1 / 31

The BP Story

The BP Story. Brian Miller AGI Leadership Forum – May 1, 2006. Who we are. BP is an oil, gas, petrochemicals and renewables company We employ around 102,900 people We have operations on 6 continents and in over 100 countries. …market capitalization $231 billion (as at 7 Feb 2006).

brigit
Download Presentation

The BP Story

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The BP Story Brian Miller AGI Leadership Forum – May 1, 2006

  2. Who we are BP is an oil, gas, petrochemicals and renewables company We employ around 102,900 people We have operations on 6 continents and in over 100 countries …market capitalization $231 billion (as at 7 Feb 2006) …annual revenues/turnover of $253 billion (in 2005) …the 2nd largest oil & gas company and one of the 10 largest companies in the world …serving 13 million customers every day

  3. RESOURCES CUSTOMER FACING Exploration & Production Refining & Marketing Gas, Power & Renewables Integrated Supply & Trading (including Acetyls & Aromatics from Petrochemicals) What we do BUSINESS SEGMENTS

  4. Our global presence Oil Gas Chemicals Refining Market positions An opportunity and a responsibility

  5. (1999) (2000) (2000) (2002) (2002) 2. 1. (2000) (1996) (2001) (2001) Where our people come from • Some Mobil employees became part of BP staff post dissolution of JV in Europe • BP acquired some Belgium assets

  6. Reserves and enterprise value: 1997 EV $bn 300 250 200 Shell Exxon 150 100 Mobil BP Texaco ENI Elf ARCO 50 Chevron REP Amoco Fina TOT 0 Philips 5.0 10.0 15.0 20.0 25.0 Reserves billion boe End of year 1997, based on published data

  7. SectorStructural Change since 1997 350 Exxon/Mobil 300 BP 250 Royal Dutch Shell 200 Enterprise Value $bn TOTAL 150 ENI Chevron 100 Repsol 50 Conoco/Phillips 0 0.0 5.0 10.0 15.0 20.0 25.0 Proved Reserves boe billion

  8. Market Cap ($bn)Company 3821General Electric 3802Exxon Mobil 2623Microsoft 2344Citigroup 2215BP 2126Wal-Mart Stores 2107Royal Dutch/Shell 1998 Johnson & Johnson 1959Pfizer 17810Bank of America 17611HSBC 17112Vodaphone 16513IBM 14814Total 14415Intel Corporation The world’s largest companies Source: Financial Times 31 March 2005

  9. Our aspirationA great future

  10. To be numbered amongst the world’s great companies when evaluated on financial returns and growth, being a great place to work and building a positive relationship with society. BP’s strategy, February 2004 Our aspiration and our purpose “ “ Our fundamental purpose as an organization is to provide better goods and services in the form of light, heat, power and mobility to increasing numbers of people and thereby to deliver shareholder value on a long term basis. Sustainability Report 2005

  11. top brand As rated by other senior executives Highly regarded by customers & stakeholders Consistent out-performance of peers Consistently rated as a buy by top brokers Attract and retain top talent Key dimensions of great companies Top brand Admired and respected by peers Great company Financial performance Recommended by brokers Desirable employer Source: McKinsey

  12. Our business strategyFuelled with possibilities

  13. Existing profit centers Existing profit centers: managed decline Alaska North Sea North America Gas Egypt Middle East Latin America

  14. New profit centers Capital efficiency: project delivery TNK-BP Azerbaijan Gulf of Mexico Deepwater North Africa Trinidad Angola Asia Pacific For further information contact Michael Elliott michael.elliott2@uk.bp.com

  15. Connecting to the Future--Business and Policy Intersections

  16. BP is a gas supermajor • Gas now makes up some 40% of BP’s total production • BP is one of the world’s largest gas marketer and traders providing gas to customers in 26 countries • We are the second largest supplier of gas into LNG plants Our medium-term intent is to grow by 2% to 3% a year, in line with global gas demand by: • realising the full potential of existing and new profit centres

  17. Alternative Energy • In 2005, we established a new business called BP Alternative Energy to generate and market cleaner, low carbon power from solar, wind, hydrogen and natural gas sources. • $8 billion investment over 10 years. • Globally, the power sector is the biggest source of greenhouse gas emissions – responsible for about twice the emissions of the transport sector. • Some 40% of the power-generating capacity required to meet projected world electricity demand in 2020 has yet to be built. • The business will initially employ around 2,500 people.

