3rd Quarter Results part 2 of

RNS Number : 4042B

BP PLC

27 October 2009

 



Top of page 9

Group income statement

Third		Second		Third
quarter		quarter		quarter				Nine months
2008		2009		2009				2009		2008
						$ million
103,174		54,777		66,218		Sales and other operating revenues (Note 2)		168,291		299,666
						Earnings from jointly controlled entities -
1,172		357		359		after interest and tax		936		3,899
						Earnings from associates - after
155		714		920		interest and tax		1,919		631
135		191		157		Interest and other income		551		566
						Gains on sale of businesses and
193		522		202		fixed assets		805		1,197
104,829		56,561		67,856		Total revenues and other income		172,502		305,959
77,234		36,007		46,787		Purchases		113,571		217,122
7,549		5,997		5,929		Production and manufacturing expenses		18,033		21,756
1,886		673		663		Production and similar taxes (Note 3)		1,797		5,794
2,653		3,092		2,991		Depreciation, depletion and amortization		8,906		8,285
						Impairment and losses on sale of
54		216		157		businesses and fixed assets		510		117
232		347		378		Exploration expense		844		643
3,794		3,290		3,420		Distribution and administration expenses		10,059		11,667
						Fair value (gain) loss on embedded
(1,098)		(154)		(370)		derivatives		(710)		1,673
12,525		7,093		7,901		Profit before interest and taxation		19,492		38,902
391		274		266		Finance costs		858		1,178
						Net finance expense (income) relating
						to pensions and other post-retirement
(153)		47		45		benefits		142		(473)
12,287		6,772		7,590		Profit before taxation		18,492		38,197
4,101		2,343		2,235		Taxation		6,111		13,329
8,186		4,429		5,355		Profit for the period		12,381		24,868
						Attributable to
8,049		4,385		5,336		BP shareholders		12,283		24,501
137		44		19		Minority interest		98		367
8,186		4,429		5,355				12,381		24,868
						Earnings per share - cents (Note 4)
						Profit for the period attributable to
						BP shareholders
42.93		23.41		28.48		Basic		65.58		130.21
42.56		23.16		28.18		Diluted		64.91		129.04

Top of page 10

Group statement of comprehensive income

Third		Second		Third
quarter		quarter		quarter				Nine months
2008		2009		2009				2009		2008
						$ million
8,186		4,429		5,355		Profit for the period		12,381		24,868
(3,125)		2,351		549		Currency translation differences		1,889		(2,092)
						Exchange losses on translation of foreign
						operations transferred to gain or loss
-		42		4		on sales of businesses and fixed assets		46		-
						Available-for-sale investments marked to
(703)		207		256		market		537		(572)
						Available-for-sale investments - recycled
(15)		-		-		to the income statement		2		(20)
(594)		648		176		Cash flow hedges marked to market		613		(471)
						Cash flow hedges - recycled to the
16		178		71		income statement		488		15
						Cash flow hedges - recycled to the
(20)		42		19		balance sheet		132		(61)
292		439		(46)		Taxation		311		385
(4,149)		3,907		1,029		Other comprehensive income		4,018		(2,816)
4,037		8,336		6,384		Total comprehensive income		16,399		22,052
						Attributable to
3,914		8,260		6,375		BP shareholders		16,303		21,696
123		76		9		Minority interest		96		356
4,037		8,336		6,384				16,399		22,052

Group statement of changes in equity

		BP
		shareholders'	Minority	Total
		equity	interest	equity
$ million
At 31 December 2008		91,303	806	92,109
Total comprehensive income		16,303	96	16,399
Dividends		(7,860)	(324)	(8,184)
Share-based payments (net of tax)		479	-	479
At 30 September 2009		100,225	578	100,803

		BP
		shareholders'	Minority	Total
		equity	interest	equity
$ million
At 31 December 2007		93,690	962	94,652
Total comprehensive income		21,696	356	22,052
Dividends		(7,723)	(232)	(7,955)
Repurchase of ordinary share capital		(2,414)	-	(2,414)
Share-based payments (net of tax)		455	-	455
At 30 September 2008		105,704	1,086	106,790

