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 24th April 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
First Quarter 2007
London 24 April 2007
FOR IMMEDIATE RELEASE
----------------------
First
First Fourth First Quarter
Quarter Quarter Quarter 2007 vs
2007 2006 2006 2006
=======================================
$million
Profit for the period* 4,664 2,880 5,623
Inventory holding (gains) losses (303) 1,015 (358)
---------------------------------------
Replacement cost profit 4,361 3,895 5,265 (17%)
=======================================
- per ordinary share (pence) 11.54 10.37 14.66
- per ordinary share (cents) 22.50 20.08 25.66 (12%)
- per ADS (dollars) 1.35 1.21 1.54
=======================================
- BP's first quarter replacement cost profit was $4,361 million, compared
with $5,265 million a year ago, a decrease of 17%.
- The first quarter result included a net non-operating gain of $363 million
compared with a net non-operating charge of $17 million in the first
quarter of 2006.
- Net cash provided by operating activities for the quarter was $8.0
billion compared with $8.9 billion a year ago.
- The effective tax rate on replacement cost profit of continuing
operations for the quarter was 35%; the rate was also 35% a year earlier.
- Net debt at the end of the quarter was $21.8 billion. The ratio of net
debt to net debt plus equity was 20% compared with 16% a year ago.
- Capital expenditure, excluding acquisitions, was $3.7 billion for the
quarter. Total capital expenditure and acquisitions was $4.8 billion, which
included $1.1 billion in respect of the acquisition of Chevron's Netherlands
manufacturing company. Capital expenditure excluding acquisitions is
expected to be around $18 billion for the year. Disposal proceeds were
$0.9 billion for the quarter.
- The quarterly dividend, to be paid in June, is 10.325 cents per share
($0.6195 per ADS) compared with 9.375 cents per share a year ago, an
increase of 10%. In sterling terms, the quarterly dividend is 5.151 pence
per share, compared with 5.251 pence per share a year ago, a decrease of 2%.
During the quarter, the company repurchased 238 million of its own shares
for cancellation at a cost of $2.5 billion.
* 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 9.
Analysis of Replacement Cost Profit and Reconciliation to Profit for the Period
--------------------------------------------------------------
First Fourth First
Quarter Quarter Quarter
2007 2006 2006
===============================
$ million
Exploration and Production 6,043 5,063 6,823
Refining and Marketing 838 312 1,612
Gas, Power and Renewables 206 470 301
Other businesses and corporate (116) (276) (217)
Consolidation adjustment 83 (103) (8)
-------------------------------
RC profit before interest and tax 7,054 5,466 8,511
-------------------------------
Finance costs and other finance expense (171) (149) (143)
Taxation (2,440) (1,347) (2,929)
Minority interest (82) (75) (71)
-------------------------------
RC profit from continuing operations attributable to BP
shareholders(a) 4,361 3,895 5,368
===============================
Inventory holding gains (losses) for continuing operations 303 (1,015) 358
-------------------------------
Profit for the period from continuing operations attributable to
BP shareholders 4,664 2,880 5,726
Profit (loss) for the period from Innovene operations(b) - - (103)
-------------------------------
Profit for the period attributable to BP shareholders 4,664 2,880 5,623
===============================
RC profit from continuing operations attributable to BP 4,361 3,895 5,368
shareholders
RC profit (loss) from Innovene operations - - (103)
-------------------------------
Replacement cost profit 4,361 3,895 5,265
===============================
(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 3.
Results include Non-operating Items
-----------------------------
First Fourth First
Quarter Quarter Quarter
2007 2006 2006
================================
$ million
Exploration and Production 748 (177) (386)
Refining and Marketing (229) (53) 564
Gas, Power and Renewables 9 215 (55)
Other businesses and corporate 34 (188) 9
--------------------------------
562 (203) 132
Taxation (199) 51 (46)
--------------------------------
Continuing operations 363 (152) 86
--------------------------------
Innovene operations - - (96)
Taxation - - (7)
--------------------------------
Total for all operations 363 (152) (17)
================================
An analysis of non-operating items by type is provided on page 19.
Per Share Amounts
----------------
First Fourth First
Quarter Quarter Quarter
2007 2006 2006
==================================
Results for the period ($ million)
Profit(a) 4,664 2,880 5,623
Replacement cost profit 4,361 3,895 5,265
----------------------------------
Shares in issue at period end (thousand)(b) 19,290,540 19,510,496 20,341,135
- ADS equivalent (thousand)(b) 3,215,090 3,251,749 3,390,189
Average number of shares outstanding (thousand)(b) 19,384,508 19,610,871 20,521,872
- ADS equivalent (thousand)(b) 3,230,751 3,268,479 3,420,312
Shares repurchased in the period (thousand) 237,916 310,385 349,079
Per ordinary share (cents)
Profit for the period 24.06 15.04 27.40
RC profit for the period 22.50 20.08 25.66
Per ADS (cents)
Profit for the period 144.36 90.24 164.40
RC profit for the period 135.00 120.48 153.96
----------------------------------
(a) Profit attributable to BP shareholders.
