1Q06 Part 2 of 2
BP PLC
25 April 2006
BP p.l.c. and Subsidiaries
Summarized Group Income Statement
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
Sales and other operating revenues (Note 3) 67,082 64,708 54,743
Earnings from jointly controlled entities -
after interest and tax 573 835 486
Earnings from associates - after interest and tax 115 133 114
Interest and other revenues 198 229 166
-----------------------
Total revenues 67,968 65,905 55,509
Gain on sale of businesses and fixed assets 597 210 1,162
-----------------------
Total revenues and other income 68,565 66,115 56,671
Purchases 47,613 45,541 36,441
Production and manufacturing expenses 5,217 6,118 4,702
Production and similar taxes (Note 4) 932 830 649
Depreciation, depletion and amortization 2,184 2,351 2,147
Impairment and losses on sale of businesses and
fixed assets 23 124 186
Exploration expense (Note 4) 189 208 160
Distribution and administration expenses 3,096 4,013 3,224
Fair value (gain) loss on embedded derivatives 442 1,350 122
-----------------------
Profit before interest and taxation from
continuing operations 8,869 5,580 9,040
Finance costs (Note 5) 191 172 172
Other finance (income) expense (Note 6) (48) 43 30
-----------------------
Profit before taxation from continuing operations 8,726 5,365 8,838
Taxation 2,929 2,029 2,479
-----------------------
Profit from continuing operations 5,797 3,336 6,359
Profit (loss) from Innovene operations (Note 2) (103) 442 304
-----------------------
Profit for the period 5,694 3,778 6,663
=======================
Attributable to:
BP shareholders 5,623 3,685 6,602
Minority interest 71 93 61
-----------------------
5,694 3,778 6,663
=======================
Earnings per share - cents
Profit for the period attributable to BP shareholders
Basic 27.40 17.90 30.79
Diluted 27.13 17.68 30.36
Profit from continuing operations attributable
to BP shareholders
Basic 27.90 15.82 29.37
Diluted 27.63 15.62 28.97
Summarized Group Balance Sheet
31 March 31 December
2006 2005
=====================
$ million
Non-current assets
Property, plant and equipment 85,487 85,947
Goodwill 10,322 10,371
Other intangible assets 4,887 4,772
Investments in jointly controlled entities 15,007 13,556
Investments in associates 5,371 6,217
Other investments 700 967
---------------------
Fixed assets 121,774 121,830
Loans 849 821
Other receivables 875 770
Derivative financial instruments 3,278 3,652
Prepayments and accrued income 1,524 1,269
Defined benefit pension plan surplus 3,469 3,282
---------------------
131,769 131,624
---------------------
Current assets
Loans 125 132
Inventories 18,823 19,760
Trade and other receivables 39,757 40,902
Derivative financial instruments 8,381 9,726
Prepayments and accrued income 3,918 1,598
Current tax receivable 222 212
Cash and cash equivalents 2,939 2,960
---------------------
74,165 75,290
Assets classified as held for sale 1,160 -
---------------------
75,325 75,290
---------------------
Total assets 207,094 206,914
=====================
Current liabilities
Trade and other payables 42,712 42,136
Derivative financial instruments 7,553 9,083
Accruals and deferred income 6,852 5,970
Finance debt 9,222 8,932
Current tax payable 3,909 4,274
Provisions 1,097 1,102
---------------------
71,345 71,497
---------------------
Non-current liabilities
Other payables 1,812 1,935
Derivative financial instruments 3,159 3,696
Accruals and deferred income 4,112 3,164
Finance debt 9,457 10,230
Deferred tax liabilities 17,066 16,443
Provisions 9,527 9,954
Defined benefit pension plan and other
post-retirement benefit plan deficits 9,336 9,230
---------------------
54,469 54,652
Liabilities directly associated with the assets
classified as held for sale 399 -
---------------------
54,868 54,652
---------------------
Total liabilities 126,213 126,149
---------------------
Net assets 80,881 80,765
=====================
Equity
BP shareholders' equity 80,148 79,976
Minority interest 733 789
---------------------
80,881 80,765
=====================
Movement in BP Shareholders' Equity
Movement in BP shareholders' equity $ million
At 31 December 2005 79,976
Profit for the period 5,623
Distribution to shareholders (1,922)
Currency translation differences (net of tax) 251
Repurchase of ordinary share capital (3,999)
Issue of ordinary share capital for employee share schemes 228
Purchase of shares by ESOP trusts (90)
Share-based payments (net of tax) 118
