Final Results - Part 2
BP PLC
12 February 2002
PART 2
BP p.l.c. and Subsidiaries
Summarized Group Results
Fourth Third Fourth
Quarter Quarter Quarter Year
2000 2001 2001 2001 2000
======================= ==============
$ million $ million
4,238 2,641 1,655 Exploration and Production 12,417 14,012
183 130 106 Gas and Power 521 571
792 1,003 392 Refining and Marketing 3,625 3,523
(82) 105 (67) Chemicals 128 760
(368) (122) (179) Other businesses and corporate (556) (1,110)
----------------------- --------------
Total replacement cost
4,763 3,757 1,907 operating profit 16,135 17,756
Profit (loss) on sale of
fixed assets and businesses and
78 184 (38) termination of operations (Note 4) 535 220
----------------------- --------------
Replacement cost profit before
4,841 3,941 1,869 interest and tax 16,670 17,976
(561) (405) (1,297) Stock holding gains (losses)(Note 6)(1,900) 728
----------------------- --------------
Historical cost profit before
4,280 3,536 572 interest and tax 14,770 18,704
611 369 414 Interest expense (Note 7) 1,670 1,770
----------------------- --------------
3,669 3,167 158 Profit before taxation 13,100 16,934
1,242 1,212 537 Taxation (Note 8) 5,017 4,972
----------------------- --------------
2,427 1,955 (379) Profit (loss) after taxation 8,083 11,962
17 15 26 Minority shareholders' interest 73 92
----------------------- --------------
2,410 1,940 (405) Profit (loss) for the period 8,010 11,870
1,178 1,232 1,289 Distribution to shareholders 4,935 4,625
----------------------- --------------
Retained profit (deficit)
1,232 708 (1,694) for the period 3,075 7,245
======================= ==============
Earnings (loss) per
ordinary share - cents
10.53 8.66 (1.78) Basic 35.70 54.85
10.47 8.59 (1.76) Diluted 35.48 54.48
======================= ==============
Replacement Cost Results
Historical cost profit (loss)
2,410 1,940 (405) for the period 8,010 11,870
561 405 1,297 Stock holding (gains) losses 1,900 (728)
----------------------- --------------
Replacement cost profit
2,971 2,345 892 for the period 9,910 11,142
(172) 10 164 Exceptional items, net of tax (30) 72
----------------------- --------------
Replacement cost profit before
2,799 2,355 1,056 exceptional items 9,880 11,214
----------------------- --------------
Earnings per ordinary share - cents
On replacement cost profit before
12.40 10.50 4.73 exceptional items 44.03 51.82
======================= =============
Summarized Group Balance Sheet
31 December 31 December
2001 2000
---------------------
$ million
Fixed assets
Intangible assets 15,593 16,761
Tangible assets 77,410 74,284
Investments 12,047 11,962
---------------------
105,050 103,007
---------------------
Current assets
Business held for resale - 636
Stocks 7,631 9,234
Debtors 26,669 28,418
Investments 450 661
Cash at bank and in hand 1,358 1,170
---------------------
36,108 40,119
Creditors - amounts falling due within one year
Finance debt 9,090 6,418
Other creditors 28,524 31,298
---------------------
Net current assets (liabilities) (1,506) 2,403
---------------------
Total assets less current liabilities 103,544 105,410
Creditors - amounts falling due
after more than one year
Finance debt 12,327 14,772
Other creditors 3,086 3,842
Provisions for liabilities and charges 13,137 12,795
---------------------
Net assets 74,994 74,001
Minority shareholders' interest 627 585
---------------------
BP shareholders' interest 74,367 73,416
=====================
Movement in BP shareholders' interest: $ million
At 31 December 2000 73,416
Profit for the period 8,010
