2Q 2000 Results - Part 2
BP Amoco PLC
8 August 2000
PART 2
BP Amoco p.l.c. and Subsidiaries
Summarized Group Results
Second First Second
Quarter Quarter Quarter First Half
1999 2000 2000 2000 1999
======================= =============
$ million $ million
1,465 3,203 3,115 Exploration and Production 6,318 2,215
38 52 26 Gas and Power 78 106
560 674 1,277 Refining and Marketing 1,951 906
198 259 320 Chemicals 579 404
(186) (227) (299) Other businesses and corporate (526) (310)
----------------------- -------------
Total replacement cost
2,075 3,961 4,439 operating profit 8,400 3,321
Profit (loss) on sale of
fixed assets and businesses and
162 (157) 161 termination of operations (Note 3) 4 259
(348) - - Restructuring costs (Note 3) - (1,503)
----------------------- -------------
Replacement cost profit before
1,889 3,804 4,600 interest and tax 8,404 2,077
572 532 213 Stock holding gains (losses)(Note 5) 745 579
----------------------- -------------
Historical cost profit before
2,461 4,336 4,813 interest and tax 9,149 2,656
328 296 403 Interest expense (Note 6) 699 632
----------------------- -------------
2,133 4,040 4,410 Profit before taxation 8,450 2,024
473 887 1,289 Taxation (Note 7) 2,176 529
----------------------- -------------
1,660 3,153 3,121 Profit after taxation 6,274 1,495
25 68 22 Minority shareholders' interest 90 36
----------------------- -------------
1,635 3,085 3,099 Profit for the period 6,184 1,459
----------------------- -------------
970 1,133 1,129 Distribution to shareholders 2,262 1,940
======================= =============
Earnings per ordinary share - cents
8.44 15.88 13.95 Basic 29.83 7.53
8.40 15.77 13,85 Diluted 29.62 7.49
======================= =============
Replacement Cost Results
Second First Second
Quarter Quarter Quarter First Half
1999 2000 2000 2000 1999
======================= =============
$ million $ million
Historical cost profit
1,635 3,085 3,099 for the period 6,184 1,459
(572) (532) (213) Stock holding (gains) losses (745) (579)
----------------------- -------------
Replacement cost profit
1,063 2,553 2,886 for the period 5,439 880
163 124 (20) Exceptional items, net of tax 104 1,023
----------------------- -------------
Replacement cost profit before
1,226 2,677 2,866 exceptional items 5,543 1,903
======================= =============
Earnings per ordinary share - cents
On replacement cost profit before
6.32 13.78 12.96 exceptional items 26.74 9.82
======================= =============
Summarized Group Balance Sheet
30 June 31 December
2000 1999
---------------------
$ million
Fixed assets
Intangible assets 14,725 3,344
Tangible assets 67,080 52,631
Investments 16,422 10,109
---------------------
98,227 66,084
---------------------
Current assets
Stocks 6,630 5,124
Debtors 21,139 16,802
Investments 2,616 220
Cash at bank and in hand 3,313 1,331
---------------------
33,698 23,477
Creditors - amounts falling due within one year
Finance debt 2,833 4,900
Other creditors 24,428 18,375
---------------------
Net current assets 6,437 202
---------------------
Total assets less current liabilities 104,664 66,286
Creditors - amounts falling due
after more than one year
Finance debt 16,354 9,644
Other creditors 2,155 2,245
Provisions for liabilities and charges 12,027 10,055
---------------------
Net assets 74,128 44,342
Minority shareholders' interest 1,836 1,061
---------------------
BP Amoco shareholders' interest 72,292 43,281
=====================
Movement in BP Amoco shareholders' interest: $ million
At 31 December 1999 43,281
Profit for the period 6,184
Distribution to shareholders (2,262)
Currency translation differences (1,216)
Employee share schemes 149
Share buy-back (976)
ARCO acquisition 27,427
Share premium (295)
------
At 30 June 2000 72,292
======
Summarized Group Cash Flow Statement
Second First Second
Quarter Quarter Quarter First Half
1999 2000 2000 2000 1999
======================= ============
$ million $ million
Net cash inflow from
2,329 2,764 5,244 operating activities (a) 8,008 3,158
----------------------- --------------
230 195 332 Dividends from joint ventures 527 442
----------------------- -------------
98 31 143 Dividends from associated undertakings 174 143
----------------------- -------------
Servicing of finance and returns
on investments
50 35 114 Interest received 149 82
(316) (224) (344) Interest paid (568) (597)
13 1 2 Dividends received 3 20
Dividends paid to
(31) (2) (6) minority shareholders (8) (96)
----------------------- -------------
Net cash outflow from servicing of
(284) (190) (234) finance and returns on investments (424) (591)
----------------------- -------------
Taxation
(59) (200) (64) UK corporation tax (264) (131)
