1st Quarter Results Part 2

BP PLC 30 April 2002 PART 2 BP p.l.c. and Subsidiaries Summarized Group Results First Fourth First Quarter Quarter Quarter 2002 2001 2001 ======================= $ million Exploration and Production 1,928 1,641 4,666 Gas, Power and Renewables 111 102 100 Refining and Marketing 68 379 740 Chemicals 76 (67) 81 Other businesses and corporate (125) (175) (115) ----------------------- Total replacement cost operating profit 2,058 1,880 5,472 Profit (loss) on sale of fixed assets and businesses or termination of operations (Note 4) (109) (38) 218 ----------------------- Replacement cost profit before interest and tax 1,949 1,842 5,690 Stock holding gains (losses)(Note 6) 473 (1,297) (238) ----------------------- Historical cost profit before interest and tax 2,422 545 5,452 Interest expense (Note 7) 333 414 446 ----------------------- Profit before taxation 2,089 131 5,006 Taxation (Note 8) 753 711 2,168 ----------------------- Profit (loss) after taxation 1,336 (580) 2,838 Minority shareholders' interest 40 23 8 ----------------------- Profit (loss) for the period 1,296 (603) 2,830 ======================= Distribution to shareholders 1,290 1,289 1,178 ----------------------- Earnings per ordinary share - cents Basic 5.78 (2.67) 12.59 Diluted 5.75 (2.64) 12.51 ======================= Replacement Cost Results Historical cost profit (loss) for the period 1,296 (603) 2,830 Stock holding (gains) losses net of minority shareholders' interest (442) 1,297 238 ----------------------- Replacement cost profit for the period 854 694 3,068 Exceptional items, net of tax 70 12 (67) ----------------------- Replacement cost profit before exceptional items 924 706 3,001 ----------------------- Earnings per ordinary share - cents On replacement cost profit before exceptional items 4.12 3.16 13.35 ======================= Summarized Group Balance Sheet 31 March 31 December 2002 2001 ===================== $ million Fixed assets Intangible assets 16,089 16,489 Tangible assets 81,944 77,410 Investments 12,000 11,963 --------------------- 110,033 105,862 --------------------- Current assets Business held for resale 2,090 - Stocks 8,698 7,631 Debtors 28,784 26,669 Investments 286 450 Cash at bank and in hand 1,379 1,358 --------------------- 41,237 36,108 Creditors - amounts falling due within one year Finance debt 11,063 9,090 Other creditors 31,648 28,524 --------------------- Net current liabilities (1,474) (1,506) --------------------- Total assets less current liabilities 108,559 104,356 Creditors - amounts falling due after more than one year Finance debt 13,468 12,327 Other creditors 3,137 3,086 Provisions for liabilities and charges Deferred taxation 12,021 11,702 Other provisions 12,452 11,482 --------------------- Net assets 67,481 65,759 Minority shareholders' interest 2,579 598 --------------------- BP shareholders' interest 64,902 65,161 ===================== Movement in BP shareholders' interest: $ million At 31 December 2001 74,367 Prior year adjustment - change in accounting policy (See Note 1) (9,206) ------ As restated 65,161 Profit for the period 1,296 Distribution to shareholders (1,290) Currency translation differences (356) Employee share schemes 91 ------ At 31 March 2002 64,902 ====== Summarized Group Cash Flow Statement First Fourth First Quarter Quarter Quarter 2002 2001 2001 ======================= $ million Net cash inflow from operating activities (a) 3,636 5,547 6,740 ----------------------- Dividends from joint ventures 83 12 12 ----------------------- Dividends from associated undertakings 53 104 110 ----------------------- Servicing of finance and returns on investments Interest received 48 83 91 Interest paid (309) (229) (361) Dividends received 2 35 8 Dividends paid to minority shareholders (13) (38) - ----------------------- Net cash outflow from servicing of finance and returns on investments (272) (149) (262) ----------------------- Taxation UK corporation tax (187) (454) (204) Overseas tax (258) (968) 65 ----------------------- Tax paid (445) (1,422) (139) ----------------------- Capital expenditure and financial investment Payments for fixed assets (2,799) (3,688) (2,577) Proceeds from the sale of fixed assets 317 615 694 ----------------------- Net cash outflow