4th Quarter & Final Results - Part 2
BP Amoco PLC
15 February 2000
PART 2
BP Amoco p.l.c. and Subsidiaries
Summarized Group Results
Fourth Third Fourth
Quarter Quarter Quarter Year
1998* 1999 1999 1999 1998*
======================= =============
$ million $ million
442 2,240 2,633 Exploration and Production 7,194 3,231
506 641 293 Refining and Marketing 1,840 2,564
125 143 139 Chemicals 686 1,100
(74) (176) (340) Other businesses and corporate (826) (374)
----------------------- -------------
Total replacement cost
999 2,848 2,725 operating profit 8,894 6,521
Profit (loss) on sale of
fixed assets and businesses and
190 (317) (279) termination of operations (Note 4) (337) 1,048
- (184) (256) Restructuring costs (Note 4) (1,943) -
(198) - - Merger expenses (Note 4) - (198)
----------------------- -------------
Replacement cost profit before
991 2,347 2,190 interest and tax 6,614 7,371
(511) 643 506 Stock holding gains (losses)(Note 6) 1,728 (1,391)
----------------------- -------------
Historical cost profit before
480 2,990 2,696 interest and tax 8,342 5,980
308 355 329 Interest expense (Note 7) 1,316 1,177
----------------------- -------------
172 2,635 2,367 Profit before taxation 7,026 4,803
143 738 613 Taxation (Note 8) 1,880 1,520
----------------------- -------------
29 1,897 1,754 Profit after taxation 5,146 3,283
17 49 53 Minority shareholders' interest 138 63
----------------------- -------------
12 1,848 1,701 Profit for the period 5,008 3,220
1,326 972 972 Distribution to shareholders 3,884 4,121
----------------------- -------------
Retained profit (deficit)
(1,314) 876 729 for the period 1,124 (901)
======================= =============
Earnings per ordinary share - cents
0.06 9.53 8.76 Basic 25.82 16.77
0.06 9.48 8.71 Diluted 25.68 16.70
======================= =============
* Restated - for further information see Note 1.
Replacement Cost Results
Fourth Third Fourth
Quarter Quarter Quarter Year
1998* 1999 1999 1999 1998*
======================= =============
$ million $ million
Historical cost profit
12 1,848 1,701 for the period 5,008 3,220
511 (643) (506) Stock holding (gains) losses (1,728) 1,391
----------------------- -------------
Replacement cost profit
523 1,205 1,195 for the period 3,280 4,611
(8) 538 489 Exceptional items, net of tax 2,050 (652)
----------------------- -------------
Replacement cost profit before
515 1,743 1,684 exceptional items 5,330 3,959
======================= =============
Earnings per ordinary share - cents
On replacement cost profit before
2.68 8.99 8.67 exceptional items 27.48 20.62
======================= =============
* Restated - for further information see Note 1.
Summarized Group Balance Sheet
31 December 31 December
1999 1998*
---------------------
$ million
Fixed assets
Intangible assets 3,344 3,037
Tangible assets 52,631 54,880
Investments 10,109 9,772
---------------------
66,084 67,689
---------------------
Current assets
Stocks 5,124 3,642
Debtors 16,802 12,709
Investments 220 470
Cash at bank and in hand 1,331 405
---------------------
23,477 17,226
Creditors - amounts falling due within one year
Finance debt 4,900 4,114
Other creditors 18,375 15,329
---------------------
Net current assets (liabilities) 202 (2,217)
---------------------
Total assets less current liabilities 66,286 65,472
Creditors - amounts falling due
after more than one year
Finance debt 9,644 9,641
Other creditors 2,245 2,047
Provisions for liabilities and charges 10,055 10,211
---------------------
Net assets 44,342 43,573
Minority shareholders' interest 1,061 1,072
---------------------
BP Amoco shareholders' interest 43,281 42,501
=====================
Movement in BP Amoco shareholders' interest: $ million
At 31 December 1998 41,786
Prior year adjustment - change in accounting policy (Note 1) 715
------
As restated 42,501
Profit for the period 5,008
Distribution to shareholders (3,884)
Currency translation differences (921)
Share dividend plan 311
Employee share schemes 266
------
At 31 December 1999 43,281
======
* Restated - for further information see Note 1.
