Final Results Part 1 of 3

BP PLC
10 February 2004


Part 1 of 3

BP p.l.c.
Group Results
Fourth Quarter and Full Year 2003


                                                     London 10 February 2004


                         FOR IMMEDIATE RELEASE

      RECORD ANNUAL RESULT, UP 42%; CONTINUING STRONG CASH GENERATION

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

 Fourth   Third  Fourth
Quarter Quarter Quarter                                          Year
   2002    2003    2003   $ million                      2003    2002     %
=======================                                ====================

                          Replacement cost profit
  1,697   2,142   1,819     before exceptional items    9,543   4,698
    416     228     211   Special items(a)                444   1,443
    522     498     637   Acquisition amortization(b)   2,392   2,574

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

                          Pro forma result adjusted
  2,635   2,868   2,667     for special items          12,379   8,715    42

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

   7.61    8.07    7.07   - per ordinary share (pence)  34.25   25.93    32
  11.78   13.00   12.07   - per ordinary share (cents)  55.83   38.90    44
   0.71    0.78    0.72   - per ADS (dollars)            3.35    2.33

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

•    BP's fourth quarter pro forma result, adjusted for special items, was
     $2,667 million, compared with $2,635 million a year ago, an increase of
     1%. For the year, the result was a record $12,379 million compared with
     $8,715 million, up 42%. Replacement cost profit, before exceptional
     items, for the fourth quarter and year was $1,819 million and a record
     $9,543 million respectively, compared with $1,697 million and
     $4,698 million a year ago.

•    The fourth quarter overall trading environment was more favourable than
     a year ago.

•    In Exploration and Production, the impact of higher prices and volumes
     in the fourth quarter was offset by higher depreciation, foreign
     exchange effects, one-time charges and an increase in the provision for
     Unrealized Profit in Stock.

•    Reserve replacement in 2003 was 122%. Including equity-accounted
     entities and the effect of acquisitions (notably our interest in
     TNK-BP) and disposals, additions to year end reserves were 158% of 2003
     production.

•    On 16 January 2004, we completed the deal to include AAR's 50% interest
     in Slavneft into TNK-BP, at a cost of $1.4 billion in cash. On
     13 January 2004, we sold our investment in PetroChina for
     $1.65 billion.

•    Net cash outflow for the quarter was $1,837 million and net cash inflow
     for the year was $1,342 million, compared with an inflow of
     $711 million and an outflow of $344 million a year ago.

•    The pro forma ratio of net debt to net debt plus equity was 24% at the
     end of the quarter.

•    Return on average capital employed for the quarter and year
     respectively, on a pro forma basis adjusted for special items, was 13%
     and 16%, compared with 15% and 13% a year ago.

•    The quarterly dividend was 6.75 cents per share ($0.405 per ADS). This
     compares with 6.25 cents a year ago. For the year the dividend showed
     an increase of 8.3%. In sterling terms, the quarterly dividend is
     3.674 pence per share compared with 3.815 pence a year ago; for the
     year the decrease was 0.8%.

BP Group Chief Executive, Lord Browne, said:

     'Our results in 2003 have set a new record. We have delivered a good
     result from our existing assets and operations, while building a strong
     platform for the future. Our focus is now on delivering the growth in
     free cash flow of which we believe our portfolio is capable. We intend
     to restart our share buyback programme this quarter, subject to market
     conditions.'

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

(a)  The special items refer to non-recurring charges and credits. The
     special items for the fourth quarter comprise impairment charges and
     restructuring costs in Exploration and Production, Veba integration
     costs in Refining and Marketing and a provision to cover future rental
     payments on surplus property in Other businesses and corporate and tax
     restructuring benefits.

(b)  Acquisition amortization is depreciation and amortization relating to
     the fixed asset revaluation adjustments and goodwill consequent upon
     the ARCO and Burmah Castrol acquisitions. The fourth quarter 2003
     includes accelerated depreciation of the revaluation adjustment in
     respect of the impairment of former ARCO assets.


