1st Quarter Results Pt 2 of 2
BP PLC
27 April 2004
BP p.l.c. and Subsidiaries
Summarized Group Results
First Fourth First
Quarter Quarter Quarter
2004 2003 2003
=======================
$ million
Exploration and Production 4,242 2,848 4,718
Refining and Marketing 720 320 628
Petrochemicals (25) 41 137
Gas, Power and Renewables 198 86 216
Other businesses and corporate 1,129 465 (166)
-----------------------
Replacement cost profit before interest and tax 6,264 3,760 5,533
Stock holding gains (losses) (Note 5) 648 84 799
-----------------------
Historical cost profit before interest and tax 6,912 3,844 6,332
Interest expense (Note 6) 152 160 176
Other finance expense (Note 7) 76 152 129
-----------------------
Profit before taxation 6,684 3,532 6,027
Taxation (Note 8) 1,822 1,157 1,782
-----------------------
Profit after taxation 4,862 2,375 4,245
Minority shareholders' interest 44 41 26
-----------------------
Profit for the period 4,818 2,334 4,219
=======================
Distribution to shareholders 1,483 1,495 1,386
-----------------------
Earnings per ordinary share - cents
Basic 21.81 10.56 18.90
Diluted 21.34 10.32 18.84
=======================
Replacement Cost Results
Historical cost profit for the period 4,818 2,334 4,219
Stock holding (gains) losses net of
minority shareholders' interest (648) (84) (799)
-----------------------
Replacement cost profit for the period 4,170 2,250 3,420
-----------------------
Earnings per ordinary share - cents
On replacement cost profit for the period 18.88 10.18 15.32
=======================
Summarized Group Balance Sheet
31 March 31 December
2004 2003
=====================
$ million
Fixed assets
Intangible assets 13,386 13,642
Tangible assets 91,800 91,911
Investments 18,492 17,458
---------------------
123,678 123,011
---------------------
Current assets
Stocks 11,298 11,617
Debtors 35,099 33,902
Investments 328 185
Cash at bank and in hand 2,006 1,947
---------------------
48,731 47,651
Creditors - amounts falling due within one year
Finance debt 6,997 9,456
Other creditors 43,018 41,128
---------------------
Net current assets (liabilities) (1,284) (2,933)
---------------------
Total assets less current liabilities 122,394 120,078
Creditors - amounts falling due
after more than one year
Finance debt 12,940 12,869
Other creditors 5,834 6,090
Provisions for liabilities and charges
Deferred taxation 14,578 14,371
Other provisions 8,766 8,815
---------------------
Net assets excluding pensions and other
post-retirement benefit balances 80,276 77,933
Defined benefit pension plan surplus 1,258 1,021
Defined benefit pension plan and other
post-retirement benefit plan deficits (7,524) (7,510)
---------------------
Net assets 74,010 71,444
Minority shareholders' interest - equity 1,181 1,125
---------------------
BP shareholders' interest 72,829 70,319
=====================
Movement in BP shareholders' interest: $ million
At 31 December 2003 75,938
Prior year adjustment - change in accounting policy
(see Note 1) (5,619)
------
As restated 70,319
Profit for the period 4,818
Distribution to shareholders (1,483)
Currency translation differences (net of tax) 238
Issue of ordinary share capital for employee share schemes 126
(Purchase) release of shares by ESOP trusts 60
Repurchase of ordinary share capital (1,249)
------
At 31 March 2004 72,829
======
Summarized Group Cash Flow Statement
First Fourth First
Quarter Quarter Quarter
2004 2003 2003
=======================
$ million
Net cash inflow from operating activities (a) 7,674 3,500 5,961
-----------------------
Dividends from joint ventures 178 51 13
-----------------------
Dividends from associated undertakings 31 120 55
-----------------------
Servicing of finance and returns on investments
Interest received 41 51 31
