3Q06 Part 2 of 2

BP PLC 24 October 2006 BP p.l.c. and Subsidiaries Summarized Group Income Statement Third Second Third Quarter Quarter Quarter Nine Months 2005 2006 2006 2006 2005 ======================= ============== $ million $ million Sales and other operating 66,716 72,132 68,540 revenues (Note 4) 203,960 177,382 Earnings from jointly controlled entities - after 1,020 818 1,878 interest and tax 3,269 2,248 Earnings from associates - 112 114 88 after interest and tax 317 327 113 106 220 Interest and other revenues 524 384 ---------------------- ---------------- 67,961 73,170 70,726 Total revenues 208,070 180,341 Gain on sale of businesses 30 541 2,276 and fixed assets 3,414 1,328 ---------------------- ---------------- 67,991 73,711 73,002 Total revenues and other income 211,484 181,669 46,751 50,427 48,431 Purchases 142,677 119,783 Production and manufacturing 4,590 5,876 6,275 expenses 17,368 14,974 Production and similar taxes 834 855 1,202 (Note 5) 2,989 2,180 Depreciation, depletion and 2,041 2,308 2,194 amortization 6,687 6,420 Impairment and losses on sale 148 80 387 of businesses and fixed assets 489 344 177 97 351 Exploration expense (Note 5) 637 476 Distribution and administration 3,444 3,516 3,630 expenses 10,242 9,693 Fair value (gain) loss on (46) (261) (493) embedded derivatives (312) 697 ---------------------- ---------------- Profit before interest and taxation from continuing 10,052 10,813 11,025 operations 30,707 27,102 144 153 169 Finance costs (Note 6) 513 444 Other finance (income) expense 37 (46) (52) (Note 7) (146) 102 ---------------------- ---------------- Profit before taxation from 9,871 10,706 10,908 continuing operations 30,340 26,556 2,674 3,441 4,614 Taxation 10,984 7,444 ---------------------- ---------------- Profit from continuing 7,197 7,265 6,294 operations 19,356 19,112 Profit (loss) from Innovene (666) 78 - operations (Note 3) (25) (258) ---------------------- ---------------- 6,531 7,343 6,294 Profit for the period 19,331 18,854 ====================== ================ Attributable to: 6,463 7,266 6,231 BP shareholders 19,120 18,656 68 77 63 Minority interest 211 198 ---------------------- ---------------- 6,531 7,343 6,294 19,331 18,854 ====================== ================ Earnings per share - cents Profit for the period attributable to BP shareholders 30.75 35.94 31.46 Basic 94.80 87.84 30.54 35.59 31.40 Diluted 94.12 86.84 Profit from continuing operations attributable to BP shareholders 33.87 35.57 31.46 Basic 94.93 89.05 33.62 35.21 31.40 Diluted 94.24 88.04 Summarized Group Balance Sheet 30 September 31 December 2006 2005 ===================== $ million Non-current assets Property, plant and equipment 87,584 85,947 Goodwill 10,624 10,371 Other intangible assets 5,104 4,772 Investments in jointly controlled entities 15,343 13,556 Investments in associates 5,717 6,217 Other investments 1,754 967 --------------------- Fixed assets 126,126 121,830 Loans 822 821 Other receivables 787 770 Derivative financial instruments 3,182 3,652 Prepayments and accrued income 1,352 1,269 Defined benefit pension plan surplus 4,069 3,282 --------------------- 136,338 131,624 --------------------- Current assets Loans 129 132 Inventories 19,362 19,760 Trade and other receivables 38,570 40,902 Derivative financial instruments 11,632 9,726 Prepayments and accrued income 3,020 1,598 Current tax receivable 172 212 Cash and cash equivalents 3,199 2,960 --------------------- 76,084 75,290 --------------------- Assets classified as held for sale 1,104 - --------------------- Total assets 213,526 206,914 ===================== Current liabilities Trade and other payables 40,589 42,136 Derivative financial instruments 10,339 9,083 Accruals and deferred income 6,303 5,970 Finance debt 9,561 8,932 Current tax payable 4,403 4,274 Provisions 1,218 1,102 --------------------- 72,413 71,497 --------------------- Non-current liabilities Other payables 1,701 1,935 Derivative financial instruments 2,528 3,696 Accruals and deferred income 3,563 3,164 Finance debt 10,412 10,230 Deferred tax liabilities 17,343 16,443 Provisions 10,934 9,954 Defined benefit pension plan and other post-retirement benefit plan deficits 9,562 9,230 --------------------- 56,043 54,652 --------------------- Liabilities directly associated with the assets classified as held for sale - - --------------------- Total liabilities 128,456 126,149 --------------------- Net assets 85,070 80,765 ===================== Equity BP shareholders' equity 84,278 79,976 Minority interest 792 789 --------------------- 85,070 80,765 ===================== Group Statement of Recognized Income and Expense Third Second Third Quarter Quarter Quarter Nine Months 2005 2006 2006 2006 2005 ======================= ============= $ million $ million 216 309 531 Currency translation differences 993 (2,182) Available-for-sale investments 64 (44) 144 marked to market 297 86 Available-for-sale investments - (17) (79) (1) recycled to the income statement (426) (60) (15) 230 (15) Cash flow hedges marked to market 272 (164) Cash flow hedges - recycled to 4 19 (26) the income statement 50 (7) Cash flow hedges - recycled to - - 5 the balance sheet 5 - (17) (15) (166) Taxation (120) 36 ---------------------- ---------------- Net income (expense) recognized 235 420 472 directly in equity 1,071 (2,291) 6,531 7,343 6,294 Profit for the period 19,331 18,854 ---------------------- ---------------- Total