                      Summary Fourth Quarter Results

Exploration and Production's fourth quarter result was broadly in line with a
year ago, after reflecting the effects of higher oil and gas prices and a full
quarter of TNK-BP, offset by higher depreciation, foreign exchange effects,
one-time charges and an increase in the provision for Unrealized Profit in
Stock.

In Gas, Power and Renewables, the result reflects improvement in marketing and
trading, including LNG, partly offset by a lower result for the natural gas
liquids business.

The Refining and Marketing result increased 23% compared with a year ago due to
improved refining margins and marketing margins, particularly retail margins in
the USA and Europe, with some offset from higher gas fuel costs.

The Petrochemicals result reflects operational difficulties in the nitriles
business, the strength of the euro on our European cost base and non-routine
charges, partly offset by a slight improvement in margins.

Interest expense for the quarter was $227 million compared with $213 million for
the prior quarter. The increase reflects the inclusion of TNK-BP for a full
quarter, partly offset by lower debt buy-back costs and an increase in
capitalized interest.

The pro forma effective tax rate on replacement cost profit, before exceptional
items, and adjusted for special items, was 33.5% for the quarter compared with
34.0% a year ago. The special items in the quarter include tax restructuring
benefits of $150 million.

Capital expenditure was $4.7 billion for the quarter; there were no
acquisitions. Disposal proceeds for the quarter were $1.4 billion.

Net cash outflow was $1,837 million compared with an inflow of $711 million a
year ago, due to lower cash flow from operating activities and higher tax
payments, partly offset by higher disposal proceeds. The reduced cash flow from
operating activities reflects the payments of $1.6 billion to group pension
schemes.

Net debt at the end of the quarter was $20.2 billion. The pro forma ratio of net
debt to net debt plus equity was 24%.

---------

The commentaries above and following are based on the pro forma replacement cost
operating results, before exceptional items, adjusted for special items.

To reflect BP's increased focus on chemical products derived from oil and gas,
the Chemicals segment has been renamed Petrochemicals.

BP's share of the result of the TNK-BP joint venture has been included within
Exploration and Production with effect from 29 August. TNK-BP operational and
financial information has been estimated.

                  Reconciliation of Reported Results to
              Pro Forma Results Adjusted for Special Items



 Pro Forma Result                                            Pro Forma Result
 adjusted for  ----- 4Q 2003 ---------------                   adjusted for
 special items                                                 special items
 -------------------
    4Q     3Q     4Q Special   Acq. Reported                         Year
  2002   2003   2003  Items* Amort+ Earnings $ million           2003    2002
 ===========================================                   ==============
                                             Exploration and
 3,666  3,813  3,687     323   426     2,938   Production      15,977  12,005
                                             Gas, Power
    72     98     77       -     -        77   and Renewables     472     384
                                             Refining and
   587    978    722     146   211       365   Marketing        3,689   2,081
   139    124     35       -     -        35 Petrochemicals       606     765
                                             Other businesses
  (146)  (320)  (221)     74     -      (295)  and corporate     (840)   (515)
 -------------------------------------------                   --------------
                                             RC operating
 4,318  4,693  4,300     543   637     3,120   profit          19,904  14,720
 -------------------------------------------                   --------------
  (317)  (213)  (227)      -     -      (227)Interest expense    (851) (1,264)
(1,360)(1,569)(1,365)   (332)    -    (1,033)Taxation          (6,504) (4,673)
    (6)   (43)   (41)      -     -       (41)MSI                 (170)    (68)
 -------------------------------------------                   --------------
                                             RC profit before
 2,635  2,868  2,667     211   637     1,819 exceptional items 12,379   8,715
 -------------------------------------------                   --------------
                                         (15)Exceptional items before tax
                                          84 Taxation on exceptional items
                                       -----
                                       1,888 RC profit after exceptional items
                                          84 Stock holding gains
                                       -----
                                       1,972 HC profit

                                       =====

* The special items refer to non-recurring charges and credits. The special
  items for the fourth quarter comprise impairment charges and restructuring
  costs in Exploration and Production, Veba integration costs in Refining
  and Marketing and a provision to cover future rental payments on surplus
  property in Other businesses and corporate and tax restructuring benefits.

