BP p.l.c.

Good morning everyone and welcome to BP's third quarter 2023 results presentation. I'm here today with Murray Auchincloss, Chief Executive Officer, and Kate Thompson, 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 that refer to our estimates, plans and expectations. Actual results and outcomes could differ materially due to the factors we note on this slide and in our UK and SEC filings. Please refer to our annual report, stock exchange announcement, and SEC filings for more details. These documents are available on our website. Let me now hand over to Murray.

Thanks, Craig. Good morning, everyone. Thanks for joining us. We hosted our investor update in Denver a few weeks ago, focused on our oil, gas, and biogas businesses, including a site visit to BPX's Permian operation. We had three core messages that I want to reemphasize today. First, our strategy, transforming to an integrated energy company, is unchanged. Second, we are focused on delivering our strategy safely, quarter on quarter, to meet our 2025 targets and 2030 aims. And third, we are focused on growing long-term shareholder value. We continue to expect to grow EBITDA to 2025 and aim to keep growing to 2030, all while delivering compelling shareholder distributions. Earlier this month, we said we expect 2030 adjusted EBITDA aims from resilient hydrocarbons and group will be around $2 billion higher than BP's previous targets to a range of $41 to $44 billion and $53 to $58 billion, respectively. Underpinning this increase, we presented what we believe is a high-quality, distinctive oil and gas portfolio and a leading delivery model enabling efficient execution, We expect to grow EBITDA from oil and gas to 2025, sustain it at that level through 2030, with the capacity to sustain well into the next decade. And we believe there's more to come. This slide summarizes the key message from the event. And if you haven't seen the materials, we encourage you to take a look on BP.com. Turning then to our third quarter 2023 results. For the third quarter, we delivered strong operational performance with upstream plant reliability and refining availability at around 96% year to date. This came on top of 3% volume growth year to date and a 6% decline in unit production costs. Underlying earnings were $3.3 billion, and we delivered robust operating cash flow of $8.7 billion, including a working capital release of $2 billion. We are executing against our disciplined financial frame. Today, we have announced a further 1.5 billion share buyback. This reflects the confidence in our performance and the outlook for cash flow. Turning to strategic delivery, where we see continued momentum. In oil and gas, we started up the Tangu expansion project in Indonesia, our third major project this year. In August, we started up Bingo, BPX's second major processing facility in the Permian, doubling our oil and gas processing capacity in the basin. And we received regulatory approval for Murloc, a two-well oil and gas redevelopment of the Marnuk-Skua field in the North Sea. In LNG, we signed a long-term agreement with OMV to supply up to 1 million tons per annum of LNG for 10 years from 2026. And we secured our third long-term LNG offtake contract from Wood Fiber, where we are the sole offtaker of almost 2 million tons per annum from 2027. Turning to our transition growth engines, in bioenergy, we are scaling up our biogas business, Arkea Energy, with the first Arkea modular design renewable natural gas plant now online in Medora, Indiana. This underpins our confidence in our expansion plans going forward. In EV charging, we continue to accelerate our EV charging ambition across key markets. We have announced an agreement with Tesla for the future purchase of $100 million of ultra-fast chargers in the US. This is part of our approved $500 million EV charging infrastructure investment in the US previously announced. In the UK, BP Pulse, together with partners, launched the country's largest public EV charging hub at the NEC campus in Birmingham, enabling 180 EVs to charge simultaneously. In convenience, Travel Centers of America continues to integrate well. And in the first nine months of 2023, excluding TA, we delivered around 8% year-on-year growth in convenience gross margin. And we extended our successful strategic convenience agreement with Aachen in Poland with plans to add more than 100 stores to our network by the end of 2025. In hydrogen, the Midwest Alliance for Clean Hydrogen, of which BP is a member, announced it has been selected by the U.S. Department of Energy to develop a regional clean hydrogen hub in the U.S. Midwest. And finally, in renewables and power, we have increased our pipeline to 43.9 gigawatts, with the addition of four gigawatts from two offshore projects in Germany recently awarded. Now, let me hand over to Kate to take you through our third quarter results in more detail.

Thanks, Mary, and good morning, everyone. It was great to meet a number of you in Denver recently. For the third quarter, we reported an underlying replacement cost profit of $3.3 billion compared to $2.6 billion last quarter. Compared to the second quarter, in gas and low-carbon energy, the result reflects a weak gas marketing and trading result following the exceptional performance in the first half of 2023. In oil production and operations, the result reflects higher oil and gas realizations, despite the impact of price lags on Gulf of Mexico and UAE realizations and higher production. And in customers and products, the product's result reflects a higher realized refining margin, a lower level of turnaround activity, and a very strong oil trading result. In our customers' business, we continue to show strong momentum in convenience and aviation, benefiting from seasonally higher fuel volumes, partially offset by lower margins, given the rising cost of supply. Turning to cash flow and the balance sheet. Operating cash flow was $8.7 billion in the third quarter. This includes a working capital release of $2 billion after adjusting for inventory holding gains and fair value accounting effects and other adjusting items. Capital expenditure was $3.6 billion, including inorganic expenditure, net of adjustments. During the quarter, we repurchased $2 billion of shares. The $1.5 billion program announced with second quarter 2023 results was completed on the 27th of October. Surplus cash flow was $3.1 billion, and net debt reduced by $1.3 billion to $22.3 billion. Our disciplined financial frame remains unchanged with a focus on five key priorities. A resilient dividend remains our first priority. We have today announced a dividend of 7.27 cents per ordinary share for the third quarter. We remain committed to maintaining a strong investment grade credit rating and continue to target progress within the A range. We aren't targeting a double A rating. We are investing with discipline in our transition growth engines and in our oil gas and refining businesses. Our capital expenditure guidance for 2023, including in organics is now expected to be around $16 billion. And we're committed to allocating 60% of 2023 surplus cashflow to buybacks subject to maintaining a strong investment grade credit rating. Finally, we intend to execute a buyback of $1.5 billion prior to reporting fourth quarter results. This reflects the confidence we have in our performance and the outlook for cash flow. I'll now hand back to Murray for his closing remarks.