1st Quarter Results Pt 2 of 2

BP PLC 26 April 2005 BP p.l.c. and Subsidiaries Group Results First Fourth First Quarter Quarter Quarter 2005 2004 2004 ======================= $ million Sales and other operating revenues 78,998 77,730 68,461 Earnings from jointly controlled entities - after interest and tax 486 356 312 Earnings from associates - after interest and tax 114 132 107 Interest and other revenues 212 247 89 ----------------------- Total revenues 79,810 78,465 68,969 Gain on sale of businesses and fixed assets 1,198 273 1,549 ----------------------- Total revenues and other income 81,008 78,738 70,518 Purchases 59,205 59,613 52,487 Production and manufacturing expenses 5,430 4,941 4,855 Production and similar taxes 649 647 525 Depreciation, depletion and amortization 2,288 2,530 2,163 Impairment and losses on sale of businesses and fixed assets 246 1,905 426 Exploration expense 160 258 136 Distribution and administration expenses 3,432 3,915 2,887 Fair value (gain) loss on embedded derivatives 122 - - ----------------------- Profit before interest and taxation 9,476 4,929 7,039 Interest payable (Note 5) (172) (143) (98) Other finance expense (Note 6) (29) (126) (76) ----------------------- Profit before taxation 9,275 4,660 6,865 Taxation (2,612) (1,591) (1,919) ----------------------- Profit for the period 6,663 3,069 4,946 ======================= Attributable to: BP shareholders 6,602 3,010 4,912 Minority interest 61 59 34 ----------------------- 6,663 3,069 4,946 ======================= Earnings per share - cents Profit attributable to BP shareholders Basic 30.79 14.00 22.24 Diluted 30.36 13.75 21.77 ======================= Summarized Group Balance Sheet 31 March 31 December 2005 2004 ===================== $ million Non-current assets Property, plant and equipment 92,110 93,092 Goodwill 10,754 10,857 Other intangible assets 4,232 4,205 Investments in jointly controlled entities 14,519 14,556 Investments in associates 5,710 5,486 Other investments 810 467 --------------------- Fixed assets 128,135 128,663 Loans and other receivables 4,519 2,419 Defined benefit pension plan surplus 2,128 2,105 --------------------- 134,782 133,187 --------------------- Current assets Inventories 16,562 15,645 Trade and other receivables 44,414 44,282 Current tax receivables 130 157 Cash and cash equivalents 1,521 1,359 --------------------- 62,627 61,443 --------------------- Total assets 197,409 194,630 ===================== Current liabilities Trade and other payables 49,658 48,096 Finance debt 7,352 10,184 Current tax payable 5,293 4,131 Provisions 842 715 --------------------- 63,145 63,126 --------------------- Non-current liabilities Other payables 6,605 4,438 Finance debt 12,212 12,907 Deferred tax liabilities 16,722 16,701 Provisions 8,703 8,884 Defined benefit pension plan and other post-retirement benefit plan deficits 10,111 10,339 --------------------- 54,353 53,269 --------------------- Total liabilities 117,498 116,395 --------------------- Net assets 79,911 78,235 ===================== Equity BP shareholders' equity 78,805 76,892 Minority interest 1,106 1,343 --------------------- 79,911 78,235 --------------------- Movement in BP shareholders' equity: $ million At 31 December 2004 76,892 Adoption of IAS 39 (243) ------ As restated at 1 January 2005 76,649 Profit for the period 6,602 Distribution to shareholders (1,823) Currency translation differences (696) Issue of ordinary share capital for employee share schemes 207 Purchase of shares by ESOP trusts (141) Share based payment accrual 114 Available-for-sale investments (41) Cash flow hedges (67) Repurchase of ordinary share capital (1,999) ------ At 31 March 2005 78,805 ====== Summarized Group Cash Flow Statement First Fourth First Quarter Quarter Quarter 2005 2004 2004 ======================= $ million Operating activities Profit before taxation 9,275 4,660 6,865 Adjustments to reconcile profits before tax to net cash provided by operating activities Exploration expenditure written off 84 151 67 Depreciation, depletion and amortization 2,288 2,530 2,163 Impairment and (gain) loss on sale of businesses and fixed assets (952) 1,632 (1,123) Earnings from jointly controlled entities and associates (600) (488) (419) Dividends received from jointly controlled entities and associates 355 756 209 Interest receivable (65) (124) (55) Interest received 35 199 44 Interest payable 172 143 98 Interest paid (332) (227) (165) Other finance expense 29 126 76 Share-based payments 77 68 58 Net