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 23 October 2007
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
Third Quarter 2007
London 23 October 2007
FOR IMMEDIATE RELEASE
Third Second Third
Quarter Quarter Quarter Nine Months
2006 2007 2007 $ million 2007 2006 %
========================== =========================
6,231 7,376 4,406 Profit for the period* 16,446 19,120
744 (1,289) (539) Inventory holding (gains) losses (2,131) (762)
-------------------------- -------------------------
6,975 6,087 3,867 Replacement cost profit 14,315 18,358 (22)
========================== =========================
18.76 15.96 9.94 - per ordinary share (pence) 37.44 50.01
35.08 31.67 20.34 - per ordinary share (cents) 74.51 91.02 (18)
2.10 1.90 1.22 - per ADS (dollars) 4.47 5.46
========================== =========================
- BP's third-quarter replacement cost profit was $3,867 million, compared
with $6,975 million a year ago, a decrease of 45%. For the nine months,
replacement cost profit was $14,315 million compared with $18,358 million, down
22%.
- The third-quarter result included a net non-operating loss of $346
million compared with a net non-operating gain of $1,225 million in the third
quarter of 2006. For the nine months, the net non-operating gain was $758
million compared with a net non-operating gain of $1,214 million for the first
nine months of 2006.
- Net cash provided by operating activities for the quarter and nine
months was $6.4 billion and $20.4 billion respectively compared with $5.1
billion and $23.2 billion a year ago.
- The effective tax rate on replacement cost profit from continuing
operations for the third quarter was 35% compared with 40% a year ago. For the
nine months, the rate was 35% compared with 37% in the equivalent period of
2006.
- Net debt at the end of the quarter was $22.8 billion. The ratio of net
debt to net debt plus equity was 20% compared with 16% a year ago.
- Capital expenditure, excluding acquisitions and asset exchanges, was
$4.6 billion for the quarter and for the nine months was $12.6 billion. Total
capital expenditure and acquisitions was $4.6 billion for the quarter and $14
billion for the nine months. The nine months included $1.1 billion in respect of
the acquisition of Chevron's Netherlands manufacturing company. Disposal
proceeds were $0.2 billion for the quarter and were $3.9 billion for the nine
months.
- The quarterly dividend, to be paid in December, is 10.825 cents per
share ($0.6495 per ADS) compared with 9.825 cents per share a year ago. For the
nine months, the dividend showed an increase of 10%. In sterling terms, the
quarterly dividend is 5.308 pence per share, compared with 5.241 pence per share
a year ago; for the nine months the decrease was less than 1%. During the
quarter, the company repurchased 128 million of its own shares for cancellation
at a cost of $1.5 billion. For the nine months, share repurchases were 542
million at a cost of $6.0 billion.
- Information on fair value accounting effects in relation to Refining
and Marketing and Gas, Power and Renewables is set out on page 10.
* Profit attributable to BP shareholders.
The commentaries above and following are based on replacement cost profit and
should be read in conjunction with the cautionary statement on page 11.
Analysis of Replacement Cost Profit and Reconciliation
---------------------------------------------
to Profit for the Period
------------------
Third Second Third
Quarter Quarter Quarter Nine Months
2006 2007 2007 $ million 2007 2006
=============================== =================
9,935 6,893 6,343 Exploration and Production 19,279 24,584
1,503 2,740 376 Refining and Marketing 3,954 4,971
152 190 (57) Gas, Power and Renewables 339 906
(261) (164) (451) Other businesses and corporate (731) (671)
440 (69) 59 Consolidation adjustments 73 155
------------------------------- -----------------
11,769 9,590 6,270 RC profit before interest and tax 22,914 29,945
------------------------------- -----------------
(117) (155) (173) Finance costs and other finance income (499) (367)
(4,614) (3,283) (2,158) Taxation (7,881) (10,984)
(63) (65) (72) Minority interest (219) (211)
------------------------------- -----------------
RC profit from continuing operations
6,975 6,087 3,867 attributable to BP shareholders(a) 14,315 18,383
=============================== =================
Inventory holding gains (losses) for
(744) 1,289 539 continuing operations 2,131 762
------------------------------- -----------------
Profit for the period from continuing
operations attributable to
6,231 7,376 4,406 BP shareholders 16,446 19,145
Profit (loss) for the period from Innovene
- - - operations(b) - (25)
------------------------------- -----------------
Profit for the period attributable to
6,231 7,376 4,406 BP shareholders 16,446 19,120
=============================== =================
RC profit from continuing operations
attributable
6,975 6,087 3,867 to BP shareholders 14,315 18,383
- - - RC profit (loss) from Innovene operations - (25)
------------------------------- -----------------
6,975 6,087 3,867 Replacement cost profit 14,315 18,358
=============================== =================
(a)Replacement cost profit reflects the current cost of supplies. The
replacement cost profit for the period is arrived at by excluding from profit
inventory holding gains and losses. BP uses this measure to assist investors to
assess BP's performance from period to period. Replacement cost profit is not a
recognized GAAP measure.
(b)See further detail in Note 2.
Results include Non-operating Items
------------------------------
Third Second Third
Quarter Quarter Quarter Nine Months
2006 2007 2007 $ million 2007 2006
================================ =================
2,466 399 22 Exploration and Production 1,169 2,559
(431) 767 (344) Refining and Marketing 194 (331)
(85) (36) (8) Gas, Power and Renewables (35) (34)
78 7 (205) Other businesses and corporate (164) 113
-------------------------------- -----------------
2,028 1,137 (535) 1,164 2,307
(803) (396) 189 Taxation(a) (406) (902)
-------------------------------- -----------------
1,225 741 (346) Continuing operations 758 1,405
-------------------------------- -----------------
- - - Innovene operations - (184)
- - - Taxation - (7)
-------------------------------- -----------------
1,225 741 (346) Total for all operations 758 1,214
================================ =================
An analysis of non-operating items by type is provided on page 21.
(a)Tax on non-operating items is calculated using the quarter's effective tax
rate on replacement cost profit from continuing operations.
Per Share Amounts
----------------
Third Second Third
Quarter Quarter Quarter Nine Months
2006 2007 2007 2007 2006
================================ =====================
Results for the period ($m)
6,231 7,376 4,406 Profit(a) 16,446 19,120
6,975 6,087 3,867 Replacement cost profit 14,315 18,358
-------------------------------- ---------------------
Shares in issue at period end
19,815,830 19,133,973 19,019,579 (thousand)(b) 19,019,579 19,815,830
3,302,638 3,188,996 3,169,930 - ADS equivalent (thousand)(b) 3,169,930 3,302,638
Average number of shares outstanding
19,818,106 19,186,461 19,061,853 (thousand)(b) 19,209,757 20,167,945
3,303,018 3,197,744 3,176,976 - ADS equivalent (thousand)(b) 3,201,626 3,361,324
Shares repurchased in the period
299,155 175,806 128,253 (thousand) 541,975 1,023,978
Per ordinary share (cents)
31.46 38.37 23.18 Profit for the period 85.61 94.80
35.08 31.67 20.34 RC profit for the period 74.51 91.02
Per ADS (cents)
188.76 230.22 139.08 Profit for the period 513.66 568.80
210.48 190.02 122.04 RC profit for the period 447.06 546.12
-------------------------------- ---------------------
(a)Profit attributable to BP shareholders.
