3rd Quarter Results Pt 2 of 3
BP PLC
28 October 2003
BP p.l.c. and Subsidiaries
Summarized Group Results
Third Second Third
Quarter Quarter Quarter Nine Months
2002 2003 2003 2003 2002
======================= ==============
$ million $ million
1,572 3,153 3,520 Exploration and Production 10,999 5,958
57 103 98 Gas, Power and Renewables 395 282
237 889 455 Refining and Marketing 1,975 908
132 313 81 Petrochemicals 533 411
(241) (134) (310) Other businesses and corporate (609) (494)
----------------------- --------------
Total replacement cost
1,757 4,324 3,844 operating profit 13,293 7,065
Profit (loss) on sale of
fixed assets and businesses or
1,794 280 172 termination of operations (Note 4) 846 2,061
----------------------- --------------
Replacement cost profit before
3,551 4,604 4,016 interest and tax 14,139 9,126
305 (951) 84 Stock holding gains (losses)(Note 5) (68) 1,303
----------------------- --------------
Historical cost profit before
3,856 3,653 4,100 interest and tax 14,071 10,429
300 191 213 Interest expense (Note 6) 624 947
----------------------- --------------
3,556 3,462 3,887 Profit before taxation 13,447 9,482
713 1,768 1,450 Taxation (Note 7) 5,023 3,217
----------------------- --------------
2,843 1,694 2,437 Profit after taxation 8,424 6,265
3 60 43 Minority shareholders' interest 129 71
----------------------- --------------
2,840 1,634 2,394 Profit for the period 8,295 6,194
----------------------- --------------
1,340 1,434 1,438 Distribution to shareholders 4,258 3,977
======================= ==============
Earnings per ordinary share - cents
12.67 7.41 10.85 Basic 37.37 27.63
12.61 7.39 10.74 Diluted 37.18 27.49
======================= ==============
Replacement Cost Results
Historical cost profit
2,840 1,634 2,394 for the period 8,295 6,194
Stock holding (gains) losses
(305) 951 (84) net of MSI 68 (1,278)
----------------------- --------------
Replacement cost profit
2,535 2,585 2,310 for the period 8,363 4,916
(1,769) (131) (168) Exceptional items, net of tax (639) (1,915)
----------------------- --------------
Replacement cost profit before
766 2,454 2,142 exceptional items 7,724 3,001
----------------------- --------------
Earnings per ordinary share - cents
On replacement cost profit before
3.42 11.08 9.71 exceptional items 34.80 13.39
======================= =============
Summarized Group Balance Sheet
30 September 31 December
2003 2002
--------------------------
$ million
Fixed assets
Intangible assets 13,631 15,566
Tangible assets 88,930 87,682
Investments 16,935 10,811
---------------------
119,496 114,059
---------------------
Current assets
Stocks 10,868 10,181
Debtors 38,243 33,150
Investments 404 215
Cash at bank and in hand 1,091 1,520
---------------------
50,606 45,066
Creditors - amounts falling due within one year
Finance debt 6,811 10,086
Other creditors 41,191 36,215
---------------------
Net current assets (liabilities) 2,604 (1,235)
---------------------
Total assets less current liabilities 122,100 112,824
Creditors - amounts falling due
after more than one year
Finance debt 13,159 11,922
Other creditors 5,778 3,455
Provisions for liabilities and charges
Deferred taxation 14,282 13,514
Other provisions 14,525 13,886
---------------------
Net assets 74,356 70,047
Minority shareholders' interest - equity 1,074 638
---------------------
BP shareholders' interest 73,282 69,409
=====================
Movement in BP shareholders' interest: $ million
At 31 December 2002 69,409
Profit for the period 8,295
Distribution to shareholders (4,258)
Currency translation differences (net of tax) 1,723
Issue of ordinary share capital for employee share schemes 112
Repurchase of ordinary share capital (1,999)
------
At 30 September 2003 73,282
======
Summarized Group Cash Flow Statement
Third Second Third