Distribution to shareholders (4,935)
Currency translation differences (908)
Employee share schemes 181
Share buy-back (1,281)
Redemption of ARCO preference shares (116)
------
At 31 December 2001 74,367
======
Summarized Group Cash Flow Statement
Fourth Third Fourth
Quarter Quarter Quarter Year
2000 2001 2001 2001 2000
======================= ============
$ million $ million
Net cash inflow from
5,779 5,046 5,547 operating activities (a) 22,409 20,416
----------------------- ---------------
- 26 12 Dividends from joint ventures 104 645
----------------------- ---------------
Dividends from
120 155 104 associated undertakings 528 394
----------------------- ---------------
Servicing of finance and returns
on investments
100 23 83 Interest received 256 444
(471) (308) (229) Interest paid (1,282) (1,354)
30 59 35 Dividends received 132 42
Dividends paid to
(4) (11) (38) minority shareholders (54) (24)
----------------------- ---------------
Net cash outflow from servicing of
(345) (237) (149) finance and returns on investments (948) (892)
----------------------- ---------------
Taxation
(428) (231) (454) UK corporation tax (1,058) (869)
(1,571) (486) (968) Overseas tax (3,602) (5,329)
----------------------- ---------------
(1,999) (717) (1,422) Tax paid (4,660) (6,198)
----------------------- ---------------
Capital expenditure and
financial investment
(3,689) (2,933) (3,688) Payments for fixed assets (12,214) (10,101)
Proceeds from the sale
917 824 615 of fixed assets 2,365 3,029
----------------------- ---------------
Net cash outflow for
capital expenditure and
(2,772) (2,109) (3,073) financial investment (9,849) (7,072)
----------------------- -------------
Acquisitions and disposals
Investments in associated
(88) (139) (179) undertakings (586) (985)
(1,561) (48) (602) Acquisitions, net of cash acquired (1,210) (6,265)
- (144) (220) Net investment in joint ventures (497) (218)
402 307 231 Proceeds from the sale of businesses 538 8,333
----------------------- ---------------
Net cash (outflow) inflow for
(1,247) (24) (770) acquisitions and disposals (1,755) 865
----------------------- ---------------
(1,183) (1,235) (1,232) Equity dividends paid (4,827) (4,415)
----------------------- ---------------
(1,647) 905 (983) Net cash inflow (outflow) 1,002 3,743
======================= ===============
(1,059) 630 (855) Financing (b) 972 3,413
(158) (44) (65) Management of liquid resources (211) 452
(430) 319 (63) Increase (decrease) in cash 241 (122)
----------------------- ---------------
(1,647) 905 (983) 1,002 3,743
======================= ===============
Analysis of Cash Flow
Fourth Third Fourth
Quarter Quarter Quarter Year
2000 2001 2001 2001 2000
======================= ==============
$ million $ million
(a) Reconciliation of historical
cost profit before interest
and tax to net cash inflow
from operating activities
Historical cost profit before
4,280 3,536 572 interest and tax 14,770 18,704
2,228 2,077 2,430 Depreciation and amounts provided 8,750 7,449
Exploration expenditure
73 23 85 written off 238 264
Share of profits of joint ventures
(350) (278) (303) and associated undertakings (1,194) (1,853)
(79) (116) (132) Interest and other income (478) (360)
(Profit) loss on sale of fixed
(78) (184) 36 assets and businesses (537) (196)
33 115 187 Charge for provisions 1,008 702
(426) (263) (221) Utilization of provisions (1,119) (969)
(185) 135 1,368 Decrease (increase) in stocks 1,490 (1,449)
(1,952) 2,216 1,241 Decrease (increase) in debtors 1,989 (5,587)
2,235 (2,215) 284 (Decrease) increase in creditors (2,508) 3,711