for capital expenditure and financial investment (2,482) (3,073) (1,883) ----------------------- Acquisitions and disposals Investments in associated undertakings (143) (179) (120) Acquisitions, net of cash acquired (1,550) (602) - Net investment in joint ventures (46) (220) (61) Proceeds from the sale of businesses 31 231 - ----------------------- Net cash outflow for acquisitions and disposals (1,708) (770) (181) ----------------------- Equity dividends paid (1,288) (1,232) (1,181) ----------------------- Net cash (outflow) inflow (2,423) (983) 3,216 ======================= Financing (b) (2,283) (855) 2,866 Management of liquid resources (165) (65) 302 Increase (decrease) in cash 25 (63) 48 ----------------------- (2,423) (983) 3,216 ======================= Analysis of Cash Flow First Fourth First Quarter Quarter Quarter 2002 2001 2001 ======================= $ million (a) Reconciliation of historical cost profit before interest and tax to net cash inflow from operating activities Historical cost profit before interest and tax 2,422 545 5,452 Depreciation and amounts provided 2,153 2,457 2,167 Exploration expenditure written off 59 85 108 Share of profits of joint ventures and associated undertakings (256) (303) (331) Interest and other income (63) (132) (103) (Profit) loss on sale of fixed assets and businesses 109 36 (218) Charge for provisions 169 187 165 Utilization of provisions (238) (221) (306) (Increase) decrease in stocks (496) 1,368 358 (Increase) decrease in debtors (410) 1,241 (1,069) Increase in creditors 187 284 517 ----------------------- Net cash inflow from operating activities 3,636 5,547 6,740 ======================= (b) Financing Long-term borrowing (1,746) (267) (517) Repayments of long-term borrowing 234 434 146 Short-term borrowing (3,499) (2,764) (161) Repayments of short-term borrowing 2,819 1,656 2,955 ----------------------- (2,192) (941) 2,423 Issue of ordinary share capital (91) (13) (56) Repurchase of ordinary share capital - 99 499 ----------------------- Net cash (inflow) outflow from financing (2,283) (855) 2,866 ======================= Capital Expenditure and Acquisitions First Fourth First Quarter Quarter Quarter 2002 2001 2001 ======================= $ million By business Exploration and Production UK 261 312 168 Rest of Europe 71 99 65 USA 1,167 862 927 Rest of World 814 880 706 ----------------------- 2,313 2,153 1,866 ----------------------- Gas, Power and Renewables UK 16 51 8 Rest of Europe 4 107 11 USA 16 83 17 Rest of World 10 60 - ----------------------- 46 301 36 ----------------------- Refining and Marketing UK 76 127 111 Rest of Europe(a) 2,732 209 47 USA 303 623 180 Rest of World 26 157 32 ----------------------- 3,137 1,116 370 ----------------------- Chemicals UK 8 26 66 Rest of Europe(b) 45 294 16 USA 42 167 78 Rest of World 93 107 56 ----------------------- 188 594 216 ----------------------- Other businesses and corporate 52 264 49 ----------------------- 5,736 4,428 2,537 ======================= By geographical area UK 409 745 394 Rest of Europe 2,852 709 139 USA 1,531 1,758 1,210 Rest of World 944 1,216 794 ----------------------- 5,736 4,428 2,537 ======================= (a) 1Q 2002 included the acquisition of 51% of Veba. (b) 4Q 2001 included the formation of the joint venture with Solvay. US dollar/Sterling exchange rates Average rate for the period 1.43 1.44 1.46 Period-end rate 1.42 1.45 1.44 ======================= Analysis of Replacement Cost Operating Profit First Fourth First Quarter Quarter Quarter 2002 2001 2001 ======================= $ million By business Exploration and Production UK 727 571 1,154 Rest of Europe 152 144 226 USA 322 426 2,111 Rest of World 727 500 1,175 ----------------------- 1,928 1,641 4,666 ----------------------- Gas, Power and Renewables UK 2 (29) 10 Rest of Europe 47 64 63 USA (25) 36 25 Rest of World 87 31 2 ----------------------- 111 102 100 ----------------------- Refining and Marketing UK (124) (197) (111) Rest of Europe 139 227 136 USA (79) 46 594 Rest of World 132 303 121 ----------------------- 68 379 740 ----------------------- Chemicals UK (31) (75) (50) Rest of Europe 47 (1) 80 USA 23 (9) 13 Rest of World 37 18 38 ----------------------- 76 (67) 81 ----------------------- Other businesses and