1Q09 part 2 of 2

RNS Number : 2514R

BP PLC

28 April 2009

 



Top of page 9

Group income statement

				First		Fourth		First
				quarter		quarter		quarter
				2009		2008		2008
$ million
Sales and other operating revenues (Note 2)				47,296		61,477		87,745
Earnings from jointly controlled entities - after interest and tax				220		(876)		975
Earnings from associates - after interest and tax				285		167		225
Interest and other income				203		170		278
Gains on sale of businesses and fixed assets				81		156		925
Total revenues and other income				48,085		61,094		90,148
Purchases				30,777		49,860		62,389
Production and manufacturing expenses				6,107		7,427		6,799
Production and similar taxes (Note 3)				461		732		1,609
Depreciation, depletion and amortization				2,823		2,700		2,782
Impairment and losses on sale of businesses and fixed assets				137		1,616		40
Exploration expense				119		239		293
Distribution and administration expenses				3,349		3,745		3,896
Fair value (gain) loss on embedded derivatives				(186)		(1,562)		690
Profit (loss) before interest and taxation				4,498		(3,663)		11,650
Finance costs				318		369		406
Net finance expense (income) relating to pensions and
other post-retirement benefits				50		(118)		(160)
Profit (loss) before taxation				4,130		(3,914)		11,404
Taxation				1,533		(712)		4,192
Profit (loss) for the period				2,597		(3,202)		7,212
Attributable to
BP shareholders				2,562		(3,344)		7,094
Minority interest				35		142		118
				2,597		(3,202)		7,212
Earnings per share - cents (Note 4)
Profit (loss) for the period attributable to BP shareholders
Basic				13.69		(17.62)		37.58
Diluted				13.54		(17.62)		37.25

Top of page 10

Group statement of comprehensive income

				First		Fourth		First
				quarter		quarter		quarter
				2009		2008		2008
$ million
Profit (loss) for the period				2,597		(3,202)		7,212
Currency translation differences				(1,011)		(2,270)		778
Actuarial loss relating to pensions and other post-retirement benefits				-		(8,430)		-
Available-for-sale investments marked to market				74		(422)		(191)
Available-for-sale investments - recycled to the income statement				2		546		(5)
Cash flow hedges marked to market				(211)		(702)		74
Cash flow hedges - recycled to the income statement				239		30		(2)
Cash flow hedges - recycled to the balance sheet				71		23		(23)
Taxation				(82)		2,561		97
Other comprehensive income				(918)		(8,664)		728
Total comprehensive income				1,679		(11,866)		7,940
Attributable to
BP shareholders				1,668		(11,944)		7,818
Minority interest				11		78		122
				1,679		(11,866)		7,940

Group statement of changes in equity

				BP
				shareholders'		Minority		Total
				equity		interest		equity
$ million
At 31 December 2008				91,303		806		92,109
Total comprehensive income				1,668		11		1,679
Dividends				(2,619)		(111)		(2,730)
Share-based payments (net of tax)				121		-		121
At 31 March 2009				90,473		706		91,179

				BP
				shareholders'		Minority		Total
				equity		interest		equity
$ million
At 31 December 2007				93,690		962		94,652
Total comprehensive income				7,818		122		7,940
Dividends				(2,554)		(36)		(2,590)
Repurchase of ordinary share capital				(795)		-		(795)
Share-based payments (net of tax)				(42)		-		(42)
At 31 March 2008				98,117		1,048		99,165

Top of page 11

Group balance sheet

				31 March		31 December
				2009		2008
$ million
Non-current assets
Property, plant and equipment				103,316		103,200
Goodwill				9,770		9,878
Intangible assets				10,526		10,260
Investments in jointly controlled entities				14,846		23,826
Investments in associates				13,033		4,000
Other investments				915		855
Fixed assets				152,406		152,019
Loans				1,004		995
Other receivables				746		710
Derivative financial instruments				5,004		5,054
Prepayments				1,282		1,338
Defined benefit pension plan surpluses				1,704		1,738
				162,146		161,854
Current assets
Loans				169		168
Inventories				15,292		16,821
Trade and other receivables				26,234		29,261
Derivative financial instruments				7,753		8,510
Prepayments				2,966		3,050
Current tax receivable				283		377
Cash and cash equivalents				8,360		8,197
				61,057		66,384
Total assets				223,203		228,238
Current liabilities
Trade and other payables				31,031		33,644
Derivative financial instruments				7,983		8,977
Accruals				5,313		6,743
Finance debt				15,260		15,740
Current tax payable				2,957		3,144
Provisions				1,350		1,545
				63,894		69,793
Non-current liabilities
Other payables				3,080		3,080
Derivative financial instruments				6,054		6,271
Accruals				800		784
Finance debt				19,438		17,464
Deferred tax liabilities				16,177		16,198
Provisions				12,417		12,108
Defined benefit pension plan and other post-retirement benefit plan deficits				10,164		10,431
				68,130		66,336
Total liabilities				132,024		136,129
Net assets				91,179		92,109
Equity
BP shareholders' equity				90,473		91,303
Minority interest				706		806
				91,179		92,109