(b)Excludes treasury shares.
Dividends
---------
Dividends Payable
BP today announced a dividend of 10.825 cents per ordinary share to be paid in
December. Holders of ordinary shares will receive 5.308 pence per share and
holders of American Depository Receipts (ADRs) $0.6495 per ADS. The dividend is
payable on 3 December to shareholders on the register on 9 November.
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 3 December.
Dividends Paid
Third Second Third
Quarter Quarter Quarter Nine Months
2006 2007 2007 2007 2006
================================ ======================
Dividends paid per ordinary share
9.825 10.325 10.825 Cents 31.475 28.575
5.324 5.151 5.278 Pence 15.687 15.863
58.95 61.95 64.95 Dividends paid per ADS (cents) 188.85 171.45
================================ ======================
Net Debt Ratio - Net Debt: Net Debt + Equity
-----------------------------------
Third Second Third
Quarter Quarter Quarter Nine Months
2006 2007 2007 $ million 2007 2006
================================ ======================
19,973 23,754 25,245 Gross debt 25,245 19,973
3,199 2,643 2,410 Cash and cash equivalents 2,410 3,199
-------------------------------- ----------------------
16,774 21,111 22,835 Net debt 22,835 16,774
================================ ======================
85,070 89,423 91,494 Equity 91,494 85,070
16% 19% 20% Net debt ratio 20% 16%
================================ ======================
Exploration and Production
----------------------
Third Second Third
Quarter Quarter Quarter Nine Months
2006 2007 2007 $ million 2007 2006
================================ =================
9,929 6,894 6,347 Profit before interest and tax(a) 19,295 24,572
6 (1) (4) Inventory holding (gains) losses (16) 12
-------------------------------- -----------------
Replacement cost profit before interest
9,935 6,893 6,343 and tax 19,279 24,584
================================ =================
By region:
1,306 1,113 703 UK 2,878 4,305
264 183 221 Rest of Europe 1,124 960
3,827 2,038 1,843 US 5,533 8,392
4,538 3,559 3,576 Rest of World 9,744 10,927
-------------------------------- -----------------
9,935 6,893 6,343 19,279 24,584
================================ =================
Results include:
Non-operating items
540 187 33 UK 365 532
(27) (2) 7 Rest of Europe 538 56
2,016 177 (15) US 154 2,027
(63) 37 (3) Rest of World 112 (56)
-------------------------------- -----------------
2,466 399 22 1,169 2,559
================================ =================
Exploration expense
7 7 2 UK 29 14
- - - Rest of Europe - -
188 54 60 US 191 309
156 94 182 Rest of World 335 314
-------------------------------- -----------------
351 155 244 555 637
================================ =================
Production (net of royalties)(b)
Liquids (mb/d) (net of royalties)(c)
213 218 151 UK 202 258
58 43 52 Rest of Europe 52 63
523 532 475 US 510 551
1,628 1,656 1,614 Rest of World 1,632 1,623
-------------------------------- -----------------
2,422 2,449 2,292 2,396 2,495
================================ =================
Natural gas (mmcf/d) (net of royalties)
754 731 582 UK 739 952
100 22 26 Rest of Europe 30 92
2,332 2,165 2,186 US 2,171 2,436
4,900 4,941 5,085 Rest of World 5,138 4,991
-------------------------------- -----------------
8,086 7,859 7,879 8,078 8,471
================================ =================
Total hydrocarbons (mboe/d)(d)
343 344 251 UK 329 422
75 47 57 Rest of Europe 57 78
925 905 851 US 885 971
2,473 2,508 2,492 Rest of World 2,517 2,483
-------------------------------- -----------------
3,816 3,804 3,651 3,788 3,954
================================ =================
Average realizations(e)
64.15 62.58 71.12 Total liquids ($/bbl) 62.00 60.91
4.49 4.45 3.93 Natural gas ($/mcf) 4.42 4.83
45.47 44.97 46.36 Total hydrocarbons ($/boe) 44.05 44.74
================================ =================
(a)Profit from continuing operations and includes profit after interest and tax
of equity-accounted entities.
(b)Includes BP's share of production of equity-accounted entities.
(c)Crude oil and natural gas liquids.
(d)Natural gas is converted to oil equivalent at 5.8 billion cubic feet = 1
million barrels.
(e)Based on sales of consolidated subsidiaries only - this excludes
equity-accounted entities.
(f)Because of rounding, some totals may not agree exactly with the sum of their
component parts.
Exploration and Production
----------------------
The replacement cost profit before interest and tax for the third quarter was
$6,343 million, a decrease of 36% from the third quarter of 2006. The result
benefited from higher liquids realizations, but was impacted by lower gas
realizations, lower reported volumes and higher costs. In addition, the result
was lower due to the absence of significant gains from non-operating items in
the third quarter of 2006 (see below) and the absence of disposal gains in
equity-accounted entities, primarily the $892 million gain on TNK-BP's disposal
of the Urdmurtneft assets.
The net non-operating gain in the third quarter of 2007 was $22 million which
included gains on the sale of assets and fair value gains on embedded
derivatives relating to North Sea gas contracts, partially offset by an
impairment charge relating to a gas plant in the US. This compares with a net
non-operating gain of $2,466 million in the third quarter of 2006, which was
primarily comprised of disposal gains.
The replacement cost profit before interest and tax of $19,279 million for the
first nine months represents a decrease of 22% over the same period of the
previous year. This result was impacted by lower gas realizations as well as
lower reported volumes and higher costs, reflecting sector-specific inflation,
increased integrity spend and higher depreciation charges. The nine-months
result included a net non-operating gain of $1,169 million compared with a net
non-operating gain of $2,559 million in the equivalent period of 2006.
Reported production for the third quarter and the first nine months was
3,651mboe/d and 3,788mboe/d respectively, 4% lower than in the equivalent
periods of 2006. After adjusting for the effect of disposals, entitlement
changes in our production-sharing agreements and the impact of the CATS pipeline
incident in the North Sea, production in both the third quarter and the first
nine months was broadly flat compared with 2006. Full year production in 2007 is
expected to be in the range of 3.8 to 3.9mmboe/d, in line with the guidance
provided earlier in the year.
During the quarter, we were the highest bidder for 91 blocks in the Western Gulf
of Mexico lease sale and we were awarded two new exploration licences in
Colombia. Additionally, in early October we participated in the Central Gulf of
Mexico lease sale, where we were highest bidder for 83 blocks.
Our major projects are progressing well. In October, we had first oil from
Greater Plutonio in Angola, where BP holds a 50% working interest. In the Gulf
of Mexico we have started commissioning the Atlantis field.
