3Q06 Part 1 of 2

BP PLC
24 October 2006



BP p.l.c.

Group Results

Third Quarter 2006


                                                     London 24 October 2006


                           FOR IMMEDIATE RELEASE

---------------------------------------------------------------------------


  Third   Second    Third
Quarter  Quarter  Quarter                                   Nine Months
   2005     2006     2006  $ million                     2006     2005     %

=========================                              =====================

  6,463    7,266    6,231  Profit for the period*      19,120   18,656
                           Inventory holding
 (2,053)  (1,148)     744    (gains) losses              (762)  (3,774)

-------------------------                              ---------------------

  4,410    6,118    6,975  Replacement cost profit     18,358   14,882    23

=========================                              =====================

  11.86    16.59    18.76  - per ordinary share (pence) 50.01    38.08
  21.04    30.28    35.08  - per ordinary share (cents) 91.02    70.07    30
   1.26     1.82     2.10  - per ADS (dollars)           5.46     4.20

=========================                              =====================



o    BP's third quarter replacement cost profit was $6,975 million, compared
     with $4,410 million a year ago, an increase of 58%.  For the nine
     months, replacement cost profit was $18,358 million compared with
     $14,882 million, up 23%.

o    The third quarter result included a net non-operating gain of
     $1,225 million compared with a net non-operating charge of $921 million
     in the third quarter of 2005.  This includes significant gains on
     upstream asset disposals.  For the nine months, the net non-operating
     gain was $1,214 million compared with a net non-operating charge of
     $1,201 million for the nine months of 2005.

o    Compared with a year ago, the third quarter trading environment
     reflected higher oil realizations and higher retail margins but lower
     refining margins and lower gas realizations.

o    Net cash provided by operating activities for the quarter and nine
     months was $5.1 billion and $23.2 billion compared with $6.4 billion
     and $22.5 billion a year ago.

o    The ratio of net debt to net debt plus equity was 16%.

o    The quarterly dividend, to be paid in December, is 9.825 cents per
     share ($0.5895 per ADS) compared with 8.925 cents per share a year ago.
     For the nine months, the dividend showed an increase of 10%.  In
     sterling terms, the quarterly dividend is 5.241 pence per share,
     compared with 5.061 pence per share a year ago; for the nine months the
     increase was 8%.  During the nine months, the company repurchased
     1,024 million of its own shares at a cost of $12 billion.



BP Group Chief Executive, Lord Browne, said:

     'The trading environment reflected higher oil realizations and
     retail margins but lower refining margins and gas realizations
     compared to a year ago.  The third quarter result benefited
     from significant disposal gains and IFRS accounting effects.
     Results are being impacted by higher tax charges.  The share
     buyback programme is continuing, with $3.5 billion of share
     repurchases during the quarter'.

* Profit attributable to BP shareholders.



                       Summary Quarterly Results

Exploration and Production's third quarter result benefited from higher liquid
realizations offset by lower gas realizations.  In addition, it included higher
production taxes and higher costs, reflecting the impacts of sector specific
inflation, revenue investment and production growth.  Furthermore, the result
includes significant net gains on the sale of assets.  BP's share of the TNK-BP
result benefited from a gain of $892 million on the sale of its interest in the
Urdmurtneft assets.

Compared with a year ago, the Refining and Marketing result, excluding Texas
City, reflects strong operating performance.  The lower result reflects lower
refining margins, reduced supply optimization benefits and the impact of higher
levels of refining turnaround activity.  Retail margins improved strongly
compared with a year ago.  The result includes a significant gain related to
IFRS fair value accounting effects.

In Gas, Power and Renewables, the lower third quarter result includes a charge
for non-operating items compared with a gain in the same period last year.  A
significant reduction in the contribution from gas and power marketing and
trading was partly offset by better operational performance in the natural gas
liquids business and a lower charge related to IFRS fair value accounting.

Finance costs and Other finance expense was $117 million for the quarter
compared with $181 million in the third quarter of 2005.  Increases in market
interest rates were more than offset by higher capitalized interest and a higher
return on pension assets due to the increased market value of the pension asset
base.

The consolidation adjustment, which removes the margin on sales between segments
in respect of inventory at the period end, was a credit of $440 million in the
third quarter.  This primarily reflects changes in the amount of BP equity
production held in Refining and Marketing segment inventories.

