3rd Quarter Results Pt 1of2

BP PLC
26 October 2004

BP p.l.c.
Group Results
3rd Quarter 2004

                                                     London 26 October 2004

                         FOR IMMEDIATE RELEASE

                       RECORD NINE-MONTHS RESULT

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

  Third  Second   Third

Quarter Quarter Quarter                                      Nine Months
   2003    2004    2004   $ million                      2004    2003     %

=======================                                ====================
                          Replacement cost profit
  2,260   3,434   3,456     for the period (a)         11,060   8,216
    498     474     481   Acquisition amortization(b)   1,502   1,755
-----------------------                                --------------------
  2,758   3,908   3,937   Pro forma result             12,562   9,971    26
=======================                                ====================
   7.76    9.93    9.99   - per ordinary share (pence)  31.53   27.90    13
  12.50   17.85   18.17   - per ordinary share (cents)  57.38   44.92    28
   0.75    1.07    1.09   - per ADS (dollars)            3.44    2.70
=======================                                ====================

o    BP's third quarter pro forma result was $3,937 million, compared with
     $2,758 million a year ago, an increase of 43%. For the nine months the
     result was $12,562 million compared with $9,971 million, up 26%.
     Replacement cost profit for the third quarter and nine months was
     $3,456 million and $11,060 million respectively, compared with
     $2,260 million and $8,216 million a year ago.

o    The third quarter result includes net exceptional and non-operating
     charges of $401 million compared with a net charge of $217 million in
     the third quarter of 2003.

o    The third quarter trading environment was generally stronger than a
     year ago, with higher oil and gas realizations and higher refining and
     chemicals margins.

o    Net cash inflow for the quarter was $1.7 billion and net cash inflow
     for the nine months was $7.0 billion, compared with an outflow of
     $2.4 billion and an inflow of $3.2 billion a year ago. Net cash inflow
     from operating activities for the quarter and nine months was
     $6.9 billion and $21.5 billion respectively, compared with $4.9 billion
     and $18.2 billion a year ago.

o    The pro forma ratio of net debt to net debt plus equity was 22% at the
     end of the quarter.

o    Return on average capital employed for the quarter and nine months
     respectively, on a pro forma basis, was 19.5% and 20.8%, compared with
     15.8% and 19.2% a year ago. The cash return for the quarter was 36%
     compared with 31% a year ago, and for the nine months was 34% the same
     as a year ago.

o    The quarterly dividend was 7.10 cents per share ($0.426 per ADS). This
     compares with 6.50 cents per share a year ago. For the nine months the
     dividend showed an increase of 8.8%. In sterling terms, the quarterly
     dividend is 3.910 pence per share compared with 3.857 pence a year ago;
     for the nine months the dividend showed a decrease of 2.2%. During the
     first nine months, the company repurchased for cancellation 621 million
     of its own shares, at a cost of $5.5 billion. The increase in the
     dividend per share reflects the reduction in the number of shares
     outstanding due to the share buyback programme which allows the
     company's dividend payments to be allocated across a smaller equity
     base.

BP Group Chief Executive, Lord Browne, said:

     'This has been another strong performance against the backdrop of
     strong global demand. We are on track against our targets of controlled
     investment for growth and using additional free cash flow to fund a
     significant level of share buybacks. The plans to prepare the Olefins
     and Derivatives business for disposal are on track.'

The pro forma result has been derived from the group's reported UK GAAP
accounting information but is not in itself a recognized UK or US GAAP measure.
This financial performance information and measures derived therefrom, shown
above and elsewhere in the document, are provided in order to enable investors
to evaluate better BP's performance against that of its competitors.

(a)  Replacement cost profit for the period includes the net profit or loss
     on the sale of fixed assets and businesses or termination of
     operations.

(b)  Acquisition amortization is depreciation and amortization relating to
     the fixed asset revaluation adjustments and goodwill consequent upon
     the ARCO and Burmah Castrol acquisitions. The results for the first
     nine months of 2003 and 2004 include accelerated depreciation of the
     revaluation adjustment in respect of the impairment of former ARCO
     assets.