(89) (337) (889) Overseas tax (1,226) (62)
----------------------- -------------
(148) (537) (953) Tax paid (1,490) (193)
----------------------- -------------
Capital expenditure
(1,678) (1,421) (2,765) Payments for fixed assets (4,186) (3,193)
Proceeds from the sale
352 406 182 of fixed assets 588 439
----------------------- -------------
Net cash outflow for
capital expenditure and
(1,326) (1,015) (2,583) financial investment (3,598) (2,754)
----------------------- -------------
Summarized Group Cash Flow Statement (continued)
Second First Second
Quarter Quarter Quarter First Half
1999 2000 2000 2000 1999
======================= =============
$ million $ million
Acquisitions and disposals
Investments in associated
(51) (197) (244) undertakings (441) (139)
(45) (869) - Acquisitions (869) (45)
(69) (2) (121) Net investment in joint ventures (123) (269)
- 25 6,800 Proceeds from the sale of businesses 6,825 92
----------------------- -------------
Net cash inflow (outflow) for
(165) (1,043) 6,435 acquisitions and disposals 5,392 (361)
----------------------- -------------
(1,934) (971) (1,133) Equity dividends paid (2,104) (2,197)
----------------------- -------------
(1,200) (766) 7,251 Net cash inflow (outflow) 6,485 (2,353)
======================= =============
(1,438) 77 3,465 Financing (b) 3,542 (2,267)
- 20 1,919 Management of liquid resources 1,939 (161)
238 (863) 1,867 Increase (decrease) in cash 1,004 75
----------------------- -------------
(1,200) (766) 7,251 6,485 (2,353)
======================= =============
Analysis of Cash Flow
Second First Second
Quarter Quarter Quarter First Half
1999 2000 2000 2000 1999
======================= =============
$ million $ million
(a) Reconciliation of historical
cost profit before interest
and tax to net cash inflow
from operating activities
Historical cost profit before
2,461 4,336 4,813 interest and tax 9,149 2,656
1,152 1,195 1,831 Depreciation and amounts provided 3,026 2,396
Exploration expenditure
51 66 74 written off 140 135
Share of (profits) losses of
joint ventures and
(383) (453) (535) associated undertakings+ (988) (739)
(61) (47) (113) Interest and other income (160) (113)
(Profit) loss on sale of fixed
(148) 171 (153) assets and businesses 18 (206)
30 155 282 Charge for provisions 437 479
(115) (204) (129) Utilization of provisions (333) (210)
(603) (255) (611) (Increase) decrease in stocks (866) (604)
(774) (1,140) (2,446) (Increase) decrease in debtors (3,586) (1,788)
719 (1,060) 2,231 Increase (decrease) in creditors 1,171 1,152
----------------------- --------------
Net cash inflow from
2,329 2,764 5,244 operating activities 8,008 3,158
======================= ==============
+Includes the following amounts
of depreciation for the BP/Mobil
72 77 71 European JV 148 150
----------------------- --------------
(b) Financing
(1,616) (312) (1,228) Long-term borrowing (1,540) (1,666)
558 93 487 Repayments of long-term borrowing 580 1,351
(463) (623) (59) Short-term borrowing (682) (2,655)
Repayments of short-term
148 950 3,249 borrowing 4,199 869
------------------------ --------------
(1,373) 108 2,449 2,557 (2,101)
(65) (31) (108) Issue of ordinary share capital (139) (166)
Repurchase of ordinary
- - 829 share capital 829 -
- - 295 Stamp duty reserve tax 295 -
------------------------ --------------
Net cash outflow
(1,438) 77 3,465 (inflow) from financing 3,542 (2,267)
======================== ==============
Capital Expenditure and Acquisitions
Second First Second
Quarter Quarter Quarter First Half
1999 2000 2000 2000 1999
======================= =============
$ million $ million
By business
Exploration and Production
203 163 277 UK 440 447
5 24 36 Rest of Europe 60 13
400 381 819 USA 1,200 762
490 295 410 Rest of World 705 810
----------------------- --------------
1,098 863 1,542 2,405 2,032
----------------------- --------------
Gas and Power
- 2 28 UK* 30 -
- 1 1 Rest of Europe 2 -
3 - 28 USA* 28 3
1 4 - Rest of World 4 1
----------------------- --------------
4 7 57 64 4
----------------------- --------------
Refining and Marketing
41 889 29 UK** 918 75
96 44 65 Rest of Europe 109 176
130 77 336 USA 413 284
62 92 88 Rest of World 180 110
----------------------- --------------
329 1,102 518 1,620 645
----------------------- --------------
Chemicals
103 152 136 UK 288 163
71 33 34 Rest of Europe 67 132
84 39 52 USA 91 147
52 267 58 Rest of World 325 77
----------------------- --------------
310 491 280 771 519
----------------------- --------------
38 53 647 Other businesses and corporate+ 700 63
----------------------- --------------
1,779 2,516 3,044 5,560 3,263
======================= ==============
* 2Q includes investment in Great Yarmouth and GreenMountain.com.