Top of page 12

Condensed group cash flow statement

				First		Fourth		First
				quarter		quarter		quarter
				2009		2008		2008
$ million
Operating activities
Profit (loss) before taxation				4,130		(3,914)		11,404
Adjustments to reconcile profit before taxation to net cash
provided by operating activities
Depreciation, depletion and amortization and
exploration expenditure written off				2,849		2,759		2,966
Impairment and (gain) loss on sale of businesses and fixed assets				56		1,460		(885)
Earnings from equity-accounted entities, less dividends received				(252)		1,779		187
Net charge for interest and other finance expense, less net
interest paid				89		(81)		(118)
Share-based payments				86		93		65
Net operating charge for pensions and other post-retirement benefits,
less contributions and benefit payments for unfunded plans				26		(322)		117
Net charge for provisions, less payments				281		(185)		(165)
Movements in inventories and other current and non-current
assets and liabilities(a)				32		6,945		(717)
Income taxes paid				(1,725)		(2,915)		(1,960)
Net cash provided by operating activities				5,572		5,619		10,894
Investing activities
Capital expenditure				(4,817)		(5,762)		(4,435)
Acquisitions, net of cash acquired				-		(186)		-
Investment in jointly controlled entities				(103)		(202)		(366)
Investment in associates				(47)		(60)		(4)
Proceeds from disposal of fixed assets				311		218		276
Proceeds from disposal of businesses, net of cash disposed				-		11		-
Proceeds from loan repayments				117		163		122
Other				47		-		-
Net cash (used in) provided by investing activities				(4,492)		(5,818)		(4,407)
Financing activities
Net issue (repurchase) of shares				35		64		(889)
Proceeds from long-term financing				4,619		4,732		2,177
Repayments of long-term financing				(2,580)		(1,565)		(537)
Net increase (decrease) in short-term debt				(182)		1,973		(3,424)
Dividends paid - BP shareholders				(2,619)		(2,619)		(2,554)
- Minority interest				(111)		(193)		(36)
Net cash (used in) provided by financing activities				(838)		2,392		(5,263)
Currency translation differences relating to cash and
cash equivalents				(79)		(138)		34
Increase (decrease) in cash and cash equivalents				163		2,055		1,258
Cash and cash equivalents at beginning of period				8,197		6,142		3,562
Cash and cash equivalents at end of period				8,360		8,197		4,820

(a)	Includes
	Inventory holding (gains) losses		(254)	8,788	(1,326)
	Fair value (gain) loss on embedded derivatives		(186)	(1,562)	690
	Inventory holding gains and losses and fair value gains and losses on embedded derivatives are also included within profit (loss) before taxation

Top of page 13

Capital expenditure and acquisitions

				First		Fourth		First
				quarter		quarter		quarter
				2009		2008		2008
$ million
By business
Exploration and Production
US				1,670		2,091		1,215
Non-US(a)				2,035		2,755		4,787
				3,705		4,846		6,002
Refining and Marketing
US(a)				567		774		2,297
Non-US				226		832		371
				793		1,606		2,668
Other businesses and corporate
US				56		432		267
Non-US				41		111		108
				97		543		375
				4,595		6,995		9,045
By geographical area
US(a)				2,293		3,297		3,779
Non-US(a)				2,302		3,698		5,266
				4,595		6,995		9,045
Included above:
Acquisitions and asset exchanges(a)				-		226		1,964

(a)	First quarter 2008 includes capital expenditure of $2,848 million in Exploration and Production and an asset exchange of $1,793 million in Refining and Marketing relating to the formation of an integrated North American oil sands business.