Quarter Quarter Quarter Nine Months
2002 2003 2003 2003 2002
======================= ============
$ million $ million
Net cash inflow from
4,376 7,346 4,891 operating activities (a) 18,198 13,145
----------------------- ---------------
30 28 39 Dividends from joint ventures 80 129
----------------------- ---------------
Dividends from
96 177 65 associated undertakings 297 303
----------------------- ---------------
Servicing of finance and returns
on investments
63 52 41 Interest received 124 168
(218) (446) (163) Interest paid (816) (869)
4 42 26 Dividends received 74 64
Dividends paid to
(13) (11) (4) minority shareholders (17) (29)
----------------------- ---------------
Net cash outflow from servicing of
(164) (363) (100) finance and returns on investments (635) (666)
----------------------- ---------------
Taxation
(206) (280) (264) UK corporation tax (856) (560)
(455) (1,573) (539) Overseas tax (2,432) (1,473)
----------------------- ---------------
(661) (1,853) (803) Tax paid (3,288) (2,033)
----------------------- ---------------
Capital expenditure and
financial investment
(2,980) (2,760) (3,063) Payments for fixed assets (8,700) (8,572)
Proceeds from the sale
488 1,652 874 of fixed assets 4,843 1,744
----------------------- ---------------
Net cash outflow for
capital expenditure and
(2,492) (1,108) (2,189) financial investment (3,857) (6,828)
----------------------- --------------
Acquisitions and disposals
Investments in associated
(125) (331) (243) undertakings (760) (756)
Proceeds from the sale of
2,338 - - investment in Ruhrgas - 2,338
(2,607) (150) (28) Acquisitions, net of cash acquired (178) (4,296)
Acquisition of investment in
- - (2,625) TNK-BP joint venture (2,625) -
Net investment in
(23) (2) - other joint ventures (16) (137)
Proceeds from the sale
55 19 - of businesses 179 1,670
----------------------- ---------------
Net cash outflow for
(362) (464) (2,896) acquisitions and disposals (3,400) (1,181)
----------------------- ---------------
(1,346) (1,386) (1,433) Equity dividends paid (4,216) (3,924)
----------------------- ---------------
(523) 2,377 (2,426) Net cash inflow (outflow) 3,179 (1,055)
======================= ===============
(219) 1,355 (1,471) Financing (b) 3,477 (485)
(32) 93 76 Management of liquid resources 182 (164)
(272) 929 (1,031) (Decrease) increase in cash (480) (406)
----------------------- ---------------
(523) 2,377 (2,426) 3,179 (1,055)
======================= ===============
Analysis of Cash Flow
Third Second Third
Quarter Quarter Quarter Nine Months
2002 2003 2003 2003 2002
======================= ==============
$ million $ million
(a) Reconciliation of historical
cost profit before interest
and tax to net cash inflow
from operating activities
Historical cost profit before
3,856 3,653 4,100 interest and tax 14,071 10,429
3,506 2,653 2,485 Depreciation and amounts provided 7,847 7,886
Exploration expenditure
55 43 75 written off 168 261
Share of profits of joint ventures
(172) (207) (433) and associated undertakings (944) (716)
(62) (100) (72) Interest and other income (220) (243)
(Profit) loss on sale of fixed
(1,796) (280) (172) assets and businesses (846) (2,061)
332 204 765 Charge for provisions 1,171 826
(392) (316) (278) Utilization of provisions (822) (1,003)
(155) 193 (1,048) (Increase) decrease in stocks (479) (1,458)
(379) 3,252 (638) (Increase) decrease in debtors (4,321) (2,403)
(417) (1,749) 107 Increase (decrease) in creditors 2,573 1,627
----------------------- ---------------
Net cash inflow from
4,376 7,346 4,891 operating activities 18,198 13,145
======================= ===============
(b) Financing
(558) (208) (1,433) Long-term borrowing (2,656) (3,056)
567 607 1,774 Repayments of long-term borrowing 2,784 1,464
(1,627) (418) (1,924) Short-term borrowing (2,968) (5,879)
Repayments of short-term