----------------------- ---------------
Net cash inflow from
5,779 5,046 5,547 operating activities 22,409 20,416
======================= ===============
(b) Financing
(96) (7) (267) Long-term borrowing (1,296) (1,680)
1,359 988 434 Repayments of long-term borrowing 2,602 2,353
(3,072) (743) (2,764) Short-term borrowing (6,257) (4,120)
Repayments of short-term
148 40 1,656 borrowing 4,823 4,821
----------------------- ---------------
(1,661) 278 (941) (128) 1,374
(16) (48) (13) Issue of ordinary share capital (181) (257)
Repurchase of ordinary
618 400 99 share capital 1,281 2,001
- - - Stamp duty reserve tax - 295
----------------------- ---------------
Net cash outflow
(1,059) 630 (855) (inflow) from financing 972 3,413
======================= ===============
Capital Expenditure and Acquisitions
Fourth Third Fourth
Quarter Quarter Quarter Year
2000 2001 2001 2001 2000
======================= =============
$ million $ million
By business
Exploration and Production
362 326 312 UK 1,095 961
85 79 99 Rest of Europe 329 195
897 1,123 862 USA 4,155 3,179
781 891 880 Rest of World 3,282 2,048
----------------------- --------------
2,125 2,419 2,153 8,861 6,383
----------------------- --------------
Gas and Power
86 37 46 UK(a) 97 194
13 16 45 Rest of Europe 82 16
5 11 61 USA(b) 109 73
23 10 57 Rest of World 71 53
----------------------- --------------
127 74 209 359 336
----------------------- --------------
Refining and Marketing
393 89 127 UK(c)(d) 394 5,409
328 10 209 Rest of Europe(d) 380 1,712
652 281 623 USA(e) 1,311 1,092
227 62 157 Rest of World 330 480
----------------------- --------------
1,600 442 1,116 2,415 8,693
----------------------- --------------
Chemicals
210 50 26 UK 205 620
17 69 294 Rest of Europe(f) 917 112
166 119 167 USA 460 349
119 112 107 Rest of World 344 504
----------------------- --------------
512 350 594 1,926 1,585
----------------------- --------------
596 78 356 Other businesses and corporate(g) 563 30,616
----------------------- --------------
4,960 3,363 4,428 14,124 47,613
======================= ==============
By geographical area
1,144 541 745 UK 2,128 7,438
443 181 709 Rest of Europe 1,787 2,041
1,796 1,564 1,758 USA 6,160 34,037
1,577 1,077 1,216 Rest of World 4,049 4,097
----------------------- --------------
4,960 3,363 4,428 14,124 47,613
======================= ==============
Capital Expenditure and Acquisitions (continued)
(a) 4Q 2000 included $62 million for the second instalment on two LNG ships.
Year 2000 also included investment in Great Yarmouth Power Station plus the
first and second instalment on the two LNG ships.
(b) Year 2000, 4Q 2001 and year 2001 included investment in Green Mountain
Energy Company.
(c) Year 2000 included $4,686 million for the purchase of Burmah Castrol's
issued share capital. 4Q and year 2000 included $175 million for the
acquisition of the minority interest in Castrol India.
(d) Year 2000 included $1,450 million for the acquisition of the Mobil share of
the European Joint Venture.
(e) 4Q and year 2000 included $110 million for the Olympic pipeline and $70
million for Exxon's aviation lubricants business.
(f) 4Q 2001 included the formation of the joint venture with Solvay. Year 2001
also included the acquisition of Bayer's 50% interest in Erdolchemie.
(g) 4Q and year 2000 included $416 million for the investment in Sinopec. Year
2000 included $27,506 million for the acquisition of ARCO, $1,688 million
for the acquisition of the minority interest in Vastar and $578 million for
the acquisition of a 2.2% interest in PetroChina.