Summarized Group Cash Flow Statement
Fourth Third Fourth
Quarter Quarter Quarter Year
1998 1999 1999 1999 1998
======================= ============
$ million $ million
Net cash inflow from
1,974 2,689 4,443 operating activities (a) 10,290 9,586
----------------------- --------------
47 371 136 Dividends from joint ventures 949 544
----------------------- -------------
135 25 51 Dividends from associated undertakings 219 422
----------------------- -------------
Servicing of finance and returns
on investments
52 33 64 Interest received 179 223
(203) (209) (259) Interest paid (1,065) (961)
17 8 6 Dividends received 34 43
Dividends paid to
(69) (49) (6) minority shareholders (151) (130)
----------------------- -------------
Net cash outflow from servicing of
(203) (217) (195) finance and returns on investments (1,003) (825)
----------------------- -------------
Taxation
(204) (48) (380) UK corporation tax (559) (391)
(301) (400) (239) Overseas tax (701) (1,314)
----------------------- -------------
(505) (448) (619) Tax paid (1,260) (1,705)
----------------------- -------------
Capital expenditure
(2,235) (1,473) (1,868) Payments for fixed assets (6,534) (8,685)
Proceeds from the sale
687 419 291 of fixed assets 1,149 1,387
----------------------- -------------
Net cash outflow for
capital expenditure and
(1,548) (1,054) (1,577) financial investment (5,385) (7,298)
----------------------- -------------
Summarized Group Cash Flow Statement (continued)
Fourth Third Fourth
Quarter Quarter Quarter Year
1998 1999 1999 1999 1998
======================= =============
$ million $ million
Acquisitions and disposals
Investments in associated
(13) (2) (56) undertakings (197) (396)
(81) (4) (53) Acquisitions (102) (314)
741 (226) (255) Net investment in joint ventures (750) 708
- 196 1,004 Proceeds from the sale of businesses 1,292 780
----------------------- -------------
Net cash (outflow) inflow for
647 (36) 640 acquisitions and disposals 243 778
----------------------- -------------
(642) (967) (971) Equity dividends paid (4,135) (2,408)
----------------------- -------------
(95) 363 1,908 Net cash inflow (outflow) (82) (906)
======================= =============
(1) 227 1,086 Financing (b) (954) (377)
(140) 55 13 Management of liquid resources (93) (596)
46 81 809 Increase in cash 965 67
----------------------- -------------
(95) 363 1,908 (82) (906)
======================= =============
Analysis of Cash Flow
Fourth Third Fourth
Quarter Quarter Quarter Year
1998 1999 1999 1999 1998
======================= =============
$ million $ million
(a) Reconciliation of historical
cost profit before interest
and tax to net cash inflow
from operating activities
Historical cost profit before
480 2,990 2,696 interest and tax 8,342 5,980
1,505 1,197 1,372 Depreciation and amounts provided 4,965 5,301
Exploration expenditure
96 135 34 written off 304 373
Share of (profits) losses of
joint ventures and
(188) (568) (397) associated undertakings+ (1,704) (1,102)
(65) (53) (51) Interest and other income (217) (272)
(Profit) loss on sale of fixed
(215) 308 277 assets and businesses 379 (963)
155 144 224 Charge for provisions 847 377
(280) (61) (326) Utilization of provisions (597) (460)
(75) (586) (372) Decrease (increase) in stocks (1,562) 584
338 (350) (1,875) Decrease (increase) in debtors (4,013) 1,768
223 (467) 2,861 Increase (decrease) in creditors 3,546 (2,000)
----------------------- --------------
Net cash inflow from
1,974 2,689 4,443 operating activities 10,290 9,586
======================= ==============
+Includes the following amounts
of depreciation for the BP/Mobil
84 77 81 European JV 308 308
----------------------- --------------
(b) Financing
(418) (285) (189) Long-term borrowing (2,140) (2,078)
93 603 314 Repayments of long-term borrowing 2,268 1,208
102 (182) (299) Short-term borrowing (3,136) (631)
Repayments of short-term
289 143 1,287 borrowing 2,299 701
------------------------ --------------
66 279 1,113 (709) (800)
