2nd Quarter Results Pt 2 of 3
BP PLC
29 July 2003
BP p.l.c. and Subsidiaries
Summarized Group Results
Second First Second
Quarter Quarter Quarter First Half
2002 2003 2003 2003 2002
======================= ==============
$ million $ million
2,458 4,326 3,153 Exploration and Production 7,479 4,386
114 194 103 Gas, Power and Renewables 297 225
603 631 889 Refining and Marketing 1,520 671
203 139 313 Petrochemicals 452 279
(128) (165) (134) Other businesses and corporate (299) (253)
----------------------- --------------
Total replacement cost
3,250 5,125 4,324 operating profit 9,449 5,308
Profit (loss) on sale of
fixed assets and businesses or
376 394 280 termination of operations (Note 4) 674 267
----------------------- --------------
Replacement cost profit before
3,626 5,519 4,604 interest and tax 10,123 5,575
525 799 (951) Stock holding gains (losses)(Note 5) (152) 998
----------------------- --------------
Historical cost profit before
4,151 6,318 3,653 interest and tax 9,971 6,573
314 220 191 Interest expense (Note 6) 411 647
----------------------- --------------
3,837 6,098 3,462 Profit before taxation 9,560 5,926
1,751 1,805 1,768 Taxation (Note 7) 3,573 2,504
----------------------- --------------
2,086 4,293 1,694 Profit after taxation 5,987 3,422
28 26 60 Minority shareholders' interest 86 68
----------------------- --------------
2,058 4,267 1,634 Profit for the period 5,901 3,354
----------------------- --------------
1,347 1,386 1,434 Distribution to shareholders 2,820 2,637
======================= ==============
Earnings per ordinary share - cents
9.18 19.11 7.41 Basic 26.52 14.96
9.13 19.05 7.39 Diluted 26.44 14.88
======================= ==============
Replacement Cost Results
Historical cost profit
2,058 4,267 1,634 for the period 5,901 3,354
Stock holding (gains) losses
(531) (799) 951 net of MSI 152 (973)
----------------------- --------------
Replacement cost profit
1,527 3,468 2,585 for the period 6,053 2,381
(216) (340) (131) Exceptional items, net of tax (471) (146)
----------------------- --------------
Replacement cost profit before
1,311 3,128 2,454 exceptional items 5,582 2,235
----------------------- --------------
Earnings per ordinary share - cents
On replacement cost profit before
5.85 14.01 11.08 exceptional items 25.09 9.97
======================= =============
Summarized Group Balance Sheet
30 June 31 December
2003 2002
--------------------------
$ million
Fixed assets
Intangible assets 13,896 15,566
Tangible assets 89,285 87,682
Investments 10,684 10,811
---------------------
113,865 114,059
---------------------
Current assets
Stocks 9,759 10,181
Debtors 36,892 33,150
Investments 329 215
Cash at bank and in hand 2,115 1,520
---------------------
49,095 45,066
Creditors - amounts falling due within one year
Finance debt 5,885 10,086
Other creditors 39,337 36,215
---------------------
Net current assets (liabilities) 3,873 (1,235)
---------------------
Total assets less current liabilities 117,738 112,824
Creditors - amounts falling due
after more than one year
Finance debt 12,709 11,922
Other creditors 3,509 3,455
Provisions for liabilities and charges
Deferred taxation 14,322 13,514
Other provisions 14,117 13,886
---------------------
Net assets 73,081 70,047
Minority shareholders' interest - equity 1,016 638
---------------------
BP shareholders' interest 72,065 69,409
=====================
Movement in BP shareholders' interest: $ million
At 31 December 2002 69,409
Profit for the period 5,901
Distribution to shareholders (2,820)
Currency translation differences (net of tax) 1,493
Issue of ordinary share capital for employee share schemes 81
Repurchase of ordinary share capital (1,999)
------
At 30 June 2003 72,065
======
Summarized Group Cash Flow Statement
Second First Second
Quarter Quarter Quarter First Half
2002 2003 2003 2003 2002
======================= ============
$ million $ million
Net cash inflow from
5,133 5,961 7,346 operating activities (a) 13,307 8,769
----------------------- ---------------
16 13 28 Dividends from joint ventures 41 99
----------------------- ---------------
Dividends from
154 55 177 associated undertakings 232 207
----------------------- ---------------
Servicing of finance and returns
on investments
57 31 52 Interest received 83 105
(342) (207) (446) Interest paid (653) (651)
58 6 42 Dividends received 48 60
Dividends paid to
(3) (2) (11) minority shareholders (13) (16)
----------------------- ---------------
Net cash outflow from servicing of
(230) (172) (363) finance and returns on investments (535) (502)
----------------------- ---------------
Taxation
(167) (312) (280) UK corporation tax (592) (354)
(760) (320) (1,573) Overseas tax (1,893) (1,018)