** 1Q includes $869 million for the purchase of some 19.5% of Burmah
Castrol's issued share capital.
+ 2Q includes $578 million for the acquisition of 2.2% interest in
PetroChina
Capital Expenditure and Acquisitions (continued)
Second First Second
Quarter Quarter Quarter First Half
1999 2000 2000 2000 1999
======================= =============
$ million $ million
By geographical area
376 1,248 1,077 UK 2,325 720
172 106 138 Rest of Europe 244 323
626 497 1,273 USA 1,770 1,221
605 665 556 Rest of World 1,221 999
----------------------- --------------
1,779 2,516 3,044 5,560 3,263
======================= =============
Includes the following
amounts for the BP/Mobil
127 55 86 European joint venture 141 234
----------------------- --------------
Analysis of Replacement Cost Operating Profit
Second First Second
Quarter Quarter Quarter First Half
1999 2000 2000 2000 1999
======================= =============
$ million $ million
By business
Exploration and Production
458 1,088 896 UK 1,984 776
74 188 185 Rest of Europe 373 149
425 1,191 1,084 USA 2,275 617
508 736 950 Rest of World 1,686 673
----------------------- -------------
1,465 3,203 3,115 6,318 2,215
----------------------- -------------
Gas and Power
3 (5) 4 UK (1) 8
29 55 11 Rest of Europe 66 81
2 (1) 11 USA 10 6
4 3 - Rest of World 3 11
----------------------- -------------
38 52 26 78 106
----------------------- -------------
Refining and Marketing
67 33 148 UK 181 45
58 36 130 Rest of Europe 166 158
332 424 856 USA 1,280 445
103 181 143 Rest of World 324 258
----------------------- -------------
560 674 1,277 1,951 906
----------------------- -------------
Chemicals
(26) (31) (33) UK (64) 16
21 78 118 Rest of Europe 196 82
155 168 196 USA 364 262
48 44 39 Rest of World 83 44
----------------------- -------------
198 259 320 579 404
----------------------- -------------
(186) (227) (299) Other businesses and corporate (526) (310)
----------------------- -------------
2,075 3,961 4,439 8,400 3,321
======================= =============
By geographical area
397 974 986 UK 1,960 744
191 366 461 Rest of Europe 827 473
823 1,652 1,854 USA 3,506 1,111
664 969 1,138 Rest of World 2,107 993
----------------------- -------------
2,075 3,961 4,439 8,400 3,321
======================= =============
Includes the following amounts
for joint ventures and
246 340 454 associated undertakings 794 506
----------------------- -------------
US dollar/Sterling exchange rates
Second First Second
Quarter Quarter Quarter First Half
1999 2000 2000 2000 1999
======================= =============
1.61 1.60 1.53 Average rates for the period 1.57 1.62
1.58 1.59 1.52 Period-end rates 1.52 1.58
======================= =============
Notes
1. Turnover
Second First Second
Quarter Quarter Quarter First Half
1999 2000 2000 2000 1999
======================= ==============
$ million $ million
By business
4,355 6,504 7,278 Exploration and Production 13,782 7,825
1,153 2,173 2,772 Gas and Power 4,945 2,369
13,988 20,778 25,120 Refining and Marketing 45,898 24,155
2,248 2,781 2,914 Chemicals 5,695 4,371
Other businesses
45 41 51 and corporate 92 75
------------------------ --------------
21,789 32,277 38,135 70,412 38,795
Less: Sales between
2,773 4,566 4,977 businesses 9,543 5,137
------------------------ --------------
19,016 27,711 33,158 Group excluding JVs 60,869 33,658
3,923 5,380 5,869 Sales of joint ventures 11,249 7,265
------------------------ ---------------
22,939 33,091 39,027 72,118 40,923
======================== ===============
By geographical area
Group excluding JVs
6,397 10,350 11,112 UK 21,462 11,192
1,468 1,874 1,859 Rest of Europe 3,733 2,658
9,043 12,973 17,575 USA 30,548 15,673
4,248 6,360 6,977 Rest of World 13,337 7,702
------------------------ --------------
21,156 31,557 37,523 69,080 37,225
Less: Sales between
2,140 3,846 4,365 areas 8,211 3,567
------------------------ --------------
19,016 27,711 33,158 60,869 33,658
------------------------ --------------
Sales of joint ventures
836 1,360 1,414 UK 2,774 1,583
3,528 5,007 5,358 Rest of Europe 10,365 6,517
27 - 159 USA 159 51
99 121 128 Rest of World 249 159
------------------------ --------------