Analysis of Replacement Cost Operating Profit
Fourth Third Fourth
Quarter Quarter Quarter Year
2000 2001 2001 2001 2000
======================= =============
$ million $ million
By business
Exploration and Production
1,082 729 571 UK 3,424 4,043
232 188 144 Rest of Europe 748 826
1,678 850 440 USA 4,629 5,114
1,246 874 500 Rest of World 3,616 4,029
----------------------- --------------
4,238 2,641 1,655 12,417 14,012
----------------------- --------------
Gas and Power
1 36 (29) UK 58 14
54 24 61 Rest of Europe 181 148
29 89 45 USA 265 104
99 (19) 29 Rest of World 17 305
----------------------- -------------
183 130 106 521 571
----------------------- -------------
Refining and Marketing
(71) (51) (197) UK (475) 173
354 222 227 Rest of Europe 762 753
388 696 59 USA 2,637 2,211
121 136 303 Rest of World 701 386
----------------------- -------------
792 1,003 392 3,625 3,523
----------------------- -------------
Chemicals
10 (58) (75) UK (216) (71)
15 87 (1) Rest of Europe 185 286
56 59 (9) USA 62 581
(163) 17 18 Rest of World 97 (36)
----------------------- -------------
(82) 105 (67) 128 760
----------------------- -------------
(368) (122) (179) Other businesses and corporate (556) (1,110)
----------------------- --------------
4,763 3,757 1,907 16,135 17,756
======================= ==============
By geographical area
834 552 375 UK 2,668 3,773
608 512 388 Rest of Europe 1,814 2,013
2,026 1,582 243 USA 7,049 7,296
1,295 1,111 901 Rest of World 4,604 4,674
----------------------- --------------
4,763 3,757 1,907 16,135 17,756
======================= ==============
US dollar/Sterling exchange rates
1.45 1.44 1.44 Average rate for the period 1.44 1.51
1.49 1.48 1.45 Period-end rate 1.45 1.49
======================= =============
Notes
1. Business held for resale
The sale of Foseco was completed during the third quarter. The other former
Burmah Castrol chemicals businesses originally categorized as businesses
held for resale will for now be retained and have been included within the
Chemicals segment from 1 July 2001.
2. Turnover
Fourth Third Fourth
Quarter Quarter Quarter Year
2000 2001 2001 2001 2000
======================= ==============
$ million $ million
By business
8,965 6,335 5,336 Exploration and Production 28,229 30,942
8,553 9,241 7,452 Gas and Power 39,208 21,013
32,708 30,925 26,528 Refining and Marketing 120,233 107,883
2,754 3,272 2,481 Chemicals 11,515 11,247
Other businesses
51 204 216 and corporate 783 249
----------------------- ---------------
53,031 49,977 42,013 199,968 171,334
Less: sales between
8,469 6,397 5,196 businesses 25,750 23,272
----------------------- ---------------
44,562 43,580 36,817 Group excluding JVs 174,218 148,062
284 306 297 Sales of joint ventures 1,171 13,764
----------------------- ---------------
44,846 43,886 37,114 175,389 161,826
======================= ===============
By geographical area
Group excluding JVs
11,982 12,272 11,432 UK 47,618 45,400
11,217 9,026 8,657 Rest of Europe 36,701 20,553
19,023 21,375 16,039 USA 84,696 71,084
9,406 8,006 7,285 Rest of World 33,911 31,014
----------------------- ---------------
51,628 50,679 43,413 202,926 168,051
Less: sales between
7,066 7,099 6,596 areas 28,708 19,989
----------------------- ---------------
44,562 43,580 36,817 174,218 148,062
----------------------- ---------------
Sales of joint ventures
- - 13 UK 13 3,314
- - 30 Rest of Europe 30 12,316
87 49 82 USA 318 270
197 257 172 Rest of World 810 686
------------------------ --------------
284 306 297 1,171 16,586
Less: sales between
- - - areas - 2,822
----------------------- --------------
284 306 297 1,171 13,764
======================== ==============
Notes
3. Operating profits are after charging:
Fourth Third Fourth
Quarter Quarter Quarter Year
2000 2001 2001 2001 2000
======================= =============
$ million $ million
Exploration expense