recognized income and 6,766 7,763 6,766 expense relating to the period 20,402 16,563 ====================== ================ Attributable to: 6,698 7,686 6,703 BP shareholders 20,191 16,365 68 77 63 Minority interest 211 198 ---------------------- ---------------- 6,766 7,763 6,766 20,402 16,563 ====================== ================ Change in accounting policy - adoption of IAS 32 and 39 on 1 January 2005 (wholly attributable - - - to BP shareholders) - (243) ====================== ================ Movement in BP Shareholders' Equity Movement in BP shareholders' equity $ million At 31 December 2005 79,976 Profit for the period 19,120 Distribution to shareholders (5,759) Currency translation differences (net of tax) 933 Repurchase of ordinary share capital (11,999) Issue of ordinary share capital for employee share schemes 549 Issue of ordinary share capital for TNK-BP 1,250 Purchase of shares by ESOP trusts (202) Share-based payments (net of tax) 246 Available-for-sale investments (net of tax) (93) Cash flow hedges (net of tax) 257 ------ At 30 September 2006 84,278 ====== Summarized Group Cash Flow Statement Third Second Third Quarter Quarter Quarter Nine Months 2005 2006 2006 2006 2005 ======================= ============= $ million $ million Operating activities Profit before taxation from 9,871 10,706 10,908 continuing operations 30,340 26,556 Adjustments to reconcile profits before tax to net cash provided by operating activities 93 13 232 Exploration expenditure written off 359 224 Depreciation, depletion and 2,041 2,308 2,194 amortization 6,687 6,420 Impairment and (gain) loss on sale 118 (461) (1,889) of businesses and fixed assets (2,925) (984) Earnings from jointly controlled (1,132) (932) (1,966) entities and associates (3,586) (2,575) Dividends received from jointly controlled entities and 893 268 2,407 associates 3,686 1,989 Working capital and other (5,718) (2,753) (6,756) movements (11,359) (9,295) ---------------------- ---------------- Net cash provided by operating activities of continuing 6,166 9,149 5,130 operations 23,202 22,335 Net cash provided by operating activities of Innovene 205 - - operations - 147 ---------------------- ---------------- Net cash provided by operating 6,371 9,149 5,130 activities 23,202 22,482 ---------------------- ---------------- Investing activities (3,069) (3,412) (3,945) Capital expenditure (10,652) (8,805) Acquisitions, net of cash - - (102) acquired (102) - Investment in jointly controlled (2) (26) - entities (26) (53) (82) (151) (159) Investment in associates (467) (367) Proceeds from disposal of 226 1,899 2,662 fixed assets 5,045 1,978 Proceeds from disposal of - 90 135 businesses 391 - 11 58 33 Proceeds from loan repayments 163 91 ---------------------- ---------------- Net cash used in (2,916) (1,542) (1,376) investing activities (5,648) (7,156) ---------------------- ---------------- Financing activities (3,661) (4,411) (3,430) Net repurchase of shares (11,702) (7,628) 497 514 706 Proceeds from long-term financing 1,616 1,790 (420) (720) (996) Repayments of long-term financing (1,781) (3,623) Net increase (decrease) in 2,983 941 294 short-term debt 525 966 (1,871) (1,894) (1,943) Dividends paid - BP shareholders (5,759) (5,503) (87) (88) (57) - Minority interest (211) (422) ---------------------- ---------------- Net cash used in financing (2,559) (5,658) (5,426) activities (17,312) (14,420) ---------------------- ---------------- Currency translation differences relating to cash and cash (74) (36) 19 equivalents (3) (83) ---------------------- ---------------- Increase (decrease) in cash 822 1,913 (1,653) and cash equivalents 239 823 Cash and cash equivalents at 1,360 2,939 4,852 beginning of period 2,960 1,359 ---------------------- ---------------- Cash and cash equivalents at 2,182 4,852 3,199 end of period 3,199 2,182 ====================== ================ Summarized Group Cash Flow Statement Third Second Third Quarter Quarter Quarter Nine Months 2005 2006 2006 2006 2005 ======================= ============= $ million $ million Working capital and other movements (86) (122) (141) Interest receivable (393) (251) 81 145 120 Interest received 411 193 144 153 169 Finance costs 513 444 (384) (351) (267) Interest paid (928) (835) 37 (46) (52) Other finance (income) expense (146) 102 66 122 134 Share-based payments 339 222 Net operating charge for pensions and other post-retirement benefits, (21) (47) (36) less contributions (133) (37) Net charge for provisions, 440 216 (115) less payments (106) 884 (Increase) decrease in (3,737) (2,351) 1,477 inventories 134 (6,320) (Increase) decrease in other (10,116) 2,008 (1,616) current and non-current assets 727 (16,041) Increase (decrease) in other current and non-current 10,425 135 (1,763) liabilities (1,735) 18,328 (2,567) (2,615) (4,666) Income taxes paid (10,042) (5,984) ---------------------- ---------------- (5,718) (2,753) (6,756) (11,359) (9,295) ====================== ================ Capital Expenditure and Acquisitions Third Second Third Quarter Quarter Quarter Nine Months 2005 2006 2006 2006 2005 ======================= ============= $ million $ million By business Exploration and Production 221 244 220 UK 646 610 50 74 52 Rest of Europe 195 118 930 1,190 1,160 USA 3,371 2,869 1,292 1,476 2,505 Rest of World (a) 5,409 3,678 ---------------------- ---------------- 2,493 2,984 3,937 9,621 