Interest paid (165) (190) (207)
Dividends received 12 66 6
Dividends paid to minority shareholders (2) (3) (2)
-----------------------
Net cash outflow from servicing of
finance and returns on investments (114) (76) (172)
-----------------------
Taxation
UK corporation tax (322) (329) (312)
Overseas tax (258) (1,187) (320)
-----------------------
Tax paid (580) (1,516) (632)
-----------------------
Capital expenditure and financial investment
Payments for fixed assets (2,941) (3,683) (2,871)
Proceeds from the sale of fixed assets 2,839 1,410 2,317
-----------------------
Net cash outflow for capital expenditure and
financial investment (102) (2,273) (554)
-----------------------
Acquisitions and disposals
Acquisitions, net of cash acquired - (33) -
Proceeds from the sale of businesses - - 160
Net investment in TNK-BP joint venture (1,273) 274 -
Net investment in other joint ventures (92) (162) (14)
Investments in associated undertakings (433) (227) (186)
-----------------------
Net cash outflow for acquisitions and disposals (1,798) (148) (40)
-----------------------
Equity dividends paid (1,492) (1,438) (1,397)
-----------------------
Net cash inflow (outflow) 3,797 (1,780) 3,234
=======================
Financing (b) 3,598 (2,354) 3,599
Management of liquid resources 138 (223) 13
Increase (decrease) in cash 61 797 (378)
-----------------------
3,797 (1,780) 3,234
=======================
Analysis of Cash Flow
First Fourth First
Quarter Quarter Quarter
2004 2003 2003
=======================
$ 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 6,912 3,844 6,332
Depreciation and amounts provided 2,814 3,093 2,709
Exploration expenditure written off 67 129 50
Net operating charge for pensions and other
post-retirement benefits, less contributions (23) (2,190) (243)
Share of profits of joint ventures
and associated undertakings (641) (494) (304)
Interest and other income (64) (121) (48)
(Profit) loss on sale of fixed
assets and businesses (1,230) 15 (394)
Charge for provisions 67 238 29
Utilization of provisions (155) (204) (116)
Decrease (increase) in stocks 247 (362) 376
(Increase) decrease in debtors (1,586) 375 (6,645)
Increase (decrease) in creditors 1,266 (823) 4,215
-----------------------
Net cash inflow from operating activities 7,674 3,500 5,961
=======================
(b) Financing
Long-term borrowing (628) (1,666) (1,015)
Repayments of long-term borrowing 836 776 403
Short-term borrowing (156) (1,738) (626)
Repayments of short-term borrowing 2,408 278 3,899
-----------------------
2,460 (2,350) 2,661
Issue of ordinary share capital
for employee share schemes (126) (61) (67)
Purchase of shares by ESOP trusts 15 57 6
Repurchase of ordinary share capital 1,249 - 999
-----------------------
Net cash outflow (inflow) from financing 3,598 (2,354) 3,599
=======================
Adjusted Operating Cash Flow
Net cash inflow from operating activities (a) 7,674 3,500 5,961
Dividends received from joint ventures 178 51 13
Dividends received from associated undertakings 31 120 55
Net cash outflow from servicing of finance
and returns on investments (114) (76) (172)
-----------------------
Adjusted operating cash flow (pre-tax) 7,769 3,595 5,857
Tax paid on operations* (650) (1,600) (578)
-----------------------
Adjusted operating cash flow (post-tax) 7,119 1,995 5,279
-----------------------
* Components of tax payments
Tax paid on operations (650) (1,600) (578)
Tax refunded/paid) on exceptional items 70 84 (54)
-----------------------
Total tax paid (580) (1,516) (632)
=======================
(a) Includes pre-tax discretionary pension funding of $85 million in 1Q
2004, $1,586 million in 4Q 2003 and $308 million in 1Q 2003. On a
post-tax basis, these amounts are $60 million, $1,031 million and $197
million respectively.