The effective tax rate on replacement cost profit of continuing operations was
40% versus 34% a year earlier, reflecting the retroactive impact of the increase
in the North Sea tax rate, enacted in July 2006.  The effect of this change on
the Group's effective tax rate is partly mitigated by a sharp decline in prices
around the end of the quarter.

Capital expenditure was $4.8 billion for the quarter, including $1 billion in
respect of our investment in Rosneft.  Disposal proceeds were $2.8 billion.

Net debt at the end of the quarter was $16.8 billion.  The ratio of net debt to
net debt plus equity was 16%.

During the third quarter, the company repurchased 299 million of its own shares,
at a cost of $3.5 billion.  Of these, 48 million shares were purchased for
cancellation and the remainder are held in treasury.  Additionally, shares to
the value of $1.25 billion were issued to Alfa Group and Access Renova (AAR)
being the last instalment of the deferred consideration for our investment in
TNK-BP.

The commentaries above and following are based on replacement cost profit.

The financial information for 2005 has been restated to reflect the following,
all with effect from 1 January 2006: (a) the transfer of three equity-accounted
entities from Other businesses and corporate to Refining and Marketing following
the sale of Innovene; (b) the transfer of certain mid-stream assets and
activities from Refining and Marketing and Exploration and Production to Gas,
Power and Renewables; (c) the transfer of Hydrogen for Transport activities from
Gas, Power and Renewables to Refining and Marketing; and (d) the change in the
basis of accounting for over-the-counter forward sale and purchase contracts for
oil, natural gas, NGLs and power.  See Note 2 for further details.



                          Non-Operating Items

                                                                    Third
                                                                  Quarter
$ million                                                            2006

                                                                 --------

Exploration and Production                                          2,466
Refining and Marketing                                               (431)
Gas, Power and Renewables                                             (85)
Other businesses and corporate                                         78
                                                                 --------
                                                                    2,028
Taxation                                                             (803)
                                                                 --------
Continuing Operations                                               1,225
Innovene Operations                                       -
Taxation                                                  -             -
                                                   --------      --------
Total for all operations                                            1,225
                                                                 ========




    Reconciliation of Replacement Cost Profit to Profit for the Period



    Third    Second     Third
  Quarter   Quarter   Quarter                                 Nine Months
     2005      2006      2006  $ million                     2006      2005
=============================                              ================
    6,534     7,826     9,935  Exploration and Production  24,584    18,919
    1,875     1,856     1,503  Refining and Marketing       4,971     4,559
      347       453       152  Gas, Power and Renewables      906       948
                               Other businesses and
     (501)     (193)     (261)   corporate                   (671)     (828)
                               Consolidation adjustments
                                 Unrealized profit in
     (285)     (277)      440      inventory                  155      (442)
                                 Net profit on transactions
                                   between continuing and
      144         -         -      Innovene operations (a)      -       399
-----------------------------                              ----------------
                               RC profit before interest
    8,114     9,665    11,769    and tax                   29,945    23,555
-----------------------------                              ----------------
                               Finance costs and other
     (181)     (107)     (117)   finance expense             (367)     (546)
   (2,674)   (3,441)   (4,614) Taxation                   (10,984)   (7,444)
      (68)      (77)      (63) Minority interest             (211)     (198)
-----------------------------                              ----------------
                               RC profit from continuing
                                 operations attributable
    5,191     6,040     6,975    to BP shareholders (b)    18,383    15,367
=============================                              ================
                               Inventory holding gains
                                 (losses) for continuing
    1,938     1,148      (744)   operations                   762     3,547
-----------------------------                              ----------------
                               Profit for the period
                                 from continuing operations
                                 attributable to BP
    7,129     7,188     6,231    shareholders              19,145    18,914
                               Profit (loss) for the
                                 period from Innovene
     (666)       78         -    operations (c)               (25)     (258)
-----------------------------                              ----------------
                               Profit for the period
                                 attributable to BP
    6,463     7,266     6,231    shareholders              19,120    18,656
=============================                              ================
                               RC profit from continuing
                                 operations attributable
    5,191     6,040     6,975    to BP shareholders        18,383    15,367
                               RC profit (loss) from
     (781)       78         -    Innovene operations          (25)     (485)
-----------------------------                              ----------------
    4,410     6,118     6,975  Replacement cost profit     18,358    14,882
=============================                              ================