(67) (52) (27) Issue of ordinary share capital (245) (161)
Repurchase of ordinary
- - - share capital - 584
------------------------ --------------
Net cash outflow (inflow)
(1) 227 1,086 from financing (954) (377)
======================== ==============
Capital Expenditure and Acquisitions
Fourth Third Fourth
Quarter Quarter Quarter Year
1998 1999 1999 1999 1998
======================= =============
$ million $ million
By business
Exploration and Production
340 135 187 UK 769 1,663
25 44 40 Rest of Europe 97 160
652 318 798 USA 1,881 2,274
533 278 376 Rest of World 1,465 2,221
----------------------- --------------
1,550 775 1,401 4,212 6,318
----------------------- --------------
Refining and Marketing
76 47 49 UK 171 160
184 134 177 Rest of Europe 487 517
192 151 211 USA 646 809
225 67 153 Rest of World 330 451
----------------------- --------------
677 399 590 1,634 1,937
----------------------- --------------
Chemicals
152 133 151 UK 447 342
149 51 55 Rest of Europe 238 527
158 65 82 USA 294 485
86 70 89 Rest of World 236 252
----------------------- --------------
545 319 377 1,215 1,606
----------------------- --------------
58 118 58 Other businesses and corporate 284 501
----------------------- --------------
2,830 1,611 2,426 7,345 10,362
======================= =============
By geographical area
594 355 443 UK 1,518 2,463
359 234 274 Rest of Europe 831 1,248
1,027 606 1,091 USA 2,963 3,720
850 416 618 Rest of World 2,033 2,931
----------------------- --------------
2,830 1,611 2,426 7,345 10,362
======================= =============
Includes the following
amounts for the BP/Mobil
221 175 219 European joint venture 624 620
----------------------- --------------
US dollar/Sterling exchange rates
1.68 1.60 1.63 Average rates for the period 1.62 1.66
1.67 1.65 1.62 Period-end rates 1.62 1.67
======================= =============
Analysis of Replacement Cost Operating Profit
Fourth Third Fourth
Quarter Quarter Quarter Year
1998 1999 1999 1999 1998
======================= =============
$ million $ million
By business
Exploration and Production
338 677 863 UK 2,324 1,666
69 207 221 Rest of Europe 658 372
171 600 920 USA 2,143 1,178
(136) 756 629 Rest of World 2,069 15
----------------------- -------------
442 2,240 2,633 7,194 3,231
----------------------- -------------
Refining and Marketing
51 102 51 UK 198 299
99 91 46 Rest of Europe 295 563
210 305 114 USA 864 1,168
146 143 82 Rest of World 483 534
----------------------- -------------
506 641 293 1,840 2,564
----------------------- -------------
Chemicals
10 (1) (76) UK (61) 157
50 8 76 Rest of Europe 166 310
21 124 127 USA 513 566
44 12 12 Rest of World 68 67
----------------------- -------------
125 143 139 686 1,100
----------------------- -------------
(74) (176) (340) Other businesses and corporate (826) (374)
----------------------- -------------
999 2,848 2,725 8,894 6,521
======================= =============
By geographical area
329 668 699 UK 2,111 1,931
218 350 344 Rest of Europe 1,167 1,249
374 930 960 USA 3,001 2,631
78 900 722 Rest of World 2,615 710
----------------------- -------------
999 2,848 2,725 8,894 6,521
======================= =============
Includes the following amounts
for joint ventures and
314 359 293 associated undertakings 1,158 1,347
----------------------- -------------
Notes
1. New accounting standard: provisions
The group has adopted Financial Reporting Standard No. 12 'Provisions,
Contingent Liabilities and Contingent Assets' (FRS12) with effect from
1 January 1999. This standard changes the criteria for recognizing
provisions for such costs as decommissioning, environmental liabilities
and restructuring charges. It also requires provisions for liabilities
which may not be settled for a number of years to be discounted to
their net present value. The adoption of this standard has been treated
as a change in accounting policy. Comparative figures have been
restated to reflect this change in accounting policy.