                      Summary Third Quarter Results

Exploration and Production's record third quarter result was up 30% on a year
ago, reflecting higher liquids and gas realizations combined with increased
volumes and the changing composition of production primarily resulting from the
TNK-BP acquisition.

The Refining and Marketing result increased 89% compared with a year ago,
reflecting stronger realized refining margins, supported by strong product
demand and the impact of industry-wide refinery maintenance.

The Petrochemicals result decreased by 10% compared with the second quarter.
This reflects higher margins and lower fixed costs more than offset by higher
non-operating and exceptional charges.

In Gas, Power and Renewables, the result increased compared with a year ago.
This reflects improved margins in the NGL and Solar businesses and higher
exceptional gains, offset partly by weaker gas marketing and trading margins.

Interest and other finance expense for the quarter was $235 million compared
with $221 million for the prior quarter. The increase relates primarily to a
rise in interest rates.

The pro forma effective tax rate on replacement cost profit was 34.6%.

Capital expenditure was $3.4 billion for the quarter and there were no
significant acquisitions. Disposal proceeds for the quarter were $0.58 billion.

Net debt at the end of the quarter was $18.6 billion. The pro forma ratio of net
debt to net debt plus equity was 22% at the end of the quarter compared with 23%
at the end of the second quarter.

During the third quarter, shares to the value of $1.25 billion were issued to
Alfa Group and Access Renova (AAR) as the first instalment of the deferred
consideration for our investment in TNK-BP. The company also repurchased for
cancellation 241.5 million of its own shares, at a cost of $2.25 billion.

---------

The commentaries above and following are based on the pro forma replacement cost
results.

TNK-BP operational and financial information has been estimated.

The financial information for 2003 has been restated to reflect (a) the transfer
of natural gas liquids (NGLs) operations from the Exploration and Production
segment to Gas, Power and Renewables on 1 January 2004; (b) the adoption by the
group of Financial Reporting Standard No. 17 'Retirement Benefits' (FRS 17) with
effect from 1 January 2004; and (c) the adoption by the group of Urgent Issues
Task Force Abstract No. 38 'Accounting for ESOP Trusts' with effect from 1
January 2004. For further information see Note 1.

                    Exceptional and Non-Operating Items

                                                         3Q 2004
                                           ------------------------------
                                           Exceptional      Non-Operating
$ million                                        Items     Items and UPIS(a)
                                           ------------------------------
Exploration and Production                          23               (137)
Refining and Marketing                             (17)              (206)
Petrochemicals                                     (38)               (58)
Gas, Power and Renewables                           16                  -
Other businesses and corporate                       1               (244)
                                           ------------------------------
                                                   (15)              (645)
Taxation                                            33                226(b)
                                           ------------------------------
                                                    18               (419)
                                           ==============================

(a)  Charges for environmental and other provisions have been classified as
     non-operating items and prior periods restated to conform with this
     treatment.

(b)  Tax on non-operating items and Unrealized Profit in Stock (UPIS) is
     calculated using the pro forma effective tax rate on replacement cost
     profit, excluding exceptional items, of 35%.

            Reconciliation of Reported Results to Pro Forma Results


Pro Forma Result     ----- 3Q 2004 -----                      Pro Forma Result
 -------------------
    3Q     2Q     3Q     Acq.   Reported                          Nine Months
  2003   2004   2004    Amort+  Earnings* $ million              2004    2003
 =======================================                       ==============
                                          Exploration and
 3,959  4,558  5,144      261      4,883  Production           14,270  12,958
                                          Refining and
   687  1,562  1,301      220      1,081  Marketing             3,804   2,613
    84    208    188        -        188  Petrochemicals          371     527
                                          Gas, Power
   127    216    130        -        130  and Renewables          544     484
                                          Other businesses
  (330)  (164)  (424)       -       (424) and corporate           541    (649)
 ---------------------------------------                       --------------
                                          RC profit before
 4,527  6,380  6,339      481      5,858  interest and tax     19,530  15,933
 ----------------------------------------                      --------------
                                          Interest and Other
  (298)  (221)  (235)       -       (235) finance expense        (684)   (879)
(1,428)(2,199)(2,109)       -     (2,109) Taxation             (6,130) (4,954)
   (43)   (52)   (58)       -        (58) MSI                    (154)   (129)
 ----------------------------------------                      --------------
 2,758  3,908  3,937      481      3,456  RC profit            12,562   9,971
 ----------------------------------------                      --------------
                                   1,027  Stock holding gains (losses)
                                   -----
                                   4,483  HC profit
                                   =====

* Replacement cost profit for the period includes the net profit or loss on
  the sale of fixed assets and businesses or termination of operations.

