-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, DL9Hn/K6TtPbsEGd35Mo3PXkF4ig3TPEEfMVsoUvQuYZ5tw5bmVHi+K2STFAcSHq WYiRAqobnbq1g2cmRNSyMg== 0001191638-04-000754.txt : 20040427 0001191638-04-000754.hdr.sgml : 20040427 20040427064328 ACCESSION NUMBER: 0001191638-04-000754 CONFORMED SUBMISSION TYPE: 6-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20040427 FILED AS OF DATE: 20040427 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BP PLC CENTRAL INDEX KEY: 0000313807 STANDARD INDUSTRIAL CLASSIFICATION: PETROLEUM REFINING [2911] IRS NUMBER: 000000000 STATE OF INCORPORATION: X0 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 6-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06262 FILM NUMBER: 04755554 BUSINESS ADDRESS: STREET 1: 1 ST JAMES'S SQUARE STREET 2: LONDON CITY: SW1Y 4PD STATE: X0 ZIP: 00000 BUSINESS PHONE: 442074964000 MAIL ADDRESS: STREET 1: BP AMERICA INC STREET 2: 200 E. RANDOLPH DR., MAIL CODE 2502 CITY: CHICAGO STATE: IL ZIP: 60601 FORMER COMPANY: FORMER CONFORMED NAME: BP AMOCO PLC DATE OF NAME CHANGE: 19990104 FORMER COMPANY: FORMER CONFORMED NAME: BRITISH PETROLEUM CO PLC DATE OF NAME CHANGE: 19970226 6-K 1 bp200404276k.txt 1ST QUARTER RESULTS SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 6-K Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 for the period ended 27 April 2004 BP p.l.c. (Translation of registrant's name into English) 1 ST JAMES'S SQUARE, LONDON, SW1Y 4PD, ENGLAND (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. Form 20-F |X| Form 40-F --------------- ---------------- Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes No |X| --------------- ---------------- BP p.l.c. Group Results First Quarter 2004 London 27 April 2004 FOR IMMEDIATE RELEASE - --------------------------------------------------------------------------- RESULT UP 17% - STRONG CASH FLOW ===========================================================================
1Q 2004 1Q 4Q 1Q vs.1Q $ million 2004 2003 2003 2003 ========================== Replacement cost profit for the period(a) 4,170 2,250 3,420 Acquisition amortization(b) 547 637 628 -------------------------- Pro forma result 4,717 2,887 4,048 17% ========================== - - per ordinary share (pence) 11.61 7.68 11.33 - - per ordinary share (cents) 21.36 13.07 18.13 18% - - per ADS (dollars) 1.28 0.78 1.09 ==========================
o BP's first quarter pro forma result was $4,717 million compared with $4,048 million a year ago, an increase of 17%. Replacement cost profit for the quarter was $4,170 million compared with $3,420 million a year ago. o The first quarter result includes a net exceptional and non-operating credit of $1,177 million compared with $285 million in the first quarter of 2003. This includes the exceptional gains from the sale of our investments in PetroChina and Sinopec. o The first quarter trading environment was generally stronger than a year ago, with higher oil realizations, refining margins and petrochemicals margins, slightly reduced gas realizations and lower NGL and marketing margins. o Net cash inflow for the quarter was $3.8 billion compared with an inflow of $3.2 billion a year ago, reflecting higher cash flow from operating activities partly offset by higher acquisition spending. Net cash flow from operating activities was $7.7 billion compared with $6.0 billion a year ago. o The pro forma ratio of net debt to net debt plus equity was 22% at the end of the quarter. o Return on average capital employed for the quarter, on a pro forma basis, was 24%, the same as a year ago. The cash return for the quarter was 32% compared with 37% a year ago. o The quarterly dividend is 6.75 cents per share ($0.405 per ADS) compared with 6.25 cents per share a year ago, an increase of 8%. In sterling terms, the quarterly dividend is 3.807 pence per share compared with 3.947 pence per share a year ago, a decrease of 3.5%. The company repurchased for cancellation 155 million of its own shares during the quarter, at a cost of $1,249 million. BP Group Chief Executive, Lord Browne, said: "This has been another strong performance against the backdrop of a robust trading environment. We are on track against our targets of investing for growth, growing the dividend and utilizing surplus cash to fund a significant level of share buybacks. We are continuing our portfolio management actions in Petrochemicals and today announced that we intend to dispose of our Olefins and Derivatives business." The pro forma result 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 performance against that of its competitors. (a) Replacement cost profit for the period includes the net profit or loss on the sale of fixed assets and businesses or termination of operations. (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 first quarter 2004 and both comparative periods include accelerated depreciation of the revaluation adjustment in respect of the impairment of former ARCO assets. Summary Quarterly Results Exploration and Production's first quarter result decreased 11% compared with a year ago, reflecting lower exceptional gains, higher depreciation, the impact of the changing composition of production resulting from the TNK-BP acquisition and the divestments made in 2003, higher costs due to foreign exchange movements and slightly lower US gas realizations, partly offset by higher production and slightly higher liquids realizations. The Refining and Marketing result increased 13% compared with a year ago, reflecting improved refining margins, particularly in the US, partly offset by lower marketing margins due to pressure from higher crude prices. The Petrochemicals result decreased compared with the prior quarter, as overall improvement in margins was more than offset by exceptional losses associated with the sale of the Specialty Intermediates business and the exit of the Baglan Bay site in the UK. In Gas, Power and Renewables, the result was down slightly compared with a year ago and reflects a lower result from marketing and trading, improved results in global LNG and the solar and renewables business and a similar contribution from the natural gas liquids business. Interest and Other finance expense was $228 million for the quarter compared with $312 million in the previous quarter. The decrease relates primarily to a reduction in net pension finance costs. The pro forma effective tax rate on replacement cost profit was 28%. Capital expenditure, excluding acquisitions, was $3.2 billion for the quarter. Total capital expenditure and acquisitions was $4.5 billion, including $1.35 billion for including TNK's interest in Slavneft within TNK-BP. Disposal proceeds were $2.8 billion. Net debt at the end of the quarter was $17.6 billion. The pro forma ratio of net debt to net debt plus equity was 22%, compared with 26% at the end of 2003. - ---------- The commentaries above and following are based on the pro forma replacement cost results. The financial information for 2003 has been restated to reflect (a) the transfer of natural gas liquids (NGLs) operations from the Exploration and Production segment to Gas, Power and Renewables on 1 January 2004; (b) the adoption by the group of Financial Reporting Standard No. 17 'Retirement Benefits' (FRS 17) with effect from 1 January 2004; and (c) the adoption by the group of Urgent Issues Task Force Abstract No. 38 'Accounting for ESOP Trusts' with effect from 1 January 2004. For further information see Note 1. Exceptional and Non-Operating Items
