3rd Quarter Results Part 2
BP PLC
6 November 2001
PART 2
BP p.l.c. and Subsidiaries
Summarized Group Results
Third Second Third
Quarter Quarter Quarter Nine Months
2000 2001 2001 2001 2000
======================= ==============
$ million $ million
3,552 3,441 2,641 Exploration and Production 10,762 9,774
132 173 130 Gas and Power 415 388
964 1,477 1,003 Refining and Marketing 3,233 2,731
263 9 105 Chemicals 195 842
(216) (128) (122) Other businesses and corporate (377) (742)
----------------------- --------------
Total replacement cost
4,695 4,972 3,757 operating profit 14,228 12,993
Profit (loss) on sale of
fixed assets and businesses and
138 171 184 termination of operations (Note 4) 573 142
----------------------- --------------
Replacement cost profit before
4,833 5,143 3,941 interest and tax 14,801 13,135
544 40 (405) Stock holding gains (losses)(Note 6) (603) 1,289
----------------------- --------------
Historical cost profit before
5,377 5,183 3,536 interest and tax 14,198 14,424
460 441 369 Interest expense (Note 7) 1,256 1,159
----------------------- --------------
4,917 4,742 3,167 Profit before taxation 12,942 13,265
1,554 1,550 1,212 Taxation (Note 8) 4,480 3,730
----------------------- --------------
3,363 3,192 1,955 Profit after taxation 8,462 9,535
12 21 15 Minority shareholders' interest 47 75
----------------------- --------------
3,351 3,171 1,940 Profit for the period 8,415 9,460
----------------------- --------------
1,185 1,236 1,232 Distribution to shareholders 3,646 3,447
======================= ==============
Earnings per ordinary share - cents
14.85 14.12 8.66 Basic 37.48 44.32
14.75 14.04 8.59 Diluted 37.24 44.01
======================= ==============
Replacement Cost Results
Historical cost profit
3,351 3,171 1,940 for the period 8,415 9,460
(544) (40) 405 Stock holding (gains) losses 603 (1,289)
----------------------- --------------
Replacement cost profit
2,807 3,131 2,345 for the period 9,018 8,171
140 (99) 10 Exceptional items, net of tax (194) 244
----------------------- --------------
Replacement cost profit before
2,947 3,032 2,355 exceptional items 8,824 8,415
----------------------- --------------
Earnings per ordinary share - cents
On replacement cost profit before
13.04 13.51 10.50 exceptional items 39.30 39.42
======================= =============
Summarized Group Balance Sheet
30 September 31 December
2001 2000
---------------------
$ million
Fixed assets
Intangible assets 16,353 16,893
Tangible assets 77,624 75,173
Investments 11,542 11,753
---------------------
105,519 103,819
---------------------
Current assets
Business held for resale - 636
Stocks 9,027 9,234
Debtors 28,151 28,418
Investments 519 661
Cash at bank and in hand 1,438 1,170
---------------------
39,135 40,119
Creditors - amounts falling due within one year
Finance debt 6,625 6,418
Other creditors 30,449 30,729
---------------------
Net current assets 2,061 2,972
---------------------
Total assets less current liabilities 107,580 106,791
Creditors - amounts falling due
after more than one year
Finance debt 13,849 14,772
Other creditors 3,803 5,223
Provisions for liabilities and charges 12,819 12,795
---------------------
Net assets 77,109 74,001
Minority shareholders' interest 646 585
---------------------
BP shareholders' interest 76,463 73,416
=====================
Movement in BP shareholders' interest: $ million
At 31 December 2000 73,416
Profit for the period 8,415
Distribution to shareholders (3,646)
Currency translation differences (592)
Employee share schemes 168
Share buy-back (1,182)
Redemption of ARCO preference shares (116)
------
At 30 September 2001 76,463
======
Summarized Group Cash Flow Statement
Third Second Third
Quarter Quarter Quarter Nine Months
2000 2001 2001 2001 2000
======================= ============
$ million $ million
Net cash inflow from
6,604 5,076 5,046 operating activities (a) 16,862 14,637
----------------------- ---------------
118 54 26 Dividends from joint ventures 92 645
----------------------- ---------------
Dividends from
100 159 155 associated undertakings 424 274
----------------------- ---------------
Servicing of finance and returns
on investments
195 59 23 Interest received 173 344
(315) (384) (308) Interest paid (1,053) (883)
9 30 59 Dividends received 97 12
Dividends paid to
(12) (5) (11) minority shareholders (16) (20)
----------------------- ---------------
Net cash outflow from servicing of
(123) (300) (237) finance and returns on investments (799) (547)
----------------------- ---------------
Taxation
(177) (169) (231) UK corporation tax (604) (441)
(2,532) (2,213) (486) Overseas tax (2,634) (3,758)
----------------------- ---------------
(2,709) (2,382) (717) Tax paid (3,238) (4,199)
----------------------- ---------------
Capital expenditure