+ Acquisition amortization is depreciation and amortization relating to the
  fixed asset revaluation adjustments and goodwill consequent upon the ARCO
  and Burmah Castrol acquisitions. The results for the first nine months of
  2003 and 2004 include accelerated depreciation of the revaluation
  adjustment in respect of the impairment of former ARCO assets.

                  Operating Results and Per Share Amounts

     Third     Second      Third
   Quarter    Quarter    Quarter                                Nine Months
      2003       2004       2004                              2004      2003
================================                       =====================
                                  Replacement cost
                                  Profit before
     4,029      5,906      5,858  interest and tax ($m)    18,028     14,178
--------------------------------                       ---------------------
                                  Results for the
                                  period ($m)
     2,758      3,908      3,937  Pro forma result         12,562      9,971
     2,260      3,434      3,456  Replacement cost profit  11,060      8,216
     2,344      3,896      4,483  Historical cost profit   13,197      8,148
--------------------------------                       ---------------------
                                  Shares in issue at
22,107,715 21,789,115 21,713,966  period end (thousand)21,713,966 22,107,715
                                  - ADS equivalent
 3,684,619  3,631,519  3,618,994  (thousand)            3,618,994  3,684,619
                                  Average number of
                                  shares outstanding
22,092,365 21,906,318 21,683,963  (thousand)           21,891,936 22,193,403
                                  - ADS equivalent
 3,682,061  3,651,053  3,613,994  (thousand)            3,648,656  3,698,901

                                  Per ordinary share
                                  (cents)
     12.50      17.85      18.17  Pro forma result          57.38      44.92
                                  RC profit
     10.25      15.68      15.96  for the period            50.52      37.02
                                  HC profit
     10.62      17.80      20.67  for the period            60.28      36.71

                                  Per ADS (cents)
     75.00     107.10     109.02  Pro forma result         344.28     269.52
                                  RC profit
     61.50      94.08      95.76  for the period           303.12     222.12
                                  HC profit
     63.72     106.80     124.02  for the period           361.68     220.26
--------------------------------                       ---------------------

                        Exploration and Production

   3Q    2Q    3Q                                               Nine Months
 2003  2004  2004   $ million                                  2004    2003
=================                                            ==============
                    Replacement cost profit
3,666 4,302 4,883   before interest and tax                  13,427  11,818
  293   256   261   Acquisition amortization                    843   1,140
-----------------                                            --------------
                    Pro forma replacement cost result
3,959 4,558 5,144   before interest and tax                  14,270  12,958
=================                                            ==============
                    Results include:
    -  (160)   (7)  Asset write-downs/impairment               (290)    (49)
    -     -     -   Environmental and other provisions            -       -
                    Restructuring, integration and
    -     -     -   rationalization costs                         -    (102)
    -     -   (35)  Other                                       (35)      -
   15   (87)  (95)  Unrealized profit in stock (UPIS)          (248)     (4)
-----------------                                            --------------
   15  (247) (137)  Total non-operating items and UPIS         (573)   (155)
  196  (114)   23   Exceptional items                           120     962
=================                                            ==============

                    Total non-operating items, UPIS
  211  (361) (114)  and exceptional items                      (453)    807
=================                                            ==============
  136   108   135   Exploration expense                         379     349
                    Of which:
   75    22    34   Exploration expenditure written off         123     168
-----------------                                            --------------