Exchange rates

				First		Fourth		First
				quarter		quarter		quarter
				2009		2008		2008
US dollar/sterling average rate for the period				1.43		1.57		1.98
US dollar/sterling period-end rate				1.42		1.44		1.99
US dollar/euro average rate for the period				1.30		1.31		1.50
US dollar/euro period-end rate				1.32		1.41		1.58

Top of page 14

Analysis of replacement cost profit before interest and tax and reconciliation to profit before taxation(a)

				First		Fourth		First
				quarter		quarter		quarter
				2009		2008		2008
$ million
By business
Exploration and Production
US				1,143		1,299		3,085
Non-US				3,177		3,457		6,987
				4,320		4,756		10,072
Refining and Marketing
US				308		(735)		154
Non-US				782		1,151		1,095
				1,090		416		1,249
Other businesses and corporate
US				(279)		(277)		(152)
Non-US				(482)		(403)		(61)
				(761)		(680)		(213)
				4,649		4,492		11,108
Consolidation adjustment				(405)		633		(784)
Replacement cost profit before interest and tax(b)				4,244		5,125		10,324
Inventory holding gains (losses)(c)				254		(8,788)		1,326
Profit (loss) before interest and tax				4,498		(3,663)		11,650
Finance costs				318		369		406
Net finance expense (income) relating to pensions
and other post-retirement benefits				50		(118)		(160)
Profit (loss) before taxation				4,130		(3,914)		11,404
Replacement cost profit before interest and tax
By geographical area
US				854		371		2,621
Non-US				3,390		4,754		7,703
				4,244		5,125		10,324

(a)	IFRS requires that the measure of profit or loss disclosed for each operating segment is the measure that is provided regularly to the chief operating decision maker for the purposes of performance assessment and resource allocation. For BP, this measure of profit or loss is replacement cost profit before interest and tax. In addition, a reconciliation is required between the total of the operating segments' measures of profit or loss and the group profit or loss before taxation.
(b)	Replacement cost profit reflects the replacement cost of supplies. The replacement cost profit for the period is arrived at by excluding from profit inventory holding gains and losses and their associated tax effect. Replacement cost profit for the group is not a recognized GAAP measure.
(c)	Inventory holding gains and losses represent the difference between the cost of sales calculated using the average cost to BP of supplies incurred during the period and the cost of sales calculated on the first-in first-out (FIFO) method including any changes in provisions where the net realizable value of the inventory is lower than its cost. Under the FIFO method, which we use for IFRS reporting, the cost of inventory charged to the income statement is based on the historic cost of acquisition or manufacture rather than the current replacement cost. In volatile energy markets, this can have a significant distorting effect on reported income. The amounts disclosed represent the difference between the charge to the income statement on a FIFO basis (and any related movements in net realizable value provisions) and the charge that would arise using average cost of supplies incurred during the period. For this purpose, average cost of supplies incurred during the period is calculated by dividing the total cost of inventory purchased in the period by the number of barrels acquired. The amounts disclosed are not separately reflected in the financial statements as a gain or loss. No adjustment is made in respect of the cost of inventories held as part of a trading position and certain other temporary inventory positions. Management believes this information is useful to illustrate to investors the fact that crude oil and product prices can vary significantly from period to period and that the impact on our reported result under IFRS can be significant. Inventory holding gains and losses vary from period to period due principally to changes in oil prices as well as changes to underlying inventory levels. In order for investors to understand the operating performance of the group excluding the impact of oil price changes on the replacement of inventories, and to make comparisons of operating performance between reporting periods, BP's management believes it is helpful to disclose this information.

Top of page 15

Non-operating items(a) 

				First		Fourth		First
				quarter		quarter		quarter
				2009		2008		2008
$ million
Exploration and Production
Impairment and gain (loss) on sale of businesses and fixed assets				73		(1,180)		21
Environmental and other provisions				-		-		-
Restructuring, integration and rationalization costs				(1)		(7)		(44)
Fair value gain (loss) on embedded derivatives				243		1,505		(684)
Other				(4)		(74)		331
				311		244		(376)
Refining and Marketing
Impairment and gain (loss) on sale of businesses and fixed assets				(21)		(114)		814
Environmental and other provisions				-		(2)		-
Restructuring, integration and rationalization costs				(263)		(104)		(205)
Fair value gain (loss) on embedded derivatives				(57)		57		-
Other				(9)		-		-
				(350)		(163)		609
Other businesses and corporate
Impairment and gain (loss) on sale of businesses and fixed assets				(108)		(166)		50
Environmental and other provisions				(75)		(41)		-
Restructuring, integration and rationalization costs				(71)		(91)		(58)
Fair value gain (loss) on embedded derivatives				-		-		(6)
Other				(67)		(3)		(67)
				(321)		(301)		(81)
Total before taxation				(360)		(220)		152
Taxation credit (charge)(b)				135		97		(56)
Total after taxation for period				(225)		(123)		96

(a)	An analysis of non-operating items by region is shown on pages 5, 7 and 8.
(b)	Tax is calculated using the quarter's effective tax rate on replacement cost profit.

