3rd Quarter Supplement

BP PLC 6 November 2001 BP p.l.c. Group Results Third Quarter 2001 London 6 November 2001 INVESTOR RELATIONS SUPPLEMENT REPLACEMENT COST OPERATING PROFIT ADJUSTED FOR SPECIAL ITEMS(a) AND ACQUISITION AMORTIZATION(b) BY SEGMENT Third Second Third Quarter Quarter Quarter Nine Months 2000 2001 2001 2001 2000 ======================= ============= $ million Exploration and Production 1,068 1,009 771 UK 2,963 3,128 221 190 188 Rest of Europe 604 594 1,754 1,620 1,203 USA 5,340 4,408 1,113 1,099 908 Rest of World 3,217 2,880 ----------------------- -------------- 4,156 3,918 3,070 12,124 11,010 ----------------------- -------------- Gas and Power 14 39 36 UK 87 13 28 34 24 Rest of Europe 120 94 14 96 89 USA 220 75 76 4 (19) Rest of World (12) 206 ----------------------- -------------- 132 173 130 415 388 ----------------------- -------------- Refining and Marketing 181 10 60 UK 78 362 255 241 255 Rest of Europe 658 450 739 1,357 788 USA 2,840 2,144 84 154 186 Rest of World 469 281 ----------------------- -------------- 1,259 1,762 1,289 4,045 3,237 ----------------------- -------------- Chemicals (15) (33) (58) UK (141) (76) 76 19 95 Rest of Europe 194 273 162 (1) 59 USA 71 572 44 24 17 Rest of World 79 127 ----------------------- -------------- 267 9 113 203 896 ----------------------- -------------- Other businesses and corporate (21) (46) (104) UK (228) (142) 21 9 (9) Rest of Europe (19) 47 (117) (72) (110) USA (250) (393) (13) (19) 101 Rest of World 120 (2) ----------------------- -------------- (130) (128) (122) (377) (490) ----------------------- -------------- 5,684 5,734 4,480 16,410 15,041 ======================= ============== (a) The special items refer to non-recurring charges and credits. The special items for the quarter comprise Castrol integration costs, Erdolchemie rationalization costs and a bond redemption charge. In addition, for the nine months, special items included rationalization costs in the European downstream commercial business. (b) Depreciation and amortization relating to the fixed asset revaluation adjustment and goodwill consequent upon the ARCO and Burmah Castrol acquisitions. ACQUISITION AMORTIZATION BY SEGMENT Third Second Third Quarter Quarter Quarter Nine Months 2000 2001 2001 2001 2000 ======================= ============= $ million Exploration and Production 29 39 42 UK 110 55 372 406 353 USA 1,151 685 11 32 34 Rest of World 101 21 ----------------------- ------------- 412 477 429 1,362 761 ----------------------- ------------- Refining and Marketing 104 98 93 UK 295 104 81 78 81 USA 243 151 ----------------------- ------------- 185 176 174 538 255 ----------------------- ------------- 597 653 603 1,900 1,016 ======================= ============= SPECIAL ITEMS BY SEGMENT (PRE-TAX) Third Second Third Quarter Quarter Quarter Nine Months 2000 2001 2001 2001 2000 ======================= ============= $ million Exploration and Production 42 - - UK - 112 - - - Rest of Europe - - 135 - - USA - 287 15 - - Rest of World - 76 ----------------------- ------------- 192 - - - 475 ----------------------- ------------- Gas and Power - - - UK - - - - - Rest of Europe - - - - - USA - - - - - Rest of World - - ----------------------- ------------- - - - - - ----------------------- ------------- Refining and Marketing 14 28 18 UK 61 14 22 64 33 Rest of Europe 123 51 58 4 11 USA 19 170 16 13 50 Rest of World 71 16 ----------------------- ------------- 110 109 112 274 251 ----------------------- ------------- Chemicals 2 - - UK - 5 1 - 8 Rest of Europe 8 2 1 - - USA - 47 - - - Rest of World - - ----------------------- ------------- 4 - 8 8 54 ----------------------- ------------- Other businesses and corporate 37 - - UK - 56 - - - Rest of Europe - - 49 - - USA - 196 - - - Rest of World - - ----------------------- ------------- 86 - - - 252 ----------------------- ------------- 392 109 120 Total special items before interest 282 1,032 - 50 2 Interest - bond redemption charges 62 - ----------------------- ------------- 392 159 122 Total 344 1,032 ======================= ============= ENVIRONMENTAL INDICATORS Third Second Third Quarter Quarter Quarter Nine Months 2000 2001 2001 2001 2000 ======================= ============= Average oil realizations(a)($/bbl) 28.46 26.58 24.34 UK 25.33 27.01 27.44 23.58 22.38 USA 23.58 25.22 27.54 23.93 22.71 Rest of World 23.40 26.15 27.84 24.74 23.08 BP Average 24.22 26.13 ======================= ============= 30.42 27.39 25.30 Brent oil price 26.14 28.07 31.71 27.88 26.72 West Texas Intermediate oil price 27.77 29.84 ======================= ============= Average natural gas realizations ($/mcf) 2.33 2.85 2.52 UK 3.05 2.18 3.87 4.35 2.63 USA 4.68 3.17 2.29 2.58 2.27 Rest of World 2.73 2.11 3.01 3.43 2.49 BP Average 3.66 2.57 ======================= ============= 4.27 4.66 2.93 Henry Hub gas price(b)($/mmBtu) 4.88 3.41 ======================= ============= Global Indicator Refining Margin(c) ($/bbl) 3.44 3.35 1.74 NWE 2.48 3.26 3.87 7.71 3.24 USGC 5.87 3.92 3.06 10.51 7.20 Midwest 7.20 4.18 12.54 9.11 8.17 USWC 9.40 8.31 3.19 0.96 0.75 Singapore 0.80 2.08 4.83 5.78 3.83 BP Average 4.62 3.99 ======================= ============= 128 105 110(e)Chemicals Indicator Margin(d)($/te) 107(e) 130 ======================= ============= (a) Crude oil and natural gas liquids. (b) Henry Hub First of Month Index. (c) The Global Indicator Refining Margin (GIM) is the average of seven regional indicator margins weighted for BP's crude refining capacity in each region. Each regional indicator margin is based on a single representative crude with product yields characteristic of the typical level of upgrading complexity. (d) The Chemicals Indicator Margin (CIM) is a weighted average of externally-based product margins reflecting industry supply/demand conditions. It is based on market data collected by Chem Systems in their quarterly market analyses, then weighted based on the major components of BP's product portfolio. The products and businesses covered in the CIM are olefins and derivatives, aromatics and derivatives, linear alpha olefins, acetic acid, vinyl acetate monomer and nitriles. Not included are fabrics and fibres, plastic fabrications, poly alpha olefins, anhydrides, speciality intermediates, and the remaining parts of the solvents and acetyls businesses. This quarter the margin indicator has been adjusted to reflect the Erdolchemie purchase and the impact of recently divested businesses. Prior quarters have been restated. (e) Provisional. The data for the third quarter is based on two months' actual and one month of provisional data. PER SHARE AMOUNTS Third Second Third Quarter Quarter Quarter Nine Months 2000 2001 2001 2001 2000 ======================= ============= Ordinary shares outstanding at 22,597 22,479 22,442 period end (million) 22,442 22,597 3,766 3,747 3,740 - ADS equivalent (million) 3,740 3,766 n/a 22,448 22,425 Average ordinary shares (million) 22,449 21,343 n/a 3,741 3,738 - ADS equivalent (million) 3,742 3,557 ----------------------- ------------- Replacement cost profit after 2,807 3,131 2,345 exceptional items ($m) 9,018 8,171 12.41 13.95 10.46 cents/ordinary share 40.17 39.19 0.75 0.83 0.63 dollars/ADS 2.41 2.35 ----------------------- ------------- Replacement