Available-for-sale investments (net of tax) (126)
Cash flow hedges (net of tax) 89
------
At 31 March 2006 80,148
======
Summarized Group Cash Flow Statement
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
Operating activities
Profit before taxation from continuing operations 8,726 5,365 8,838
Adjustments to reconcile profits before tax to
net cash provided by operating activities
Exploration expenditure written off 114 81 84
Depreciation, depletion and amortization 2,183 2,351 2,147
Impairment and (gain) loss on sale of businesses
and fixed assets (574) (86) (976)
Earnings from jointly controlled entities
and associates (688) (968) (600)
Dividends received from jointly controlled
entities and associates 1,011 844 355
Working capital and other movements (1,849) (4,171) (886)
-----------------------
Net cash provided by operating activities of
continuing operations 8,923 3,416 8,962
Net cash provided by (used in) operating
activities of Innovene operations - 823 412
-----------------------
Net cash provided by operating activities 8,923 4,239 9,374
-----------------------
Investing activities
Capital expenditure (3,295) (3,476) (2,825)
Acquisitions, net of cash acquired - (60) -
Investment in jointly controlled entities - (132) (15)
Investment in associates (157) (252) (99)
Proceeds from disposal of fixed assets 484 825 1,327
Proceeds from disposal of businesses 166 8,397 -
Proceeds from loan repayments 72 32 32
Other - 93 -
-----------------------
Net cash (used in) provided by investing activities (2,730) 5,427 (1,580)
-----------------------
Financing activities
Net repurchase of shares (3,861) (3,687) (1,933)
Proceeds from long-term financing 396 685 811
Repayments of long-term financing (65) (1,197) (2,192)
Net increase (decrease) in short-term debt (710) (2,423) (2,166)
Dividends paid - BP shareholders (1,922) (1,856) (1,823)
- Minority interest (66) (405) (320)
-----------------------
Net cash used in financing activities (6,228) (8,883) (7,623)
-----------------------
Currency translation differences relating to
cash and cash equivalents 14 (5) (9)
========================
Increase (decrease) in cash and cash equivalents (21) 778 162
Cash and cash equivalents at beginning of period 2,960 2,182 1,359
-----------------------
Cash and cash equivalents at end of period 2,939 2,960 1,521
=======================
Summarized Group Cash Flow Statement
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
Working capital and other movements
Interest receivable (130) (228) (63)
Interest received 146 208 34
Finance costs 191 172 172
Interest paid (310) (292) (332)
Other finance expense (48) 43 30
Share-based payments 83 56 77
Net operating charge for pensions and other
post-retirement benefits, less contributions (50) (398) (10)
Net charge for provisions, less payments (207) (284) (63)
(Increase) decrease in inventories 1,008 (318) (797)
(Increase) decrease in other current and
non-current receivables 335 (386) (1,317)
Increase (decrease) in other current and
non-current payables (106) 300 2,367
Income taxes paid (2,761) (3,044) (984)
-----------------------
(1,849) (4,171) (886)
=======================
Group Statement of Recognized Income and Expense
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
Currency translation differences 153 (308) (752)
Exchange gain on translation of foreign operations
transferred to gain or loss on sale of businesses
and fixed assets - (315) -
Actuarial gain relating to pensions and other
post-retirement benefits - 975 -
Available-for-sale investments marked to market 197 236 2
Available-for-sale investments - recycled to
the income statement (346) - (43)
Cash flow hedges marked to market 57 (48) (60)
Cash flow hedges - recycled to the income statement 57 43 (7)
Taxation 61 (295) 56
-----------------------
Net income recognized directly in equity 179 288 (804)
Profit for the period 5,694 3,778 6,663
-----------------------
Total recognized income and expense relating to
the period 5,873 4,066 5,859
=======================
Attributable to:
BP shareholders 5,802 3,973 5,798
Minority interest 71 93 61
-----------------------
5,873 4,066 5,859
=======================
Change in accounting policy - adoption of
IAS 32 and 39 on 1 January 2005
(wholly attributable to BP shareholders) - - (243)
=======================
Capital Expenditure and Acquisitions
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
By business
Exploration and Production
UK 182 211 176
