Final Results - Part 1 of 3

BP Amoco PLC
13 February 2001



Part 1 of 3

BP Amoco p.l.c.
Group Results
4th Quarter and Full Year 2000
 
                                                    London 13 February 2001
 
                           FOR IMMEDIATE RELEASE
 
                       BP REPORTS RECORD PERFORMANCE
---------------------------------------------------------------------------
 
    Fourth Quarter                                               Year
   1999    2000    %  $ million                          2000    1999     %
====================                                   ====================
                      Replacement cost 
  1,684   2,799       profit before exceptional items  11,214   5,330
    439     693       Special items(a)                  1,454     876
      -     598       Acquisition amortization(b)       1,535       -
--------------------                                   --------------------
                      Pro forma result adjusted
  2,123   4,090       for special items                14,203   6,206
====================                                   ====================
   6.71  12.59       -   per ordinary share (pence)    43.46   19.75
  10.94  18.25  67%  -   per ordinary share (cents)    65.63   32.00  105%
   0.66   1.10       -   per ADS (dollars)              3.94    1.92
====================                                  =====================
 
o    BP's pro forma result, adjusted for special items, for the fourth 
     quarter was $4,090 million compared to $2,123 million a year ago. The 
     result per share was 18.25 cents compared to 10.94 cents a year ago, an 
     increase of 67%. For the year, the result was $14,203 million, compared 
     to $6,206 million in 1999. The result per share was 65.63 cents, up 
     from 32.00 cents, an increase of 105%. Replacement cost profit, before 
     exceptional items, for the fourth quarter and year was $2,799 million 
     and $11,214 million respectively, compared to $1,684 million and 
     $5,330 million a year ago.
 
o    $2 billion year on year reductions in the combined cost structure of BP 
     and ARCO have been achieved. Return on average capital employed, on a 
     pro forma basis and adjusted for special items, is 25% for the fourth 
     quarter compared to 17% a year ago. The annual return is 23% compared 
     to 13% in 1999.
 
o    The company purchased for cancellation 71.5 million of its own shares 
     during the quarter. Total purchases in 2000 amounted to 221.7 million 
     shares at a cost of $2 billion.
 
o    Fourth quarter upstream volumes increased 9% on a year ago. Excluding 
     the effect of acquisitions and divestments, volumes declined by 4%. For 
     the year, the comparable numbers are an increase of 4% and a decrease 
     of 2% respectively. 1.8 billion barrels of oil equivalent were added 
     during the year to reserves through revisions, extensions, discoveries  
     and improved recovery; this represents a reserve replacement ratio of 
     160%.
 
o    Quarterly dividend 5.25 cents per share ($0.315 per ADS). Total 
     dividends for the year amount to 20.5 cents per share ($1.23 per ADS) 
     compared to 20.0 cents per share ($1.20 per ADS) in 1999.
 
 
BP Group Chief Executive, Sir John Browne, commented:
     'The strong trading environment, together with the benefits of recent
integration and restructuring, and productivity improvements, has produced an
outstanding worldwide result for BP.  We have delivered on our 2000 cost saving
target and are on track for the cost saving and improvement in return on capital
targets by the end of 2001. Hydrocarbon production is set to grow after the
plateau seen in 2000 resulting from curtailed investment at the time of the BP
Amoco merger.'
 
The financial performance information above and elsewhere in the document is
provided in order to enable investors to evaluate better both the company's
current performance, in the context of past performance, and its performance
against that of its competitors. The pro forma result, adjusted for special
items, has been derived from the company's reported UK GAAP accounting
information but is not in itself a recognized UK or US GAAP measure.
 
(a)  The special items refer to non-recurring charges and credits. The 
     special items for the quarter and year comprise principally ARCO, 
     Vastar and Burmah Castrol integration costs, rationalization costs post 
     the BP Amoco merger, environmental charges and asset writedowns.
 
(b)  Depreciation and amortization in 2000 relating to the fixed asset 
     revaluation adjustment and goodwill consequent upon the ARCO and Burmah 
     Castrol acquisitions.
 