operating charge for pensions and other post-retirement benefits, less contributions (10) (49) (23) Net charge for provisions, less payments (65) (364) (110) (Increase) decrease in inventories (960) 56 254 (Increase) decrease in trade and other receivables (1,573) (4,668) (1,481) Increase (decrease) in trade and other payables 2,749 3,150 1,130 Income taxes paid (1,133) (2,394) (580) --------------------- Net cash provided by operating activities 9,374 5,157 7,008 --------------------- Investing activities Capital expenditure (2,825) (3,805) (2,795) Acquisitions, net of cash acquired - (1,489) - Net investment in jointly controlled entities (15) (134) (1,379) Net investment in associates (99) (190) (433) Proceeds from disposal of businesses and fixed assets 1,327 894 2,836 Proceeds from loan repayments 32 84 3 --------------------- Net cash used in investing activities (1,580) (4,640) (1,768) --------------------- Financing activities Net proceeds from shares issued (repurchased) (1,933) (1,942) (1,138) Proceeds from long-term financing 811 900 628 Repayments of long-term financing (2,192) (921) (836) Net (decrease) increase in short-term debt (2,166) 2,529 (2,228) Dividends paid - BP shareholders (1,823) (1,535) (1,492) - Minority interest (320) (8) (2) --------------------- Net cash used in financing activities (7,623) (977) (5,068) --------------------- Currency translation differences relating to cash and cash equivalents (9) 78 3 --------------------- (Decrease) increase in cash and cash equivalents 162 (382) 175 Cash and cash equivalents at beginning of period 1,359 1,741 2,056 --------------------- Cash and cash equivalents at end of period 1,521 1,359 2,231 ===================== Capital Expenditure and Acquisitions First Fourth First Quarter Quarter Quarter 2005 2004 2004 ======================= $ million By business Exploration and Production UK 176 207 153 Rest of Europe 31 94 48 USA 997 1,060 889 Rest of World(a) 1,097 1,237 2,674 ----------------------- 2,301 2,598 3,764 ----------------------- Refining and Marketing UK 43 186 62 Rest of Europe 67 248 70 USA 190 485 218 Rest of World 31 301 31 ----------------------- 331 1,220 381 ----------------------- Gas, Power and Renewables UK 1 154 1 Rest of Europe 1 12 2 USA 13 42 11 Rest of World 6 117 46 ----------------------- 21 325 60 ----------------------- Other businesses and corporate UK (b) 75 244 31 Rest of Europe (b) 20 880 34 USA (b) 64 527 47 Rest of World 16 74 54 ----------------------- 175 1,725 166 ----------------------- 2,828 5,868 4,371 ======================= By geographical area UK (b) 295 791 247 Rest of Europe (b) 119 1,234 154 USA (b) 1,264 2,114 1,165 Rest of World (a) 1,150 1,729 2,805 ----------------------- 2,828 5,868 4,371 ======================= Included above: Acquisitions and asset exchanges 85 1,536 1,359 ======================= (a) First quarter 2004 included $1,354 million investment in TNK's interest in Slavneft within TNK-BP. (b) Fourth quarter 2004 included $1,355 million for the acquisition of Solvay's interests in BP Solvay Polyethylene Europe and BP Solvay Polyethylene North America. Exchange rates US dollar/sterling average rate for the period 1.89 1.86 1.84 US dollar/sterling period-end rate 1.88 1.92 1.83 US dollar/euro average rate for the period 1.31 1.29 1.25 US dollar/euro period-end rate 1.30 1.36 1.22 Analysis of Profit Before Interest and Tax First Fourth First Quarter Quarter Quarter 2005 2004 2004 ======================= $ million By business Exploration and Production UK 911 998 840 Rest of Europe 1,328 222 163 USA 2,008 1,597 1,692 Rest of World 2,244 1,930 1,555 ----------------------- 6,491 4,747 4,250 ----------------------- Refining and Marketing UK (249) (395) (104) Rest of Europe 835 353 423 USA 1,429 619 827 Rest of World 348 234 327 ----------------------- 2,363 811 1,473 ----------------------- Gas, Power and Renewables UK 116 158 23 Rest of Europe 6 (3) (13) USA 172 102 74 Rest of World 124 266 107 ----------------------- 418 523 191 ----------------------- Other businesses and corporate UK (121) 136 (267) Rest of Europe 370 (600) 146 USA 103 (508) (104) Rest of World 5 (237) 1,416 ----------------------- 357 (1,209) 1,191 ----------------------- 9,629 4,872 7,105 Consolidation adjustment (153) 57 (66) ----------------------- 9,476 4,929 7,039 ======================= By geographical area UK 640 897 492 Rest of Europe 2,539 (28) 719 USA 3,576 1,867 2,423 Rest of World 2,721 2,193 3,405 ----------------------- 9,476 4,929 