Final Results - Part 3
BP PLC
12 February 2002
PART 3
BP p.l.c.
Group Results
Fourth Quarter and Full Year 2001
London 12 February 2002
INVESTOR RELATIONS SUPPLEMENT
REPLACEMENT COST OPERATING PROFIT ADJUSTED FOR SPECIAL ITEMS(a) AND ACQUISITION
AMORTIZATION(b) BY SEGMENT
Fourth Third Fourth
Quarter Quarter Quarter Year
2000 2001 2001 2001 2000
======================= =============
$ million
Exploration and Production
1,117 771 682 UK 3,645 4,245
232 188 144 Rest of Europe 748 826
2,076 1,203 840 USA 6,180 6,484
1,275 908 708 Rest of World 3,925 4,155
----------------------- --------------
4,700 3,070 2,374 14,498 15,710
----------------------- --------------
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
92 60 (28) UK 50 454
392 255 271 Rest of Europe 929 842
657 788 203 USA 3,043 2,801
180 186 339 Rest of World 808 461
----------------------- --------------
1,321 1,289 785 4,830 4,558
----------------------- --------------
Chemicals
11 (58) 14 UK (127) (65)
33 95 32 Rest of Europe 226 306
74 59 (25) USA 46 646
22 17 18 Rest of World 97 149
----------------------- --------------
140 113 39 242 1,036
----------------------- --------------
Other businesses and corporate
(125) (104) 105 UK (123) (267)
(47) (9) (43) Rest of Europe (62) -
48 (110) (219) USA (471) (345)
(8) 101 51 Rest of World 173 (10)
----------------------- --------------
(132) (122) (106) (483) (622)
----------------------- --------------
6,212 4,480 3,198 19,608 21,253
======================= ==============
(a) The special items refer to non-recurring charges and credits. The
special items for the fourth quarter comprise additional severance
charges, mainly related to former ARCO employees, an impairment charge
for our partner operated Venezuelan Lake Maracaibo operations,
Castrol, Solvay and Erdolchemie integration costs, Grangemouth
restructuring, and litigation costs. For the year, special items also
include rationalization costs in the European downstream commercial
business.
(b) Acquisition amortization is depreciation and amortization relating to
the fixed asset revaluation adjustment and goodwill consequent upon
the ARCO and Burmah Castrol acquisitions.
ACQUISITION AMORTIZATION BY SEGMENT
Fourth Third Fourth
Quarter Quarter Quarter Year
2000 2001 2001 2001 2000
======================= =============
$ million
Exploration and Production
30 42 41 UK 151 85
373 353 323 USA 1,474 1,058
10 34 33 Rest of World 134 31
----------------------- -------------
413 429 397 1,759 1,174
----------------------- -------------
Refining and Marketing
104 93 99 UK 394 208
81 81 81 USA 324 232
----------------------- -------------
185 174 180 718 440
----------------------- -------------
598 603 577 Total acquisition amortization 2,477 1,614
- - - Minority shareholders interest (MSI) - (79)
----------------------- -------------
Total acquisition amortization
598 603 577 after MSI 2,477 1,535
======================= =============
SPECIAL ITEMS BY SEGMENT (PRE-TAX)
Fourth Third Fourth
Quarter Quarter Quarter Year
2000 2001 2001 2001 2000
======================= =============
$ million
Exploration and Production
5 - 70 UK 70 117
- - - Rest of Europe - -
25 - 77 USA 77 312
19 - 175 Rest of World 175 95
----------------------- -------------
49 - 322 322 524
----------------------- -------------
Gas and Power
- - - UK - -
- - - Rest of Europe - -
- - - USA - -
- - - Rest of World - -
----------------------- -------------
- - - - -