704 388 143 borrowing 4,430 6,414
----------------------- ---------------
(914) 369 (1,440) 1,590 (1,057)
(55) (14) (31) Issue of ordinary share capital (112) (178)
Repurchase of ordinary
750 1,000 - share capital 1,999 750
----------------------- ---------------
Net cash outflow
(219) 1,355 (1,471) (inflow)from financing 3,477 (485)
======================= ===============
Capital Expenditure and Acquisitions
Third Second Third
Quarter Quarter Quarter Nine Months
2002 2003 2003 2003 2002
======================= =============
$ million $ million
By business
Exploration and Production
270 220 182 UK 598 778
61 73 80 Rest of Europe 204 189
980 1,009 989 USA 2,964 3,224
929 1,160 6,999 Rest of World(a) 9,083 2,935
----------------------- --------------
2,240 2,462 8,250 12,849 7,126
----------------------- --------------
Gas, Power and Renewables
7 24 15 UK 47 28
29 9 6 Rest of Europe(b) 30 120
52 48 18 USA 104 100
19 17 19 Rest of World 43 37
----------------------- --------------
107 98 58 224 285
----------------------- --------------
Refining and Marketing
56 66 89 UK 228 232
198 64 169 Rest of Europe(c) 337 5,486
298 228 322 USA 886 861
53 27 79 Rest of World 130 128
----------------------- --------------
605 385 659 1,581 6,707
----------------------- --------------
Petrochemicals
30 30 51 UK 81 55
58 21 16 Rest of Europe 68 163
49 95 55 USA 196 146
43 52 60 Rest of World 131 174
----------------------- --------------
180 198 182 476 538
----------------------- --------------
48 183 59 Other businesses and corporate(d) 278 367
----------------------- --------------
3,180 3,326 9,208 15,408 15,023
======================= ==============
By geographical area
394 361 377 UK 1,039 1,203
353 167 271 Rest of Europe 640 6,158
1,389 1,542 1,403 USA 4,341 4,387
1,044 1,256 7,157 Rest of World 9,388 3,275
----------------------- --------------
3,180 3,326 9,208 15,408 15,023
======================= ==============
(a) Third quarter and nine months 2003 included the investment in the TNK-BP
joint venture.
Nine months 2002 included the acquisition of an additional interest in
Sidanco.
(b) Nine months 2002 included the acquisition of a 5% stake in Enagas.
(c) Nine months 2002 included the acquisition of 100% of Veba.
(d) Nine months 2002 included the acquisition of the minority interest in
Veba's upstream oil and gas assets.
US dollar/Sterling exchange rates
1.55 1.62 1.61 Average rate for the period 1.61 1.48
1.55 1.65 1.66 Period-end rate 1.66 1.55
======================= =============
Analysis of Replacement Cost Operating Profit
Third Second Third
Quarter Quarter Quarter Nine Nonths
2002 2003 2003 2003 2002
======================= =============
$ million $ million
By business
Exploration and Production
185 473 582 UK 2,189 1,561
213 141 124 Rest of Europe 458 537
661 1,441 1,368 USA 4,614 1,754
513 1,098 1,446 Rest of World 3,738 2,106
----------------------- --------------
1,572 3,153 3,520 10,999 5,958
----------------------- --------------
Gas, Power and Renewables
(66) 18 13 UK 34 (63)
17 (5) (12) Rest of Europe (26) 99
28 85 54 USA 175 16
78 5 43 Rest of World 212 230
----------------------- -------------
57 103 98 395 282
----------------------- -------------
Refining and Marketing
(158) (31) (119) UK (124) (343)
236 423 325 Rest of Europe 1,085 624
55 323 51 USA 471 255
104 174 198 Rest of World 543 372
----------------------- -------------
237 889 455 1,975 908
----------------------- -------------
Petrochemicals
6 25 (63) UK (72) (35)
161 199 54 Rest of Europe 341 272
54 65 47 USA 154 161
(89) 24 43 Rest of World 110 13
----------------------- -------------
132 313 81 533 411
----------------------- -------------
(241) (134) (310) Other businesses and corporate (609) (494)
----------------------- --------------
1,757 4,324 3,844 13,293 7,065