+ Acquisition amortization is depreciation and amortization relating to
  the fixed asset revaluation adjustments and goodwill consequent upon
  the ARCO and Burmah Castrol acquisitions. The fourth quarter 2003
  includes accelerated depreciation of the revaluation adjustment in
  respect of the impairment of former ARCO assets.

                            Operating Results

 Fourth   Third  Fourth
Quarter Quarter Quarter                                            Year
   2002    2003    2003                                        2003    2002
=======================                                      ==============

                         Replacement cost
  3,181   3,844   3,120  operating profit ($m)               16,413  10,246
-----------------------                                      --------------
                         Replacement cost profit
  1,697   2,142   1,819  before exceptional items ($m)        9,543   4,698
-----------------------                                      --------------
                         Profit after exceptional items ($m)
    825   2,310   1,888  Replacement cost                    10,251   5,741
    651   2,394   1,972  Historical cost                     10,267   6,845
-----------------------                                      --------------
                         Per ordinary share (cents)
                         Pro forma result
  11.78   13.00   12.07    adjusted for special items         55.83   38.90
                         RC profit before
   7.58    9.71    8.23    exceptional items                  43.03   20.97
   2.92   10.85    8.93  HC profit after exceptional items    46.30   30.55

                         Per ADS (cents)
                         Pro forma result
  70.68   78.00   72.42    adjusted for special items        334.98  233.40
                         RC profit before
  45.48   58.26   49.38    exceptional items                 258.18  125.82
  17.52   65.10   53.58  HC profit after exceptional items   277.80  183.30
-----------------------                                      --------------
                        Exploration and Production

   4Q    3Q    4Q                                                  Year
 2002  2003  2003   $ million                                  2003    2002
=================                                            ==============
3,248 3,520 2,938   Replacement cost operating profit        13,937   9,206
   99     -   323   Special items                               474   1,019
  319   293   426   Acquisition amortization                  1,566   1,780
-----------------                                            --------------
                    Pro forma operating result
3,666 3,813 3,687   adjusted for special items               15,977  12,005
=================                                            ==============

                    Results include:
  179   136   193   Exploration expense                         542     644
                    Of which:
  124    75   129   Exploration expenditure written off         297     385
-----------------                                            --------------

                    Production (Net of Royalties)
1,787 1,852 2,248   Crude oil (mb/d)                          1,911   1,771
  262   202   206   Natural gas liquids (mb/d)                  210     247
2,049 2,054 2,454   Total liquids (mb/d)(a)                   2,121   2,018
8,936 8,401 8,600   Natural gas (mmcf/d)                      8,613   8,707
3,590 3,502 3,936   Total hydrocarbons (mboe/d)(b)            3,606   3,519
=================                                            ==============

                    Average realizations
26.22 27.72 28.18   Crude oil ($/bbl)                         28.23   24.06
14.62 19.39 20.15   Natural gas liquids ($/bbl)               19.26   12.85
24.78 26.79 27.30   Total liquids ($/bbl)                     27.25   22.69
 2.87  3.08  3.18   Natural gas ($/mcf)                        3.39    2.46
21.03 22.58 23.15   Total hydrocarbons ($/bbl)                23.69   18.88
=================                                            ==============

                    Average oil marker prices
                    ($/bbl)
26.88 28.38 29.43   Brent                                     28.83   25.03
28.31 30.19 31.15   West Texas Intermediate                   31.06   26.14
26.86 28.83 29.43   Alaska North Slope US West Coast          29.59   24.77
=================                                            ==============