1Q 2004 ------------------------------ Exceptional Non-Operating $ million Items Items and UPIS ------------------------------ Exploration and Production 211 (189) Refining and Marketing (140) - Petrochemicals (154) - Gas, Power and Renewables - - Other businesses and corporate 1,313 - ------------------------------ 1,230 (189) Taxation 70 66 ------------------------------ 1,300 (123) ==============================
Reconciliation of Reported Results to Pro Forma Results
------ 1Q 2004------ Pro forma Result --------------------- Reported Acq. 1Q 4Q 1Q $ million Earnings(a) Amort.(b) 2004 2003 2003 ------------------------------------------ Exploration and Production 4,242 326 4,568 3,274 5,141 Refining and Marketing 720 221 941 531 833 Petrochemicals (25) - (25) 41 137 Gas, Power and Renewables 198 - 198 86 216 Other businesses and corporate 1,129 - 1,129 465 (166) ------------------------------------------ RC profit before interest and tax 6,264 547 6,811 4,397 6,161 ------------------------------------------ Interest and Other finance expense (228) - (228) (312) (305) Taxation (1,822) - (1,822) (1,157) (1,782) MSI (44) - (44) (41) (26) ------------------------------------------ RC profit 4,170 547 4,717 2,887 4,048 ========================================== Stock holding gains (losses) 648 ----- HC profit 4,818 =====
(a) Replacement cost profit for the period includes the net profit or loss on the sale of fixed assets and businesses or termination of operations. (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 first quarter 2004 and both comparative periods include accelerated depreciation of the revaluation adjustment in respect of the impairment of former ARCO assets. Operating Results and Per Share Amounts
First Fourth First Quarter Quarter Quarter 2004 2003 2003 ================================ Replacement cost profit before interest and tax ($m) 6,264 3,760 5,533 -------------------------------- Results for the period ($m) Pro forma result 4,717 2,887 4,048 Replacement cost profit 4,170 2,250 3,420 Historical cost profit 4,818 2,334 4,219 -------------------------------- Shares in issue at period end (thousand) 21,996,888 22,122,610 22,241,895 - - ADS equivalent (thousand) 3,666,148 3,687,102 3,706,983 Average number of shares outstanding (thousand) 22,087,796 22,103,542 22,326,486 - - ADS equivalent (thousand) 3,681,299 3,683,924 3,721,081 Per ordinary share (cents) Pro forma result 21.36 13.07 18.13 RC profit for the period 18.88 10.18 15.32 HC profit for the period 21.81 10.56 18.90 Per ADS (cents) Pro forma result 128.16 78.42 108.78 RC profit for the period 113.28 61.08 91.92 HC profit for the period 130.86 63.36 113.40 ================================ Exploration and Production 1Q 4Q 1Q $ million 2004 2003 2003 ===================== Replacement cost profit before interest and tax 4,242 2,848 4,718 Acquisition amortization 326 426 423 --------------------- Pro forma replacement cost result before interest and tax 4,568 3,274 5,141 ===================== Results include: Asset write-downs/impairment (123) (308) (49) Environmental charges - - - Restructuring, integration and rationalization costs - (15) (90) Other - - - Unrealized profit in stock (UPIS) (66) (57) (125) --------------------- Total non-operating items and UPIS (189) (380) (264) Exceptional items 211 (49) 433 --------------------- Total non-operating items, UPIS and exceptional items 22 (429) 169 ===================== Exploration expense 136 193 112 Of which: Exploration expenditure written off 67 129 50 ===================== Production(Net of Royalties) Crude oil (mb/d) 2,342 2,248 1,830 Natural gas liquids (mb/d) 191 206 233 Total liquids (mb/d)(a) 2,533 2,454 2,063 Natural gas (mmcf/d) 8,600 8,600 9,017 Total hydrocarbons (mboe/d)(b) 4,015 3,936 3,618 ======================= Average realizations Crude oil ($/bbl) 31.30 28.18 31.07 Natural gas liquids ($/bbl) 23.14 20.15 19.82 Total liquids ($/bbl) 30.48 27.30 29.82 Natural gas ($/mcf) 3.79 3.18 3.87 Total hydrocarbons ($/bbl) 26.48 23.15 26.39 ======================= Average oil marker prices ($/bbl) Brent 32.03 29.43 31.47 West Texas Intermediate 35.30 31.15 34.00 Alaska North Slope US West Coast 34.22 29.43 33.16 ===================== Average natural gas marker prices Henry Hub gas price(c) ($/mmbtu) 5.69 4.58 6.53 UK Gas - National Balancing Point (p/therm) 24.59 27.30 21.28 =======================
(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 replacement cost result before interest and tax for the first quarter was $4,568 million, down 11% from the first quarter of 2003. The primary drivers for the change are lower exceptional gains, higher depreciation, the impact of the changing composition of production resulting from the TNK-BP acquisition and the divestments made in 2003, higher costs due to foreign exchange movements and slightly lower US gas realizations, partly offset by higher production and slightly higher liquids realizations. In Venezuela, the sales agreement for our interest in Desarrollo Zuli Occidental (DZO) and Boqueron has lapsed and we will now retain these fields. We had previously reported an exceptional loss on disposal of $217 million in respect of these assets which has now been reversed. As a result of the lapse of the agreement, an impairment charge of $186 million has been recognized in the quarter, comprising a $123 million non-operating charge and accelerated acquisition amortization of $63 million. The first quarter result also includes a charge of $66 million, reflecting an increase in the provision for Unrealized Profit in Stock (UPIS), which removes the upstream margin from downstream inventories. This compares with a charge of $125 million in the equivalent quarter of last year. Production for the quarter was up from 3,618 mboe/d in the first quarter of 2003 to 4,015 mboe/d. This reflects the impact of the inclusion of TNK-BP from 29 August 2003 and the first quarter of Slavneft, growth in Trinidad, the start up of NaKika in Deepwater Gulf of Mexico and Xikomba in Angola, partly offset by decline in existing profit centers in North America and Europe and divestments made during 2003. Progress continues in our new profit centres as indicated in our strategy presentation on 29 March 2004. During the first quarter, construction of the Holstein and Mad Dog Spars was completed and installation offshore has commenced. In Algeria, commissioning of the In Salah gas facilities is underway. In Azerbaijan, construction on the Azeri project and the BTC pipeline remains on track. In Angola, the Kizomba A Floating Production Storage and Offloading vessel sailed away from the construction yard in Korea enroute to the field location in Block 15. The first quarter saw exploration successes in Egypt with the Raven 1 and Taurt wells in the Nile Delta along with three further discoveries in Angola: Cesio 1 and Chumbo 1 in offshore Block 18 and Bavuca in Block 15. In January we sold 45% of our interest in Kings Peak in Deepwater Gulf of Mexico to Marubeni Oil & Gas (USA) Inc. Additionally, on 9 February 2004 we signed a sale and purchase agreement with Fairborne Energy Ltd to sell a package of non-core assets in Alberta, Canada for $88 million. Customer Facing Segments Refining and Marketing