Capital Expenditure and Acquisitions
First Fourth First
Quarter Quarter Quarter
2004 2003 2003
=======================
$ million
By business
Exploration and Production
UK 153 189 196
Rest of Europe 48 75 51
USA 932 1,140 963
Rest of World(a) 2,690 1,191 908
-----------------------
3,823 2,595 2,118
-----------------------
Refining and Marketing
UK 77 249 73
Rest of Europe 92 446 104
USA 258 623 336
Rest of World 37 181 24
-----------------------
464 1,499 537
-----------------------
Petrochemicals
UK 20 35 -
Rest of Europe 38 69 31
USA 47 130 44
Rest of World 61 65 21
-----------------------
166 299 96
-----------------------
Gas, Power and Renewables
UK 1 21 8
Rest of Europe 2 46 15
USA 11 49 41
Rest of World 47 27 23
-----------------------
61 143 87
-----------------------
Other businesses and corporate
UK 2 29 18
Rest of Europe - 1 1
USA 9 43 10
Rest of World - 1 1
-----------------------
11 74 30
-----------------------
4,525 4,610 2,868
=======================
By geographical area
UK 253 523 295
Rest of Europe 180 637 202
USA 1,257 1,985 1,394
Rest of World(a) 2,835 1,465 977
-----------------------
4,525 4,610 2,868
=======================
(a) First quarter 2004 included the investment in TNK's interest in
Slavneft within TNK-BP.
Exchange rates
US dollar/sterling average rate for the period 1.84 1.70 1.60
US dollar/sterling period-end rate 1.83 1.78 1.57
US dollar/euro average rate for the period 1.25 1.19 1.07
US dollar/euro period-end rate 1.22 1.25 1.08
Analysis of Replacement Cost Profit
Before Interest and Tax
First Fourth First
Quarter Quarter Quarter
2004 2003 2003
=======================
$ million
By business
Exploration and Production
UK 823 654 1,078
Rest of Europe 163 154 195
USA 1,494 716 1,658
Rest of World 1,762 1,324 1,787
-----------------------
4,242 2,848 4,718
-----------------------
Refining and Marketing
UK (189) (152) (43)
Rest of Europe 289 158 361
USA 409 174 145
Rest of World 211 140 165
-----------------------
720 320 628
-----------------------
Petrochemicals
UK (156) (65) (90)
Rest of Europe 154 34 117
USA (109) 6 54
Rest of World 86 66 56
-----------------------
(25) 41 137
-----------------------
Gas, Power and Renewables
UK 12 40 4
Rest of Europe (11) (11) (9)
USA 79 5 57
Rest of World 118 52 164
-----------------------
198 86 216
-----------------------
Other businesses and corporate
UK (163) 324 (93)
Rest of Europe (6) (42) (8)
USA (30) (23) (81)
Rest of World 1,328 206 16
-----------------------
1,129 465 (166)
-----------------------
6,264 3,760 5,533
=======================
By geographical area
UK 327 801 856
Rest of Europe 589 293 656
USA 1,843 878 1,833
Rest of World 3,505 1,788 2,188
-----------------------
6,264 3,760 5,533
=======================
Included above:
Share of profits of joint ventures 485 402 117
Share of profits of associated undertakings 141 93 180
-----------------------
626 495 297
=======================
Pro Forma Result: Replacement Cost Profit Before
Interest and Tax Adjusted for Acquisition Amortization
First Fourth First
Quarter Quarter Quarter
2004 2003 2003
=======================
$ million
By business
Exploration and Production
UK 858 689 1,111
Rest of Europe 163 154 195
USA 1,708 1,091 1,917
Rest of World 1,839 1,340 1,918
-----------------------
4,568 3,274 5,141
-----------------------
Refining and Marketing
UK (63) (36) 67
Rest of Europe 289 158 361
USA 504 269 240
Rest of World 211 140 165