 3.99  4.97  4.58   Henry Hub gas price ($/mmbtu)(c)           5.37    3.22

                    UK Gas - National
19.09 15.08 27.30   Balancing Point (p/therm)                 20.28   15.78
=================                                            ==============

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


                        Exploration and Production

The pro forma result for the fourth quarter was $3,687 million, slightly ahead
of the result for the fourth quarter of 2002 when adjusted for special charges
of $323 million. Acquisition amortization of $426 million includes accelerated
amortization of $121 million. The special items and the accelerated acquisition
amortization relate to impairment of the Miller field ($133 million) in the UK
following a decision not to proceed with waterflood and gas import options and
four assets in the Gulf of Mexico Shelf ($296 million) following technical
reassessments and re-evaluation of future investment options, and special
restructuring charges of $15 million in respect of ongoing restructuring in the
UK and North America.

The quarter saw increased production and higher oil and gas prices. Liquids
realizations increased by $2.52/bbl, and natural gas realizations by $0.31/mcf
compared with a year ago. Higher depreciation, foreign exchange effects,
one-time charges in the USA and an increase in the provision for Unrealized
Profit in Stock (UPIS) offset the impact of higher volumes and prices in the
quarter. The charge of $57 million in the quarter for UPIS, which removes the
upstream margin from downstream inventories, compares with a credit of $49
million in the equivalent quarter of last year.

The full year result at $15,977 million, up $3,972 million on a year ago,
reflects the impact of increased production, higher oil and gas prices and a
reduction in exploration expense partly offset by an increase in the
depreciation charge.

During the quarter we had further exploration success in Angola on Block 31 with
the Marte discovery and in Block 15 with the Tchichumba discovery and in
Deepwater Gulf of Mexico with the Tubular Bells and the Puma discoveries.

Progress continues in our new profit centres. During the fourth quarter, the
deepwater developments of Jasmim and Xikomba in Angola and Na Kika in the Gulf
of Mexico started production. Other deepwater developments in the Gulf of Mexico
are progressing well with the Holstein and Mad Dog spars now on the Gulf Coast
for final construction and installation. Hull construction on Atlantis has
commenced in South Korea. In Azerbaijan, construction is well advanced on the
Azeri project and the BTC pipeline is on track for start-up in the first half of
2005. The Cannonball gas development in Trinidad has been approved and in Angola
we have commenced the awarding of major contracts on the Greater Plutonio
deepwater project.

Production for the quarter was up by more than 9% at 3,936 mboe/d compared with
the fourth quarter of 2002. This reflects a full quarter's production volumes
from our interest in TNK-BP partly offset by a reduction from divestments. Total
production for the year was 3,606 mboe/d, an increase of over 2% on last year
and reflects the offsetting impacts of divestments and the inclusion of TNK-BP
volumes from 29 August.

The reserve replacement ratio for the year was 122% with 1,342 billion barrels
of oil equivalent booked through discoveries, extensions, revisions and improved
recovery. Reserve replacement has exceeded production for the eleventh
consecutive year. Including equity-accounted entities and the effect of
acquisitions and disposals, additions to year end reserves were 158% of 2003
production.

During the fourth quarter we completed our 2003 programme of portfolio upgrading
with the sale of our 50% interest in the In Salah gas project in Algeria with
proceeds received on 23 December. This brought divestment proceeds for the year
to $4.9 billion.
On 16 January, we announced the completion of the transaction in which Alfa
Group and Access-Renova's 50% interest in Slavneft was transferred into TNK-BP.