7,275 ---------------------- ---------------- Refining and Marketing 65 83 67 UK 211 205 99 101 149 Rest of Europe 315 277 282 252 289 USA 799 691 115 109 117 Rest of World 333 279 ---------------------- ---------------- 561 545 622 1,658 1,452 ---------------------- ---------------- Gas,Power and Renewables 3 6 17 UK 24 20 4 7 7 Rest of Europe 19 11 22 32 187 USA 239 54 10 19 9 Rest of World 42 26 ---------------------- ---------------- 39 64 220 324 111 ---------------------- ---------------- Other businesses and corporate 92 39 13 UK 71 249 40 - - Rest of Europe - 118 29 80 32 USA 120 146 3 - - Rest of World - 8 ---------------------- ---------------- 164 119 45 191 521 ---------------------- ---------------- 3,257 3,712 4,824 11,794 9,359 ====================== ================ By geographical area 381 372 317 UK 952 1,084 193 182 208 Rest of Europe 529 524 1,263 1,554 1,668 USA 4,529 3,760 1,420 1,604 2,631 Rest of World 5,784 3,991 ---------------------- ---------------- 3,257 3,712 4,824 11,794 9,359 ====================== ================ Included above: - - 106 Acquisitions and asset exchanges 116 151 103 - - Innovene operations - 357 ====================== ================ (a) Third quarter 2006 includes $1 billion for the purchase of shares in Rosneft. Exchange rates US dollar/sterling average rate 1.78 1.83 1.87 for the period 1.82 1.84 1.76 1.81 1.87 US dollar/sterling period-end rate 1.87 1.76 US dollar/euro average rate for 1.22 1.26 1.27 the period 1.24 1.26 1.20 1.25 1.27 US dollar/euro period-end rate 1.27 1.20 ---------------------- ---------------- Analysis of Profit Before Interest and Tax Third Second Third Quarter Quarter Quarter Nine Months 2005 2006 2006 2006 2005 ======================= ============= $ million $ million By business Exploration and Production 939 1,834 1,071 UK 4,070 2,424 301 393 499 Rest of Europe 1,195 1,923 2,071 2,255 3,820 USA 8,379 6,520 3,224 3,345 4,539 Rest of World 10,928 8,061 ---------------------- ---------------- 6,535 7,827 9,929 24,572 18,928 ---------------------- ---------------- Refining and Marketing 315 166 46 UK 57 (10) 1,121 785 387 Rest of Europe 1,858 2,938 1,671 1,526 65 USA 2,419 3,775 607 515 219 Rest of World 1,413 1,296 ---------------------- ---------------- 3,714 2,992 717 5,747 7,999 ---------------------- ---------------- Gas, Power and Renewables (16) 188 (46) UK 70 227 5 (2) (15) Rest of Europe (10) 3 433 257 141 USA 566 660 23 20 72 Rest of World 227 156 ---------------------- ---------------- 445 463 152 853 1,046 ---------------------- ---------------- Other businesses and corporate (144) (80) (327) UK (548) (532) 11 (45) 11 Rest of Europe (35) 45 (361) (37) 81 USA (60) (383) (7) (30) 22 Rest of World 23 42 ---------------------- ---------------- (501) (192) (213) (620) (828) ---------------------- ---------------- 10,193 11,090 10,585 30,552 27,145 (285) (277) 440 Unrealized profit in inventory 155 (442) Net profit on transactions between 144 - - continuing and Innovene operations - 399 ---------------------- ---------------- 10,052 10,813 11,025 Total for continuing operations 30,707 27,102 ---------------------- ---------------- Innovene operations (289) (90) - UK (145) (67) (88) (40) - Rest of Europe (61) 407 (220) (6) - USA 1 (124) (28) 48 - Rest of World 21 (16) ---------------------- ---------------- (625) (88) - (184) 200 Net profit on transactions between (144) - - continuing and Innovene operations - (399) ---------------------- ---------------- (769) (88) - Total for Innovene operations (184) (199) ---------------------- ---------------- 9,283 10,725 11,025 Total for period 30,523 26,903 ====================== ================ By geographical area 1,138 2,148 754 UK 3,674 2,206 1,523 1,059 930 Rest of Europe 2,984 5,175 3,543 3,717 4,491 USA 11,453 10,165 3,848 3,889 4,850 Rest of World 12,596 9,556 ---------------------- ---------------- 10,052 10,813 11,025 Total for continuing operations 30,707 27,102 ====================== ================ Analysis of Replacement Cost Profit Before Interest and Tax Third Second Third Quarter Quarter Quarter Nine Months 2005 2006 2006 2006 2005 ======================= ============= $ million $ million By business Exploration and Production 939 1,834 1,071 UK 4,070 2,424 301 393 499 Rest of Europe 1,195 1,923 2,070 2,254 3,827 USA 8,392 6,511 3,224 3,345 4,538 Rest of World 10,927 8,061 ---------------------- ---------------- 6,534 7,826 9,935 24,584 18,919 ---------------------- ---------------- Refining and Marketing 267 171 138 UK 161 (65) 656 584 765 Rest of Europe 1,913 1,737 533 749 388 USA 1,774 1,893 419 352 212 Rest of World 1,123 994 ---------------------- ---------------- 1,875 1,856 1,503 4,971 4,559 ---------------------- ---------------- Gas, Power and Renewables (16) 188 (46) UK 70 227 (3) (4) (17) Rest of Europe (20) 2 408 250 150 USA 578 630 (42) 19 65 Rest of World 278 89 ---------------------- ---------------- 347 453 152 906 948 ---------------------- ---------------- Other businesses and corporate (144) (80) (327) UK (548) (532) 11 (46) 9 Rest of Europe (40) 45 (361) (37) 35 USA (106) (383) (7) (30) 22 Rest of World 23 42 ---------------------- ---------------- (501) (193) (261) (671) (828) ---------------------- ---------------- 8,255 9,942 11,329 29,790 23,598 (285) (277) 440 Unrealized profit in inventory 155 (442) Net profit on transactions between 144 - - continuing and