======================= ==============
By geographical area
(131) 363 314 UK 1,730 903
620 756 494 Rest of Europe 1,852 1,532
672 1,863 1,295 USA 5,040 1,933
596 1,342 1,741 Rest of World 4,671 2,697
----------------------- --------------
1,757 4,324 3,844 13,293 7,065
======================= ==============
Included above
104 101 303 Share of profits of joint ventures 521 263
Share of profits of
71 110 128 associated undertakings 418 455
----------------------- --------------
175 211 431 939 718
======================= ==============
Notes
1. Turnover
Third Second Third
Quarter Quarter Quarter Nine Months
2002 2003 2003 2003 2002
======================= ==============
$ million $ million
By business
6,220 7,433 7,310 Exploration and Production 23,811 18,397
9,313 14,875 15,904 Gas, Power and Renewables 48,777 25,316
35,634 36,949 40,245 Refining and Marketing 118,629 92,393
3,720 4,003 3,798 Petrochemicals 11,739 9,946
Other businesses
108 129 138 and corporate 378 379
----------------------- ---------------
54,995 63,389 67,395 203,334 146,431
Less: sales between
5,941 7,082 7,253 businesses 23,097 17,432
----------------------- ---------------
49,054 56,307 60,142 Group excluding JVs 180,237 128,999
Share of sales by
369 364 914 joint ventures 1,676 1,052
----------------------- ---------------
49,423 56,671 61,056 181,913 130,051
======================= ===============
By geographical area
Group excluding JVs
12,160 13,456 12,856 UK 41,739 35,664
13,460 12,206 12,181 Rest of Europe 37,409 34,798
22,880 25,984 31,011 USA 88,093 57,808
8,537 12,102 12,766 Rest of World 38,604 23,556
----------------------- ---------------
57,037 63,748 68,814 205,845 151,826
Less: sales between
7,983 7,441 8,672 areas 25,608 22,827
----------------------- ---------------
49,054 56,307 60,142 180,237 128,999
======================= ===============
2. 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
3. Operating profits are after charging:
Third Second Third
Quarter Quarter Quarter Nine Months
2002 2003 2003 2003 2002
======================= =============
$ million $ million
Exploration expense
16 2 11 UK 16 26
5 5 23 Rest of Europe 32 41
53 47 60 USA 144 228
45 47 42 Rest of World 157 170
----------------------- --------------
119 101 136 349 465
======================= ==============
Production taxes (a)
92 58 65 UK petroleum revenue tax 256 245
258 324 351 Overseas production taxes 1,046 667
----------------------- --------------
350 382 416 1,302 912
======================= ==============
(a) Production taxes are charged against Exploration and Production's
operating profit and are not included in the charge for taxation in
Note 7.
4. Analysis of exceptional items
(25) 333 196 Exploration and Production 962 407
1,585 6 (2) Gas, Power and Renewables 4 1,584
262 (49) (21) Refining and Marketing (122) 248
11 2 13 Petrochemicals 22 (134)
(39) (12) (14) Other businesses and corporate (20) (44)
----------------------- --------------
Profit (loss) on sale of fixed
assets and businesses or
1,794 280 172 termination of operations 846 2,061
(25) (149) (4) Taxation charge (207) (146)
----------------------- --------------
Exceptional items
1,769 131 168 after taxation 639 1,915
======================= ==============
Notes
5. Stock holding gains (losses)
Third Second Third
Quarter Quarter Quarter Nine Months
2002 2003 2003 2003 2002
======================= =============
$ million $ million
3 (3) - Exploration and Production 3 5
2 (72) (7) Gas, Power and Renewables (52) 10
311 (773) 89 Refining and Marketing (64) 1,250
(11) (103) 2 Petrochemicals 45 38
---------------------- --------------
305 (951) 84 (68) 1,303
- - - Minority shareholders' interest - 25
---------------------- --------------
305 (951) 84 (68) 1,278
====================== ==============
6. Interest expense
