1Q07 Part 2 of 2

BP PLC 24 April 2007 Summarized Group Income Statement ------------------------------- First Fourth First Quarter Quarter Quarter 2007 2006 2006 =============================== $ million Sales and other operating revenues (Note 4) 61,307 61,946 63,288 Earnings from jointly controlled entities - after interest and tax 333 284 573 Earnings from associates - after interest and tax 163 125 115 Interest and other revenues 233 177 198 ------------------------------- Total revenues 62,036 62,532 64,174 Gains on sale of businesses and fixed assets 680 300 597 ------------------------------- Total revenues and other income 62,716 62,832 64,771 Purchases 42,660 44,506 43,819 Production and manufacturing expenses 5,752 6,425 5,217 Production and similar taxes (Note 5) 747 632 932 Depreciation, depletion and amortization 2,519 2,441 2,184 Impairment and losses on sale of businesses and fixed assets 223 60 23 Exploration expense 156 408 189 Distribution and administration expenses 3,457 4,205 3,096 Fair value (gain) loss on embedded derivatives (155) (296) 442 ------------------------------- Profit before interest and taxation from continuing operations 7,357 4,451 8,869 Finance costs (Note 6) 264 205 191 Other finance income (Note 7) (93) (56) (48) ------------------------------- Profit before taxation from continuing operations 7,186 4,302 8,726 Taxation 2,440 1,347 2,929 ------------------------------- Profit from continuing operations 4,746 2,955 5,797 Profit (loss) from Innovene operations (Note 3) - - (103) ------------------------------- Profit for the period 4,746 2,955 5,694 ------------------------------- Attributable to: BP shareholders 4,664 2,880 5,623 Minority interest 82 75 71 ------------------------------- 4,746 2,955 5,694 =============================== Earnings per share - cents Profit for the period attributable to BP shareholders Basic 24.06 15.04 27.40 Diluted 23.94 14.88 27.13 Profit from continuing operations attributable to BP shareholders Basic 24.06 15.04 27.90 Diluted 23.94 14.88 27.63 Summarized Group Balance Sheet ---------------------------- 31 March 31 December 2007 2006 =========================== $ million Non-current assets Property, plant and equipment 92,307 90,999 Goodwill 10,991 10,780 Intangible assets 5,667 5,246 Investments in jointly controlled entities 15,159 15,074 Investments in associates 6,064 5,975 Other investments 1,595 1,697 --------------------------- Fixed assets 131,783 129,771 Loans 769 817 Other receivables 931 862 Derivative financial instruments 2,486 3,025 Prepayments and accrued income 1,025 1,034 Defined benefit pension plan surplus 6,950 6,753 --------------------------- 143,944 142,262 --------------------------- Current assets Loans 175 141 Inventories 19,812 18,915 Trade and other receivables 38,819 38,692 Derivative financial instruments 7,550 10,373 Prepayments and accrued income 3,392 3,006 Current tax receivable 95 544 Cash and cash equivalents 1,956 2,590 --------------------------- 71,799 74,261 Assets classified as held for sale 1,113 1,078 --------------------------- 72,912 75,339 --------------------------- Total assets 216,856 217,601 =========================== Current liabilities Trade and other payables 43,681 42,236 Derivative financial instruments 7,508 9,424 Accruals and deferred income 5,467 6,147 Finance debt 11,597 12,924 Current tax payable 3,322 2,635 Provisions 1,934 1,932 --------------------------- 73,509 75,298 Liabilities directly associated with the assets classified as held for - 54 sale --------------------------- 73,509 75,352 --------------------------- Non-current liabilities Other payables 1,319 1,430 Derivative financial instruments 3,626 4,203 Accruals and deferred income 949 961 Finance debt 12,131 11,086 Deferred tax liabilities 18,593 18,116 Provisions 11,655 11,712 Defined benefit pension plan and other post-retirement benefit plan deficits 9,325 9,276 --------------------------- 57,598 56,784 --------------------------- Total liabilities 131,107 132,136 --------------------------- Net assets 85,749 85,465 =========================== Equity BP shareholders' equity 84,874 84,624 Minority interest 875 841 --------------------------- 85,749 85,465 =========================== Group