Second Quarter 2011 Results
Release date: 26 July 2011
Download the full version of our Second quarter 2011 results using the link below.
(a) This results announcement also represents BPs half-yearly financial report for the purposes of the Disclosure and Transparency Rules made by the UK Financial Services Authority. In this context: (i) the condensed set of financial statements can be found on pages 13 - 18 and 22 - 32; (ii) pages 1 - 11, 19 - 21 and 33 - 43 comprise the interim management report; and (iii) the directors responsibility statement and auditors' independent review report can be found on pages 11 - 12.
(b) Profit (loss) attributable to BP shareholders.
(c) Organic capital expenditure excludes acquisitions and asset exchanges (see page 17).
Forward Looking Statements - Cautionary Statement:
This presentation and the associated slides and discussion contains forward-looking statements particularly those regarding: expected increases in investment in upstream production; anticipated improvements in operating cash flow and margins; divestment plans; reductions in certain costs associated with the suspension of drilling in the Gulf of Mexico; the quarterly dividend payment; the expected total effective tax rate for 2011; expected full-year 2011 organic capital expenditure; the timing of surveys of shoreline impacted by the Gulf of Mexico oil spill; the segregation of an additional $500 million of the Trust balance to cover costs associated with projects that will restore injured natural resources in the Gulf; the issuance of further Requests for Proposals pursuant to the Gulf of Mexico Research Initiative and the master research agreement thereunder; expectations regarding the impacts on costs of rig standby costs and of turnaround and related maintenance expenditures; the timing for completion of the Whiting refinery upgrade; the projection of cash generation from the Whiting refinery and corresponding impacts on BP’s US Fuels Value Chain position; the expected impact on third-quarter production of the divestment programme, ongoing seasonal turnaround activity across BP’s portfolio, and the ongoing decline of production in the Gulf of Mexico; expected fullyear 2011 production, and the impact of acquisitions and divestments and PSA entitlement on full-year 2011 production; expectations for improvements in underlying replacement cost profit; the number of exploration wells to be drilled in 2012; timing of new upstream projects coming on line; the expectation of up to 1mmboed of production by end of 2016 from new projects; the magnitude and timing of remaining remediation costs related to the Gulf of Mexico oil spill.
The factors that could affect the magnitude of BP’s ultimate exposure and the cost to BP in relation to the spill and any potential mitigation resulting from BP’s partners or others involved in the spill; the potential liabilities resulting from pending and future legal proceedings and potential investigations and civil or criminal actions that US state and/or local governments could seek to take against BP as a result of the spill; the timing of claims and litigation outcomes and of payment of legal costs; the anticipated timing for completion of and final proceeds from the disposition of certain BP assets; timing for and value of completion of certain acquisitions and strategic alliances; the expectation that more Gulf of Mexico permits will be issued in due course; contributions to and payments from the Trust Fund and the setting aside of assets while the fund is building; expectations for the upstream margin mix; expectations on reduction of net debt; expectations for third-quarter refining margins; expectations for operations at the Texas City refinery; expected improvements in petrochemicals production volumes; anticipated planned turnaround activity in the second half of 2011; the anticipated delivery of material and sustainable earnings growth and cash flows with returns well above cost of capital from refining and marketing; the anticipated timing for the receipt of regulatory approvals and closing of the acquisition from Reliance Industries; expected increases in demand for gas in India; expected improvements in BP’s average unit operating cash margin over the next five years; expected growth in absolute volume of assets held by BP; the schedule of projects due to commence operation in 2012 and 2013.
Intentions to increase the number of wells drilled in future years; exploration activity in four deepwater offshore blocks off of Australia; the timing for publication of investigation reports; the impact of BP’s potential liabilities relating to the Gulf of Mexico oil spill on the group, including its business, results and financial condition; the increase of investment that will deliver sustainable growth; expectations at getting back to work in Gulf of Mexico through 2012 and 2013; the increase of operating cash flow faster than production volumes; reshaping downstream for improved returns and growth; potential increase of distributions to shareholders.
By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will or may occur in the future. Actual results may differ from those expressed in such statements, depending on a variety of factors including the timing of bringing new fields onstream; future levels of industry product supply; demand and pricing; OPEC quota restrictions; PSA effects; operational problems; general economic conditions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations; changes in taxation; regulatory or legal actions including the types of enforcement action pursued and the nature of remedies sought; the impact on our reputation following the Gulf of Mexico oil spill; exchange rate fluctuations; development and use of new technology; the success or otherwise of partnering; the successful completion of certain disposals; the actions of competitors, trading partners, creditors, rating agencies and others; natural disasters and adverse weather conditions; changes in public expectations and other changes to business conditions; wars and acts of terrorism or sabotage; and other factors discussed under “Risk factors” in our Annual Report and Form 20-F 2010 as filed with the US Securities and Exchange Commission (SEC).
Reconciliations to GAAP:
This presentation also contains financial information which is not presented in accordance with generally accepted accounting principles (GAAP). A quantitative reconciliation of this information to the most directly comparable financial measure calculated and presented in accordance with GAAP can be found on our website at www.bp.com.
Cautionary Note to US investors:
We use certain terms in this presentation, such as “resources”, “non-proved resources” and references to projections in relation to such that the SEC’s rules prohibit us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosures in our Form 20-F, SEC File No. 1-06262. This form is available on our website at www.bp.com. You can also obtain this form from the SEC by calling 1-800-SEC-0330 or by logging on to their website at www.sec.gov. Tables and projections in this presentation are BP projections unless otherwise stated.
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