(b) Excludes treasury shares.
Dividends
--------
BP today announced a dividend of 10.325 cents per ordinary share to be paid in
June. Holders of ordinary shares will receive 5.151 pence per share and holders
of American Depository Receipts (ADRs) $0.6195 per ADS. The dividend is payable
on 4 June to shareholders on the register on 11 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 4 June.
First Fourth First
Quarter Quarter Quarter
2007 2006 2006
=================================
Dividends paid per ordinary share
cents 10.325 9.825 9.375
pence 5.258 5.241 5.288
Dividends per ADS (cents) 61.95 58.95 56.25
=================================
Net Debt Ratio - Net Debt: Net Debt + Equity
-----------------------------------
First Fourth First
Quarter Quarter Quarter
2007 2006 2006
=================================
$ million
Gross debt 23,728 24,010 18,679
Cash and cash equivalents 1,956 2,590 2,939
---------------------------------
Net debt 21,772 21,420 15,740
=================================
Equity 85,749 85,465 80,881
Net debt ratio 20% 20% 16%
=================================
Exploration and Production
----------------------
First Fourth First
Quarter Quarter Quarter
$ million 2007 2006 2006
=================================
Profit before interest and tax(a) 6,054 5,057 6,816
Inventory holding (gains) losses (11) 6 7
---------------------------------
Replacement cost profit before interest and tax 6,043 5,063 6,823
=================================
By region:
UK 1,062 1,534 1,165
Rest of Europe 720 249 303
US 1,652 952 2,311
Rest of World 2,609 2,328 3,044
---------------------------------
6,043 5,063 6,823
=================================
Results include:
Non-operating items
UK 145 289 (394)
Rest of Europe 533 (13) -
US (8) (269) 2
Rest of World 78 (184) 6
---------------------------------
748 (177) (386)
=================================
Exploration expense
UK 20 6 7
Rest of Europe - - -
US 77 324 66
Rest of World 59 78 116
---------------------------------
156 408 189
=================================
Production (net of royalties)(b)
Liquids (mb/d) (net of royalties)(c)
UK 236 239 281
Rest of Europe 59 57 68
US 526 533 566
Rest of World 1,625 1,587 1,618
---------------------------------
2,446 2,416 2,533
=================================
Natural gas (mmcf/d) (net of royalties)
UK 907 888 1,196
Rest of Europe 41 90 94
US 2,163 2,196 2,485
Rest of World 5,391 5,082 4,938
---------------------------------
8,502 8,256 8,713
=================================
Total hydrocarbons (mboe/d)(d)
UK 393 392 487
Rest of Europe 66 73 83
US 899 912 995
Rest of World 2,554 2,463 2,470
---------------------------------
3,912 3,840 4,035
=================================
Average realizations(e)
Total liquids ($/bbl) 53.43 54.13 55.88
Natural gas ($/mcf) 4.86 4.38 5.54
Total hydrocarbons ($/boe) 41.06 40.13 44.20
=================================
(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.
Exploration and Production
----------------------
The replacement cost profit before interest and tax for the first quarter was
$6,043 million, a decrease of 11% over the first quarter of 2006. This result
was impacted by lower oil and gas realizations and lower reported volumes,
reflecting the impact of the divestment activity in 2006. In addition, it
included higher costs, reflecting the impacts of sector-specific inflation,
increased integrity spend and higher depreciation charges. BP's share of income
from TNK-BP was negatively affected by lower prices and the adverse effect of
lagged tax reference prices.
The result included a net non-operating gain of $748 million, with the most
significant items being the gain on the sale of our assets in the Netherlands,
which completed on 31 January, and fair value gains on embedded derivatives
relating to North Sea gas contracts. The corresponding quarter in 2006
contained a net non-operating charge of $386 million.
After adjusting for the impact of divestments, production was flat compared with
the first quarter of 2006. Actual production was down 123 mboe/d. Full year
production in 2007 is expected to be in the range of 3.8 to 3.9 mmboe/d, in line
with the guidance given with our fourth quarter results.
During the quarter, we had our first lifting from the Dalia field in Angola,
with the field ramping up as planned, and the BTC pipeline celebrated the
loading of its 100 millionth barrel at the Ceyhan terminal. In Angola, the
Greater Plutonio FPSO has been successfully moored.
We continued our strong exploration track record in Angola with Miranda, our
13th successful well in Block 31, and made the Giza North gas discovery in
Egypt.
Since the end of the quarter, we have divested our interest in the Entrada field
in the deepwater Gulf of Mexico, and acquired an increased interest in the Badin
field in Pakistan in exchange for our ownership interest in the West Texas
Pipeline System.
