Investor Relations supplement

BP Amoco PLC 7 November 2000 BP Amoco p.l.c. Group Results 3rd Quarter 2000 London 7 November 2000 INVESTOR RELATIONS SUPPLEMENT REPLACEMENT COST OPERATING PROFIT ADJUSTED FOR SPECIAL ITEMS* AND ACQUISITION AMORTIZATION+ BY SEGMENT Third Second Third Quarter Quarter Quarter Nine Months 1999 2000 2000 2000 1999 ======================= ============= $ million Exploration and Production 691 972 1,068 UK 3,128 1,510 164 185 221 Rest of Europe 594 321 717 1,463 1,754 USA 4,408 1,391 753 1,007 1,113 Rest of World 2,880 1,432 ----------------------- -------------- 2,325 3,627 4,156 11,010 4,654 ----------------------- -------------- Gas and Power 4 4 14 UK 13 12 44 11 28 Rest of Europe 94 125 3 11 5 USA 15 9 6 - 1 Rest of World 4 17 ----------------------- -------------- 57 26 48 126 163 ----------------------- -------------- Refining and Marketing 103 148 181 UK 362 164 91 159 255 Rest of Europe 450 249 320 1,032 748 USA 2,204 798 148 143 159 Rest of World 483 407 ----------------------- -------------- 662 1,482 1,343 3,499 1,618 ----------------------- -------------- Chemicals 15 (30) (15) UK (76) 57 14 119 76 Rest of Europe 273 131 148 242 162 USA 572 418 16 39 44 Rest of World 127 61 ----------------------- -------------- 193 370 267 896 667 ----------------------- -------------- Other businesses and corporate (63) (10) (21) UK (142) (134) 44 17 21 Rest of Europe 47 49 (65) (162) (117) USA (393) (240) (11) 6 (13) Rest of World (2) (3) ----------------------- -------------- (95) (149) (130) (490) (328) ----------------------- -------------- 3,142 5,356 5,684 15,041 6,774 ======================= ============== * The special items refer to non-recurring charges and credits reported in the quarter. The special items in the quarter comprise principally ARCO, Vastar and Burmah Castrol integration costs and rationalization costs post the BP Amoco merger. + Depreciation and amortization relating to the fixed asset revaluation adjustment and goodwill consequent upon the ARCO and Burmah Castrol acquisitions. ACQUISITION AMORTIZATION BY SEGMENT Third Second Third Quarter Quarter Quarter Nine Months 1999 2000 2000 2000 1999 ======================= ============= $ million Exploration and Production - 6 16 UK 22 - - 227 277 USA 504 - - 20 19 Rest of World 39 - ----------------------- ------------- - 253 312 565 - ----------------------- ------------- Refining and Marketing - - 95 UK 95 - - 64 75 USA 139 - ----------------------- ------------- - 64 170 234 - ----------------------- ------------- - 317 482 799 - ======================= ============= SPECIAL ITEMS BY SEGMENT (PRE-TAX) Third Second Third Quarter Quarter Quarter Nine Months 1999 2000 2000 2000 1999 ======================= ============= $ million Exploration and Production 18 70 42 UK 112 61 1 - - Rest of Europe - 9 120 152 135 USA 287 177 3 37 15 Rest of World 76 9 ----------------------- ------------- 142 259 192 475 256 ----------------------- ------------- Gas and Power - - - UK - - - - - Rest of Europe - - - - - USA - - - - - Rest of World - - ----------------------- ------------- - - - - - ----------------------- ------------- Refining and Marketing 1 - 14 UK 14 17 - 29 22 Rest of Europe 51 - 15 112 58 USA 170 48 5 - 16 Rest of World 16 6 ----------------------- ------------- 21 141 110 251 71 ----------------------- ------------- Chemicals 16 3 2 UK 5 42 6 1 1 Rest of Europe 2 41 24 46 1 USA 47 32 4 - - Rest of World - 5 ----------------------- ------------- 50 50 4 54 120 ----------------------- ------------- Other businesses and corporate 47 19 37 UK 56 77 - - - Rest of Europe - 2 34 131 49 USA 196 78 - - - Rest of World - 1 ----------------------- ------------- 81 150 86 252 158 ----------------------- ------------- 294 600 392 Total 1,032 605 ======================= ============= ENVIRONMENTAL INDICATORS Third Second Third Quarter Quarter Quarter Nine Months 1999 2000 2000 2000 1999 ======================= ============= Average oil realizations* ($/bbl) 19.86 26.24 28.46 UK 27.01 15.17 18.18 23.77 27.44 USA 25.22 14.02 19.32 24.64 27.54 Rest of World 26.15 14.80 19.17 24.98 27.84 BP Average 26.13 14.68 ======================= ============= Average natural gas realizations ($/mcf) 1.96 1.99 2.33 UK 2.18 2.19 2.37 3.01 3.87 USA 3.17 1.97 1.59 2.20 2.29 Rest of World 2.11 1.54 1.99 2.51 3.01 BP Average 2.57 1.87 ======================= ============= 2.60 3.44 4.27 Henry Hub gas price** ($/mcf) 3.42 2.17 ======================= ============= Global