Statement of Recognized Income and Expense ------------------------------------------ First Fourth First Quarter Quarter Quarter 2007 2006 2006 =============================== $ million Currency translation differences 174 1,032 153 Exchange gain on translation of foreign operations transferred to gain on sale of businesses and fixed assets (19) - - Actuarial gain relating to pensions and other post-retirement - 2,615 - benefits Available-for-sale investments marked to market (109) 264 197 Available-for-sale investments - recycled to the income statement - (269) (346) Cash flow hedges marked to market 28 141 57 Cash flow hedges - recycled to the income statement (60) (143) 57 Cash flow hedges - recycled to the balance sheet (7) (11) - Taxation (77) (814) 61 ------------------------------- Net income (expense) recognized directly in equity (70) 2,815 179 Profit for the period 4,746 2,955 5,694 ------------------------------- Total recognized income and expense for the period 4,676 5,770 5,873 =============================== Attributable to: BP shareholders 4,578 5,646 5,802 Minority interest 98 124 71 ------------------------------- 4,676 5,770 5,873 =============================== Movement in BP Shareholders' Equity ------------------------------- $ million Movement in BP shareholders' equity At 31 December 2006 84,624 Profit for the period 4,664 Distribution to shareholders (2,001) Currency translation differences (net of tax) 142 Exchange gain on translation of foreign operations transferred to gain on sale (net of tax) (19) Share-based payments (net of tax) 104 Repurchase of ordinary share capital (2,499) Available-for-sale investments (net of tax) (121) Cash flow hedges (net of tax) (20) ------------- At 31 March 2007 84,874 ============= Summarized Group Cash Flow Statement --------------------------------- First Fourth First Quarter Quarter Quarter 2007 2006 2006 =============================== $ million Operating activities Profit before taxation from continuing operations 7,186 4,302 8,726 Adjustments to reconcile profits before tax to net cash provided by operating activities Exploration expenditure written off 55 265 114 Depreciation, depletion and amortization 2,519 2,441 2,184 Impairment and (gain) loss on sale of businesses and fixed assets (457) (240) (574) Earnings from jointly controlled entities and associates (496) (409) (688) Dividends received from jointly controlled entities and associates 229 809 1,011 Working capital and other movements (1,058) (2,198) (1,850) ------------------------------- Net cash provided by operating activities(a) 7,978 4,970 8,923 ------------------------------- Investing activities Capital expenditure (3,645) (4,473) (3,295) Acquisitions, net of cash acquired (1,087) (127) - Investment in jointly controlled entities (9) (11) - Investment in associates (44) (103) (157) Proceeds from disposal of fixed assets 310 918 484 Proceeds from disposal of businesses, net of cash disposed 608 (100) 166 Proceeds from loan repayments 45 26 72 ------------------------------- Net cash used in investing activities (3,822) (3,870) (2,730) ------------------------------- Financing activities Net repurchase of shares (2,402) (3,449) (3,861) Proceeds from long-term financing 1,358 2,215 396 Repayments of long-term financing (1,134) (1,874) (65) Net increase (decrease) in short-term debt (558) 3,348 (710) Dividends paid - BP shareholders (2,001) (1,927) (1,922) - Minority interest (64) (72) (66) ------------------------------- Net cash used in financing activities (4,801) (1,759) (6,228) ------------------------------- Currency translation differences relating to cash and cash equivalents 11 50 14 ------------------------------- Increase (decrease) in cash and cash equivalents (634) (609) (21) Cash and cash equivalents at beginning of period 2,590 3,199 2,960 ------------------------------- Cash and cash equivalents at end of period 1,956 2,590 2,939 =============================== (a) Operating cash flow is calculated from the starting point of profit before taxation which includes inventory holding gains and losses. Operating cash flow also reflects working capital movements including inventories, trade and other receivables and trade and