                          Gas, Power and Renewables

    4Q      3Q      4Q                                              Year
  2002    2003    2003   $ million                              2003    2002
======================                                        ==============
    72      98      77   Replacement cost operating profit       472     354
     -       -       -   Special items                             -      30
     -       -       -   Acquisition amortization                  -       -
----------------------                                        --------------
                         Pro forma operating result
    72      98      77   adjusted for special items              472     384
======================                                        ==============
                         Gas sales volumes (mmcf/d)
 2,715   2,174   2,565   UK                                    2,631   2,372
   442     362     511   Rest of Europe                          441     399
10,723  11,808  12,121   USA                                  11,528   9,315
10,659  11,133  13,138   Rest of World                        11,669   9,535
-----------------------                                       --------------
24,539  25,477  28,335   Total gas sales volumes              26,269  21,621
=======================                                       ==============
                         NGL sales volumes (mb/d)
     -       -       -   UK                                        -       -
     -       -       -   Rest of Europe                            -       -
   262     188     206   USA                                     164     196
   244     163     209   Rest of World                           182     214
-----------------------                                       --------------
   506     351     415   Total NGL sales volumes                 346     410
=======================                                       ==============



                          Gas, Power and Renewables

The pro forma result for the fourth quarter was $77 million compared with $72
million a year ago. The year's result, after adjusting for special items, was
$472 million compared to $384 million for 2002.

The fourth quarter result is up due to an improved marketing and trading result,
including LNG, which more than offset a lower result in the natural gas liquids
business. The full year result reflects a strong performance from marketing and
trading, including LNG, partly offset by a lower result for the natural gas
liquids business, restructuring charges in Solar and the absence of a
contribution from Ruhrgas following the sale of our interest last year.

The increased marketing and trading results for the quarter and the year were
driven by higher gas sales volumes in North America and a strong performance
from the global LNG business. Fourth quarter gas sales volumes were up 15% and
equity LNG sales were up 36%. During the quarter BP and Sonatrach announced a
joint venture that has secured long term capacity rights to the Isle of Grain
import regasification terminal in the South East of England, which will enable
the two companies to source and then supply 500 mmscfd of LNG into the UK market
from 2005. BP announced that it proposes to build an LNG terminal in New Jersey,
USA, which is scheduled to come into service around 2008. BP and BPMIGAS of
Indonesia have signed a Heads of Agreement with Sempra LNG Corporation for a
20-year supply of LNG from Indonesia to markets in the USA and Mexico. BP has
acquired a 35% interest in SK Power (previously a subsidiary of SK Corporation
of South Korea), which has begun construction of a power station in Gwangyang,
South Korea. The Tangguh LNG project was selected earlier as the supplier to the
power station.

The result for the natural gas liquids business for the fourth quarter and year
is down due to high gas prices relative to liquids prices in North America,
which has led to lower sales volumes.

                         Refining and Marketing

     4Q      3Q      4Q                                            Year
   2002    2003    2003  $ million                             2003    2002
=======================                                       =============
    (36)    455     365  Replacement cost operating profit    2,340     872
    420     318     146  Special items                          523     415
    203     205     211  Acquisition amortization               826     794
-----------------------                                       -------------
                         Pro forma operating result
    587     978     722  adjusted for special items           3,689   2,081
=======================                                       =============
                         Refinery throughputs (mb/d)
    392     405     389  UK                                     397     389
    959     909     873  Rest of Europe                         932     918
  1,439   1,406   1,374  USA                                  1,386   1,439
    367    366      378  Rest of World                          382     357
-----------------------                                       -------------
  3,157   3,086   3,014  Total throughput                     3,097   3,103
=======================                                       =============
   96.1    96.2    94.9  Refining availability(a)(%)           95.5    96.1
=======================                                       =============
                         Oil sales volumes (mb/d)
                         Refined products
    269     270     257  UK                                     271     253
  1,541   1,293   1,295  Rest of Europe                       1,316   1,467
  1,875   1,828   1,788  USA                                  1,797   1,874
    611     657     681  Rest of World                          648     586
-----------------------                                      --------------
  4,296   4,048   4,021  Total marketing sales                4,032   4,180
  2,064   2,647   2,350  Trading/supply sales                 2,691   2,383
-----------------------                                      --------------
  6,360   6,695   6,371  Total refined product sales          6,723   6,563
  5,314   5,316   4,504  Crude oil                            5,007   4,671
-----------------------                                      --------------
 11,674  12,011  10,875  Total oil sales                     11,730  11,234
=======================                                      ==============
                         Global Indicator Refining Margin(b)
                         ($/bbl)
   2.19    2.47    2.21  NWE                                   2.62    1.04
   2.98    5.61    3.53  USGC                                  4.71    2.36
   4.09    6.39    2.89  Midwest                               4.54    3.30
   3.95    9.04    6.09  USWC                                  7.06    4.34
   1.41    1.27    2.20  Singapore                             1.77    0.57
   2.76    4.59    3.14  BP Average                            3.88    2.11
=======================                                      ==============