Indicator Refining Margin+ ($/bbl) 1.84 4.26 3.44 NWE 3.26 1.29 2.24 5.22 3.62 USGC 3.92 1.56 n/a 6.00 12.54 USWC 8.31 n/a 1.24 0.63 3.19 Singapore 2.08 0.74 1.99 4.69 4.83 BP Average 3.99 1.42 ======================= ============= 108 140 137 Chemicals Indicator Margin ($/te) 130 108 ======================= ============= * Crude oil and natural gas liquids. ** Henry Hub First of Month Index. + The Global Indicator Refining Margin (GIM) is the average of seven regional indicator margins weighted for BP's crude refining capacity in each region. Each regional indicator margin is based on a single representative crude with product yields characteristic of the typical level of upgrading complexity. PER SHARE AMOUNTS Third Second Third Quarter Quarter Quarter Nine Months 1999 2000 2000 2000 1999 ======================= ============= Ordinary shares outstanding at 19,474 22,628 22,597 period end (million) 22,597 19,474 3,246 3,771 3,766 - ADS equivalent (million) 3,766 3,246 n/a n/a n/a Average ordinary shares (million) 21,343 19,376 n/a n/a n/a - ADS equivalent (million) 3,557 3,229 ----------------------- ------------- Replacement cost profit after 1,205 2,886 2,918 exceptional items ($m) 8,357 2,085 6.21 13.10 12.95 cents/ordinary share 39.19 10.75 0.37 0.79 0.78 dollars/ADS 2.35 0.65 ----------------------- ------------- Replacement cost profit before 1,743 2,866 3,058 exceptional items ($m) 8,601 3,646 8.99 12.96 13.55 cents/ordinary share 40.29 18.81 0.54 0.78 0.81 dollars/ADS 2.42 1.13 ----------------------- ------------- Pro forma result adjusted 1,955 3,610 3,796 for special items 10,113 4,083 10.09 16.54 16.91 cents/ordinary share 47.38 21.07 0.60 0.99 1.01 dollars/ADS 2.84 1.26 ----------------------- ------------- EARNINGS ADJUSTED ON TO A QUASI CASH BASIS (PRE-EXCEPTIONAL ITEMS) Third Second Third Quarter Quarter Quarter Nine Months 1999 2000 2000 2000 1999 ======================= ============= $ million 2,848 4,439 4,810 Replacement cost operating profit 13,210 6,169 Earnings from joint ventures (348) (440) (478) and associates (1,272) (901) Dividends from joint ventures 396 475 218 and associated undertakings 919 981 1,197 1,831 1,978 Depreciation and amounts provided 5,004 3,593 141 168 143 Exploration expense 442 437 (209) (344) (315) Interest paid (883) (806) (448) (953) (1,330) Tax paid* (2,820) (641) Dividends paid to (49) (6) (12) minority shareholders (20) (145) ----------------------- -------------- 3,528 5,170 5,014 14,580 8,687 ----------------------- -------------- 18.19 23.52 22.16 cents/ordinary share 68.31 44.83 1.09 1.41 1.33 dollars/ADS 4.10 2.69 ======================= ============== Includes post tax charges for 1.09 2.13 1.29 special items (cents per share) 3.57 2.25 ======================= ============== * Tax paid in the third quarter and nine months 2000 has been adjusted to exclude payments relating to major dispositions and other exceptional items. RETURN ON AVERAGE CAPITAL EMPLOYED Third Second Third Quarter Quarter Quarter Nine Months 1999 2000 2000 2000 1999 ======================= ============= $ million Replacement cost basis 1,743 2,866 3,058 RC profit before exceptional items 8,601 3,646 355 403 460 Interest 1,159 987 49 22 16 Minority shareholders' interest 106 85 ----------------------- ------------- 2,147 3,291 3,534 9,866 4,718 59,336 94,599 96,278* Average Capital Employed ** 58,759 ----------------------- ------------- 14.5% 13.9% 14.7% ROACE ** 16.1% ----------------------- ------------- Pro forma and special items adjustments - 317 482 Acquisition amortization 799 - 212 442 289 Special items (post tax) 761 437 Average Capital employed - 18,079 21,426+ acquisition adjustment ** - ----------------------- ------------ ROACE - Pro forma basis 15.9% 21.2% 23.0% adjusted for special items ** 17.6% ----------------------- ------------ Historical cost basis Historical cost profit 1,848 3,099 3,462 after exceptional items 9,646 3,307 355 403 460 Interest 1,159 987 49 22 16 Minority shareholders' interest 106 85 ----------------------- ------------ 2,252 3,524 3,938 10,911 4,379 15.2% 14.9% 16.4% ROACE ** 14.9% ======================= ============ * Based on an opening capital employed of $99,194 million (BP, ARCO and Burmah Castrol) and closing capital employed of $93,361 million. + Based on the average pro forma adjustment for intangible and tangible fixed assets (average of $21,714 million and $21,137 million). ** As the acquisition of ARCO was completed in April and of