-----------------------
941 531 833
-----------------------
Petrochemicals
UK (156) (65) (90)
Rest of Europe 154 34 117
USA (109) 6 54
Rest of World 86 66 56
-----------------------
(25) 41 137
-----------------------
Gas, Power and Renewables
UK 12 40 4
Rest of Europe (11) (11) (9)
USA 79 5 57
Rest of World 118 52 164
-----------------------
198 86 216
-----------------------
Other businesses and corporate
UK (163) 324 (93)
Rest of Europe (6) (42) (8)
USA (30) (23) (81)
Rest of World 1,328 206 16
-----------------------
1,129 465 (166)
-----------------------
6,811 4,397 6,161
-----------------------
By geographical area
UK 488 952 999
Rest of Europe 589 293 656
USA 2,152 1,348 2,187
Rest of World 3,582 1,804 2,319
-----------------------
6,811 4,397 6,161
=======================
Analysis of Exceptional Items
First Fourth First
Quarter Quarter Quarter
2004 2003 2003
=======================
$ million
Exploration and Production
UK (1) 11 1
Rest of Europe - 1 -
USA (19) 20 (160)
Rest of World 231 (81) 592
-----------------------
211 (49) 433
-----------------------
Refining and Marketing
UK (36) (12) (15)
Rest of Europe (17) (47) (40)
USA (5) (32) 4
Rest of World (82) - (1)
-----------------------
(140) (91) (52)
-----------------------
Petrochemicals
UK (7) (1) 3
Rest of Europe (19) (10) (1)
USA (126) (5) 4
Rest of World (2) 32 1
-----------------------
(154) 16 7
-----------------------
Gas, Power and Renewables
UK - - -
Rest of Europe - - -
USA - (10) -
Rest of World - - -
-----------------------
- (10) -
-----------------------
Other businesses and corporate
UK (1) 27 -
Rest of Europe - - (1)
USA - (45) 7
Rest of World 1,314 137 -
-----------------------
1,313 119 6
Profit (loss) on sale of fixed assets and
businesses or termination of operations
1,230 (15) 394
Taxation credit (charge) 70 84 (54)
-----------------------
Exceptional items after taxation 1,300 69 340
=======================
Identified Non-operating Items and UPIS
First Fourth First
Quarter Quarter Quarter
2004 2003 2003
=======================
$ million
By business
Exploration and Production
UK - (144) (53)
Rest of Europe - - -
USA(a) (66) (236) (206)
Rest of World (123) - (5)
-----------------------
(189) (380) (264)
-----------------------
Refining and Marketing
UK - - -
Rest of Europe - (146) (18)
USA - - -
Rest of World - - -
-----------------------
- (146) (18)
-----------------------
Petrochemicals
UK - - -
Rest of Europe - - -
USA - - -
Rest of World - - -
-----------------------
- - -
-----------------------
Gas, Power and Renewables
UK - - -
Rest of Europe - - -
USA - - -
Rest of World - - -
-----------------------
- - -
-----------------------
Other businesses and corporate(b)
UK - (74) -
Rest of Europe - - -
USA - 648 -
Rest of World - - -
-----------------------
- 574 -
-----------------------
Sub-total (189) 48 (282)
Interest - - -
-----------------------
Total before taxation (189) 48 (282)
Taxation credit (charge) 66 134 227
-----------------------
Total after taxation (123) 182 (55)
=======================
(a) Includes increases in the provision for Unrealized Profit in Stock
(UPIS) of $66 million in 1Q 2004, $57 million in 4Q 2003 and $125
million in 1Q 2003, which removes the upstream margin from downstream
inventories.
(b) For 4Q 2003 Other businesses and corporate includes a vacant space
provision of $74 million and a credit of $648 million relating to US
post-retirement benefit schemes.