Top of page 11

Group balance sheet

				30 September		31 December
				2009		2008
$ million
Non-current assets
Property, plant and equipment				106,692		103,200
Goodwill				10,203		9,878
Intangible assets				11,246		10,260
Investments in jointly controlled entities				15,446		23,826
Investments in associates				13,673		4,000
Other investments				1,408		855
Fixed assets				158,668		152,019
Loans				1,139		995
Other receivables				943		710
Derivative financial instruments				3,941		5,054
Prepayments				1,436		1,338
Deferred tax assets				408		-
Defined benefit pension plan surpluses				1,931		1,738
				168,466		161,854
Current assets
Loans				208		168
Inventories				18,988		16,821
Trade and other receivables				28,777		29,261
Derivative financial instruments				5,536		8,510
Prepayments				2,460		3,050
Current tax receivable				827		377
Cash and cash equivalents				9,883		8,197
				66,679		66,384
Total assets				235,145		228,238
Current liabilities
Trade and other payables				33,597		33,644
Derivative financial instruments				4,828		8,977
Accruals				6,205		6,743
Finance debt				9,487		15,740
Current tax payable				2,825		3,144
Provisions				1,360		1,545
				58,302		69,793
Non-current liabilities
Other payables				3,158		3,080
Derivative financial instruments				3,810		6,271
Accruals				729		784
Finance debt				27,068		17,464
Deferred tax liabilities				17,796		16,198
Provisions				12,976		12,108
Defined benefit pension plan and other
post-retirement benefit plan deficits				10,503		10,431
				76,040		66,336
Total liabilities				134,342		136,129
Net assets				100,803		92,109
Equity
BP shareholders' equity				100,225		91,303
Minority interest				578		806
				100,803		92,109

Top of page 12

Condensed group cash flow statement

Third		Second		Third
quarter		quarter		quarter				Nine months
2008		2009		2009				2009		2008
						$ million
						Operating activities
12,287		6,772		7,590		Profit before taxation		18,492		38,197
						Adjustments to reconcile profit before
						taxation to net cash provided by
						operating activities
						Depreciation, depletion and amortization
2,751		3,315		3,216		and exploration expenditure written off		9,380		8,611
						Impairment and (gain) loss on sale of
(139)		(306)		(45)		businesses and fixed assets		(295)		(1,080)
						Earnings from equity-accounted entities,
(568)		(250)		(678)		less dividends received		(1,180)		(1,872)
						Net charge for interest and other finance
25		38		203		expense, less net interest paid		330		(276)
128		101		135		Share-based payments		322		366
						Net operating charge for pensions
						and other post-retirement benefits, less
						contributions and benefit payments for
(14)		(46)		(261)		unfunded plans		(281)		149
92		(49)		(36)		Net charge for provisions, less payments		196		(113)
						Movements in inventories and other
						current and non-current assets and
4,830		(1,093)		(115)		liabilities(a)		(1,176)		(1,597)
(4,528)		(1,725)		(1,910)		Income taxes paid		(5,360)		(9,909)
14,864		6,757		8,099		Net cash provided by operating activities		20,428		32,476
						Investing activities
(7,748)		(5,211)		(4,975)		Capital expenditure		(15,003)		(16,896)
-		(8)		-		Acquisitions, net of cash acquired		(8)		(209)
(194)		(110)		(128)		Investment in jointly controlled entities		(341)		(807)
(14)		(40)		(72)		Investment in associates		(159)		(21)
365		360		506		Proceeds from disposal of fixed assets		1,177		700
						Proceeds from disposal of businesses,
-		337		98		net of cash disposed		435		-
150		96		79		Proceeds from loan repayments		292		484
(200)		-		-		Other		47		(200)
						Net cash (used in) provided by investing
(7,641)		(4,576)		(4,492)		activities		(13,560)		(16,949)
						Financing activities
(814)		27		63		Net issue (repurchase) of shares		125		(2,631)
397		4,441		2,367		Proceeds from long-term financing		11,427		3,229
(65)		(1,597)		(607)		Repayments of long-term financing		(4,784)		(2,256)
(1,380)		(1,860)		(1,806)		Net increase (decrease) in short-term debt		(3,848)		(3,288)
(2,624)		(2,620)		(2,621)		Dividends paid    -    BP shareholders		(7,860)		(7,723)
(110)		(74)		(139)		-    Minority interest		(324)		(232)
						Net cash (used in) provided by financing
(4,596)		(1,683)		(2,743)		activities		(5,264)		(12,901)
						Currency translation differences relating to
(78)		101		60		cash and cash equivalents		82		(46)
						Increase (decrease) in cash and cash
2,549		599		924		equivalents		1,686		2,580
						Cash and cash equivalents at beginning
3,593		8,360		8,959		of period		8,197		3,562
6,142		8,959		9,883		Cash and cash equivalents at end of period		9,883		6,142
(a)  Includes
2,978		(1,874)		(538)		Inventory holding (gains) losses		(2,666)		(2,300)
(1,098)		(154)		(370)		Fair value (gain) loss on embedded derivatives		(710)		1,673
Inventory holding gains and losses and fair value gains and losses on embedded derivatives are also included within profit before taxation.