Burmah Castrol in July, it is not meaningful to show ROACE for the nine months ended 30 September 2000. NET DEBT RATIO - NET DEBT: NET DEBT + EQUITY Third Second Third Quarter Quarter Quarter Nine Months 1999 2000 2000 2000 1999 ======================= ============= $ million 15,671 19,187 19,688 Gross debt 19,688 15,671 883 5,929 2,469 Cash and current asset investments 2,469 883 ----------------------- ------------- 14,788 13,258 17,219 Net debt 17,219 14,788 44,519 74,128 73,673 Equity 73,673 44,519 ----------------------- ------------- 25% 15% 19% Net debt ratio 19% 25% - 17,920 21,137 Acquisition adjustment 21,137 - ----------------------- ------------- 25% 19% 25% Net debt ratio - pro forma basis 25% 25% ======================= ============= CRUDE OIL AND NATURAL GAS PRODUCTION MOVEMENTS Oil Gas Gas Total ================================= (mb/d) (mmcf/d) (mboe/d) (mboe/d) BP 3Q 1999 as reported (A) 2,047 5,917 1,020 3,067 Net acquisitions and divestments (B) UK Scott/Telford, others (21) (10) (2) (23) Rest of Europe - - - - - USA Crescendo, Altura, PBU realignment, Western Gas (215) (165) (28) (243) Rest of World Venezuela, others (64) (33) (6) (70) --------------------------------- (300) (208) (36) (336) --------------------------------- BP 3Q 1999 adjusted for divestments and acquisitions (C)(C=A-B) 1,747 5,709 984 2,731 ================================= BP 3Q 2000 as reported (D) 1,902 7,797 1,344 3,246 Less: ARCO contribution 3Q 2000 (E) (240) (2,105) (363) (603) --------------------------------- BP 3Q 2000 adjusted for divestments and acquisitions (F)(F=D-E) 1,662 5,692 981 2,643 ================================= Variance 3Q 1999 vs 3Q 2000 (F-C) (85) (17) (3) (88) ================================= % decrease 5% - 3% ARCO RECONCILIATION Oil Gas Gas Total ================================ (mb/d) (mmcf/d) (mboe/d) (mboe/d) ARCO 3Q 1999 as reported (A) 600 2,220 383 983 Less: divestments (B) UK North Sea 4th Round (20) - - (20) Rest of Europe - - - - - USA Alaska, Long Beach (319) (35) (6) (325) Rest of World Tunisia, Ecuador, Algeria (24) - - (24) -------------------------------- (363) (35) (6) (369) -------------------------------- ARCO 3Q 1999 adjusted for divestments (C) (C= A-B) 237 2,185 377 614 ================================ ARCO 3Q 2000 as reported (D) 240 2,105 363 603 ================================ Variance 3Q 2000 vs 3Q 1999 (D-C) 3 (80) (14) (11) ================================ % increase (decrease) 1% (4%) (2%) REFINING AND MARKETING VOLUME MOVEMENTS Refining Marketing throughputs sales =============================== (mb/d) (mb/d) BP 3Q 1999 as reported (A) 2,506 3,151 Alliance divestment (B) (262) - ------------------------------- BP 3Q 1999 adjusted for divestments (C)(C=A-B) 2,244 3,151 =============================== BP 3Q 2000 as reported (D) 3,113 4,010 Net acquisitions and divestments (E) ARCO (468) (463) Mobil share of European Fuels JV (179) (208) Burmah Castrol - (34) Alliance (193) - ------------------------------- (840) (705) ------------------------------- BP 3Q 2000 adjusted for acquisitions (F)(F=D-E) 2,273 3,305 =============================== Variance 3Q 2000 vs 3Q 1999 (F-C) 29 154 =============================== % increase 1% 5% GAS SALES VOLUME MOVEMENTS Gas Sales ========== (mmcf/d) BP 3Q 1999 as reported (A) 9,048 ========== BP 3Q 2000 as reported (B) 14,860 Less: acquisitions (C) ARCO (2,041) Progas (1,234) ---------- (3,275) ---------- BP 3Q 2000 adjusted for acquisitions (D) (D=B-C) 11,585 ========== Variance 3Q 2000 vs 3Q 1999 (D-A) 2,537 ========== % increase 28% CAPITAL EXPENDITURE MOVEMENTS Third Nine Quarter Months =================== $ million BP 3Q 1999 as reported (A) 1,611 4,919 =================== BP 3Q 2000 as reported (B) 9,587 15,147 Less significant acquisitions: (C) Purchase of Burmah Castrol issued share capital (3,817) (4,686) Purchase of Mobil share of European Fuels JV (1,450) (1,450) Acquisition of a 2.2% interest in PetroChina - (578) Purchase of minority interest in Vastar (1,688) (1,688) ARCO capital expenditure (531) (1,083) Burmah Castrol capital expenditure (17) (17) Additional capital expenditure due to the full consolidation of European Fuels JV (from 1 August 2000) (30) (30) ------------------- (7,533) (9,532) =================== BP 3Q 2000 adjusted for acquisitions (D)(D=B-C) 2,054 5,615 =================== Variance 3Q 2000 vs 3Q 1999 (D-A) 443 696 =================== % increase 27% 14%

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