1Q 4Q 1Q $ million 2004 2003 2003 ===================== Replacement cost profit before interest and tax 720 320 628 Acquisition amortization 221 211 205 --------------------- Pro forma replacement cost result before interest and tax 941 531 833 ===================== Results include: Asset write-downs/impairment - - - Environmental charges - - - Restructuring, integration and rationalization costs - (156) (18) Other - 10 - --------------------- Total non-operating items - (146) (18) Exceptional items (140) (91) (52) --------------------- Total non-operating and exceptional items (140) (237) (70) ===================== Refinery throughputs (mb/d) UK 395 389 377 Rest of Europe 884 873 954 USA 1,265 1,374 1,302 Rest of World 399 378 391 --------------------- Total throughput 2,943 3,014 3,024 ===================== Refinery availability 95.1 94.9 94.2 ===================== Oil sales volumes (mb/d) Refined products UK 294 257 279 Rest of Europe 1,324 1,295 1,318 USA 1,727 1,788 1,751 Rest of World 679 681 645 ----------------------- Total marketing sales 4,024 4,021 3,993 Trading/supply sales 2,917 2,350 2,811 ----------------------- Total refined product sales 6,941 6,371 6,804 Crude oil 5,104 4,504 4,529 ----------------------- Total oil sales 12,045 10,875 11,333 ======================= Global Indicator Refining Margin(a)($/bbl) NWE 2.73 2.21 3.70 USGC 6.92 3.53 6.14 Midwest 4.67 2.89 4.14 USWC 8.06 6.09 6.77 Singapore 3.42 2.20 2.98 BP Average 4.62 3.14 4.52 =====================
(a) 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. Customer Facing Segments Refining and Marketing The pro forma replacement cost result before interest and tax for the first quarter was $941 million. This compares with $833 million for the same period last year, an increase of 13%. The result reflects improved refining margins, particularly in the US, due to strong demand, cold weather and concerns over US gasoline supplies. Marketing margins were lower than those in both the first quarter and the fourth quarter of 2003 due to pressure from higher crude and product prices. Refining throughputs for the quarter were 3% below those in the first quarter of 2003; the decrease was attributable to the disposal of the Bayernoil refinery in Germany in the second quarter of 2003. The quarter's refining availability was 95.1%, enabling strong margin capture. Marketing sales were slightly higher than in the first quarter of 2003. During the quarter BP launched its new product line of gasoline and diesel fuels, BP Ultimate, in Portugal. We also launched a new advertising and communications campaign - Fluid Motion - for the Castrol brand in Europe, along with a new product, Castrol GTX High Mileage, in the UK. During the quarter, BP and the Singapore Petroleum Company Limited (SPC) announced that conditional agreement had been reached for SPC to purchase BP's interests and one-third stake in Singapore Refining Company Private Limited (SRC) for $140 million. Subsequent to this announcement we have been notified that the remaining shareholders would like to exercise their pre-emption rights. This would result in BP's one third share being divided equally between the two remaining shareholders in SRC, namely Caltex Singapore Private Ltd and Singapore Petroleum Company Limited. As a result these two companies would also acquire BP's one-sixth equity interest in Tanker Mooring Services Company Pte Ltd (TMS). In the first quarter, BP and Lembaga Tabung Angkatan Tentera (LTAT) announced that agreement had been reached for LTAT to purchase BP's 70% shareholding in the BP Malaysia Sdn Bhd fuels business. Subject to receiving the necessary regulatory consents, this transaction is also expected to be concluded by 30 June 2004. The quarter's result includes net exceptional losses of $140 million before tax, which principally relate to the disposal of the SRC and the closure of the lubricants operation of the Coryton Refinery, in the UK. Customer Facing Segments Petrochemicals
1Q 4Q 1Q $ million 2004 2003 2003 ===================== Replacement cost profit before interest and tax (25) 41 137 Acquisition amortization - - - --------------------- Pro forma replacement cost result before interest and tax (25) 41 137 ===================== Results include: Provision against fixed asset investments/ asset write-downs/impairment - - - Environmental charges - - - Restructuring, integration and rationalization costs - - - Other - - - --------------------- Total non-operating items - - - Exceptional items (154) 16 7 --------------------- Total non-operating and exceptional items (154) 16 7 ===================== Chemicals Indicator Margin(a)($/te) 122(b) 109 96 ===================== Petrochemicals production (kte) UK 840 832 869 Rest of Europe 2,728 2,790 2,763 USA 2,543 2,466 2,536 Rest of World 1,132 1,065 812 ----------------------- Total production 7,243 7,153 6,980 =======================
(a) The Chemicals Indicator Margin (CIM) is a weighted average of externally based product margins. It is based on market data collected by Nexant in their quarterly market analyses, then weighted based on BP's product portfolio. While it does not cover our entire portfolio, it includes a broad range of products. Among the products and businesses covered in the CIM are the 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 first quarter is based on two months' actuals and one month of provisional data. Petrochemicals' pro forma replacement cost result before interest and tax for the first quarter was a loss of $25 million, down from $41 million in the fourth quarter of 2003. The result was affected by exceptional losses largely associated with the sale of our Specialty Intermediates Business and the exit of the Baglan Bay site in the UK more than offsetting overall margin improvement. The first quarter result was a decrease of $162 million compared with the same quarter last year, due to the exceptional losses and adverse foreign exchange impacts. The margin structures of our European operations continue to be affected by the strength of the Euro and Sterling, as we are unable to achieve offsetting price increases due to dollar-based competition. Petrochemicals production of 7,243 thousand tonnes in the first quarter was up 90 thousand tonnes compared with the previous quarter due to improved reliability and asset utilization. During the first quarter, our portfolio management actions continued. We announced the closure and exit from the Baglan Bay site in the UK. We signed a sale and purchase agreement for our Specialty Intermediates Business (trimellitic anhydride, purified isophthalic acid (PIA) and maleic anhydride) based in Joliet, Illinois in the USA, plus the economic interest in our European PIA business. We also announced the intention to sell our Global Fabrics and Fibres business as well as our speciality business manufacturing and marketing linear and poly alpha olefins based in Feluy, Belgium; Pasadena, USA and Joffre, Canada. Customer Facing Segments Gas, Power and Renewables
1Q 4Q 1Q $ million 2004 2003 2003 ===================== Replacement cost profit before interest and tax 198 86 216 Acquisition amortization - - - --------------------- Pro forma replacement cost result before interest and tax 198 86 216 ===================== Results include: Asset write-downs/impairment - - - Environmental charges - - - Restructuring, integration and rationalization costs - - - Other - - - --------------------- Total non-operating items - - - Exceptional items - (10) - --------------------- Total non-operating and exceptional items - (10) - --------------------- Gas sales volumes (mmcf/d) UK 3,027 2,565 3,215 Rest of Europe 442 511 473 USA 13,618 12,121 11,734 Rest of World 13,902 13,138 11,553 ----------------------- Total gas sales volumes 30,989 28,335 26,975 ======================= NGL sales volumes (mb/d) UK 4 2 5 Rest of Europe 1 - - USA 462 400 282 Rest of World 244 234 251 ----------------------- Total NGL sales volumes 711 636 538 =======================