Innovene operations - 399 ---------------------- ---------------- 8,114 9,665 11,769 Total for continuing operations 29,945 23,555 ---------------------- ---------------- Innovene operations (276) (90) - UK (145) (137) (169) (40) - Rest of Europe (61) 256 (258) (6) - USA 1 (126) (37) 48 - Rest of World 21 (20) ---------------------- ---------------- (740) (88) - (184) (27) Net profit on transactions between (144) - - continuing and Innovene operations - (399) ---------------------- ---------------- (884) (88) - Total for Innovene operations (184) (426) ---------------------- ---------------- 7,230 9,577 11,769 Total for period 29,761 23,129 ====================== ================ By geographical area 1,089 2,153 846 UK 3,778 2,151 1,049 855 1,304 Rest of Europe 3,024 3,972 2,376 2,932 4,784 USA 10,787 8,245 3,600 3,725 4,835 Rest of World 12,356 9,187 ---------------------- ---------------- 8,114 9,665 11,769 Total for continuing operations 29,945 23,555 ====================== ================ Analysis of Non-operating Items Third Second Third Quarter Quarter Quarter Nine Months 2005 2006 2006 2006 2005 ======================= ============= $ million $ million By business Exploration and Production (53) 386 540 UK 532 (1,021) - 83 (27) Rest of Europe 56 1,030 (106) 9 2,016 USA 2,027 (110) 12 1 (63) Rest of World (56) 82 ---------------------- ---------------- (147) 479 2,466 2,559 (19) ---------------------- ---------------- Refining and Marketing (3) (1) (27) UK (8) (18) (53) (29) (18) Rest of Europe 182 (64) (96) (446) (264) USA (614) (725) (2) 12 (122) Rest of World 109 (32) ---------------------- ---------------- (154) (464) (431) (331) (839) ---------------------- ---------------- Gas, Power and Renewables 90 107 (20) UK 32 261 - - - Rest of Europe - - 5 (1) 5 USA 4 26 - - (70) Rest of World (70) - ---------------------- ---------------- 95 106 (85) (34) 287 ---------------------- ---------------- Other businesses and corporate (6) - (25) UK (25) (54) - (1) (2) Rest of Europe (3) 11 (284) 10 105 USA 124 (277) - 17 - Rest of World 17 - ---------------------- ---------------- (290) 26 78 113 (320) ---------------------- ---------------- Total before taxation for continuing (496) 147 2,028 operations 2,307 (891) 167 (53) (803) Taxation credit (charge) (902) 296 ---------------------- ----------------- Total after taxation for continuing (329) 94 1,225 operations 1,405 (595) ---------------------- ---------------- Innovene operations (301) (90) - UK (145) (325) (224) (40) - Rest of Europe (61) (224) (208) (6) - USA 1 (208) (26) 48 - Rest of World 21 (26) ---------------------- ---------------- Total before taxation for Innovene (759) (88) - operations (a) (184) (783) 167 - - Taxation credit (charge) (7) 177 ---------------------- ---------------- Total after taxation for Innovene (592) (88) - operations (191) (606) ---------------------- ---------------- (921) 6 1,225 Total after taxation for period 1,214 (1,201) ====================== ================ (a) Includes the loss on re-measurement to fair value of $88 million in the second quarter of 2006, $96 million in the first quarter of 2006 and $724 million in the third quarter of 2005, and impairment charges of $24 million and $35 million in the first and third quarters of 2005 respectively. Depreciation of Fixed Asset Revaluation Adjustment Third Second Third Quarter Quarter Quarter Nine Months 2005 2006 2006 2006 2005 ======================= ============= $ million $ million Exploration and Production 6 7 13 UK 28 26 64 48 48 USA 151 210 5 4 4 Rest of World 13 13 ---------------------- ---------------- 75 59 65 192 249 ---------------------- ---------------- Refining and Marketing 25 25 25 USA 75 76 ---------------------- ---------------- 25 25 25 75 76 ---------------------- ---------------- Gas, Power and Renewables 6 5 6 USA 17 17 ---------------------- ---------------- 6 5 6 17 17 ---------------------- ---------------- Total depreciation of revaluation 106 89 96 adjustment (a)(b) 284 342 ====================== ================ (a) Relates to the revaluation adjustment consequent upon the ARCO acquisition. (b) Excludes impairment of the revaluation adjustment which is included in non-operating items. Net Debt Ratio - Net Debt: Net Debt + Equity Third Second Third Quarter Quarter Quarter Nine Months 2005 2006 2006 2006 2005 ======================= ============= $ million $ million 22,159 19,286 19,973 Gross debt 19,973 22,159 2,182 4,852 3,199 Cash and cash equivalents 3,199 2,182 ---------------------- ---------------- 19,977 14,434 16,774 Net debt 16,774 19,977 ====================== ================ 82,726 82,356 85,070 Equity 85,070 82,726 19% 15% 16% Net debt ratio 16% 19% ====================== ================ Production and Realizations Third Second Third Quarter Quarter Quarter Nine Months 2005 2006 2006 2006 2005 ======================= ============= Production (a)(d) Crude oil (mb/d) (net of royalties) 224 264 199 UK 244 267 64 60 55 Rest of Europe 60 71 427 444 404 USA 431 511 1,598 1,587 1,592 Rest of World 1,588 1,536 ---------------------- ---------------- 2,313 2,355 2,250 Total crude oil production 2,323 2,385 ====================== ================ Natural gas liquids (mb/d) (net of royalties) 12 16 14 UK 14 16 4 3 3 Rest of Europe 3 4 113 121 119 USA 120 125 30 35 36 Rest of World 35 31 ---------------------- ---------------- 159 176 172 Total