Report of a Foreign Private Issuer · Form 6-K
Filing Table of Contents
Document/Exhibit Description Pages Size
1: 6-K 3rd Quarter Results 68± 159K
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 29 October 2002
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 2002
London 29 October 2002
FOR IMMEDIATE RELEASE
UNDERLYING PERFORMANCE IMPROVEMENT CONTINUES
---------------------------------------------------------------------------
[Download Table]
Third Second Third
Quarter Quarter Quarter Nine Months
2001 2002 2002 $ million 2002 2001 %
======================= ====================
Replacement cost profit
1,936 1,293 761 before exceptional items 2,978 7,585
79 351 556 Special items(a) 1,027 222
630 537 977 Acquisition amortization(b) 2,052 1,981
----------------------- --------------------
Pro forma result adjusted
2,645 2,181 2,294 for special items 6,057 9,788 (38)
======================= ====================
8.20 6.71 6.61 - per ordinary share (pence) 18.26 30.28 (40)
11.80 9.72 10.24 - per ordinary share (cents) 27.02 43.60 (38)
0.71 0.59 0.61 - per ADS (dollars) 1.62 2.62
======================= ====================
o BP's third quarter pro forma result, adjusted for special items, was
$2,294 million, compared with $2,645 million a year ago, a reduction of
13%. For the nine months, the result was $6,057 million compared to
$9,788 million, down 38%. Replacement cost profit, before exceptional
items, for the third quarter and nine months was $761 million and
$2,978 million respectively, compared with $1,936 million and $7,585
million a year ago.
o The third quarter trading environment was similar to a year ago for
Exploration and Production but less favourable for Refining and
Marketing. The nine months trading environment was significantly less
favourable than a year ago for both businesses.
o Underlying performance improvements were $0.8 billion before tax for
the nine months. The outcome for the year is expected to be in the
range of $1.2-$1.4 billion. Hydrocarbon production increased by around
4% and 3% for the third quarter and nine months respectively. The
increase for the year is expected to be about 3%.
o There were significant exceptional and special items in the third
quarter. Exceptional profits after tax of $1,769 million were
principally related to the sale of BP's interest in Ruhrgas. Special
charges after tax were $556 million, comprising mainly impairment
charges and a provision. In addition, there was accelerated acquisition
amortization of $405 million, reflecting impairment of former ARCO
assets.
o Return on average capital employed for the nine months, on a pro forma
basis adjusted for special items, was 13% compared with 22% in 2001.
o Quarterly dividend is 6.0 cents per share ($0.36 per ADS). This
compares with 5.5 cents a year ago. For the nine months the dividend
showed an increase of 9%. In sterling terms, the quarterly dividend is
3.897 pence per share compared with 3.805 pence a year ago; for the
nine months the increase was 4%. The company purchased for cancellation
100 million of its own shares during the quarter, at a cost of
$750 million.
BP Group Chief Executive, Lord Browne, said:
"Our trading environment has shown little improvement overall and, for
the nine months, is well down on a year ago. Performance improvements
have been impacted by weaker than expected production."
The pro forma result, adjusted for special items, has been derived from the
group's reported UK GAAP accounting information but is not in itself a
recognized UK or US GAAP measure. This financial performance information and
measures derived therefrom, shown above and elsewhere in the document, are
provided in order to enable investors to evaluate better both BP's current
performance, in the context of past performance, and its performance against
that of its competitors.
(a) The special items refer to non-recurring charges and credits. Further
details are shown on page 3.
(b) Acquisition amortization is depreciation and amortization relating to
the fixed asset revaluation adjustments and goodwill consequent upon
the ARCO and Burmah Castrol acquisitions. The third quarter 2002
includes accelerated depreciation of the revaluation adjustment in
respect of the impairment of former ARCO assets.
Summary Quarterly Results
Exploration and Production's third quarter result was similar to a year ago with
higher production and stronger oil realizations offset by weaker gas
realizations. Total hydrocarbon production for the quarter was up around 4% on a
year ago. There were new discoveries in Angola, Trinidad and the Gulf of Mexico.
In Gas, Power and Renewables, the result reflected less favourable marketing and
trading conditions and the sale of the Ruhrgas interest, partly offset by an
improved NGL result.