The pro forma replacement cost result before interest and tax for the first quarter was $198 million compared with $216 million a year ago. The result reflects a lower result in marketing and trading, improved results in global LNG and Solar and a similar contribution from the natural gas liquids business. The marketing and trading result in North America is down compared with the first quarter of 2003, when the business benefited from high margins as a result of the prolonged cold weather in north east and midwest markets. The global LNG business had a strong quarter due to higher margins and continued growth in LNG sales volumes. Group gas sales volumes are up 15% above the same period last year. The first quarter NGL result was flat, with volume increases of 32% offset by lower margins. First quarter results for the solar business were improved over a year ago primarily as a result of the benefits of the 2003 restructuring programme. Other Businesses and Corporate
1Q 4Q 1Q $ million 2004 2003 2003 ===================== Replacement cost profit (loss) before interest and tax 1,129 465 (166) Acquisition amortization - - - --------------------- Pro forma replacement cost result before interest and tax 1,129 465 (166) ===================== Results include: Asset write-downs/impairment - - - Environmental charges - - - Restructuring, integration and rationalization costs - - - Other(a) - 574 - --------------------- Total non-operating items - 574 - Exceptional items 1,313 119 6 --------------------- Total non-operating and exceptional items 1,313 693 6 =====================
(a) For 4Q 2003, Other businesses and corporate other items includes a vacant space provision of $74 million and a credit of $648 million relating to US post-retirement benefit schemes. Other businesses and corporate comprises Finance, the group's aluminium asset, its investments in PetroChina and Sinopec, interest income and costs relating to corporate activities. During the quarter, BP sold its interest in PetroChina for $1.65 billion and its interest in Sinopec for $0.7 billion; these transactions resulted in exceptional gains of $1.3 billion. Dividends
1Q 4Q 1Q 2004 2003 2003 ===================== Dividends per ordinary share cents 6.75 6.75 6.25 pence 3.807 3.674 3.947 Dividends per ADS (cents) 40.5 40.5 37.5 -----------------------
BP today announced a first quarterly dividend for 2004 of 6.75 cents per ordinary share. Holders of ordinary shares will receive 3.807 pence per share and holders of American Depository Receipts (ADRs) $0.405 per ADS share. The dividend is payable on 7 June to shareholders on the register on 14 May. 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 7 June. The second quarter 2004 results and dividend will be announced on 27 July 2004. Outlook BP Group Chief Executive, Lord Browne, concluded: "The world economy appears to have grown at or above trend in the first quarter of 2004. Growth was especially robust in the US and in Asian economies, particularly in China, but Europe, with the exception of the UK, continues to lag. The US and Asia are expected to continue growing at or above trend in 2004 but mainland European growth is expected to remain below trend. "At just over $32 per barrel (dated Brent), crude oil prices during the first quarter were the highest since the fourth quarter of 1990 (immediately prior to the first Gulf War) and $2.60 per barrel higher than in the fourth quarter of 2003. Prices have averaged around $32.91 so far in April (through close 23 April 2004). Strong oil demand growth, low inventories, a tight US gasoline market and concern about possible supply disruptions have kept crude prices supported, notwithstanding the continuing high levels of OPEC production. The same forces should underpin crude prices during the second quarter but a rebuilding of inventories closer to seasonal norms looks likely if OPEC does not make production cuts that more closely match the seasonal drop in oil product demand. "US natural gas prices traded in a relatively narrow range for most of the first quarter, averaging $5.69/mmbtu (Henry Hub first of the month index). This represented an increase of around $1.10/mmbtu versus the fourth quarter of 2003, due to seasonal weather effects, lingering supply concerns and the strength in oil prices. Spot gas prices traded between residual fuel oil and distillate parity throughout the whole period. Working gas in storage currently stands well above last year's levels and close to the five-year average. With storage at adequate levels and with growth in supply and demand looking more balanced than in recent years, we expect that gas prices will remain strongly influenced by movements in oil prices for the remainder of 2004. "Refining margins in the first quarter strengthened relative to the fourth quarter 2003 in the face of declining product inventories, strong global oil demand growth and cold US weather. Margin gains were most pronounced in the US, where low gasoline inventories and specification changes raised concerns about supply during the coming driving season. Margins have begun the second quarter strongly, with low gasoline inventories and demand strength. Marketing margins are expected to reflect seasonal improvements although they continue to be impacted by high crude oil and product prices. "Petrochemical margins in the first quarter improved versus the prior period. We continue to remain cautious about the overall market although we expect demand to improve gradually during 2004 provided the global economic recovery is sustained. "Capital expenditure, excluding acquisitions, for the quarter was $3.2 billion, and is projected to be approximately $13.5 billion for the year, subject to developments in the US dollar exchange rate. The share buyback programme is continuing." ---------------------------------------------------------------------- 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, economic growth, growth in oil demand, impact of foreign exchange exposure, inventory levels, the US gasoline market and supply concerns, margins, prices, petrochemicals demand and share buybacks. 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; 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 2003 and our Annual Report on Form 20-F filed with the US Securities and Exchange Commission.. ---------------------------------------------------------------------- BP p.l.c. and Subsidiaries Summarized Group Results