Top of page 13

Capital expenditure and acquisitions

Third		Second		Third
quarter		quarter		quarter						Nine months
2008		2009		2009						2009		2008
						$ million
						By business
						Exploration and Production
5,252		1,422		1,395		US(a)				4,487		8,268
2,178		2,144		2,117		Non-US(b)				6,296		9,113
7,430		3,566		3,512						10,783		17,381
						Refining and Marketing
564		562		584		US(b)				1,713		3,523
552		276		335		Non-US				837		1,505
1,116		838		919						2,550		5,028
						Other businesses and corporate
228		364		502		US(c)				922		958
84		50		50		Non-US				141		338
312		414		552						1,063		1,296
8,858		4,818		4,983						14,396		23,705
						By geographical area
6,044		2,348		2,481		US(a)(b)(c)				7,122		12,749
2,814		2,470		2,502		Non-US(b)				7,274		10,956
8,858		4,818		4,983						14,396		23,705
						Included above:
-		-		281		Acquisitions and asset exchanges(b)				281		2,288

(a)	Third quarter 2008 and nine months ended 30 September 2008 included capital expenditure of $3,652 million in Exploration and Production relating to the purchase of all of Chesapeake Energy Corporation's interest in the Arkoma Basin Woodford Shale assets and the purchase of a 25% interest in Chesapeake's Fayetteville Shale assets.
(b)	Nine months ended 30 September 2008 included capital expenditure of $2,825 million in Exploration and Production and an asset exchange of $1,904 million in Refining and Marketing relating to the formation of an integrated North American oil sands business.
(c)	During the second quarter 2009 there was capital expenditure of $297 million related to wind turbines for post-2009 wind projects. Third quarter 2009 includes a further $107 million relating to these projects.

Exchange rates

Third		Second		Third
quarter		quarter		quarter				Nine months
2008		2009		2009				2009		2008
1.89		1.55		1.64		US dollar/sterling average rate for the period		1.54		1.95
1.81		1.65		1.59		US dollar/sterling period-end rate		1.59		1.81
1.50		1.36		1.43		US dollar/euro average rate for the period		1.36		1.52
1.44		1.41		1.45		US dollar/euro period-end rate		1.45		1.44

Top of page 14

Analysis of replacement cost profit before interest and tax and reconciliation to profit before taxation(a)