7,039 ======================= Analysis of Replacement Cost Profit Before Interest and Tax First Fourth First Quarter Quarter Quarter 2005 2004 2004 ======================= $ million By business Exploration and Production UK 911 998 840 Rest of Europe 1,328 222 163 USA 2,003 1,600 1,684 Rest of World 2,244 1,930 1,555 ----------------------- 6,486 4,750 4,242 ----------------------- Refining and Marketing UK (270) (375) (118) Rest of Europe 423 585 319 USA 1,003 847 443 Rest of World 265 280 276 ----------------------- 1,421 1,337 920 ----------------------- Gas, Power and Renewables UK 116 158 23 Rest of Europe 6 (3) (13) USA 163 90 79 Rest of World 119 250 112 ----------------------- 404 495 201 ----------------------- Other businesses and corporate UK (191) 136 (281) Rest of Europe 309 (555) 121 USA 86 (559) (160) Rest of World 3 (238) 1,414 ----------------------- 207 (1,216) 1,094 ----------------------- 8,518 5,366 6,457 Consolidation adjustment (153) 57 (66) ----------------------- 8,365 5,423 6,391 ======================= By geographical area UK 549 917 464 Rest of Europe 2,066 249 590 USA 3,119 2,035 1,980 Rest of World 2,631 2,222 3,357 ----------------------- 8,365 5,423 6,391 ======================= Analysis of Non-operating Items First Fourth First Quarter Quarter Quarter 2005 2004 2004 ======================= $ million By business Exploration and Production UK (290) (15) (1) Rest of Europe 1,027 - - USA (1) (268) (19) Rest of World 44 55 45 ----------------------- 780 (228) 25 ----------------------- Refining and Marketing UK 8 (411) (36) Rest of Europe 1 (25) (37) USA 5 89 (5) Rest of World (41) (18) (82) ----------------------- (27) (365) (160) ----------------------- Gas, Power and Renewables UK 105 - - Rest of Europe - (1) - USA - 1 - Rest of World - 40 - ----------------------- 105 40 - ----------------------- Other businesses and corporate UK (66) (305) (8) Rest of Europe (1) (439) 1 USA (4) (255) (126) Rest of World - (126) 1,390 ----------------------- (71) (1,125) 1,257 ----------------------- Total before taxation 787 (1,678) 1,122 Taxation credit (charge) (252) 518 (346) ----------------------- Total after taxation 535 (1,160) 776 ======================= Depreciation of Fixed Asset Revaluation Adjustment First Fourth First Quarter Quarter Quarter 2005 2004 2004 ======================= $ million Exploration and Production UK 7 9 11 USA 77 81 93 Rest of World 4 3 6 ----------------------- 88 93 110 ----------------------- Refining and Marketing USA 31 31 31 ----------------------- 31 31 31 ----------------------- Total depreciation of revaluation adjustment(a)(b) 119 124 141 ======================= (a) Relates to the revaluation adjustment consequent upon the ARCO acquisition. (b) Excludes impairment of the revaluation adjustment which is included in non-operating items. Net Debt Ratio - Net Debt: Net Debt + Equity First Fourth First Quarter Quarter Quarter 2005 2004 2004 ======================= $ million Gross debt 19,564 23,091 19,937 Cash and cash equivalents 1,521 1,359 2,231 ----------------------- Net debt 18,043 21,732 17,706 ======================= Equity 79,911 78,235 72,493 Net debt ratio 18% 22% 20% ======================= Production and Realizations First Fourth First Quarter Quarter Quarter 2005 2004 2004 ======================= Production Crude oil (mb/d) (net of royalties) UK 288 301 344 Rest of Europe 76 70 73 USA 560 519 564 Rest of World 1,481 1,506 1,361 --------------------- Total crude oil production 2,405 2,396 2,342 ===================== Natural gas liquids (mb/d) (net of royalties) UK 17 19 20 Rest of Europe 5 4 5 USA 135 142 137 Rest of World 31 32 29 --------------------- Total natural gas liquids production 188 197 191 ===================== Liquids (a) (mb/d) (net of royalties) UK 305 320 364 Rest of Europe 81 74 78 USA 695 661 701 Rest of World 1,512 1,538 1,390 --------------------- Total liquids production 2,593 2,593 2,533 ===================== Natural gas (mmcf/d) (net of royalties) UK 1,242 1,227 1,355 Rest of Europe 121 113 142 USA 2,648 2,651 2,869 Rest of World 4,734 4,723 4,234 --------------------- Total natural gas production 8,745 8,714 8,600 ===================== Average realizations Crude oil ($/bbl) UK 45.54 42.01 29.36 USA 43.20 42.07 32.69 Rest of World 41.49 38.29 30.80 BP Average 43.37 41.01 31.30 ===================== Natural gas liquids ($/bbl) UK 29.82 40.23 25.70 USA 26.98 29.31 22.25 Rest of World 31.24 33.10 24.61 BP Average 28.14 31.20 23.14 ===================== Liquids (a) ($/bbl) UK 44.68 41.91 29.16 USA 40.56 39.73 31.08 Rest of World 40.83 37.94 30.42 BP Average 41.74 39.88 30.48 ===================== Natural gas ($/mcf) UK 5.58 5.16 4.70 USA 5.31 5.72 4.72 Rest of World 3.10 3.00 2.67 BP Average 4.26 4.28 3.79 ===================== (a) Crude oil and natural gas liquids. Notes 1. Transition to International Financial Reporting Standards For all periods up to and including the year ended 31 December 2004, BP prepared its financial statements in accordance with UK generally accepted accounting practice (UK GAAP). From 1 January 2005 BP is required to prepare consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as endorsed by the European Commission ('EC'). Consequently, financial information for interim quarters of 2005 must be prepared on the basis of IFRS. The general principle that should be applied on first-time adoption of IFRS is that standards in force at the first reporting date (that is, for BP, 31 December 2005) should be applied retrospectively. However, IFRS 1 'First-time Adoption of International Financial Reporting Standards' contains a number of exemptions which companies are permitted to apply. BP has elected: - not to present comparative information in accordance with IAS 32 'Financial Instruments: Disclosure and Presentation' and IAS 39 'Financial Instruments: Recognition and Measurement'. - not to restate its financial information for acquisitions occurring before 1 January 2003. - to deem cumulative translation differences to be zero at 1 January 2003. - to recognize all actuarial gains and losses on pensions and other post-retirement benefits directly in shareholders' equity at 1 January 2003. This is consistent with the group's adoption of FRS 17 'Retirement Benefits' in 2004. - to apply IFRS 2 'Share-based Payment' retrospectively to all share- based payments. As a result of the above exemptions certain changes apply from 1 January 2003 (BP's Date of Transition) followed by further changes (due to IAS 32 and IAS 39) to apply from 1 January 2005. The quarterly information for 2005 and the restatement of financial information for the year ended 31 December 2004 and the interim quarters of 2004 have been prepared on the basis of all International Financial Reporting Standards (IFRSs) (with the exception of IAS 32 and IAS 39 (as amended) for the 2004 information) and Standing Interpretations Committee (SIC) and International Financial Reporting Interpretations Committee (IFRIC) interpretations issued by the International Accounting Standards Board (IASB) expected to be in effect for the year ending 31 December 2005. It is possible that there will be changes to these standards and interpretations before the end of 2005, which might require further adjustments to this information before it is included in the 2005 Annual Report and Accounts. In addition, BP has decided to early adopt IFRS 5 'Non-current Assets Held for Sale and Discontinued Operations', IFRS 6 'Exploration for and Evaluation of Mineral Resources', the amendment to IAS 19 'Amendment to international accounting standard IAS 19 Employee Benefits: Actuarial Gains and Losses, Group Plans and Disclosures' and IFRIC 4 'Determining whether an Arrangement contains a Lease'. In the restatement information for the year ended 31 December 2004 and the interim quarters of 2004 financial assets and financial liabilities are accounted for on the basis of UK GAAP. Under UK GAAP, all derivatives used for trading purposes are recognized on the balance sheet at fair value. However, derivative financial instruments used for hedging purposes are recognized by applying either the accrual method or the deferral method. Under the accrual method, amounts payable or receivable in respect of derivatives are recognized rateably in earnings over the period of the contracts. Changes in the derivative's fair value are not recognized. On the deferral method, gains and losses from derivatives are deferred and recognized in earnings or as adjustments to carrying amounts as the underlying hedged transaction matures or occurs. From 1 January 2005 for IFRS all financial assets and financial liabilities have to be recognized initially at fair value. In subsequent periods the measurement of these financial instruments depends on their classification into one of the following measurement categories: i) financial assets or financial liabilities at-fair-value- through-profit-and-loss (such as those used for trading purposes, and all derivatives