BP p.l.c. (NYSE:BP) Q2 2018 Earnings Conference Call - Final Transcript

Jul 31, 2018 • 04:00 am ET

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BP p.l.c. (NYSE:BP) Q2 2018 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

(Operator Instructions)

Executive
Craig Marshall

Okay. Thank you, everybody, for listening. We're going to turn now to questions and answers. (Operator Instructions) Lydia Rainforth, Barclays.

Analyst
Lydia Rainforth

Two questions, if I could. The first one's for Bob. When you're talking about modernizing the older BP group, are there areas where you're seeing that going ahead of schedule or other areas where it's a bit difficult, or is it evenly across the group? And then the second question for Brian, if I could. Just in terms of the cash flow numbers for this quarter, if I look at the cash flow levels on an underlying basis versus last year, they seem very similar despite the higher oil price. And I understand that you have trading loss and the Gulf of Mexico maintenance, but I was just wondering if you could quantify some of those broader impacts for us.

Executive
Bob Dudley

Lydia, thank you very much. This modernizing the group is extraordinary things happening all across the industry. And with BP, we throw around big words like Big Data, but actually, the use of sensors and working through the data all the way through exploration, all the way through our reservoir engineering and optimization of wells and field developments are quite astounding. And I think we're going to show some of you in September as visitors to BP. The areas that I think are going faster than we thought, and it comes from not mandating it from the top or putting these technologies out in the uptake and where they're being used in digital platform, such as blockchain, quantum computing, cognitive computing is starting to improve efficiencies, but it's really the use of our data, sensors and the ability to visualize these things and make decisions faster is quite, quite astounding. I don't -- I can't say what all the other companies are doing, but these is going faster, I think, than any of us thought. And it's -- once it gets going, the momentum just builds and everybody wants to use them.

Executive
Brian Gilvary

And then Lydia, on terms of cash, it's a 90-day window, so there's a lot of moving parts. So if you sort of look at the first half cash numbers, I think that gives you a better feel. But I'll talk about what's happened in 2Q versus 1Q that creates a bit of the noise. As you look quarter-to-quarter or 2Q versus 2Q last year, it's similar things. If you look at EBITDA on a straight 1Q-2Q, it's flat. You'd expect it to have come up. The difference is basically what you said. It's maintenance, the maintenance programs in Q2 and the slight loss in trading, which meant that effectively trading is a weaker result 2Q over 1Q. If you look at specifics over the year, half year $12.8 billion. If you strip out the $400 million of working capital build that we saw in the first half of the year, set against the $7 billion capital number and about $3.9 billion for the full dividend, including