Non-operating items are charges and credits arising in consolidated entities that BP discloses separately because it considers such disclosures to be meaningful and relevant to investors. These disclosures are provided in order to enable investors better to understand and evaluate the group's financial performance.

Top of page 16

Non-GAAP information on fair value accounting effects

$ million				First		Fourth		First
				quarter		quarter		quarter
				2009		2008		2008
Favourable (unfavourable) impact relative to
management's measure of performance
Exploration and Production				158		253		(259)
Refining and Marketing				(109)		(65)		101
				49		188		(158)
Taxation credit (charge)(a)				(18)		(83)		58
				31		105		(100)

(a)	Tax is calculated using the quarter's effective tax rate on replacement cost profit.

BP uses derivative instruments to manage the economic exposure relating to inventories above normal operating requirements of crude oil, natural gas and petroleum products as well as certain contracts to supply physical volumes at future dates. Under IFRS, these inventories and contracts are recorded at historic cost and on an accruals basis respectively. The related derivative instruments, however, are required to be recorded at fair value with gains and losses recognized in income because hedge accounting is either not permitted or not followed, principally due to the impracticality of effectiveness testing requirements. Therefore, measurement differences in relation to recognition of gains and losses occur. Gains and losses on these inventories and contracts are not recognized until the commodity is sold in a subsequent accounting period. Gains and losses on the related derivative commodity contracts are recognized in the income statement from the time the derivative commodity contract is entered into on a fair value basis using forward prices consistent with the contract maturity.

IFRS requires that inventory held for trading be recorded at its fair value using period end spot prices whereas any related derivative commodity instruments are required to be recorded at values based on forward prices consistent with the contract maturity. Depending on market conditions, these forward prices can be either higher or lower than spot prices resulting in measurement differences.

BP enters into contracts for pipelines and storage capacity that, under IFRS, are recorded on an accruals basis. These contracts are risk-managed using a variety of derivative instruments which are fair valued under IFRS. This results in measurement differences in relation to recognition of gains and losses.

The way that BP manages the economic exposures described above, and measures performance internally, differs from the way these activities are measured under IFRS. BP calculates this difference for consolidated entities by comparing the IFRS result with management's internal measure of performance, under which the inventory and the supply and capacity contracts in question are valued based on fair value using relevant forward prices prevailing at the end of the period. We believe that disclosing management's estimate of this difference provides useful information for investors because it enables investors to see the economic effect of these activities as a whole. The impacts of fair value accounting effects, relative to management's internal measure of performance, are shown in the table above.

Top of page 17

Realizations and marker prices

				First		Fourth		First
				quarter		quarter		quarter
				2009		2008		2008
Average realizations(a)
Liquids ($/bbl)(b)
US				39.47		59.95		87.57
Europe				47.59		36.52		95.65
Rest of World				40.89		49.70		92.04
BP Average				41.26		52.09		90.92
Natural gas ($/mcf)
US				3.38		3.89		6.73
Europe				5.56		8.91		7.99
Rest of World				3.41		4.94		4.97
BP Average				3.63		5.08		5.88
Average oil marker prices ($/bbl)
Brent				44.46		55.48		96.71
West Texas Intermediate				43.20		59.13		97.86
Alaska North Slope				45.40		56.70		96.53
Mars				43.83		53.84		90.89
Urals (NWE- cif)				43.65		54.58		93.35
Russian domestic oil				19.54		20.01		46.86
Average natural gas marker prices
Henry Hub gas price ($/mmbtu)(c)				4.91		6.95		8.03
UK Gas - National Balancing Point (p/therm)				46.80		57.16		52.94

(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 Month Index.

Cautionary statement: The foregoing discussion contains forward-looking statements particularly those regarding capital expenditure, production, phasing of production, environment for marketing and petrochemicals, refining margins, refinery availability and refinery maintenance. By their nature, forward-looking statements involve risk and uncertainty and actual results may differ from those expressed in such statements depending on a variety of factors including the following: the timing of bringing new fields onstream; industry product supply; demand and pricing; operational problems; general economic conditions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations; exchange rate fluctuations; development and use of new technology; the success or otherwise of partnering; the actions of competitors; natural disasters and adverse weather conditions; changes in public expectations and other changes to business conditions; wars and acts of terrorism or sabotage; and other factors discussed in this Announcement. For more information you should refer to our Annual Report and Accounts 2008 and our 2008 Annual Report on Form 20-F filed with the US Securities and Exchange Commission.