The Refining and Marketing result decreased significantly, primarily reflecting
lower worldwide refining margins than a year ago.
The Chemicals result was slightly above the prior quarter's, primarily due to
reduced fixed costs.
Interest expense for the quarter was $300 million, compared to $314 million for
the prior quarter, reflecting lower average debt.
The pro forma effective tax rate on replacement cost profit, before exceptional
items, and adjusted for special items, was 34.5% compared to 35.4% a year ago.
The effective tax rate on special items was 49%, reflecting the tax relief
expected on the asset impairments in Exploration and Production and related
restructuring.
Capital expenditure, was $3.2 billion for the quarter. There were no significant
acquisitions in the third quarter. Disposal proceeds were $2.9 billion,
including $2.3 billion for the sale of the Ruhrgas interest.
Net cash outflow was $523 million, compared to an inflow of $905 million a year
ago. Higher disposal proceeds were more than offset by the payment for the
remaining interest in Veba and lower operating cash flow.
Net debt at the end of the quarter was $21.0 billion. The pro forma ratio of net
debt to net debt plus equity was 29%.
---------
The financial information for 2001 has been restated to reflect (i) the adoption
by the group of FRS 19 'Deferred Tax' with effect from 1 January 2002; and (ii)
the transfer of the solar, renewables and alternative fuels activities from
Other businesses and corporate to Gas and Power on 1 January 2002. To reflect
this transfer, Gas and Power has been renamed Gas, Power and Renewables from the
same date. See Note 1 on page 20 for further information.
The commentaries above and following are based on the pro forma replacement cost
operating results, before exceptional items, adjusted for special items.
Reconciliation of Reported Results to
Pro Forma Results Adjusted for Special Items
[Download Table]
Pro Forma Result Pro Forma Result
adjusted for ----- 3Q 2002 --------------- adjusted for
special items special items
-------------------
3Q 2Q 3Q Special Acq. Reported Nine months
2001 2002 2002 Items* Amort+ Earnings $ million 2002 2001
=========================================== ==============
Exploration and
3,070 2,889 3,050 703 775 1,572 Production 8,339 12,124
Gas, Power
125 114 87 30 - 57 and Renewables 312 386
Refining and
1,289 685 522 83 202 237 Marketing 1,494 4,045
113 246 272 140 - 132 Chemicals 626 203
Other businesses
(117) (128) (116) 125 - (241) and corporate (369) (348)
------------------------------------------- --------------
RC operating
4,480 3,806 3,815 1,081 977 1,757 profit 10,402 16,410
------------------------------------------- --------------
(367) (314) (300) - - (300)Interest expense (947) (1,194)
(1,456)(1,243)(1,213) (525) - (688)Taxation (3,313) (5,390)
(12) (68) (8) - - (8)MSI (85) (38)
------------------------------------------- --------------
RC profit before
2,645 2,181 2,294 556 977 761 exceptional items 6,057 9,788
------------------------------------------- --------------
1,794 Exceptional items before tax
(25)Taxation on exceptional items
-----
2,530 RC profit after exceptional items
305 Stock holding gains
-----
2,835 HC profit
=====
* The special items refer to non-recurring charges and credits. The special
items for the third quarter include impairment charges and restructuring
costs in Exploration and Production, an impairment charge in Gas, Power
and Renewables, integration and certain other costs in Refining and
Marketing, an impairment charge in Chemicals, and a provision to cover
future rental payments on surplus leasehold office accommodation in Other
Businesses and Corporate.
+ Acquisition amortization is depreciation and amortization relating to the
fixed asset revaluation adjustments and goodwill consequent upon the ARCO
and Burmah Castrol acquisitions. The third quarter 2002 includes
accelerated depreciation of the revaluation adjustment in respect of the
impairment of former ARCO assets.