natural gas liquids production 172 176 ====================== ================ Liquids (b) (mb/d) (net of royalties) 236 280 213 UK 258 283 68 64 58 Rest of Europe 63 75 540 565 523 USA 551 636 1,628 1,622 1,628 Rest of World 1,623 1,567 ---------------------- ---------------- 2,472 2,531 2,422 Total liquids production 2,495 2,561 ====================== ================ Natural gas (mmcf/d) (net of royalties) 831 911 754 UK 952 1,068 99 83 100 Rest of Europe 92 109 2,456 2,493 2,332 USA 2,436 2,610 4,455 5,138 4,900 Rest of World 4,991 4,625 ---------------------- ---------------- 7,841 8,624 8,086 Total natural gas production 8,471 8,412 ====================== ================ Average realizations(c) Crude oil ($/bbl) 57.77 67.82 64.74 UK 64.34 50.15 56.64 65.37 68.83 USA 64.05 49.15 55.89 64.90 67.05 Rest of World 62.78 47.68 56.83 65.96 67.22 BP Average 63.73 49.07 ====================== ================ Natural gas liquids ($/bbl) 47.49 46.33 46.48 UK 46.94 36.03 36.39 37.32 38.50 USA 36.39 30.15 32.97 35.18 41.15 Rest of World 37.84 32.63 36.70 37.80 40.08 BP Average 37.81 31.30 ====================== ================ Liquids ($/bbl)(b) 57.26 66.61 63.57 UK 63.39 49.35 53.17 60.21 62.95 USA 58.92 46.05 54.63 63.00 65.50 Rest of World 61.25 46.79 54.80 62.86 64.15 BP Average 60.91 47.22 ====================== ================ Natural gas ($/mcf) 4.45 5.67 5.55 UK 6.55 5.01 6.77 5.44 5.51 USA 5.96 5.95 3.43 3.54 3.62 Rest of World 3.70 3.24 4.75 4.44 4.49 BP Average 4.83 4.45 ====================== ================ (a) Includes BP's share of production of equity-accounted entities. (b) Crude oil and natural gas liquids. (c) Based on sales of consolidated subsidiaries only - this excludes equity-accounted entities. (d) Because of rounding, some totals may not agree exactly with the sum of their component parts. Notes 1. Basis of preparation BP prepares its Annual Report and Accounts on the basis of International Financial Reporting Standards (IFRS) as adopted for use by the European Union (EU). The financial information presented herein has been prepared in accordance with the accounting policies expected to be used in preparing the Annual Report and Accounts 2006, which do not differ significantly from those used for the Annual Report and Accounts 2005. 2. Resegmentation and other changes to comparatives With effect from 1 January 2006 the following changes to the business segment boundaries have been implemented: (a) Following the sale of Innovene to INEOS in December 2005, the transfer of three equity-accounted entities (Shanghai SECCO Petrochemical Company Limited in China and Polyethylene Malaysia Sdn Bhd (PEMSB) and Ethylene Malaysia Sdn Bhd (EMSB), both in Malaysia), previously reported in Other businesses and corporate, to Refining and Marketing. (b) The formation of BP Alternative Energy in November 2005 has resulted in the transfer of certain mid-stream assets and activities to Gas, Power and Renewables: o South Houston Green Power (SHGP) co-generation facility (in Texas City refinery) from Refining and Marketing. o Watson Cogeneration (in Carson City refinery) from Refining and Marketing. o Phu My Phase 3 CCGT plant in Vietnam from Exploration and Production. (c) The transfer of Hydrogen for Transport activities from Gas, Power and Renewables to Refining and Marketing. Comparative financial data is shown after these changes. Restated Reported ----------------------------------------- Third Nine Third Nine Quarter Months Quarter Months 2005 2005 2005 2005 ----------------------------------------- $ million Profit before interest and tax Exploration and Production 6,535 18,928 6,536 18,933 Refining and Marketing 3,714 7,999 3,697 8,010 Gas, Power and Renewables 445 1,046 412 990 Other businesses and corporate (501) (828) (452) (788) ----------------------------------------- 10,193 27,145 10,193 27,145 Unrealized profit in inventory (285) (442) (285) (442) Net profit on transactions between continuing and Innovene operations 144 399 144 399 ----------------------------------------- Profit before interest and tax from continuing operations 10,052 27,102 10,052 27,102 ========================================= In 2005 the basis of accounting for over-the-counter forward sale and purchase contracts for oil, natural gas, NGLs and power was changed. These transactions are now reported on a net basis in sales and other operating revenues, whereas previously they had been reported gross in sales and purchases. This change, while reducing sales and other operating revenues and purchases, had no impact on reported profit, profit per ordinary share, cash flow or the balance sheet. During 2006, as part of a continuous process to review how individual contracts are accounted for, certain other minor adjustments have been identified that should have been reflected in the restatement from gross to net presentation. Though these adjustments are not significant to the group income statement, the amendment has been made to bring the comparatives onto a consistent basis. The comparative figures have been amended to reflect these items as set out below. Notes 2. Resegmentation and other changes to comparatives (concluded) Amended ------------------------------- Third Nine Second Quarter Months Quarter 2005 2005 2006 ------------------------------- $ million Sales and other operating revenues Exploration and Production 11,321 32,441 