Refining and Marketing
-------------------
Third Second Third
Quarter Quarter Quarter Nine Months
2006 2007 2007 $ million 2007 2006
============================== =================
717 3,981 936 Profit before interest and tax(a) 6,046 5,747
786 (1,241) (560) Inventory holding (gains) losses (2,092) (776)
------------------------------ -----------------
Replacement cost profit before
1,503 2,740 376 interest and tax 3,954 4,971
============================== =================
By region:
138 963 22 UK 975 161
765 584 492 Rest of Europe 1,374 1,913
388 964 (527) US 559 1,774
212 229 389 Rest of World 1,046 1,123
------------------------------ -----------------
1,503 2,740 376 3,954 4,971
============================== =================
Results include:
Non-operating items
(27) 844 (4) UK 677 (8)
(18) (44) (16) Rest of Europe (72) 182
(264) 170 (316) US (204) (614)
(122) (203) (8) Rest of World (207) 109
------------------------------ -----------------
(431) 767 (344) 194 (331)
============================== =================
Refinery throughputs (mb/d)
200 123 - UK 90 158
622 700 735 Rest of Europe 691 644
1,213 996 1,109 US 1,086 1,130
252 309 304 Rest of World 302 268
------------------------------ -----------------
2,287 2,128 2,148 Total throughput 2,169 2,200
============================== =================
82.2 82.7 83.4 Refining availability (%)(b) 82.6 83.2
============================== =================
Oil sales volumes (mb/d)
Refined products
370 343 350 UK 343 356
1,367 1,271 1,329 Rest of Europe 1,282 1,331
1,609 1,579 1,535 US 1,559 1,613
578 615 641 Rest of World 627 575
------------------------------ -----------------
3,924 3,808 3,855 Total marketing sales 3,811 3,875
1,911 1,867 1,687 Trading/supply sales 1,860 1,932
------------------------------ -----------------
5,835 5,675 5,542 Total refined product sales 5,671 5,807
1,913 2,161 1,709 Crude oil 1,964 2,160
------------------------------ -----------------
7,748 7,836 7,251 Total oil sales 7,635 7,967
============================== =================
Global Indicator Refining Margin ($/bbl)(c)
4.54 7.12 3.82 NWE 5.03 4.40
11.47 24.46 12.58 USGC 15.74 13.36
11.50 26.05 14.31 Midwest 16.02 10.38
12.30 22.71 6.90 USWC 17.22 14.93
3.58 6.01 4.52 Singapore 5.12 4.65
8.40 16.66 8.05 BP Average 11.38 9.09
============================== =================
Chemicals production (kte)
230 246 237 UK 739 831
776 655 587 Rest of Europe 1,990 2,359
883 1,047 1,117 US 3,240 2,488
1,682 1,497 1,569 Rest of World 4,586 5,097
------------------------------ -----------------
3,571 3,445 3,510 Total production 10,555 10,775
============================== =================
(a)Profit from continuing operations and includes profit after interest and tax
of equity-accounted entities.
(b)Refining availability is defined as the ratio of units which are available
for processing, regardless of whether they are actually being used, to total
capacity. Where there is planned maintenance, such capacity is not regarded as
being available. During 2006, there was planned maintenance of a substantial
part of the Texas City refinery.
(c)The Global Indicator Refining Margin (GIM) is the average of regional
indicator margins weighted for BP's crude refining capacity in each region. Each
regional indicator margin is based on a single representative crude with product
yields characteristic of the typical level of upgrading complexity. The regional
indicator margins may not be representative of the margins achieved by BP in any
period because of BP's particular refinery configurations and crude and product
slate.
Refining and Marketing
-------------------
The replacement cost profit before interest and tax for the third quarter and
nine months was $376 million and $3,954 million respectively. The results in the
equivalent periods of 2006 were $1,503 million and $4,971 million respectively.
The third-quarter result included a net non-operating charge of $344 million
which was primarily comprised of charges in respect of new, and revisions to
existing, provisions. The nine-months result included a net non-operating gain
of $194 million.
Compared with the third quarter of 2006, realized refining margins were lower
due to the effects of narrowing light heavy crude differentials, particularly in
the US. Marketing margins remained robust although they were lower than the
exceptionally strong margins of a year ago. Relative to 2006, both refining and
marketing margins were stronger in the first nine months of 2007. Compared with
the equivalent periods of 2006, both the current quarter and nine-months results
reflected the adverse impact of operational issues, particularly at the Whiting
refinery, and scheduled turnarounds, along with reduced supply optimization
benefits and higher integrity and repair costs.
Information on fair value accounting effects is set out on page 10.
Refining throughputs for the quarter and nine months were 2,148mb/d and 2,169mb/
d respectively, compared with 2,287mb/d and 2,200mb/d for the same periods last
year. The lower throughputs were mainly due to the disposal of Coryton refinery
on 31 May 2007 and lower availability at the Whiting refinery, partially offset
by the benefits of the ongoing recommissioning at the Texas City refinery and
the acquisition of the remaining interests in the Rotterdam refinery.
Marketing sales were 3,855mb/d for the quarter and 3,811mb/d for the nine
months, slightly lower than the comparative periods in the previous year, mainly
due to lower European heating oil demand as a result of milder weather.
Refining availability, at 83.4%, improved for the third successive quarter. We
continue to make progress in the recommissioning of both the Texas City and
Whiting refineries. In line with our prior guidance, by the end of the fourth
quarter of 2007 we expect available production capacity to reach 400mb/d and
300mb/d at Texas City and Whiting respectively, with sour crude processing
having resumed at Whiting. We expect to restore both refineries to their full
crude capacity and flexibility in the first half of 2008.
Gas, Power and Renewables
-----------------------
Third Second Third
Quarter Quarter Quarter Nine Months
2006 2007 2007 $ million 2007 2006
============================= ================
152 235 (71) Profit before interest and tax(a) 370 853
- (45) 14 Inventory holding (gains) losses (31) 53
----------------------------- ----------------
Replacement cost profit before interest
152 190 (57) and tax 339 906
============================= ================
By region:
(46) (38) (85) UK (75) 70
(17) (8) (37) Rest of Europe (38) (20)
150 102 (23) US 105 578
65 134 88 Rest of World 347 278
----------------------------- ----------------
152 190 (57) 339 906
============================= ================
Results include:
Non-operating items
(20) (38) (12) UK (43) 32
- - - Rest of Europe - -
5 1 4 US 6 4
(70) 1 - Rest of World 2 (70)
----------------------------- ----------------
(85) (36) (8) (35) (34)
============================= ================
(a)Profit from continuing operations and includes profit after interest and tax
of equity-accounted entities.
The replacement cost loss before interest and tax for the third quarter was $57
million compared with a profit of $152 million in the same period of 2006. The
replacement cost profit before interest and tax for the nine months was $339
million compared with $906 million in the same period of 2006. Included in the
result for the quarter was a net charge for non-operating items of $8 million
primarily arising from fair value losses on embedded derivatives related to
long-term gas contracts. The corresponding quarter of 2006 included a net
non-operating charge of $85 million.
The third-quarter result decreased by more than $200 million over the third
quarter of 2006. This reflected a significant reduction in the contribution from
the marketing and trading businesses, lower natural gas liquids volumes and
higher Alternative Energy expenditure, partly offset by improved margins in the
natural gas liquids business and a lower charge related to non-operating items.