Operating Results
[Download Table]
Third Second Third
Quarter Quarter Quarter Nine Months
2001 2002 2002 2002 2001
======================= ==============
Replacement cost
3,730 3,250 1,757 operating profit ($m) 7,065 14,147
----------------------- --------------
Replacement cost profit
1,936 1,293 761 before exceptional items ($m) 2,978 7,585
----------------------- --------------
Profit after exceptional items ($m)
1,993 1,509 2,530 Replacement cost 4,893 7,762
1,588 2,040 2,835 Historical cost 6,171 7,159
----------------------- --------------
Per ordinary share (cents)
Pro forma result
11.80 9.72 10.24 adjusted for special items 27.02 43.60
RC profit before
8.63 5.77 3.39 exceptional items 13.28 33.78
7.09 9.10 12.65 HC profit after exceptional items 27.53 31.89
Per ADS (cents)
Pro forma result
70.80 58.32 61.44 adjusted for special items 162.12 261.60
RC profit before
51.78 34.62 20.34 exceptional items 79.68 202.68
42.54 54.60 75.90 HC profit after exceptional items 165.18 191.34
----------------------- --------------
Exploration and Production
[Download Table]
3Q 2Q 3Q Nine Months
2001 2002 2002 $ million 2002 2001
================= ==============
2,627 2,458 1,572 Replacement cost operating profit 5,958 10,720
- 90 703 Special items 920 -
443 341 775 Acquisition amortization 1,461 1,404
----------------- --------------
Pro forma operating result
3,070 2,889 3,050 adjusted for special items 8,339 12,124
================= ==============
Results include:
86 222 119 Exploration expense 465 336
Of which:
23 147 55 Exploration expenditure written off 261 153
----------------- --------------
Crude oil and natural gas
liquids production (mb/d)
(Net of Royalties)
457 481 414 UK 459 480
96 108 107 Rest of Europe 106 95
741 791 754 USA 768 735
589 672 708 Rest of World 675 592
----------------- --------------
1,883 2,052 1,983 Total liquids production 2,008 1,902
================= ==============
Natural gas production(a)
(mmcf/d)(Net of Royalties)
1,305 1,602 1,240 UK 1,488 1,713
139 157 131 Rest of Europe 150 143
3,577 3,565 3,450 USA 3,525 3,531
3,298 3,343 3,661 Rest of World 3,468 3,200
----------------- --------------
8,319 8,667 8,482 Total natural gas production 8,631 8,587
================= ==============
Average liquids realizations(b)
($/bbl)
24.34 24.59 26.26 UK 23.74 25.33
22.38 21.81 22.94 USA 20.71 23.58
22.71 22.20 24.43 Rest of World 21.81 23.40
23.08 22.81 24.40 BP Average 21.99 24.22
================= ==============
Average oil marker prices
($/bbl)
25.30 25.07 26.91 Brent 24.40 26.14
26.72 26.30 28.26 West Texas Intermediate 25.40 27.77
24.05 25.04 27.26 Alaska North Slope US West Coast 24.06 25.01
================= ==============
Average natural gas realizations
($/mcf)
2.52 2.50 2.58 UK 2.75 3.05
2.63 2.76 2.34 USA 2.41 4.68
2.27 2.04 1.99 Rest of World 1.99 2.73
2.49 2.45 2.25 BP Average 2.32 3.66
----------------- --------------
2.93 3.38 3.16 Henry Hub gas price(c) ($/mmBtu) 2.94 4.88
UK Gas - National
17.07 12.10 12.74 Balancing Point (p/therm) 14.53 22.17
================= ==============
(a) Natural gas is converted to oil equivalent at 5.8 billion cubic feet
= 1 million barrels.
(b) Crude oil and natural gas liquids.
(c) Henry Hub First of the Month Index.
Exploration and Production
The pro forma result for the third quarter was $3,050 million, similar to the
third quarter of 2001 when adjusted for special charges of $686 million and
accelerated acquisition amortization of $405 million, relating to the
impairments of Shearwater in the North Sea, Rhourde El Baguel in Algeria, LL652
and Boqueron in Venezuela, Pagerungan in Indonesia and Badami in Alaska,
following full technical reassessments and evaluations of future investment
opportunities. In addition, there were special restructuring charges of $17
million.
Overall hydrocarbon production for the quarter at 3,445 mboe/d was up around 4%
on a year ago reflecting new production from Alaska, Deep Water Gulf of Mexico,
Trinidad, Angola and China and from our increased holding in Sidanco. These
increases more than offset the impact of operational problems in the UK and USA
and tropical storms in the Gulf of Mexico. During the quarter, King's Peak in
the Gulf of Mexico and Trinidad LNG train 2 came on stream. Horn Mountain,
Aspen, Princess and the Vietnam integrated gas project are due on stream in the
fourth quarter.