Third		Second		Third
quarter		quarter		quarter				Nine months
2008		2009		2009				2009		2008
						$ million
						By business
						Exploration and Production
3,739		1,161		1,864		US		4,168		10,425
8,970		3,885		5,065		Non-US		12,127		23,127
12,709		5,046		6,929				16,295		33,552
						Refining and Marketing
338		(326)		(229)		US		(247)		91
1,634		1,006		1,145		Non-US		2,933		3,669
1,972		680		916				2,686		3,760
						Other businesses and corporate
(288)		(129)		(179)		US		(587)		(625)
272		(454)		(407)		Non-US		(1,343)		82
(16)		(583)		(586)				(1,930)		(543)
14,665		5,143		7,259				17,051		36,769
838		76		104		Consolidation adjustment		(225)		(167)
						Replacement cost profit before
15,503		5,219		7,363		interest and tax(b)		16,826		36,602
						Inventory holding gains (losses)(c)
(164)		16		1		Exploration and Production		(17)		(134)
(2,795)		1,856		517		Refining and Marketing		2,700		2,420
(19)		2		20		Other businesses and corporate		(17)		14
12,525		7,093		7,901		Profit before interest and tax		19,492		38,902
391		274		266		Finance costs		858		1,178
						Net finance expense (income) relating
						to pensions and other post-retirement
(153)		47		45		benefits		142		(473)
12,287		6,772		7,590		Profit before taxation		18,492		38,197
						Replacement cost profit before
						interest and tax
						By geographical area
4,419		730		1,516		US		3,100		10,307
11,084		4,489		5,847		Non-US		13,726		26,295
15,503		5,219		7,363				16,826		36,602

(a)	IFRS requires that the measure of profit or loss disclosed for each operating segment is the measure that is provided regularly to the chief operating decision maker for the purposes of performance assessment and resource allocation. For BP, this measure of profit or loss is replacement cost profit before interest and tax. In addition, a reconciliation is required between the total of the operating segments' measures of profit or loss and the group profit or loss before taxation.
(b)	Replacement cost profit reflects the replacement cost of supplies. The replacement cost profit for the period is arrived at by excluding from profit inventory holding gains and losses and their associated tax effect. Replacement cost profit for the group is not a recognized GAAP measure.
(c)	Inventory holding gains and losses represent the difference between the cost of sales calculated using the average cost to BP of supplies incurred during the period and the cost of sales calculated on the first-in first-out (FIFO) method including any changes in provisions where the net realizable value of the inventory is lower than its cost. Under the FIFO method, which we use for IFRS reporting, the cost of inventory charged to the income statement is based on the historic cost of acquisition or manufacture rather than the current replacement cost. In volatile energy markets, this can have a significant distorting effect on reported income. The amounts disclosed represent the difference between the charge to the income statement on a FIFO basis (and any related movements in net realizable value provisions) and the charge that would arise using average cost of supplies incurred during the period. For this purpose, average cost of supplies incurred during the period is calculated by dividing the total cost of inventory purchased in the period by the number of barrels acquired. The amounts disclosed are not separately reflected in the financial statements as a gain or loss. No adjustment is made in respect of the cost of inventories held as part of a trading position and certain other temporary inventory positions. Management believes this information is useful to illustrate to investors the fact that crude oil and product prices can vary significantly from period to period and that the impact on our reported result under IFRS can be significant. Inventory holding gains and losses vary from period to period due principally to changes in oil prices as well as changes to underlying inventory levels. In order for investors to understand the operating performance of the group excluding the impact of oil price changes on the replacement of inventories, and to make comparisons of operating performance between reporting periods, BP's management believes it is helpful to disclose this information.

Top of page 15

Non-operating items(a) 