(a) Refining availability is the weighted average percentage of the period
    that refinery units are available for processing, after accounting for
    downtime such as turnarounds.

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


                         Refining and Marketing

The pro forma result for the fourth quarter, adjusted for special items, was
$722 million. This compares with $587 million a year ago, an increase of $135
million. The net special items of $146 million for the quarter consisted of Veba
integration costs of $156 million and a credit of $10 million arising from the
reversal of restructuring provisions. This represents the final charge in
respect of the Veba integration.

The result for the year of $3,689 million is up $1,608 million compared to last
year, an increase of 77%. The net special items for the year of $523 million
comprised a $246 million charge resulting from a reassessment of our
environmental remediation provisions, Veba integration costs of $287 million and
a credit of $10 million arising from the reversal of restructuring provisions.

The results for the fourth quarter and year reflect improved refining margins
despite higher gas fuel costs, and higher marketing margins, particularly retail
margins in the USA and Europe. Improved operating performance in the marketing
businesses also contributed to the results.

Refining throughputs for the quarter were 4.5% lower than the same period last
year due to disposals, with refining availability at 94.9% compared with 96.1% a
year ago. Full year refining throughputs were flat compared with 2002, while
availability for the year was 95.5% compared with 96.1%. Marketing volumes for
the quarter were 6% lower than the same period last year and 4% lower for the
year, as expected, due to divestments.

The roll-out of our new premium retail fuels, Ultimate gasoline and diesel,
continued this quarter. Ultimate is now available in the UK, the USA, Greece,
Spain, Portugal and Australia.

During the quarter we reached agreement in principle for H&R WASAG to purchase
BP's European Special Products business, including the Neuhof base oil refinery
in Hamburg, Germany.


                              Petrochemicals

     4Q      3Q      4Q                                            Year
   2002    2003    2003   $ million                            2003    2002
=======================                                       =============
    104      81      35   Replacement cost operating profit     568     515
     35      43       -   Special items                          38     250
      -       -       -   Acquisition amortization                -       -
-----------------------                                       -------------
                          Pro forma operating result
    139     124      35   adjusted for special items            606     765
=======================                                       =============
    108     109     114(b)Chemicals Indicator Margin(a)($/te)   113(b)  104
=======================                                       =============
                          Petrochemicals production (kte)
    698     771     832   UK                                  3,186   3,221
  2,679   2,724   2,790   Rest of Europe                     10,958  10,526
  2,447   2,563   2,466   USA                                10,068  10,201
    785     982   1,065   Rest of World                       3,731   3,040
-----------------------                                      --------------
  6,609   7,040   7,153   Total production                   27,943  26,988
=======================                                      ==============

(a) The Chemicals Indicator Margin (CIM) is a weighted average of
    externally-based product margins. It is based on market data collected
    by Nexant (formerly Chem Systems) in their quarterly market analyses,
    then weighted based on BP's product portfolio. It does not cover our
    entire portfolio of products, and consequently is only indicative rather
    than representative of the margins achieved by BP in any particular
    period. Amongst the products and businesses covered in the CIM are
    olefins and derivatives, the aromatics and derivatives, linear alpha-
    olefins (LAOs), acetic acid, vinyl acetate monomers and nitriles. Not
    included are fabrics and fibres, plastic fabrications, poly alpha-
    olefins (PAOs), anhydrides, speciality intermediates, and the remaining
    parts of the solvents and acetyls businesses.