Refining and Marketing
-------------------
First Fourth First
Quarter Quarter Quarter
2007 2006 2006
=================================
$ million
Profit (loss) before interest and tax(a) 1,129 (706) 2,038
Inventory holding (gains) losses (291) 1,018 (426)
---------------------------------
Replacement cost profit (loss) before interest and tax 838 312 1,612
=================================
By region:
UK (10) 190 (148)
Rest of Europe 298 336 564
US 122 (421) 637
Rest of World 428 207 559
---------------------------------
838 312 1,612
=================================
Results include:
Non-operating items
UK (163) 23 20
Rest of Europe (12) (89) 229
US (58) 25 96
Rest of World 4 (12) 219
---------------------------------
(229) (53) 564
=================================
Refinery throughputs (mb/d)
UK 148 188 111
Rest of Europe 640 660 639
US 1,152 1,052 976
Rest of World 292 294 296
---------------------------------
Total throughput 2,232 2,194 2,022
=================================
Refining availability (%)(b) 81.6 81.6 79.9
=================================
Oil sales volumes (mb/d)
Refined products
UK 335 354 345
Rest of Europe 1,246 1,368 1,315
US 1,564 1,541 1,599
Rest of World 624 601 567
---------------------------------
Total marketing sales 3,769 3,864 3,826
Trading/supply sales 2,026 1,920 2,204
---------------------------------
Total refined product sales 5,795 5,784 6,030
Crude oil 2,017 1,959 2,571
---------------------------------
Total oil sales 7,812 7,743 8,601
=================================
Global Indicator Refining Margin ($/bbl)(c)
NWE 4.16 2.49 2.88
USGC 10.14 7.92 10.86
Midwest 7.62 5.42 4.89
USWC 22.21 14.59 11.22
Singapore 4.84 2.95 3.54
BP Average 9.45 6.30 6.28
=================================
Chemicals production (kte)
UK 256 159 303
Rest of Europe 748 797 842
US 1,076 976 789
Rest of World 1,520 1,357 1,687
---------------------------------
Total production 3,600 3,289 3,621
=================================
(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 first quarter was
$838 million compared with $1,612 million for the same period last year. The
quarter's result included a net non-operating charge of $229 million, primarily
in respect of asset impairments. This compares with a net non-operating gain of
$564 million for the same period last year.
Compared with the first quarter of 2006, our result benefited from a stronger
operating environment for both refining and marketing. However, the benefit of
higher refining throughput at Texas City during the quarter was more than offset
by the impact of operational issues at a number of our other refineries,
particularly in the US. In addition, the quarter's result reflects a significant
IFRS fair value accounting charge, lower supply optimization benefits and
greater integrity spend.
The refining throughputs for the quarter were 2,232 mb/d compared with 2,022 mb/
d for the same quarter last year. The improvement in throughputs was mainly due
to the partial resumption of operations at the Texas City refinery. Excluding
the Texas City refinery, refining availability for the first quarter of 2007 was
94.6% compared with 96.0% in the first quarter of 2006. Marketing sales were
3,769 mb/d compared with 3,826 mb/d for the corresponding period in 2006,
reflecting lower heating oil demand in Europe caused by relatively mild winter
weather.
On 31 March 2007, BP completed its acquisition of Chevron's Netherlands
manufacturing company, Texaco Raffinaderij Pernis B.V., for $1.1 billion.
BP agreed to sell, subject to required regulatory approvals, its Coryton
Refinery in Essex, UK, to Petroplus Holdings AG for consideration of $1.4
billion, plus working capital. Furthermore, BP announced its intention to sell
its ethyl acetate and vinyl acetate monomer manufacturing units at Saltend, near
Hull, UK.
BP announced it had selected the University of California Berkeley, and its
partners the University of Illinois at Urbana-Champaign and the Lawrence
Berkeley National Laboratory, to join in the previously announced $500 million
research programme to explore how bioscience can be used to increase energy
production and reduce the impact of energy consumption on the environment.
Late in the quarter, operational issues at the Whiting Refinery have reduced
throughput to around 200,000 barrels per day, about half its capacity, and
limited the crude slate to primarily sweet grades. This will continue until we
complete the necessary repairs.
Gas, Power and Renewables
-----------------------
First Fourth First
Quarter Quarter Quarter
2007 2006 2006
===============================
Profit before interest and tax(a) 206 468 238
Inventory holding (gains) losses - 2 63
-------------------------------
Replacement cost profit before interest and tax 206 470 301
===============================
By region:
UK 48 147 (72)
Rest of Europe 7 143 1
US 26 114 178
Rest of World 125 66 194
-------------------------------
206 470 301
===============================
Results include:
Non-operating items
UK 7 56 (55)
Rest of Europe - 189 -
US 1 - -
Rest of World 1 (30) -
-------------------------------
9 215 (55)
===============================
(a) Profit from continuing operations and includes profit after interest and
tax of equity-accounted entities.
The replacement cost profit before interest and tax for the first quarter was
$206 million compared with $301 million a year ago. The non-operating gain for
the first quarter comprises fair value gains on embedded derivatives of $7
million and a net gain of $2 million on the sale of assets. The corresponding
quarter in 2006 included a fair value loss of $55 million on embedded
derivatives.