Third		Second		Third
quarter		quarter		quarter				Nine months
2008		2009		2009				2009		2008
						$ million
						Exploration and Production
						Impairment and gain (loss) on sale of
33		359		72		businesses and fixed assets		504		165
(7)		-		3		Environmental and other provisions		3		(12)
						Restructuring, integration and
(6)		(6)		1		rationalization costs		(6)		(50)
1,098		154		370		Fair value gain (loss) on embedded		767		(1,668)
						derivatives
-		-		25		Other		21		331
1,118		507		471				1,289		(1,234)
						Refining and Marketing
						Impairment and gain (loss) on sale of
114		(52)		(13)		businesses and fixed assets		(86)		915
(62)		-		(190)		Environmental and other provisions		(190)		(62)
						Restructuring, integration and
(52)		(114)		(38)		rationalization costs		(415)		(343)
-		-		-		Fair value gain (loss) on embedded		(57)		-
						derivatives
-		-		-		Other		(9)		-
-		(166)		(241)				(757)		510
						Other businesses and corporate
						Impairment and gain (loss) on sale of
(8)		(1)		(14)		businesses and fixed assets		(123)		-
(76)		-		(16)		Environmental and other provisions		(91)		(76)
						Restructuring, integration and
(30)		(37)		(28)		rationalization costs		(136)		(163)
-		-		-		Fair value gain (loss) on embedded		-		(5)
						derivatives
(14)		(1)		(6)		Other		(74)		(88)
(128)		(39)		(64)				(424)		(332)
990		302		166		Total before taxation		108		(1,056)
(331)		(106)		(48)		Taxation credit (charge)(b)		(19)		383
659		196		118		Total after taxation for period		89		(673)

(a)	An analysis of non-operating items by region is shown on pages 5, 7 and 8.
(b)	Tax is calculated using the quarter's effective tax rate on replacement cost profit.

Non-operating items are charges and credits arising in consolidated entities that BP discloses separately because it considers such disclosures to be meaningful and relevant to investors. These disclosures are provided in order to enable investors better to understand and evaluate the group's financial performance.

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Non-GAAP information on fair value accounting effects

Third		Second		Third
quarter		quarter		quarter						Nine months
2008		2009		2009						2009		2008
						$ million
						Favourable (unfavourable) impact
						relative to management's measure
						of performance
97		135		180		Exploration and Production				473		(535)
636		(126)		86		Refining and Marketing				(149)		576
733		9		266						324		41
(245)		(3)		(77)		Taxation credit (charge)(a)				(98)		-
488		6		189						226		41

(a)	Tax is calculated using the quarter's effective tax rate on replacement cost profit.

BP uses derivative instruments to manage the economic exposure relating to inventories above normal operating requirements of crude oil, natural gas and petroleum products as well as certain contracts to supply physical volumes at future dates. Under IFRS, these inventories and contracts are recorded at historic cost and on an accruals basis respectively. The related derivative instruments, however, are required to be recorded at fair value with gains and losses recognized in income because hedge accounting is either not permitted or not followed, principally due to the impracticality of effectiveness testing requirements. Therefore, measurement differences in relation to recognition of gains and losses occur. Gains and losses on these inventories and contracts are not recognized until the commodity is sold in a subsequent accounting period. Gains and losses on the related derivative commodity contracts are recognized in the income statement from the time the derivative commodity contract is entered into on a fair value basis using forward prices consistent with the contract maturity.

IFRS requires that inventory held for trading be recorded at its fair value using period end spot prices whereas any related derivative commodity instruments are required to be recorded at values based on forward prices consistent with the contract maturity. Depending on market conditions, these forward prices can be either higher or lower than spot prices resulting in measurement differences.

BP enters into contracts for pipelines and storage capacity that, under IFRS, are recorded on an accruals basis. These contracts are risk-managed using a variety of derivative instruments which are fair valued under IFRS. This results in measurement differences in relation to recognition of gains and losses.

The way that BP manages the economic exposures described above, and measures performance internally, differs from the way these activities are measured under IFRS. BP calculates this difference for consolidated entities by comparing the IFRS result with management's internal measure of performance, under which the inventory and the supply and capacity contracts in question are valued based on fair value using relevant forward prices prevailing at the end of the period. We believe that disclosing management's estimate of this difference provides useful information for investors because it enables investors to see the economic effect of these activities as a whole. The impacts of fair value accounting effects, relative to management's internal measure of performance, are shown in the table above. A reconciliation to GAAP information is set out below.

