1st Quarter Results (3 of 3)

BP PLC 29 April 2003 BP p.l.c. Group Results First Quarter 2003 London 29 April 2003 INVESTOR RELATIONS SUPPLEMENT REPLACEMENT COST OPERATING PROFIT ADJUSTED FOR SPECIAL ITEMS(a) AND ACQUISITION AMORTIZATION(b) First Fourth First Quarter Quarter Quarter 2003 2002 2002 ======================= $ million Exploration and Production UK 1,220 1,011 809 Rest of Europe 193 177 152 USA 2,145 1,421 665 Rest of World 1,330 1,057 774 ----------------------- 4,888 3,666 2,400 ----------------------- Gas, Power and Renewables UK 3 (31) 2 Rest of Europe (9) 1 47 USA 36 9 (25) Rest of World 164 93 87 ----------------------- 194 72 111 ----------------------- Refining and Marketing UK 136 (21) (27) Rest of Europe 355 225 165 USA 192 235 17 Rest of World 171 148 132 ----------------------- 854 587 287 ----------------------- Chemicals UK (34) (26) (31) Rest of Europe 88 74 49 USA 42 42 53 Rest of World 43 49 37 ----------------------- 139 139 108 ----------------------- Other businesses and corporate UK (76) 81 (44) Rest of Europe (7) (18) 1 USA (98) (210) (83) Rest of World 16 1 1 ----------------------- (165) (146) (125) ----------------------- 5,910 4,318 2,781 ======================= (a) The special items refer to non-recurring charges and credits. The special items for the first quarter are restructuring and impairment charges in Exploration and Production, Veba integration costs in Refining and Marketing and tax restructuring benefits. (b) Acquisition amortization is depreciation and amortization relating to the fixed asset revaluation adjustments and goodwill consequent upon the ARCO and Burmah Castrol acquisitions. PER SHARE AMOUNTS First Fourth First Quarter Quarter Quarter 2003 2002 2002 =============================== Shares in issue at period end (thousand) 22,241,895 22,378,651 22,456,493 - ADS equivalent (thousand) 3,706,983 3,729,775 3,742,749 Average number of shares outstanding (thousand)* 22,326,486 22,351,122 22,402,868 - ADS equivalent (thousand) 3,721,081 3,725,187 3,733,811 ---------------------------------- Replacement cost profit after exceptional items ($m) 3,468 825 854 cents/ordinary share 15.53 3.69 3.81 dollars/ADS 0.93 0.22 0.23 ---------------------------------- Replacement cost profit before exceptional items ($m) 3,128 1,697 924 cents/ordinary share 14.01 7.58 4.12 dollars/ADS 0.84 0.45 0.25 ---------------------------------- Pro forma result adjusted for special items ($m) 3,729 2,635 1,582 cents/ordinary share 16.70 11.78 7.06 dollars/ADS 1.00 0.71 0.42 ---------------------------------- * Excludes shares held by the Employee Share Ownership Plans. ACQUISITION AMORTIZATION BY BUSINESS First Fourth First Quarter Quarter Quarter 2003 2002 2002 ======================= $ million Exploration and Production UK 33 41 32 USA 259 246 281 Rest of World 131 32 32 ----------------------- 423 319 345 ----------------------- Refining and Marketing UK 110 107 97 USA 95 96 96 ----------------------- 205 203 193 ----------------------- Total acquisition amortization 628 522 538 ======================= SPECIAL ITEMS BY BUSINESS (PRE-TAX) First Fourth First Quarter Quarter Quarter 2003 2002 2002 ======================= $ million Exploration and Production UK 53 5 50 Rest of Europe - - - USA 81 94 62 Rest of World 5 - 15 ----------------------- 139 99 127 ----------------------- Gas, Power and Renewables UK - - - Rest of Europe - - - USA - - - Rest of World - - - ----------------------- - - - ----------------------- Refining and Marketing UK - 27 - Rest of Europe 18 278 26 USA - 59 - Rest of World - 56 - ----------------------- 18 420 26 ----------------------- Chemicals UK - 21 - Rest of Europe - 9 2 USA - 5 30 Rest of World - - - ----------------------- - 35 32 ----------------------- Other businesses and corporate UK - 20 - Rest of Europe - 1 - USA - 40 - Rest of World - - - ----------------------- - 61 - ----------------------- Total special items before interest 157 615 185 Interest - bond redemption charges - 15 - ----------------------- Total 157 630 185 ======================= RECONCILIATION OF HISTORICAL COST PROFIT (LOSS) TO PRO FORMA RESULT ADJUSTED FOR SPECIAL ITEMS pro forma result adjusted for Reported Acquisition Special special $ million Earnings Amortization Items(a) items ============================================== 4Q 2002 Exploration and Production 3,248 319 99 3,666 Gas, Power and Renewables 72 - - 72 Refining and Marketing (36) 203 420 587 Chemicals 104 - 35 139 Other businesses & corporate (207) - 61 (146) ---------------------------------------------- RC operating profit 3,181 522 615 4,318 ---------------------------------------------- Interest expense (332) - 15 (317) Taxation (1,146) - (214) (1,360) MSI (6) - - (6) ---------------------------------------------- RC profit before exceptional items 1,697 522 416 2,635 ============================================== Exceptional items before tax (893) Taxation on exceptional items 21 ----- RC profit after exceptional items 825 Stock holding gains (losses) (174) ----- HC profit 651 ===== 1Q 2002 Exploration and Production 1,928 345 127 2,400 Gas, Power and Renewables 111 - - 111 Refining and