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 2nd July 2003
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
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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|
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July 2, 2003
BP 2Q 2003 TRADING UPDATE
This trading update is aimed at providing an overview of the revenue and trading
conditions experienced by BP during the second quarter ending June 30, 2003. The
second quarter margin, price, realisation, cost and other data referred to below
are currently provisional, some being drawn from figures applicable to the first
month or so of the quarter. All such data are subject to change and may differ
quite considerably from the final numbers that will be reported on July 29,
2003. The statement is produced in order to provide greater disclosure to
investors and potential investors of currently expected outcomes, and to ensure
that they all receive equal access to the same information at the same time.
Exploration and Production
Marker prices
2Q'03 1Q'03 2Q'02
Brent dated ($/bbl) 26.03 31.47 25.07
WTI ($/bbl) 29.02 34.00 26.30
ANS USWC ($/bbl) 27.04 33.16 25.04
US gas Henry Hub first of month index ($/mmbtu) 5.40 6.53 3.38
UK gas price - National Balancing Point (p/therm) 17.44 21.28 12.10
Compared to 1Q'03, liquid realisations are expected to move broadly in line with
the change in marker prices. Compared to 1Q'03, the Henry Hub gas marker price
is expected to decrease by $1.13/mmbtu. However, US gas realisations are
expected to decrease by a smaller amount due to a narrowing of basin
differentials.
Gas, Power and Renewables
North American gas marketing margins are expected to be significantly lower than
1Q'03 as gas price volatility has decreased. NGL margins are anticipated to be
lower than 1Q'03 in line with normal seasonality.
Refining and Marketing
Refining Indicator Margins ($/bbl)
2Q'03 1Q'03 2Q'02
USA
- West Coast 6.34 6.77 4.46
- Gulf Coast 3.59 6.14 2.62
- Midwest 4.73 4.14 3.76
North West Europe 2.15 3.70 0.59
Singapore 0.67 2.98 0.18
Refining Global Indicator Margin* ($/bbl.) 3.27 4.52 2.05
*The refining Global Indicator Margin (GIM) is a weighted average based on BP's
portfolio. Actual margins may vary because of refinery configuration, crude
slate and operating practices.
2Q'03 refining margins are expected to be lower than 1Q'03. The marketing
environment is projected to be up in 2Q'03 versus both 1Q'03 and 2Q'02 due to
falling oil prices and despite continuing economic slowdown.
Petrochemicals
Weighted Chemicals Indicator Margin ($/te)
2Q'03 1Q'03 4Q'02 2Q'02
n/a 90 (prov) 108 109
*The Chemicals Indicator Margin is a weighted average of externally-based
product margins. It is based on market data collected by Nextant (formerly Chem
Systems) in their quarterly market analyses, then weighted on BP's product
portfolio. This is described more fully in the Group's quarterly results
releases.
Petrochemical margins in 2Q'03 are expected to be better than in 1Q'03 as
feedstock costs fell during the quarter, though this benefit will be partially
offset by reduced product demand in Asia.
Stock Purchases
During the quarter the company purchased for cancellation 144 million of its
shares at a cost of around $1 billion. Shares in issue as at July 1, 2003 were
22,102 million.
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: 2nd July 2003 /s/ D. J. PEARL
..............................
D. J. PEARL
Deputy Company Secretary