                                Summary Results
 
Exploration and Production's pro forma results, adjusted for special items, for
the quarter and the year, were again at record levels and reflected
significantly higher oil and gas prices, the contribution from ARCO and lower
costs. Production was at record levels; the year was up 4% on 1999. When
acquisitions and disposals are excluded there was a decline of 2%, reflecting
the reduced 1999 capital expenditure programme. Capital expenditure has
increased during 2000 and totalled $6.4 billion for the year. The reserve
replacement ratio was 160% with 1.8 billion barrels of oil equivalent booked
through revisions, extensions, discoveries and improved recovery. Recently, for
the Gulf of Mexico projects, industrial capacity of around $3 billion was
secured for fabrication and installation, in Vietnam, key elements of the $1.5
billion gas project were signed and, in Alaska, it was agreed to carry out a
joint feasibility study for the gas pipeline. There have been discoveries
offshore Angola and in the Gulf of Mexico.
 
In Gas and Power, gas sales volumes increased significantly for both the quarter
and the year, both on a reported basis and also excluding acquisitions and
divestments. For the year, the improved contribution from operations partly
offset increased business development costs.
 
The strong Refining and Marketing results for the quarter and year reflected
significantly higher refining margins, though marketing margins came under
pressure from higher product prices, and contributions from ARCO and Burmah
Castrol. The year's result also benefited from cost reductions and a strong oil
trading performance.
 
The Chemicals' result for the quarter was down from the third quarter as higher
oil and natural gas prices and a weak euro eroded margins and slowed demand
growth. The result for the year was an improvement on 1999. The year's result
benefited from productivity improvements which more than offset the effect of
the weaker environment.
 
Interest expense for the quarter and year reflected higher debt and interest
rates.
 
The pro forma effective tax rate on replacement cost profit, before exceptional
items, was 28% in the quarter and 27% for the year.
 
Excluding the cost of acquisitions and spending by the acquisitions, capital
expenditure for the year was $9.0 billion, compared to $6.9 billion in 1999, an
increase of 29%. Disposal proceeds amounted to $11.4 billion compared to $2.4
billion a year ago. Cash acquisitions in 2000 amounted to $8.9 billion compared
to $0.4 billion in 1999. Net cash outflow for capital expenditure and
acquisitions, net of disposals, was $6.2 billion compared with $5.1 billion for
1999.
 
Net debt at the end of the year was $19.4 billion. The pro forma ratio of net
debt to net debt plus equity was 27%.
 
Net cash outflow for the quarter was $1,647 million, compared with an inflow of
$1,908 million a year ago. This reflects higher operating cash flow more than
offset by increased tax payments and net cash outflows in respect of capital
expenditure, acquisitions and disposals. The year's cash inflow was $3,743
million, compared to an outflow of $82 million in 1999. This results from an
almost doubling of operating cash flow at $20.4 billion, partially offset by
higher tax payments and net cash outflows from capital expenditure, acquisitions
and disposals.
 
 
                        Summary Results (continued)
 
------
The commentaries above and following are based on the pro forma replacement cost
operating results for the quarter, before exceptional items, adjusted for
special items. The results of ARCO and Burmah Castrol have been included with
effect from 14 April and 7 July 2000 respectively. The European fuels joint
venture has been consolidated with effect from 1 August 2000. Included in the
group's pro forma operating result for the year, adjusted for special items, are
estimated amounts of $2,600 million in respect of ARCO, $200 million in respect
of Burmah Castrol and $180 million in respect of the purchased interest in the
European fuels joint venture, representing their respective results since their
dates of acquisition.
 
Following the recent completion of the fair value exercises for the ARCO and
Burmah Castrol acquisitions, the charges for depreciation and goodwill
amortization for the second and third quarters have been increased. The results
for those two periods have been restated to reflect these higher charges. The
pro forma results, adjusted for special items, are unaffected
 
 
                  Reconciliation of Reported Results to
              Pro Forma Results Adjusted for Special Items
 