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


                                Petrochemicals

Petrochemicals' pro forma result for the fourth quarter was $35 million, down
from $124 million in the third quarter. A slight improvement in margins was more
than offset by several factors including operational difficulties in the
nitriles business, the strength of the euro on our European cost base and a
number of non-routine charges.

There were no special items in the fourth quarter. Special items for the year
were $38 million.

The year's result of $606 million was down $159 million. In addition to the
factors affecting the fourth quarter, the decrease reflected prolonged margin
weakness, primarily in our European polymers businesses, and a lower result from
SARS affected businesses in Asia during the first half year.

Petrochemicals production of 7,153 thousand tonnes in the fourth quarter was up
113 thousand tonnes on the previous quarter. Production for the year was 27,943
thousand tonnes, up 3.5% on 2002, establishing a new record for the business.
The increase was due to improved asset utilization across the business as well
as new production capacity and increased ownership in our Asian associated
undertakings.

During the fourth quarter, our portfolio management actions continued. We sold
our interest in AG International Chemical Company, a purified isophthalic acid
associated undertaking in Japan. Engineering contracts were awarded for a new
300 thousand-tonne acetic acid plant to be built in Taiwan as part of the
Formosa BP Chemicals Corporation joint venture.

                        Other Businesses and Corporate


   4Q    3Q    4Q                                                  Year
 2002  2003  2003   $ million                                  2003    2002
=================                                             =============
 (207) (310) (295)  Replacement cost operating loss            (904)   (701)
   61   (10)   74   Special items                                64     186
    -     -     -   Acquisition amortization                      -       -
-----------------                                             -------------
                    Pro forma operating result
 (146) (320) (221)  adjusted for special items                 (840)   (515)
=================                                             =============

Other businesses and corporate comprises Finance, the group's coal asset and
aluminium asset, its investments in PetroChina and Sinopec, interest income and
costs relating to corporate activities. BP sold its interest in PetroChina for
$1.65 billion on 13 January 2004. The special item for the quarter is a
provision for future rental payments on surplus leasehold property. Although not
classifed as special items, the result also includes charges of $59 million in
respect of additional provisions for litigation and $41 million for BP
Foundation funding and a foreign exchange credit of $42 million.

                              Exceptional Items

   4Q    3Q    4Q                                                  Year
 2002  2003  2003   $ million                                  2003    2002
=================                                             =============
                    Profit (loss) on sale of fixed assets and
 (893)  172   (15)    businesses or termination of operations   831   1,168
   21    (4)   84   Taxation (charge) credit                   (123)   (125)
-----------------                                             -------------
 (872)  168    69   Exceptional items after taxation            708   1,043
=================                                             =============

Exceptional items for the fourth quarter include a gain on the sale of our
interest in PT Kaltim Prima Coal, more than offset by losses on various minor
Exploration and Production and Refining and Marketing disposals.

                              2003 Dividends

   4Q    3Q    4Q                                                  Year
 2002  2003  2003                                              2003    2002
=================                                             =============
                    Dividends per ordinary share
 6.25  6.50  6.75   cents                                     26.00   24.00
3.815 3.857 3.674   pence                                    15.517  15.638
 37.5  39.0  40.5   Dividends per ADS (cents)                 156.0   144.0
-----------------------                                      --------------

BP today announced a fourth quarterly dividend for 2003 of 6.75 cents per
ordinary share. Holders of ordinary shares will receive 3.674 pence per share
and holders of American Depositary Receipts (ADRs) $0.405 per ADS share. The
dividend is payable on 15 March to shareholders on the register on 20 February.
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 15 March. The first quarter 2004 results and dividend will be announced on 27
April 2004.