The principal effects of the adoption of FRS12 are as follows:
(a) Provisions for environmental liabilities are determined on a
discounted basis as the effect of the time value of money is
material. Previously these liabilities were on an undiscounted
basis.
(b) Provisions for decommissioning are recognized in full, on a
discounted basis, at the commencement of oil and natural gas
production. The group's prior practice was to accrue the expected
cost of decommissioning oil and natural gas production facilities
on a unit-of-production basis over the life of the field. FRS12
also requires the group to capitalize an amount equivalent to the
provision as a tangible fixed asset and to amortize this amount
over the life of the field on a unit-of-production basis.
(c) The unwinding of the discount, which represents a period-by-period
cost, is included within interest expense.
The adjustments to total replacement cost operating profit for
businesses and interest expense are as follows:
Fourth Third Fourth
Quarter Quarter Quarter Year
1998 1999 1999 1999 1998
======================= =============
$ million $ million
22 24 27 Exploration and Production 96 84
---------------------- -------------
Total replacement cost
22 24 27 operating profit 96 84
(31) (33) (14) Interest expense (110) (124)
---------------------- ------------
(9) (9) 13 Profit (loss) for the period (14) (40)
======================= ============
The adjustments to tangible assets and provisions for liabilities and
charges at 31 December 1998 are as follows:
$ million
Tangible assets 415
Other creditors 62
Other provisions 238
----
BP Amoco shareholders' interest 715
====
Notes
2. Turnover
Fourth Third Fourth
Quarter Quarter Quarter Year
1998 1999 1999 1999 1998
======================= ==============
$ million $ million
By business
4,113 6,301 6,472 Exploration and Production 21,649 17,276
11,083 16,697 22,041 Refining and Marketing 62,893 48,437
2,225 2,297 2,724 Chemicals 9,392 9,691
Other businesses
49 39 84 and corporate 198 199
------------------------ --------------
17,470 25,334 31,321 94,132 75,603
Less: Sales between
1,637 3,376 3,371 businesses 10,566 7,299
------------------------ --------------
15,833 21,958 27,950 Group excluding JVs 83,566 68,304
3,763 4,707 5,642 Sales of joint ventures 17,614 15,428
------------------------ ---------------
19,596 26,665 33,592 101,180 83,732
======================== ===============
By geographical area
Group excluding JVs
5,234 8,139 10,892 UK 30,223 22,510
1,307 1,561 1,754 Rest of Europe 5,973 5,823
7,669 10,255 12,858 USA 38,786 33,160
3,285 5,235 6,528 Rest of World 19,465 14,032
------------------------ --------------
17,495 25,190 32,032 94,447 75,525
Less: Sales between
1,662 3,232 4,082 areas 10,881 7,221
------------------------ --------------
15,833 21,958 27,950 83,566 68,304
------------------------ --------------
Sales of joint ventures
822 1,155 1,250 UK 3,988 3,467
3,464 4,428 5,169 Rest of Europe 16,114 14,186
10 36 68 USA 155 43
101 90 93 Rest of World 342 305
------------------------ --------------
4,397 5,709 6,580 20,599 18,001
Less: Sales between
634 1,002 938 areas 2,985 2,573
------------------------ --------------
3,763 4,707 5,642 17,614 15,428
======================== ==============
Notes
3. Operating profits are after charging:
Fourth Third Fourth
Quarter Quarter Quarter Year
1998 1999 1999 1999 1998
======================= =============
$ million $ million
Exploration expense
48 16 15 UK 51 134
14 - - Rest of Europe 35 89
75 65 57 USA 172 240
127 60 39 Rest of World 290 458
----------------------- -------------
264 141 111 548 921
======================= =============
Production taxes (i)
2 72 83 UK petroleum revenue tax 237 45
93 220 285 Overseas production taxes 780 559
----------------------- -------------
95 292 368 1,017 604
======================= =============
(i) Production taxes are charged against Exploration and Production's
operating profit and are not included in the charge for taxation in
Note 8.