Rest of Europe 69 79 31
USA 1,021 1,001 997
Rest of World 1,428 1,671 1,097
-----------------------
2,700 2,962 2,301
-----------------------
Refining and Marketing
UK 61 203 43
Rest of Europe 65 291 67
USA 258 535 190
Rest of World 107 379 46
-----------------------
491 1,408 346
-----------------------
Gas, Power and Renewables
UK 1 10 1
Rest of Europe 5 15 1
USA 20 42 13
Rest of World 14 57 6
-----------------------
40 124 21
-----------------------
Other businesses and corporate
UK 19 90 75
Rest of Europe - 71 20
USA 8 131 64
Rest of World - 4 1
-----------------------
27 296 160
-----------------------
3,258 4,790 2,828
=======================
By geographical area
UK 263 514 295
Rest of Europe 139 456 119
USA 1,307 1,709 1,264
Rest of World 1,549 2,111 1,150
-----------------------
3,258 4,790 2,828
=======================
Included above:
Acquisitions and asset exchanges 10 60 85
Innovene operations - 140 129
=======================
Exchange rates
US dollar/sterling average rate for the period 1.75 1.75 1.89
US dollar/sterling period-end rate 1.75 1.73 1.88
US dollar/euro average rate for the period 1.20 1.19 1.31
US dollar/euro period-end rate 1.21 1.18 1.30
-----------------------
Analysis of Profit Before Interest and Tax
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
By business
Exploration and Production
UK 1,165 (295) 911
Rest of Europe 303 398 1,328
USA 2,304 2,972 2,008
Rest of World 3,044 3,499 2,242
-----------------------
6,816 6,574 6,489
-----------------------
Refining and Marketing
UK (155) (590) (251)
Rest of Europe 686 (266) 835
USA 828 (316) 1,425
Rest of World 679 99 344
-----------------------
2,038 (1,073) 2,353
-----------------------
Gas, Power and Renewables
UK (72) (157) 118
Rest of Europe 7 (19) 6
USA 168 141 176
Rest of World 135 161 126
-----------------------
238 126 426
-----------------------
Other businesses and corporate
UK (141) (141) (179)
Rest of Europe (1) (124) 4
USA (104) (22) (9)
Rest of World 31 (122) 13
-----------------------
(215) (409) (171)
-----------------------
8,877 5,218 9,097
Unrealized profit in inventory (8) 234 (153)
Net profit on transactions between continuing
and Innovene operations - 128 96
-----------------------
Total for continuing operations 8,869 5,580 9,040
-----------------------
Innovene operations
UK (55) 490 58
Rest of Europe (21) (1) 366
USA 7 (42) 112
Rest of World (27) 21 (4)
-----------------------
(96) 468 532
Net profit on transactions between continuing
and Innovene operations - (128) (96)
-----------------------
Total for Innovene operations (96) 340 436
-----------------------
Total for period 8,773 5,920 9,476
=======================
By geographical area
UK 772 (1,039) 605
Rest of Europe 995 31 2,246
USA 3,245 2,974 3,464
Rest of World 3,857 3,614 2,725
-----------------------
Total for continuing operations 8,869 5,580 9,040
=======================
Analysis of Replacement Cost Profit
Before Interest and Tax
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
By business
Exploration and Production
UK 1,165 (295) 911
Rest of Europe 303 398 1,328
USA 2,311 2,964 2,003
Rest of World 3,044 3,499 2,242
-----------------------
6,823 6,566 6,484
-----------------------
Refining and Marketing
UK (148) (516) (272)
Rest of Europe 564 (170) 423
USA 637 354 999
Rest of World 559 167 261
-----------------------
1,612 (165) 1,411
-----------------------
Gas, Power and Renewables
UK (72) (157) 118
Rest of Europe 1 (18) 6
USA 178 147 167
Rest of World 194 157 121
-----------------------
301 129 412
-----------------------
Other businesses and corporate
UK (141) (141) (179)
Rest of Europe (3) (124) 4
USA (104) (22) (9)
Rest of World 31 (122) 13
-----------------------
(217) (409) (171)
-----------------------
8,519 6,121 8,136
Unrealized profit in inventory (8) 234 (153)
Net profit on transactions between continuing
and Innovene operations - 128 96
-----------------------
Total for continuing operations 8,511 6,483 8,079
-----------------------
Innovene operations
UK (55) 428 (13)
Rest of Europe (21) (4) 305
USA 7 (127) 90
Rest of World (27) 15 -
-----------------------
(96) 312 382
Net profit on transactions between continuing
and Innovene operations - (128) (96)
-----------------------
Total for Innovene operations (96) 184 286
-----------------------
Total for period 8,415 6,667 8,365
=======================
By geographical area
UK 779 (965) 585
Rest of Europe 865 128 1,834
USA 3,071 3,643 3,028