corporate (125) (175) (115) ----------------------- 2,058 1,880 5,472 ======================= By geographical area UK 530 375 927 Rest of Europe 386 388 485 USA 158 216 2,685 Rest of World 984 901 1,375 ----------------------- 2,058 1,880 5,472 ======================= Included above: Share of profits of joint ventures 70 91 102 Share of profits of associated undertakings 188 219 229 ----------------------- 258 310 331 ======================= Notes 1. Restatement of comparative information Comparative information for 2001 has been restated to reflect the changes described below. (a) Transfer of solar, renewables and alternative fuels activities With effect from 1 January 2002, the solar, renewables and alternative fuels activities have been transferred from Other businesses and corporate to Gas and Power. To reflect this transfer Gas and Power has been renamed Gas, Power and Renewables from the same date. (b) New accounting standard for deferred tax With effect from 1 January 2002 BP has adopted Financial Reporting Standard No.19 'Deferred Tax' (FRS 19). This standard generally requires that deferred tax should be provided on a full liability basis rather than on a restricted liability basis as required by Statement of Standard Accounting Practice No.15 'Accounting for Deferred Tax'. The adoption of FRS 19 has been treated as a change in accounting policy. Under FRS 19 deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or right to pay less tax in the future. In particular: o Provision is made for tax on gains arising from the disposal of fixed assets that have been rolled over into replacement assets, only to the extent that, at the balance sheet date, there is a binding agreement to dispose of the replacement assets concerned. However, no provision is made where, on the basis of all available evidence at the balance sheet date, it is more likely than not that the taxable gain will be rolled over into replacement assets and charged to tax only where the replacement assets are sold. o Provision is made for deferred tax that would arise on remittance of the retained earnings of overseas subsidiaries, joint ventures and associated undertakings only to the extent that, at the balance sheet date, dividends have been accrued as receivable. Deferred tax assets are recognised only to the extent that it is considered more likely than not that there will be suitable taxable profits from which the underlying timing differences can be deducted. Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date. As a consequence of adopting FRS 19 acquisitions have been restated as if the new standard applied at that time. This leads to the creation of higher deferred tax liabilities and greater amounts of goodwill on those acquisitions. Balance sheet at 31 December 2001 Restated Reported ================= $ million Fixed assets Intangible assets 16,489 15,593 Tangible assets 77,410 77,410 Investments 11,963 12,047 ----------------- 105,862 105,050 ----------------- Current assets 36,108 36,108 Creditors - amounts falling due within one year 37,614 37,614 ----------------- Net current liabilities (1,506) (1,506) ----------------- Total assets less current liabilities 104,356 103,544 Creditors - amounts falling due after more than one year 15,413 15,413 Provisions for liabilities and charges Deferred taxation 11,702 1,655 Other provisions 11,482 11,482 ----------------- Net assets 65,759 74,994 Minority shareholders' interest 598 627 ----------------- BP shareholders' interest 65,161 74,367 ================= Notes Income statements Restated Reported ---------------- ---------------- First Fourth First Fourth Quarter Quarter Quarter Quarter 2001 2001 2001 2001 =================================== $ million Exploration and Production 4,666 1,641 4,680 1,655 Gas, Power and Renewables 100 102 112 106 Refining and Marketing 740 379 753 392 Chemicals 81 (67) 81 (67) Other businesses and corporate (115) (175) (127) (179) ----------------------------------- Total replacement cost operating profit 5,472 1,880 5,499 1,907 Profit (loss) on sale of fixed assets and businesses and termination of operations 218 (38) 218 (38) ----------------------------------- Replacement cost profit before interest and tax 5,690 1,842 5,717 1,869 