The nine-months result was lower than the same period in 2006, largely
reflecting weaker contributions from the marketing and trading businesses and
higher expenditure in the Alternative Energy business.
Information on fair value accounting effects is set out on page 10.
Other Businesses and Corporate
--------------------------
Third Second Third
Quarter Quarter Quarter Nine Months
2006 2007 2007 $ million 2007 2006
========================= =================
(213) (162) (462) Profit (loss) before interest and tax(a) (739) (620)
(48) (2) 11 Inventory holding (gains) losses 8 (51)
------------------------- -----------------
Replacement cost profit (loss) before
(261) (164) (451) interest and tax (731) (671)
========================= =================
By region:
(327) (25) 124 UK 53 (548)
9 (2) (77) Rest of Europe (58) (40)
35 (112) (359) US (585) (106)
22 (25) (139) Rest of World (141) 23
------------------------- -----------------
(261) (164) (451) (731) (671)
========================= =================
Results include:
Non-operating items
(25) - 1 UK 1 (25)
(2) - (11) Rest of Europe 17 (3)
105 7 (199) US (186) 124
- - 4 Rest of World 4 17
------------------------- -----------------
78 7 (205) (164) 113
========================= =================
(a)Profit from continuing operations and includes profit after interest and tax
of equity-accounted entities.
Other businesses and corporate comprises Finance, the group's aluminium asset,
interest income and costs relating to corporate activities. The third quarter's
result included a net charge of $205 million in respect of non-operating items
which was primarily comprised of new, and revisions to existing, provisions.
Information on fair value accounting effects
-----------------------------------
BP uses derivative instruments to manage the economic exposure relating to
inventories above normal operating requirements of crude oil, natural gas and
petroleum products as well as certain contracts to supply physical volumes at
future dates. Under IFRS, these inventories and contracts are recorded at
historic cost and on an accruals basis respectively. The related derivative
instruments, however, are required to be recorded at fair value with gains and
losses recognized in income because hedge accounting is either not permitted or
not followed, principally due to the impracticality of effectiveness testing
requirements. Therefore, measurement differences in relation to recognition of
gains and losses occur. Gains and losses on these inventories and contracts are
not recognized until the commodity is sold in a subsequent accounting period.
Gains and losses on the related derivative commodity contracts are recognized in
the income statement from the time the derivative commodity contract is entered
into on a fair value basis using forward prices consistent with the contract
maturity.
IFRS requires that inventory held for trading be recorded at its fair value
using period end spot prices whereas any related derivative commodity
instruments are required to be recorded at values based on forward prices
consistent with the contract maturity. Depending on market conditions, these
forward prices can be either higher or lower than spot prices resulting in
measurement differences.
The Gas, Power and Renewables business enters into contracts for pipelines and
storage capacity which, under IFRS, are recorded on an accruals basis. These
contracts are risk managed using a variety of derivative instruments which are
fair valued under IFRS. This results in measurement differences in relation to
recognition of gains and losses.
The way that BP manages the economic exposures described above, and measures
performance internally, differs from the way these activities are measured under
IFRS. BP calculates this difference by comparing the IFRS result with
management's internal measure of performance, under which the inventory and the
supply and capacity contracts in question are valued based on fair value using
relevant forward prices prevailing at the end of the period. We believe that
disclosing management's estimate of this difference provides useful information
for investors because it enables investors to see the economic effect of these
activities as a whole. The impacts of fair value accounting effects, relative to
management's internal measure of performance, are shown in the table below.
Information for all quarters of 2005 and 2006 can be found at www.bp.com/FVAE.
Third Second Third
Quarter Quarter Quarter Nine Months
2006 2007 2007 $ million 2007 2006
========================= =================
Refining and Marketing
Unrecognized gains (losses) brought forward from
332 611 274 previous period 72 283
252 (274) (367) Unrecognized (gains) losses carried forward (367) 252
------------------------- -----------------
Favourable/(unfavourable) impact relative to
584 337 (93) management's measure of performance (295) 535
========================= =================
Gas, Power and Renewables
Unrecognized gains (losses) brought forward from
376 124 198 previous period 155 123
(399) (198) (234) Unrecognized (gains) losses carried forward (234) (399)
------------------------- -----------------
Favourable/(unfavourable) impact relative to
(23) (74) (36) management's measure of performance (79) (276)
========================= =================
561 263 (129) (374) 259
(222) (92) 46 Taxation(a) 134 (116)
------------------------- -----------------
339 171 (83) (240) 143
========================= =================
By region
Refining and Marketing
111 83 45 UK (53) 136
156 48 2 Rest of Europe (115) 161
315 174 (142) US (133) 244
2 32 2 Rest of World 6 (6)
------------------------- -----------------
584 337 (93) (295) 535
========================= =================
Gas, Power and Renewables
(48) (4) (22) UK 12 (12)
- - - Rest of Europe - -
14 (71) (19) US (96) (250)
11 1 5 Rest of World 5 (14)
------------------------- -----------------
(23) (74) (36) (79) (276)
========================= =================
(a)Tax is calculated using the quarter's effective tax rate on replacement cost
profit from continuing operations.
The amounts shown in the table above, in respect of comparative periods for the
Refining and Marketing segment, have been revised from those disclosed
previously. The revisions reflect changes in the basis for valuation of certain
forward supply contracts to be consistent with the method used for other forward
supply contracts when calculating management's internal measure of performance.
The changes to comparative figures are not material in relation to management's
internal measure of the Refining and Marketing segment's performance. The
changes have no impact on the results reported under IFRS.
Cautionary Statement: The foregoing discussion contains forward looking
statements particularly those regarding production and refining production and
capacity. By their nature, forward looking statements involve risk and
uncertainty 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 (including inflation);
political stability and economic growth in relevant areas of the world; changes
in laws and governmental regulations and quotas; exchange rate fluctuations;
development and use of new technology; the success or otherwise of partnering;
the actions of competitors; natural disasters and adverse weather conditions;
changes in public expectations and other changes to business conditions; wars
and acts of terrorism or sabotage; and other factors discussed in this
Announcement. For more information you should refer to our Annual Report and
Accounts 2006 and our 2006 Annual Report on Form 20-F filed with the US
Securities and Exchange Commission.