The third quarter result reflected an increase in liquids realizations of $1.32/
bbl. There was some offset from the charge of $64 million for Unrealized Profit
In Stock (UPIS) to remove the upstream margin from downstream inventories
following price rises since the second quarter. There was a negligible UPIS
effect in the equivalent quarter last year. Overall natural gas realizations
were down by $0.24 per thousand cubic feet. North American natural gas
realizations suffered from widening regional differentials to the Henry Hub
marker caused by continued transportation capacity restrictions and weak local
demand in the Rockies region.
The nine months result at $8,339 million, down $3,785 million on a year ago,
reflected the impact of significantly lower oil and gas prices and higher
exploration expense, mainly due to the second quarter write-off of the Neptune
project in the Gulf of Mexico; these adverse factors were partly offset by
volume growth and unit lifting cost reductions. Total hydrocarbon production for
the nine months at 3,496 mboe/d was up 3% compared with a year ago.
During the quarter BP participated in three discoveries: in Angola, the
Plutao oil discovery in Block 31 (BP 26.7% and operator), offshore Trinidad,
the Iron Horse gas discovery (BP 90% and operator) and in the Gulf of Mexico,
the Great White prospect (BP 33%).
Gas, Power and Renewables
[Download Table]
3Q 2Q 3Q Nine Months
2001 2002 2002 $ million 2002 2001
====================== ==============
125 114 57 Replacement cost operating profit 282 386
- - 30 Special items 30 -
- - - Acquisition amortization - -
---------------------- --------------
Pro forma operating result
125 114 87 adjusted for special items 312 386
====================== ==============
Gas sales volumes (mmcf/d)
2,170 2,349 1,809 UK 2,256 2,682
170 390 353 Rest of Europe 385 207
8,692 8,451 9,332 USA 8,841 8,403
7,331 8,618 9,556 Rest of World 9,155 7,191
----------------------- --------------
18,363 19,808 21,050 Total gas sales volumes 20,637 18,483
======================= ==============
NGL sales volumes (mb/d)
- - - UK - -
- - - Rest of Europe - -
233 189 178 USA 190 220
162 196 185 Rest of World 187 180
----------------------- --------------
395 385 363 Total NGL sales volumes 377 400
======================= ==============
Gas, Power and Renewables
The pro forma result for the third quarter and nine months, adjusted for special
items, was $87 million and $312 million respectively, compared with $125 million
and $386 million a year ago. The special item of $30 million relates to the
impairment of a cogeneration power plant in the UK. The third quarter's
marketing and trading result was down, despite a 15% increase in gas sales
volumes, due to lower margins in North America and losses associated with the
unscheduled shutdown of the UK/Belgium Interconnector. The NGL business result
was up on a year ago due to improved margins. The result includes only one month
of contribution from Ruhrgas due to the disposal of this investment during the
third quarter. The nine months result reflects lower marketing and trading
margins and a lower Ruhrgas contribution, partly offset by an improvement in the
NGL business.
During the quarter BP and its partners entered into two liquefied natural gas
(LNG) agreements with China National Offshore Oil Corporation. The Australian
North West Shelf consortium (BP 16.6%) was selected to supply up to 3.3 million
tonnes a year to China's Guangdong terminal (BP 30%). In addition, an agreement
was signed to supply LNG to the Fujian terminal from Indonesia's Tangguh natural
gas project (BP 49.7%). The 25-year LNG Sales and Purchase Agreement will
involve the supply of up to 2.6 million tonnes of LNG a year to Fujian. Both
projects are due to start up in 2006 or 2007. Separately, a supply and purchase
agreement has been signed with Qatar Liquefied Gas Company Ltd. (Qatargas) for
the delivery of 750,000 tonnes of LNG per year to the Spanish market over a
three year period. The first LNG cargo to Spain is scheduled for delivery in the
third quarter of 2003.
In North America, BP announced a multi-year agreement with Kinder Morgan that
will provide BP with natural gas supply and gas transportation and storage
facilities on Kinder Morgan's Texas intra-state pipeline systems.
