward. to utilization already Germany,

need be a business, electrification, be it be separate very excited session We're it. moving still I for a we'll convenience definitely growth big and It's our one about showing next year, Craig of know forward. you. that more that's if fantastic engines it fabulous So about and you to don't but Thank debate, big, progress. February I will in will information provide something we'll or more you.

Amy Wong

Thank you.

Craig Marshall

the Thanks, penultimate Amy. Cowen. We'll question Jason from take at Gabelman

Jason Gabelman

just that that will your within volumes be I spot your to on my year Can expectation down, prices? how you then LNG to incident. discuss just with a on next how the result. How question exposure and coming repair maybe Hey, then over the the portfolio. online. any And if evolves Thanks. the cost term kind these second about versus discuss to asset maybe ask growth as long divestment that to offtake, plant there's for good And you of could new mentioned impact afternoon. Toledo change does the you wanted

Murray Auchincloss

The anything we we'll can't On give shut complete right guide Thanks, we're forward. that to then talked you investigations this growth how And now. any process. The decide I learn and until guidance But is move Toledo, the we on lessons do Jason. how LNG think apologies. continue. can't On I need through Great. price we really about. about site investigations, exposure. you the as really down, My and and we

our every the things through try these the optimize about think you If Each cargoes and have we value over equity per teams business, and quarter, OTC merchant million we they that and bought either upon see. to time. of or improve XX derivative tons of the annum earnings positions

I in, prices that the in programs in, that generally we're know new windows. XXXX, cargoes long as with new purchasing 'XX come As time the time projects those you that come and window, talked so in were you'll about, 'XX, list done

Some will be of that, on contracts hedged won't sales the some be.

sure early that the will there of don't the too you of hedging much in ahead make do You assets get producibility be much too want to the phases. yourself and when on derivative is doubt what

that you'll production. get you And mix. stuff as certainty, start on as more you in get a certainty then it's lock to So more

about the think flexibility touch more about competition different that's competition the a have. I think I the And to how So than rest a have optimize, maybe bit of the some than I that we part we is think it. think, that's little of

basins we're the contracts. clauses have on So always inside optimizing across the based the quarter we our in

that, I'm So bit BP a maybe differential. Maybe misleading that's Jason. what I myself on little think makes

So I've about. I than more ever hope talked that's probably

before I'll think upset. I get Jason. my there Thanks, traders gas stop

Jason Gabelman

Okay.

Craig Marshall

last one another, in to Jason the Edinburgh Kenney And Jason Okay. Santander. question, from of

Jason Kenney

five from Renewable kind across when And years your in material Hub possible? Libya I'm commitment some now. then beyond of opportunity. first secondly, CapEx think And that Gas. Craig, do time Craig. EBITDA maybe the Thanks for thanks, Energy Australia just Hi, there. into But significant Asia you the around scale from is first assuming the on

Some larger insight you've field news that's Oil with NOC. flow Any gas in Libya Company got Eni the begin this according getting Great. gas or that a Thanks. than National potentially on commitment. BP frame time from the there. for Zohr Anything apparently. to to scale This is week med

Murray Auchincloss

there Libya with Libya. On And program. That's transaction a we'll AREH. the on Libya. Eni ahead, On exploration offshore what two Gas, We've I'd recently in to in an about completed say AREH, Yes. think equalize are exploring. probably years it's the in to start ways

all, First a it's of domestic play.

in relatively The to international domestic is play have serious have lock the for we quite that. financing, cetera, pretty and hydrogen play green happening. complexity power that of by complexity the the bring high. guess that have big can lock-in to if electrolyzers other on you that be very probably achieve would We'll could the will stakeholder base a investment. So brilliant The allows hopefully customers. big something 'XX, and, et 'XX, a then capacity that That a industries? green We'd the nearby on we And We'll form for in decade. my when course, project or what export lock mining very, low. build to secure of middle some rights. That's then to the is hub be end happens, would that be 'XX starts would

customers at get helps, going time, that side we're So our that then as question. thank start we'll to to now. I work for We'll over And international you Jason. that well. it. completed some hope export domestic growing the of with we've hopefully, on looking delighted And your

Jason Kenney

Thanks. understood. Yes,

Craig Marshall

and questions. thanks Thank the for everybody Jason, That's of the Q&A. the Okay. all to you, end

of hand So couple a you. closing for over me Murray maybe just Thank to let questions.

Murray Auchincloss

to thanks listening. everyone and for Craig, Thanks,

provide I for strategic financial frame. and against delivering been decent for fourth progress we're delivering our you to results, and think it's we'll update delivery delivering We're that BP on shareholders think distributions. on operational in We're further frame. that's another our and also remain quarter we plan focused look on. forward updating this February. in growing through strategy financial where an And quarter on really for We what our we

forward you again and chatting for look So I and future. Bye-bye. thanks questions today, listening your the to in

BP p.l.c. (BP) 1 Nov 222022 Q3 Earnings call transcript