(2,226) (3,016) (2,933) Payments for fixed assets (8,526) (6,412)
Proceeds from the sale
1,524 232 824 of fixed assets 1,750 2,112
----------------------- ---------------
Net cash outflow for
capital expenditure and
(702) (2,784) (2,109) financial investment (6,776) (4,300)
----------------------- -------------
Acquisitions and disposals
Investments in associated
(456) (148) (139) undertakings (407) (897)
(5,095) (560) (48) Acquisitions, net of cash acquired (608) (4,704)
(95) (72) (144) Net investment in joint ventures (277) (218)
1,106 - 307 Proceeds from the sale of businesses 307 7,931
----------------------- ---------------
Net cash (outflow) inflow for
(4,540) (780) (24) acquisitions and disposals (985) 2,112
----------------------- ---------------
(1,128) (1,179) (1,235) Equity dividends paid (3,595) (3,232)
----------------------- ---------------
(2,380) (2,136) 905 Net cash inflow (outflow) 1,985 5,390
======================= ===============
1,068 (1,669) 630 Financing (b) 1,827 4,472
(1,755) (404) (44) Management of liquid resources (146) 610
(1,693) (63) 319 Increase (decrease) in cash 304 308
----------------------- ---------------
(2,380) (2,136) 905 1,985 5,390
======================= ===============
Analysis of Cash Flow
Third Second Third
Quarter Quarter Quarter Nine Months
2000 2001 2001 2001 2000
======================= ==============
$ million $ million
(a) Reconciliation of historical
cost profit before interest
and tax to net cash inflow
from operating activities
Historical cost profit before
5,377 5,183 3,536 interest and tax 14,198 14,424
2,093 2,103 2,077 Depreciation and amounts provided 6,320 5,221
Exploration expenditure
51 22 23 written off 153 191
Share of profits of joint ventures
(515) (282) (278) and associated undertakings (891) (1,503)
(121) (127) (116) Interest and other income (346) (281)
(Profit) loss on sale of fixed
(136) (171) (184) assets and businesses (573) (118)
232 541 115 Charge for provisions 821 669
(210) (329) (263) Utilization of provisions (898) (543)
(398) (371) 135 Decrease (increase) in stocks 122 (1,264)
(49) (399) 2,216 Decrease (increase) in debtors 748 (3,635)
280 (1,094) (2,215) (Decrease) increase in creditors (2,792) 1,476
----------------------- ---------------
Net cash inflow from
6,604 5,076 5,046 operating activities 16,862 14,637
======================= ===============
(b) Financing
(132) (505) (7) Long-term borrowing (1,029) (1,584)
483 1,034 988 Repayments of long-term borrowing 2,168 994
(345) (2,589) (743) Short-term borrowing (3,493) (1,048)
Repayments of short-term
610 172 40 borrowing 3,167 4,673
----------------------- ---------------
616 (1,888) 278 813 3,035
(102) (64) (48) Issue of ordinary share capital (168) (241)
Repurchase of ordinary
554 283 400 share capital 1,182 1,383
- - - Stamp duty reserve tax - 295
----------------------- ---------------
Net cash outflow
1,068 (1,669) 630 (inflow) from financing 1,827 4,472
======================= ===============
Capital Expenditure and Acquisitions
Third Second Third
Quarter Quarter Quarter Nine Months
2000 2001 2001 2001 2000
======================= =============
$ million $ million
By business
Exploration and Production
159 289 326 UK 783 599
50 86 79 Rest of Europe 230 110
1,082 1,243 1,123 USA 3,293 2,282
562 805 891 Rest of World 2,402 1,267
----------------------- --------------
1,853 2,423 2,419 6,708 4,258
----------------------- --------------
Gas and Power
78 6 37 UK(a) 51 108
1 12 16 Rest of Europe 37 3
37 29 11 USA(b) 48 68
9 4 10 Rest of World 14 30
----------------------- --------------
125 51 74 150 209
----------------------- --------------
Refining and Marketing
4,098 67 89 UK(c)(d) 267 5,016
1,275 114 10 Rest of Europe(d) 171 1,384
30 227 281 USA 688 440
90 79 62 Rest of World 173 253
----------------------- --------------
5,493 487 442 1,299 7,093
----------------------- --------------
Chemicals
122 63 50 UK 179 410
28 538 69 Rest of Europe(e) 623 95
92 96 119 USA 293 183
60 69 112 Rest of World 237 385
----------------------- --------------
302 766 350 1,332 1,073
----------------------- --------------
1,814 69 78 Other businesses and corporate(f) 207 2,514
----------------------- --------------
9,587 3,796 3,363 9,696 15,147
======================= ==============
By geographical area
4,547 448 541 UK 1,383 6,294
1,354 758 181 Rest of Europe 1,078 1,598
2,965 1,628 1,564 USA 4,402 4,735
721 962 1,077 Rest of World 2,833 2,520
----------------------- --------------
9,587 3,796 3,363 9,696 15,147
======================= ==============
Capital Expenditure and Acquisitions (continued)
(a) 3Q and nine months 2000 included $63 million for the first instalment on
two LNG ships and nine months 2000 also included investment in Great
Yarmouth Power Station.