                    Production (Net of Royalties)
1,852 2,321 2,298   Crude oil (mb/d)                          2,320   1,798
  202   197   181   Natural gas liquids (mb/d)                  190     211
2,054 2,518 2,479   Total liquids (mb/d)(a)                   2,510   2,009
8,401 8,425 8,275   Natural gas (mmcf/d)                      8,433   8,617
3,502 3,971 3,906   Total hydrocarbons (mboe/d)(b)            3,964   3,495
=================                                            ==============
                    Average realizations
27.72 34.47 39.43   Crude oil ($/bbl)                         34.93   28.25
19.39 23.71 28.77   Natural gas liquids ($/bbl)               25.13   18.96
26.79 33.27 38.29   Total liquids ($/bbl)                     33.89   27.24
 3.08  3.68  3.66   Natural gas ($/mcf)                        3.71    3.46
22.58 27.66 30.08   Total hydrocarbons ($/bbl)                28.03   23.88
=================                                            ==============
                    Average oil marker prices
                    ($/bbl)
28.38 35.32 41.54   Brent                                     36.31   28.64
30.19 38.28 43.88   West Texas Intermediate                   39.18   31.08
28.83 36.99 41.82   Alaska North Slope US West Coast          37.70   29.69
=================                                            ==============

                    Average natural gas marker prices
 4.97  6.00  5.75   Henry Hub gas price ($/mmbtu)(c)           5.81    5.65

                    UK Gas - National
15.08 20.70 23.63   Balancing Point (p/therm)                 22.98   17.92

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

(a) Crude oil and natural gas liquids.
(b) Natural gas is converted to oil equivalent at 5.8 billion cubic feet =
    1 million barrels.
(c) Henry Hub First of the Month Index.

                        Exploration and Production

The pro forma replacement cost result before interest and tax for the third
quarter was $5,144 million, a record result, up 30% from the third quarter of
2003. The primary drivers for the change are the higher realizations in both
liquids and gas combined with increased volumes and the changing composition of
production primarily resulting from the TNK-BP acquisition. This quarter further
benefited from an exceptional gain of $23 million. The corresponding quarter in
2003 contained exceptional gains of $196 million.

Included in the results for the quarter was a non-operating charge totalling $42
million. This charge results from impairments associated with the write-off of
the partner operated Temsah platform in Egypt following the blow-out, revisions
to impairment estimates made in the prior quarter and a charge taken for Alaskan
tankers no longer required.

The third quarter result also included a charge of $95 million, reflecting an
increase in the provision for Unrealized Profit in Stock (UPIS), which removes
the upstream margin from downstream inventories. This compares with a credit of
$15 million in the equivalent quarter of last year.

The nine months result of $14,270 million is a record, up $1,312 million on a
year ago, reflecting the higher realizations combined with increased volumes and
the changing composition of production primarily resulting from the TNK-BP
acquisition.

Production for the quarter was up over 11% to 3,906 mboe/d compared with a year
ago. This reflects the inclusion of TNK-BP and the continuing ramp-up of
production in the New Profit Centres, partly offset by planned maintenance in
the North Sea and Alaska, the operational impact of Hurricane Ivan in the Gulf
of Mexico and the blow-out at partner operated Temsah in Egypt.

Projects in the New Profit Centres remain on track. In the quarter Kizomba A
started up in Angola, and in Australia, the North West Shelf Train 4 LNG plant
was brought on line and first liftings have taken place.

In the third quarter, we had further exploration success with the Pela Lache-1
prospect offshore Sakhalin Island in Russia.

During the quarter, we completed our divestments of various properties in the
Gulf of Mexico Shelf and of our interests in Offshore North Sinai in Egypt,
resulting in total exceptional gains in the quarter of $23 million.

                       Customer Facing Segments
                         Refining and Marketing

     3Q      2Q      3Q                                         Nine Months
   2003    2004    2004  $ million                             2004    2003
=======================                                       =============
                         Replacement cost profit
    482   1,344   1,081  before interest and tax              3,145   1,998
    205     218     220  Acquisition amortization               659     615
-----------------------                                       -------------
                         Pro forma replacement cost result
    687   1,562   1,301  before interest and tax              3,804   2,613
=======================                                       =============

                         Results include:
      -       -       -  Asset write-downs/impairment             -       -
   (369)      -    (206) Environmental and other provisions    (206)   (369)
                         Restructuring, integration and
    (72)      -       -  rationalization costs                    -    (131)
      -       -       -  Other                                    -       -
-----------------------                                       -------------
   (441)      -    (206) Total non-operating items             (206)   (500)
    (21)    (18)    (17) Exceptional items                     (175)   (122)
=======================                                       =============
                         Total non-operating and
   (462)    (18)   (223) exceptional items                     (381)   (622)
=======================                                       =============