                                Outlook

BP Group Chief Executive, Lord Browne, concluded:

   'The world economy recovered in the fourth quarter. Growth was robust in
   the USA and in Asia, particularly China, but Europe continued to lag. The
   USA and Asia are expected to continue growing above trend in 2004 but
   European growth is expected to remain below trend, with the exception of
   the UK.

   'Crude oil prices continued to strengthen in the fourth quarter, adding
   around $1 per barrel compared with the third quarter to average $29.43
   per barrel (Dated Brent). Prices remained strong in January, averaging
   $31.32 (Dated Brent) in the face of low US crude oil inventories and cold
   weather in the eastern USA. Underlying oil demand appears to be strong on
   the back of global economic recovery and the ongoing economic boom in
   China, and has been growing faster than oil supply outside OPEC. OPEC
   fourth quarter production is thought to have increased modestly, despite
   the 900,000 barrels per day quota cut that became effective on 1
   November. We expect that future oil prices will largely depend on OPEC's
   ability to realign production in line with seasonal requirements.

   'US natural gas prices continued to trade between residual fuel oil and
   distillate parity in the fourth quarter, with the Henry Hub First of the
   Month Index averaging $4.58/mmbtu, 39 cents per mmbtu below the third
   quarter. Cold January weather raised prices to above $6/mmbtu on average,
   but they have since eased. Working gas inventories are above last year's
   and 5-year average levels. We expect the path of gas prices will depend
   on weather during the balance of winter and movements in oil prices.

   'Refining margins in the fourth quarter weakened relative to the third
   quarter in the face of crude market tightness and recovering product
   inventories, but remained above historic average levels. Margins have
   been mostly firm so far in 2004 on the back of strong global oil demand
   growth and cold US weather. Demand strength should continue to be a
   constructive factor for refining margins. Retail margins were lower in
   the fourth quarter relative to the third quarter.

   'Petrochemical margins in the fourth quarter remained under pressure from
   high feedstock costs and this has carried over into the first quarter of
   2004. However, margins and sales are expected to improve in 2004,
   reflecting modest increases in industry utilization rates.

   'Capital expenditure for 2003 was $14.0 billion, excluding acquisitions,
   and is projected to be approximately $13.5 billion in 2004. Production
   capacity is expected to grow to more than 4 mmboe/d in 2004, an increase
   of more than 10% from actual 2003 output. After adjusting for the impact
   of portfolio changes, this is consistent with the lower end of the
   guidance range for 2004 capacity of 3.6 to 3.7 mmboe/d given in February
   2003. The company intends to restart its share buyback programme this
   quarter, subject to market conditions. Purchases may be increased,
   decreased or discontinued at any time without prior notice.'

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

     The foregoing discussion, in particular the statements under 'Outlook',
     contains forward looking statements particularly those regarding BP's
     asset portfolio and changes in it, capital expenditure, costs, demand,
     future performance, gearing, growth and other trend projections,
     margins, prices, production, sales, share repurchases and the timing of
     pending transactions. Forward looking statements by their nature
     involve risks and uncertainties and actual results may differ from
     those expressed in such statements depending on a variety of factors
     including the following: the timing of bringing new fields on stream;
     industry product supply; demand and pricing; currency exchange rates;
     operational problems; general economic conditions; political stability
     and economic growth in relevant areas of the world; changes in
     governmental regulations; exchange rate fluctuations; development and
     use of new technology and successful commercial relationships; the
     actions of competitors; natural disasters and other changes in business
     conditions; prolonged adverse weather conditions; and wars and acts of
     terrorism or sabotage. For more information you should refer to our
     Annual Report and Accounts 2002 and our Annual Report on Form 20-F
     filed with the US Securities and Exchange Commission.

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



                      This information is provided by RNS
            The company news service from the London Stock Exchange


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