which do not qualify for hedge accounting); ii) loans and receivables; iii) available-for-sale financial assets (including certain investments held for the long term) and iv) other liabilities. The effect of adopting IAS 39 at 1 January 2005 is shown as a movement in BP's shareholders equity for 2005. Notes 1. Transition to International Financial Reporting Standards The principal differences for the Group between reporting on the basis of UK GAAP and IFRS are as follows: - ceasing to amortize goodwill. - setting up deferred taxation on: - acquisitions - inventory valuation differences - unremitted earnings of subsidiaries, associates and jointly controlled entities - expensing a greater proportion of major maintenance costs. - no longer recognizing dividends proposed but not declared as a liability at the balance sheet date. - recognizing an expense for the fair value of employee share option schemes rather than the intrinsic value. - recording asset swaps on the basis of fair value. - embedded derivatives measured at fair value. BP has produced an explanatory note setting out its accounting policies under IFRS, the major differences between UK GAAP and IFRS for BP, and reconciliations of UK GAAP to IFRS for its 2003 and 2004 Income and Cash Flow Statements, its Balance Sheets at 1 January 2003, 31 December 2003, 31 December 2004 and 1 January 2005. This information can be found at the Investor Centre www.bp.com. In addition, the reconciliations for 2004 interim periods included in this report are shown below. Fourth First Quarter Quarter 2004 2004 -------------------- $ million Profit for the period under UK GAAP 2,610 4,862 Adjustments Goodwill amortization 411 359 Major maintenance expenditure (94) (32) Share-based payments 85 (16) Asset swaps 36 2 Recycling forex on disposal - 78 Deferred tax (47) (313) Other 68 6 -------------------- Profit for the period under IFRS 3,069 4,946 ==================== 31 March 2004 -------- $ million BP shareholders' equity under UK GAAP 72,829 Adjustments Goodwill amortization 1,789 Major maintenance expenditure (582) Share-based payments 215 Asset swaps (140) Deferred tax (3,890) Dividend accrual 1,485 Other (394) -------- BP shareholders' equity under IFRS 71,312 ========= Notes 2. Resegmentation With effect from 1 January 2005 there have been the following changes to the business segments reported by the group. (a) Our petrochemicals operations have been divided between the Refining and Marketing segment and Other businesses and corporate. The Aromatics and Acetyls businesses and the petrochemicals assets that are integrated with our Gelsenkirchen refinery in Germany are now part of Refining and Marketing. The Olefins and Derivatives business is now reported within Other businesses and corporate. This segment has also been restated to include the legacy historical results of other petrochemicals assets that have been divested during 2004. We have also combined our Grangemouth and Lavera refineries into the Olefins and Derivatives business to maintain current operating synergies. These changes have been made in connection with the establishment of our Olefins and Derivatives business as a stand-alone entity within BP, with a view towards its divestment at a later date. (b) A small US operation, the Hobbs fractionator, which supplies petrochemicals feedstock, has been transferred from Gas, Power and Renewables to Olefins and Derivatives. (c) The Mardi Gras pipeline system in the Gulf of Mexico has been transferred from Exploration and Production to Refining and Marketing. Comparative financial and operation information is shown after resegmentation and the adoption of International Financial Reporting Standards. Further information regarding these adjustments can be found at the BP investor centre www.bp.com. 3. Sales and other operating revenues First Fourth First Quarter Quarter Quarter 2005 2004 2004 ======================= $ million By business Exploration and Production 10,186 9,830 8,186 Refining and Marketing 49,869 49,465 44,096 Gas, Power and Renewables 23,667 23,468 20,975 Other businesses and corporate 5,515 5,690 3,819 ------------------------ 89,237 88,453 77,076 Less: sales between businesses 10,239 10,723 8,615 ------------------------ 78,998 77,730 68,461 ======================== By geographical area UK 26,911 25,475 17,862 Rest of Europe 17,009 15,914 12,428 USA 34,282 33,652 31,596 Rest of World 18,706 19,654 15,822 ------------------------ 96,908 94,695 77,708 Less: sales between areas 17,910 16,965 9,247 ------------------------ 78,998 77,730 68,461 ======================== Notes 4. Operating profits are after charging: First Fourth First Quarter Quarter Quarter 2005 2004 2004 ======================= $ million Exploration expense UK 5 17 2 Rest of Europe 1 10 2 USA 103 143 97 Rest of World 51 88 35 ----------------------- 160 258 136 ======================= Production and similar taxes (a) UK 114 112 126 Overseas 535 535 399 ----------------------- 649 647 525 ======================= (a) Production taxes are charged against Exploration and Production's operating profit. 