Rest of World 3,796 3,677 2,632
-----------------------
Total for continuing operations 8,511 6,483 8,079
=======================
Analysis of Non-operating Items
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
By business
Exploration and Production
UK (394) (975) (290)
Rest of Europe - 6 1,027
USA 2 (121) (1)
Rest of World 6 111 44
-----------------------
(386) (979) 780
-----------------------
Refining and Marketing
UK 20 (8) 8
Rest of Europe 229 (33) 1
USA 96 118 5
Rest of World 219 (27) (41)
-----------------------
564 50 (27)
-----------------------
Gas, Power and Renewables
UK (55) (306) 105
Rest of Europe - - -
USA - - -
Rest of World - (1) -
-----------------------
(55) (307) 105
-----------------------
Other businesses and corporate
UK - (57) (42)
Rest of Europe - - (1)
USA 9 (7) (4)
Rest of World - - -
-----------------------
9 (64) (47)
-----------------------
Total before taxation for continuing operations 132 (1,300) 811
Taxation credit (charge) (46) 421 (255)
-----------------------
Total after taxation for continuing operations 86 (879) 556
-----------------------
Innovene operations
UK (55) 242 (24)
Rest of Europe (21) (49) -
USA 7 (51) -
Rest of World (27) (6) -
-----------------------
Total before taxation for Innovene operations (a) (96) 136 (24)
Taxation credit (charge) (7) 190 10
-----------------------
Total after taxation for Innovene operations (103) 326 (14)
-----------------------
Total after taxation for period (17) (553) 542
=======================
(a) Includes the loss on re-measurement to fair value of $96 million in
the first quarter of 2006 and $(133) million in the fourth quarter of
2005, impairment charges of $24 million in the first quarter of 2005,
and a gain on disposal of $3 million in the fourth quarter of 2005.
Depreciation of Fixed Asset Revaluation Adjustment
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
Exploration and Production
UK 8 7 8
USA 55 62 76
Rest of World 5 5 5
-----------------------
68 74 89
-----------------------
Refining and Marketing
USA 25 26 25
-----------------------
25 26 25
-----------------------
Gas, Power and Renewables
USA 6 5 6
-----------------------
6 5 6
-----------------------
Total depreciation of revaluation adjustment(a)(b) 99 105 120
=======================
(a) Relates to the revaluation adjustment consequent upon the ARCO
acquisition.
(b) Excludes impairment of the revaluation adjustment which is included in
non-operating items.
Net Debt Ratio - Net Debt: Net Debt + Equity
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
Gross debt 18,679 19,162 19,564
Cash and cash equivalents 2,939 2,960 1,521
-----------------------
Net debt 15,740 16,202 18,043
=======================
Equity 80,881 80,765 79,911
Net debt ratio 16% 17% 18%
=======================
Production and Realizations
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
Production(a)
Crude oil (mb/d) (net of royalties)
UK 268 244 288
Rest of Europe 64 69 76
USA 444 432 560
Rest of World 1,584 1,655 1,481
-----------------------
Total crude oil production 2,360 2,400 2,405
=======================
Natural gas liquids (mb/d) (net of royalties)
UK 13 16 17
Rest of Europe 4 4 5
USA 122 111 135
Rest of World 34 33 31
-----------------------
Total natural gas liquids production 173 164 188
=======================
Liquids (b) (mb/d) (net of royalties)
UK 281 260 305
Rest of Europe 68 73 81
USA 566 543 695
Rest of World 1,618 1,688 1,512
-----------------------
Total liquids production 2,533 2,564 2,593
=======================
Natural gas (mmcf/d) (net of royalties)
UK 1,196 1,156 1,242
Rest of Europe 94 107 121
USA 2,485 2,359 2,648
Rest of World 4,938 4,836 4,734
-----------------------
Total natural gas production 8,713 8,458 8,745
=======================
Average realizations (c)
Crude oil ($/bbl)
UK 60.57 54.70 45.54
USA 58.27 57.40 43.20
Rest of World 56.18 49.93 41.49
BP Average 58.25 53.92 43.37
=======================
Natural gas liquids ($/bbl)
UK 48.19 43.68 29.82
USA 33.25 37.78 26.98
Rest of World 37.05 42.10 31.24
BP Average 35.47 39.29 28.14
=======================
Liquids ($/bbl) (b)
UK 60.00 54.02 44.68
USA 53.79 53.98 40.56
Rest of World 55.02 49.51 40.83
BP Average 55.88 52.44 41.74
=======================
Natural gas ($/mcf)
UK 7.87 6.96 5.58
USA 6.91 9.48 5.31
Rest of World 3.94 4.08 3.10
BP Average 5.54 6.24 4.26
=======================
(a) Includes BP's share of production of equity-accounted entities.