Summarized Group Income Statement
-------------------------------
Third Second Third
Quarter Quarter Quarter Nine Months
2006 2007 2007 2007 2006
========================= =================
$ million $ million
68,540 71,872 71,334 Sales and other operating revenues (Note 3) 204,513 203,960
Earnings from jointly controlled entities - after
1,878 910 900 interest and tax 2,143 3,269
88 173 204 Earnings from associates - after interest and tax 540 317
220 128 172 Interest and other revenues 533 524
------------------------- -----------------
70,726 73,083 72,610 Total revenues 207,729 208,070
2,276 1,309 228 Gain on sale of businesses and fixed assets 2,217 3,414
------------------------- -----------------
73,002 74,392 72,838 Total revenues and other income 209,946 211,484
48,431 49,983 51,810 Purchases 144,453 142,677
6,275 6,276 6,297 Production and manufacturing expenses 18,325 17,368
1,202 827 921 Production and similar taxes (Note 4) 2,495 2,989
2,194 2,535 2,505 Depreciation, depletion and amortization 7,559 6,687
Impairment and losses on sale of businesses and
387 455 129 fixed assets 807 489
351 155 244 Exploration expense 555 637
3,630 3,565 4,137 Distribution and administration expenses 11,159 10,242
(493) (283) (14) Fair value (gain) loss on embedded derivatives (452) (312)
------------------------- -----------------
Profit before interest and taxation from
11,025 10,879 6,809 continuing operations 25,045 30,707
169 251 262 Finance costs (Note 5) 777 513
(52) (96) (89) Other finance income (Note 6) (278) (146)
------------------------- -----------------
10,908 10,724 6,636 Profit before taxation from continuing operations 24,546 30,340
4,614 3,283 2,158 Taxation 7,881 10,984
------------------------- -----------------
6,294 7,441 4,478 Profit from continuing operations 16,665 19,356
- - - Profit (loss) from Innovene operations (Note 2) - (25)
------------------------- -----------------
6,294 7,441 4,478 Profit for the period 16,665 19,331
========================= =================
Attributable to:
6,231 7,376 4,406 BP shareholders 16,446 19,120
63 65 72 Minority interest 219 211
------------------------- -----------------
6,294 7,441 4,478 16,665 19,331
========================= =================
Earnings per share - cents
Profit for the period attributable to BP shareholders
31.46 38.37 23.18 Basic 85.61 94.80
31.40 38.18 23.07 Diluted 85.19 94.12
Profit from continuing operations attributable to
BP shareholders
31.46 38.37 23.18 Basic 85.61 94.93
31.40 38.18 23.07 Diluted 85.19 94.24
Summarized Group Balance Sheet
---------------------------
30 September 31 December
2007 2006
===========================
$ million
Non-current assets
Property, plant and equipment 96,934 90,999
Goodwill 11,138 10,780
Intangible assets 5,971 5,246
Investments in jointly controlled entities 15,350 15,074
Investments in associates 5,994 5,975
Other investments 1,650 1,697
---------------------------
Fixed assets 137,037 129,771
Loans 1,016 817
Other receivables 979 862
Derivative financial instruments 3,105 3,025
Prepayments and accrued income 1,031 1,034
Defined benefit pension plan surplus 7,596 6,753
---------------------------
150,764 142,262
---------------------------
Current assets
Loans 166 141
Inventories 21,784 18,915
Trade and other receivables 39,418 38,692
Derivative financial instruments 7,326 10,373
Prepayments and accrued income 3,497 3,006
Current tax receivable 246 544
Cash and cash equivalents 2,410 2,590
---------------------------
74,847 74,261
Assets classified as held for sale - 1,078
---------------------------
74,847 75,339
---------------------------
Total assets 225,611 217,601
===========================
Current liabilities
Trade and other payables 42,649 42,236
Derivative financial instruments 6,954 9,424
Accruals and deferred income 6,522 6,147
Finance debt 12,789 12,924
Current tax payable 2,995 2,635
Provisions 1,896 1,932
---------------------------
73,805 75,298
Liabilities directly associated with the assets classified as held for - 54
sale
---------------------------
73,805 75,352
---------------------------
Non-current liabilities
Other payables 1,176 1,430
Derivative financial instruments 3,685 4,203
Accruals and deferred income 988 961
Finance debt 12,456 11,086
Deferred tax liabilities 19,072 18,116
Provisions 13,211 11,712
Defined benefit pension plan and other
post-retirement benefit plan deficits 9,724 9,276
---------------------------
60,312 56,784
---------------------------
Total liabilities 134,117 132,136
---------------------------
Net assets 91,494 85,465
===========================
Equity
BP shareholders' equity 90,541 84,624
Minority interest 953 841
---------------------------
91,494 85,465
===========================
Group Statement of Recognized Income and Expense
-------------------------------------------
Third Second Third
Quarter Quarter Quarter Nine Months
2006 2007 2007 2007 2006
========================= =================
$ million $ million
531 621 788 Currency translation differences 1,583 993
Exchange gain on translation of foreign operations
transferred to gain on sale of businesses and fixed
- (128) - assets (147) -
144 6 78 Available-for-sale investments marked to market (25) 297
Available-for-sale investments - recycled to the
(1) - (91) income statement (91) (426)
(15) 13 139 Cash flow hedges marked to market 180 272
(26) (21) (5) Cash flow hedges - recycled to the income statement (86) 50
5 - (2) Cash flow hedges - recycled to the balance sheet (9) 5
(166) 105 90 Taxation 118 (120)
------------------------- -----------------
472 596 997 Net income recognized directly in equity 1,523 1,071
6,294 7,441 4,478 Profit for the period 16,665 19,331
------------------------- -----------------
Total recognized income and expense relating to
6,766 8,037 5,475 the period 18,188 20,402
========================= =================
Attributable to:
6,703 7,967 5,372 BP shareholders 17,917 20,191
63 70 103 Minority interest 271 211
------------------------- -----------------
6,766 8,037 5,475 18,188 20,402
========================= =================
Movement in BP Shareholders' Equity
----------------------------------
$ million
Movement in BP shareholders' equity
At 31 December 2006 84,624
Profit for the period 16,446
Distribution to shareholders (6,050)
Currency translation differences (net of tax) 1,501
Exchange gain on translation of foreign operations
transferred to gain on sale (net of tax) (147)
Share-based payments (net of tax) 696
Repurchase of ordinary share capital (6,493)
Available-for-sale investments (net of tax) (111)
Cash flow hedges (net of tax) 104
Other (29)
----------
At 30 September 2007 90,541
==========
Summarized Group Cash Flow Statement
---------------------------------
Third Second Third
Quarter Quarter Quarter Nine Months
2006 2007 2007 2007 2006
========================= =================
$ million $ million
Operating activities
10,908 10,724 6,636 Profit before taxation from continuing operations 24,546 30,340
Adjustments to reconcile profits before tax to net
cash provided by operating activities
232 60 146 Exploration expenditure written off 261 359
2,194 2,535 2,505 Depreciation, depletion and amortization 7,559 6,687
Impairment and (gain) loss on sale of businesses
(1,889) (854) (99) and fixed assets (1,410) (2,925)
(1,966) (1,083) (1,104) Earnings from jointly controlled entities and (2,683) (3,586)
associates
Dividends received from jointly controlled entities
2,407 813 1,060 and associates 2,102 3,686
(6,756) (6,109) (2,788) Working capital and other movements (9,955) (11,359)
------------------------- -----------------
5,130 6,086 6,356 Net cash provided by operating activities(a) 20,420 23,202
------------------------- -----------------
Investing activities
(3,945) (4,334) (4,336) Capital expenditure (12,315) (10,652)
(102) (111) (27) Acquisitions, net of cash acquired (1,225) (102)
- (12) (122) Investment in jointly controlled entities (143) (26)
(159) (65) (37) Investment in associates (146) (467)
2,662 836 211 Proceeds from disposal of fixed assets 1,357 5,045
Proceeds from disposal of businesses, net of cash
135 1,905 - disposed 2,513 391
33 33 45 Proceeds from loan repayments 123 163
- 374 - Other 374 -
------------------------- -----------------
(1,376) (1,374) (4,266) Net cash used in investing activities (9,462) (5,648)
------------------------- -----------------
Financing activities
(3,430) (1,918) (1,441) Net repurchase of shares (5,761) (11,702)
706 1,513 107 Proceeds from long-term financing 2,978 1,616
(996) (93) (369) Repayments of long-term financing (1,596) (1,781)
294 (1,499) 1,426 Net increase (decrease) in short-term debt (631) 525
(1,943) (1,983) (2,066) Dividends paid - BP shareholders (6,050) (5,759)
(57) (71) (24) - Minority interest (159) (211)
------------------------- -----------------
(5,426) (4,051) (2,367) Net cash used in financing activities (11,219) (17,312)
------------------------- -----------------
Currency translation differences relating to cash
19 26 44 and cash equivalents 81 (3)
------------------------- -----------------
(1,653) 687 (233) Increase (decrease) in cash and cash equivalents (180) 239
4,852 1,956 2,643 Cash and cash equivalents at beginning of period 2,590 2,960
------------------------- -----------------
3,199 2,643 2,410 Cash and cash equivalents at end of period 2,410 3,199
========================= =================
(a)Net cash provided by operating activities is calculated from the starting
point of profit before taxation which includes inventory holding gains and
losses. Net cash provided by operating activities also reflects working capital
movements including inventories, trade and other receivables and trade and other
payables. The carrying value of these working capital items will change for
various reasons, including movements in oil, gas and product prices.