Refining and Marketing
[Download Table]
3Q 2Q 3Q Nine Months
2001 2002 2002 $ million 2002 2001
======================= =============
990 603 237 Replacement cost operating profit 908 3,194
112 (114) 83 Special items (5) 274
187 196 202 Acquisition amortization 591 577
----------------------- -------------
Pro forma operating result
1,289 685 522 adjusted for special items 1,494 4,045
======================= =============
Refinery throughputs (mb/d)
414 376 394 UK 387 347
646 924 956 Rest of Europe 905 654
1,568 1,464 1,455 USA 1,438 1,578
375 339 349 Rest of World 354 379
----------------------- -------------
3,003 3,103 3,154 Total throughput 3,084 2,958
======================= =============
Oil sales volumes (mb/d)
Refined products
269 230 258 UK 248 266
1,058 1,444 1,604 Rest of Europe 1,441 1,055
1,863 1,941 1,847 USA 1,874 1,897
612 522 613 Rest of World 578 599
----------------------- --------------
3,802 4,137 4,322 Total marketing sales 4,141 3,817
2,744 2,342 2,589 Trading/supply sales 2,489 2,308
----------------------- --------------
6,546 6,479 6,911 Total refined product sales 6,630 6,125
4,680 4,915 3,648 Crude oil 4,458 4,431
----------------------- --------------
11,226 11,394 10,559 Total oil sales 11,088 10,556
======================= ==============
Global Indicator Refining Margin(a)
($/bbl)
1.74 0.59 1.28 NWE 0.66 2.48
3.24 2.62 1.82 USGC 2.16 5.87
7.20 3.76 3.27 Midwest 3.03 7.20
8.17 4.46 3.54 USWC 4.47 9.40
0.75 0.18 0.47 Singapore 0.28 0.80
3.83 2.06 1.98 BP Average 1.90 4.62
======================= ==============
(a) The Global Indicator Refining Margin (GIM) is the average of seven
regional indicator margins weighted for BP's crude refining capacity in
each region. Each regional indicator margin is based on a single
representative crude with product yields characteristic of the typical
level of upgrading complexity.
Refining and Marketing
The pro forma result, adjusted for special items, for the third quarter was $522
million, a decrease of $767 million or 60% on the same period last year. The
special items comprised Veba and other European integration costs of $54
million, settlement costs associated with a pre-acquisition ARCO US MTBE supply
contract of $22 million, and costs related to the Olympic pipeline incident of
$7 million. Although not classified as a special item, the third quarter result
also included a charge of $80 million in respect of environmental liabilities.
For the nine months the result was $1,494 million, down $2,551 million or 63%.
Significantly lower refining margins are the primary reason for the decreases
versus last year. Refining margins declined in the third quarter compared with
the second quarter, reflecting high product stocks early in the quarter and
pressure from higher crude prices. Retail margins for the quarter were lower
than a year ago, particularly in the US, with the nine months similar to the
prior year. Partly offsetting the poorer trading environment were the
contributions from Veba and improved refining and marketing operational
performance.
Refining throughputs increased by 5% compared with the third quarter of 2001 due
to the Veba acquisition and better availability; these factors more than offset
the Yorktown, Mandan and Salt Lake City refinery divestments. Marketing volumes
increased by 14%, largely due to Veba. Excluding Veba marketing volumes were
flat.
Shop sales increased by 64%, primarily due to Veba. Excluding Veba shop sales
increased by 11%, reflecting the growing number of BP Connect stations and same
store sales growth.
During the quarter, BP opened an additional 13 BP Connect stations, primarily in
the USA and UK, bringing the total number of BP Connect stations worldwide to
446. An additional 1,900 sites were reimaged in the third quarter, bringing the
total number of sites with the BP Helios to some 8,800 worldwide.