----------------------- ---------------
(927) (632) (1,853) Tax paid (2,485) (1,372)
----------------------- ---------------
Capital expenditure and
financial investment
(2,793) (2,877) (2,760) Payments for fixed assets (5,637) (5,592)
Proceeds from the sale
939 2,317 1,652 of fixed assets 3,969 1,256
----------------------- ---------------
Net cash outflow for
capital expenditure and
(1,854) (560) (1,108) financial investment (1,668) (4,336)
----------------------- --------------
Acquisitions and disposals
Investments in associated
(488) (186) (331) undertakings (517) (631)
(139) - (150) Acquisitions, net of cash acquired (150) (1,689)
(68) (14) (2) Net investment in joint ventures (16) (114)
Proceeds from the sale
1,584 160 19 of businesses 179 1,615
----------------------- ---------------
Net cash (outflow) inflow for
889 (40) (464) acquisitions and disposals (504) (819)
----------------------- ---------------
(1,290) (1,397) (1,386) Equity dividends paid (2,783) (2,578)
----------------------- ---------------
1,891 3,228 2,377 Net cash inflow (outflow) 5,605 (532)
======================= ===============
2,017 3,593 1,355 Financing (b) 4,948 (266)
33 13 93 Management of liquid resources 106 (132)
(159) (378) 929 Increase (decrease) in cash 551 (134)
----------------------- ---------------
1,891 3,228 2,377 5,605 (532)
======================= ===============
Analysis of Cash Flow
Second First Second
Quarter Quarter Quarter First Half
2002 2003 2003 2003 2002
======================= ==============
$ million $ million
(a) Reconciliation of historical
cost profit before interest
and tax to net cash inflow
from operating activities
Historical cost profit before
4,151 6,318 3,653 interest and tax 9,971 6,573
2,227 2,709 2,653 Depreciation and amounts provided 5,362 4,380
Exploration expenditure
147 50 43 written off 93 206
Share of profits of joint ventures
(288) (304) (207) and associated undertakings (511) (544)
(118) (48) (100) Interest and other income (148) (181)
(Profit) loss on sale of fixed
(374) (394) (280) assets and businesses (674) (265)
325 202 204 Charge for provisions 406 494
(373) (228) (316) Utilization of provisions (544) (611)
(807) 376 193 Decrease (increase) in stocks 569 (1,303)
(1,614) (6,935) 3,252 (Increase) decrease in debtors (3,683) (2,024)
1,857 4,215 (1,749) Increase (decrease) in creditors 2,466 2,044
----------------------- ---------------
Net cash inflow from
5,133 5,961 7,346 operating activities 13,307 8,769
======================= ===============
(b) Financing
(752) (1,015) (208) Long-term borrowing (1,223) (2,498)
663 403 607 Repayments of long-term borrowing 1,010 897
(753) (626) (418) Short-term borrowing (1,044) (4,252)
Repayments of short-term
2,891 3,899 388 borrowing 4,287 5,710
----------------------- ---------------
2,049 2,661 369 3,030 (143)
(32) (67) (14) Issue of ordinary share capital (81) (123)
Repurchase of ordinary
- 999 1,000 share capital 1,999 -
----------------------- ---------------
Net cash outflow
2,017 3,593 1,355 (inflow)from financing 4,948 (266)
======================= ===============
Capital Expenditure and Acquisitions
Second First Second
Quarter Quarter Quarter First Half
2002 2003 2003 2003 2002
======================= =============
$ million $ million
By business
Exploration and Production
247 196 220 UK 416 508
57 51 73 Rest of Europe 124 128
1,077 966 1,009 USA 1,975 2,244
1,192 924 1,160 Rest of World(a) 2,084 2,006
----------------------- --------------
2,573 2,137 2,462 4,599 4,886
----------------------- --------------
Gas, Power and Renewables
5 8 24 UK 32 21
87 15 9 Rest of Europe(b) 24 91
32 38 48 USA 86 48
8 7 17 Rest of World 24 18
----------------------- --------------
132 68 98 166 178
----------------------- --------------
Refining and Marketing
100 73 66 UK 139 176
2,556 104 64 Rest of Europe(c) 168 5,288
260 336 228 USA 564 563
49 24 27 Rest of World 51 75
----------------------- --------------
2,965 537 385 922 6,102
----------------------- --------------
Petrochemicals
17 - 30 UK 30 25
60 31 21 Rest of Europe 52 105
55 46 95 USA 141 97
38 19 52 Rest of World 71 131
----------------------- --------------
170 96 198 294 358
----------------------- --------------
267 36 183 Other businesses and corporate(d) 219 319
----------------------- --------------
6,107 2,874 3,326 6,200 11,843
======================= ==============
By geographical area
400 301 361 UK 662 809
2,953 202 167 Rest of Europe 369 5,805
1,467 1,396 1,542 USA 2,938 2,998
1,287 975 1,256 Rest of World 2,231 2,231
----------------------- --------------
6,107 2,874 3,326 6,200 11,843
======================= ==============
(a) 2Q and first half 2002 included the acquisition of an additional
interest in Sidanco.