Reconciliation of non-GAAP information

Third	Second	Third
quarter	quarter	quarter		Nine months
2008	2009	2009		2009	2008
			$ million
			Exploration and Production
			Replacement cost profit before interest
			and tax adjusted for fair value accounting
12,612	4,911	6,749	effects	15,822	34,087
97	135	180	Impact of fair value accounting effects	473	(535)
			Replacement cost profit before interest
12,709	5,046	6,929	and tax	16,295	33,552
			Refining and Marketing
			Replacement cost profit before interest
			and tax adjusted for fair value accounting
1,336	806	830	effects	2,835	3,184
636	(126)	86	Impact of fair value accounting effects	(149)	576
			Replacement cost profit before interest
1,972	680	916	and tax	2,686	3,760

Top of page 17

Realizations and marker prices

Third		Second		Third
quarter		quarter		quarter				Nine months
2008		2009		2009				2009		2008
						Average realizations(a)
						Liquids ($/bbl)(b)
112.03		47.45		60.30		US		49.28		100.36
102.37		60.69		67.31		Europe		58.38		108.77
114.59		55.22		64.21		Rest of World		53.44		105.62
111.47		52.33		62.77		BP Average		52.20		103.96
						Natural gas ($/mcf)
7.88		2.47		2.73		US		2.86		7.79
8.17		4.86		2.96		Europe		4.69		8.16
5.61		2.77		2.84		Rest of World		3.01		5.28
6.49		2.86		2.81		BP Average		3.11		6.32
						Total hydrocarbons ($/boe)
83.33		34.90		43.84		US		36.92		77.55
84.52		49.11		52.72		Europe		47.31		85.69
64.13		31.81		36.25		Rest of World		32.11		60.87
73.49		35.02		41.12		BP Average		35.81		70.31
						Average oil marker prices ($/bbl)
115.09		59.13		68.08		Brent		57.32		111.11
118.07		59.71		68.12		West Texas Intermediate		57.22		113.49
117.16		59.10		69.07		Alaska North Slope		58.05		112.68
112.85		57.51		66.35		Mars		56.08		107.11
113.32		58.46		67.76		Urals (NWE- cif)		56.72		108.18
52.94		32.63		35.55		Russian domestic oil		29.74		54.31
						Average natural gas marker prices
10.25		3.51		3.39		Henry Hub gas price ($/mmbtu)(c)		3.93		9.74
61.48		27.51		21.57		UK Gas - National Balancing Point (p/therm)		31.90		58.44

(a)	Based on sales of consolidated subsidiaries only - this excludes equity-accounted entities.
(b)	Crude oil and natural gas liquids.
(c)	Henry Hub First of Month Index.

Top of page 18

Notes

1.        Basis of preparation

The interim financial information included in this report has been prepared in accordance with IAS 34 'Interim Financial Reporting'.

The results for the interim periods are unaudited and in the opinion of management include all adjustments necessary for a fair presentation of the results for the periods presented. All such adjustments are of a normal recurring nature. This report should be read in conjunction with the consolidated financial statements and related notes for the year ended 31 December 2008 included in BP Annual Report and Accounts 2008.

BP prepares its consolidated financial statements included within its Annual Report and Accounts on the basis of International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), IFRS as adopted by the European Union (EU) and in accordance with the provisions of the Companies Act 1985. IFRS as adopted by the EU differs in certain respects from IFRS as issued by the IASB, however, the differences have no impact on the group's consolidated financial statements for the periods presented. 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 for 2009, which do not differ significantly from those used in BP Annual Report and Accounts 2008.

BP has adopted a new accounting standard, IFRS 8 'Operating Segments', with effect from 1 January 2009. The standard defines operating segments as components of an entity about which separate financial information is available and is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. It also sets out the required disclosures for operating segments. On adoption, there was no change to BP's segments that are separately reported but the segmental financial information is now based on measures as used by the chief operating decision maker. In particular, the segment measure of profit is replacement cost profit before interest and tax - see page 14 for further information. There was no effect on the group's reported income or net assets.