(a)  In the circumstances of discontinued operations, Accounting Standards
     require that the profits earned by the discontinued operations, in this
     case the Innovene operations, on sales to the continuing operations be
     eliminated on consolidation from the discontinued operations, and
     attributed to the continuing operations and vice versa.  This
     adjustment has two offsetting elements: the net margin on crude refined
     by Innovene as substantially all crude for their refineries was
     supplied by BP and most of the refined products manufactured were taken
     by BP; and the margin on sales of feedstock from BP's US refineries to
     Innovene's manufacturing plants.  The profits attributable to
     individual segments were not affected by this adjustment.  Neither does
     this representation indicate the profits earned by continuing or
     Innovene operations, as if they were stand-alone entities, for past
     periods or likely to be earned in future periods.


(b)  Replacement cost profit reflects the current cost of supplies.  The
     replacement cost profit for the period is arrived at by excluding from
     profit inventory holding gains and losses.  BP uses this measure to
     assist investors to assess BP's performance from period to period.
     Replacement cost profit is not a recognized GAAP measure.  Operating
     cash flow is calculated from the starting point of profit before
     taxation which includes inventory holding gains and losses.  Operating
     cash flow also reflects working capital movements including
     inventories, trade and other receivables and trade and other payables.
     The carrying value of these working capital items will change for
     various reasons, including movements in oil, gas and products prices.


(c)  See further detail in Note 3.


                              Per Share Amounts


     Third     Second      Third
   Quarter    Quarter    Quarter                              Nine Months
      2005       2006       2006                             2006      2005
================================                       =====================
                                  Results for the
                                  period ($m)
     6,463      7,266      6,231  Profit*                  19,120     18,656
     4,410      6,118      6,975  Replacement cost profit  18,358     14,882
--------------------------------                       ---------------------
                                  Shares in issue at
20,984,851 19,993,613 19,815,830  period end (thousand)19,815,830 20,984,851
                                  - ADS equivalent
 3,497,475  3,332,269  3,302,638    (thousand)          3,302,638  3,497,475
                                  Average number of
                                    shares outstanding
21,007,316 20,171,546 19,818,106    (thousand)         20,167,945 21,238,117
                                  - ADS equivalent
 3,501,219  3,361,924  3,303,018    (thousand)          3,361,324  3,539,686
                                  Per ordinary share
                                  (cents)
     30.75      35.94      31.46  Profit for the period     94.80      87.84
                                  RC profit
     21.04      30.28      35.08    for the period          91.02      70.07

                                  Per ADS (cents)
    184.50     215.64     188.76  Profit for the period    568.80     527.04
                                  RC profit
    126.24     181.68     210.48    for the period         546.12     420.42
--------------------------------                       ---------------------


*   Profit attributable to BP shareholders.




                        Exploration and Production

  Third  Second   Third
Quarter Quarter Quarter                                       Nine Months
   2005    2006    2006  $ million                           2006     2005
=======================                                    ===============
  6,535   7,827   9,929  Profit before interest and tax(a) 24,572   18,928
     (1)     (1)      6  Inventory holding (gains) losses      12       (9)
-----------------------                                    ---------------
                         Replacement cost profit
  6,534   7,826   9,935    before interest and tax         24,584   18,919
=======================                                    ===============
                         Results include:
                         Impairment and gain (loss) on sale
   (106)    330   1,962    of businesses and fixed assets   2,301      831
      -       -     (17) Environmental and other provisions   (17)       -
                         Restructuring, integration and
      -       -       -    rationalization costs                -        -
                         Fair value gain (loss) on
    (53)    149     521    embedded derivatives               275     (887)
     12       -       -  Other                                  -       37
-----------------------                                    ---------------
   (147)    479   2,466  Total non-operating items          2,559      (19)
=======================                                    ===============
    177      97     351  Exploration expense                  637      476
                         Of which:
     93      13     232  Exploration expenditure written off  359      224
-----------------------                                    ---------------
                         Production (Net of Royalties)(b)
  2,313   2,355   2,250  Crude oil (mb/d)                   2,323    2,385
    159     176     172  Natural gas liquids (mb/d)           172      176
  2,472   2,531   2,422  Total liquids (mb/d)(c)            2,495    2,561
  7,841   8,624   8,086  Natural gas (mmcf/d)               8,471    8,412
  3,824   4,018   3,816  Total hydrocarbons (mboe/d)(d)     3,954    4,011
=======================                                    ===============
                         Average realizations(e)
  56.83   65.96   67.22  Crude oil ($/bbl)                  63.73    49.07
  36.70   37.80   40.08  Natural gas liquids ($/bbl)        37.81    31.30
  54.80   62.86   64.15  Total liquids ($/bbl)              60.91    47.22
   4.75    4.44    4.49  Natural gas ($/mcf)                 4.83     4.45
  41.68   44.58   45.47  Total hydrocarbons ($/boe)         44.74    36.97
=======================                                    ===============
                         Average oil marker prices($/bbl)
  61.63   69.59   69.60  Brent                              67.02    53.68
  63.18   70.46   70.44  West Texas Intermediate            68.09    55.43
  60.91   68.84   69.02  Alaska North Slope US West Coast   66.28    52.08
=======================                                    ===============
                         Average natural gas marker prices
   8.53    6.80    6.58  Henry Hub gas price ($/mmbtu)(f)    7.45     7.19
                         UK Gas - National
  29.26   34.55   33.72    Balancing Point (p/therm)        46.28    32.42
=======================                                    ===============