                         Refinery throughputs (mb/d)
    405     404     410  UK                                     403     399
    909     871     882  Rest of Europe                         879     951
  1,406   1,370   1,417  USA                                  1,350   1,391
    366     377     296  Rest of World                          358     383
-----------------------                                       -------------
  3,086   3,022   3,005  Total throughput                     2,990   3,124
=======================                                       =============
   96.2    95.1    94.9  Refining availability                 95.0    95.7
=======================                                       =============
                         Oil sales volumes (mb/d)
                         Refined products
    270     318     333  UK                                     315     276
  1,293   1,344   1,313  Rest of Europe                       1,327   1,323
  1,828   1,724   1,758  USA                                  1,736   1,800
    657     665     677  Rest of World                          674     636
-----------------------                                      --------------
  4,048   4,051   4,081  Total marketing sales                4,052   4,035
  2,647   2,087   2,624  Trading/supply sales                 2,542   2,805

-----------------------                                      --------------
  6,695   6,138   6,705  Total refined product sales          6,594   6,840
  5,316   5,339   3,572  Crude oil                            4,672   5,175
-----------------------                                      --------------
 12,011  11,477  10,277  Total oil sales                     11,266  12,015
=======================                                      ==============
                         Global Indicator Refining Margin(a)
                         ($/bbl)
   2.47    5.29    4.37  NWE                                   4.15    2.77
   5.61    9.18    6.99  USGC                                  7.72    5.11
   6.39    9.01    5.01  Midwest                               6.25    5.09
   9.04   15.41   11.28  USWC                                 11.62    7.39
   1.27    2.80    5.48  Singapore                             3.92    1.63
   4.59    7.89    6.20  BP Average                            6.26    4.13
=======================                                      ==============

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

                       Customer Facing Segments
                         Refining and Marketing

The pro forma replacement cost result before interest and tax for the third
quarter was $1,301 million. This compares with $687 million for the same period
last year. The nine months result was $3,804 million, a year-on-year increase of
$1,191 million, or 46%.

The improvement in the result is due primarily to refining margins in the third
quarter being significantly higher than in the equivalent quarter a year ago.
The margins continued to be supported by strong product demand and the impact of
industry-wide planned and unplanned refinery maintenance. The refining result
for the quarter was stronger than that suggested by the Global Indicator Margin
(GIM) because of upgrading capacity in our refining portfolio and the benefits
from supply optimization. Marketing margins decreased relative to the previous
quarter and the equivalent quarter a year ago because rises in crude and product
prices more than offset the increase in selling prices.

Included in the result for the quarter was a non-operating charge of $206
million in relation to new, and revisions to existing, environmental and other
provisions. The equivalent charge in the third quarter of 2003 was $369 million.
In addition, in the third quarter of 2003 there was a non-operating charge of
$72 million in relation to Veba integration costs. Also included in the result
is an exceptional charge of $17 million. The corresponding quarter in 2003
contained an exceptional charge of $21 million.

The improvement in the nine months result compared with a year ago was
attributable to the stronger refining margins, with overall marketing margins
lower due to factors outlined above.

Refining throughputs for the quarter were 3,005 mb/d, some 81 mb/d lower than in
the third quarter of 2003, due principally to the disposal of BP's interests in
the Singapore Refining Company Private Limited and the closure of refining
operations at the ATAS Refinery in Mersin, south eastern Turkey.  The
throughputs were similar to those in the previous quarter with the impacts
described above being offset by relatively lower turnaround activity. The
quarter's refining availability was 94.9%.  Marketing sales were 4,081 mb/d, a
similar level to both the previous quarter and the equivalent quarter a year
ago.

During the quarter BP Japan and Petrolub International announced an agreement to
merge their automotive lubricant businesses and create a new company called BP
Castrol KK.

The disposal of BP's Retail and LPG Business in the Singapore retail network and
related assets was completed on 30 September.