The first quarter's result was significantly lower than the same period in 2006,
primarily due to a lower contribution from the marketing and trading business,
partially offset by strong operating performance from the NGL's business,
particularly in Canada, a positive impact in respect of non-operating items and
a benefit due to the absence of last year's IFRS fair value accounting charge.
In March, BP Solar began construction of two mega cell plants, one at its
European headquarters in Madrid, Spain and the second at its joint venture
facility, Tata BP Solar, in Bangalore, India. Also, we expect to begin
construction of a wind power generation project in India and five wind power
generation projects in the US, located in California, Colorado, North Dakota and
Texas, in 2007. These projects are expected to deliver a combined generation
capacity of more than 500 megawatts. During the quarter, China's first LNG
terminal at Guangdong (BP 30%) reached the milestone of receiving 1 million
tonnes of LNG, which is supplied to power, industrial and residential customers
in Southeast China.
Other Businesses and Corporate
--------------------------
First Fourth First
Quarter Quarter Quarter
2007 2006 2006
===============================
$ million
Profit (loss) before interest and tax(a) (115) (265) (215)
Inventory holding (gains) losses (1) (11) (2)
-------------------------------
Replacement cost profit (loss) before interest and tax (116) (276) (217)
===============================
By region:
UK (46) 280 (141)
Rest of Europe 21 (97) (3)
US (114) (319) (104)
Rest of World 23 (140) 31
-------------------------------
(116) (276) (217)
===============================
Results include:
Non-operating items
UK - 13 -
Rest of Europe 28 (2) -
US 6 (199) 9
Rest of World - - -
-------------------------------
34 (188) 9
===============================
(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 first quarter's
result includes a net gain of $34 million in respect of non-operating items.
Cautionary Statement: The foregoing discussion contains forward looking
statements particularly those regarding capital expenditure, production and the
construction of wind power generation projects and their expected combined
generation 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; political stability and
economic growth in relevant areas of the world; changes in laws and governmental
regulations; 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
-------------------------------
First Fourth First
Quarter Quarter Quarter
2007 2006 2006
===============================
$ million
Sales and other operating revenues (Note 4) 61,307 61,946 63,288
Earnings from jointly controlled entities - after interest and tax 333 284 573
Earnings from associates - after interest and tax 163 125 115
Interest and other revenues 233 177 198
-------------------------------
Total revenues 62,036 62,532 64,174
Gains on sale of businesses and fixed assets 680 300 597
-------------------------------
Total revenues and other income 62,716 62,832 64,771
Purchases 42,660 44,506 43,819
Production and manufacturing expenses 5,752 6,425 5,217
Production and similar taxes (Note 5) 747 632 932
Depreciation, depletion and amortization 2,519 2,441 2,184
Impairment and losses on sale of businesses and fixed assets 223 60 23
Exploration expense 156 408 189
Distribution and administration expenses 3,457 4,205 3,096
Fair value (gain) loss on embedded derivatives (155) (296) 442
-------------------------------
Profit before interest and taxation from continuing operations 7,357 4,451 8,869
Finance costs (Note 6) 264 205 191
Other finance income (Note 7) (93) (56) (48)
-------------------------------
Profit before taxation from continuing operations 7,186 4,302 8,726
Taxation 2,440 1,347 2,929
-------------------------------
Profit from continuing operations 4,746 2,955 5,797
Profit (loss) from Innovene operations (Note 3) - - (103)
-------------------------------
Profit for the period 4,746 2,955 5,694
-------------------------------
Attributable to:
BP shareholders 4,664 2,880 5,623
Minority interest 82 75 71
-------------------------------
4,746 2,955 5,694
===============================
Earnings per share - cents
Profit for the period attributable to BP shareholders
Basic 24.06 15.04 27.40
Diluted 23.94 14.88 27.13
Profit from continuing operations attributable to BP shareholders
Basic 24.06 15.04 27.90
Diluted 23.94 14.88 27.63
Summarized Group Balance Sheet
----------------------------
31 March 31 December
2007 2006
===========================
$ million
Non-current assets
Property, plant and equipment 92,307 90,999
Goodwill 10,991 10,780
Intangible assets 5,667 5,246
Investments in jointly controlled entities 15,159 15,074
Investments in associates 6,064 5,975
Other investments 1,595 1,697
---------------------------
Fixed assets 131,783 129,771
Loans 769 817
Other receivables 931 862
Derivative financial instruments 2,486 3,025
Prepayments and accrued income 1,025 1,034
Defined benefit pension plan surplus 6,950 6,753
---------------------------
143,944 142,262
---------------------------
Current assets
Loans 175 141
Inventories 19,812 18,915
Trade and other receivables 38,819 38,692
Derivative financial instruments 7,550 10,373
Prepayments and accrued income 3,392 3,006
Current tax receivable 95 544
Cash and cash equivalents 1,956 2,590
---------------------------
71,799 74,261