First Fourth First Quarter Quarter Quarter 2004 2003 2003 ======================= $ million Exploration and Production 4,242 2,848 4,718 Refining and Marketing 720 320 628 Petrochemicals (25) 41 137 Gas, Power and Renewables 198 86 216 Other businesses and corporate 1,129 465 (166) ----------------------- Replacement cost profit before interest and tax 6,264 3,760 5,533 Stock holding gains (losses) (Note 5) 648 84 799 ----------------------- Historical cost profit before interest and tax 6,912 3,844 6,332 Interest expense (Note 6) 152 160 176 Other finance expense (Note 7) 76 152 129 ----------------------- Profit before taxation 6,684 3,532 6,027 Taxation (Note 8) 1,822 1,157 1,782 ----------------------- Profit after taxation 4,862 2,375 4,245 Minority shareholders' interest 44 41 26 ----------------------- Profit for the period 4,818 2,334 4,219 ======================= Distribution to shareholders 1,483 1,495 1,386 ----------------------- Earnings per ordinary share - cents Basic 21.81 10.56 18.90 Diluted 21.34 10.32 18.84 ======================= Replacement Cost Results Historical cost profit for the period 4,818 2,334 4,219 Stock holding (gains) losses net of minority shareholders' interest (648) (84) (799) ----------------------- Replacement cost profit for the period 4,170 2,250 3,420 ----------------------- Earnings per ordinary share - cents On replacement cost profit for the period 18.88 10.18 15.32 ======================= Summarized Group Balance Sheet 31 March 31 December 2004 2003 ===================== $ million Fixed assets Intangible assets 13,386 13,642 Tangible assets 91,800 91,911 Investments 18,492 17,458 --------------------- 123,678 123,011 --------------------- Current assets Stocks 11,298 11,617 Debtors 35,099 33,902 Investments 328 185 Cash at bank and in hand 2,006 1,947 --------------------- 48,731 47,651 Creditors - amounts falling due within one year Finance debt 6,997 9,456 Other creditors 43,018 41,128 --------------------- Net current assets (liabilities) (1,284) (2,933) --------------------- Total assets less current liabilities 122,394 120,078 Creditors - amounts falling due after more than one year Finance debt 12,940 12,869 Other creditors 5,834 6,090 Provisions for liabilities and charges Deferred taxation 14,578 14,371 Other provisions 8,766 8,815 --------------------- Net assets excluding pensions and other post-retirement benefit balances 80,276 77,933 Defined benefit pension plan surplus 1,258 1,021 Defined benefit pension plan and other post-retirement benefit plan deficits (7,524) (7,510) --------------------- Net assets 74,010 71,444 Minority shareholders' interest - equity 1,181 1,125 --------------------- BP shareholders' interest 72,829 70,319 ===================== Movement in BP shareholders' interest: $ million At 31 December 2003 75,938 Prior year adjustment - change in accounting policy (see Note 1) (5,619) ------ As restated 70,319 Profit for the period 4,818 Distribution to shareholders (1,483) Currency translation differences (net of tax) 238 Issue of ordinary share capital for employee share schemes 126 (Purchase) release of shares by ESOP trusts 60 Repurchase of ordinary share capital (1,249) ------ At 31 March 2004 72,829 ======
Summarized Group Cash Flow Statement First Fourth First Quarter Quarter Quarter 2004 2003 2003 ======================= $ million Net cash inflow from operating activities (a) 7,674 3,500 5,961 ----------------------- Dividends from joint ventures 178 51 13 ----------------------- Dividends from associated undertakings 31 120 55 ----------------------- Servicing of finance and returns on investments Interest received 41 51 31 Interest paid (165) (190) (207) Dividends received 12 66 6 Dividends paid to minority shareholders (2) (3) (2) ----------------------- Net cash outflow from servicing of finance and returns on investments (114) (76) (172) ----------------------- Taxation UK corporation tax (322) (329) (312) Overseas tax (258) (1,187) (320) ----------------------- Tax paid (580) (1,516) (632) ----------------------- Capital expenditure and financial investment Payments for fixed assets (2,941) (3,683) (2,871) Proceeds from the sale of fixed assets 2,839 1,410 2,317 ----------------------- Net cash outflow for capital expenditure and financial investment (102) (2,273) (554) ----------------------- Acquisitions and disposals Acquisitions, net of cash acquired - (33) - Proceeds from the sale of businesses - - 160 Net investment in TNK-BP joint venture (1,273) 274 - Net investment in other joint ventures (92) (162) (14) Investments in associated undertakings (433) (227) (186) ----------------------- Net cash outflow for acquisitions and disposals (1,798) (148) (40) ----------------------- Equity dividends paid (1,492) (1,438) (1,397) ----------------------- Net cash inflow (outflow) 3,797 (1,780) 3,234 ======================= Financing (b) 3,598 (2,354) 3,599 Management of liquid resources 138 (223) 13 Increase (decrease) in cash 61 797 (378) ----------------------- 3,797 (1,780) 3,234 ======================= Analysis of Cash Flow First Fourth First Quarter Quarter Quarter 2004 2003 2003 ======================= $ million (a) Reconciliation of historical cost profit before interest and tax to net cash inflow from operating activities Historical cost profit before interest and tax 6,912 3,844 6,332 Depreciation and amounts provided 2,814 3,093 2,709 Exploration expenditure written off 67 129 50 Net operating charge for pensions and other post-retirement benefits, less contributions (23) (2,190) (243) Share of profits of joint ventures and associated undertakings (641) (494) (304) Interest and other income (64) (121) (48) (Profit) loss on sale of fixed assets and businesses (1,230) 15 (394) Charge for provisions 67 238 29 Utilization of provisions (155) (204) (116) Decrease (increase) in stocks 247 (362) 376 (Increase) decrease in debtors (1,586) 375 (6,645) Increase (decrease) in creditors 1,266 (823) 4,215 ----------------------- Net cash inflow from operating activities 7,674 3,500 5,961 ======================= (b) Financing Long-term borrowing (628) (1,666) (1,015) Repayments of long-term borrowing 836 776 403 Short-term borrowing (156) (1,738) (626) Repayments of short-term borrowing 2,408 278 3,899 ----------------------- 2,460 (2,350) 2,661 Issue of ordinary share capital for employee share schemes (126) (61) (67) Purchase of shares by ESOP trusts 15 57 6 Repurchase of ordinary share capital 1,249 - 999 ----------------------- Net cash outflow (inflow) from financing 3,598 (2,354) 3,599 ======================= Adjusted Operating Cash Flow Net cash inflow from operating activities (a) 7,674 3,500 5,961 Dividends received from joint ventures 178 51 13 Dividends received from associated undertakings 31 120 55 Net cash outflow from servicing of finance and returns on investments (114) (76) (172) ----------------------- Adjusted operating cash flow (pre-tax) 7,769 3,595 5,857 Tax paid on operations* (650) (1,600) (578) ----------------------- Adjusted operating cash flow (post-tax) 7,119 1,995 5,279 ----------------------- * Components of tax payments Tax paid on operations (650) (1,600) (578) Tax refunded/paid) on exceptional items 70 84 (54) ----------------------- Total tax paid (580) (1,516) (632) =======================
(a) Includes pre-tax discretionary pension funding of $85 million in 1Q 2004, $1,586 million in 4Q 2003 and $308 million in 1Q 2003. On a post-tax basis, these amounts are $60 million, $1,031 million and $197 million respectively. Capital Expenditure and Acquisitions