(a) Profit from continuing operations and includes profit after interest and
    tax of equity-accounted entities.

(b) Includes BP's share of production of equity-accounted entities.

(c) Crude oil and natural gas liquids.

(d) Natural gas is converted to oil equivalent at 5.8 billion cubic feet =
    1 million barrels.

(e) Based on sales of consolidated subsidiaries only - this excludes equity-
    accounted entities.

(f) Henry Hub First of the Month Index.



                        Exploration and Production

The replacement cost profit before interest and tax for the third quarter was
$9,935 million, an increase of 52% over the third quarter of 2005.  This result
benefited from higher liquid realizations offset by lower gas realizations.  In
addition, it included higher production taxes and higher costs, reflecting the
impacts of sector specific inflation, revenue investment and production growth.
Furthermore, BP's share of the TNK-BP result benefited from a gain of $892
million on the sale of its interest in the Urdmurtneft assets.  Net
non-operating gains for the third quarter were $2,466 million, mainly arising
from net gains on sale of assets of $1,985 million, primarily from the sale of a
pre-development asset in the Gulf of Mexico, and fair value gains of $521
million on embedded derivatives relating to North Sea gas contracts.  The
corresponding quarter in 2005 contained a net non-operating charge of $147
million.

After adjusting for the effect of disposals, production increased by 3% compared
with the third quarter of 2005.  Actual production was broadly flat compared
with the third quarter of 2005.

The replacement cost profit before interest and tax of $24,584 million for the
first nine months represented an increase of 30% over the same period of the
previous year.  This result benefited from higher oil and gas realizations
partially offset by lower volumes, higher production taxes and higher costs
reflecting the impacts of sector specific inflation, increased integrity spend
and repairs, revenue investments and production growth.  The nine months result
included net gains on sales of assets of $2,324 million and net fair value gains
of $275 million on embedded derivatives.  The first nine months of 2005
contained a net non-operating charge of $19 million.

After adjusting for the effect of disposals, production for the first nine
months was up around 1% compared with the first nine months of 2005 as
underlying production growth from major projects in the new profit centres and
TNK-BP offset decline in existing profit centres.  Actual production was down 57
mboe/d from 2005.

In September, we determined that the oil transit lines in the Eastern Operating
Area of Prudhoe Bay could be returned to service for the purposes of in-line
inspection.  We have now returned to service all three flow stations previously
shut down, and current production from Prudhoe Bay is around 400,000 barrels of
oil and natural gas liquids per day (BP has a 26% interest in the Prudhoe Bay
field).  We are still committed to replacing the main oil transit lines (16
miles) in both the Eastern and Western Operating Areas of Prudhoe Bay and expect
to complete this next year.  The effect of reduced production at Prudhoe Bay on
average third quarter production was 27 mboe/d.

Offshore commissioning work on the Thunder Horse platform is proceeding.
Following a series of tests carried out over the past few months, which revealed
metallurgical failures in components of the subsea system, we plan to retrieve
and replace all the subsea components we believe could be at risk.  This work
will be done over the course of the next year and we do not expect production
from Thunder Horse to begin before the middle of 2008.  It is too early to
estimate the additional costs involved in replacing the affected systems.