Acquisition Amortization by Business
First Fourth First
Quarter Quarter Quarter
2004 2003 2003
=======================
$ million
Exploration and Production
UK 35 35 33
USA 214 375 259
Rest of World 77 16 131
-----------------------
326 426 423
-----------------------
Refining and Marketing
UK 126 116 110
USA 95 95 95
-----------------------
221 211 205
-----------------------
Total acquisition amortization 547 637 628
=======================
Production and Realizations
First Fourth First
Quarter Quarter Quarter
2004 2003 2003
=======================
Production
Crude oil (mb/d) (net of royalties)
UK 344 339 442
Rest of Europe 73 74 90
USA 564 570 606
Rest of World 1,361 1,265 692
---------------------
Total crude oil production 2,342 2,248 1,830
=====================
Natural gas liquids (mb/d) (net of royalties)
UK 20 21 29
Rest of Europe 5 5 5
USA 137 147 167
Rest of World 29 33 32
---------------------
Total natural gas liquids production 191 206 233
=====================
Liquids (a)(mb/d) (net of royalties)
UK 364 360 471
Rest of Europe 78 79 95
USA 701 717 773
Rest of World 1,390 1,298 724
---------------------
Total liquids production 2,533 2,454 2,063
=====================
Natural gas (b) (mmcf/d) (net of royalties)
UK 1,355 1,318 1,798
Rest of Europe 142 143 131
USA 2,869 2,933 3,437
Rest of World 4,234 4,206 3,651
---------------------
Total natural gas production 8,600 8,600 9,017
=====================
Average realizations
Crude oil ($/bbl)
UK 29.36 28.18 31.16
USA 32.69 28.49 31.74
Rest of World 30.80 27.56 29.91
BP Average 31.30 28.18 31.07
=====================
Natural gas liquids ($/bbl)
UK 25.70 20.06 23.28
USA 22.25 19.11 18.26
Rest of World 24.61 24.23 23.05
BP Average 23.14 20.15 19.82
=====================
Liquids (a) ($/bbl)
UK 29.16 27.71 30.67
USA 31.08 26.92 29.36
Rest of World 30.42 27.33 29.48
BP Average 30.48 27.30 29.82
=====================
Natural gas ($/mcf)
UK 4.70 3.87 3.32
USA 4.72 3.85 5.27
Rest of World 2.67 2.35 2.70
BP Average 3.79 3.18 3.87
=====================
(a) Crude oil and natural gas liquids.
(b) Natural gas is converted to oil equivalent at 5.8 billion cubic feet =
1 million barrels.
Reconciliation of Historical Cost
Profit (Loss) to Pro Forma Result
Reported Acquisition Pro forma
$ million earnings amortization result
======================================
4Q 2003
Exploration and Production 2,848 426 3,274
Refining and Marketing 320 211 531
Petrochemicals 41 - 41
Gas, Power and Renewables 86 - 86
Other businesses and corporate 465 - 465
--------------------------------------
RC profit before interest and tax 3,760 637 4,397
--------------------------------------
Interest and other finance expense (312) - (312)
Taxation (1,157) - (1,157)
MSI (41) - (41)
--------------------------------------
RC profit 2,250 637 2,887
=================
Stock holding gains (losses) 84
-----
HC profit 2,334
=====
1Q 2003
Exploration and Production 4,718 423 5,141
Refining and Marketing 628 205 833
Petrochemicals 137 - 137
Gas, Power and Renewables 216 - 216
Other businesses and corporate (166) - (166)
--------------------------------------
RC profit before interest and tax 5,533 628 6,161
--------------------------------------
Interest and other finance expense (305) - (305)
Taxation (1,782) - (1,782)
MSI (26) - (26)
--------------------------------------
RC profit 3,420 628 4,048
=================
Stock holding gains (losses) 799
-----
HC profit 4,219
=====
Return on Average Capital Employed
First Fourth First
Quarter Quarter Quarter
2004 2003 2003
=======================
$ million
Replacement cost basis
RC profit for the period (a) 4,170 2,250 3,420
Interest (b) 64 73 99
Minority shareholders' interest 44 41 26
-----------------------
Adjusted RC profit 4,278 2,364 3,545
=======================
Average capital employed 93,858 90,938 85,787
ROACE - replacement cost basis 18.2% 10.4% 16.5%
-----------------------
Pro forma basis
Adjusted RC profit (a) 4,278 2,364 3,545
Acquisition amortization 547 637 628
Average capital employed 93,858 90,938 85,787
Average capital employed acquisition adjustment 13,146 13,556 15,940
-----------------------
Average capital employed (pro forma basis) 80,712 77,382 69,847
ROACE - Pro forma basis 23.9% 15.5% 23.9%
-----------------------
Historical cost basis
Profit for the period (a) 4,818 2,334 4,219
Interest (b) 64 73 99
Minority shareholders' interest 44 41 26
-----------------------
Adjusted historical cost profit 4,926 2,448 4,344
=======================
Average capital employed 93,858 90,938 85,787
ROACE - historical cost basis 21.0% 10.8% 20.3%
(a) 1Q 2004 includes $1,300 million in respect of exceptional items and
$(123) million in respect of non-operating items and UPIS. 4Q 2003
includes $69 million in respect of exceptional items and $182 million
in respect of non-operating items and UPIS. 1Q 2003 includes $340
million in respect of exceptional items and $(55) million in respect of
non-operating items and UPIS.