cost profit before 2,947 3,032 2,355 exceptional items ($m) 8,824 8,415 13.04 13.51 10.50 cents/ordinary share 39.30 39.42 0.78 0.81 0.63 dollars/ADS 2.36 2.37 ----------------------- ------------- Pro forma result adjusted 3,796 3,799 3,049 for special items 10,974 10,113 16.91 16.92 13.60 cents/ordinary share 48.88 47.38 1.01 1.02 0.81 dollars/ADS 2.93 2.84 ----------------------- ------------- EARNINGS ADJUSTED ON TO A QUASI CASH BASIS (PRE-EXCEPTIONAL ITEMS) Third Second Third Quarter Quarter Quarter Nine Months 2000 2001 2001 2001 2000 ======================= ============= $ million 4,695 4,972 3,757 Replacement cost operating profit 14,228 12,993 Earnings from joint ventures (515) (282) (278) and associates (891) (1,503) Dividends from joint ventures 218 213 181 and associated undertakings 516 919 2,093 2,103 2,077 Depreciation and amounts provided(a)6,320 5,221 143 81 86 Exploration expense 336 442 (315) (384) (308) Interest paid (1,053) (883) (2,709) (2,382) (717) Tax paid (3,238) (4,199) Dividends paid to (12) (5) (11) minority shareholders (16) (20) ----------------------- -------------- 3,598 4,316 4,787 16,202 12,970 ----------------------- -------------- 14.62 19.23 21.35 cents/ordinary share 72.17 60.77 0.88 1.15 1.28 dollars/ADS 4.33 3.65 ======================= ============== Includes post tax charges for 1.29 0.35 0.40 special items (cents per share) 0.91 3.57 ======================= ============== (a) All periods include acquisition amortization. RETURN ON AVERAGE CAPITAL EMPLOYED Third Second Third Quarter Quarter Quarter Nine Months 2000 2001 2001 2001 2000 ======================= ============= $ million Replacement cost basis 2,947 3,032 2,355 RC profit before exceptional items 8,824 8,415 460 441 369 Interest 1,256 1,159 12 21 15 Minority shareholders' interest 47 106 ----------------------- -------------- 3,419 3,494 2,739 10,127 9,680 ======================= ============== 96,333 94,862 96,906 Average Capital Employed 96,387 * 14.2% 14.7% 11.3% ROACE 14.0% * ----------------------- ------------- Pro forma and special items adjustments 560 653 603 Acquisition amortization 1,900 937 289 78 89 Special items (post tax) 204 761 Average capital employed 22,172 20,305 19,677 acquisition adjustment 20,325 * ROACE - Pro forma basis 23.0% 22.7% 17.8% adjusted for special items 21.4% * ----------------------- ------------ Historical cost basis Historical cost profit 3,351 3,171 1,940 after exceptional items 8,415 9,460 460 441 369 Interest 1,256 1,159 12 21 15 Minority shareholders' interest 47 106 ----------------------- -------------- 3,823 3,633 2,324 9,718 10,725 ======================= ============== 16.4% 15.3% 9.6% ROACE 13.4% * * As the acquisition of ARCO was completed in April and of Burmah Castrol in July, it is not meaningful to show ROACE for the nine months ended September 30, 2000. NET DEBT RATIO - NET DEBT: NET DEBT + EQUITY Third Second Third Quarter Quarter Quarter Nine Months 2000 2001 2001 2001 2000 ======================= ============= $ million 19,688 20,498 20,474 Gross debt 20,474 19,688 2,469 1,666 1,957 Cash and current asset investments 1,957 2,469 ----------------------- -------------- 17,219 18,832 18,517 Net debt 18,517 17,219 ======================= ============= 73,673 75,730 77,109 Equity 77,109 73,673 19% 20% 19% Net debt ratio 19% 19% ----------------------- -------------- 21,137 19,978 19,375 Acquisition adjustment 19,375 21,137 ----------------------- -------------- 25% 25% 24% Net debt ratio - pro forma basis 24% 25% ======================= ==============

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