250 163 178 Group interest payable(a) 528 778
(27) (43) (53) Capitalized (130) (67)
----------------------- --------------
223 120 125 398 711
15 17 23 Joint ventures 53 44
19 12 11 Associated undertakings 33 64
Unwinding of discount
43 42 45 on provisions 131 128
Unwinding of discount on
deferred consideration for
acquisition of investment
- - 9 in TNK-BP 9 -
----------------------- --------------
300 191 213 624 947
======================= ==============
(a) Includes charges
relating to the early
- 3 18 redemption of debt 21 -
----------------------- --------------
7. Charge for taxation
463 1,406 1,528 Current 4,515 2,036
250 362 (78) Deferred(a) 508 1,181
----------------------- --------------
713 1,768 1,450 5,023 3,217
======================= ==============
235 413 280 UK(a) 1,178 1,070
478 1,355 1,170 Overseas 3,845 2,147
----------------------- --------------
713 1,768 1,450 5,023 3,217
======================= ==============
(a) Includes the adjustment
to the North Sea deferred
tax balance for the
supplementary
- - - UK corporation tax of 10% - 355
----------------------- --------------
Notes
8. Analysis of changes in net debt
Third Second Third
Quarter Quarter Quarter Nine Months
2002 2003 2003 2003 2002
======================= =============
$ million $ million
Opening balance
21,409 19,042 18,594 Finance debt 22,008 21,417
1,284 1,151 2,115 Less: Cash 1,520 1,358
285 228 329 Current asset investments 215 450
----------------------- ---------------
19,840 17,663 16,150 Opening net debt 20,273 19,609
----------------------- ---------------
Closing balance
22,276 18,594 19,970 Finance debt 19,970 22,276
1,005 2,115 1,091 Less: Cash 1,091 1,005
285 329 404 Current asset investments 404 285
----------------------- ---------------
20,986 16,150 18,475 Closing net debt 18,475 20,986
----------------------- ---------------
Decrease (increase)
(1,146) 1,513 (2,325) in net debt 1,798 (1,377)
======================= ===============
Movement in cash/
(272) 929 (1,031) bank overdrafts (480) (406)
Increase (decrease) in
(32) 93 76 current asset investments 182 (164)
Net cash outflow (inflow)
from financing(excluding
(914) 369 (1,440) share capital) 1,590 (1,057)
Partnership interests
- - - exchanged for BP loan notes - 1,135
- - 93 Debt transferred to TNK-BP 93 -
Exchange of Exchangeable Bonds
for Lukoil American
- - - Depositary Shares 420 -
13 106 (31) Other movements 139 57
- - (12) Debt acquired (12) (999)
----------------------- --------------
Movement in net debt before
(1,205) 1,497 (2,345) exchange effects 1,932 (1,434)
59 16 20 Exchange adjustments (134) 57
----------------------- --------------
Decrease (increase)
(1,146) 1,513 (2,325) in net debt 1,798 (1,377)
======================= ==============
Notes
9. TNK-BP Operational and Financial Information
29 August -
30 September
2003
============
Production (Net of royalties) (BP share)
Crude oil (mb/d) 654
Natural gas (mmcf/d) 239
Total hydrocarbons (mboe/d)(a) 695
Income statement (BP share) $ million
Replacement cost operating profit 158
Profit (loss) on sale of fixed assets and businesses -
Stock holding gains (losses) -
Interest expense(b) (13)
Taxation (30)
Minority shareholders' interest (1)
------------
Net Income 114
============
Replacement cost profit before exceptional items 114
============
Balance Sheet 30 September
2003
============
$ million
Fixed assets - investments
Gross assets 10,131
Gross liabilities (3,267)
------------
6,864
============
Deferred consideration
Due within one year 1,218
Due after more than one year 2,336
------------
3,554
============
Cash Flow
Net investment in joint ventures (2,625)
============
(a) Natural gas is converted to oil equivalent at 5.8 billion cubic feet
= 1 million barrels.
(b) Does not include $9 million unwinding of discount on deferred
consideration.