In addition, BP has adopted amendments to IAS 1 'Presentation of Financial Statements', also with effect from 1 January 2009. This requires separate presentation of owner and non-owner changes in equity by introducing the statement of comprehensive income - see page 10. The statement of recognized income and expense is no longer presented. Certain minor changes in the presentation of the statement of changes in equity were also made to comply with the revised standard - see page 10. There was no effect on the group's reported profit for the period or net assets.

Top of page 19

Notes

2.        Sales and other operating revenues

Third	Second	Third
quarter	quarter	quarter			Nine months
2008	2009	2009			2009	2008
			$ million
			By business
23,447	12,848	14,871	Exploration and Production		40,062	70,876
92,390	49,333	60,542	Refining and Marketing		150,448	266,894
1,347	603	761	Other businesses and corporate		1,948	3,655
117,184	62,784	76,174			192,458	341,425
			Less: sales between businesses
13,043	7,589	9,540	Exploration and Production		22,929	38,747
403	225	204	Refining and Marketing		540	1,632
564	193	212	Other businesses and corporate		698	1,380
14,010	8,007	9,956			24,167	41,759
			Third party sales and other
			operating revenues
10,404	5,259	5,331	Exploration and Production		17,133	32,129
91,987	49,108	60,338	Refining and Marketing		149,908	265,262
783	410	549	Other businesses and corporate		1,250	2,275
			Total third party sales and other
103,174	54,777	66,218	operating revenues		168,291	299,666
			By geographical area
37,642	20,677	24,637	US		62,894	108,370
76,156	39,371	48,174	Non-US		121,131	222,592
113,798	60,048	72,811			184,025	330,962
10,624	5,271	6,593	Less: sales between areas		15,734	31,296
103,174	54,777	66,218			168,291	299,666

3.        Production and similar taxes

Third	Second	Third
quarter	quarter	quarter			Nine months
2008	2009	2009			2009	2008
			$ million
752	133	166	US		378	2,375
1,134	540	497	Non-US		1,419	3,419
1,886	673	663			1,797	5,794

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Notes

4.        Earnings per share, shares in issue and shares repurchased

Basic earnings per ordinary share (EpS) amounts are calculated by dividing the profit for the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. The calculation of EpS is performed separately for each discrete quarterly period, and for the year-to-date period. As a result, the sum of the discrete quarterly EpS amounts in any particular year-to-date period may not be equal to the EpS amount for the year-to-date period.

Prior to 2009, EpS amounts for the discrete quarterly periods were determined as the difference between the relevant year-to-date period amounts. The change in method of determination of the discrete quarterly EpS amounts does not have a significant effect and the comparative EpS amounts for 2008 have not been restated.

For the diluted EpS calculation the weighted average number of shares outstanding during the period is adjusted for number of shares that are potentially issuable in connection with employee share-based payment plans using the treasury stock method.

Third	Second	Third
quarter	quarter	quarter		Nine months
2008	2009	2009		2009	2008
			$ million
			Results for the period
			Profit for the period attributable
8,049	4,385	5,336	to BP shareholders	12,283	24,501
-	1	-	Less: preference dividend	1	1
			Profit attributable to BP ordinary
8,049	4,384	5,336	shareholders	12,282	24,500
			Inventory holding (gains) losses,
1,980	(1,245)	(355)	net of tax	(1,775)	(1,495)
			RC profit attributable to BP ordinary
10,029	3,139	4,981	shareholders	10,507	23,005
			Basic weighted average number of
18,746,202	18,726,093	18,733,516	shares outstanding (thousand)(a)	18,726,934	18,815,131
3,124,367	3,121,016	3,122,253	ADS equivalent (thousand)(a)	3,121,156	3,135,855
			Weighted average number of
			shares outstanding used to
			calculate diluted
18,931,910	18,929,930	18,936,781	earnings per share (thousand)(a)	18,922,410	18,985,767
3,155,318	3,154,988	3,156,130	ADS equivalent (thousand)(a)	3,153,735	3,164,295
			Shares in issue at period-end
18,710,980	18,728,163	18,739,590	(thousand)(a)	18,739,590	18,710,980
3,118,497	3,121,361	3,123,265	ADS equivalent (thousand)(a)	3,123,265	3,118,497
			Shares repurchased in the period
92,861	-	-	(thousand)	-	269,757

(a)	Excludes treasury shares and the shares held by the Employee Share Ownership Plans and includes certain shares that will be issuable in the future under employee share plans.