Assets classified as held for sale 1,113 1,078
---------------------------
72,912 75,339
---------------------------
Total assets 216,856 217,601
===========================
Current liabilities
Trade and other payables 43,681 42,236
Derivative financial instruments 7,508 9,424
Accruals and deferred income 5,467 6,147
Finance debt 11,597 12,924
Current tax payable 3,322 2,635
Provisions 1,934 1,932
---------------------------
73,509 75,298
Liabilities directly associated with the assets classified as held for - 54
sale
---------------------------
73,509 75,352
---------------------------
Non-current liabilities
Other payables 1,319 1,430
Derivative financial instruments 3,626 4,203
Accruals and deferred income 949 961
Finance debt 12,131 11,086
Deferred tax liabilities 18,593 18,116
Provisions 11,655 11,712
Defined benefit pension plan and other
post-retirement benefit plan deficits 9,325 9,276
---------------------------
57,598 56,784
---------------------------
Total liabilities 131,107 132,136
---------------------------
Net assets 85,749 85,465
===========================
Equity
BP shareholders' equity 84,874 84,624
Minority interest 875 841
---------------------------
85,749 85,465
===========================
Group Statement of Recognized Income and Expense
------------------------------------------
First Fourth First
Quarter Quarter Quarter
2007 2006 2006
===============================
$ million
Currency translation differences 174 1,032 153
Exchange gain on translation of foreign operations transferred to
gain on sale of businesses and fixed assets (19) - -
Actuarial gain relating to pensions and other post-retirement - 2,615 -
benefits
Available-for-sale investments marked to market (109) 264 197
Available-for-sale investments - recycled to the income statement - (269) (346)
Cash flow hedges marked to market 28 141 57
Cash flow hedges - recycled to the income statement (60) (143) 57
Cash flow hedges - recycled to the balance sheet (7) (11) -
Taxation (77) (814) 61
-------------------------------
Net income (expense) recognized directly in equity (70) 2,815 179
Profit for the period 4,746 2,955 5,694
-------------------------------
Total recognized income and expense for the period 4,676 5,770 5,873
===============================
Attributable to:
BP shareholders 4,578 5,646 5,802
Minority interest 98 124 71
-------------------------------
4,676 5,770 5,873
===============================
Movement in BP Shareholders' Equity
-------------------------------
$ million
Movement in BP shareholders' equity
At 31 December 2006 84,624
Profit for the period 4,664
Distribution to shareholders (2,001)
Currency translation differences (net of tax) 142
Exchange gain on translation of foreign operations
transferred to gain on sale (net of tax) (19)
Share-based payments (net of tax) 104
Repurchase of ordinary share capital (2,499)
Available-for-sale investments (net of tax) (121)
Cash flow hedges (net of tax) (20)
-------------
At 31 March 2007 84,874
=============
Summarized Group Cash Flow Statement
---------------------------------
First Fourth First
Quarter Quarter Quarter
2007 2006 2006
===============================
$ million
Operating activities
Profit before taxation from continuing operations 7,186 4,302 8,726
Adjustments to reconcile profits before tax to net cash
provided by operating activities
Exploration expenditure written off 55 265 114
Depreciation, depletion and amortization 2,519 2,441 2,184
Impairment and (gain) loss on sale of businesses and fixed assets (457) (240) (574)
Earnings from jointly controlled entities and associates (496) (409) (688)
Dividends received from jointly controlled entities and associates 229 809 1,011
Working capital and other movements (1,058) (2,198) (1,850)
-------------------------------
Net cash provided by operating activities(a) 7,978 4,970 8,923
-------------------------------
Investing activities
Capital expenditure (3,645) (4,473) (3,295)
Acquisitions, net of cash acquired (1,087) (127) -
Investment in jointly controlled entities (9) (11) -
Investment in associates (44) (103) (157)
Proceeds from disposal of fixed assets 310 918 484
Proceeds from disposal of businesses, net of cash disposed 608 (100) 166
Proceeds from loan repayments 45 26 72
-------------------------------
Net cash used in investing activities (3,822) (3,870) (2,730)
-------------------------------
Financing activities
Net repurchase of shares (2,402) (3,449) (3,861)
Proceeds from long-term financing 1,358 2,215 396
Repayments of long-term financing (1,134) (1,874) (65)
Net increase (decrease) in short-term debt (558) 3,348 (710)
Dividends paid - BP shareholders (2,001) (1,927) (1,922)
- Minority interest (64) (72) (66)
-------------------------------
Net cash used in financing activities (4,801) (1,759) (6,228)
-------------------------------
Currency translation differences relating to cash and
cash equivalents 11 50 14
-------------------------------
Increase (decrease) in cash and cash equivalents (634) (609) (21)
Cash and cash equivalents at beginning of period 2,590 3,199 2,960
-------------------------------
Cash and cash equivalents at end of period 1,956 2,590 2,939
===============================
(a) Operating cash flow is calculated from the starting point of profit before
taxation which includes inventory holding gains and losses. Operating cash flow
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 products prices.