                        Customer Facing Segments
                               Petrochemicals

     3Q      2Q      3Q                                         Nine Months
   2003    2004    2004  $ million                             2004    2003
=======================                                       =============
                         Replacement cost profit
     84     208     188  before interest and tax                371     527
      -       -       -  Acquisition amortization                 -       -
-----------------------                                       -------------
                         Pro forma replacement cost result
     84     208     188  before interest and tax                371     527
=======================                                       =============
                         Results include:
      -       -       -  Asset write-downs/impairment             -       -
    (20)      -     (58) Environmental and other provisions     (58)    (20)
                         Restructuring, integration and
      -       -       -  rationalization costs                    -       5
    (36)      -       -  Other                                    -     (36)
-----------------------                                       -------------
    (56)      -     (58) Total non-operating items              (58)    (51)
     13       6     (38) Exceptional items                     (186)     22
=======================                                       =============
                         Total non-operating and
    (43)      6     (96) exceptional items                     (244)    (29)
=======================                                       =============
    109     129     139(b)Chemicals Indicator Margin(a)($/te)   131(b)  113
=======================                                       =============
                          Petrochemicals production (kte)
    771     856     728   UK                                  2,424   2,354
  2,724   2,726   2,724   Rest of Europe                      8,178   8,168
  2,507   2,514   2,600   USA                                 7,657   7,399
  1,038   1,075   1,097   Rest of World                       3,304   2,869
-----------------------                                      --------------
  7,040   7,171   7,149   Total production                   21,563  20,790
=======================                                      ==============

(a) The Chemicals Indicator Margin (CIM) is a weighted average of
    externally-based product margins. It is based on market data collected
    by Nexant in their quarterly market analyses, then weighted based on
    BP's product portfolio. It does not cover our entire portfolio of
    products, and consequently is only indicative of the margins achieved by
    BP in any particular period.

(b) Provisional. The data for the third quarter is based on two months'
    actuals and one month of provisional data.

Petrochemicals' pro forma replacement cost result before interest and tax for
the third quarter was $188 million, an increase of $104 million compared with
the third quarter last year as higher margins more than offset higher net
non-operating and exceptional charges. The result for the nine months was 30%
lower than a year ago reflecting higher non-operating costs and exceptional
charges. The third quarter result was down from $208 million in the second
quarter, due to higher margins and lower fixed costs being more than offset by
revisions to environmental and other provisions of $58 million and an
exceptional charge of $38 million arising from the sale of our Fabrics and
Fibres business.

Production of 7,149 thousand tonnes in the third quarter was 109 thousand tonnes
higher than the third quarter last year due primarily to higher asset
utilization. Year-to-date production was 773 thousand tonnes higher than a year
ago due to new Asian PTA capacity and higher asset utilization. Production in
the third quarter was down 22 thousand tonnes compared  with the second quarter
due to UK maintenance activity, which more than offset increased volumes in
other regions.

During the quarter we have progressed with plans to consolidate the Olefins and
Derivatives (O&D) business into a stand-alone entity able to operate separately
from the BP Group. Shortly after the quarter we reached agreement to sell the
Fabrics and Fibres business, for which completion is expected during the fourth
quarter.

                          Customer Facing Segments
                          Gas, Power and Renewables

    3Q      2Q      3Q                                           Nine Months
  2003    2004    2004   $ million                              2004    2003
======================                                        ==============
                         Replacement cost profit
   127     216     130   before interest and tax                 544     484
     -       -       -   Acquisition amortization                  -       -
----------------------                                        --------------
                         Pro forma replacement cost result
   127     216     130   before interest and tax                 544     484
======================                                        ==============
                         Results include:
     -       -       -   Asset write-downs/impairment              -       -
     -       -       -   Environmental and other provisions        -       -
                         Restructuring, integration and
     -       -       -   rationalization costs                     -       -
     -       -       -   Other                                     -       -
----------------------                                        --------------
     -       -       -   Total non-operating items                 -       -
    (2)      -      16   Exceptional items                        16       4
======================                                        ==============
                         Total non-operating and
    (2)      -      16   exceptional items                        16       4
======================                                        ==============
                         Gas sales volumes (mmcf/d)
 2,174   2,495   1,893   UK                                    2,471   2,653
   362     266     485   Rest of Europe                          398     418
11,808  12,470  13,585   USA                                  13,228  11,328
11,133  12,070  13,250   Rest of World                        13,078  11,173
----------------------                                        --------------
25,477  27,301  29,213   Total gas sales volumes              29,175  25,572
=======================                                       ==============
                         NGL sales volumes (mb/d)
     3       8       9   UK                                        7       3
     -       3       7   Rest of Europe                            4       -
   346     334     358   USA                                     384     305
   187     166     161   Rest of World                           190     195
-----------------------                                       --------------
   536     511     535   Total NGL sales volumes                 585     503
=======================                                       ==============