Chemicals
[Download Table]
3Q 2Q 3Q Nine Months
2001 2002 2002 $ million 2002 2001
======================= =============
105 203 132 Replacement cost operating profit 411 195
8 43 140 Special items 215 8
- - - Acquisition amortization - -
----------------------- -------------
Pro forma operating result
113 246 272 adjusted for special items 626 203
======================= =============
114 109 115(b)Chemicals Indicator Margin(a)($/te) 101(b) 109
======================= =============
Chemicals production (kte)
804 837 858 UK 2,523 2,333
2,164 2,595 2,669 Rest of Europe 7,847 5,648
2,299 2,695 2,570 USA 7,754 6,664
703 762 783 Rest of World 2,255 2,023
----------------------- --------------
5,970 6,889 6,880 Total production 20,379 16,668
======================= ==============
(a) The Chemicals Indicator Margin (CIM) is a weighted average of
externally-based product margins. It is based on market data collected
by Chem Systems in their quarterly market analyses, then weighted based
on BP's product portfolio. While it does not cover our entire portfolio,
it includes a broad range of products. Amongst the products and
businesses covered in the CIM are olefins and derivatives, aromatics and
derivatives, linear alpha-olefins, acetic acid, vinyl acetate monomer
and nitriles. Not included are fabrics and fibres, plastic fabrications,
poly alpha-olefins, anhydrides, engineering polymers and carbon fibres,
speciality intermediates, and the remaining parts of the solvents and
acetyls businesses.
(b) Provisional. The data for the third quarter is based on two months'
actuals and one month of provisional data.
Chemicals
Chemicals' pro forma result for the third quarter, adjusted for special items,
was $272 million, which is slightly above the second quarter primarily due to
lower fixed costs. The special item of $140 million is a writedown of our
Indonesian manufacturing assets following a review of its immediate prospects
and opportunities for future growth in a highly competitive regional market.
The third quarter result was $159 million higher than a year ago, primarily
reflecting a lower cost structure and the benefits of portfolio additions,
restructuring and reliability improvements. The nine months result was $626
million compared with $203 million in 2001 due to volume growth through improved
operations, organic growth and acquisitions, and lower costs, against a weaker
margin environment.
Chemicals production for the third quarter and nine months was up 15% and 22%
respectively, as a result of the Solvay, Erdolchemie and Veba transactions, new
plants and improved reliability.
During the quarter we completed the sale of two-thirds of our interest in the
European ethylene pipeline company, ARG, in accordance with EU commission
requirements in relation to the Veba acquisition.
Other Businesses and Corporate
[Download Table]
3Q 2Q 3Q Nine Months
2001 2002 2002 $ million 2002 2001
================= =============
(117) (128) (241) Replacement cost operating loss (494) (348)
- - 125 Special items 125 -
- - - Acquisition amortization - -
----------------- -------------
Pro forma operating result
(117) (128) (116) adjusted for special items (369) (348)
================= =============
Other businesses and corporate comprises Finance, the group's coal asset and
aluminium asset, its investments in PetroChina and Sinopec, interest income and
costs relating to corporate activities. The special item of $125 million is a
provision to cover future rental payments on surplus leasehold office
accommodation.
Exceptional Items
[Download Table]
3Q 2Q 3Q Nine Months
2001 2002 2002 $ million 2002 2001
================= =============
Profit (loss) on sale of fixed assets and
184 376 1,794 businesses or termination of operations 2,061 573
(127) (160) (25) Taxation credit (charge) (146) (396)
----------------- -------------
57 216 1,769 Exceptional items after taxation 1,915 177
================= =============
Exceptional items for the third quarter include the profit on disposal of BP's
Ruhrgas interest and an electronic payment system.
2002 Dividends
[Download Table]
3Q 2Q 3Q Nine Months
2001 2002 2002 2002 2001
================= ==============
Dividends per ordinary share
5.50 6.00 6.00 cents 17.75 16.25
3.805 3.875 3.897 pence 11.823 11.381
33.0 36.0 36.0 Dividends per ADS (cents) 106.5 97.5
----------------------- --------------
BP today announced a third quarterly dividend for 2002 of 6.0 cents per ordinary
share. Holders of ordinary shares will receive 3.897 pence per share and holders
of American Depositary Receipts (ADRs) $0.36 per ADS share. The dividend is
payable on 9 December to shareholders on the register on 15 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 9 December.
Outlook
BP Group Chief Executive, Lord Browne, concluded:
"The world economy sustained its gradual recovery in the third quarter,
and some modest growth is expected to continue in the fourth quarter,
though the current environment has little upside and significant downside
risks. BP's overall trading environment remained broadly at "mid-cycle"
during the third quarter.