4,490 6,488 7,059 13,547 8,310
Less: Sales between
567 1,108 1,190 areas 2,298 1,045
------------------------ --------------
3,923 5,380 5,869 11,249 7,265
======================== ==============
Notes
2. Operating profits are after charging:
Second First Second
Quarter Quarter Quarter First Half
1999 2000 2000 2000 1999
======================= =============
$ million $ million
Exploration expense
7 8 15 UK 23 20
11 4 8 Rest of Europe 12 35
30 35 90 USA 125 50
76 84 55 Rest of World 139 191
----------------------- -------------
124 131 168 299 296
======================= =============
Production taxes (i)
49 190 184 UK petroleum revenue tax 374 82
166 308 304 Overseas production taxes 612 275
----------------------- -------------
215 498 488 986 357
======================= =============
(i) Production taxes are charged against Exploration and Production's
operating profit and are not included in the charge for taxation in
Note 7.
3. Analysis of exceptional items
8 38 168 Exploration and Production 206 (1)
- - - Gas and Power - -
59 19 5 Refining and Marketing 24 103
102 (210) - Chemicals (210) 164
(7) (4) (12) Other businesses and corporate (16) (7)
----------------------- -------------
Profit (loss) on sale of fixed
assets and businesses and
162 (157) 161 termination of operations 4 259
(348) - - Restructuring costs - (1,503)
----------------------- -------------
Exceptional items
(186) (157) 161 before taxation+ 4 (1,244)
23 33 (141) Taxation credit (charge) (108) 221
----------------------- -------------
Exceptional items
(163) (124) 20 after taxation (104) (1,023)
======================= =============
+Includes the following amounts
for joint ventures and
8 14 8 associated undertakings 22 47
----------------------- -------------
4. 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
5. Stock holding gains (losses)
Second First Second
Quarter Quarter Quarter First Half
1999 2000 2000 2000 1999
======================= =============
$ million $ million
1 1 1 Exploration and Production 2 (10)
- 5 17 Gas and Power 22 -
531 463 153 Refining and Marketing 616 576
40 63 42 Chemicals 105 13
---------------------- --------------
572 532 213 745 579
====================== ==============
Includes the following amounts
for joint ventures and
129 99 95 associated undertakings 194 186
----------------------- --------------
6. Interest expense
263 231 341 Group interest payable 572 499
(11) (15) (36) Capitalized (51) (26)
----------------------- --------------
252 216 305 521 473
15 14 21 Joint ventures 35 31
28 30 32 Associated undertakings 62 65
Unwinding of discount
33 36 45 on provisions 81 63
----------------------- --------------
328 296 403 699 632
======================= ==============
7. Charge for taxation
100 317 287 UK 604 188
373 570 1,002 Overseas 1,572 341
----------------------- -------------
473 887 1,289 2,176 529
======================= =============
Includes the following amounts
for joint ventures and
26 52 26 associated undertakings 78 50
----------------------- -------------
Notes
8. Analysis of changes in net debt
Second First Second
Quarter Quarter Quarter First Half
1999 2000 2000 2000 1999
======================= ==============
$ million $ million
Opening balance
14,510 14,544 14,357 Finance debt 14,544 13,755
270 1,331 462 Less: Cash 1,331 405
305 220 274 Current asset investments 220 470
----------------------- --------------
13,935 12,993 13,621 Opening net debt 12,993 12,880
----------------------- --------------
Closing balance
15,850 14,357 19,187 Finance debt 19,187 15,850
467 462 3,313 Less: Cash 3,313 467
304 274 2,616 Current asset investments 2,616 304
----------------------- --------------
15,079 13,621 13,258 Closing net debt 13,258 15,079
----------------------- --------------
(Increase) decrease
(1,144) (628) 363 in net debt (265) (2,199)
======================= ==============
Movement in cash/
238 (863) 1,867 bank overdrafts 1,004 75
Increase(decrease) in
- 20 1,919 current asset investments 1,939 (161)
Net cash (inflow) outflow
from financing(excluding
(1,373) 108 2,449 share capital) 2,557 (2,101)
(7) 56 28 Other movements 84 (7)