4. Analysis of exceptional items
45 (419) (91) Exploration and Production (511) 396
(23) 12 (54) Refining and Marketing 61 394
(47) 89 (126) Chemicals 127 43
215 1 (8) Other businesses and corporate (14) 215
----------------------- -------------
Profit (loss) on sale of fixed
assets and businesses and
190 (317) (279) termination of operations (337) 1,048
- (184) (256) Restructuring costs (1,943) -
(198) - - Merger expenses - (198)
----------------------- -------------
Exceptional items
(8) (501) (535) before taxation+ (2,280) 850
16 (37) 46 Taxation credit (charge) 230 (198)
----------------------- -------------
Exceptional items
8 (538) (489) after taxation (2,050) 652
======================= =============
+Includes the following amounts
for joint ventures and
(25) (11) (37) associated undertakings (1) 85
----------------------- -------------
5. Replacement cost profit
Replacement cost profits reflect the current cost of supplies. The
replacement cost profit for the period is arrived at by excluding from
the historical cost profit stock holding gains and losses.
Notes
6. Stock holding gains (losses)
Fourth Third Fourth
Quarter Quarter Quarter Year
1998 1999 1999 1999 1998
======================= =============
$ million $ million
(63) (3) 12 Exploration and Production (1) (73)
(409) 582 455 Refining and Marketing 1,613 (1,172)
(39) 64 39 Chemicals 116 (146)
---------------------- --------------
(511) 643 506 1,728 (1,391)
====================== ==============
Includes the following amounts
for joint ventures and
(101) 220 141 associated undertakings 547 (330)
----------------------- --------------
7. Interest expense
247 285 264 Group interest payable 1,048 1,010
(15) (7) (10) Capitalized (43) (119)
----------------------- --------------
232 278 254 1,005 891
14 13 26 Joint ventures 70 54
31 31 35 Associated undertakings 131 108
Unwinding of discount on
31 33 34 provisions (Note 1) 130 124
Change in discount rate
- - (20) for provisions (Note 1) (20) -
----------------------- --------------
308 355 329 1,316 1,177
======================= ==============
8. Charge for taxation
78 165 250 UK 603 495
65 573 363 Overseas 1,277 1,025
----------------------- -------------
143 738 613 1,880 1,520
======================= =============
Includes the following amounts
for joint ventures and
3 25 29 associated undertakings 104 132
----------------------- -------------
Notes
9. Analysis of changes in net debt
Fourth Third Fourth
Quarter Quarter Quarter Year
1998 1999 1999 1999 1998
======================= ==============
$ million $ million
Opening balance
13,759 15,850 15,671 Finance debt 13,755 12,877
375 467 536 Less: Cash 405 355
612 304 347 Current asset investments 470 1,067
----------------------- --------------
12,772 15,079 14,788 Opening net debt 12,880 11,455
----------------------- --------------
Closing balance
13,755 15,671 14,544 Finance debt 14,544 13,755
405 536 1,331 Less: Cash 1,331 405
470 347 220 Current asset investments 220 470
----------------------- --------------
12,880 14,788 12,993 Closing net debt 12,993 12,880
----------------------- --------------
(Increase) decrease
(108) 291 1,795 in net debt (113) (1,425)
======================= ==============
Movement in cash/
46 81 809 bank overdrafts 965 67
Increase(decrease) in
(140) 55 (60) current asset investments (166) (596)
Net cash (inflow) outflow
from financing(excluding
66 279 1,113 share capital) (709) (800)
(36) (108) (29) Other movements (144) (53)
----------------------- --------------
Movement in net debt before
(64) 307 1,833 exchange effects (54) (1,382)
(44) (16) (38) Exchange adjustments (59) (43)
----------------------- --------------
(Increase) decrease
(108) 291 1,795 in net debt (113) (1,425)
======================= ==============
Notes
10. Consolidated statement of cash flows presented on a US GAAP format
Fourth Third Fourth
Quarter Quarter Quarter Year
