2nd Quarter Results Pt 3 of 3
BP PLC
29 July 2003
BP p.l.c.
Group Results
Second Quarter and Half Year 2003
London 29 July 2003
INVESTOR RELATIONS SUPPLEMENT
REPLACEMENT COST OPERATING PROFIT ADJUSTED FOR SPECIAL ITEMS(a) AND ACQUISITION
AMORTIZATION(b)
Second First Second
Quarter Quarter Quarter First Half
2002 2003 2003 2003 2002
======================= =============
$ million
Exploration and Production
768 1,220 519 UK 1,739 1,577
172 193 141 Rest of Europe 334 324
1,047 2,145 1,698 USA 3,843 1,712
902 1,330 1,231 Rest of World 2,561 1,676
----------------------- --------------
2,889 4,888 3,589 8,477 5,289
----------------------- --------------
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
39 136 79 UK 215 12
272 355 464 Rest of Europe 819 437
238 192 418 USA 610 255
136 171 174 Rest of World 345 268
----------------------- --------------
685 854 1,135 1,989 972
----------------------- --------------
Petrochemicals
12 (34) 25 UK (9) (19)
80 88 199 Rest of Europe 287 129
89 42 60 USA 102 142
65 43 24 Rest of World 67 102
----------------------- --------------
246 139 308 447 354
----------------------- --------------
Other businesses and corporate
(75) (76) (122) UK (198) (119)
6 (7) (2) Rest of Europe (9) 7
(44) (98) (51) USA (149) (127)
(15) 16 41 Rest of World 57 (14)
----------------------- --------------
(128) (165) (134) (299) (253)
----------------------- --------------
3,806 5,910 5,001 10,911 6,587
======================= ==============
(a) The special items refer to non-recurring charges and credits. The
special items for the second quarter are restructuring costs in
Exploration and Production, Veba integration costs in Refining and
Marketing, and a reduction in the provision for costs associated with
closure of polypropylene capacity in Petrochemicals.
(b) Acquisition amortization is depreciation and amortization relating to
the fixed asset revaluation adjustments and goodwill consequent upon
the ARCO and Burmah Castrol acquisitions.
PER SHARE AMOUNTS
Second First Second
Quarter Quarter Quarter First Half
2002 2003 2003 2003 2002
=================================== ======================
Shares in issue
at period
22,463,182 22,241,895 22,101,622 end (thousand) 22,101,622 22,463,182
- ADS equivalent
3,743,864 3,706,983 3,683,604 (thousand) 3,683,604 3,743,864
Average number
of shares
outstanding
22,426,830 22,326,486 22,164,026 (thousand)* 22,244,797 22,414,904
- ADS equivalent
3,737,805 3,721,081 3,694,004 (thousand) 3,707,466 3,735,817
----------------------------------- ----------------------
Replacement cost
profit after
exceptional
1,527 3,468 2,585 items ($m) 6,053 2,381
cents/ordinary
6.81 15.53 11.68 share 27.21 10.62
0.41 0.93 0.70 dollars/ADS 1.63 0.64
----------------------------------- ----------------------
Replacement cost
profit before
exceptional
1,311 3,128 2,454 items ($m) 5,582 2,235
cents/ordinary
5.85 14.01 11.08 share 25.09 9.97
0.35 0.84 0.67 dollars/ADS 1.51 0.60
----------------------------------- ----------------------
Pro forma result
adjusted for special
2,199 3,729 3,115 items ($m) 6,844 3,781
9.80 16.70 14.06 cents/ordinary share 30.76 16.86
0.59 1.00 0.85 dollars/ADS 1.85 1.01
----------------------------------- ----------------------
* Excludes shares held by the Employee Share Ownership Plans.