- - (5,863) ARCO net debt acquired (5,863) -
----------------------- --------------
Movement in net debt before
(1,142) (679) 400 exchange effects (279) (2,194)
(2) 51 (37) Exchange adjustments 14 (5)
----------------------- --------------
(Increase) decrease
(1,144) (628) 363 in net debt (265) (2,199)
======================= ==============
Notes
9. Consolidated statement of cash flows presented on a US GAAP format
Second First Second
Quarter Quarter Quarter First Half
1999 2000 2000 2000 1999
======================= =============
$ million $ million
Operating activities
1,660 3,153 3,121 Profit after taxation 6,274 1,495
Adjustments to reconcile
profits after tax to net
cash provided by
operating activities
Depreciation and
1,152 1,195 1,831 amounts provided 3,026 2,396
Exploration expenditure
51 66 74 written off 140 135
Share of (profit) loss of
joint ventures and associates
(55) (227) (60) less dividends received (287) (154)
Loss (profit) on sale of
(148) 171 (153) businesses and fixed assets 18 (206)
Working capital movement
(547) (2,028) 796 (see analysis below) (1,232) (1,422)
42 (55) (537) Other (592) 477
----------------------- -------------
Net cash provided by
2,155 2,275 5,072 operating activities 7,347 2,721
----------------------- -------------
Investing activities
(1,582) (1,418) (2,799) Capital expenditures (4,217) (2,866)
Acquisitions, net of
(45) (869) - cash acquired (869) (45)
Investment in
(51) (197) (244) associated undertakings (441) (139)
Net investment in
(69) (2) (121) joint ventures (123) (269)
Proceeds from
352 431 6,982 disposal of assets 7,413 531
----------------------- -------------
Net cash from
(1,395) (2,055) 3,818 investing activities 1,763 (2,788)
----------------------- -------------
Notes
9. Consolidated statement of cash flows presented on a US GAAP format
(continued)
Second First Second
Quarter Quarter Quarter First Half
1999 2000 2000 2000 1999
======================= =============
$ million $ million
Financing activities
Net proceeds from shares
65 31 (1,016) issued (repurchased) (985) 166
Proceeds from
1,616 312 1,228 long-term financing 1,540 1,666
Repayments of
(558) (93) (487) long-term financing (580) (1,351)
Net (decrease) increase
315 (327) (3,190) in short-term debt (3,517) 1,786
Dividends paid
(1,934) (971) (1,133) - BP shareholders (2,104) (2,197)
(31) (2) (6) - Minority shareholders (8) (96)
----------------------- --------------
Net cash used in
(527) (1,050) (4,604) financing activities (5,654) (26)
----------------------- --------------
Currency translation
differences relating to
(40) (4) 42 cash and cash equivalents 38 (15)
----------------------- --------------
Increase (decrease) in cash
193 (834) 4,328 and cash equivalents 3,494 (108)
----------------------- --------------
Cash and cash equivalents
493 1,455 621 at beginning of period 1,455 794
----------------------- --------------
Cash and cash equivalents
686 621 4,949 at end of period 4,949 686
----------------------- --------------
Analysis of working
capital movement
(603) (255) (611) (Increase) decrease in stocks (866) (604)
(Increase) decrease
(837) (1,180) (2,261) in debtors (3,441) (1,520)
Increase (decrease)
893 (593) 3,668 in creditors 3,075 702
----------------------- --------------
Total working
(547) (2,028) 796 capital movement (1,232) (1,422)
======================= ==============
Notes
10. Ordinary shares
Shares in issue at 30 June 2000 = 22,627.7 million.
Average number of shares in issue during January-June 2000 =
20,728.4 million (excluding shares held by the Employee Share Ownership
Plans). Each BP ADS represents six BP Ordinary Shares.
11. Statutory accounts
The financial information shown in this publication is unaudited and
does not constitute statutory accounts. The 1999 statutory accounts
have been delivered to the UK Registrar of Companies; the report of the
auditors on those accounts was unqualified.
Contacts
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Investor David Peattie Terry LaMore Karl Weckel
Relations +44 (0)20 7496 4717 +1 212 451 8034 +49 (0)69 71 37 9990
http://www.bp.com/investors
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