Pro Forma Result                                           Pro Forma Result
adjusted for  ----- 4Q 2000 ---------------                  adjusted for
special items                                                special items
-------------------
   4Q     3Q     4Q Special   Acq. Reported                        Year   
 1999   2000   2000  Items* Amort+ Earnings $ million          2000    1999
===========================================                  ==============
                                            Exploration and
2,628  4,156  4,700      49   413     4,238 Production       15,710   7,282
   48     48     60       -     -        60 Gas and Power       186     211
                                            Refining and
  464  1,343  1,444     344   185       915 Marketing         4,943   2,082
  266    267    140     222     -       (82)Chemicals         1,036     933
                                            Other businesses 
 (100)  (130)  (132)    236     -      (368)and corporate      (622)   (428)
-------------------------------------------                  --------------
                                            RC operating
3,306  5,684  6,212     851   598     4,763 profit           21,253  10,080
-------------------------------------------                  --------------
 (305)  (460)  (500)    111     -      (611)Interest expense (1,659) (1,292)
 (825)(1,379)(1,605)   (269)    -    (1,336)Taxation         (5,220) (2,444)
  (53)   (49)   (17)      -     -       (17)MSI                (171)   (138)
-------------------------------------------                  --------------
                                            RC profit before
2,123  3,796  4,090     693   598     2,799 exceptional items14,203   6,206
-------------------------------------------                  --------------
                                            Exceptional items 
                                         78 before tax
                                            Taxation on 
                                         94 exceptional items
                                      -----
                                            RC profit after
                                      2,971 exceptional items
                                       (561)Stock holding gains (losses)
                                      -----
                                      2,410  HC profit
                                      =====
* The special items refer to non-recurring charges and credits. The special 
  items in the quarter and year comprise principally ARCO, Vastar and Burmah 
  Castrol integration costs, rationalization costs post the BP Amoco 
  Merger, environmental charges and asset writedowns.
 
+ Depreciation and amortization in 2000 relating to the fixed asset 
  revaluation adjustment and goodwill consequent upon the ARCO and Burmah
  Castrol acquisitions.
 
 
                            Operating Results
 
 Fourth   Third  Fourth
Quarter Quarter Quarter                                            Year
   1999    2000    2000                                        2000    1999
=======================                                      ==============
                         Replacement cost
  2,725   4,695   4,763  operating profit ($m)               17,756   8,894
-----------------------                                      --------------
                         Replacement cost profit
  1,684   2,947   2,799  before exceptional items ($m)       11,214   5,330
-----------------------                                      --------------
                         Profit after exceptional items ($m)
  1,195   2,807   2,971  Replacement cost                    11,142   3,280
  1,701   3,351   2,410  Historical cost                     11,870   5,008
-----------------------                                      --------------
                         Per ordinary share (cents)
                         Pro forma result
  10.94   16.91   18.25  adjusted for special items           65.63   32.00
                         RC profit before
   8.67   13.04   12.40  exceptional items                    54.85   27.48
                         HC profit after
   8.76   14.85   10.53  exceptional items                    51.82   25.82
                         Per ADS (cents)
                         Pro forma result
  65.64  101.46  109.50  adjusted for special items          393.78  192.00
                         RC profit before
  52.02   78.24   74.40  exceptional items                   310.92  164.88
                         HC profit after
  52.56   89.10   63.18  exceptional items                   329.10  154.92
-----------------------                                      --------------
                         Dividends per ordinary share
    5.0    5.25    5.25  cents                                 20.5    20.0
  3.125   3.602   3.617  pence                               13.791  12.339
 
   30.0    31.5    31.5  Dividends per ADS (cents)            123.0   120.0
-----------------------                                      --------------
                         EBITDA(a) (cents)
  20.95   33.31   28.82  per ordinary share                  120.86   68.63
 125.70  199.86  172.92  per ADS                             725.16  411.78
-----------------------                                      --------------
                         Adjusted EBITDA(b) (cents)
  24.10   31.96   35.01  per ordinary share                  125.18   77.60
 144.60  191.76  210.06  per ADS                             751.08  465.60
=======================                                      ==============
(a) Profit for the period before interest, tax, depreciation and 
    amortization. 
(b) Replacement cost profit before exceptional items, adjusted for special 
    items, and before interest, tax, depreciation and amortization.
 