other payables. The carrying value of these working capital items will change for various reasons, including movements in oil, gas and products prices. Summarized Group Cash Flow Statement --------------------------------- First Fourth First Quarter Quarter Quarter 2007 2006 2006 =============================== $ million Working capital and other movements Interest receivable (95) (80) (130) Interest received 85 89 146 Finance costs 264 205 191 Interest paid (333) (314) (310) Other finance income (93) (56) (48) Share-based payments 75 77 83 Net operating charge for pensions and other post-retirement benefits, less contributions (87) (128) (50) Net charge for provisions, less payments (157) 446 (207) (Increase) decrease in inventories (648) 861 1,008 (Increase) decrease in other current and non-current assets 3,139 2,869 335 Increase (decrease) in other current and non-current liabilities (2,000) (2,476) (107) Income taxes paid (1,208) (3,691) (2,761) ------------------------------- (1,058) (2,198) (1,850) =============================== Capital Expenditure and Acquisitions ------------------------------ First Fourth First Quarter Quarter Quarter 2007 2006 2006 =============================== $ million By business Exploration and Production UK 221 309 182 Rest of Europe 87 49 69 US 1,050 1,234 1,021 Rest of World 1,638 1,905 1,428 ------------------------------- 2,996 3,497 2,700 ------------------------------- Refining and Marketing UK 73 217 61 Rest of Europe(a) 1,210 395 65 US 269 540 258 Rest of World 80 334 107 ------------------------------- 1,632 1,486 491 ------------------------------- Gas, Power and Renewables UK 7 43 1 Rest of Europe(a) 7 18 5 US 36 268 20 Rest of World 13 35 14 ------------------------------- 63 364 40 ------------------------------- Other businesses and corporate UK 35 66 19 Rest of Europe 2 - - US 32 21 8 Rest of World - 3 - ------------------------------- 69 90 27 ------------------------------- 4,760 5,437 3,258 =============================== By geographical area UK 336 635 263 Rest of Europe 1,306 462 139 US 1,387 2,063 1,307 Rest of World 1,731 2,277 1,549 ------------------------------- 4,760 5,437 3,258 =============================== Included above: Acquisitions and asset exchanges(a) 1,113 205 10 =============================== (a) First quarter 2007 includes $1,108 million for the acquisition of Chevron's Netherlands manufacturing company. Exchange rates US dollar/sterling average rate for the period 1.95 1.91 1.75 US dollar/sterling period-end rate 1.96 1.96 1.75 US dollar/euro average rate for the period 1.31 1.29 1.20 US dollar/euro period-end rate 1.33 1.31 1.21 ------------------------------- Analysis of Profit Before Interest and Tax --------------------------------- First Fourth First Quarter Quarter Quarter 2007 2006 2006 =============================== $ million By business Exploration and Production UK 1,062 1,534 1,165 Rest of Europe 720 249 303 US 1,663 948 2,304 Rest of World 2,609 2,326 3,044 ------------------------------- 6,054 5,057 6,816 ------------------------------- Refining and Marketing UK (64) 28 (155) Rest of Europe 481 261 686 US 289 (951) 828 Rest of World 423 (44) 679 ------------------------------- 1,129 (706) 2,038 ------------------------------- Gas, Power and Renewables UK 48 147 (72) Rest of Europe 7 144 7 US 24 116 168 Rest of World 127 61 135 ------------------------------- 206 468 238 ------------------------------- Other businesses and corporate UK (46) 280 (141) Rest of Europe 21 (98) (1) US (113) (307) (104) Rest of World 23 (140) 31 ------------------------------- (115) (265) (215) ------------------------------- 7,274 4,554 8,877 Consolidation adjustment 83 (103) (8) ------------------------------- Total for continuing operations 7,357 4,451 8,869 ------------------------------- Innovene operations UK - (40) (55) Rest of Europe - 25 (21) US - 15 7 Rest of World - - (27) ------------------------------- Total for Innovene operations - - (96) ------------------------------- Total for period 7,357 4,451 8,773 =============================== By geographical area UK 998 1,988 772 Rest of Europe 1,245 533 995 US 1,932 (289) 3,245 Rest of World 3,182 2,219 3,857 ------------------------------- Total for