"Recent demand growth has been partly met by increased OPEC production,
though quotas remain unchanged. Oil inventories are below normal seasonal
levels. In the fourth quarter, assuming a normal seasonal demand increase
and no material increase in OPEC production beyond high September levels,
crude oil prices should remain around third quarter levels.
"Though storage levels for US natural gas remain high relative to
seasonal norms, prices have strengthened recently. This reflects
declining production and the expectation of firming seasonal demand.
"Refining margins have improved in recent weeks, and are now above the
weak third quarter level, with commercial product inventories below the
1997-2001 average. Oil product inventories are likely to tighten further
during the fourth quarter and should underpin margins.
"Average third quarter retail margins were broadly in line with the
second quarter, though US margins came under pressure in the latter part
of the quarter. Retail margins may come under further pressure in the
fourth quarter reflecting a seasonal slowdown in demand and an
increasingly competitive market.
"The Chemicals business environment has weakened in recent weeks with
demand softening and margins under pressure from high feedstock prices.
"Capital expenditure is on track for the upper end of the year's target
range, at around $13 billion, excluding acquisitions. The net debt ratio
was below the mid-point of the 25-35% range at the end of the third
quarter and is likely to remain relatively stable around this level for
the remainder of the year."
----------------------------------------------------------------------
The foregoing discussion, in particular certain statements in the
introductory bullet point assessment and under 'Outlook', focuses
on certain trends and general market and economic conditions and
outlook on production levels or rates, prices, margins, debt, targeted
performance improvement, levels of annual investment and currency
exchange rates and, as such, are forward-looking statements that
involve risk and uncertainty that could cause actual results and
developments to differ materially from those expressed or implied by
this discussion. By their nature, trends and outlook on production,
price, margin, debt, profitability and currency exchange rates are
difficult to forecast with any precision, and there are a number of
factors that could cause actual results and developments to differ
materially from those expressed or implied by these forward-looking
statements, including specific factors accompanying such statements;
future levels of industry product supply, demand and pricing; currency
exchange rates; political stability and economic growth in relevant
areas of the world; development and use of new technology and
successful partnering; the actions of competitors; natural disasters
and other changes to business conditions; prolonged adverse weather
conditions; and wars and acts of terrorism and sabotage. Additional
information, including information on factors which may affect BP's
business, is contained in BP's Annual Report and Accounts and in the
Annual Report on Form 20-F filed with the US Securities and Exchange
Commission.
----------------------------------------------------------------------
BP p.l.c. and Subsidiaries
[Download Table]
Summarized Group Results
Third Second Third
Quarter Quarter Quarter Nine Months
2001 2002 2002 2002 2001
======================= ==============
$ million $ million
2,627 2,458 1,572 Exploration and Production 5,958 10,720
125 114 57 Gas, Power and Renewables 282 386
990 603 237 Refining and Marketing 908 3,194
105 203 132 Chemicals 411 195
(117) (128) (241) Other businesses and corporate (494) (348)
----------------------- --------------
Total replacement cost
3,730 3,250 1,757 operating profit 7,065 14,147
Profit (loss) on sale of
fixed assets and businesses or
184 376 1,794 termination of operations (Note 4) 2,061 573
----------------------- --------------
Replacement cost profit before
3,914 3,626 3,551 interest and tax 9,126 14,720
(405) 525 305 Stock holding gains (losses)(Note 6) 1,303 (603)
----------------------- --------------
Historical cost profit before
3,509 4,151 3,856 interest and tax 10,429 14,117
369 314 300 Interest expense (Note 7) 947 1,256
----------------------- --------------
3,140 3,837 3,556 Profit before taxation 9,482 12,861
1,540 1,751 713 Taxation (Note 8) 3,217 5,664
----------------------- --------------
1,600 2,086 2,843 Profit after taxation 6,265 7,197
12 46 8 Minority shareholders' interest 94 38