 
                           Operating Statistics
 Fourth   Third  Fourth
Quarter Quarter Quarter                                            Year    
   1999    2000    2000                                        2000    1999
=======================                                       =============
                         Crude oil and natural gas 
                         liquids production(a)(mb/d)
                         (Net of Royalties)
    605     521     514  UK                                     534     580
     96      86      92  Rest of Europe                          90     100
    818     691     725  USA                                    729     804
    531     604     600  Rest of World                          575     577
-----------------------                                       -------------
                         Total crude oil and
  2,050   1,902   1,931  liquids production                   1,928   2,061
=======================                                       =============
                         Natural gas production (mmcf/d)(a)
  1,546   1,340   1,893  UK                                   1,652   1,301
    157     104     156  Rest of Europe                         136     164
  2,303   3,362   3,403  USA                                  3,054   2,369
  2,333   2,991   3,169  Rest of World                        2,767   2,233
-----------------------                                       -------------
  6,339   7,797   8,621  Total natural gas production         7,609   6,067
=======================                                       =============
                         Gas sales volumes (mmcf/d)(a)(b)
  1,891   2,289   3,019  UK                                   2,526   1,693
    162     151     224  Rest of Europe                         178     167
  4,638   6,845   8,206  USA                                  6,524   4,047
  3,060   5,535   6,007  Rest of World                        5,243   3,023
-----------------------                                      --------------
  9,751  14,820  17,456  Total gas sales volumes             14,471   8,930
=======================                                      ==============
                         Oil sales volumes (mb/d)
                         Refined products
    233     276     295  UK(c)                                  256     235
    820     981   1,077  Rest of Europe(c)                      901     794
  1,562   2,106   2,143  USA(a)                               1,937   1,542
    656     647     765  Rest of World                          662     615
-----------------------                                      --------------
  3,271   4,010   4,280  Total marketing sales                3,756   3,186
  2,010   1,843   2,878  Trading/supply sales                 2,103   1,816
-----------------------                                      --------------
  5,281   5,853   7,158  Total refined product sales          5,859   5,002
  5,933   5,725   5,442  Crude oil                            5,984   4,984
-----------------------                                      --------------
 11,214  11,578  12,600  Total oil sales                     11,843   9,986
=======================                                      ==============
                         Chemicals production(d)(kte)
    907     779     833  UK                                   3,137   3,737
  1,602   1,680   1,701  Rest of Europe                       6,713   5,993
  2,643   2,438   2,255  USA                                  9,874   9,917
    564     591     596  Rest of World                        2,341   2,206
-----------------------                                      --------------
  5,716   5,488   5,385  Total production                    22,065  21,853
=======================                                      ==============
(a) Includes ARCO from 14 April 2000.
(b) Includes marketing, trading & supply sales.
(c) Includes the total European fuels business with effect from 
    1 August 2000.
(d) Includes BP share of associated undertakings and other interests in 
    production.
 
 
                        Exploration and Production
 
The pro forma results, adjusted for special items primarily comprising ARCO
integration costs, were a record $4,700 million for the quarter and $15,710
million for the year. The improved results compared with a year ago reflected
significantly higher oil and gas prices, the ARCO acquisition and operational
improvements.
 
Reported volumes reached a record level and the quarter's production increased
by 9% over the fourth quarter of 1999 and by 5% over the prior quarter. The
year's production increased by 4%. Reserve replacement exceeded production for
the seventh consecutive year with a ratio of 160%.
 
Changes in production are shown in the table below for reported volumes and also
underlying volumes, excluding acquisitions and divestments. The decline in
underlying production levels reflected the lag effect of the reduced 1999
capital programme. During 2000, capital expenditures have continued to increase
with the fourth quarter up 15% on the third quarter.
 
                               2000 v 4Q 1999           2000 v 1999
   % change in production   Reported   Underlying   Reported   Underlying
       Oil                     (6)         (7)         (6)         (4)
       Gas                     36           -          25           1
       Total                    9          (4)          4          (2)
 
As part of the plans to increase production levels in the Gulf of Mexico
deepwater, BP has recently secured industrial capacity to provide approximately
$3 billion in fabrication and installation services. In addition, BP (26.7% and
consortium leader) and partners signed key elements of a $1.5-billion integrated
gas project in Vietnam. Also, subsequent to the alignment of its oil and gas
interests in Prudhoe Bay, BP is participating in a joint feasibility study for a
pipeline to transport Alaskan gas to the rest of the US and Canada.
 