(b) 2Q and first half 2002 included the acquisition of a 5% stake in Enagas.
(c) 1Q 2002 and 2Q 2002 included the acquisition of 51% and 49% of Veba
respectively.
(d) 2Q and first half 2002 included the acquisition of the minority interest
in Veba's upstream oil and gas assets.
US dollar/Sterling exchange rates
1.46 1.60 1.62 Average rate for the period 1.61 1.44
1.52 1.57 1.65 Period-end rate 1.65 1.52
======================= =============
Analysis of Replacement Cost Operating Profit
Second First Second
Quarter Quarter Quarter First Half
2002 2003 2003 2003 2002
======================= =============
$ million $ million
By business
Exploration and Production
649 1,134 473 UK 1,607 1,376
172 193 141 Rest of Europe 334 324
771 1,805 1,441 USA 3,246 1,093
866 1,194 1,098 Rest of World 2,292 1,593
----------------------- --------------
2,458 4,326 3,153 7,479 4,386
----------------------- --------------
Gas, Power and Renewables
1 3 18 UK 21 3
35 (9) (5) Rest of Europe (14) 82
13 36 85 USA 121 (12)
65 164 5 Rest of World 169 152
----------------------- -------------
114 194 103 297 225
----------------------- -------------
Refining and Marketing
(61) 26 (31) UK (5) (185)
249 337 423 Rest of Europe 760 388
279 97 323 USA 420 200
136 171 174 Rest of World 345 268
----------------------- -------------
603 631 889 1,520 671
----------------------- -------------
Petrochemicals
(10) (34) 25 UK (9) (41)
64 88 199 Rest of Europe 287 111
84 42 65 USA 107 107
65 43 24 Rest of World 67 102
----------------------- -------------
203 139 313 452 279
----------------------- -------------
(128) (165) (134) Other businesses and corporate (299) (253)
----------------------- --------------
3,250 5,125 4,324 9,449 5,308
======================= ==============
By geographical area
504 1,053 363 UK 1,416 1,034
526 602 756 Rest of Europe 1,358 912
1,103 1,882 1,863 USA 3,745 1,261
1,117 1,588 1,342 Rest of World 2,930 2,101
----------------------- --------------
3,250 5,125 4,324 9,449 5,308
======================= ==============
Included above
89 117 101 Share of profits of joint ventures 218 159
Share of profits of
196 180 110 associated undertakings 290 384
----------------------- --------------
285 297 211 508 543
======================= ==============
Notes
1. Turnover
Second First Second
Quarter Quarter Quarter First Half
2002 2003 2003 2003 2002
======================= ==============
$ million $ million
By business
6,539 9,068 7,433 Exploration and Production 16,501 12,177
8,235 17,998 14,875 Gas, Power and Renewables 32,873 16,003
31,870 41,435 36,949 Refining and Marketing 78,384 56,759
3,584 3,938 4,003 Petrochemicals 7,941 6,226
Other businesses
136 111 129 and corporate 240 271
----------------------- ---------------
50,364 72,550 63,389 135,939 91,436
Less: sales between
6,709 8,762 7,082 businesses 15,844 11,491
----------------------- ---------------
43,655 63,788 56,307 Group excluding JVs 120,095 79,945
404 398 364 Sales of joint ventures 762 683
----------------------- ---------------
44,059 64,186 56,671 120,857 80,628
======================= ===============
By geographical area
Group excluding JVs
12,509 15,427 13,456 UK 28,883 23,504
12,219 13,022 12,206 Rest of Europe 25,228 21,338
19,663 31,098 25,984 USA 57,082 34,928
8,035 13,736 12,102 Rest of World 25,838 15,019
----------------------- ---------------
52,426 73,283 63,748 137,031 94,789
Less: sales between
8,771 9,495 7,441 areas 16,936 14,844
----------------------- ---------------
43,655 63,788 56,307 120,095 79,945
======================= ===============
2. 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
3. Operating profits are after charging:
Second First Second
Quarter Quarter Quarter First Half
2002 2003 2003 2003 2002
======================= =============
$ million $ million
Exploration expense
4 3 2 UK 5 10
13 4 5 Rest of Europe 9 36
133 37 47 USA 84 175
72 68 47 Rest of World 115 125
----------------------- --------------
222 112 101 213 346
======================= ==============
Production taxes (a)
90 133 58 UK petroleum revenue tax 191 153
225 371 324 Overseas production taxes 695 409
----------------------- --------------
315 504 382 886 562
======================= ==============
(a) Production taxes are charged against Exploration and Production's
operating profit and are not included in the charge for taxation in
Note 7.