Summarized Group Cash Flow Statement
---------------------------------
First Fourth First
Quarter Quarter Quarter
2007 2006 2006
===============================
$ million
Working capital and other movements
Interest receivable (95) (80) (130)
Interest received 85 89 146
Finance costs 264 205 191
Interest paid (333) (314) (310)
Other finance income (93) (56) (48)
Share-based payments 75 77 83
Net operating charge for pensions and other
post-retirement benefits, less contributions (87) (128) (50)
Net charge for provisions, less payments (157) 446 (207)
(Increase) decrease in inventories (648) 861 1,008
(Increase) decrease in other current and non-current assets 3,139 2,869 335
Increase (decrease) in other current and non-current liabilities (2,000) (2,476) (107)
Income taxes paid (1,208) (3,691) (2,761)
-------------------------------
(1,058) (2,198) (1,850)
===============================
Capital Expenditure and Acquisitions
------------------------------
First Fourth First
Quarter Quarter Quarter
2007 2006 2006
===============================
$ million
By business
Exploration and Production
UK 221 309 182
Rest of Europe 87 49 69
US 1,050 1,234 1,021
Rest of World 1,638 1,905 1,428
-------------------------------
2,996 3,497 2,700
-------------------------------
Refining and Marketing
UK 73 217 61
Rest of Europe(a) 1,210 395 65
US 269 540 258
Rest of World 80 334 107
-------------------------------
1,632 1,486 491
-------------------------------
Gas, Power and Renewables
UK 7 43 1
Rest of Europe(a) 7 18 5
US 36 268 20
Rest of World 13 35 14
-------------------------------
63 364 40
-------------------------------
Other businesses and corporate
UK 35 66 19
Rest of Europe 2 - -
US 32 21 8
Rest of World - 3 -
-------------------------------
69 90 27
-------------------------------
4,760 5,437 3,258
===============================
By geographical area
UK 336 635 263
Rest of Europe 1,306 462 139
US 1,387 2,063 1,307
Rest of World 1,731 2,277 1,549
-------------------------------
4,760 5,437 3,258
===============================
Included above:
Acquisitions and asset exchanges(a) 1,113 205 10
===============================
(a) First quarter 2007 includes $1,108 million for the acquisition of Chevron's
Netherlands manufacturing company.
Exchange rates
US dollar/sterling average rate for the period 1.95 1.91 1.75
US dollar/sterling period-end rate 1.96 1.96 1.75
US dollar/euro average rate for the period 1.31 1.29 1.20
US dollar/euro period-end rate 1.33 1.31 1.21
-------------------------------
Analysis of Profit Before Interest and Tax
---------------------------------
First Fourth First
Quarter Quarter Quarter
2007 2006 2006
===============================
$ million
By business
Exploration and Production
UK 1,062 1,534 1,165
Rest of Europe 720 249 303
US 1,663 948 2,304
Rest of World 2,609 2,326 3,044
-------------------------------
6,054 5,057 6,816
-------------------------------
Refining and Marketing
UK (64) 28 (155)
Rest of Europe 481 261 686
US 289 (951) 828
Rest of World 423 (44) 679
-------------------------------
1,129 (706) 2,038
-------------------------------
Gas, Power and Renewables
UK 48 147 (72)
Rest of Europe 7 144 7
US 24 116 168
Rest of World 127 61 135
-------------------------------
206 468 238
-------------------------------
Other businesses and corporate
UK (46) 280 (141)
Rest of Europe 21 (98) (1)
US (113) (307) (104)
Rest of World 23 (140) 31
-------------------------------
(115) (265) (215)
-------------------------------
7,274 4,554 8,877
Consolidation adjustment 83 (103) (8)
-------------------------------
Total for continuing operations 7,357 4,451 8,869
-------------------------------
Innovene operations
UK - (40) (55)
Rest of Europe - 25 (21)
US - 15 7
Rest of World - - (27)
-------------------------------
Total for Innovene operations - - (96)
-------------------------------
Total for period 7,357 4,451 8,773
===============================
By geographical area
UK 998 1,988 772
Rest of Europe 1,245 533 995
US 1,932 (289) 3,245
Rest of World 3,182 2,219 3,857
-------------------------------
Total for continuing operations 7,357 4,451 8,869
===============================
Analysis of Replacement Cost Profit
Before Interest and Tax
-----------------------------
First Fourth First
Quarter Quarter Quarter
2007 2006 2006
===============================
$ million
By business
Exploration and Production
UK 1,062 1,534 1,165
Rest of Europe 720 249 303
US 1,652 952 2,311
Rest of World 2,609 2,328 3,044
-------------------------------
6,043 5,063 6,823
-------------------------------
Refining and Marketing
UK (10) 190 (148)
Rest of Europe 298 336 564
US 122 (421) 637
Rest of World 428 207 559
-------------------------------
838 312 1,612
-------------------------------
Gas, Power and Renewables
UK 48 147 (72)
Rest of Europe 7 143 1
US 26 114 178
Rest of World 125 66 194
-------------------------------
206 470 301
-------------------------------
Other businesses and corporate
UK (46) 280 (141)
Rest of Europe 21 (97) (3)