First Fourth First Quarter Quarter Quarter 2004 2003 2003 ======================= $ million By business Exploration and Production UK 153 189 196 Rest of Europe 48 75 51 USA 932 1,140 963 Rest of World(a) 2,690 1,191 908 ----------------------- 3,823 2,595 2,118 ----------------------- Refining and Marketing UK 77 249 73 Rest of Europe 92 446 104 USA 258 623 336 Rest of World 37 181 24 ----------------------- 464 1,499 537 ----------------------- Petrochemicals UK 20 35 - Rest of Europe 38 69 31 USA 47 130 44 Rest of World 61 65 21 ----------------------- 166 299 96 ----------------------- Gas, Power and Renewables UK 1 21 8 Rest of Europe 2 46 15 USA 11 49 41 Rest of World 47 27 23 ----------------------- 61 143 87 ----------------------- Other businesses and corporate UK 2 29 18 Rest of Europe - 1 1 USA 9 43 10 Rest of World - 1 1 ----------------------- 11 74 30 ----------------------- 4,525 4,610 2,868 ======================= By geographical area UK 253 523 295 Rest of Europe 180 637 202 USA 1,257 1,985 1,394 Rest of World(a) 2,835 1,465 977 ----------------------- 4,525 4,610 2,868 ======================= (a) First quarter 2004 included the investment in TNK's interest in Slavneft within TNK-BP. Exchange rates US dollar/sterling average rate for the period 1.84 1.70 1.60 US dollar/sterling period-end rate 1.83 1.78 1.57 US dollar/euro average rate for the period 1.25 1.19 1.07 US dollar/euro period-end rate 1.22 1.25 1.08 Analysis of Replacement Cost Profit Before Interest and Tax First Fourth First Quarter Quarter Quarter 2004 2003 2003 ======================= $ million By business Exploration and Production UK 823 654 1,078 Rest of Europe 163 154 195 USA 1,494 716 1,658 Rest of World 1,762 1,324 1,787 ----------------------- 4,242 2,848 4,718 ----------------------- Refining and Marketing UK (189) (152) (43) Rest of Europe 289 158 361 USA 409 174 145 Rest of World 211 140 165 ----------------------- 720 320 628 ----------------------- Petrochemicals UK (156) (65) (90) Rest of Europe 154 34 117 USA (109) 6 54 Rest of World 86 66 56 ----------------------- (25) 41 137 ----------------------- Gas, Power and Renewables UK 12 40 4 Rest of Europe (11) (11) (9) USA 79 5 57 Rest of World 118 52 164 ----------------------- 198 86 216 ----------------------- Other businesses and corporate UK (163) 324 (93) Rest of Europe (6) (42) (8) USA (30) (23) (81) Rest of World 1,328 206 16 ----------------------- 1,129 465 (166) ----------------------- 6,264 3,760 5,533 ======================= By geographical area UK 327 801 856 Rest of Europe 589 293 656 USA 1,843 878 1,833 Rest of World 3,505 1,788 2,188 ----------------------- 6,264 3,760 5,533 ======================= Included above: Share of profits of joint ventures 485 402 117 Share of profits of associated undertakings 141 93 180 ----------------------- 626 495 297 ======================= Pro Forma Result: Replacement Cost Profit Before Interest and Tax Adjusted for Acquisition Amortization First Fourth First Quarter Quarter Quarter 2004 2003 2003 ======================= $ million By business Exploration and Production UK 858 689 1,111 Rest of Europe 163 154 195 USA 1,708 1,091 1,917 Rest of World 1,839 1,340 1,918 ----------------------- 4,568 3,274 5,141 ----------------------- Refining and Marketing UK (63) (36) 67 Rest of Europe 289 158 361 USA 504 269 240 Rest of World 211 140 165 ----------------------- 941 531 833 ----------------------- Petrochemicals UK (156) (65) (90) Rest of Europe 154 34 117 USA (109) 6 54 Rest of World 86 66 56 ----------------------- (25) 41 137 ----------------------- Gas, Power and Renewables UK 12 40 4 Rest of Europe (11) (11) (9) USA 79 5 57 Rest of World 118 52 164 ----------------------- 198 86 216 ----------------------- Other businesses and corporate UK (163) 324 (93) Rest of Europe (6) (42) (8) USA (30) (23) (81) Rest of World 1,328 206 16 ----------------------- 1,129 465 (166) ----------------------- 6,811 4,397 6,161 ----------------------- By geographical area UK 488 952 999 Rest of Europe 589 293 656 USA 2,152 1,348 2,187 Rest of World 3,582 1,804 2,319 ----------------------- 6,811 4,397 6,161 ======================= Analysis of Exceptional Items First Fourth First Quarter Quarter Quarter 2004 2003 2003 ======================= $ million Exploration and Production UK (1) 11 1 Rest of Europe - 1 - USA (19) 20 (160) Rest of World 231 (81) 592 ----------------------- 211 (49) 433 ----------------------- Refining and Marketing UK (36) (12) (15) Rest of Europe (17) (47) (40) USA (5) (32) 4 Rest of World (82) - (1) ----------------------- (140) (91) (52) ----------------------- Petrochemicals UK (7) (1) 3 Rest of Europe (19) (10) (1) USA (126) (5) 4 Rest of World (2) 32 1 ----------------------- (154) 16 7 ----------------------- Gas, Power and Renewables UK - - - Rest of Europe - - - USA - (10) - Rest of World - - - ----------------------- - (10) - ----------------------- Other businesses and corporate UK (1) 27 - Rest of Europe - - (1) USA - (45) 7 Rest of World 1,314 137 - ----------------------- 1,313 119 6 Profit (loss) on sale of fixed assets and businesses or termination of operations 1,230 (15) 394 Taxation credit (charge) 70 84 (54) ----------------------- Exceptional items after taxation 1,300 69 340 ======================= Identified Non-operating Items and UPIS First Fourth First Quarter Quarter Quarter 2004 2003 2003 ======================= $ million By business Exploration and Production UK - (144) (53) Rest of Europe - - - USA(a) (66) (236) (206) Rest of World (123) - (5) ----------------------- (189) (380) (264) ----------------------- Refining and Marketing UK - - - Rest of Europe - (146) (18) USA - - - Rest of World - - - ----------------------- - (146) (18) ----------------------- Petrochemicals UK - - - Rest of Europe - - - USA - - - Rest of World - - - ----------------------- - - - ----------------------- Gas, Power and Renewables UK - - - Rest of Europe - - - USA - - - Rest of World - - - ----------------------- - - - ----------------------- Other businesses and corporate(b) UK - (74) - Rest of Europe - - - USA - 648 - Rest of World - - - ----------------------- - 574 - ----------------------- Sub-total (189) 48 (282) Interest - - - ----------------------- Total before taxation (189) 48 (282) Taxation credit (charge) 66 134 227 ----------------------- Total after taxation (123) 182 (55) =======================
(a) Includes increases in the provision for Unrealized Profit in Stock (UPIS) of $66 million in 1Q 2004, $57 million in 4Q 2003 and $125 million in 1Q 2003, which removes the upstream margin from downstream inventories. (b) For 4Q 2003 Other businesses and corporate includes a vacant space provision of $74 million and a credit of $648 million relating to US post-retirement benefit schemes. Acquisition Amortization by Business