13,495 Refining and Marketing 61,280 160,453 63,373 Gas, Power and Renewables 6,623 18,901 6,091 Other businesses and corporate 161 507 252 ------------------------------- Sales by continuing operations 79,385 212,302 83,211 Less: sales between businesses 8,511 24,723 11,079 sales to continuing operations 4,158 10,197 - ------------------------------- Third party sales of continuing operations 66,716 177,382 72,132 =============================== Purchases 46,751 119,783 50,427 =============================== Reported ------------------------------- Third Nine Second Quarter Months Quarter 2005 2005 2006 ------------------------------- $ million Sales and other operating revenues Exploration and Production 11,321 32,441 13,495 Refining and Marketing 63,278 166,155 64,025 Gas, Power and Renewables 7,219 20,574 5,735 Other businesses and corporate 161 507 252 ------------------------------- Sales by continuing operations 81,979 219,677 83,507 Less: sales between businesses 8,511 24,723 11,079 sales to continuing operations 4,158 10,197 - ------------------------------- Third party sales of continuing operations 69,310 184,757 72,428 =============================== Purchases 49,345 127,158 50,723 =============================== Notes 3. Sale of Olefins and Derivatives business The sale of Innovene, BP's olefins, derivatives and refining group, to INEOS, was completed on 16 December 2005. The Innovene operations represented a separate major line of business for BP. As a result of the sale, these operations were treated as discontinued operations for the year ended 31 December 2005. A single amount was shown on the face of the income statement comprising the post-tax result of discontinued operations and the post-tax loss recognized on the remeasurement to fair value less costs to sell of the discontinued operation. That is, the income and expenses of Innovene were reported separately from the continuing operations of the BP group. The table below provides further detail of the amount shown on the income statement. In the cash flow statement the cash provided by the operating activities of Innovene in 2005 has been separated from that of the rest of the group and reported as a single line item. The period to 30 September 2006 includes a loss before tax of $184 million related to post-closing adjustments and is unchanged since 30 June 2006. Third Second Third Quarter Quarter Quarter Nine Months 2005 2006 2006 2006 2005 ======================= ============== $ million $ million Profit before tax from 99 - - Innovene operations - 924 Net profit on transactions between continuing and (144) - - Innovene operations - (399) ----------------------- -------------- Profit before interest and (45) - - taxation - 525 - - - Other finance income (expense) - 2 (Loss) gain recognized on the (724) (88) - remeasurement to fair value (184) (724) ----------------------- -------------- (769) (88) - (184) (197) Taxation (56) 166 - Related to profit before tax 166 (220) Related to remeasurement to 159 - - fair value (7) 159 ----------------------- -------------- Profit (loss) from Innovene (666) 78 - operations (25) (258) ======================= ============== Earnings (loss) per share from Innovene operations - cents (3.12) 0.37 - Basic (0.13) (1.21) (3.08) 0.38 - Diluted (0.12) (1.20) ======================= ============== The net cash flows of Innovene operations are presented below Net cash provided by operating 205 - - activities - 147 Net cash used in investing (97) - - activities - (361) ----------------------- -------------- Net cash provided by (used in) (108) - - financing activities - 214 ======================= ============== Notes 4. Sales and other operating revenues Third Second Third Quarter Quarter Quarter Nine Months 2005 2006 2006 2006 2005 ======================= ============== $ million $ million By business 11,321 13,495 12,932 Exploration and Production 40,345 32,441 61,280 63,373 61,169 Refining and Marketing 179,079 160,453 6,623 6,091 5,840 Gas, Power and Renewables 18,484 18,901 161 252 212 Other businesses and corporate 670 507 ----------------------- --------------- Sales by continuing 79,385 83,211 80,153 operations 238,578 212,302 8,511 11,079 11,613 Less: sales between businesses 34,618 24,723 sales to Innovene 4,158 - - operations - 10,197 ----------------------- --------------- Third party sales of 66,716 72,132 68,540 continuing operations 203,960 177,382 5,824 - - Innovene sales - 17,118 Less: sales to continuing 2,667 - - operations - 6,806 ----------------------- --------------- Third party sales of 3,157 - - Innovene operations - 10,312 ----------------------- --------------- 69,873 72,132 68,540 Total third party sales 203,960 187,694 ======================= =============== By geographical area 31,809 26,300 27,809 UK 81,842 74,957 16,904 19,406 20,412 Rest of Europe 58,192 49,644 29,184 27,054 27,447 USA 76,567 75,598 11,963 19,067 17,337 Rest of World 54,779 38,935 ----------------------- --------------- Sales by continuing 89,860 91,827 93,005 operations 271,380 239,134 18,986 19,695 24,465 Less: sales between areas 67,420 51,555 sales to Innovene 4,158 - - operations - 10,197 ----------------------- --------------- 66,716 72,132 68,540 203,960 177,382 ======================= =============== 5. Profit before interest and taxation is after charging: Third Second Third Quarter Quarter Quarter Nine Months 2005 