Top of page 21

Notes

5.        Analysis of changes in net debt

Third	Second	Third
quarter	quarter	quarter		Nine months
2008	2009	2009		2009		2008
			$ million
			Opening balance
30,189	34,698	36,240	Finance debt	33,204		31,045
3,593	8,360	8,959	Less: Cash and cash equivalents	8,197		3,562
			Less: FV asset (liability) of hedges
900	(323)	179	related to finance debt	(34)		666
25,696	26,661	27,102	Opening net debt	25,041		26,817
			Closing balance
28,300	36,240	36,555	Finance debt	36,555		28,300
6,142	8,959	9,883	Less: Cash and cash equivalents	9,883		6,142
			Less: FV asset (liability) of hedges
149	179	370	related to finance debt	370		149
22,009	27,102	26,302	Closing net debt	26,302		22,009
3,687	(441)	800	Decrease (increase) in net debt	(1,261)		4,808
			Movement in cash and cash equivalents
2,627	498	864	(excluding exchange adjustments)	1,604		2,626
			Net cash outflow (inflow) from
1,048	(984)	46	financing (excluding share capital)	(2,795)		2,315
(8)	15	(97)	Other movements	(75)		(129)
			Movement in net debt before
3,667	(471)	813	exchange effects	(1,266)		4,812
20	30	(13)	Exchange adjustments	5		(4)
3,687	(441)	800	Decrease (increase) in net debt	(1,261)		4,808

Top of page 22

Notes

6.        TNK-BP operational and financial information

Third	Second	Third
quarter	quarter	quarter		Nine months
2008	2009	2009		2009		2008
			Production (Net of royalties) (BP share)
833	837	850	Crude oil (mb/d)	836		825
579	555	553	Natural gas (mmcf/d)	583		546
932	933	945	Total hydrocarbons (mboe/d)(a)	937		919
			$ million
			Income statement (BP share)
1,345	873	1,081	Profit before interest and tax(b)	2,373		4,580
(71)	(54)	(53)	Finance costs	(175)		(203)
(369)	(242)	(263)	Taxation	(690)		(1,224)
(56)	(31)	(33)	Minority interest	(96)		(209)
849	546	732	Net income	1,412		2,944
			Cash flow
300	468	252	Dividends received	720		1,500

Balance sheet		30 September	31 December
		2009	2008
Investments in jointly controlled entities		-	8,939
Investments in associates		9,585	-

(a)	Natural gas is converted to oil equivalent at 5.8 billion cubic feet = 1 million barrels.
(b)	Third quarter and nine months 2009 includes a gain of $102 million related to the sale of TNK-BP's oil field services enterprises to Weatherford International.

7.        Inventory valuation

Due to falling oil prices a provision of $1,412 million was held at 31 December 2008 to write inventories down to their net realizable value. The net movement in the provision during the third quarter of 2009 was an increase of $128 million (second quarter of 2009 was an increase of $92 million). The movement in the provision in the nine months ended 30 September 2009 is a decrease of $943 million.

8.        Fourth-quarter results

BP's fourth-quarter results will be announced on 2 February 2010.

9.        Statutory accounts

The financial information shown in this publication, which was approved by the Board of Directors on 26 October 2009, is unaudited and does not constitute statutory financial statements. Statutory accounts for the financial year ended 31 December 2008 for BP have been filed with the Registrar of Companies in England and Wales; the report of the auditors on those accounts was unqualified and did not contain a statement under section 237(2) or section 237(3) of the Companies Act 1985. 

Contacts

				London				United States
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				[phone]				[phone]
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http://www.bp.com/investors				[phone]				[phone]

 

END

 

 

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