(b) Excludes interest on joint venture and associated undertakings' debt
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
2004 2003 2003
=======================
$ million
Gross debt 19,937 22,325 19,042
Cash and current asset investments 2,334 2,132 1,379
-----------------------
Net debt 17,603 20,193 17,663
=======================
Equity 74,010 71,444 66,236
Net debt ratio 19% 22% 21%
-----------------------
Acquisition adjustment 12,930 13,362 15,208
-----------------------
Net debt ratio - pro forma basis 22% 26% 26%
Pre-Tax Cash Returns
First Fourth First
Quarter Quarter Quarter
2004 2003 2003
=======================
$ million
Replacement cost profit before interest and tax 6,264 3,760 5,533
Exceptional items (1,230) 15 (394)
-----------------------
Replacement cost operating profit 5,034 3,775 5,139
Acquisition amortization 547 637 628
-----------------------
Pro forma replacement cost operating profit 5,581 4,412 5,767
Non-cash non-operating items 123 308 49
Pro forma DD&A, adjusted for non-cash
non-operating items 2,144 2,148 2,032
-----------------------
Cash returns numerator 7,848 6,868 7,848
=======================
Capital employed 93,947 93,769 85,278
Liabilities for current and deferred taxation 17,207 16,068 15,314
-----------------------
Operating capital employed 111,154 109,837 100,592
Acquisition adjustment (12,930)(13,362)(15,208)
-----------------------
Cash returns denominator 98,224 96,475 85,384
=======================
Average cash returns denominator 97,350 93,490 84,609
=======================
Cash return 32% 29% 37%
Notes
1. Restatement of comparative information
Comparative information for 2003 has been restated to reflect the
changes described below.
(a) Transfer of natural gas liquids activities
With effect from 1 January 2004 natural gas liquids (NGLs)
activities have been transferred from the Exploration and Production
segment to Gas, Power and Renewables.
(b) New accounting standard for pensions and other post-retirement
benefits
With effect from 1 January 2004 BP has adopted Financial Reporting
Standard No. 17 'Retirement Benefits' (FRS 17). FRS 17 requires
that financial statements reflect at fair value the assets and
liabilities arising from an employer's retirement benefit
obligations and any related funding. The operating costs of
providing retirement benefits are recognized in the period in which
they are earned together with any related finance costs and changes
in the value of related assets and liabilities. This contrasts with
Statement of Standard Accounting Practice No. 24 'Accounting for
Pension Costs', which requires the cost of providing pensions to be
recognized on a systematic and rational basis over the period during
which the employer benefits from the employee's services. The
difference between the amount charged in the income statement and
the amount paid as contributions into the pension fund is shown as a
prepayment or provision on the balance sheet.
(c) Accounting for Employee Share Ownership Plans
With effect from 1 January 2004 BP has adopted Urgent Issues Task
Force Abstract No. 38 'Accounting for ESOP Trusts'. This abstract
requires that BP shares held by the group for the purposes of
Employee Share Ownership Plans (ESOPs) are deducted from equity on
the balance sheet. Such shares were previously classified as fixed
asset investments.