Stock holding gains (losses) (238) (1,297) (238) (1,297) ----------------------------------- Historical cost profit before interest and tax 5,452 545 5,479 572 Interest expense 446 414 446 414 ----------------------------------- Profit before taxation 5,006 131 5,033 158 Taxation 2,168 711 1,718 537 ----------------------------------- Profit (loss) after taxation 2,838 (580) 3,315 (379) Minority shareholders' interest 8 23 11 26 ----------------------------------- Profit (loss) for the period 2,830 (603) 3,304 (405) =================================== Distribution to shareholders 1,178 1,289 1,178 1,289 ----------------------------------- Earnings per ordinary share - cents Basic 12.59 (2.67) 14.70 (1.78) Diluted 12.51 (2.64) 14.61 (1.76) =================================== Notes 2. Turnover First Fourth First Quarter Quarter Quarter 2002 2001 2001 ======================== $ million By business Exploration and Production 5,638 5,336 9,117 Gas, Power and Renewables 7,768 7,522 12,122 Refining and Marketing 24,889 26,528 28,523 Chemicals 2,642 2,481 2,689 Other businesses and corporate 135 146 127 ------------------------ 41,072 42,013 52,578 Less: sales between businesses 4,782 5,196 7,166 ------------------------ Group excluding JVs 36,290 36,817 45,412 Sales of joint ventures 279 297 288 ------------------------ 36,569 37,114 45,700 ======================== By geographical area Group excluding JVs UK 10,995 11,432 11,940 Rest of Europe 9,119 8,657 8,975 USA 15,265 16,039 22,491 Rest of World 6,984 7,285 9,691 ------------------------ 42,363 43,413 53,097 Less: sales between areas 6,073 6,596 7,685 ------------------------ 36,290 36,817 45,412 ------------------------ Notes 3. Operating profits are after charging: First Fourth First Quarter Quarter Quarter 2002 2001 2001 ======================= $ million Exploration expense UK 6 9 4 Rest of Europe 23 7 2 USA 42 82 93 Rest of World 53 46 70 ----------------------- 124 144 169 ======================= Production taxes (i) UK petroleum revenue tax 63 147 238 Overseas production taxes 184 189 345 ----------------------- 247 336 583 ======================= (i) Production taxes are charged against Exploration and Production's operating profit and are not included in the charge for taxation in Note 8. 4. Analysis of exceptional items Exploration and Production 5 (85) (42) Gas, Power and Renewables - 1 (1) Refining and Marketing (45) 18 265 Chemicals (60) (130) (6) Other businesses and corporate (9) 158 2 ----------------------- Profit (loss) on sale of fixed assets and businesses or termination of operations (109) (38) 218 Taxation credit (charge) 39 26 (151) ----------------------- Exceptional items after taxation (70) (12) 67 ======================= 5. Replacement cost profit Replacement cost profits reflect the current cost of supplies. The replacement cost profit for the period is arrived at by excluding from the historical cost profit stock holding gains and losses. Notes 6. Stock holding gains (losses) First Fourth First Quarter Quarter Quarter 2002 2001 2001 ======================= $ million Exploration and Production 3 (5) 9 Gas, Power and Renewables 4 (20) (11) Refining and Marketing 495 (1,138) (243) Chemicals (29) (134) 7 ----------------------- 473 (1,297) (238) Minority shareholders' interest 31 - - ----------------------- 442 (1,297) (238) ======================= 7. Interest expense Group interest payable(a) 267 286 367 Capitalized (15) (7) (34) ----------------------- 252 279 333 Joint ventures 14 21 20 Associated undertakings 24 26 40 Unwinding of discount on provisions 43 46 53 Change in discount rate for provisions - 42 - ----------------------- 333 414 446 ======================= (a) Includes charges relating to the early redemption of debt. - - 10 ----------------------- 8. Charge for taxation Current 533 550 1,735 Deferred 220 161 433 ----------------------- 753 711 2,168 ======================= UK 189 174 272 Overseas 564 537 1,896 ----------------------- 753 711 2,168 ======================= Notes 9. Analysis of changes in net debt First Fourth First Quarter Quarter Quarter 2002 2001 2001 ======================= $ million Opening balance Finance debt 21,417 20,474 21,190 Less: Cash 1,358 1,438 1,170 Current asset investments 450 519 661 ----------------------- Opening net debt 19,609 18,517 19,359 ----------------------- Closing balance Finance debt 24,531 21,417 18,788 Less: Cash 1,379 1,358 1,188 Current asset investments 286 450 959 ----------------------- Closing net debt 22,866 19,609 16,641 ----------------------- (Increase) decrease in net debt (3,257) (1,092) 2,718 ======================= Movement in cash/bank overdrafts 25 (63) 48 Increase(decrease) in current asset investments (165) (65) 302 Net cash outflow (inflow) from financing (excluding share capital) (2,192) (941) 2,423 Other movements 25 (17) 31 Debt acquired (999) (8) - ----------------------- Movement in net debt before exchange effects (3,306) (1,094) 2,804 Exchange adjustments 49 2 (86) ----------------------- (Increase) decrease in net debt (3,257) (1,092) 2,718 ======================= Notes 10. Consolidated statement of cash flows presented on a US GAAP format First Fourth First Quarter Quarter Quarter 2002 2001 2001 ======================= $ million Operating activities Profit (loss) after taxation 1,336 (580) 2,838 Adjustments to reconcile profits (losses) after tax to net cash provided by operating activities: Depreciation and amounts provided 2,153 2,457 2,167 Exploration expenditure written off 59 85 108 Share of profit of joint ventures and associates less dividends received (17) (52) (63) (Profit) loss on sale of businesses and fixed assets 109 36 (218) Working capital movement (see analysis below) (669) 2,087 1,354 Deferred taxation 220 161 433 Other (108) (58) (124) ----------------------- Net cash provided by operating activities 3,083 4,136 6,495 ----------------------- Investing activities Capital expenditures (2,814) (3,695) (2,611) Acquisitions, net of cash acquired (1,550) (602) - Investment in associated undertakings (143) (179) (120) Net investment in joint ventures (46) (220) (61) Proceeds from disposal of assets 348 846 694 ----------------------- Net cash used in investing activities (4,205) (3,850) (2,098) ----------------------- Notes 10. Consolidated statement of cash flows presented on a US GAAP format (continued) First Fourth First Quarter Quarter Quarter 2002 2001 2001 ======================= $ million Financing activities Proceeds from shares issued (repurchased) 91 (86) (443) Proceeds from long-term financing 1,746 267 517 Repayments of long-term financing (234) (434) (146) Net increase (decrease) in short-term debt 680 1,108 (2,794) Dividends paid - BP shareholders (1,288) (1,232) (1,181) - Minority shareholders (13) (38) - ----------------------- Net cash used in financing activities 982 (415) (4,047) ----------------------- Currency translation differences relating to cash and cash equivalents (3) (20) (34) ----------------------- Increase (decrease) in cash and cash equivalents (143) (149) 316 ----------------------- Cash and cash equivalents at beginning of period 1,808 1,957 1,831 ----------------------- Cash and cash equivalents at end of period 1,665 1,808 2,147 ----------------------- Analysis of working capital movement (Increase) decrease in stocks (496) 1,368 358 (Increase) decrease in debtors (443) 1,202 (1,044) Increase (decrease) in creditors 270 (483) 2,040 ----------------------- Total working capital movement (669) 2,087 1,354 ======================= Notes 11. Ordinary shares Shares in issue at 31 March 2002 = 22,456.5 million. Average number of shares outstanding during January-March 2002 = 22,402.9 million (this excludes shares held by the Employee Share Ownership Plans). Each BP ADS represents six BP ordinary shares. 12. Statutory accounts The financial information shown in this publication is unaudited and does not constitute statutory accounts. The 2001 statutory accounts have been delivered to the UK Registrar of Companies; the report of the auditors on those accounts was unqualified. Contacts London New York Frankfurt Press Office Roddy Kennedy Ian Fowler +44 (0)20 7496 4624 +1 212 451 8008 Investor Greg Coleman Terry LaMore Karl Weckel Relations +44 (0)20 7496 4717 +1 212 451 8034 +49 (0)69 71 37 9990 http://www.bp.com/investors This information is provided by RNS The company news service from the London Stock Exchange MORE TO FOLLOW QRFBKKKDCBKKPQN

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