4. Analysis of exceptional items
427 433 333 Exploration and Production 766 432
(1) - 6 Gas, Power and Renewables 6 (1)
31 (52) (49) Refining and Marketing (101) (14)
(85) 7 2 Petrochemicals 9 (145)
4 6 (12) Other businesses and corporate (6) (5)
----------------------- --------------
Profit (loss) on sale of fixed
assets and businesses or
376 394 280 termination of operations 674 267
(160) (54) (149) Taxation charge (203) (121)
----------------------- --------------
Exceptional items
216 340 131 after taxation 471 146
======================= ==============
Notes
5. Stock holding gains (losses)
Second First Second
Quarter Quarter Quarter First Half
2002 2003 2003 2003 2002
======================= =============
$ million $ million
(1) 6 (3) Exploration and Production 3 2
4 27 (72) Gas, Power and Renewables (45) 8
444 620 (773) Refining and Marketing (153) 939
78 146 (103) Petrochemicals 43 49
---------------------- --------------
525 799 (951) (152) 998
(6) - - Minority shareholders' interest - 25
---------------------- --------------
531 799 (951) (152) 973
====================== ==============
6. Interest expense
261 187 163 Group interest payable 350 528
(25) (34) (43) Capitalized (77) (40)
----------------------- --------------
236 153 120 273 488
15 13 17 Joint ventures 30 29
21 10 12 Associated undertakings 22 45
Unwinding of discount
42 44 42 on provisions 86 85
----------------------- --------------
314 220 191 411 647
======================= ==============
7. Charge for taxation
1,040 1,581 1,406 Current 2,987 1,573
711 224 362 Deferred(a) 586 931
----------------------- --------------
1,751 1,805 1,768 3,573 2,504
======================= ==============
646 485 413 UK(a) 898 835
1,105 1,320 1,355 Overseas 2,675 1,669
----------------------- --------------
1,751 1,805 1,768 3,573 2,504
======================= ==============
(a) Includes the adjustment
to the North Sea deferred
tax balance for the
supplementary
355 - - UK corporation tax of 10% - 355
----------------------- --------------
Notes
8. Analysis of changes in net debt
Second First Second
Quarter Quarter Quarter First Half
2002 2003 2003 2003 2002
======================= =============
$ million $ million
Opening balance
24,531 22,008 19,042 Finance debt 22,008 21,417
1,379 1,520 1,151 Less: Cash 1,520 1,358
286 215 228 Current asset investments 215 450
----------------------- ---------------
22,866 20,273 17,663 Opening net debt 20,273 19,609
----------------------- ---------------
Closing balance
21,409 19,042 18,594 Finance debt 18,594 21,409
1,284 1,151 2,115 Less: Cash 2,115 1,284
285 228 329 Current asset investments 329 285
----------------------- ---------------
19,840 17,663 16,150 Closing net debt 16,150 19,840
----------------------- ---------------
Decrease (increase)
3,026 2,610 1,513 in net debt 4,123 (231)
======================= ===============
Movement in cash/
(159) (378) 929 bank overdrafts 551 (134)
Increase (decrease) in
33 13 93 current asset investments 106 (132)
Net cash outflow (inflow)
from financing(excluding
2,049 2,661 369 share capital) 3,030 (143)
Partnership interests
1,135 - - exchanged for BP loan notes - 1,135
Exchange of Exchangeable Bonds
for Lukoil American
- 420 - Depositary Shares 420 -
19 64 106 Other movements 170 44
- - - Debt acquired - (999)
----------------------- --------------
Movement in net debt before
3,077 2,780 1,497 exchange effects 4,277 (229)
(51) (170) 16 Exchange adjustments (154) (2)
----------------------- --------------
Decrease (increase)
3,026 2,610 1,513 in net debt 4,123 (231)
======================= ==============
Notes
9. Consolidated statement of cash flows presented on a US GAAP format
Second First Second
Quarter Quarter Quarter First Half
2002 2003 2003 2003 2002
======================= =============
$ million $ million