continuing operations 7,357 4,451 8,869 =============================== Analysis of Replacement Cost Profit Before Interest and Tax ----------------------------- First Fourth First Quarter Quarter Quarter 2007 2006 2006 =============================== $ million By business Exploration and Production UK 1,062 1,534 1,165 Rest of Europe 720 249 303 US 1,652 952 2,311 Rest of World 2,609 2,328 3,044 ------------------------------- 6,043 5,063 6,823 ------------------------------- Refining and Marketing UK (10) 190 (148) Rest of Europe 298 336 564 US 122 (421) 637 Rest of World 428 207 559 ------------------------------- 838 312 1,612 ------------------------------- Gas, Power and Renewables UK 48 147 (72) Rest of Europe 7 143 1 US 26 114 178 Rest of World 125 66 194 ------------------------------- 206 470 301 ------------------------------- Other businesses and corporate UK (46) 280 (141) Rest of Europe 21 (97) (3) US (114) (319) (104) Rest of World 23 (140) 31 ------------------------------- (116) (276) (217) ------------------------------- 6,971 5,569 8,519 Consolidation adjustment 83 (103) (8) ------------------------------- Total for continuing operations 7,054 5,466 8,511 ------------------------------- Innovene operations UK - (40) (55) Rest of Europe - 25 (21) US - 15 7 Rest of World - - (27) ------------------------------- Total for Innovene operations - - (96) ------------------------------- Total for period 7,054 5,466 8,415 =============================== By geographical area UK 1,052 2,150 779 Rest of Europe 1,061 609 865 US 1,756 230 3,071 Rest of World 3,185 2,477 3,796 ------------------------------- Total for continuing operations 7,054 5,466 8,511 =============================== Analysis of Non-operating Items -------------------------- First Fourth First Quarter Quarter Quarter 2007 2006 2006 ================================ $ million By business Exploration and Production Impairment and gain (loss) on sale of businesses and fixed assets 603 16 9 Environmental and other provisions - - - Restructuring, integration and rationalization costs - - - Fair value gain (loss) on embedded derivatives 145 240 (395) Other - (433) - -------------------------------- 748 (177) (386) -------------------------------- Refining and Marketing Impairment and gain (loss) on sale of businesses and fixed assets (179) 51 564 Environmental and other provisions - - - Restructuring, integration and rationalization costs - - - Fair value gain (loss) on embedded derivatives - - - Other (50) (104) - -------------------------------- (229) (53) 564 -------------------------------- Gas, Power and Renewables Impairment and gain (loss) on sale of businesses and fixed assets 2 159 - Environmental and other provisions - - - Restructuring, integration and rationalization costs - - - Fair value gain (loss) on embedded derivatives 7 56 (55) Other - - - -------------------------------- 9 215 (55) -------------------------------- Other businesses and corporate Impairment and gain (loss) on sale of businesses and fixed assets 31 14 1 Environmental and other provisions - (2) - Restructuring, integration and rationalization costs - - - Fair value gain (loss) on embedded derivatives 3 - 8 Other - (200) - -------------------------------- 34 (188) 9 -------------------------------- Total before taxation for continuing operations 562 (203) 132 Taxation credit (charge) (199) 51 (46) -------------------------------- Total after taxation for continuing operations 363 (152) 86 -------------------------------- Innovene operations Total before taxation for Innovene operations(a) - - (96) Taxation credit (charge) - - (7) -------------------------------- Total after taxation for Innovene operations - - (103) -------------------------------- Total after taxation for period 363 (152) (17) ================================ (a) Loss on remeasurement to fair value in the first quarter of 2006. Realizations and Marker Prices ------------------------- First Fourth First Quarter Quarter Quarter 2007 2006 2006 =============================== Average realizations(a) Liquids ($/bbl)(b) UK 55.42 56.18 60.00 US 51.62 52.11 53.79 Rest of World 54.09 54.63 55.02 BP Average 53.43 54.13 55.88 =============================== Natural gas ($/mcf) UK 7.28 5.61 7.87 US 5.76 5.03 6.91 Rest of World 3.90 3.70 3.94 BP Average 4.86 4.38 5.54 =============================== Average oil marker prices ($/bbl) Brent 57.76 59.60 61.79 West Texas Intermediate 58.05 59.90 63.29 Alaska North Slope US West Coast 55.78 55.47 60.89 Urals (NWE- cif) 54.36 56.06 58.15 Urals (Med- cif) 54.26 56.48 58.26 Russian domestic oil 27.33 26.33 35.27 =============================== Average natural gas marker prices Henry Hub gas price ($/mmbtu)(c) 6.77 6.56 9.01 UK Gas - National Balancing Point (p/therm) 22.33 29.92 70.00 =============================== (a) Based on sales of consolidated subsidiaries only - this excludes equity- accounted entities. (b) Crude oil and natural gas liquids. (c) Henry Hub First of the Month Index. Notes ------ 1. Basis of preparation BP prepares its Annual Report and Accounts on the basis of International Financial Reporting Standards (IFRS) as adopted for use by the European Union. The financial information presented herein has been prepared in accordance with the accounting policies expected to be used in preparing the Annual Report and Accounts 2007, which do not differ significantly from those used for the Annual Report and Accounts 2006. 2. Changes to comparatives In 2005 the basis of accounting for over-the-counter forward sale and purchase contracts for oil, natural gas, NGLs and power was changed. Certain transactions are now reported on a net basis in sales and other operating revenues, whereas previously they had been reported gross in sales and purchases. This change, while reducing sales and other operating revenues and purchases, had no impact on reported profit, profit per ordinary share, cash flow or the balance sheet. During 2006, as part of a continuous process to review how individual contracts are accounted for, certain other minor adjustments were identified that should have been reflected in the restatement from gross to net presentation. Though these adjustments are not significant to the group income statement, the amendment has been made to bring the comparatives onto a consistent basis. The comparative figures have been amended to reflect these items as set out below. Amended Reported ---------------------------- First First Quarter Quarter 2006 2006 ---------------------------- $ million Sales and other operating revenues Exploration and Production 13,918 13,918 Refining and Marketing 54,537 56,605 Gas, Power and Renewables 6,553 8,279 Other businesses and corporate 206 206 ---------------------------- 75,214 79,008 Less: sales between businesses 11,926 11,926 ---------------------------- Total third party sales 63,288 67,082 ============================ Purchases 43,819 47,613 ============================ 3. 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. First quarter 2006 included a loss of $103 million related to post-closing adjustments. First Fourth First Quarter Quarter Quarter 2007 2006 2006 =============================== $ million Loss recognized on the remeasurement to fair value - - (96) Taxation - - (7) ------------------------------- Profit (loss) from Innovene operations - - (103) =============================== Earnings (loss) per share from Innovene operations - cents Basic - - (0.50) Diluted - - (0.50) =============================== Notes ----- 4. Sales and other operating revenues First Fourth First Quarter Quarter Quarter 2007 2006 2006 =============================== $ million By business Exploration and Production 12,219 12,255 13,918 Refining and Marketing 53,119 53,776 54,537 Gas, Power and Renewables 5,613 5,224 6,553 Other businesses and corporate 206 339 206 ------------------------------- 71,157 71,594 75,214 Less: sales between businesses 9,850 9,648 11,926 ------------------------------- Total third party sales 61,307 61,946 63,288 =============================== By geographical area UK 24,055 23,676 27,733 Rest of Europe 16,588 18,576 18,374 US 23,034 23,368 22,066 Rest of World 16,844 16,768 18,375 ------------------------------- 80,521 82,388 86,548 Less: sales between areas 19,214 20,442 23,260 ------------------------------- Total third party sales 61,307 61,946 63,288 =============================== 5. Profit before interest and taxation is after