Marketing 68 193 26 287 Chemicals 76 - 32 108 Other businesses & corporate (125) - - (125) ---------------------------------------------- RC operating profit 2,058 538 185 2,781 ---------------------------------------------- Interest expense (333) - - (333) Taxation (792) - (65) (857) MSI (9) - - (9) ---------------------------------------------- RC profit before exceptional items 924 538 120 1,582 ============================================== Exceptional items before tax (109) Taxation on exceptional items 39 ----- RC profit after exceptional items 854 Stock holding gains (losses) 442 ----- HC profit 1,296 ===== (a) The special items refer to non-recurring charges and credits. The special items for the fourth quarter 2002 include an asset write-down in Exploration and Production, integration and restructuring costs and an impairment charge in Refining and Marketing, integration and restructuring costs in Chemicals, provisions to cover future rental payments on surplus leasehold property and environmental charges in Other businesses and corporate, and a bond redemption charge. The special items for the first quarter 2002 comprise restructuring charges for Upstream and Chemicals, Veba, Solvay and Erdolchemie integration costs and litigation costs. REPLACEMENT COST OPERATING PROFIT ADJUSTED FOR NON-CASH CHARGES AND CERTAIN OTHER ITEMS First Fourth First Quarter Quarter Quarter 2003 2002 2002 ======================= $ million Replacement cost operating profit (reported) (a) 5,125 3,181 2,058 Depreciation and amounts provided (b) 2,709 2,515 2,153 Exploration expenditure written off 50 124 59 Dividends from JVs and associates less share of RCOP (229) (110) (122) Dividends paid to minority shareholders (2) (11) (13) Adjust provisions to cash basis (c) (26) 27 (69) Adjust interest and other income to cash basis (d) (11) (14) (13) ------------------------ 7,616 5,712 4,053 Tax paid adjusted for certain items* (650) (1,199) (592) ------------------------ Adjusted RCOP after tax paid 6,966 4,513 3,461 ------------------------ * Calculation of tax paid adjusted for certain items Cash tax paid (632) (1,061) (445) Tax charge on exceptional items 54 (21) (39) Tax shield assumption + (72) (117) (108) ------------------------ (650) (1,199) (592) ------------------------ + Calculation of tax shield assumption Interest paid (207) (335) (309) Tax rate assumption (e) 35% 35% 35% ------------------------ (72) (117) (108) ------------------------ (a) Total replacement cost operating profit is before exceptional items, stock holding gains and losses and interest expense. (b) Includes depreciation and amortization relating to the fixed asset revaluation adjustment and goodwill consequent upon the ARCO and Burmah Castrol acquisitions. (c) Calculated as the net of charge for provisions and utilization of provisions. (d) Calculated as interest and other income, less interest received and dividends received from the group cash flow statement. (e) Deemed tax rate for tax shield adjustment is equal to the US statutory tax rate. RETURN ON AVERAGE CAPITAL EMPLOYED First Fourth First Quarter Quarter Quarter 2003 2002 2002 ======================= $ million Replacement cost basis RC profit before exceptional items 3,128 1,697 924 Interest + 99 140 164 Minority shareholders' interest 26 6 9 ----------------------- Adjusted RC profit 3,253 1,843 1,097 ======================= Average Capital Employed 91,610 91,767 89,594 ROACE - replacement cost basis 14.2% 8.0% 4.9% ----------------------- Pro forma basis Adjusted RC profit 3,253 1,843 1,097 Acquisition amortization 628 522 538 Special items (post tax) (27) 406 120 Average capital employed 91,610 91,767 89,594 Average capital employed acquisition adjustment 15,940 16,903 18,590 ----------------------- Average capital employed (pro forma basis) 75,670 74,864 71,004 ROACE - Pro forma basis adjusted for special items 20.4% 14.8% 9.9% ----------------------- Historical cost basis Historical cost profit after exceptional items 4,267 651 1,296 Interest + 99 140 164 Minority shareholders' interest 26 6 40 ----------------------- Adjusted historical cost profit 4,392 797 1,500 ======================= Average capital employed 91,610 91,767 89,594 ROACE - historical cost basis after exceptionals 19.2% 3.5% 6.7% + Excludes interest on joint venture and associated undertakings debt as well as unwinding of discount on provisions and effect of change in discount rate on provisions, and is on a post-tax basis, using a deemed tax rate equal to the US statutory tax rate. NET DEBT RATIO - NET DEBT: NET DEBT + EQUITY First Fourth First Quarter Quarter Quarter 2003 2002 2002 ======================= $ million Gross debt 19,042 22,008 24,531 Cash and current asset investments 1,379 1,735 1,665 ----------------------- Net debt 17,663 20,273 22,866 ======================= Equity 72,123 70,047 67,481 Net debt ratio 20% 22% 25% ----------------------- Acquisition adjustment 15,208 16,672 18,297 ----------------------- Net debt ratio - pro forma basis 24% 28% 32% This information is provided by RNS The company news service from the London Stock Exchange

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