First Fourth First Quarter Quarter Quarter 2004 2003 2003 ======================= $ million Exploration and Production UK 35 35 33 USA 214 375 259 Rest of World 77 16 131 ----------------------- 326 426 423 ----------------------- Refining and Marketing UK 126 116 110 USA 95 95 95 ----------------------- 221 211 205 ----------------------- Total acquisition amortization 547 637 628 ======================= Production and Realizations First Fourth First Quarter Quarter Quarter 2004 2003 2003 ======================= Production Crude oil (mb/d) (net of royalties) UK 344 339 442 Rest of Europe 73 74 90 USA 564 570 606 Rest of World 1,361 1,265 692 --------------------- Total crude oil production 2,342 2,248 1,830 ===================== Natural gas liquids (mb/d) (net of royalties) UK 20 21 29 Rest of Europe 5 5 5 USA 137 147 167 Rest of World 29 33 32 --------------------- Total natural gas liquids production 191 206 233 ===================== Liquids (a)(mb/d) (net of royalties) UK 364 360 471 Rest of Europe 78 79 95 USA 701 717 773 Rest of World 1,390 1,298 724 --------------------- Total liquids production 2,533 2,454 2,063 ===================== Natural gas (b) (mmcf/d) (net of royalties) UK 1,355 1,318 1,798 Rest of Europe 142 143 131 USA 2,869 2,933 3,437 Rest of World 4,234 4,206 3,651 --------------------- Total natural gas production 8,600 8,600 9,017 ===================== Average realizations Crude oil ($/bbl) UK 29.36 28.18 31.16 USA 32.69 28.49 31.74 Rest of World 30.80 27.56 29.91 BP Average 31.30 28.18 31.07 ===================== Natural gas liquids ($/bbl) UK 25.70 20.06 23.28 USA 22.25 19.11 18.26 Rest of World 24.61 24.23 23.05 BP Average 23.14 20.15 19.82 ===================== Liquids (a) ($/bbl) UK 29.16 27.71 30.67 USA 31.08 26.92 29.36 Rest of World 30.42 27.33 29.48 BP Average 30.48 27.30 29.82 ===================== Natural gas ($/mcf) UK 4.70 3.87 3.32 USA 4.72 3.85 5.27 Rest of World 2.67 2.35 2.70 BP Average 3.79 3.18 3.87 =====================
(a) Crude oil and natural gas liquids. (b) Natural gas is converted to oil equivalent at 5.8 billion cubic feet = 1 million barrels. Reconciliation of Historical Cost Profit (Loss) to Pro Forma Result
Reported Acquisition Pro forma $ million earnings amortization result ====================================== 4Q 2003 Exploration and Production 2,848 426 3,274 Refining and Marketing 320 211 531 Petrochemicals 41 - 41 Gas, Power and Renewables 86 - 86 Other businesses and corporate 465 - 465 -------------------------------------- RC profit before interest and tax 3,760 637 4,397 -------------------------------------- Interest and other finance expense (312) - (312) Taxation (1,157) - (1,157) MSI (41) - (41) -------------------------------------- RC profit 2,250 637 2,887 ================= Stock holding gains (losses) 84 ----- HC profit 2,334 ===== 1Q 2003 Exploration and Production 4,718 423 5,141 Refining and Marketing 628 205 833 Petrochemicals 137 - 137 Gas, Power and Renewables 216 - 216 Other businesses and corporate (166) - (166) -------------------------------------- RC profit before interest and tax 5,533 628 6,161 -------------------------------------- Interest and other finance expense (305) - (305) Taxation (1,782) - (1,782) MSI (26) - (26) -------------------------------------- RC profit 3,420 628 4,048 ================= Stock holding gains (losses) 799 ----- HC profit 4,219 ===== Return on Average Capital Employed First Fourth First Quarter Quarter Quarter 2004 2003 2003 ======================= $ million Replacement cost basis RC profit for the period (a) 4,170 2,250 3,420 Interest (b) 64 73 99 Minority shareholders' interest 44 41 26 ----------------------- Adjusted RC profit 4,278 2,364 3,545 ======================= Average capital employed 93,858 90,938 85,787 ROACE - replacement cost basis 18.2% 10.4% 16.5% ----------------------- Pro forma basis Adjusted RC profit (a) 4,278 2,364 3,545 Acquisition amortization 547 637 628 Average capital employed 93,858 90,938 85,787 Average capital employed acquisition adjustment 13,146 13,556 15,940 ----------------------- Average capital employed (pro forma basis) 80,712 77,382 69,847 ROACE - Pro forma basis 23.9% 15.5% 23.9% ----------------------- Historical cost basis Profit for the period (a) 4,818 2,334 4,219 Interest (b) 64 73 99 Minority shareholders' interest 44 41 26 ----------------------- Adjusted historical cost profit 4,926 2,448 4,344 ======================= Average capital employed 93,858 90,938 85,787 ROACE - historical cost basis 21.0% 10.8% 20.3%
(a) 1Q 2004 includes $1,300 million in respect of exceptional items and $(123) million in respect of non-operating items and UPIS. 4Q 2003 includes $69 million in respect of exceptional items and $182 million in respect of non-operating items and UPIS. 1Q 2003 includes $340 million in respect of exceptional items and $(55) million in respect of non-operating items and UPIS. (b) Excludes interest on joint venture and associated undertakings' debt and is on a post-tax basis using a deemed tax rate equal to the US statutory tax rate. Net Debt Ratio - Net Debt: Net Debt + Equity
First Fourth First Quarter Quarter Quarter 2004 2003 2003 ======================= $ million Gross debt 19,937 22,325 19,042 Cash and current asset investments 2,334 2,132 1,379 ----------------------- Net debt 17,603 20,193 17,663 ======================= Equity 74,010 71,444 66,236 Net debt ratio 19% 22% 21% ----------------------- Acquisition adjustment 12,930 13,362 15,208 ----------------------- Net debt ratio - pro forma basis 22% 26% 26% Pre-Tax Cash Returns First Fourth First Quarter Quarter Quarter 2004 2003 2003 ======================= $ million Replacement cost profit before interest and tax 6,264 3,760 5,533 Exceptional items (1,230) 15 (394) ----------------------- Replacement cost operating profit 5,034 3,775 5,139 Acquisition amortization 547 637 628 ----------------------- Pro forma replacement cost operating profit 5,581 4,412 5,767 Non-cash non-operating items 123 308 49 Pro forma DD&A, adjusted for non-cash non-operating items 2,144 2,148 2,032 ----------------------- Cash returns numerator 7,848 6,868 7,848 ======================= Capital employed 93,947 93,769 85,278 Liabilities for current and deferred taxation 17,207 16,068 15,314 ----------------------- Operating capital employed 111,154 109,837 100,592 Acquisition adjustment (12,930)(13,362)(15,208) ----------------------- Cash returns denominator 98,224 96,475 85,384 ======================= Average cash returns denominator 97,350 93,490 84,609 ======================= Cash return 32% 29% 37%
Notes 1. Restatement of comparative information Comparative information for 2003 has been restated to reflect the changes described below. (a) Transfer of natural gas liquids activities With effect from 1 January 2004 natural gas liquids (NGLs) activities have been transferred from the Exploration and Production segment to Gas, Power and Renewables. (b) New accounting standard for pensions and other post-retirement benefits With effect from 1 January 2004 BP has adopted Financial Reporting Standard No. 17 'Retirement Benefits' (FRS 17). FRS 17 requires that financial statements reflect at fair value the assets and liabilities arising from an employer's retirement benefit obligations and any related funding. The operating costs of providing retirement benefits are recognized in the period in which they are earned together with any related finance costs and changes in the value of related assets and liabilities. This contrasts with Statement of Standard Accounting Practice No. 24 'Accounting for Pension Costs', which requires the cost of providing pensions to be recognized on a systematic and rational basis over the period during which the employer benefits from the employee's services. The difference between the amount charged in the income statement and the amount paid as contributions into the pension fund is shown as a prepayment or provision on the balance sheet. (c) Accounting for Employee Share Ownership Plans With effect from 1 January 2004 BP has adopted Urgent Issues Task Force Abstract No. 38 'Accounting for ESOP Trusts'. This abstract requires that BP shares held by the group for the purposes of Employee Share Ownership Plans (ESOPs) are deducted from equity on the balance sheet. Such shares were previously classified as fixed asset investments.