In our other major projects we continue to make good progress.  In Azerbaijan,
ACG and BTC continue to ramp up.  The Shah Deniz gas field and East Azeri are on
track to start up in the fourth quarter.  In Angola, the FPSO for the Dalia
field is now being moored.

During the quarter, we made a significant oil exploration discovery on the
Kaskida prospect in approximately 5,900 feet of water in the Gulf of Mexico and
in Angola, we announced the Titania discovery, our 11th discovery in Block 31.
In addition we have been awarded the Birbhum coal bed methane licence in India
and have reached agreement to acquire acreage in the UK Central North Sea which
contains two discovered fields and further exploration potential.

During the quarter, we completed the sale of our remaining Gulf of Mexico Shelf
assets which have been subject to pre-emption rights.  In July, we completed the
sale of our 28% interest in the Shenzi discovery in the Gulf of Mexico to
Repsol.  To date we have received $3.8 billion of proceeds from our divestment
activity in 2006. In August, TNK-BP completed the sale of its interest in the
Urdmurtneft assets to Sinopec and we announced the sale of five onshore
properties in South Louisiana.



                         Refining and Marketing


  Third  Second   Third
Quarter Quarter Quarter                                         Nine Months
   2005    2006    2006  $ million                             2006    2005
=======================                                       =============
  3,714   2,992     717  Profit before interest and tax(a)    5,747   7,999
 (1,839) (1,136)    786  Inventory holding (gains) losses      (776) (3,440)
-----------------------                                       -------------
                         Replacement cost profit
  1,875   1,856   1,503    before interest and tax            4,971   4,559
=======================                                       =============
                         Results include:
                         Impairment and gain (loss) on sale
    (14)    112       2    of businesses and fixed assets       678      34
   (140)      -     (33) Environmental and other provisions     (33)   (140)
                         Restructuring, integration and
      -       -       -    rationalization costs                  -       -
                         Fair value gain (loss) on
      -       -       -    embedded derivatives                   -       -
      -    (576)   (400) Other                                 (976)   (733)
-----------------------                                       -------------
   (154)   (464)   (431) Total non-operating items             (331)   (839)
=======================                                       =============
                         Refinery throughputs (mb/d)
    202     162     200  UK                                     158     192
    687     671     622  Rest of Europe                         644     668
  1,328   1,200   1,213  USA                                  1,130   1,360
    296     256     252  Rest of World                          268     300
-----------------------                                       -------------
  2,513   2,289   2,287  Total throughput                     2,200   2,520
=======================                                       =============
   92.6    86.4    82.2  Refining availability (%)(b)          83.2    93.6
=======================                                       =============
                         Oil sales volumes (mb/d)
                         Refined products
    369     354     370  UK                                     356     354
  1,402   1,311   1,367  Rest of Europe                       1,331   1,357
  1,674   1,631   1,609  USA                                  1,613   1,660
    599     579     578  Rest of World                          575     608
-----------------------                                      --------------
  4,044   3,875   3,924  Total marketing sales                3,875   3,979
  2,010   1,682   1,911  Trading/supply sales                 1,932   2,112
-----------------------                                      --------------
  6,054   5,557   5,835  Total refined product sales          5,807   6,091
  2,471   1,996   1,913  Crude oil                            2,160   2,474
-----------------------                                      --------------
  8,525   7,553   7,748  Total oil sales                      7,967   8,565
=======================                                      ==============
                         Global Indicator Refining Margin
                         ($/bbl)(c)
   7.78    5.78    4.54  NWE                                   4.40    5.46
  17.12   17.74   11.47  USGC                                 13.36   11.31
  13.40   14.75   11.50  Midwest                              10.38    8.28
  17.57   21.27   12.30  USWC                                 14.93   15.02
   6.52    6.83    3.58  Singapore                             4.65    5.94
  12.35   12.59    8.40  BP Average                            9.09    8.93
=======================                                      ==============
                         Chemicals production (kte)
    284     298     230  UK                                     831     918
    771     741     776  Rest of Europe                       2,359   2,312
    890     816     883  USA                                  2,488   3,215
  1,674   1,728   1,682  Rest of World                        5,097   4,225
-----------------------                                      --------------
  3,619   3,583   3,571  Total production                    10,775  10,670
=======================                                      ==============


(a) Profit from continuing operations and includes profit after interest and
    tax of equity-accounted entities.