ACQUISITION AMORTIZATION BY BUSINESS
Second First Second
Quarter Quarter Quarter First Half
2002 2003 2003 2003 2002
======================= =============
$ million
Exploration and Production
37 33 34 UK 67 69
268 259 257 USA 516 549
36 131 133 Rest of World 264 68
----------------------- -------------
341 423 424 847 686
----------------------- -------------
Refining and Marketing
100 110 110 UK 220 197
96 95 95 USA 190 192
----------------------- -------------
196 205 205 410 389
----------------------- -------------
537 628 629 Total acquisition amortization 1,257 1,075
======================= =============
SPECIAL ITEMS BY BUSINESS (PRE-TAX)
Second First Second
Quarter Quarter Quarter First Half
2002 2003 2003 2003 2002
======================= =============
$ million
Exploration and Production
82 53 12 UK 65 132
- - - Rest of Europe - -
8 81 - USA 81 70
- 5 - Rest of World 5 15
----------------------- -------------
90 139 12 151 217
----------------------- -------------
Gas, Power and Renewables
- - - UK - -
- - - Rest of Europe - -
- - - USA - -
- - - Rest of World - -
----------------------- -------------
- - - - -
----------------------- -------------
Refining and Marketing
- - - UK - -
23 18 41 Rest of Europe 59 49
(137) - - USA - (137)
- - - Rest of World - -
----------------------- -------------
(114) 18 41 59 (88)
----------------------- -------------
Petrochemicals
22 - - UK - 22
16 - - Rest of Europe - 18
5 - (5) USA (5) 35
- - - Rest of World - -
----------------------- -------------
43 - (5) (5) 75
----------------------- -------------
Other businesses and corporate
- - - UK - -
- - - Rest of Europe - -
- - - USA - -
- - - Rest of World - -
----------------------- -------------
- - - - -
----------------------- -------------
19 157 48 Total 205 204
======================= =============
PRODUCTION AND REALIZATIONS
Second First Second
Quarter Quarter Quarter First Half
2002 2003 2003 2003 2002
======================= =============
Production
Crude oil (mb/d) (net of royalties)
457 442 325 UK 383 457
102 90 80 Rest of Europe 85 100
605 606 569 USA 588 594
644 692 738 Rest of World 715 630
----------------------- -------------
1,808 1,830 1,712 Total crude oil production 1,771 1,781
======================= =============
Natural gas liquids (mb/d) (net of royalties)
24 29 18 UK 24 24
6 5 5 Rest of Europe 5 6
186 167 144 USA 155 181
28 32 32 Rest of World 32 28
----------------------- -------------
Total natural gas
244 233 199 liquids production 216 239
======================= =============
Liquids (b)(mb/d) (net of royalties)
481 471 343 UK 407 481
108 95 85 Rest of Europe 90 106
791 773 713 USA 743 775
672 724 770 Rest of World 747 658
----------------------- -------------
2,052 2,063 1,911 Total liquids production 1,987 2,020
======================= =============
Natural gas (a) (mmcf/d) (net of royalties)
1,602 1,798 1,407 UK 1,602 1,615
157 131 103 Rest of Europe 117 159
3,565 3,437 3,145 USA 3,290 3,563
3,343 3,651 3,784 Rest of World 3,718 3,369
----------------------- -------------
8,667 9,017 8,439 Total natural gas production 8,727 8,706
======================= =============
Average realizations
Crude oil ($/bbl)
25.15 31.16 25.16 UK 28.60 23.09
24.53 31.74 27.09 USA 29.48 21.86
22.75 29.91 24.16 Rest of World 26.90 20.92
24.27 31.07 25.73 BP Average 28.50 22.07
======================= =============
Natural gas liquids ($/bbl)
13.95 23.28 11.97 UK 18.86 14.08
11.91 18.26 17.80 USA 18.05 11.12
13.63 23.05 20.16 Rest of World 21.63 12.73
12.40 19.82 17.49 BP Average 18.76 11.77
======================= =============
Liquids (b) ($/bbl)
24.59 30.67 24.45 UK 28.04 22.59
21.81 29.36 25.61 USA 27.55 19.61
22.20 29.48 23.93 Rest of World 26.58 20.43
22.81 29.82 24.90 BP Average 27.47 20.81
======================= =============
Natural gas ($/mcf)
2.50 3.32 2.84 UK 3.11 2.81
2.76 5.27 4.52 USA 4.91 2.44
2.04 2.70 2.53 Rest of World 2.63 1.98
2.45 3.87 3.39 BP Average 3.64 2.36
======================= =============
(a) Natural gas is converted to oil equivalent at 5.8 billion cubic feet =
1 million barrels.
(b) Crude oil and natural gas liquids.