US (114) (319) (104)
Rest of World 23 (140) 31
-------------------------------
(116) (276) (217)
-------------------------------
6,971 5,569 8,519
Consolidation adjustment 83 (103) (8)
-------------------------------
Total for continuing operations 7,054 5,466 8,511
-------------------------------
Innovene operations
UK - (40) (55)
Rest of Europe - 25 (21)
US - 15 7
Rest of World - - (27)
-------------------------------
Total for Innovene operations - - (96)
-------------------------------
Total for period 7,054 5,466 8,415
===============================
By geographical area
UK 1,052 2,150 779
Rest of Europe 1,061 609 865
US 1,756 230 3,071
Rest of World 3,185 2,477 3,796
-------------------------------
Total for continuing operations 7,054 5,466 8,511
===============================
Analysis of Non-operating Items
--------------------------
First Fourth First
Quarter Quarter Quarter
2007 2006 2006
================================
$ million
By business
Exploration and Production
Impairment and gain (loss) on sale of businesses and fixed assets 603 16 9
Environmental and other provisions - - -
Restructuring, integration and rationalization costs - - -
Fair value gain (loss) on embedded derivatives 145 240 (395)
Other - (433) -
--------------------------------
748 (177) (386)
--------------------------------
Refining and Marketing
Impairment and gain (loss) on sale of businesses and fixed assets (179) 51 564
Environmental and other provisions - - -
Restructuring, integration and rationalization costs - - -
Fair value gain (loss) on embedded derivatives - - -
Other (50) (104) -
--------------------------------
(229) (53) 564
--------------------------------
Gas, Power and Renewables
Impairment and gain (loss) on sale of businesses and fixed assets 2 159 -
Environmental and other provisions - - -
Restructuring, integration and rationalization costs - - -
Fair value gain (loss) on embedded derivatives 7 56 (55)
Other - - -
--------------------------------
9 215 (55)
--------------------------------
Other businesses and corporate
Impairment and gain (loss) on sale of businesses and fixed assets 31 14 1
Environmental and other provisions - (2) -
Restructuring, integration and rationalization costs - - -
Fair value gain (loss) on embedded derivatives 3 - 8
Other - (200) -
--------------------------------
34 (188) 9
--------------------------------
Total before taxation for continuing operations 562 (203) 132
Taxation credit (charge) (199) 51 (46)
--------------------------------
Total after taxation for continuing operations 363 (152) 86
--------------------------------
Innovene operations
Total before taxation for Innovene operations(a) - - (96)
Taxation credit (charge) - - (7)
--------------------------------
Total after taxation for Innovene operations - - (103)
--------------------------------
Total after taxation for period 363 (152) (17)
================================
(a) Loss on remeasurement to fair value in the first quarter of 2006.
Realizations and Marker Prices
-------------------------
First Fourth First
Quarter Quarter Quarter
2007 2006 2006
===============================
Average realizations(a)
Liquids ($/bbl)(b)
UK 55.42 56.18 60.00
US 51.62 52.11 53.79
Rest of World 54.09 54.63 55.02
BP Average 53.43 54.13 55.88
===============================
Natural gas ($/mcf)
UK 7.28 5.61 7.87
US 5.76 5.03 6.91
Rest of World 3.90 3.70 3.94
BP Average 4.86 4.38 5.54
===============================
Average oil marker prices ($/bbl)
Brent 57.76 59.60 61.79
West Texas Intermediate 58.05 59.90 63.29
Alaska North Slope US West Coast 55.78 55.47 60.89
Urals (NWE- cif) 54.36 56.06 58.15
Urals (Med- cif) 54.26 56.48 58.26
Russian domestic oil 27.33 26.33 35.27
===============================
Average natural gas marker prices
Henry Hub gas price ($/mmbtu)(c) 6.77 6.56 9.01
UK Gas - National Balancing Point (p/therm) 22.33 29.92 70.00
===============================
(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. 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. Changes to comparatives
In 2005 the basis of accounting for over-the-counter forward sale and
purchase contracts for oil, natural gas, NGLs and power was changed.
Certain transactions are now reported on a net basis in sales and other
operating revenues, whereas previously they had been reported gross in sales and
purchases. This change, while reducing sales and other operating revenues and
purchases, had no impact on reported profit, profit per ordinary share, cash
flow or the balance sheet.
During 2006, as part of a continuous process to review how individual contracts
are accounted for, certain other minor adjustments were identified that should
have been reflected in the restatement from gross to net presentation. Though
these adjustments are not significant to the group income statement, the
amendment has been made to bring the comparatives onto a consistent basis. The
comparative figures have been amended to reflect these items as set out below.