(b) Nine months 2000 included investment in Green Mountain Energy Company.
(c) 3Q 2000 included $3,817 million and nine months 2000 included $4,686
million for the purchase of Burmah Castrol's issued share capital.
(d) 3Q and nine months 2000 included $1,450 million for the acquisition of the
Mobil share of the European Joint Venture.
(e) 2Q and nine months 2001 included the acquisition of Bayer's 50% interest
in Erdolchemie.
(f) 3Q and nine months 2000 included $1,688 million for the acquisition of the
minority interest in Vastar. Nine months 2000 also included $578 million
for the acquisition of a 2.2% interest in PetroChina.
Analysis of Replacement Cost Operating Profit
Third Second Third
Quarter Quarter Quarter Nine Months
2000 2001 2001 2001 2000
======================= =============
$ million $ million
By business
Exploration and Production
997 970 729 UK 2,853 2,961
221 190 188 Rest of Europe 604 594
1,247 1,214 850 USA 4,189 3,436
1,087 1,067 874 Rest of World 3,116 2,783
----------------------- --------------
3,552 3,441 2,641 10,762 9,774
----------------------- --------------
Gas and Power
14 39 36 UK 87 13
28 34 24 Rest of Europe 120 94
14 96 89 USA 220 75
76 4 (19) Rest of World (12) 206
----------------------- -------------
132 173 130 415 388
----------------------- -------------
Refining and Marketing
63 (116) (51) UK (278) 244
233 177 222 Rest of Europe 535 399
600 1,275 696 USA 2,578 1,823
68 141 136 Rest of World 398 265
----------------------- -------------
964 1,477 1,003 3,233 2,731
----------------------- -------------
Chemicals
(17) (33) (58) UK (141) (81)
75 19 87 Rest of Europe 186 271
161 (1) 59 USA 71 525
44 24 17 Rest of World 79 127
----------------------- -------------
263 9 105 195 842
----------------------- -------------
(216) (128) (122) Other businesses and corporate (377) (742)
----------------------- --------------
4,695 4,972 3,757 14,228 12,993
======================= ==============
By geographical area
999 814 552 UK 2,293 2,939
578 429 512 Rest of Europe 1,426 1,405
1,856 2,512 1,582 USA 6,806 5,270
1,262 1,217 1,111 Rest of World 3,703 3,379
----------------------- --------------
4,695 4,972 3,757 14,228 12,993
======================= ==============
US dollar/Sterling exchange rates
1.48 1.42 1.44 Average rate for the period 1.44 1.54
1.46 1.41 1.48 Period-end rate 1.48 1.46
======================= =============
Notes
1. Business held for resale
The sale of Foseco was completed during the third quarter. The other
former Burmah Castrol chemicals businesses originally categorized as
businesses held for resale will for now be retained and have been included
within the Chemicals segment from 1 July 2001.