13 1 9 UK 14 36
10 10 7 Rest of Europe 22 42
72 41 82 USA 256 257
62 34 46 Rest of World 188 264
----------------------- --------------
157 86 144 480 599
======================= ==============
Production taxes (a)
162 80 147 UK petroleum revenue tax 600 707
402 257 189 Overseas production taxes 1,089 1,354
----------------------- --------------
564 337 336 1,689 2,061
======================= ==============
(a) 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
(96) 3 (85) Exploration and Production 195 119
2 - - Gas and Power (1) 1
(87) 247 18 Refining and Marketing 471 98
28 (81) (130) Chemicals (297) (212)
231 15 159 Other businesses and corporate 167 214
----------------------- -------------
Profit (loss) on sale of fixed
assets and businesses and
78 184 (38) termination of operations 535 220
94 (194) (126) Taxation (charge) credit (505) (292)
----------------------- -------------
Exceptional items
172 (10) (164) after taxation 30 (72)
======================= =============
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
2000 2001 2001 2001 2000
======================= =============
$ million $ million
(1) (1) (5) Exploration and Production (6) 4
(11) (17) (20) Gas and Power (81) 11
(520) (301) (1,138) Refining and Marketing (1,583) 620
(29) (86) (134) Chemicals (230) 93
---------------------- --------------
(561) (405) (1,297) (1,900) 728
====================== ==============
7. Interest expense
532 292 286 Group interest payable(a) 1,308 1,482
(42) (19) (7) Capitalized (81) (119)
----------------------- --------------
490 273 279 1,227 1,363
19 16 21 Joint ventures 70 78
42 33 26 Associated undertakings 135 140
Unwinding of discount
60 47 46 on provisions 196 189
Change in discount rate
- - 42 for provisions 42 -
----------------------- --------------
611 369 414 1,670 1,770
======================= ==============
(a) Includes charges relating
to the early redemption
111 2 - of debt 62 111
----------------------- --------------
8. Charge for taxation
334 244 174 UK 940 1,207
908 968 363 Overseas 4,077 3,765
----------------------- --------------
1,242 1,212 537 5,017 4,972
======================= ==============
Notes
9. Analysis of changes in net debt
Fourth Third Fourth
Quarter Quarter Quarter Year
2000 2001 2001 2001 2000
======================= ===============
$ million $ million
Opening balance
19,688 20,498 20,474 Finance debt 21,190 14,544
1,607 1,103 1,438 Less: Cash 1,170 1,331
862 563 519 Current asset investments 661 220
----------------------- ---------------
17,219 18,832 18,517 Opening net debt 19,359 12,993
----------------------- ---------------
Closing balance
21,190 20,474 21,417 Finance debt 21,417 21,190
1,170 1,438 1,358 Less: Cash 1,358 1,170
661 519 450 Current asset investments 450 661
----------------------- ---------------
19,359 18,517 19,609 Closing net debt 19,609 19,359
----------------------- ---------------
Decrease (increase)
(2,140) 315 (1,092) in net debt (250) (6,366)
======================= ==============
Movement in cash/
(430) 319 (63) bank overdrafts 241 (122)
(Decrease) increase in
(158) (44) (65) current asset investments (211) 452
Net cash outflow (inflow)
from financing(excluding
(1,661) 278 (941) share capital) (128) 1,374
(24) (101) (17) Other movements (36) (44)
- - (8) Debt acquired (55) (8,072)
----------------------- --------------
Movement in net debt before
(2,273) 452 (1,094) exchange effects (189) (6,412)
133 (137) 2 Exchange adjustments (61) 46
----------------------- --------------
Decrease (increase)
(2,140) 315 (1,092) in net debt (250) (6,366)
======================= ==============
Notes
10. Consolidated statement of cash flows presented on a US GAAP format
Fourth Third Fourth
Quarter Quarter Quarter Year
2000 2001 2001 2001 2000
======================= ==============
$ million $ million
Operating activities