(b) Crude oil and natural gas liquids.
(c) Based on sales of consolidated subsidiaries only - this excludes
equity-accounted entities.
Notes
1. Resegmentation
With effect from 1 January 2006 the following changes to the business
segment boundaries have been implemented:
(a) Following the sale of Innovene to INEOS in December 2005, the
transfer of three equity-accounted entities (Shanghai SECCO
Petrochemical Company Limited in China and Polyethylene Malaysia
Sdn Bhd (PEMSB) and Ethylene Malaysia Sdn Bhd (EMSB), both in
Malaysia), previously reported in Other businesses and corporate,
to Refining and Marketing.
(b) The formation of BP Alternative Energy in November 2005 has
resulted in the transfer of certain mid-stream assets and
activities to Gas, Power and Renewables:
- South Houston Green Power (SHGP) co-generation facility (in
Texas City refinery) from Refining and Marketing.
- Watson Cogeneration (in Carson City refinery) from Refining and
Marketing.
- Phu My Phase 3 CCGT plant in Vietnam from Exploration and
Production.
(c) The transfer of Hydrogen for Transport activities from Gas, Power
and Renewables to Refining and Marketing.
Comparative financial data is shown after resegmentation.
Restated Reported
-----------------------------------
Fourth First Fourth First
Quarter Quarter Quarter Quarter
2005 2005 2005 2005
-----------------------------------
$ million
Sales and other operating
revenues
Exploration and Production 14,769 10,186 14,769 10,186
Refining and Marketing 53,969 47,722 53,979 47,762
Gas, Power and Renewables 7,997 7,145 7,987 7,105
Other businesses and corporate 161 172 161 172
-----------------------------------
76,896 65,225 76,896 65,225
===================================
Profit before interest and tax
Exploration and Production 6,574 6,489 6,575 6,491
Refining and Marketing (1,073) 2,353 (1,068) 2,363
Gas, Power and Renewables 126 426 114 418
Other businesses and corporate (409) (171) (403) (175)
-----------------------------------
Profit before interest and tax 5,218 9,097 5,218 9,097
===================================
Notes
2. Sale of Olefins and Derivatives business
The sale of Innovene, BP's olefins, derivatives and refining group, to
INEOS, was completed on 16 December, 2005.
The Innovene operations represented a separate major line of business
for BP. As a result of the sale, these operations were treated as
discontinued operations for the year ended 31 December 2005. A single
amount was shown on the face of the income statement comprising the
post-tax result of discontinued operations and the post-tax loss
recognized on the remeasurement to fair value less costs to sell of the
discontinued operation. That is, the income and expenses of Innovene
were reported separately from the continuing operations of the BP
group. The table below provides further detail of the amount shown on
the income statement.
In the cash flow statement the cash provided by the operating
activities of Innovene in 2005 has been separated from that of the rest
of the group and reported as a single line item.
First quarter 2006 includes a loss of $96 million related mainly to
post-closing working capital adjustments. We anticipate further
adjustments during the second quarter 2006.