Summarized Group Cash Flow Statement
----------------------------------
Third Second Third
Quarter Quarter Quarter Nine Months
2006 2007 2007 2007 2006
========================= =================
$ million $ million
Working capital and other movements
(141) (93) (154) Interest receivable (342) (393)
120 103 152 Interest received 340 411
169 251 262 Finance costs 777 513
(267) (335) (300) Interest paid (968) (928)
(52) (96) (89) Other finance income (278) (146)
134 107 129 Share-based payments 311 339
Net operating charge for pensions and other
(36) (31) (61) post-retirement benefits, less contributions (179) (133)
(115) (257) 362 Net charge for provisions, less payments (52) (106)
1,477 (683) (803) (Increase) decrease in inventories (2,134) 134
(Increase) decrease in other current and non-current
(1,616) (621) 956 assets 3,474 727
Increase (decrease) in other current and non-current
(1,763) (2,429) (104) liabilities (4,533) (1,735)
(4,666) (2,025) (3,138) Income taxes paid (6,371) (10,042)
------------------------- -----------------
(6,756) (6,109) (2,788) (9,955) (11,359)
------------------------- -----------------
Capital Expenditure and Acquisitions
------------------------------
Third Second Third
Quarter Quarter Quarter Nine Months
2006 2007 2007 2007 2006
========================= =================
$ million $ million
By business
Exploration and Production
220 195 276 UK 692 646
52 108 122 Rest of Europe 317 195
1,160 1,453 1,133 US 3,636 3,371
2,505 1,874 1,710 Rest of World(a) 5,222 5,409
------------------------- -----------------
3,937 3,630 3,241 9,867 9,621
------------------------- -----------------
Refining and Marketing
67 94 137 UK 304 211
149 266 379 Rest of Europe(b) 1,855 315
289 380 466 US 1,115 799
117 118 155 Rest of World 353 333
------------------------- -----------------
622 858 1,137 3,627 1,658
------------------------- -----------------
Gas, Power and Renewables
17 12 6 UK 25 24
7 3 8 Rest of Europe(b) 18 19
187 106 90 US 232 239
9 20 34 Rest of World 67 42
------------------------- -----------------
220 141 138 342 324
------------------------- -----------------
Other businesses and corporate
13 21 22 UK 78 71
- - - Rest of Europe 2 -
32 46 34 US 112 120
- - - Rest of World - -
------------------------- -----------------
45 67 56 192 191
------------------------- -----------------
4,824 4,696 4,572 14,028 11,794
========================= =================
By geographical area
317 322 441 UK 1,099 952
208 377 509 Rest of Europe 2,192 529
1,668 1,985 1,723 US 5,095 4,529
2,631 2,012 1,899 Rest of World 5,642 5,784
------------------------- -----------------
4,824 4,696 4,572 14,028 11,794
========================= =================
Included above:
106 332 2 Acquisitions and asset exchanges(b) 1,447 116
========================= =================
(a)Third quarter 2006 included $1 billion for the purchase of shares in Rosneft.
(b)Nine months ended 30 September 2007 included $1,132 million for the
acquisition of Chevron's Netherlands manufacturing company.
Exchange rates
1.87 1.99 2.02 US dollar/sterling average rate for the period 1.99 1.82
1.87 2.00 2.02 US dollar/sterling period-end rate 2.02 1.87
1.27 1.35 1.37 US dollar/euro average rate for the period 1.34 1.24
1.27 1.35 1.42 US dollar/euro period-end rate 1.42 1.27
------------------------- -----------------
Analysis of Profit Before Interest and Tax
----------------------------------
Third Second Third
Quarter Quarter Quarter Nine Months
2006 2007 2007 2007 2006
========================= =================
$ million $ million
By business
Exploration and Production
1,306 1,113 703 UK 2,878 4,305
264 183 221 Rest of Europe 1,124 960
3,820 2,037 1,845 US 5,545 8,379
4,539 3,561 3,578 Rest of World 9,748 10,928
------------------------- -----------------
9,929 6,894 6,347 19,295 24,572
------------------------- -----------------
Refining and Marketing
46 1,028 (10) UK 954 57
387 1,029 623 Rest of Europe 2,133 1,858
65 1,631 (136) US 1,784 2,419
219 293 459 Rest of World 1,175 1,413
------------------------- -----------------
717 3,981 936 6,046 5,747
------------------------- -----------------
Gas, Power and Renewables
(46) (38) (85) UK (75) 70
(15) (7) (37) Rest of Europe (37) (10)
141 124 (26) US 122 566
72 156 77 Rest of World 360 227
------------------------- -----------------
152 235 (71) 370 853
------------------------- -----------------
Other businesses and corporate
(327) (25) 124 UK 53 (548)
11 (1) (78) Rest of Europe (58) (35)
81 (111) (369) US (593) (60)
22 (25) (139) Rest of World (141) 23
------------------------- -----------------
(213) (162) (462) (739) (620)
------------------------- -----------------
10,585 10,948 6,750 24,972 30,552
440 (69) 59 Consolidation adjustment 73 155
------------------------- -----------------
11,025 10,879 6,809 Total for continuing operations 25,045 30,707
------------------------- -----------------
Innovene operations
- - - UK - (145)
- - - Rest of Europe - (61)
- - - US - 1
- - - Rest of World - 21
------------------------- -----------------
- - - Total for Innovene operations - (184)
------------------------- -----------------
11,025 10,879 6,809 Total for period 25,045 30,523
========================= =================
By geographical area
989 2,080 731 UK 3,809 3,909
695 1,213 718 Rest of Europe 3,176 2,749
4,491 3,622 1,364 US 6,918 11,453
4,850 3,964 3,996 Rest of World 11,142 12,596
------------------------- -----------------
11,025 10,879 6,809 Total for continuing operations 25,045 30,707
========================= =================
Analysis of Replacement Cost Profit
Before Interest and Tax
------------------------------
Third Second Third
Quarter Quarter Quarter Nine Months
2006 2007 2007 2007 2006
========================= =================
$ million $ million
By business
Exploration and Production
1,306 1,113 703 UK 2,878 4,305
264 183 221 Rest of Europe 1,124 960
3,827 2,038 1,843 US 5,533 8,392
4,538 3,559 3,576 Rest of World 9,744 10,927
------------------------- -----------------
9,935 6,893 6,343 19,279 24,584
------------------------- -----------------
Refining and Marketing
138 963 22 UK 975 161
765 584 492 Rest of Europe 1,374 1,913
388 964 (527) US 559 1,774