RECONCILIATION OF HISTORICAL COST PROFIT (LOSS)
TO PRO FORMA RESULT ADJUSTED FOR SPECIAL ITEMS
pro forma result
adjusted for
Reported Acquisition Special special
$ million Earnings Amortization Items(a) items
==============================================
1Q 2003
Exploration and Production 4,326 423 139 4,888
Gas, Power and Renewables 194 - - 194
Refining and Marketing 631 205 18 854
Petrochemicals 139 - - 139
Other businesses & corporate (165) - - (165)
----------------------------------------------
RC operating profit 5,125 628 157 5,910
----------------------------------------------
Interest expense (220) - - (220)
Taxation (1,751) - (184) (1,935)
MSI (26) - - (26)
----------------------------------------------
RC profit before
exceptional items 3,128 628 (27) 3,729
================================
Exceptional items before tax 394
Taxation on exceptional items (54)
-----
RC profit after
exceptional items 3,468
Stock holding gains (losses) 799
-----
HC profit 4,267
=====
2Q 2002
Exploration and Production 2,458 341 90 2,889
Gas, Power and Renewables 114 - - 114
Refining and Marketing 603 196 (114) 685
Petrochemicals 203 - 43 246
Other businesses & corporate (128) - - (128)
----------------------------------------------
RC operating profit 3,250 537 19 3,806
----------------------------------------------
Interest expense (314) - - (314)
Taxation (1,591) - 348 (1,243)
MSI (34) - (16) (50)
----------------------------------------------
RC profit before
exceptional items 1,311 537 351 2,199
================================
Exceptional items before tax 376
Taxation on exceptional items (160)
-----
RC profit after
exceptional items 1,527
Stock holding gains (losses) 531
-----
HC profit 2,058
=====
(a) The special items for the first quarter 2003 are restructuring and
impairment charges in Exploration and Production, Veba integration costs
in Refining and Marketing and tax restructuring benefits. The special
items in the second quarter 2002 comprise restructuring charges for
Exploration and Production and Petrochemicals, business interruption
insurance proceeds and costs related to a pipeline incident in Refining
and Marketing, Veba, Solvay and Erdolchemie integration costs and an
adjustment to the North Sea deferred tax balance for the supplementary
UK corporation tax rate.
RECONCILIATION OF HISTORICAL COST PROFIT (LOSS)
TO PRO FORMA RESULT ADJUSTED FOR SPECIAL ITEMS
pro forma result
adjusted for
Reported Acquisition Special special
$ million Earnings Amortization Items(a) items
==============================================
1H 2003
Exploration and Production 7,479 847 151 8,477
Gas, Power and Renewables 297 - - 297
Refining and Marketing 1,520 410 59 1,989
Petrochemicals 452 - (5) 447
Other businesses & corporate (299) - - (299)
----------------------------------------------
RC operating profit 9,449 1,257 205 10,911
----------------------------------------------
Interest expense (411) - - (411)
Taxation (3,370) - (200) (3,570)
MSI (86) - - (86)
----------------------------------------------
RC profit before
exceptional items 5,582 1,257 5 6,844
================================
Exceptional items before tax 674
Taxation on exceptional items (203)
-----
RC profit after
exceptional items 6,053
Stock holding gains (losses) (152)
-----
HC profit 5,901
=====
1H 2002
Exploration and Production 4,386 686 217 5,289
Gas, Power and Renewables 225 - - 225
Refining and Marketing 671 389 (88) 972
Petrochemicals 279 - 75 354
Other businesses & corporate (253) - - (253)
----------------------------------------------
RC operating profit 5,308 1,075 204 6,587
----------------------------------------------
Interest expense (647) - - (647)
Taxation (2,383) - 283 (2,100)
MSI (43) - (16) (59)
----------------------------------------------
RC profit before
exceptional items 2,235 1,075 471 3,781
================================
Exceptional items before tax 267
Taxation on exceptional items (121)
-----
RC profit after
exceptional items 2,381
Stock holding gains (losses) 973
-----
HC profit 3,354
=====
(a) The special items for the first half 2003 comprise restructuring and
impairment charges in Exploration and Production, Veba integration costs
in Refining and Marketing, a reduction in the provision for costs
associated with closure of polypropylene capacity in Petrochemicals and
tax restructuring benefits. The special items for the first half 2002
comprise restructuring charges for Exploration and Production and
Petrochemicals, business interruption insurance proceeds and costs
related to a pipeline incident in Refining and Marketing, Veba, Solvay
and Erdolchemie integration costs and an adjustment to the North Sea
deferred tax balance for the supplementary UK corporation tax rate.