5. Interest payable Group interest payable 191 188 148 Capitalized (76) (45) (50) ----------------------- 115 143 98 Early redemption of finance leases 57 - - ----------------------- 172 143 98 ======================= 6. Other finance expense Interest on pension and other post-retirement benefit plan liabilities 514 519 500 Expected return on pension and other post-retirement benefit plan assets (547) (501) (498) ----------------------- Interest net of expected return on plan assets (33) 18 2 Unwinding of discount on provisions 45 50 48 Unwinding of discount on deferred consideration for acquisition of investment in TNK-BP 17 17 26 Change in discount rate for provisions - 41 - ----------------------- 29 126 76 ======================= Notes 7. Dividends paid First Fourth First Quarter Quarter Quarter 2005 2004 2004 ======================= Dividends per ordinary share cents 8.50 7.10 6.75 pence 4.522 3.910 3.674 Dividends per ADS (cents) 51.0 42.6 40.5 ======================= 8. Analysis of changes in net debt First Fourth First Quarter Quarter Quarter 2005 2004 2004 ======================= $ million Opening balance Finance debt 23,091 20,445 22,325 Less: Cash and cash equivalents 1,359 1,741 2,056 ----------------------- Opening net debt 21,732 18,704 20,269 ----------------------- Closing balance Finance debt 19,564 23,091 19,937 Less: Cash and cash equivalents 1,521 1,359 2,231 ----------------------- Closing net debt 18,043 21,732 17,706 ----------------------- Decrease (increase) in net debt 3,689 (3,028) 2,563 ======================= Movement in cash and cash equivalents (excluding exchange adjustments) 171 (460) 172 Net cash outflow (inflow) from financing (excluding share capital) 3,547 (2,508) 2,436 Adoption of IAS 39 (147) - - Fair value hedge adjustment 98 - - Other movements 49 10 38 ----------------------- Movement in net debt before exchange effects 3,718 (2,958) 2,646 Exchange adjustments (29) (70) (83) ----------------------- Decrease (increase) in net debt 3,689 (3,028) 2,563 ======================= Notes 9. TNK-BP Operational and Financial Information First Fourth First Quarter Quarter Quarter 2005 2004 2004 ======================= Production (Net of royalties) (BP share) Crude oil (mb/d) 875 884 766 Natural gas (mmcf/d) 527 515 382 Total hydrocarbons (mboe/d) (a) 966 972 832 ======================= $ million Income statement Profit before interest and tax 615 659 374 Interest expense + (29) (22) (30) Taxation (167) (184) (108) Minority interest (8) (17) (10) ------------------------ Net Income 411 436 226 ======================= + Excludes unwinding of discount on deferred consideration 17 17 26 ======================= Cash Flow Additional investment in TNK-BP joint venture - - (1,416) Dividends related to period prior to acquisition - - 143 ------------------------ Net investment in TNK-BP joint venture - - (1,273) ======================= Dividends received 250 610 119 ======================= First Fourth First Quarter Quarter Quarter 2005 2004 2004 ======================= Average oil marker prices ($/bbl) Urals (NWE - cif) 42.54 37.75 29.01 Urals (Med - cif) 43.21 38.82 28.98 Domestic oil 19.14 22.30 17.08 ======================= Balance sheet 31 March 31 December 2005 2004 ======================= Investments in jointly controlled entities 8,455 8,294 ======================= Deferred consideration Due within one year 1,236 1,227 Due after more than one year 1,202 1,194 ----------------------- 2,438 2,421 ======================= (a) Natural gas is converted to oil equivalent at 5.8 billion cubic feet = 1 million barrels. TNK-BP operational and financial information has been estimated and includes adjustments to net income in respect of prior periods amounting to a charge of $8 million in 1Q 2005 and a credit of $23 million in 4Q 2004. Recently, various TNK-BP group companies have received tax notifications in respect of 