----------------------- -------------
Refining and Marketing
59 18 70 UK 131 73
38 33 44 Rest of Europe 167 89
188 11 63 USA 82 358
59 50 36 Rest of World 107 75
----------------------- -------------
344 112 213 487 595
----------------------- -------------
Chemicals
1 - 89 UK 89 6
18 8 33 Rest of Europe 41 20
18 - (16) USA (16) 65
185 - - Rest of World - 185
----------------------- -------------
222 8 106 114 276
----------------------- -------------
Other businesses and corporate
63 - - UK - 119
- - - Rest of Europe - -
173 - 73 USA 73 369
- - - Rest of World - -
----------------------- -------------
236 - 73 73 488
----------------------- -------------
851 120 714 Total special items before interest 996 1,883
111 2 - Interest - bond redemption charges 62 111
----------------------- -------------
962 122 714 Total 1,058 1,994
======================= =============
ENVIRONMENTAL INDICATORS
Fourth Third Fourth
Quarter Quarter Quarter Year
2000 2001 2001 2001 2000
======================= =============
Average oil realizations(a)($/bbl)
28.55 24.34 18.53 UK 23.55 27.38
28.02 22.38 17.05 USA 21.87 25.94
27.48 22.71 17.70 Rest of World 21.90 26.49
28.08 23.08 17.72 BP Average 22.50 26.63
======================= =============
29.56 25.30 19.41 Brent oil price 24.44 28.44
31.99 26.72 20.31 West Texas Intermediate oil price 25.89 30.38
29.42 24.05 17.79 Alaska North Slope US West Coast 23.18 28.35
======================= =============
Average natural gas realizations ($/mcf)
3.03 2.52 3.15 UK 3.07 2.42
5.15 2.63 2.06 USA 3.99 3.72
2.63 2.27 1.99 Rest of World 2.52 2.25
3.76 2.49 2.28 BP Average 3.30 2.91
======================= =============
5.28 2.93 2.43 Henry Hub gas price(b)($/mmBtu) 4.26 3.90
======================= =============
Global Indicator Refining Margin(c) ($/bbl)
3.63 1.74 1.53 NWE 2.24 3.35
3.78 3.24 1.79 USGC 4.84 3.99
3.54 7.20 2.63 Midwest 6.05 4.03
10.21 8.17 6.25 USWC 8.60 8.77
2.18 0.75 1.20 Singapore 0.90 2.11
4.46 3.83 2.40 BP Average 4.06 4.22
======================= =============
117(f) 114 108(e)Chemicals Indicator Margin(d)($/te) 108(e) 126(f)
======================= =============
(a) Crude oil and natural gas liquids.
(b) Henry Hub First of Month Index.
(c) The Global Indicator Refining Margin (GIM) is the average of seven
regional indicator margins weighted for BP's crude refining capacity
in each region. Each regional indicator margin is based on a single
representative crude with product yields characteristic of the typical
level of upgrading complexity.
(d) The Chemicals Indicator Margin (CIM) is a weighted average of
externally-based product margins. It is based on market data collected
by Chem Systems in their quarterly market analyses, then weighted
based on BP's product portfolio. While it does not cover our entire
portfolio, it includes a broader range of products than our previous
indicator. Amongst the products and businesses covered in the CIM are
olefins and derivatives, aromatics and derivatives, linear alpha
olefins, acetic acid, vinyl acetate monomer and nitriles. Not included
are fabrics and fibres, plastic fabrications, poly alpha olefins,
anhydrides, engineering polymers and carbon fibres, speciality
intermediates, and the remaining parts of the solvents and acetyls
businesses.
(e) Provisional. The data for the fourth quarter is based on two months'
actual and one month of provisional data.
(f) Restated following review of product margins with Chem Systems.