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
Profit before tax from Innovene operations - 335 532
Net profit on transactions between continuing
and Innovene operations - (128) (96)
-----------------------
Profit before interest and taxation - 207 436
Other finance income (expense) - 1 1
(Loss)/gain recognized on the re-measurement
to fair value (96) 133 -
-----------------------
(96) 341 437
Taxation
Related to profit before tax - (86) (133)
Related to re-measurement to fair value (7) 187 -
-----------------------
Profit (loss) from Innovene operations (103) 442 304
=======================
Notes
3. Sales and other operating revenues
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
By business
Exploration and Production 13,918 14,769 10,186
Refining and Marketing 56,605 53,969 47,722
Gas, Power and Renewables 8,279 7,997 7,145
Other businesses and corporate 206 161 172
-----------------------
Sales by continuing operations 79,008 76,896 65,225
Less: sales between businesses 11,926 10,595 8,369
sales to Innovene operations - 1,593 2,113
-----------------------
Third party sales of continuing operations 67,082 64,708 54,743
-----------------------
Innovene sales - 3,509 5,343
Less: sales to continuing operations - 1,445 1,534
-----------------------
Third party sales of Innovene operations - 2,064 3,809
-----------------------
Total third party sales 67,082 66,772 58,552
=======================
By geographical area
UK 27,865 18,204 19,821
Rest of Europe 18,374 14,661 15,824
USA 25,728 23,185 23,395
Rest of World 18,375 20,693 12,725
-----------------------
Sales by continuing operations 90,342 76,743 71,765
Less: sales between areas 23,260 10,442 14,909
sales to Innovene operations - 1,593 2,113
-----------------------
67,082 64,708 54,743
=======================
4. Profit before interest and taxation is after charging:
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
Exploration expense
UK 7 11 5
Rest of Europe - - 1
USA 66 117 103
Rest of World 116 80 51
-----------------------
189 208 160
=======================
Production and similar taxes (a)
UK 235 133 114
Overseas 697 697 535
-----------------------
932 830 649
=======================
(a) Production taxes are charged against Exploration and Production's
profit before interest and taxation.
Notes
5. Finance costs
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
Interest payable 293 278 191
Capitalized (102) (106) (76)
-----------------------
191 172 115
Early redemption of finance leases - - 57
-----------------------
191 172 172
=======================
6. Other finance (income) expense
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
Interest on pension and other post-retirement
benefit plan liabilities 471 497 514
Expected return on pension and other
post-retirement benefit plan assets (582) (521) (547)
-----------------------
Interest net of expected return on plan assets (111) (24) (33)
Unwinding of discount on provisions 54 57 45
Unwinding of discount on deferred consideration
for acquisition of investment in TNK-BP 9 9 17
-----------------------
(48) 42 29
Innovene operations - 1 1
-----------------------
Continuing operations (48) 43 30
=======================
7. Dividends paid
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
Dividends per ordinary share
cents 9.375 8.925 8.50
pence 5.288 5.061 4.522
Dividends per ADS (cents) 56.25 53.55 51.0
=======================
Notes
8. Analysis of changes in net debt
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
Opening balance
Finance debt 19,162 22,159 23,091
Less: Cash and cash equivalents 2,960 2,182 1,359
-----------------------
Opening net debt 16,202 19,977 21,732
-----------------------
Closing balance
Finance debt 18,679 19,162 19,564
Less: Cash and cash equivalents 2,939 2,960 1,521
-----------------------
Closing net debt 15,740 16,202 18,043
-----------------------
Decrease (increase) in net debt 462 3,775 3,689
=======================
Movement in cash and cash equivalents
(excluding exchange adjustments) (35) 783 171
Net cash outflow (inflow) from financing
(excluding share capital) 379 2,936 3,547
Adoption of IAS 39 - - (147)
Fair value hedge adjustment 82 48 98
Other movements 32 11 49
-----------------------
Movement in net debt before exchange effects 458 3,778 3,718
Exchange adjustments 4 (3) (29)
-----------------------
Decrease (increase) in net debt 462 3,775 3,689
=======================
Notes
9. TNK-BP Operational and Financial Information
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
Production (Net of royalties) (BP share)
Crude oil (mb/d) 896 936 875
Natural gas (mmcf/d) 567 530 527
Total hydrocarbons (mboe/d)(a) 994 1,027 966
=======================
$ million
Income statement (BP share)
Profit before interest and tax 852 1,029 615
Interest expense * (43) (30) (29)
Taxation (350) (234) (167)
Minority interest (41) (31) (8)
-----------------------
Net Income(b) 418 734 411
=======================
* Excludes unwinding of discount on deferred
consideration 9 9 17
=======================
Cash Flow
Dividends received 771 525 250
Dividends receivable - 771 -
=======================
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
Average oil marker prices ($/bbl)
Urals (NWE - cif) 58.15 53.23 42.54
Urals (Med - cif) 58.26 54.07 43.21
Domestic Oil 35.27 31.73 19.14
=======================
Balance sheet 31 March 31 December
2006 2005
=======================
Investments in jointly controlled entities 8,506 8,089
=======================
Deferred consideration
Due within one year 1,236 1,227
Due after more than one year - -
-----------------------
1,236 1,227
=======================
(a) Natural gas is converted to oil equivalent at 5.8 billion cubic
feet = 1 million barrels.