In November, BP (50% and operator) announced the Paladio oil discovery offshore
Angola. This was the fourth exploration well drilled in Block 18 and the fourth
successful discovery. The preliminary results indicated the possibility of a
significant oil accumulation. In the Gulf of Mexico deepwater, BP announced the
discovery of Crazy Horse North, which in combination with the adjacent Crazy
Horse, discovered in 1999, increases estimated recoverable resources in this
complex to in excess of 1.5 billion boe gross (BP 75% and operator).
 
   4Q    3Q    4Q                                                  Year
 1999  2000  2000   $ million                                  2000    1999
=================                                            ==============
2,585 3,552 4,238   Replacement cost operating profit        14,012   6,983
   43   192    49   Special items                               524     299
    -   412   413   Acquisition amortization                  1,174       -
-----------------                                            --------------
                    Pro forma operating result
2,628 4,156 4,700   adjusted for special items               15,710   7,282
=================                                            ==============
                    Results include:
  111   143   157   Exploration expense                         599     548
-----------------                                            --------------
22.70 27.84 28.08   BP Average oil realizations(a) ($/bbl)    26.63   16.74
24.13 30.42 29.56   Brent Oil Price ($/bbl)                   28.44   17.92
=================                                            ==============
                    BP Average
 2.08  3.01  3.76   natural gas realizations ($/mcf)           2.91    1.92
=================                                            ==============
(a) Crude oil and natural gas liquids.
 
 
                               Gas and Power
 
The pro forma result for the fourth quarter was $60 million compared with $48
million a year ago and $48 million during the third quarter. The year's result
was $186 million compared to $211 million for 1999.
 
Strong gas sales volumes during the quarter, including trading, particularly in
North America, together with an increased contribution from Ruhrgas, more than
offset increased business development costs compared with the fourth quarter of
1999. In the USA, total volumes increased 77% compared to the fourth quarter of
1999 and 20% against the third quarter of 2000 in volatile market conditions. In
the UK, volumes increased 60% and 32% over the same periods.
 
In Spain, BP was granted a power marketing licence. This complements its
successful entry into the domestic gas market at the beginning of 2000.
 
The Great Yarmouth power station project in the UK moved into its commissioning
phase and contractors were mobilized on the Bahia de Bizkaia liquefied natural
gas and power project in Bilbao, Spain. In conjunction with the plans already
announced to construct a major gas-fired co-generation plant at Texas City in
the USA and the power plant under construction at Baglan Bay in Wales, this
represents a total of over 1,900 MW of net capacity.
 
   4Q     3Q     4Q                                                Year
 1999   2000   2000   $ million                                2000    1999
===================                                          ==============
   48     48     60   Replacement cost operating profit         186     211
    -      -      -   Special items                               -       -
    -      -      -   Acquisition amortization                    -       -
-------------------                                          --------------
                      Pro forma operating result
   48     48     60   adjusted for special items                186     211
===================                                          ==============
9,751 14,820 17,456   Total gas sales volumes (mmcf/d)       14,471   8,930
===================                                          ==============
 
 
                         Refining and Marketing
 
The pro forma result, after adjusting for special items, for the fourth quarter
was $1,444 million, significantly up on the same period last year. The special
items principally comprised a charge in respect of environmental liabilities at
certain US sites, Burmah Castrol and ARCO integration costs and rationalization
costs post the BP Amoco merger. The main drivers of the improvement were higher
refining margins and contributions from ARCO, Burmah Castrol and the full
consolidation of the fuels joint venture in Europe. Excluding ARCO and the
European fuels joint venture acquisition effects, shop sales in the quarter were
15% higher than a year ago. Refining margins were stronger in all regions, and
NGL margins were generally strong. Marketing margins came under pressure due to
the inability to pass through high product prices in competitive markets.
 
The result for the year was $4,943 million, significantly higher than a year
ago, reflecting similar factors, with shop sales growth of 12% excluding
acquisition effects, and significant cost reductions and a strong oil trading
performance. The special items for 2000 comprised rationalization costs post the
BP Amoco merger, ARCO and Burmah Castrol integration costs, a charge in respect
of environment liabilities at certain USA sites and litigation costs.
 