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Notes

1. Basis of preparation

The interim financial information included in this report has been prepared in accordance with IAS 34 'Interim Financial Reporting'.

The results for the interim periods are unaudited and in the opinion of management include all adjustments necessary for a fair presentation of the results for the periods presented. All such adjustments are of a normal recurring nature. This report should be read in conjunction with the consolidated financial statements and related notes for the year ended 31 December 2008 included in BP's Annual Report and Accounts 2008.

BP prepares its consolidated financial statements included within its Annual Report and Accounts on the basis of International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), IFRS as adopted by the European Union (EU) and in accordance with the provisions of the Companies Act 1985. IFRS as adopted by the EU differs in certain respects from IFRS as issued by the IASB, however, the differences have no impact on the group's consolidated financial statements for the periods presented. 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 2009, which do not differ significantly from those used in the Annual Report and Accounts 2008.

BP has adopted a new accounting standard, IFRS 8 'Operating Segments', with effect from 1 January 2009. The standard defines operating segments as components of an entity about which separate financial information is available and is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. It also sets out the required disclosures for operating segments. On adoption, there was no change to BP's segments that are separately reported but the segmental financial information is now based on measures as used by the chief operating decision maker. In particular, the segment measure of profit is replacement cost profit before interest and tax - see page 14 for further information. There was no effect on the group's reported income or net assets.

In addition, BP has adopted amendments to IAS 1 'Presentation of Financial Statements', also with effect from 1 January 2009. This requires separate presentation of owner and non-owner changes in equity by introducing the statement of comprehensive income - see page 10. The statement of recognized income and expense is no longer presented. Certain minor changes in the presentation of the statement of changes in equity were also made to comply with the revised standard - see page 10. There was no effect on the group's reported profit for the period or net assets.

Top of page 19

Notes

2. Sales and other operating revenues

		First	Fourth	First
		quarter	quarter	quarter
		2009	2008	2008
$ million
By business
Exploration and Production		12,343	15,294	22,922
Refining and Marketing		40,573	53,145	76,612
Other businesses and corporate		584	979	1,108
		53,500	69,418	100,642
Less: sales between businesses
Exploration and Production		5,800	7,184	12,219
Refining and Marketing		111	286	269
Other businesses and corporate		293	471	409
		6,204	7,941	12,897
Third party sales and other operating revenues
Exploration and Production		6,543	8,110	10,703
Refining and Marketing		40,462	52,859	76,343
Other businesses and corporate		291	508	699
Total third party sales and other operating revenues		47,296	61,477	87,745
By geographical area
US		17,580	21,772	31,693
Non-US		33,586	44,654	64,519
		51,166	66,426	96,212
Less: sales between areas		3,870	4,949	8,467
		47,296	61,477	87,745

3. Production and similar taxes

		First	Fourth	First
		quarter	quarter	quarter
		2009	2008	2008
$ million
US		79	227	544
Non-US		382	505	1,065
		461	732	1,609

Top of page 20

Notes

4. Earnings per share, shares in issue and shares repurchased

Basic earnings per ordinary share (EpS) amounts are calculated by dividing the profit for the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. The calculation of EpS is performed separately for each discrete quarterly period, and for the year-to-date period. As a result, the sum of the discrete quarterly EpS amounts in any particular year-to-date period may not be equal to the EpS amount for the year-to-date period.

Prior to 2009, EpS amounts for the discrete quarterly periods were determined as the difference between the relevant year-to-date period amounts. The change in method of determination of the discrete quarterly EpS amounts does not have a significant effect and the comparative EpS amounts for 2008 have not been restated.

The weighted average number of shares outstanding excludes treasury shares and the shares held by the Employee Share Ownership Plans. 

For the diluted EpS calculation the weighted average number of shares outstanding during the period is adjusted for number of shares that are potentially issuable in connection with employee share-based payment plans using the treasury stock method.