212 229 389 Rest of World 1,046 1,123
------------------------- -----------------
1,503 2,740 376 3,954 4,971
------------------------- -----------------
Gas, Power and Renewables
(46) (38) (85) UK (75) 70
(17) (8) (37) Rest of Europe (38) (20)
150 102 (23) US 105 578
65 134 88 Rest of World 347 278
------------------------- -----------------
152 190 (57) 339 906
------------------------- -----------------
Other businesses and corporate
(327) (25) 124 UK 53 (548)
9 (2) (77) Rest of Europe (58) (40)
35 (112) (359) US (585) (106)
22 (25) (139) Rest of World (141) 23
------------------------- -----------------
(261) (164) (451) (731) (671)
------------------------- -----------------
11,329 9,659 6,211 22,841 29,790
440 (69) 59 Consolidation adjustment 73 155
------------------------- -----------------
11,769 9,590 6,270 Total for continuing operations 22,914 29,945
------------------------- -----------------
Innovene operations
- - - UK - (145)
- - - Rest of Europe - (61)
- - - US - 1
- - - Rest of World - 21
------------------------- -----------------
- - - Total for Innovene operations - (184)
------------------------- -----------------
11,769 9,590 6,270 Total for period 22,914 29,761
========================= =================
By geographical area
1,081 2,015 763 UK 3,830 4,013
1,069 766 590 Rest of Europe 2,417 2,789
4,784 2,933 983 US 5,672 10,787
4,835 3,876 3,934 Rest of World 10,995 12,356
------------------------- -----------------
11,769 9,590 6,270 Total for continuing operations 22,914 29,945
========================= =================
Analysis of Non-operating Items
--------------------------
Third Second Third
Quarter Quarter Quarter Nine Months
2006 2007 2007 2007 2006
========================= =================
$ million $ million
By business
Exploration and Production
Impairment and gain (loss) on sale of businesses and
1,962 100 1 fixed assets 704 2,301
(17) - (12) Environmental and other provisions (12) (17)
- - - Restructuring, integration and rationalization costs - -
521 299 33 Fair value gain (loss) on embedded derivatives 477 275
- - - Other - -
------------------------- -----------------
2,466 399 22 1,169 2,559
------------------------- -----------------
Refining and Marketing
Impairment and gain (loss) on sale of businesses and
2 767 105 fixed assets 693 678
(33) - (138) Environmental and other provisions (138) (33)
- - - Restructuring, integration and rationalization costs - -
- - - Fair value gain (loss) on embedded derivatives - -
(400) - (311) Other (361) (976)
------------------------- -----------------
(431) 767 (344) 194 (331)
------------------------- -----------------
Gas, Power and Renewables
Impairment and gain (loss) on sale of businesses and
(65) (13) 4 fixed assets (7) (66)
- - - Environmental and other provisions - -
- - - Restructuring, integration and rationalization costs - -
(20) (23) (12) Fair value gain (loss) on embedded derivatives (28) 32
- - - Other - -
------------------------- -----------------
(85) (36) (8) (35) (34)
------------------------- -----------------
Other businesses and corporate
Impairment and gain (loss) on sale of businesses and
(10) - (11) fixed assets 20 12
96 - (35) Environmental and other provisions (35) 96
- - - Restructuring, integration and rationalization costs - -
(8) 7 (7) Fair value gain (loss) on embedded derivatives 3 5
- - (152) Other (152) -
------------------------- -----------------
78 7 (205) (164) 113
------------------------- -----------------
2,028 1,137 (535) Total before taxation for continuing operations 1,164 2,307
(803) (396) 189 Taxation credit (charge)(a) (406) (902)
------------------------- -----------------
1,225 741 (346) Total after taxation for continuing operations 758 1,405
------------------------- -----------------
Innovene operations
- - - Total before taxation for Innovene operations(b) - (184)
- - - Taxation credit (charge) - (7)
------------------------- -----------------
- - - Total after taxation for Innovene operations - (191)
------------------------- -----------------
1,225 741 (346) Total after taxation for period 758 1,214
========================= =================
(a)Tax on non-operating items is calculated using the quarter's effective tax
rate on replacement cost profit from continuing operations.
(b)Includes the loss on remeasurement to fair value of $184 million in the nine
months of 2006.
Realizations and Marker Prices
-------------------------
Third Second Third
Quarter Quarter Quarter Nine months
2006 2007 2007 2007 2006
========================= =================
Average realizations(a)
Liquids ($/bbl)(b)
63.57 63.82 72.99 UK 62.88 63.39
62.95 59.42 67.47 US 59.30 58.92
65.50 64.76 73.56 Rest of World 63.88 61.25
64.15 62.58 71.12 BP Average 62.00 60.91
========================= =================
Natural gas ($/mcf)
5.55 4.84 4.89 UK 5.84 6.55
5.51 5.94 4.64 US 5.44 5.96
3.62 3.56 3.42 Rest of World 3.63 3.70
4.49 4.45 3.93 BP Average 4.42 4.83
========================= =================
Average oil marker prices ($/bbl)
69.60 68.76 74.74 Brent 67.12 67.02
70.44 64.89 75.24 West Texas Intermediate 66.15 68.09
69.02 65.77 76.31 Alaska North Slope US West Coast 66.06 66.28
62.92 62.16 69.37 Mars 61.67 60.76
65.90 65.03 71.98 Urals (NWE- cif) 63.82 62.94
39.83 39.56 41.95 Russian domestic oil 36.33 37.11
========================= =================
Average natural gas marker prices
6.58 7.55 6.16 Henry Hub gas price ($/mmbtu)(c) 6.83 7.45
33.72 20.24 30.58 UK Gas - National Balancing Point (p/therm) 24.45 46.28
========================= =================
(a)Based on sales of consolidated subsidiaries only - this excludes equity-
accounted entities.
(b)Crude oil and natural gas liquids.
(c)Henry Hub First of the Month Index.
Notes
-----
1. Basis of preparation
BP prepares its Annual Report and Accounts on the basis of
International Financial Reporting Standards (IFRS) as adopted for use by the
European Union (EU). The financial information presented herein has been
prepared in accordance with the accounting policies expected to be used in
preparing the Annual Report and Accounts 2007 which do not differ significantly
from those used for the Annual Report and Accounts 2006.