The clean fuels programme was rolled out to the 56th city by the end of the
year.
 
BP opened three new BP Connect retail sites in December in London, UK. Further
market launches took place in Indianapolis and Cleveland, in the USA, in January
2001.
 
The intended disposal of three US refineries and their associated facilities as
part of the company's global refining strategy was announced in November. The
three refineries - Salt Lake City in Utah, Mandan in North Dakota and Yorktown
in Virginia - have a combined capacity of 177,000 barrels a day.
 
   4Q    3Q    4Q                                                  Year
 1999  2000  2000   $ million                                  2000    1999
=================                                             =============
  293 1,048   915   Replacement cost operating profit         3,908   1,840
  171   110   344   Special items                               595     242
    -   185   185   Acquisition amortization                    440       -
-----------------                                             -------------
                    Pro forma operating result
  464 1,343 1,444   adjusted for special items                4,943   2,082
=================                                             =============
 0.99  4.83  4.46   Global Indicator Refining Margin(a)($/bbl) 4.22    1.31
-----------------                                             -------------
                    Refinery throughputs (mb/d)
  279   359   391     UK(b)                                     324     271
  542   627   727     Rest of Europe(b)                         602     540
1,322 1,765 1,584     USA(c)                                  1,625   1,340
  365   362   383     Rest of World                             365     371
-----------------                                             -------------
2,508 3,113 3,085   Total throughput                          2,916   2,522
=================                                             =============
 
(a) 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.
 
(b) Includes the total European fuels business with effect from 
    1 August 2000.
 
(c) Includes ARCO from 14 April 2000.
 
                                Chemicals
 
Chemicals' pro forma result, after adjusting for special items, for the fourth
quarter was $140 million, down from $267 million in the third quarter. Margins
remained under pressure from high oil prices, a spike in natural gas prices and
a weak euro. The fourth quarter result was a decrease of $126 million over the
equivalent quarter in 1999, as productivity gains were outweighed by the weaker
environment.
 
Chemicals' special items of $222 million in the fourth quarter include $185
million for the writedown of its Indonesian polyethylene assets, due to a
continuing weak business environment, and $37 million for other restructuring.
 
Some improvement in the trading environment was seen at the end of the quarter
as oil prices fell and the euro recovered some ground. Chemicals production of
5,385k tonnes in the fourth quarter was slightly below the previous quarter.
Lower production as a result of planned turnarounds was partly offset by
production from new acetic acid capacity in Malaysia and new polyethylene
capacity in the UK.
 
The year's result of $1,036 million was an improvement of $103 million on the
$933 million reported in 1999. The stronger margins in the middle of 2000
temporarily improved the trading environment and, in addition, cost control
benefits and increased production volumes were delivered. The special items in
2000 comprise asset writedowns and restructuring charges.
 
In December, BP and Solvay announced their intention to combine their high
density polyethylene businesses into joint ventures in the USA and Europe. In
addition, Solvay will transfer its polypropylene business to BP, and BP will
transfer its engineering polymers business to Solvay.
 
Dissolution of the Appryl polypropylene joint venture with ATOFINA was completed
in December. At completion, BP took over assets and activities in Grangemouth,
UK and BP and ATOFINA have set up a manufacturing joint venture at Lavera,
France.
 
   4Q    3Q    4Q                                                  Year
 1999  2000  2000   $ million                                  2000    1999
=================                                             =============
  139   263   (82)  Replacement cost operating profit (loss)    760     686
  127     4   222   Special items                               276     247
    -     -     -   Acquisition amortization                      -       -
-----------------                                             -------------
                    Pro forma operating result
  266   267   140   adjusted for special items                1,036     933
=================                                             =============
  128   128   110(b)Chemicals Indicator Margin(a) ($/te)        121(b)  114
=================                                             =============
 
(a) The Chemicals Indicator Margin (CIM) is a weighted average of 
    externally-based product margins. It is based on market data collected 
    by Chem Systems in their quarterly market analyses, then weighted based 
    on BP's product portfolio. While it does not cover our entire portfolio, 
    it includes a broader range of products than our previous indicator. 
    Among the products and businesses covered in the CIM are the olefins and 
    derivatives, the 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, 
    engineering polymers and carbon fibres, speciality intermediates, and 
    the remaining parts of the solvents and acetyls businesses.
 