(b) Refining availability is defined as the ratio of units which are
    available for processing, regardless of whether they are actually being
    used, to total capacity.  Where there is planned maintenance, such
    capacity is not regarded as being available.  During the first nine
    months 2006, there was planned maintenance of a substantial part of the
    Texas City refinery.

(c) The Global Indicator Refining Margin (GIM) is the average of regional
    indicator margins weighted for BP's crude refining capacity in each
    region. Each regional indicator margin is based on a single
    representative crude with product yields characteristic of the typical
    level of upgrading complexity. The regional indicator margins may not be
    representative of the margins achieved by BP in any period because of
    BP's particular refinery configurations and crude and product slate.




                         Refining and Marketing

The replacement cost profit before interest and tax for the third quarter was
$1,503 million.  This is compared to $1,875 million for the same period last
year.  The nine months' result was $4,971 million compared to $4,559 million for
the same period last year, up 9%.

The quarter's result included a charge of $431 million for non-operating items.
This includes a further provision of $400 million as a result of the ongoing
review of fatality and personal injury compensation claims associated with the
incident in March 2005 at the Texas City refinery.  In addition, non-operating
items include impairment charges of $90 million, a charge of $33 million in
respect of new, and revisions to existing, environmental and other provisions
and net disposal gains of $92 million.  The non-operating charge for the
corresponding quarter in 2005 was $154 million.

The third quarter's result included a significant gain related to IFRS fair
value accounting effects.  The third quarter of 2005 included a smaller gain.

The results for both the third quarter and the first nine months of 2006,
excluding Texas City, reflect strong operating performance.  The reduction in
the result in respect of Texas City, including the impact on associated
businesses, was some $320 million compared to the third quarter of 2005 and
around $1,400 million compared with the first nine months of 2005.  These
figures exclude the provisions for fatality and personal injury compensation
claims which are treated as non-operating items.  The third quarter result also
reflects the absence of hurricane activity which negatively impacted the third
quarter of 2005.

This quarter's result reflects lower refining margins and reduced supply
optimization benefits driven by lower crude and product prices, particularly
around the end of the quarter.  The quarter's result also included the impact of
higher levels of refining turnaround activity.  Retail margins improved strongly
compared with the third quarter of 2005 due to the steady decline in wholesale
product prices.  The result for the first nine months reflects higher marketing
margins and supply optimization benefits compared with the first nine months of
2005.

Refinery throughputs for the quarter and nine months were 2,287 mb/d and 2,200
mb/d respectively, lower than in the corresponding periods of 2005.  This is
primarily as a result of the phased start-up of production at our Texas City
refinery during 2006.  The recommissioning of the Texas City refinery continues,
with throughput for the quarter averaging 247 mb/d.  Refining availability for
the quarter, excluding Texas City, was 96.3%, higher than in the corresponding
period last year.  Marketing sales were 3,924 mb/d for the third quarter and
3,875 mb/d for the first nine months of the year, compared with 4,044 mb/d and
3,979 mb/d for the corresponding periods in the previous year.

During the quarter, BP announced that it has entered the final planning stage of
a $3 billion investment in Canadian heavy crude oil processing capability at its
Whiting refinery located in northwest Indiana.  The intention is to reconfigure
the Whiting refinery so most of its feedstock can be heavy Canadian crude oil.
Reconfiguring the refinery also has the potential to increase its production of
motor fuels by around 15 percent, which is approximately 1.7 million additional
gallons of gasoline and diesel per day.  Construction is tentatively scheduled
to begin in 2007 and be completed by 2011, pending regulatory approval.



                          Gas, Power and Renewables


  Third  Second   Third
Quarter Quarter Quarter                                         Nine Months
   2005    2006    2006  $ million                             2006    2005
=======================                                       =============
    445     463     152  Profit before interest and tax(a)      853   1,046
    (98)    (10)      -  Inventory holding (gains) losses        53     (98)
-----------------------                                       -------------
                         Replacement cost profit
    347     453     152    before interest and tax              906     948
=======================                                       =============
                         Results include:
                         Impairment and gain (loss) on sale
     (2)     (1)    (65)   of businesses and fixed assets       (66)     81
      6       -       -  Environmental and other provisions       -       6
                         Restructuring, integration and
      -       -       -    rationalization costs                  -       -
                         Fair value gain (loss)
     91     107     (20)   on embedded derivatives               32     200
      -       -       -  Other                                    -       -
-----------------------                                       -------------
     95     106     (85) Total non-operating items              (34)    287
=======================                                       =============


(a)  Profit from continuing operations and includes profit after interest
     and tax of equity-accounted entities.