charging: First Fourth First Quarter Quarter Quarter 2007 2006 2006 =============================== $ million Production and similar taxes UK 67 (143) 235 Overseas 680 775 697 ------------------------------- 747 632 932 =============================== 6. Finance costs First Fourth First Quarter Quarter Quarter 2007 2006 2006 =============================== $ million Interest payable 347 290 293 Capitalized (83) (85) (102) ------------------------------- 264 205 191 =============================== Notes ----- 7. Other finance income First Fourth First Quarter Quarter Quarter 2007 2006 2006 =============================== $ million Interest on pension and other post-retirement benefit plan liabilities 538 496 471 Expected return on pension and other post-retirement benefit plan assets (698) (619) (582) ------------------------------- Interest net of expected return on plan assets (160) (123) (111) Unwinding of discount on provisions 67 67 54 Unwinding of discount on deferred consideration for acquisition of investment in TNK-BP - - 9 ------------------------------- (93) (56) (48) =============================== 8. Analysis of changes in net debt First Fourth First Quarter Quarter Quarter 2007 2006 2006 =============================== $ million Opening balance Finance debt 24,010 19,973 19,162 Less: Cash and cash equivalents 2,590 3,199 2,960 ------------------------------- Opening net debt 21,420 16,774 16,202 ------------------------------- Closing balance Finance debt 23,728 24,010 18,679 Less: Cash and cash equivalents 1,956 2,590 2,939 ------------------------------- Closing net debt 21,772 21,420 15,740 ------------------------------- Decrease (increase) in net debt (352) (4,646) 462 =============================== Movement in cash and cash equivalents (excluding exchange adjustments) (645) (659) (35) Net cash outflow (inflow) from financing (excluding share capital) 334 (3,689) 379 Fair value hedge adjustment (30) (208) 82 Debt acquired - (13) - Other movements (11) (57) 32 ------------------------------- Movement in net debt before exchange effects (352) (4,626) 458 Exchange adjustments - (20) 4 ------------------------------- Decrease (increase) in net debt (352) (4,646) 462 =============================== Notes ----- 9. TNK-BP Operational and Financial Information First Fourth First Quarter Quarter Quarter 2007 2006 2006 =============================== Production (Net of royalties) (BP share) Crude oil (mb/d) 832 837 896 Natural gas (mmcf/d) 566 602 567 Total hydrocarbons (mboe/d)(a) 930 941 994 =============================== $ million Income statement (BP share) Profit before interest and tax 356 359 852 Interest expense ... (61) (52) (43) Taxation (103) (118) (350) Minority interest (30) (6) (41) ------------------------------- Net Income 162 183 418 =============================== ... Excludes unwinding of discount on deferred consideration - - 9 =============================== Cash Flow Dividends received(b) - 500 771 =============================== Balance Sheet 31 March 31 December 2007 2006 ========================== Investments in jointly controlled entities 8,381 8,353 ========================== (a) Natural gas is converted to oil equivalent at 5.8 billion cubic feet = 1 million barrels. (b) First quarter 2006 includes $771 million declared in fourth quarter 2005. 10. Second quarter results BP's second quarter results will be announced on 24 July 2007. 11. Statutory accounts The financial information shown in this publication is unaudited and does not constitute statutory financial statements. The 2006 BP Annual Report and Accounts have been filed with the Registrar of Companies; the report of the auditors on those accounts was unqualified and did not contain a statement under section 237(2) or section 237(3) of the Companies Act 1985. Contacts ------- London United States Press Office Roddy Kennedy Ronnie Chappell +44 (0)20 7496 4624 +1 281 366 5174 Investor Relations Fergus MacLeod Rachael MacLean +44 (0)20 7496 4717 +1 212 451 8072 http://www.bp.com/investors This information is provided by RNS The company news service from the London Stock Exchange CBKDOQB

Companies

BP (BP.)
Investor Meets Company
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today