Balance sheet at 31 December 2003 Restated Reported
====================
$ million
Fixed assets
Intangible assets 13,642 13,642
Tangible assets 91,911 91,911
Investments 17,458 17,554
--------------------
123,011 123,107
--------------------
Current assets 47,651 54,465
Creditors - amounts falling due within one year 50,584 50,584
-------------------
Net current assets (liabilities) (2,933) 3,881
-------------------
Total assets less current liabilities 120,078 126,988
Creditors - amounts falling due after
more than one year 18,959 18,959
Provisions for liabilities and charges
Deferred taxation 14,371 15,273
Other provisions 8,815 15,693
-------------------
Net assets excluding pension and other
post-retirement benefit balances 77,933 77,063
Defined benefit pension plan surplus 1,021 -
Defined benefit pension plan and other
post-retirement benefit plan deficits (7,510) -
-------------------
Net assets 71,444 77,063
Minority shareholders' interest 1,125 1,125
-------------------
BP shareholders' interest 70,319 75,938
===================
Notes
Income statements Restated Reported
Fourth First Fourth First
Quarter Quarter Quarter Quarter
2003 2003 2003 2003
================ ================
$ million
Exploration and Production 2,848 4,718 2,889 4,759
Refining and Marketing 320 628 274 579
Petrochemicals 41 137 51 146
Gas, Power and Renewables 86 216 67 194
Other businesses and corporate 465 (166) (176) (159)
-----------------------------------
Replacement cost profit before
interest and tax 3,760 5,533 3,105 5,519
Stock holding gains (losses) 84 799 84 799
-----------------------------------
Historical cost profit before
interest and tax 3,844 6,332 3,189 6,318
Interest expense 160 176 227 220
Other finance expense 152 129 - -
-----------------------------------
Profit before taxation 3,532 6,027 2,962 6,098
Taxation 1,157 1,782 949 1,805
-----------------------------------
Profit after taxation 2,375 4,245 2,013 4,293
Minority shareholders' interest 41 26 41 26
-----------------------------------
Profit for the period 2,334 4,219 1,972 4,267
===================================
Distribution to shareholders 1,495 1,386 1,495 1,386
-----------------------------------
Earnings per ordinary share - cents
Basic 10.56 18.90 8.93 19.11
Diluted 10.32 18.84 8.69 19.05
===================================
Notes
2. Turnover
First Fourth First
Quarter Quarter Quarter
2004 2003 2003
=======================
$ million
By business
Exploration and Production 8,166 7,450 8,878
Refining and Marketing 41,694 36,378 39,678
Petrochemicals 4,510 4,336 3,938
Gas, Power and Renewables 20,975 16,701 18,080
Other businesses and corporate 121 137 111
------------------------
75,466 65,002 70,685
Less: sales between businesses 7,864 7,138 8,654
------------------------
Group excluding JVs 67,602 57,864 62,031
Share of sales by joint ventures 1,878 1,798 398
------------------------
69,480 59,662 62,429
========================
By geographical area
Group excluding JVs
UK 17,296 14,117 15,132
Rest of Europe 12,041 12,288 13,317
USA 31,803 26,347 29,341
Rest of World 15,817 13,894 13,736
------------------------
76,957 66,646 71,526
Less: sales between areas 9,355 8,782 9,495
------------------------
67,602 57,864 62,031
------------------------
3. 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
4. Operating profits are after charging:
First Fourth First
Quarter Quarter Quarter
2004 2003 2003
=======================
$ million
Exploration expense
UK 2 1 3
Rest of Europe 2 5 4
USA 97 60 37
Rest of World 35 127 68
-----------------------
136 193 112
=======================
Production taxes (a)
UK petroleum revenue tax 126 44 133
Overseas production taxes 399 377 371
-----------------------
525 421 504
=======================
(a) Production taxes are charged against Exploration and Production's
operating profit and are not included in the charge for taxation in
Note 8.