2,427 1,955 (379) Profit (loss) after taxation 8,083 11,962
Adjustments to reconcile
profits after tax to net
cash provided by
operating activities
Depreciation and
2,228 2,077 2,430 amounts provided 8,750 7,449
Exploration expenditure
73 23 85 written off 238 264
Share of (profit) loss of
joint ventures and associates
(78) 17 (52) less dividends received (60) (377)
(Profit) loss on sale of
(78) (184) 36 businesses and fixed assets (537) (196)
Working capital movement
(578) 561 2,087 (see analysis below) 1,319 (2,848)
(393) (145) (71) Other (225) (1,650)
----------------------- ---------------
Net cash provided by
3,601 4,304 4,136 operating activities 17,568 14,604
----------------------- ---------------
Investing activities
(3,731) (2,952) (3,695) Capital expenditures (12,295) (10,220)
Acquisitions, net of
(1,561) (48) (602) cash acquired (1,210) (6,265)
Investment in
(88) (139) (179) associated undertakings (586) (985)
Net investment in
- (144) (220) joint ventures (497) (218)
Proceeds from
1,319 1,131 846 disposal of assets 2,903 11,362
----------------------- --------------
Net cash from
(4,061) (2,152) (3,850) investing activities (11,685) (6,326)
----------------------- --------------
Notes
10. Consolidated statement of cash flows presented on a US GAAP format
(continued)
Fourth Third Fourth
Quarter Quarter Quarter Year
2000 2001 2001 2001 2000
======================= ==============
$ million $ million
Financing activities
Net proceeds from shares
(602) (352) (86) issued (repurchased) (1,100) (2,039)
Proceeds from
96 7 267 long-term financing 1,296 1,680
Repayments of
(1,359) (988) (434) long-term financing (2,602) (2,353)
Net increase (decrease)
2,924 703 1,108 in short-term debt 1,434 (701)
Dividends paid
(1,183) (1,235) (1,232) - BP shareholders (4,827) (4,415)
(4) (11) (38) - Minority shareholders (54) (24)
----------------------- -------------
Net cash used in
(128) (1,876) (415) financing activities (5,853) (7,852)
----------------------- --------------
Currency translation
differences relating to
(50) 15 (20) cash and cash equivalents (53) (50)
----------------------- --------------
Increase (decrease) in
(638) 291 (149) cash and cash equivalents (23) 376
----------------------- --------------
Cash and cash equivalents
2,469 1,666 1,957 at beginning of period 1,831 1,455
----------------------- --------------
Cash and cash equivalents
1,831 1,957 1,808 at end of period 1,808 1,831
----------------------- --------------
Analysis of working
capital movement
(185) 135 1,368 Decrease (increase) in stocks 1,490 (1,449)
Decrease (increase)
(1,904) 2,249 1,202 in debtors 1,905 (5,501)
(Decrease) increase
1,511 (1,823) (483) in creditors (2,076) 4,102
----------------------- --------------
Total working
(578) 561 2,087 capital movement 1,319 (2,848)
======================= ==============
Notes
11. Ordinary shares
Shares in issue at 31 December 2001 = 22,432.1 million.
Average number of shares outstanding during January-December 2001 =
22,435.7 million (this excludes shares held by the Employee Share Ownership
Plans). Each BP ADS represents six BP Ordinary Shares.
12. Statutory accounts
The above financial information for the year 2001 does not constitute
statutory accounts. It is an extract from the 2001 annual accounts (except
Note 10), 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. The accounting policies used in preparing the 2001 annual
accounts are consistent with those applied in the preceding annual
accounts. Quarterly results are unaudited.
Contacts
London New York Frankfurt
------------------- ---------------- --------------------
Press Roddy Kennedy Ian Fowler
Office +44 (0)20 7496 4624 +1 212 451 8008
Investor Greg Coleman Terry LaMore Karl Weckel
Relations +44 (0)20 7496 4717 +1 212 451 8034 +49 (0)69 71 37 9990
http://www.bp.com/investors
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