Amended Reported
----------------------------
First First
Quarter Quarter
2006 2006
----------------------------
$ million
Sales and other operating revenues
Exploration and Production 13,918 13,918
Refining and Marketing 54,537 56,605
Gas, Power and Renewables 6,553 8,279
Other businesses and corporate 206 206
----------------------------
75,214 79,008
Less: sales between businesses 11,926 11,926
----------------------------
Total third party sales 63,288 67,082
============================
Purchases 43,819 47,613
============================
3. 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. First quarter 2006 included
a loss of $103 million related to post-closing adjustments.
First Fourth First
Quarter Quarter Quarter
2007 2006 2006
===============================
$ million
Loss recognized on the remeasurement to fair value - - (96)
Taxation - - (7)
-------------------------------
Profit (loss) from Innovene operations - - (103)
===============================
Earnings (loss) per share from Innovene operations -
cents
Basic - - (0.50)
Diluted - - (0.50)
===============================
Notes
-----
4. Sales and other operating revenues
First Fourth First
Quarter Quarter Quarter
2007 2006 2006
===============================
$ million
By business
Exploration and Production 12,219 12,255 13,918
Refining and Marketing 53,119 53,776 54,537
Gas, Power and Renewables 5,613 5,224 6,553
Other businesses and corporate 206 339 206
-------------------------------
71,157 71,594 75,214
Less: sales between businesses 9,850 9,648 11,926
-------------------------------
Total third party sales 61,307 61,946 63,288
===============================
By geographical area
UK 24,055 23,676 27,733
Rest of Europe 16,588 18,576 18,374
US 23,034 23,368 22,066
Rest of World 16,844 16,768 18,375
-------------------------------
80,521 82,388 86,548
Less: sales between areas 19,214 20,442 23,260
-------------------------------
Total third party sales 61,307 61,946 63,288
===============================
5. Profit before interest and taxation is after charging:
First Fourth First
Quarter Quarter Quarter
2007 2006 2006
===============================
$ million
Production and similar taxes
UK 67 (143) 235
Overseas 680 775 697
-------------------------------
747 632 932
===============================
6. Finance costs
First Fourth First
Quarter Quarter Quarter
2007 2006 2006
===============================
$ million
Interest payable 347 290 293
Capitalized (83) (85) (102)
-------------------------------
264 205 191
===============================
Notes
-----
7. Other finance income
First Fourth First
Quarter Quarter Quarter
2007 2006 2006
===============================
$ million
Interest on pension and other post-retirement
benefit plan liabilities 538 496 471
Expected return on pension and other
post-retirement benefit plan assets (698) (619) (582)
-------------------------------
Interest net of expected return on plan assets (160) (123) (111)
Unwinding of discount on provisions 67 67 54
Unwinding of discount on deferred consideration
for acquisition of investment in TNK-BP - - 9
-------------------------------
(93) (56) (48)
===============================
8. Analysis of changes in net debt
First Fourth First
Quarter Quarter Quarter
2007 2006 2006
===============================
$ million
Opening balance
Finance debt 24,010 19,973 19,162
Less: Cash and cash equivalents 2,590 3,199 2,960
-------------------------------
Opening net debt 21,420 16,774 16,202
-------------------------------
Closing balance
Finance debt 23,728 24,010 18,679
Less: Cash and cash equivalents 1,956 2,590 2,939
-------------------------------
Closing net debt 21,772 21,420 15,740
-------------------------------
Decrease (increase) in net debt (352) (4,646) 462
===============================
Movement in cash and cash equivalents
(excluding exchange adjustments) (645) (659) (35)
Net cash outflow (inflow) from financing
(excluding share capital) 334 (3,689) 379
Fair value hedge adjustment (30) (208) 82
Debt acquired - (13) -
Other movements (11) (57) 32
-------------------------------
Movement in net debt before exchange effects (352) (4,626) 458
Exchange adjustments - (20) 4
-------------------------------
Decrease (increase) in net debt (352) (4,646) 462
===============================
Notes
-----
9. TNK-BP Operational and Financial Information
First Fourth First
Quarter Quarter Quarter
2007 2006 2006
===============================
Production (Net of royalties) (BP share)
Crude oil (mb/d) 832 837 896
Natural gas (mmcf/d) 566 602 567
Total hydrocarbons (mboe/d)(a) 930 941 994
===============================
$ million
Income statement (BP share)
Profit before interest and tax 356 359 852
Interest expense ... (61) (52) (43)
Taxation (103) (118) (350)
Minority interest (30) (6) (41)
-------------------------------
Net Income 162 183 418
===============================
.... Excludes unwinding of discount on deferred consideration - - 9
===============================
Cash Flow
Dividends received(b) - 500 771
===============================
Balance Sheet 31 March 31 December
2007 2006
==========================
Investments in jointly controlled entities 8,381 8,353
==========================
(a) Natural gas is converted to oil equivalent at 5.8 billion cubic
feet = 1 million barrels.
(b) First quarter 2006 includes $771 million declared in fourth
quarter 2005.
10. Second quarter results
BP's second quarter results will be announced on 24 July 2007.
11. 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: 24th April 2007 /s/ D. J. PEARL
..............................
D. J. PEARL
Deputy Company Secretary