The replacement cost profit before interest and tax for the third quarter and
nine months was $152 million and $906 million respectively, compared with $347
million and $948 million a year ago.  Included in the result for the quarter was
a charge for non-operating items of $85 million arising from fair value losses
of $20 million on embedded derivatives related to long-term gas contracts, a
charge of $70 million for the impairment of a North American NGL asset and a $5
million gain on disposal.  The corresponding quarter of 2005 included a net
non-operating gain of $95 million, largely comprising fair value gains of $91
million on embedded derivatives.

The third quarter result was 56% lower than the same quarter of 2005.  The
decrease was primarily due to a non-operating charge in the current quarter
compared with a net non-operating gain in the same period last year.  A
significant reduction in the contribution from gas and power marketing and
trading was partly offset by better operational performance in the natural gas
liquids business and a lower charge related to IFRS fair value accounting.
Similarly, the nine month result was marginally lower than the same period in
2005, largely reflecting a net charge for non-operating items compared with a
gain in the same period last year and higher IFRS fair value accounting charges,
partly offset by higher contributions from the operating businesses.

In August, we purchased Greenlight Energy, Inc., a US-based developer of wind
power generation projects.  The purchase will further accelerate the rapid
growth of BP's wind power business in North America.  In Korea, K-power Company
Limited (BP 35%) completed construction of a 1,074MW, LNG-fired combined cycle
power plant near Kwangyang City, which has began full commercial operation.



                        Other Businesses and Corporate

  Third  Second   Third
Quarter Quarter Quarter                                         Nine Months
  2005     2006    2006  $ million                             2006    2005
======================                                        =============

                         Profit (loss) before

  (501)   (192)   (213)    interest and tax(a)                 (620)   (828)

     -      (1)    (48)  Inventory holding (gains) losses       (51)      -

----------------------                                        -------------

                         Replacement cost profit (loss)

  (501)   (193)   (261)    before interest and tax             (671)   (828)

======================                                        =============

                         Results include:
                         Impairment and gain (loss) on sale
     4      21     (10)    of businesses and fixed assets        12      38
  (296)      -      96   Environmental and other provisions      96    (274)
                         Restructuring, integration and
    (6)      -       -     rationalization costs                  -     (77)
                         Fair value gain (loss) on
     8       5      (8)    embedded derivatives                   5     (10)
     -       -       -   Other                                    -       3
----------------------                                       --------------
  (290)     26      78  Total non-operating items               113    (320)
======================                                       ==============


(a)  Profit from continuing operations and includes profit after interest
     and tax of equity-accounted entities.


Other businesses and corporate comprises Finance, the group's aluminium asset,
interest income and costs relating to corporate activities.  The third quarter's
result includes a net gain of $78 million in respect of non-operating items.
This includes a net credit of $96 million in relation to new, and revisions to
existing, environmental and other provisions.  Also included in the result, but
not treated as a non-operating item, is a charge resulting from new, and
revisions to existing, vacant space provisions.



                             Dividends Payable
                                                           June, September
December September December                                  and December
    2005      2006     2006                                2006       2005
===========================                              =================
                            Dividends per ordinary share
   8.925     9.825    9.825   cents                      29.025      26.35
   5.061     5.324    5.241   pence                      15.816      14.63
   53.55     58.95    58.95 Dividends per ADS (cents)    174.15     158.10
---------------------------                              -----------------


BP today announced a dividend of 9.825 cents per ordinary share to be paid in
December.  Holders of ordinary shares will receive 5.241 pence per share and
holders of American Depository Receipts (ADRs) $0.5895 per ADS share.  The
dividend is payable on 4 December to shareholders on the register on 10
November.  Participants in the Dividend Reinvestment Plan (DRIP) or the DRIP
facility in the US Direct Access Plan will receive the dividend in the form of
shares, also on 4 December.



                                Outlook

BP Group Chief Executive, Lord Browne, concluded:

'World economic growth has been sustained.  US economic growth appears to have
slowed compared to the second quarter, but growth in Europe and Asia has been
robust.  The near-term global outlook is for slower but resilient growth.