		First	Fourth	First
		quarter	quarter	quarter
		2009	2008	2008
$ million
Results for the period
Profit (loss) for the period attributable to BP shareholders		2,562	(3,344)	7,094
Less: preference dividend		-	1	-
Profit (loss) attributable to BP ordinary shareholders		2,562	(3,345)	7,094
Inventory holding (gains) losses, net of tax		(175)	5,931	(863)
RC profit attributable to BP ordinary shareholders		2,387	2,586	6,231
Basic weighted average number of shares outstanding
(thousand)(a)		18,720,354	18,713,465	18,875,611
ADS equivalent (thousand)(a)		3,120,059	3,118,911	3,145,935
Weighted average number of shares outstanding used to
calculate diluted earnings per share (thousand)(a)		18,920,515	18,881,698	19,045,320
ADS equivalent (thousand)(a)		3,153,419	3,146,950	3,174,220
Shares in issue at period-end (thousand)(a)		18,724,785	18,716,098	18,877,537
ADS equivalent (thousand)(a)		3,120,798	3,119,350	3,146,256
Shares repurchased in the period (thousand)		-	-	90,966

(a)	Excludes treasury shares and the shares held by the Employee Share Ownership Plans and includes certain shares that will be issuable in the future under employee share plans.

Top of page 21

Notes

5. Analysis of changes in net debt

		First	Fourth	First
		quarter	quarter	quarter
		2009	2008	2008
$ million
Opening balance
Finance debt		33,204	28,300	31,045
Less:  Cash and cash equivalents		8,197	6,142	3,562
Less:  FV asset (liability) of hedges related to finance debt		(34)	149	666
Opening net debt		25,041	22,009	26,817
Closing balance
Finance debt		34,698	33,204	29,871
Less:  Cash and cash equivalents		8,360	8,197	4,820
Less:  FV asset (liability) of hedges related to finance debt		(323)	(34)	1,234
Closing net debt		26,661	25,041	23,817
Decrease (increase) in net debt		(1,620)	(3,032)	3,000
Movement in cash and cash equivalents
(excluding exchange adjustments)		242	2,193	1,224
Net cash outflow (inflow) from financing
(excluding share capital)		(1,857)	(5,140)	1,784
Other movements		7	(7)	(7)
Movement in net debt before exchange effects		(1,608)	(2,954)	3,001
Exchange adjustments		(12)	(78)	(1)
Decrease (increase) in net debt		(1,620)	(3,032)	3,000

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Notes

6. TNK-BP operational and financial information

		First	Fourth	First
		quarter	quarter	quarter
		2009	2008	2008
Production (Net of royalties) (BP share)
Crude oil (mb/d)		822	827	818
Natural gas (mmcf/d)		642	621	512
Total hydrocarbons (mboe/d)(a)		933	934	906
$ million
Income statement (BP share)
Profit (loss) before interest and tax(b)		419	(992)	1,209
Finance costs		(68)	(72)	(76)
Taxation		(185)	342	(331)
Minority interest		(32)	40	(58)
Net income		134	(682)	744
Cash flow
Dividends received		-	640	1,200

Balance sheet		31 March	31 December
		2009	2008
Investments in jointly controlled entities		-	8,939
Investments in associates		9,026	-

(a)	Natural gas is converted to oil equivalent at 5.8 billion cubic feet = 1 million barrels.
(b)	The loss in the fourth quarter reflected the impact of the calculation lag on Russian export duties in the falling price environment and several asset impairments.

Our investment in TNK-BP has been reclassified from a jointly controlled entity to an associate with effect from 9 January 2009, the date that BP finalized a revised shareholder agreement with its Russian partners in TNK-BP, Alfa Access-Renova (AAR). The formerly evenly balanced main board structure has been replaced by one with four representatives each from BP and AAR, plus three independent directors. The change in accounting classification from a jointly controlled entity to an associate reflects the ability of the independent directors of TNK-BP to decide on certain matters in the event of disagreement between the shareholder representatives on the board. The group's investment continues to be accounted for using the equity method.

7. Inventory valuation

Due to falling oil prices a provision of $1,412 million was held at 31 December 2008 to write inventories down to their net realizable value. The net movement in the provision during the first quarter of 2009 was a decrease of $1,163 million (fourth quarter of 2008 was an increase of $168 million).

8. Second-quarter results

BP's second-quarter results will be announced on 28 July 2009.

9. Statutory accounts

The financial information shown in this publication, which was approved by the Board of Directors on 27 April 2009, is unaudited and does not constitute statutory financial statements. The 2008 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. 

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Contacts

				London				United States
Press Office				Roddy Kennedy				Ronnie Chappell
				[phone]				[phone]
Investor Relations				Fergus MacLeod				Rachael MacLean
				[phone]				[phone]

http://www.bp.com/investors

 

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