2001. Discussions between TNK-BP and the Russian authorities are ongoing. In the agreements executed at the formation of TNK-BP, BP has extensive indemnities from our co-joint venturers in respect of historic tax liabilities. Notes 10. Olefins and Derivatives First Fourth First Quarter Quarter Quarter 2005 2004 2004 ======================= Refinery throughputs (mb/d) UK 193 202 197 Rest of Europe 199 180 174 ----------------------- Total throughput 392 382 371 ----------------------- Petrochemicals production (kte) UK 461 588 537 Rest of Europe 2,132 2,033 1,931 USA 1,301 1,425 1,360 Rest of World 104 111 92 ----------------------- Total production 3,998 4,157 3,920 ----------------------- $ million Income Statement Profit before interest and tax 506 (957) (8) Inventory holding (gains) losses (150) (7) (97) ----------------------- Replacement cost profit before interest and tax 356 (964) (105) ======================= By geographical area: UK (30) (146) (105) Rest of Europe 302 (358) 127 USA 89 (304) (135) Rest of World (5) (156) 8 ----------------------- 356 (964) (105) ======================= Replacement cost result includes: Impairment and gain (loss) on sale of businesses and fixed assets (24) (1,063) (134) Restructuring, integration and rationalization costs - (7) - ----------------------- Total non-operating items (24) (1,070) (134) ======================= Other Financial information Capital expenditure and acquisitions 144 1,609 155 ======================= Olefins and Derivatives includes the Olefins and Derivatives businesses previously reported in the former Petrochemicals segment, the Grangemouth and Lavera refineries previously reported within the Refining and Marketing segment, the Hobbs fractionator previously included in Gas, Power and Renewables and costs associated with the former Petrochemicals segment. Notes 11. Equity-accounted entities The group's profit for the period includes the following in respect of equity-accounted entities. RC Profit Inventory Profit before holding before interest (gains) interest and tax losses and tax --------------------------------------- $ million First Quarter 2005 Exploration and Production 841 - 841 Refining and Marketing 76 (4) 72 Gas, Power and Renewables 5 - 5 Other businesses and corporate (1) - (1) --------------------------------------- 921 (4) 917 ======================================= Fourth Quarter 2004 Exploration and Production 889 - 889 Refining and Marketing 85 (7) 78 Gas, Power and Renewables 7 - 7 Other businesses and corporate (15) (2) (17) --------------------------------------- 966 (9) 957 ======================================= First Quarter 2004 Exploration and Production 563 - 563 Refining and Marketing 98 (6) 92 Gas, Power and Renewables - - - Other businesses and corporate 17 (9) 8 --------------------------------------- 678 (15) 663 ======================================= Profit Minority for the Interest Tax interest period ---------------------------------------- $ million First Quarter 2005 Exploration and Production (52) (227) (8) 554 Refining and Marketing (5) (18) - 49 Gas, Power and Renewables (2) (2) - 1 Other businesses and corporate (3) - - (4) --------------------------------------- (62) (247) (8) 600 ======================================= Fourth Quarter 2004 Exploration and Production (48) (376) (17) 448 Refining and Marketing (3) (25) - 50 Gas, Power and Renewables (2) (1) - 4 Other businesses and corporate (1) 4 - (14) --------------------------------------- (54) (398) (17) 488 ======================================= First Quarter 2004 Exploration and Production (50) (158) (10) 345 Refining and Marketing (4) (19) - 69 Gas, Power and Renewables (2) - - (2) Other businesses and corporate (1) - - 7 --------------------------------------- (57) (177) (10) 419 ======================================= 12. Second quarter results BP's second quarter results will be announced on 26 July 2005. Notes 13. Statutory accounts The financial information shown in this publication is unaudited and does not constitute statutory accounts. The 2004 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 United States -------------- -------------- Press Office Roddy Kennedy Ronnie Chappell +44 (0)20 7496 4624 +1 281 366 5174 Investor Relations Fergus MacLeod Rachael MacLean +44 (0)20 7496 4717 +1 212 451 8072 http://www.bp.com/investors This information is provided by RNS The company news service from the London Stock Exchange

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