2006 2006 2006 2005 ======================= ============== $ million $ million Exploration expense 3 - 7 UK 14 21 1 - - Rest of Europe - 2 120 55 188 USA 309 308 53 42 156 Rest of World 314 145 ----------------------- --------------- 177 97 351 637 476 ======================= =============== Production and similar taxes 95 72 96 UK 403 362 739 783 1,106 Overseas 2,586 1,818 ----------------------- --------------- 834 855 1,202 2,989 2,180 ======================= =============== Notes 6. Finance costs Third Second Third Quarter Quarter Quarter Nine Months 2005 2006 2006 2006 2005 ======================= ============== $ million $ million 237 285 328 Interest payable 906 632 (93) (132) (159) Capitalized (393) (245) ----------------------- --------------- 144 153 169 513 387 Early redemption of finance - - - leases - 57 ----------------------- --------------- 144 153 169 513 444 ======================= =============== 7. Other finance (income) expense Third Second Third Quarter Quarter Quarter Nine Months 2005 2006 2006 2006 2005 ======================= ============== $ million $ million Interest on pension and other post-retirement benefit plan 502 484 489 liabilities 1,444 1,525 Expected return on pension and other post-retirement benefit (528) (599) (610) plan assets (1,791) (1,617) ----------------------- --------------- Interest net of expected return (26) (115) (121) on plan assets (347) (92) Unwinding of discount on 49 61 63 provisions 178 144 Unwinding of discount on deferred consideration for acquisition 14 8 6 of investment in TNK-BP 23 48 ----------------------- --------------- 37 (46) (52) (146) 100 - - - Innovene operations - 2 ----------------------- --------------- 37 (46) (52) Continuing operations (146) 102 ======================= =============== 8. Dividends paid Third Second Third Quarter Quarter Quarter Nine Months 2005 2006 2006 2006 2005 ======================= ============== $ million $ million Dividends per ordinary share 8.925 9.375 9.825 Cents 28.575 25.925 5.119 5.251 5.324 Pence 15.863 14.091 53.55 56.25 58.95 Dividends per ADS (cents) 171.45 155.55 ======================= =============== Notes 9. Analysis of changes in net debt Third Second Third Quarter Quarter Quarter Nine Months 2005 2006 2006 2006 2005 ======================= ============== $ million $ million Opening balance 19,302 18,679 19,286 Finance debt 19,162 23,091 1,360 2,939 4,852 Less: Cash and cash equivalents 2,960 1,359 ----------------------- --------------- 17,942 15,740 14,434 Opening net debt 16,202 21,732 ----------------------- --------------- Closing balance 22,159 19,286 19,973 Finance debt 19,973 22,159 2,182 4,852 3,199 Less: Cash and cash equivalents 3,199 2,182 ----------------------- --------------- 19,977 14,434 16,774 Closing net debt 16,774 19,977 ----------------------- --------------- (2,035) 1,306 (2,340) Decrease (increase) in net debt (572) 1,755 ======================= =============== Movement in cash and cash equivalents (excluding 896 1,949 (1,672) exchange adjustments) 242 906 Net cash outflow (inflow) from financing (excluding (3,060) (734) (5) share capital) (360) 867 - - - Adoption of IAS 39 - (147) 8 60 (515) Fair value hedge adjustment (373) 123 33 26 (34) Other movements 24 135 ----------------------- --------------- Movement in net debt before (2,123) 1,301 (2,226) exchange effects (467) 1,884 88 5 (114) Exchange adjustments (105) (129) ----------------------- --------------- (2,035) 1,306 (2,340) Decrease (increase) in net debt (572) 1,755 ======================= =============== Notes 10. TNK-BP Operational and Financial Information Third Second Third Quarter Quarter Quarter Nine Months 2005 2006 2006 2006 2005 ======================= ============== Production (Net of royalties) (BP share) 930 907 867 Crude oil (mb/d) 890 903 449 538 472 Natural gas (mmcf/d) 525 468 1,007 999 948 Total hydrocarbons (mboe/d)(a) 980 983 ======================= ============== $ million $ million Income statement (BP share) Profit before interest 1,253 1,084 2,321 and tax (b) 4,257 2,788 (37) (45) (52) Interest expense * (140) (98) (347) (348) (651) Taxation (1,349) (741) (46) (46) (100) Minority interest (187) (74) ----------------------- --------------- 823 645 1,518 Net Income 2,581 1,875 ======================= ============== * Excludes unwinding of discount on deferred 14 8 6 consideration 23 48 ======================= ============== Cash Flow 750 - 2,000 Dividends received 2,771 1,425 ======================= ============== Third Second Third Quarter Quarter Quarter Nine Months 2005 2006 2006 2006 2005 ======================= ============== Average oil marker prices ($/bbl) 57.13 64.73 65.90 Urals (NWE - cif) 62.94 49.30 57.39 64.84 65.81 Urals (Med - cif) 62.97 49.75 36.60 36.18 39.83 Domestic Oil 37.11 27.77 ======================= ============== Balance sheet 30 September 31 December 2006 2005 ======================= Investments in jointly controlled entities 8,670 8,089 ======================= Deferred consideration Due within one year - 1,227 Due after more than one year - - ----------------------- - 1,227 ======================= (a) Natural gas is converted to oil equivalent at 5.8 billion cubic feet = 1 million barrels. (b) Third quarter 2006 includes a net gain of $892 million on the disposal of the Udmurtneft assets. As reported in previous quarters, various TNK-BP companies have received tax notifications. Upon