BP p.l.c. (BP) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

May 2, 2023 4:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Welcome to the BP Presentation to the Financial Community Webcast and Conference Call.

I'll now hand over to Craig Marshall, Head of Investor Relations.

Craig Marshall - Head of IR

Good morning, everyone, and welcome to BP's first quarter 2022 results presentation. 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. Actual results and outcomes could differ materially due to the factors we note on this slide and in our U.K. 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.

I'll now hand over to Murray.

Murray Auchincloss - CFO

Thanks, Craig. Hello, everyone, and thanks for joining us. We're here today to report on BP's first quarter 2023 results. First, we continue to deliver resilient operational and financial performance. For the first quarter underlying earnings were $5 billion and we reduce net debt to $21.2 billion.

Second, we are executing against our discipline financial frame, including the announcement of a further 1.75 billion share buyback. And third, we are advancing at pace with our transformation to an integrated energy company. Since reporting fourth quarter results, we have made progress toward our 2025 oil and gas production target with a safe startup of Mad Dog Phase 2 in the Gulf of Mexico. In addition, the KGD6-MJ project offshore India is in the final stages of commissioning. With two wells open to flow gas and full startup expected later this quarter.

We have also further strengthened our resilient oil and gas portfolio. Announcing our intention to form a JV with ADNOC, focused on gas development and international areas of mutual interest, including the Eastern Mediterranean. BP expects to contribute assets to form the JV and this made a non-binding offer with ADNOC to acquire 50% of NewMed Energy.

Advancing our Kaskida project in the Gulf of Mexico to concept selection and agreeing to acquire shells 27% interest in the Browse project offshore Australia subject to approvals. We have agreed to acquire Travel Centers of America, which is expected to almost double our convenience gross margin and provide growth opportunities across four of our five transition growth engines.