The pro forma replacement cost result before interest and tax for the third
quarter and nine months was $130 million and $544 million, respectively,
compared with $127 million and $484 million a year ago. The increase in the
third quarter result reflects improved margins in the NGL and Solar businesses
and higher exceptional gains from the disposal of BP's interest in an NGL plant
in Canada, offset partly by weaker gas marketing and trading margins. The result
for the nine months is higher than a year ago due principally to higher
contributions from the NGL and Solar businesses and a higher exceptional gain
more than offsetting the weaker margins seen in gas marketing and trading.

During the quarter, the Tangguh LNG project (BP share 37.16%) signed a sale and
purchase agreement with K Power of South Korea to supply up to 0.8 million
tonnes of LNG per annum for 20 years starting in 2006. BP Shipping announced an
order for four new LNG carriers from Hyundai Heavy Industries of South Korea for
delivery in 2007 and 2008. Since the end of the third quarter, the Tangguh LNG
project has signed a sale and purchase agreement with Sempra Energy LNG to
supply up to 3.7 million tonnes of LNG per annum from Indonesia to markets in
Mexico and the US for 20 years, beginning in 2008.

                        Other Businesses and Corporate

    3Q      2Q      3Q                                          Nine Months
  2003    2004    2004   $ million                             2004    2003
======================                                        =============
                         Replacement cost profit (loss)
  (330)   (164)   (424)  before interest and tax                541    (649)
     -       -       -   Acquisition amortization                 -       -
----------------------                                        -------------
                         Pro forma replacement cost result
  (330)   (164)   (424)  before interest and tax                541    (649)
======================                                        =============
                         Results include:
     -       -       -   Asset write-downs/impairment             -       -
  (112)      -    (225)  Environmental and other provisions    (225)   (112)
                         Restructuring, integration and
     -       -     (19)  rationalization costs                  (19)      -
     -       -       -   Other                                    -       -
----------------------                                       --------------
  (112)      -    (244)  Total non-operating items             (244)   (112)
   (14)     (1)      1   Exceptional items                    1,313     (20)
======================                                       ==============
                         Total non-operating
  (126)     (1)   (243)  and exceptional items                1,069    (132)
======================                                       ==============

Other businesses and corporate comprises Finance, the group's aluminium asset,
interest income and costs relating to corporate activities. The third quarter
result includes a charge of $225 million in respect of new, and revisions to
existing, environmental and other provisions and a charge of $19 million in
respect of the separation of the Olefins and Derivatives business. In the first
quarter, BP sold its interest in PetroChina for $1.65 billion and its interest
in Sinopec for $0.7 billion. These interests were previously included in other
businesses and corporate.
                                   Dividends

    3Q      2Q      3Q                                          Nine Months
  2003    2004    2004                                         2004    2003
======================                                       ==============
                         Dividends per ordinary share
  6.50    7.10    7.10   cents                                20.95   19.25
 3.857   3.860   3.910   pence                               11.577  11.843
  39.0    42.6    42.6   Dividends per ADS (cents)            125.7   115.5
-----------------------                                      --------------

BP today announced a third quarterly dividend for 2004 of 7.10 cents per
ordinary share. Holders of ordinary shares will receive 3.910 pence per share
and holders of American Depositary Receipts (ADRs) $0.426 per ADS share. The
dividend is payable on 6 December to shareholders on the register on 12
November. Participants in the Dividend Reinvestment Plan (DRIP) or the DRIP
facility in the US Direct Access Plan will receive the dividend in the form of
shares, also on 6 December. The fourth quarter 2004 results and dividend will be
announced on 8 February 2005.