2. Turnover
Third Second Third
Quarter Quarter Quarter Nine Months
2000 2001 2001 2001 2000
======================= ==============
$ million $ million
By business
8,195 7,441 6,335 Exploration and Production 22,893 21,977
5,481 10,435 9,241 Gas and Power 31,756 12,460
31,311 34,257 30,925 Refining and Marketing 93,705 75,175
2,798 3,073 3,272 Chemicals 9,034 8,493
Other businesses
106 194 204 and corporate 567 198
----------------------- ---------------
47,891 55,400 49,977 157,955 118,303
Less: sales between
5,260 6,991 6,397 businesses 20,554 14,803
----------------------- ---------------
42,631 48,409 43,580 Group excluding JVs 137,401 103,500
2,231 280 306 Sales of joint ventures 874 13,480
----------------------- ---------------
44,862 48,689 43,886 138,275 116,980
======================= ===============
By geographical area
Group excluding JVs
11,956 11,974 12,272 UK 36,186 33,418
5,603 10,043 9,026 Rest of Europe 28,044 9,336
21,513 24,791 21,375 USA 68,657 52,061
8,271 8,929 8,006 Rest of World 26,626 21,608
----------------------- ---------------
47,343 55,737 50,679 159,513 116,423
Less: sales between
4,712 7,328 7,099 areas 22,112 12,923
----------------------- ---------------
42,631 48,409 43,580 137,401 103,500
----------------------- ---------------
Sales of joint ventures
540 - - UK - 3,314
1,951 - - Rest of Europe - 12,316
24 100 49 USA 236 183
240 180 257 Rest of World 638 489
------------------------ --------------
2,755 280 306 874 16,302
Less: sales between
524 - - areas - 2,822
----------------------- --------------
2,231 280 306 874 13,480
======================== ==============
Notes
3. Operating profits are after charging:
Third Second Third
Quarter Quarter Quarter Nine Months
2000 2001 2001 2001 2000
======================= =============
$ million $ million
Exploration expense
- - 1 UK 5 23
20 3 10 Rest of Europe 15 32
60 40 41 USA 174 185
63 38 34 Rest of World 142 202
----------------------- --------------
143 81 86 336 442
======================= ==============
Production taxes (a)
171 135 80 UK petroleum revenue tax 453 545
340 298 257 Overseas production taxes 900 952
----------------------- --------------
511 433 337 1,353 1,497
======================= ==============
(a) Production taxes are charged against Exploration and Production's
operating profit and are not included in the charge for taxation in
Note 8.
4. Analysis of exceptional items
9 319 3 Exploration and Production 280 215
(1) - - Gas and Power (1) (1)
161 (59) 247 Refining and Marketing 453 185
(30) (80) (81) Chemicals (167) (240)
(1) (9) 15 Other businesses and corporate 8 (17)
----------------------- -------------
Profit (loss) on sale of fixed
assets and businesses and
138 171 184 termination of operations 573 142
(278) (72) (194) Taxation charge (379) (386)
----------------------- -------------
Exceptional items
(140) 99 (10) after taxation 194 (244)
======================= =============
5. 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
6. Stock holding gains (losses)
Third Second Third
Quarter Quarter Quarter Nine Months
2000 2001 2001 2001 2000
======================= =============
$ million $ million
3 (9) (1) Exploration and Production (1) 5
- (33) (17) Gas and Power (61) 22
524 99 (301) Refining and Marketing (445) 1,140
17 (17) (86) Chemicals (96) 122
---------------------- --------------
544 40 (405) (603) 1,289
====================== ==============
7. Interest expense
384 363 292 Group interest payable(a) 1,022 950
(32) (21) (19) Capitalized (74) (77)
----------------------- --------------
352 342 273 948 873
24 13 16 Joint ventures 49 59
36 36 33 Associated undertakings 109 98
Unwinding of discount
48 50 47 on provisions 150 129
----------------------- --------------
460 441 369 1,256 1,159
======================= ==============
(a) Includes charges relating
to the early redemption
- 50 2 of debt 62 -
----------------------- --------------
8. Charge for taxation
269 250 244 UK 766 873
1,285 1,300 968 Overseas 3,714 2,857
----------------------- --------------
1,554 1,550 1,212 4,480 3,730
======================= ==============
Notes
9. Analysis of changes in net debt
Third Second Third
Quarter Quarter Quarter Nine Months
2000 2001 2001 2001 2000
======================= ==============
$ million $ million
Opening balance
19,187 18,788 20,498 Finance debt 21,190 14,544
3,313 1,188 1,103 Less: Cash 1,170 1,331
2,616 959 563 Current asset investments 661 220
----------------------- --------------
13,258 16,641 18,832 Opening net debt 19,359 12,993
----------------------- --------------
Closing balance
19,688 20,498 20,474 Finance debt 20,474 19,688
1,607 1,103 1,438 Less: Cash 1,438 1,607
862 563 519 Current asset investments 519 862
----------------------- ---------------