(b) Fourth quarter 2005 includes a net gain of $270 million on the
disposal of non-core producing assets in the Saratov region, along
with the Orsk refinery.
As reported in previous quarters, various TNK-BP companies have received tax
notifications. Upon entering into the joint venture arrangement, each party
received indemnities from its co-venturers in respect of historical tax
liabilities related to assets contributed to the joint venture. BP believes its
provisions are adequate for its share of any liabilities arising from tax claims
not covered by these indemnities.
Notes
10. Equity-accounted entities
The group's profit for the period includes the following in respect of
equity-accounted entities.
RC profit Profit
(loss) Inventory (loss)
before holding before
interest gains interest
and tax (losses) and tax
---------------------------------------
$ million
First Quarter 2006
Exploration and Production 1,149 - 1,149
Refining and Marketing 95 6 101
Gas, Power and Renewables 29 - 29
Other businesses and corporate (2) - (2)
---------------------------------------
Continuing operations 1,271 6 1,277
Innovene operations - - -
---------------------------------------
1,271 6 1,277
=======================================
Fourth Quarter 2005
Exploration and Production 1,291 - 1,291
Refining and Marketing 88 8 96
Gas, Power and Renewables 27 - 27
Other businesses and corporate - - -
---------------------------------------
Continuing operations 1,406 8 1,414
Innovene operations (17) - (17)
---------------------------------------
1,389 8 1,397
=======================================
First Quarter 2005
Exploration and Production 839 - 839
Refining and Marketing 75 (4) 71
Gas, Power and Renewables 7 - 7
Other businesses and corporate - - -
---------------------------------------
Continuing operations 921 (4) 917
Innovene operations - - -
---------------------------------------
921 (4) 917
=======================================
Notes
10. Equity-accounted entities (continued)
Profit
(loss)
Minority for the
Interest Tax interest period
----------------------------------------
$ million
First Quarter 2006
Exploration and Production (72) (439) (41) 597
Refining and Marketing (19) (10) - 72
Gas, Power and Renewables (4) (4) - 21
Other businesses and corporate - - - (2)
---------------------------------------
Continuing operations (95) (453) (41) 688
Innovene operations - - - -
---------------------------------------
(95) (453) (41) 688
=======================================
Fourth Quarter 2005
Exploration and Production (56) (313) (30) 892
Refining and Marketing (18) (27) - 51
Gas, Power and Renewables (1) (1) - 25
Other businesses and corporate - - - -
---------------------------------------
Continuing operations (75) (341) (30) 968
Innovene operations - - - (17)
---------------------------------------
(75) (341) (30) 951
=======================================
Fourth Quarter 2005
Exploration and Production (52) (227) (8) 552
Refining and Marketing (8) (18) - 45
Gas, Power and Renewables (2) (2) - 3
Other businesses and corporate - - - -
---------------------------------------
Continuing operations (62) (247) (8) 600
Innovene operations - - - -
---------------------------------------
(62) (247) (8) 600
=======================================
Notes
11. Second quarter results
BP's second quarter results will be announced on 25 July 2006.
12. Statutory accounts
The financial information shown in this publication is unaudited and
does not constitute statutory accounts. The 2005 Annual Report and
Accounts have been delivered to the UK Registrar of Companies; the
report of the auditors on those accounts (in accordance with section
235 of the Companies Act 2005) was unqualified.
Contacts
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+44 (0)20 7496 4624 +1 281 366 5174
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+44 (0)20 7496 4717 +1 212 451 8072
http://www.bp.com/investors
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