1998 1999 1999 1999 1998
======================= =============
$ million $ million
Operating activities
29 1,897 1,754 Profit after taxation 5,146 3,284
Adjustments to reconcile
profits after tax to net
cash provided by
operating activities
Depreciation and
1,505 1,197 1,372 amounts provided 4,965 5,301
Exploration expenditure
96 135 34 written off 304 373
Share of (profit) loss of
joint ventures and associates
(6) (172) (210) less dividends received (536) (136)
(Profit) loss on sale of
(215) 308 277 businesses and fixed assets 379 (963)
Working capital movement
741 (1,261) 1,007 (see analysis below) (1,676) 380
(163) 464 (623) Other 318 254
----------------------- -------------
Net cash provided by
1,987 2,568 3,611 operating activities 8,900 8,493
----------------------- -------------
Investing activities
(2,710) (1,566) (1,882) Capital expenditures (6,314) (9,026)
Acquisitions, net of
(81) (4) (53) cash acquired (102) (314)
Investment in
(13) (2) (56) associated undertakings (197) (396)
Net investment in
741 (226) (255) joint ventures (750) 708
Proceeds from
687 615 1,295 disposal of assets 2,441 2,167
----------------------- --------------
Net cash used
(1,376) (1,183) (951) in investing activities (4,922) (6,861)
----------------------- --------------
Notes
10. Consolidated statement of cash flows presented on a US GAAP format
(continued)
Fourth Third Fourth
Quarter Quarter Quarter Year
1998 1999 1999 1999 1998
======================= =============
$ million $ million
Financing activities
Proceeds from shares
67 52 27 issued (repurchased) 245 (423)
Proceeds from
418 285 189 long-term financing 2,140 2,078
Repayments of
(93) (603) (314) long-term financing (2,268) (1,208)
Net increase (decrease)
(391) 39 (988) in short-term debt 837 (70)
Dividends paid
(642) (967) (971) - BP Amoco shareholders (4,135) (2,408)
(69) (49) (6) - Minority shareholders (151) (130)
----------------------- --------------
Net cash used in
(710) (1,243) (2,063) financing activities (3,332) (2,161)
----------------------- --------------
Currency translation
differences relating to
(17) (27) 57 cash and cash equivalents 15 (15)
----------------------- --------------
Increase(decrease) in cash
(116) 115 654 and cash equivalents 661 (544)
----------------------- --------------
Cash and cash equivalents
910 686 801 at beginning of period 794 1,338
----------------------- --------------
Cash and cash equivalents
794 801 1,455 at end of period 1,455 794
----------------------- --------------
Analysis of working
capital movement
(75) (586) (372) Decrease (increase)in stocks (1,562) 584
Decrease (increase)
216 (549) (1,785) in debtors (3,854) 1,777
Increase (decrease)
600 (126) 3,164 in creditors 3,740 (1,981)
----------------------- --------------
Total working
741 (1,261) 1,007 capital movement (1,676) 380
======================= ==============
Notes
11. Ordinary shares
Shares in issue at 31 December 1999 = 19,484.0 million.
Average number of shares in issue during January-December 1999 =
19,386.4 million (after share split on 4 October and excluding shares
held by the Employee Share Ownership Plans). Each BP Amoco ADS
represents six BP Amoco Ordinary Shares.
12. Statutory accounts
The above financial information for the year 1999 does not constitute
statutory accounts. It is an extract from the 1999 group accounts,
approved by a duly appointed and authorized committee of the Board of
Directors at today's Results Committee, but not yet delivered to the UK
Registrar of Companies; the report of the auditors on those accounts
was unqualified. Quarterly results are unaudited.
Contacts
London New York
Press Office Roddy Kennedy Ian Fowler
(+44) 0171 496 4624 (+1) 212 451 8008
Investor Relations David Peattie Terry LaMore
(+44) 0171 496 4717 (+1) 212 451 8034
http://www.bpamoco.com/investors
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