Balance sheet at 31 December 2003 Restated Reported ==================== $ million Fixed assets Intangible assets 13,642 13,642 Tangible assets 91,911 91,911 Investments 17,458 17,554 -------------------- 123,011 123,107 -------------------- Current assets 47,651 54,465 Creditors - amounts falling due within one year 50,584 50,584 ------------------- Net current assets (liabilities) (2,933) 3,881 ------------------- Total assets less current liabilities 120,078 126,988 Creditors - amounts falling due after more than one year 18,959 18,959 Provisions for liabilities and charges Deferred taxation 14,371 15,273 Other provisions 8,815 15,693 ------------------- Net assets excluding pension and other post-retirement benefit balances 77,933 77,063 Defined benefit pension plan surplus 1,021 - Defined benefit pension plan and other post-retirement benefit plan deficits (7,510) - ------------------- Net assets 71,444 77,063 Minority shareholders' interest 1,125 1,125 ------------------- BP shareholders' interest 70,319 75,938 ===================
Notes Income statements Restated Reported Fourth First Fourth First Quarter Quarter Quarter Quarter 2003 2003 2003 2003 ================ ================ $ million Exploration and Production 2,848 4,718 2,889 4,759 Refining and Marketing 320 628 274 579 Petrochemicals 41 137 51 146 Gas, Power and Renewables 86 216 67 194 Other businesses and corporate 465 (166) (176) (159) ----------------------------------- Replacement cost profit before interest and tax 3,760 5,533 3,105 5,519 Stock holding gains (losses) 84 799 84 799 ----------------------------------- Historical cost profit before interest and tax 3,844 6,332 3,189 6,318 Interest expense 160 176 227 220 Other finance expense 152 129 - - ----------------------------------- Profit before taxation 3,532 6,027 2,962 6,098 Taxation 1,157 1,782 949 1,805 ----------------------------------- Profit after taxation 2,375 4,245 2,013 4,293 Minority shareholders' interest 41 26 41 26 ----------------------------------- Profit for the period 2,334 4,219 1,972 4,267 =================================== Distribution to shareholders 1,495 1,386 1,495 1,386 ----------------------------------- Earnings per ordinary share - cents Basic 10.56 18.90 8.93 19.11 Diluted 10.32 18.84 8.69 19.05 ===================================
Notes 2. Turnover First Fourth First Quarter Quarter Quarter 2004 2003 2003 ======================= $ million By business Exploration and Production 8,166 7,450 8,878 Refining and Marketing 41,694 36,378 39,678 Petrochemicals 4,510 4,336 3,938 Gas, Power and Renewables 20,975 16,701 18,080 Other businesses and corporate 121 137 111 ------------------------ 75,466 65,002 70,685 Less: sales between businesses 7,864 7,138 8,654 ------------------------ Group excluding JVs 67,602 57,864 62,031 Share of sales by joint ventures 1,878 1,798 398 ------------------------ 69,480 59,662 62,429 ======================== By geographical area Group excluding JVs UK 17,296 14,117 15,132 Rest of Europe 12,041 12,288 13,317 USA 31,803 26,347 29,341 Rest of World 15,817 13,894 13,736 ------------------------ 76,957 66,646 71,526 Less: sales between areas 9,355 8,782 9,495 ------------------------ 67,602 57,864 62,031 ------------------------
3. 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 4. Operating profits are after charging:
First Fourth First Quarter Quarter Quarter 2004 2003 2003 ======================= $ million Exploration expense UK 2 1 3 Rest of Europe 2 5 4 USA 97 60 37 Rest of World 35 127 68 ----------------------- 136 193 112 ======================= Production taxes (a) UK petroleum revenue tax 126 44 133 Overseas production taxes 399 377 371 ----------------------- 525 421 504 ======================= (a) Production taxes are charged against Exploration and Production's operating profit and are not included in the charge for taxation in Note 8. 5. Stock holding gains (losses) Exploration and Production 8 - 6 Refining and Marketing 529 16 620 Petrochemicals 121 10 146 Gas, Power and Renewables (10) 58 27 ----------------------- 648 84 799 ======================= Notes 6. Interest expense First Fourth First Quarter Quarter Quarter 2004 2003 2003 ======================= $ million Group interest payable 149 172 187 Capitalized (50) (60) (34) ----------------------- 99 112 153 Joint ventures 41 36 13 Associated undertakings 12 12 10 ----------------------- 152 160 176 ======================= 7. Other finance expense Interest on pension and other post-retirement benefit plan liabilities 500 460 460 Expected return on pension and other post-retirement benefit plan assets (498) (375) (375) ----------------------- Interest net of expected return on plan assets 2 85 85 Unwinding of discount on provisions 48 42 44 Unwinding of discount on deferred consideration for acquisition of investment in TNK-BP 26 25 - ----------------------- 76 152 129 ======================= 8. Charge for taxation Current 1,706 404 1,581 Deferred 116 753 201 ----------------------- 1,822 1,157 1,782 ======================= UK 345 356 451 Overseas 1,477 801 1,331 ----------------------- 1,822 1,157 1,782 ======================= Notes 9. Analysis of changes in net debt First Fourth First Quarter Quarter Quarter 2004 2003 2003 ======================= $ million Opening balance Finance debt 22,325 19,970 22,008 Less: Cash 1,947 1,091 1,520 Current asset investments 185 404 215 ----------------------- Opening net debt 20,193 18,475 20,273 ----------------------- Closing balance Finance debt 19,937 22,325 19,042 Less: Cash 2,006 1,947 1,151 Current asset investments 328 185 228 ----------------------- Closing net debt 17,603 20,193 17,663 ----------------------- Decrease (increase) in net debt 2,590 (1,718) 2,610 ======================= Movement in cash/bank overdrafts 61 797 (378) Increase (decrease) in current asset investments 138 (223) 13 Net cash outflow (inflow) from financing (excluding share capital) 2,460 (2,350) 2,661 Exchange of Exchangeable Bonds for Lukoil American Depositary Shares - - 420 Other movements 14 5 64 Debt acquired - (3) - ----------------------- Movement in net debt before exchange effects 2,673 (1,774) 2,780 Exchange adjustments (83) 56 (170) ----------------------- Decrease (increase) in net debt 2,590 (1,718) 2,610 =======================
Notes 10. TNK-BP Operational and Financial Information First Fourth Quarter Quarter 2004 2003 ======= ======= Production (Net of royalties) (BP share) Crude oil (mb/d) 766 669 Natural gas (mmcf/d) 382 296 Total hydrocarbons (mboe/d) (a) 832 720 ======= ======= $ million Income statement (BP share) Replacement cost profit before interest and tax 374 354 Stock holding gains (losses) - - Interest expense + (30) (24) Taxation (115) (53) Minority shareholders' interest (10) 1 ------- ------- Net Income 219 278 ======= ======= + Excludes unwinding of discount on deferred consideration 26 25 ======= ======= Balance Sheet 31 March 31 December 2004 2003 ======== =========== Fixed assets - investments Gross assets 12,011 10,339 Gross liabilities (3,509) (3,290) ------- ------- 8,502 7,049 ======= ======= Deferred consideration Due within one year 1,236 1,227 Due after more than one year 2,369 2,352 ------- ------- 3,605 3,579 ======= ======= First Fourth Quarter Quarter 2004 2003 ======= ======= Cash Flow Additional investment in TNK-BP joint venture (1,416) (23) Dividends related to period prior to acquisition 143 297 ------- ------- Net investment in TNK-BP joint venture (1,273) 274 ======= ======= Dividends received 119 - ======= =======
(a) Natural gas is converted to oil equivalent at 5.8 billion cubic feet = 1 million barrels. BP's share of the result of the TNK-BP joint venture has been included within Exploration and Production with effect from 29 August 2003. TNK-BP operational and financial information for the first quarter has been estimated and includes an adjustment in respect of the period 29 August to 31 December 2003 amounting to charges of $11 million and $29 million respectively in replacement cost profit before interest and tax and net income. TNK-BP's 2003 audited financial statements are expected to be finalized in May 2004. Any further adjustment in respect of 2003 will be reflected in BP's second quarter results. Notes 11. Statutory accounts The financial information shown in this publication is unaudited and does not constitute statutory accounts. The 2003 Annual Report and Accounts have been delivered to the UK Registrar of Companies; the report of the auditors on those accounts was unqualified. Contacts London New York -------------- -------------- Press Office Roddy Kennedy Ian Stewart +44 (0)20 7496 4624 +1 212 451 8026 Investor Relations Fergus MacLeod Terry LaMore +44 (0)20 7496 4717 +1 212 451 8034 http://www.bp.com/investors SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. BP p.l.c. (Registrant) Dated: 27 April, 2004 /s/ D. J. PEARL .............................. D. J. PEARL Deputy Company Secretary -----END PRIVACY-ENHANCED MESSAGE-----