Operating activities
2,086 4,293 1,694 Profit after taxation 5,987 3,422
Adjustments to reconcile
profits after tax to net
cash provided by
operating activities
Depreciation and
2,227 2,709 2,653 amounts provided 5,362 4,380
Exploration expenditure
147 50 43 written off 93 206
Share of (profit) loss of
joint ventures and associates
(23) (148) 30 less dividends received (118) (40)
(Profit) loss on sale
of businesses and
(374) (394) (280) fixed assets (674) (265)
Working capital movement
(652) (1,475) 1,107 (see analysis below) (368) (1,321)
711 224 362 Deferred taxation 586 931
52 2 (220) Other (218) (56)
----------------------- ---------------
Net cash provided by
4,174 5,261 5,389 operating activities 10,650 7,257
----------------------- ---------------
Investing activities
(2,818) (2,911) (2,803) Capital expenditures (5,714) (5,632)
Acquisitions, net of
(139) - (150) cash acquired (150) (1,689)
Investment in
(488) (186) (331) associated undertakings (517) (631)
Net investment in
(68) (14) (2) joint ventures (16) (114)
Proceeds from
2,523 2,477 1,671 disposal of assets 4,148 2,871
----------------------- --------------
Net cash used in
(990) (634) (1,615) investing activities (2,249) (5,195)
----------------------- --------------
Notes
9. Consolidated statement of cash flows presented on a US GAAP format
(continued)
Second First Second
Quarter Quarter Quarter First Half
2002 2003 2003 2003 2002
======================= =============
$ million $ million
Financing activities
Net proceeds from shares
32 (932) (986) issued (repurchased) (1,918) 123
Proceeds from
752 1,015 208 long-term financing 1,223 2,498
Repayments of
(663) (403) (607) long-term financing (1,010) (897)
Net (decrease) increase
(2,138) (3,273) 30 in short-term debt (3,243) (1,458)
Dividends paid
(1,290) (1,397) (1,386) - BP shareholders (2,783) (2,578)
(3) (2) (11) - Minority shareholders (13) (16)
----------------------- -------------
Net cash used in
(3,310) (4,992) (2,752) financing activities (7,744) (2,328)
----------------------- --------------
Currency translation
differences relating to
30 9 43 cash and cash equivalents 52 27
----------------------- --------------
Increase (decrease) in
(96) (356) 1,065 cash and cash equivalents 709 (239)
Cash and cash equivalents
1,665 1,735 1,379 at beginning of period 1,735 1,808
----------------------- --------------
Cash and cash equivalents
1,569 1,379 2,444 at end of period 2,444 1,569
----------------------- --------------
Analysis of working
capital movement
Decrease (increase)
(807) 376 193 in stocks 569 (1,303)
(Increase) decrease
(1,691) (6,946) 3,234 in debtors (3,712) (2,134)
Increase (decrease)
1,846 5,095 (2,320) in creditors 2,775 2,116
----------------------- --------------
Total working
(652) (1,475) 1,107 capital movement (368) (1,321)
======================= ==============
Notes
10. Ordinary shares
Second First Second
Quarter Quarter Quarter First Half
2002 2003 2003 2003 2002
================================== ================
(shares thousand) (Shares thousand)
Shares in
issue at period
22,463,182 22,241,895 22,101,622 end (a) 22,101,622 22,463,182
Average number
of shares
outstanding
22,426,830 22,326,486 22,164,026 (b) 22,244,797 22,414,904
---------------------------------- ----------------------
(a) Each BP ADS represents six BP Ordinary Shares.
(b) Excludes shares held by the Employee Share Ownership Plans.
11. Statutory accounts
The financial information shown in this publication is unaudited and
does not constitute statutory accounts. The 2002 group 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 Roddy Kennedy Ian Fowler
Office +44 (0)20 7496 4624 +1 212 451 8008
Investor Fergus McLeod Terry LaMore
Relations +44 (0)20 7496 4717 +1 212 451 8034
http://www.bp.com/investors
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