entering into the joint venture arrangement, each party received indemnities from its co-venturers in respect of historical tax liabilities related to assets contributed to the joint venture. BP believes its provisions are adequate for its share of any liabilities arising from tax claims not covered by these indemnities. Notes 11. Equity-accounted entities The group's profit for the period includes the following in respect of equity-accounted entities. RC profit Profit (loss) Inventory (loss) before holding before interest gains interest and tax (losses) and tax --------------------------------------- $ million Third Quarter 2006 Exploration and Production 2,727 1 2,728 Refining and Marketing 138 8 146 Gas, Power and Renewables 56 - 56 Other businesses and corporate - - - --------------------------------------- Continuing operations 2,921 9 2,930 Innovene operations - - - --------------------------------------- 2,921 9 2,930 ======================================= Second Quarter 2006 Exploration and Production 1,369 - 1,369 Refining and Marketing 106 3 109 Gas, Power and Renewables 55 - 55 Other businesses and corporate 1 - 1 --------------------------------------- Continuing operations 1,531 3 1,534 Innovene operations - - - --------------------------------------- 1,531 3 1,534 ======================================= Third Quarter 2005 Exploration and Production 1,522 - 1,522 Refining and Marketing 162 4 166 Gas, Power and Renewables 25 - 25 Other businesses and corporate - - - --------------------------------------- Continuing operations 1,709 4 1,713 Innovene operations - - - --------------------------------------- 1,709 4 1,713 ======================================= Nine Months 2006 Exploration and Production 5,245 1 5,246 Refining and Marketing 339 17 356 Gas, Power and Renewables 140 - 140 Other businesses and corporate (1) - (1) --------------------------------------- Continuing operations 5,723 18 5,741 Innovene operations - - - --------------------------------------- 5,723 18 5,741 ======================================= Nine Months 2005 Exploration and Production 3,522 - 3,522 Refining and Marketing 304 (15) 289 Gas, Power and Renewables 50 - 50 Other businesses and corporate - - - --------------------------------------- Continuing operations 3,876 (15) 3,861 Innovene operations 3 - 3 --------------------------------------- 3,879 (15) 3,864 ======================================= Notes 11. Equity-accounted entities (continued) Profit (loss) Minority for the Interest Tax interest period ---------------------------------------- $ million Third Quarter 2006 Exploration and Production (87) (723) (100) 1,818 Refining and Marketing (20) (25) - 101 Gas, Power and Renewables (5) (4) - 47 Other businesses and corporate - - - - --------------------------------------- Continuing operations (112) (752) (100) 1,966 Innovene operations - - - - --------------------------------------- (112) (752) (100) 1,966 ======================================= Second Quarter 2006 Exploration and Production (78) (436) (46) 809 Refining and Marketing (19) (13) - 77 Gas, Power and Renewables (6) (4) - 45 Other businesses and corporate - - - 1 --------------------------------------- Continuing operations (103) (453) (46) 932 Innovene operations - - - - --------------------------------------- (103) (453) (46) 932 ======================================= Third Quarter 2005 Exploration and Production (63) (421) (46) 992 Refining and Marketing (23) (23) - 120 Gas, Power and Renewables (1) (4) - 20 Other businesses and corporate - - - - --------------------------------------- Continuing operations (87) (448) (46) 1,132 Innovene operations - - - - --------------------------------------- (87) (448) (46) 1,132 ======================================= Nine Months 2006 Exploration and Production (237) (1,598) (187) 3,224 Refining and Marketing (58) (48) - 250 Gas, Power and Renewables (15) (12) - 113 Other businesses and corporate - - - (1) --------------------------------------- Continuing operations (310) (1,658) (187) 3,586 Innovene operations - - - - --------------------------------------- (310) (1,658) (187) 3,586 ======================================= Nine Months 2005 Exploration and Production (171) (937) (74) 2,340 Refining and Marketing (37) (54) - 198 Gas, Power and Renewables (6) (7) - 37 Other businesses and corporate - - - - --------------------------------------- Continuing operations (214) (998) (74) 2,575 Innovene operations - - - 3 --------------------------------------- (214) (998) (74) 2,578 ======================================= Notes 12. Fourth quarter results BP's fourth quarter results will be announced on 6 February 2007. 13. Statutory accounts The financial information shown in this publication is unaudited and does not constitute statutory accounts. The 2005 Annual Report and Accounts have been delivered to the UK Registrar of Companies; the report of the auditors on those accounts (in accordance with section 235 of the Companies Act 2005) was unqualified. Contacts London United States Press Office Roddy Kennedy Ronnie Chappell +44 (0)20 7496 4624 +1 281 366 5174 Investor Relations Fergus MacLeod Rachael MacLean +44 (0)20 7496 4717 +1 212 451 8072 http://www.bp.com/investors This information is provided by RNS The company news service from the London Stock Exchange

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