PER SHARE AMOUNTS
Fourth Third Fourth
Quarter Quarter Quarter Year
2000 2001 2001 2001 2000
======================= =============
Ordinary shares outstanding at
22,529 22,442 22,432 period end (million) 22,432 22,529
3,755 3,740 3,739 - ADS equivalent (million) 3,739 3,755
n/a 22,425 22,396 Average ordinary shares (million) 22,436 21,638
n/a 3,738 3,733 - ADS equivalent (million) 3,739 3,606
----------------------- -------------
Replacement cost profit after
2,971 2,345 892 exceptional items ($m) 9,910 11,142
13.20 10.46 3.99 cents/ordinary share 44.16 51.48
0.79 0.63 0.24 dollars/ADS 2.65 3.09
----------------------- -------------
Replacement cost profit before
2,799 2,355 1,056 exceptional items ($m) 9,880 11,214
12.40 10.50 4.73 cents/ordinary share 44.03 51.82
0.74 0.63 0.28 dollars/ADS 2.64 3.11
----------------------- -------------
Pro forma result adjusted
4,090 3,049 2,204 for special items 13,178 14,203
18.25 13.60 9.85 cents/ordinary share 58.73 65.63
1.10 0.81 0.59 dollars/ADS 3.52 3.94
----------------------- -------------
EARNINGS ADJUSTED TO A QUASI CASH BASIS (PRE-EXCEPTIONAL ITEMS)
Fourth Third Fourth
Quarter Quarter Quarter Year
2000 2001 2001 2001 2000
======================= =============
$ million
4,763 3,757 1,907 Replacement cost operating profit 16,135 17,756
Share of profits of joint ventures
(350) (278) (303) and associated undertakings (1,194) (1,853)
Dividends from joint ventures
120 181 116 and associated undertakings 632 1,039
2,228 2,077 2,430 Depreciation and amounts provided(a)8,750 7,449
157 86 144 Exploration expense 480 599
(471) (308) (229) Interest paid (1,282) (1,354)
(1,999) (717) (1,422) Tax paid (4,660) (6,198)
Dividends paid to
(4) (11) (38) minority shareholders (54) (24)
----------------------- --------------
4,444 4,787 2,605 18,807 17,414
----------------------- --------------
19.71 21.35 11.65 cents/ordinary share 83.82 80.48
1.18 1.28 0.70 dollars/ADS 5.03 4.83
======================= ==============
Includes post tax charges for
2.64 0.40 2.54 special items (cents per share) 3.45 6.20
======================= ==============
(a) All periods include acquisition amortization.
RETURN ON AVERAGE CAPITAL EMPLOYED
Fourth Third Fourth
Quarter Quarter Quarter Year
2000 2001 2001 2001 2000
======================= =============
$ million
Replacement cost basis
2,799 2,355 1,056 RC profit before exceptional items 9,880 11,214
611 369 414 Interest 1,670 1,770
17 15 26 Minority shareholders' interest 73 92
----------------------- --------------
3,427 2,739 1,496 11,623 13,076
======================= ==============
94,402 96,906 97,025 Average Capital Employed 95,829 86,214*
15% 11% 6.2% ROACE 12.1% 16%
----------------------- -------------
Pro forma and special items adjustments
598 603 577 Acquisition amortization 2,477 1,614
582 89 571 Special items (post tax) 775 1,343
Average capital employed
20,762 18,865 18,275 acquisition adjustment 19,225 20,755*
ROACE - Pro forma basis
25% 18% 13.4% adjusted for special items 19.4% 23%
----------------------- ------------
Historical cost basis
Historical cost profit (loss)
2,410 1,940 (405) after exceptional items 8,010 11,870
611 369 414 Interest 1,670 1,770
17 15 26 Minority shareholders' interest 73 92
----------------------- --------------
3,038 2,324 35 9,753 13,732
======================= ==============
13% 10% 0.1% ROACE 10.2% 17%
* As the acquisition of ARCO was completed in April 2000 and Burmah Castrol
in July 2000, the average capital employed for 2000 has been calculated
as the average of the four discrete quarters.
NET DEBT RATIO - NET DEBT: NET DEBT + EQUITY
Fourth Third Fourth
Quarter Quarter Quarter Year
2000 2001 2001 2001 2000
======================= =============
$ million
21,190 20,474 21,417 Gross debt 21,417 21,190
1,831 1,957 1,808 Cash and current asset investments 1,808 1,831
----------------------- --------------
19,359 18,517 19,609 Net debt 19,609 19,359
======================= =============
74,001 77,109 74,994 Equity 74,994 74,001
21% 19% 21% Net debt ratio 21% 21%
----------------------- --------------
20,463 18,563 17,986 Acquisition adjustment 17,986 20,463
----------------------- --------------
27% 24% 26% Net debt ratio - pro forma basis 26% 27%
======================= ==============
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