                                Outlook

BP Group Chief Executive, Lord Browne, concluded:

   'The world economy's expansion has continued, despite patches of softer
   growth in the US and Europe. Activity in the US appears to have
   strengthened in the third quarter although the recovery across the major
   European economies remains below trend on average and growth in parts of
   Asia, including China, appears to have moderated. Continued growth is
   expected across the world economy at around trend rates.

   'Oil prices averaged $41.54 per barrel (Dated Brent) in the third quarter
   - over $6 per barrel higher than second quarter prices. Loss of US
   production following Hurricane Ivan, along with low inventories and
   limited spare capacity, propelled prices to record nominal highs in
   October, averaging almost $50 per barrel to date. Price spreads between
   light, sweet and heavier, sourer crudes also touched record highs
   recently. The outlook for the rest of 2004 will depend upon the rate of
   US production recovery after Hurricane Ivan and the strength of oil
   demand growth. Medium term oil price prospects will principally depend on
   the future strength of supply, demand growth, OPEC politics and
   perceptions of risks to political stability in certain of those nations.
   Oil prices are considered to have an approximate support level of $30 per
   barrel for at least the medium term, with chances of spiking above this
   level.

   'US natural gas prices averaged $5.75/mmbtu (Henry Hub first of month
   index) in the third quarter, despite the oil price surge, down around
   $0.25/mmbtu versus the second quarter. Following a cool summer, working
   gas inventories are at record highs going into the winter heating season.
   However, the 12-month futures strip (NYMEX Henry Hub) is trading
   currently at almost $8/mmbtu, reflecting oil price strength.

   'Refining margins in the third quarter slipped from the second quarter's
   record levels but remained high by historical standards. Strong demand
   growth, record refinery throughputs and low aggregate OECD product
   inventories continued to underpin the refining environment.  Margins
   began the fourth quarter strongly amid concerns over winter heating oil
   supplies in Europe and lost refinery production due to Hurricane Ivan.
   The premium for light crude over heavy crude has been driven to
   exceptional levels, favouring upgraded refineries over less complex
   sites. The refining system should adjust, but this will take time.
   Marketing margins compressed in the third quarter due to increasing crude
   prices, product cost volatility and competitive pressure.

   'Petrochemical margins held during the third quarter as product prices
   continued to strengthen, enabling the businesses to offset rapidly rising
   feedstock and energy costs. Current margins appear sustainable, although
   energy price volatility and foreign exchange rates are expected to
   influence future margins. Demand remained robust during the quarter, with
   sales volumes stable compared with the previous quarter.

   'Capital expenditure, excluding acquisitions, for the nine months was
   $9.8 billion, and is expected to be slightly above $14 billion for the
   year. 2005 capital spending is expected to be around $14 billion, above
   our previous forecast primarily due to the weak US dollar and the
   assumption that recent sector specific inflationary pressure in the
   market price of capital goods is sustained through 2005. The share
   buyback programme is continuing, reducing the number of shares
   outstanding thus increasing our ability to accelerate per share dividend
   growth.'

     ----------------------------------------------------------------------
     The foregoing discussion, in particular the statements under 'Outlook',
     contains forward looking statements particularly those regarding BP's
     asset portfolio and changes in it, capital expenditure, costs, demand,
     divestments, future performance, growth and other trend projections,
     impact of foreign exchange rates, maintenance, margins, prices,
     production, share repurchases and the timing of projects and pending
     transactions. Forward looking statements by their nature involve risks
     and uncertainties and actual results may differ from those expressed in
     such statements depending on a variety of factors including the
     following: the timing of bringing new fields on stream; industry
     product supply; demand and pricing; currency exchange rates;
     operational problems; general economic conditions including
     inflationary pressures; political stability and economic growth in
     relevant areas of the world; changes in governmental regulations;
     exchange rate fluctuations; development and use of new technology and
     successful commercial relationships; the actions of competitors;
     natural disasters and other changes in business conditions; prolonged
     adverse weather conditions; wars and acts of terrorism or sabotage; and
     other factors discussed in this Announcement. For more information you
     should refer to our  Annual Report and Accounts 2003 and our 2003
     Annual Report on Form 20-F filed with the US Securities and Exchange
     Commission.

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


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