2. Sale of Olefins and Derivatives business
The sale of Innovene, BP's olefins, derivatives and refining
group, to INEOS, was completed on 16 December 2005. The period to 30 September
2006 includes a loss on remeasurement to fair value of $184 million.
Third Second Third
Quarter Quarter Quarter Nine Months
2006 2007 2007 2007 2006
========================= =================
$ million $ million
Loss recognized on the remeasurement to
- - - fair value - (184)
Taxation
- - - Related to profit before tax - 166
- - - Related to remeasurement to fair value - (7)
------------------------- -----------------
- - - Profit (loss) from Innovene operations - (25)
========================= =================
Earnings (loss) per share from Innovene
operations - cents
- - - Basic - (0.13)
- - - Diluted - (0.12)
========================= =================
3. Sales and other operating revenues
Third Second Third
Quarter Quarter Quarter Nine Months
2006 2007 2007 2007 2006
========================= =================
$ million $ million
By business
12,932 12,747 12,796 Exploration and Production 37,762 40,345
61,169 63,960 63,761 Refining and Marketing 180,840 179,079
5,840 5,403 4,490 Gas, Power and Renewables 15,506 18,484
212 178 238 Other businesses and corporate 622 670
------------------------- -----------------
80,153 82,288 81,285 234,730 238,578
11,613 10,416 9,951 Less: sales between businesses 30,217 34,618
------------------------- -----------------
68,540 71,872 71,334 Total third party sales 204,513 203,960
========================= =================
By geographical area
27,809 27,713 25,017 UK 76,785 81,842
20,412 19,064 19,817 Rest of Europe 55,469 58,192
27,447 26,825 26,409 US 76,268 76,567
17,337 18,273 18,374 Rest of World 53,491 54,779
------------------------- -----------------
93,005 91,875 89,617 262,013 271,380
24,465 20,003 18,283 Less: sales between areas 57,500 67,420
------------------------- -----------------
68,540 71,872 71,334 204,513 203,960
========================= =================
Notes
-----
4. Profit before interest and taxation is after charging:
Third Second Third
Quarter Quarter Quarter Nine Months
2006 2007 2007 2007 2006
========================= =================
$ million $ million
Production and similar taxes
96 - (34) UK 33 403
1,106 827 955 Overseas 2,462 2,586
------------------------- -----------------
1,202 827 921 2,495 2,989
========================= =================
5. Finance costs
Third Second Third
Quarter Quarter Quarter Nine Months
2006 2007 2007 2007 2006
========================= =================
$ million $ million
328 345 348 Interest payable 1,040 906
(159) (94) (86) Capitalized (263) (393)
------------------------- -----------------
169 251 262 777 513
========================= =================
6. Other finance income
Third Second Third
Quarter Quarter Quarter Nine Months
2006 2007 2007 2007 2006
========================= =================
$ million $ million
Interest on pension and other post-retirement
489 546 555 benefit plan liabilities 1,639 1,444
Expected return on pension and other
(610) (708) (719) post-retirement benefit plan assets (2,125) (1,791)
------------------------- -----------------
(121) (162) (164) Interest net of expected return on plan assets (486) (347)
63 66 75 Unwinding of discount on provisions 208 178
Unwinding of discount on deferred consideration
6 - - for acquisition of investment in TNK-BP - 23
------------------------- -----------------
(52) (96) (89) (278) (146)
========================= =================
Notes
-----
7. Analysis of changes in net debt
Third Second Third
Quarter Quarter Quarter Nine Months
2006 2007 2007 2007 2006
========================= =================
$ million $ million
Opening balance
19,286 23,728 23,754 Finance debt 24,010 19,162
4,852 1,956 2,643 Less: Cash and cash equivalents 2,590 2,960
------------------------- -----------------
14,434 21,772 21,111 Opening net debt 21,420 16,202
------------------------- -----------------
Closing balance
19,973 23,754 25,245 Finance debt 25,245 19,973
3,199 2,643 2,410 Less: Cash and cash equivalents 2,410 3,199
------------------------- -----------------
16,774 21,111 22,835 Closing net debt 22,835 16,774
------------------------- -----------------
(2,340) 661 (1,724) Decrease (increase) in net debt (1,415) (572)
========================= =================
Movement in cash and cash equivalents
(1,672) 661 (277) (excluding exchange adjustments) (261) 242
Net cash outflow (inflow) from financing
(5) 79 (1,164) (excluding share capital) (751) (360)
(515) (51) (261) Fair value hedge adjustment (342) (373)
(34) (13) (21) Other movements (45) 24
------------------------- -----------------
(2,226) 676 (1,723) Movement in net debt before exchange effects (1,399) (467)
(114) (15) (1) Exchange adjustments (16) (105)
------------------------- -----------------
(2,340) 661 (1,724) Decrease (increase) in net debt (1,415) (572)
========================= =================
Notes
-----
8. TNK-BP Operational and Financial Information
Third Second Third
Quarter Quarter Quarter Nine Months
2006 2007 2007 2007 2006
========================= =================
Production (Net of royalties) (BP share)
867 837 830 Crude oil (mb/d) 833 890
472 441 364 Natural gas (mmcf/d) 456 525
948 913 892 Total hydrocarbons (mboe/d)(a) 912 980
========================= =================
$ million $ million
Income statement (BP share)
2,321 1,016 1,094 Profit before interest and tax(b) 2,465 4,257
(52) (64) (67) Interest expense ... (193) (140)
(651) (188) (289) Taxation (579) (1,349)
(100) (78) (66) Minority interest (173) (187)
------------------------- -----------------
1,518 686 672 Net Income 1,520 2,581
========================= =================
... Excludes unwinding of discount on
6 - - consideration - 23
========================= =================
Cash Flow
2,000 500 800 Dividends received(c) 1,300 2,771
========================= =================
Balance Sheet 30 September 31 December
2007 2006
===========================
Investments in jointly controlled entities 8,066 8,353
===========================
(a)Natural gas is converted to oil equivalent at 5.8 billion cubic feet =
1 million barrels.
(b)Third quarter 2006 included a net gain of $892 million on the disposal of the
Urdmurtneft assets.
(c)Nine months of 2006 included $771 million declared in fourth quarter 2005.
9. Fourth quarter results
BP's fourth quarter results will be announced on 5 February
2008.
10. Statutory accounts
The financial information shown in this publication is unaudited
and does not constitute statutory financial statements. The 2006 BP Annual
Report and Accounts have been filed with the Registrar of Companies; the report
of the auditors on those accounts was unqualified and did not contain a
statement under section 237(2) or section 237(3) of the Companies Act 1985.
Contacts
--------
London United States
Press Office Roddy Kennedy Ronnie Chappell
+44 (0)20 7496 4624 +1 281 366 5174
Investor Relations Fergus MacLeod Rachael MacLean
+44 (0)20 7496 4717 +1 212 451 8072
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: 23 October 2007 /s/ D. J. PEARL
..............................
D. J. PEARL
Deputy Company Secretary