  18. Solar Operating for over 30 years we are one of the world’s top three solar manufacturers and marketers. We plan to increase sales of solar panels from 110MW capacity to 300MW by 2008. Wind We have constructed two wind farms in the Netherlands producing enough power for over 15,000 Dutch homes. Under Alternative Energy we aim to grow our wind business from 30MW to 450MW in 2008 and become a Top Tier player by 2015. Hydrogen Power Generating power from hydrogen using fossil fuels such as coal, oil and natural gas. In June 2005 we announced our plans to design the world’s first commercial hydrogen power plant in Scotland and earlier this year we announced a proposal to build a second plant in California. The carbon dioxide emissions from generating power in this way are 90% lower than those that would be generated by burning fossil fuels. Alternative Energy

  19. Alternative Energy Natural Gas to Power • BP already owns, operates or contracts 12 gigawatts of gas-fired power capacity – enough to power over 10 million homes. • The majority of these plants produce electricity with combined cycle gas turbines and cogeneration plants. • Over the next 3 years we plan to start construction of two new gas-fired cogeneration power facilities with an output of more than 700 megawatts. Power Marketing & Trading • Among the top tier power marketers in North America. • In 2004, we provided customers with 300 million megawatt hours of electricity. • We also provide our wholesale customers with secure, reliable electricity and innovative risk management services to help reduce price volatility. • In many markets we are able to offer a number of low-carbon products, including certified green electricity, as well as integrated solar and clean grid power solutions.

  20. Our challengeA sustainable existence

  21. SustainabilityHow we work Sustainability is fundamental to our purpose as a group. Everything we do is designed to achieve the goal that our board sets on behalf of our shareholders, to maximize shareholder value on a long-term basis. In order to maintain value in the long term, we not only have to develop a successful business strategy but pursue it in such a way that we earn the trust of shareholders, customers, local communities, governments and others whose support is critical to our long-term future. To retain that trust we have to behave responsibly and consistently. BP’s Sustainability Report 2004 (published April 2005) “ “

  22. 6000 5000 Libya 4000 Russia Nigeria Production (mboe/d) 3000 New Profit Centres 2000 Kuwait Iran 1000 Existing Profit Centres 0 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2008 BP’s business profile continues to change Source: 2005 – 2008 BP estimates Changes to our asset portfolio present reputational risks that drive our increasing focus on corporate responsibility

  23. World’s estimated annual emissions from hydrocarbon consumption is nearly 25 billion tonnes of CO2 Emissions from BP’s productsaccount for approx 5% of global CO2 emissions BP’s operations contribute less than 0.4% of annual global emissions We are looking at ways to reduce emissions from our products as well as our operations EnvironmentClimate change context Slide 2

  24. EnvironmentOur position on climate change Our position is that there is no single solution! We will continue to focus on three main areas: • Provide leadership • Continue to reduce the carbon content or impact of our products • Continue to minimise our operational emissions

  25. BP brand story

  26. Perceptions • British company • Big oil company that makes a lot of money • A global enterprise • An energy company • An organisation that cares about the environment

  27. Our brand aspiration “We want to build one of the world’s“great brands by building an“organisation devoted to revolutionising“the world’s relationship with energy.” Lord Browne (2000)

  28. USA

  29. A brand… Communicates a promise…. Evokes a set of expectations and associations - fromevery experience with a person, product, service or company Experiences : • How we work • What we say • What we do • What we stand for • How we deliver value Reputation

  30. BP brand theme…beyond petroleum.. Beyond is about… it does Not mean we are… • abandoning oil and gas or getting out of hydrocarbons • focusing only on alternatives (renewables) • the products we produce and sell, but it is also about our relationships & how we think, behave & perform as a company • referring to it as the name of the company • using it just as an expression in advertising • reaching past one company to combine the talents of many • delivering performance without trade-offs • it’s the courage to lead, not just the ability to compete • innovating, improving & making a difference • being creatively engaged and applying the skills we have to provide answers, not excuses

  31. Thank you… Questions???

More Related