Notes
10. Consolidated statement of cash flows presented on a US GAAP format
Third Second Third
Quarter Quarter Quarter Nine Months
2002 2003 2003 2003 2002
======================= =============
$ million $ million
Operating activities
2,843 1,694 2,437 Profit after taxation 8,424 6,265
Adjustments to reconcile
profits after tax to net
cash provided by
operating activities
Depreciation and
3,506 2,653 2,485 amounts provided 7,847 7,886
Exploration expenditure
55 43 75 written off 168 261
Share of (profit) loss of
joint ventures and associates
51 30 (197) less dividends received (315) 11
(Profit) loss on sale
of businesses and
(1,796) (280) (172) fixed assets (846) (2,061)
Working capital movement
(1,002) 1,107 (873) (see analysis below) (1,241) (2,323)
250 362 (78) Deferred taxation 508 1,181
(191) (220) 472 Other 254 (247)
----------------------- ---------------
Net cash provided by
3,716 5,389 4,149 operating activities 14,799 10,973
----------------------- ---------------
Investing activities
(3,007) (2,803) (3,116) Capital expenditures (8,830) (8,639)
Acquisitions, net of
(2,607) (150) (2,653) cash acquired (2,803) (4,296)
Investment in
(125) (331) (243) associated undertakings (760) (756)
Net investment in
(23) (2) - joint ventures (16) (137)
Proceeds from
2,881 1,671 874 disposal of assets 5,022 5,752
----------------------- --------------
Net cash used in
(2,881) (1,615) (5,138) investing activities (7,387) (8,076)
----------------------- --------------
Notes
10. Consolidated statement of cash flows presented on a US GAAP format
(continued)
Third Second Third
Quarter Quarter Quarter Nine Months
2002 2003 2003 2003 2002
======================= =============
$ million $ million
Financing activities
Net proceeds from shares
(695) (986) 31 issued (repurchased) (1,887) (572)
Proceeds from
558 208 1,433 long-term financing 2,656 3,056
Repayments of
(567) (607) (1,774) long-term financing (2,784) (1,464)
Net (decrease) increase
923 30 1,781 in short-term debt (1,462) (535)
Dividends paid
(1,346) (1,386) (1,433) - BP shareholders (4,216) (3,924)
(13) (11) (4) - Minority shareholders (17) (29)
----------------------- -------------
Net cash used in
(1,140) (2,752) 34 financing activities (7,710) (3,468)
----------------------- --------------
Currency translation
differences relating to
26 43 6 cash and cash equivalents 58 53
----------------------- --------------
(Decrease) increase in
(279) 1,065 (949) cash and cash equivalents (240) (518)
Cash and cash equivalents
1,569 1,379 2,444 at beginning of period 1,735 1,808
----------------------- --------------
Cash and cash equivalents
1,290 2,444 1,495 at end of period 1,495 1,290
----------------------- --------------
Analysis of working
capital movement
(Increase) decrease
(155) 193 (1,048) in stocks (479) (1,458)
(Increase) decrease
(345) 3,234 (656) in debtors (4,368) (2,479)
Increase (decrease)
(502) (2,320) 831 in creditors 3,606 1,614
----------------------- --------------
Total working
(1,002) 1,107 (873) capital movement (1,241) (2,323)
======================= ==============
Notes
11. Ordinary shares
Third Second Third
Quarter Quarter Quarter Nine Months
2002 2003 2003 2003 2002
================================== ================
(shares thousand) (shares thousand)
Shares in
issue at period
22,374,747 22,101,622 22,107,715 end (a) 22,107,715 22,374,747
Average number
of shares
outstanding
22,408,297 22,164,026 22,092,365 (b) 22,193,403 22,412,655
---------------------------------- ----------------------
(a) Each BP ADS represents six BP Ordinary Shares.
(b) Excludes shares held by the Employee Share Ownership Plans.
12. Statutory accounts
The financial information shown in this publication is unaudited and
does not constitute statutory accounts. The 2002 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
------------------- ----------------
Press Office Roddy Kennedy Ian Stewart
+44 (0)20 7496 4624 +1 212 451 8026
Investor Relations Fergus McLeod Terry LaMore
+44 (0)20 7496 4717 +1 212 451 8034
http://www.bp.com/investors
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