REPLACEMENT COST OPERATING PROFIT ADJUSTED FOR
NON-CASH CHARGES AND CERTAIN OTHER ITEMS
Second First Second
Quarter Quarter Quarter First Half
2002 2003 2003 2003 2002
======================= =============
$ million
Replacement cost operating profit
3,250 5,125 4,324 (reported) (a) 9,449 5,308
2,227 2,709 2,653 Depreciation and amounts provided (b) 5,362 4,380
147 50 43 Exploration expenditure written off 93 206
Dividends from JVs and associates
(115) (229) (6) less share of RCOP (235) (237)
(3) (2) (11) Dividends paid to minority shareholders (13) (16)
(48) (26) (112) Adjust provisions to cash basis (c) (138) (117)
Adjust interest and other income
(3) (11) (6) to cash basis (d) (17) (16)
----------------------- -------------
5,455 7,616 6,885 14,501 9,508
(887) (650) (1,861) Tax paid adjusted for certain items* (2,511) (1,479)
----------------------- -------------
4,568 6,966 5,024 Adjusted RCOP after tax paid 11,990 8,029
----------------------- -------------
* Calculation of tax paid adjusted
for certain items
(927) (632) (1,853) Cash tax paid (2,485) (1,372)
160 54 149 Tax charge on exceptional items 203 121
(120) (72) (157) Tax shield assumption + (229) (228)
----------------------- -------------
(887) (650) (1,861) (2,511) (1,479)
----------------------- -------------
+ Calculation of tax shield assumption
(342) (207) (446) Interest paid (653) (651)
35% 35% 35% Tax rate assumption (e) 35% 35%
----------------------- -------------
(120) (72) (157) (229) (228)
----------------------- -------------
(a) Total replacement cost operating profit is before exceptional items,
stock holding gains and losses and interest expense.
(b) Includes depreciation and amortization relating to the fixed asset
revaluation adjustment and goodwill consequent upon the ARCO and Burmah
Castrol acquisitions.
(c) Calculated as the net of charge for provisions and utilization of
provisions.
(d) Calculated as interest and other income, less interest received and
dividends received from the group cash flow statement.
(e) Deemed tax rate for tax shield adjustment is equal to the US statutory
tax rate.
RETURN ON AVERAGE CAPITAL EMPLOYED
Second First Second
Quarter Quarter Quarter First Half
2002 2003 2003 2003 2002
======================= =============
$ million
Replacement cost basis
1,311 3,128 2,454 RC profit before exceptional items 5,582 2,235
153 99 78 Interest + 177 317
34 26 60 Minority shareholders' interest 86 43
----------------------- --------------
1,498 3,253 2,592 Adjusted RC profit 5,845 2,595
======================= ==============
90,774 91,610 91,420 Average capital employed 91,865 88,356
6.6% 14.2% 11.3% ROACE - replacement cost basis 12.7% 5.9%
----------------------- -------------
Pro forma basis
1,498 3,253 2,592 Adjusted RC profit 5,845 2,595
537 628 629 Acquisition amortization 1,257 1,075
367 (27) 32 Special items (post-tax) 5 487
90,774 91,610 91,420 Average capital employed 91,865 88,356
Average capital employed
18,163 15,940 14,839 acquisition adjustment 15,571 18,455
----------------------- -------------
Average capital employed
72,611 75,670 76,581 (pro forma basis) 76,294 69,901
ROACE - Pro forma basis
13.2% 20.4% 17.0% adjusted for special items 18.6% 11.9%
----------------------- ------------
Historical cost basis
Historical cost profit (loss)
2,058 4,267 1,634 after exceptional items 5,901 3,354
153 99 78 Interest + 177 317
28 26 60 Minority shareholders' interest 86 68
----------------------- --------------
2,239 4,392 1,772 Adjusted historical cost profit 6,164 3,739
======================= ==============
90,774 91,610 91,420 Average capital employed 91,865 88,356
9.9% 19.2% 7.8% ROACE - historical cost basis 13.4% 8.5%
+ Excludes interest on joint venture and associated undertakings debt as
well as unwinding of discount on provisions and effect of change in
discount rate on provisions, and is on a post-tax basis, using a deemed
tax rate equal to the US statutory tax rate.
NET DEBT RATIO - NET DEBT: NET DEBT + EQUITY
Second First Second
Quarter Quarter Quarter First Half
2002 2003 2003 2003 2002
======================= =============
$ million
21,409 19,042 18,594 Gross debt 18,594 21,409
1,569 1,379 2,444 Cash and current asset investments 2,444 1,569
----------------------- --------------
19,840 17,663 16,150 Net debt 16,150 19,840
======================= =============
68,126 72,123 73,081 Equity 73,081 68,126
23% 20% 18% Net debt ratio 18% 23%
----------------------- --------------
18,028 15,208 14,469 Acquisition adjustment 14,469 18,028
----------------------- --------------
28% 24% 22% Net debt ratio - pro forma basis 22% 28%
======================= ==============
This information is provided by RNS
The company news service from the London Stock Exchange
Latest directors dealings
- 2 hours ago Ocado Group
- 4 hours ago AVI Global Trust
- 5 hours ago Serica Energy
- 6 hours ago Primary Health Properties
- 6 hours ago VP