5. Stock holding gains (losses)
Exploration and Production 8 - 6
Refining and Marketing 529 16 620
Petrochemicals 121 10 146
Gas, Power and Renewables (10) 58 27
-----------------------
648 84 799
=======================
Notes
6. Interest expense
First Fourth First
Quarter Quarter Quarter
2004 2003 2003
=======================
$ million
Group interest payable 149 172 187
Capitalized (50) (60) (34)
-----------------------
99 112 153
Joint ventures 41 36 13
Associated undertakings 12 12 10
-----------------------
152 160 176
=======================
7. Other finance expense
Interest on pension and other
post-retirement benefit plan liabilities 500 460 460
Expected return on pension and other
post-retirement benefit plan assets (498) (375) (375)
-----------------------
Interest net of expected return on plan assets 2 85 85
Unwinding of discount on provisions 48 42 44
Unwinding of discount on deferred consideration
for acquisition of investment in TNK-BP 26 25 -
-----------------------
76 152 129
=======================
8. Charge for taxation
Current 1,706 404 1,581
Deferred 116 753 201
-----------------------
1,822 1,157 1,782
=======================
UK 345 356 451
Overseas 1,477 801 1,331
-----------------------
1,822 1,157 1,782
=======================
Notes
9. Analysis of changes in net debt
First Fourth First
Quarter Quarter Quarter
2004 2003 2003
=======================
$ million
Opening balance
Finance debt 22,325 19,970 22,008
Less: Cash 1,947 1,091 1,520
Current asset investments 185 404 215
-----------------------
Opening net debt 20,193 18,475 20,273
-----------------------
Closing balance
Finance debt 19,937 22,325 19,042
Less: Cash 2,006 1,947 1,151
Current asset investments 328 185 228
-----------------------
Closing net debt 17,603 20,193 17,663
-----------------------
Decrease (increase) in net debt 2,590 (1,718) 2,610
=======================
Movement in cash/bank overdrafts 61 797 (378)
Increase (decrease) in current asset investments 138 (223) 13
Net cash outflow (inflow) from financing
(excluding share capital) 2,460 (2,350) 2,661
Exchange of Exchangeable Bonds for
Lukoil American Depositary Shares - - 420
Other movements 14 5 64
Debt acquired - (3) -
-----------------------
Movement in net debt before exchange effects 2,673 (1,774) 2,780
Exchange adjustments (83) 56 (170)
-----------------------
Decrease (increase) in net debt 2,590 (1,718) 2,610
=======================
Notes
10. TNK-BP Operational and Financial Information
First Fourth
Quarter Quarter
2004 2003
======= =======
Production (Net of royalties) (BP share)
Crude oil (mb/d) 766 669
Natural gas (mmcf/d) 382 296
Total hydrocarbons (mboe/d) (a) 832 720
======= =======
$ million
Income statement (BP share)
Replacement cost profit before interest and tax 374 354
Stock holding gains (losses) - -
Interest expense + (30) (24)
Taxation (115) (53)
Minority shareholders' interest (10) 1
------- -------
Net Income 219 278
======= =======
+ Excludes unwinding of discount on
deferred consideration 26 25
======= =======
Balance Sheet 31 March 31 December
2004 2003
======== ===========
Fixed assets - investments
Gross assets 12,011 10,339
Gross liabilities (3,509) (3,290)
------- -------
8,502 7,049
======= =======
Deferred consideration
Due within one year 1,236 1,227
Due after more than one year 2,369 2,352
------- -------
3,605 3,579
======= =======
First Fourth
Quarter Quarter
2004 2003
======= =======
Cash Flow
Additional investment in TNK-BP joint venture (1,416) (23)
Dividends related to period prior to acquisition 143 297
------- -------
Net investment in TNK-BP joint venture (1,273) 274
======= =======
Dividends received 119 -
======= =======
(a) Natural gas is converted to oil equivalent at 5.8 billion cubic feet =
1 million barrels.
BP's share of the result of the TNK-BP joint venture has been included
within Exploration and Production with effect from 29 August 2003. TNK-BP
operational and financial information for the first quarter has been
estimated and includes an adjustment in respect of the period 29 August to
31 December 2003 amounting to charges of $11 million and $29 million
respectively in replacement cost profit before interest and tax and net
income. TNK-BP's 2003 audited financial statements are expected to be
finalized in May 2004. Any further adjustment in respect of 2003 will be
reflected in BP's second quarter results.
Notes
11. Statutory accounts
The financial information shown in this publication is unaudited and
does not constitute statutory accounts. The 2003 Annual Report and
Accounts have been delivered to the UK Registrar of Companies; the
report of the auditors on those accounts was unqualified.
Contacts
London New York
-------------- --------------
Press Office Roddy Kennedy Ian Stewart
+44 (0)20 7496 4624 +1 212 451 8026
Investor Relations Fergus MacLeod Terry LaMore
+44 (0)20 7496 4717 +1 212 451 8034
http://www.bp.com/investors
This information is provided by RNS
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