17,219 18,832 18,517 Closing net debt 18,517 17,219
----------------------- ---------------
Decrease (increase)
(3,961) (2,191) 315 in net debt 842 (4,226)
======================= ==============
Movement in cash/
(1,693) (63) 319 bank overdrafts 304 308
(Decrease) increase in
(1,755) (404) (43) current asset investments (145) 610
Net cash outflow (inflow)
from financing(excluding
616 (1,888) 278 share capital) 813 3,035
(27) 51 (102) Other movements (20) (20)
(949) (47) - Debt acquired (47) (8,072)
----------------------- --------------
Movement in net debt before
(3,808) (2,351) 452 exchange effects 905 (4,139)
(153) 160 (137) Exchange adjustments (63) (87)
----------------------- --------------
Decrease (increase)
(3,961) (2,191) 315 in net debt 842 (4,226)
======================= ==============
Notes
10. Consolidated statement of cash flows presented on a US GAAP format
Third Second Third
Quarter Quarter Quarter Nine Months
2000 2001 2001 2001 2000
======================= ==============
$ million $ million
Operating activities
3,363 3,192 1,955 Profit after taxation 8,462 9,535
Adjustments to reconcile
profits after tax to net
cash provided by
operating activities
Depreciation and
2,093 2,103 2,077 amounts provided 6,320 5,221
Exploration expenditure
51 22 23 written off 153 191
Share of (profit) loss of
joint ventures and associates
(187) 38 17 less dividends received (8) (299)
(Profit) loss on sale of
(136) (171) (184) businesses and fixed assets (573) (118)
Working capital movement
281 (2,683) 561 (see analysis below) (768) (2,270)
(1,431) 132 (145) Other (154) (1,257)
----------------------- ---------------
Net cash provided by
4,034 2,633 4,304 operating activities 13,432 11,003
----------------------- ---------------
Investing activities
(2,258) (3,037) (2,952) Capital expenditures (8,600) (6,489)
Acquisitions, net of
(5,095) (560) (48) cash acquired (608) (4,704)
Investment in
(456) (148) (139) associated undertakings (407) (897)
Net investment in
(95) (72) (144) joint ventures (277) (218)
Proceeds from
2,630 232 1,131 disposal of assets 2,057 10,043
----------------------- --------------
Net cash from
(5,274) (3,585) (2,152) investing activities (7,835) (2,265)
----------------------- --------------
Notes
10. Consolidated statement of cash flows presented on a US GAAP format
(continued)
Third Second Third
Quarter Quarter Quarter Nine Months
2000 2001 2001 2001 2000
======================= ==============
$ million $ million
Financing activities
Net proceeds from shares
(452) (219) (352) issued (repurchased) (1,014) (1,437)
Proceeds from
132 505 7 long-term financing 1,029 1,584
Repayments of
(483) (1,034) (988) long-term financing (2,168) (994)
Net increase (decrease)
(265) 2,417 703 in short-term debt 326 (3,625)
Dividends paid
(1,128) (1,179)(1,235) - BP shareholders (3,595) (3,232)
(12) (5) (11) - Minority shareholders (16) (20)
----------------------- -------------
Net cash used in
(2,208) 485 (1,876) financing activities (5,438) (7,724)
----------------------- --------------
Currency translation
differences relating to
(12) (14) 15 cash and cash equivalents (33) -
----------------------- --------------
Increase (decrease) in
(3,460) (481) 291 cash and cash equivalents 126 1,014
----------------------- --------------
Cash and cash equivalents
5,929 2,147 1,666 at beginning of period 1,831 1,455
----------------------- --------------
Cash and cash equivalents
2,469 1,666 1,957 at end of period 1,957 2,469
----------------------- --------------
Analysis of working
capital movement
(398) (371) 135 Decrease (increase) in stocks 122 (1,264)
Decrease (increase)
(57) (502) 2,249 in debtors 703 (3,597)
(Decrease) increase
736 (1,810)(1,823) in creditors (1,593) 2,591
----------------------- --------------
Total working
281 (2,683) 561 capital movement (768) (2,270)
======================= ==============
Notes
11. Ordinary shares
Shares in issue at 30 September 2001 = 22,442.5 million.
Average number of shares outstanding during January-September 2001 =
22,449.0 million (i.e. excludes shares held by the Employee Share
Ownership Plans). Each BP ADS represents six BP Ordinary Shares.
12. Statutory accounts
The financial information shown in this publication is unaudited and does
not constitute statutory accounts. The 2000 group accounts have been
delivered to the UK Registrar of Companies; the report of the auditors on
those accounts was unqualified.
Contacts
London New York Frankfurt
------------------- ---------------- --------------------
Press Roddy Kennedy Ian Fowler
Office +44 (0)20 7496 4624 +1 212 451 8008
Investor Greg Coleman 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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