(b) Provisional. The data for the current quarter and year is based on two 
    months' and eleven months' actuals respectively.
 
 
                        Other Businesses and Corporate
 
Other Businesses and Corporate comprises Finance, BP Solar, the group's coal
asset and aluminium asset, its investments in PetroChina and Sinopec, interest
income and costs relating to corporate activities worldwide. BP Solar production
and shipments for the year were 31% higher than in 1999. The special items for
the quarter and year comprised rationalization costs post the BP Amoco merger,
ARCO integration costs and an environmental charge.
 
   4Q    3Q    4Q                                                  Year
 1999  2000  2000   $ million                                  2000    1999
=================                                             =============
 (340) (216) (368)  Replacement cost operating loss          (1,110)   (826)
  240    86   236   Special items                               488     398
    -     -     -   Acquisition amortization                      -       -
-----------------                                             -------------
                    Pro forma operating result
 (100) (130) (132)  adjusted for special items                 (622)   (428)
=================                                             =============
 
                              Exceptional Items
 
Exceptional items for the fourth quarter include the profit arising on the sale
of a 10% minority interest in BP's operations in Trinidad, partly offset by
losses on a number of minor disposals.
 
   4Q    3Q    4Q                                                  Year
 1999  2000  2000   $ million                                  2000    1999
=================                                             =============
                    Profit (loss) on sale of fixed assets and
 (279)  138    78   businesses and termination of operations    220    (337)
 (256)    -     -   Restructuring costs                           -  (1,943)
   46  (278)   94   Taxation credit (charge)                   (292)    230
-----------------                                             -------------
 (489) (140)  172   Exceptional items after taxation            (72) (2,050)
=================                                             =============
                    Includes amounts for joint ventures and
  (37)    2     -   associated undertakings                      24      (1)
-----------------                                             -------------
 
                              2000 Dividends
 
BP today announced a fourth quarterly dividend for 2000 of 5.25 cents per
ordinary share. Holders of ordinary shares will receive 3.617 pence per share
and holders of American Depository Receipts (ADRs) $0.315 per ADS share. The
dividend is payable on 19 March 2001 to shareholders on the register on 23
February 2001. 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 19 March 2001. The first quarter 2001 results and dividend will
be announced on 8 May 2001.
 
                                Outlook
 
 
BP Group Chief Executive, Sir John Browne, concluded:
   'The overall trading environment is expected to remain generally 
    positive, notwithstanding less favourable economic conditions than those 
    experienced in 2000. Oil and gas prices are likely to remain volatile, 
    in a trading range below the peaks seen in 2000. Refining margins should 
    continue to be supported by tightness in product stocks in the near term 
    while marketing margins are likely to reflect competitive pressures 
    after recent falls in the oil price. The chemicals trading environment 
    will come under further pressure from a moderation in economic growth 
    and increasing supply capacity.
 
   'BP's strategy is adaptable to changing circumstances. By focusing on 
    world class investment opportunities and capital productivity, together 
    with further cost efficiencies, we believe we can grow profitably.'
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     The foregoing discussion, in particular the statements under 'Outlook', 
     focuses on certain trends and general market and economic conditions 
     and outlook on production levels or rates, prices, margins and currency 
     exchange rates and, as such, are forward-looking statements that 
     involve risk and uncertainty that could cause actual results and 
     developments to differ materially from those expressed or implied by 
     this discussion. By their nature, trends and outlook on production, 
     price, margin and currency exchange rates are difficult to forecast 
     with any precision, and there are a number of factors that could cause 
     actual results and developments to differ materially from those 
     expressed or implied by these forward-looking statements, including 
     future levels of industry product supply, demand and pricing; currency 
     exchange rates; political stability and economic growth in relevant 
     areas of the world; development and use of new technology and 
     successful partnering; the actions of competitors, natural disasters 
     and other changes to business conditions. Additional information, 
     including information on factors which may affect BP's business, is 
     contained in BP's Annual Report and Accounts for 1999 and in the Annual 
     Report on Form 20-F filed with the US Securities and Exchange 
     Commission.
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