'Crude oil prices averaged $69.60 per barrel (Dated Brent) in the third quarter
of 2006, similar to the second quarter average and nearly $8 per barrel above
the same period last year.  After peaking above $78 per barrel in early August
prices have declined and in early October were below $60 per barrel.  Ample
inventories, a perceived lessening of geopolitical tensions, and a lack of
hurricane-related disruptions have contributed to the decline.  OPEC members
have announced an intent to reduce production.

'US natural gas prices averaged $6.58/mmbtu (Henry Hub first of month index) in
the third quarter, $0.22/mmbtu below the second quarter average and nearly $2/
mmbtu below the same period last year.  Gas continued to trade at a discount to
residual fuel oil.  Domestic production growth retained its momentum, and
consumption outside the power sector remained sluggish.  Gas in storage at the
end of September was 12% above the five-year average.  Prices should be
supported by seasonally rising winter demand.

'UK gas prices (NBP day-ahead) in the third quarter averaged 33.72 pence per
therm, slightly below the second quarter but 15% above the same period last
year.  Since the peak in late July, prices have fallen significantly,
facilitated by fewer North Sea maintenance closures, LNG imports, and most
recently, the testing of the Langeled pipeline.  Rough storage is full and
import capacity has increased, easing most concerns over winter supply
availability.

'The global average indicator refining margin fell to $8.40/bbl in the third
quarter of 2006, down more than $4/bbl versus the second quarter and by a
similar amount versus the third quarter last year.  Margins were strong in July
and August but fell away sharply during September on the end of the US gasoline
season, limited hurricane activity and growing product inventory levels.  So far
in October, margins have averaged around $5/bbl, and should be underpinned in
the near term by the autumn refinery turnaround programme and demand for
distillates once colder weather arrives.

'Retail margins increased significantly in August and September due to a steady
fall in the cost of product, leaving average retail margins for the third
quarter above the previous two quarters.  More stable raw material costs during
October to date and an increase in competitive pressures suggest that marketing
margins in the fourth quarter are likely to be weaker.

'The UK Government's announced increase in the North Sea supplemental tax rate
has been enacted.  This increase has two effects; first to create a one-time
deferred tax charge and second to increase current tax to reflect the 2006
impact of the higher rate, which is retroactive to the start of the year.  The
full year aggregate effective tax rate is expected to be around 37%.

'Our strategy is unchanged.  We continue to execute it with discipline and
focus.  Production for the year is expected to be around 3.950 mmboe/d, lower
than in 2005 due principally to divestments and the impact of higher prices on
entitlements under Production Sharing Contracts.  Capital expenditure excluding
acquisitions is expected to be around $16 billion for the year.  Divestment
proceeds are expected to be around $6 billion.'



----------------------------------------------------------------------------

Cautionary Statement: The foregoing discussion, in particular the statements
under 'Outlook', contains forward looking statements particularly those
regarding retrieval and replacement of components of the sub-sea system at risk
of metallurgical failure at Thunder Horse; the completion of offshore
commissioning work at, receipt of approvals for and start-up of production from
Thunder Horse; return to service of replaced oil transit lines at Prudhoe Bay;
recommissioning of the Texas City refinery and the timing of the realization of
its full financial potential; the growth of BP's windpower business and  planned
investments in biofuels research, development and marketing; world economic
growth; oil and gas prices; UK oil and gas inventories; refining margins;
marketing margins; the effect of the increase in the North Sea supplemental tax
rate; the aggregate effective tax rate; the sanctioning, timing and effect of
major projects; production; divestments and resulting adjustments to production;
capital expenditure; and divestment proceeds.  By their nature, forward looking
statements involve risks and uncertainties and actual results may differ from
those expressed in such statements depending on a variety of factors including
the following: the timing of bringing new fields on stream; industry product
supply; OPEC policy decisions; demand and pricing; currency exchange rates;
operational problems; general economic conditions including inflationary
pressures; political stability; economic growth and outlook in relevant areas of
the world; changes in governmental regulations; exchange rate fluctuations;
development and use of new technology; the actions of competitors; natural
disasters and other changes in business conditions; prolonged adverse weather
conditions; wars and acts of terrorism or sabotage; and other factors discussed
in this Announcement.  For more information you should refer to our Annual
Report and Accounts 2005 and our 2005 Annual Report on Form 20-F/A filed with
the US Securities and Exchange Commission.

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            The company news service from the London Stock Exchange