----------------------- --------------
1,588 2,040 2,835 Profit for the period 6,171 7,159
----------------------- --------------
1,232 1,347 1,340 Distribution to shareholders 3,977 3,646
======================= ==============
Earnings per ordinary share - cents
7.08 9.10 12.65 Basic 27.53 31.88
7.03 9.05 12.59 Diluted 27.39 31.68
======================= ==============
[Download Table]
Replacement Cost Results
Historical cost profit
1,588 2,040 2,835 for the period 6,171 7,159
Stock holding (gains) losses
405 (531) (305) net of MSI (1,278) 603
----------------------- --------------
Replacement cost profit
1,993 1,509 2,530 for the period 4,893 7,762
(57) (216) (1,769) Exceptional items, net of tax (1,915) (177)
----------------------- --------------
Replacement cost profit before
1,936 1,293 761 exceptional items 2,978 7,585
----------------------- --------------
Earnings per ordinary share - cents
On replacement cost profit before
8.63 5.77 3.39 exceptional items 13.28 33.78
======================= =============
[Download Table]
Summarized Group Balance Sheet
30 September 31 December
2002 2001
--------------------------
$ million
Fixed assets
Intangible assets 15,902 16,489
Tangible assets 85,521 77,410
Investments 11,646 11,963
---------------------
113,069 105,862
---------------------
Current assets
Stocks 9,917 7,631
Debtors 31,781 26,669
Investments 285 450
Cash at bank and in hand 1,005 1,358
---------------------
42,988 36,108
Creditors - amounts falling due within one year
Finance debt 10,582 9,090
Other creditors 34,870 28,524
---------------------
Net current liabilities (2,464) (1,506)
---------------------
Total assets less current liabilities 110,605 104,356
Creditors - amounts falling due
after more than one year
Finance debt 11,694 12,327
Other creditors 3,261 3,086
Provisions for liabilities and charges
Deferred taxation 13,391 11,702
Other provisions 13,056 11,482
---------------------
Net assets 69,203 65,759
Minority shareholders' interest 556 598
---------------------
BP shareholders' interest 68,647 65,161
=====================
[Download Table]
Movement in BP shareholders' interest: $ million
At 31 December 2001 74,367
Prior year adjustment - change in accounting policy (see Note 1) (9,206)
------
As restated 65,161
Profit for the period 6,171
Distribution to shareholders (3,977)
Currency translation differences 1,864
Employee share schemes 178
Share buyback (750)
------
At 30 September 2002 68,647
======
[Download Table]
Summarized Group Cash Flow Statement
Third Second Third
Quarter Quarter Quarter Nine Months
2001 2002 2002 2002 2001
======================= ============
$ million $ million
Net cash inflow from
5,046 5,133 4,376 operating activities (a) 13,145 16,862
----------------------- ---------------
26 16 30 Dividends from joint ventures 129 92
----------------------- ---------------
Dividends from
155 154 96 associated undertakings 303 424
----------------------- ---------------
Servicing of finance and returns
on investments
23 57 63 Interest received 168 173
(308) (342) (218) Interest paid (869) (1,053)
59 58 4 Dividends received 64 97
Dividends paid to
(11) (3) (13) minority shareholders (29) (16)
----------------------- ---------------
Net cash outflow from servicing of
(237) (230) (164) finance and returns on investments (666) (799)
----------------------- ---------------
Taxation
(231) (167) (206) UK corporation tax (560) (604)
(486) (760) (455) Overseas tax (1,473) (2,634)
----------------------- ---------------
(717) (927) (661) Tax paid (2,033) (3,238)
----------------------- ---------------
Capital expenditure and
financial investment
(2,933) (2,793) (2,980) Payments for fixed assets (8,572) (8,526)
Proceeds from the sale
824 939 488 of fixed assets 1,744 1,750
----------------------- ---------------
Net cash outflow for
capital expenditure and
(2,109) (1,854) (2,492) financial investment (6,828) (6,776)
----------------------- -------------
Acquisitions and disposals
Investments in associated
(139) (488) (125) undertakings (756) (407)
Proceeds from sale of
- - 2,338 investment in Ruhrgas 2,338 -
(48) (139) (2,607) Acquisitions, net of cash acquired (4,296) (608)
(144) (68) (23) Net investment in joint ventures (137) (277)
Proceeds from the sale
307 1,584 55 of businesses 1,670 307
----------------------- ---------------
Net cash (outflow) inflow for
(24) 889 (362) acquisitions and disposals (1,181) (985)
----------------------- ---------------
(1,235) (1,290) (1,346) Equity dividends paid (3,924) (3,595)
----------------------- ---------------
905 1,891 (523) Net cash (outflow) inflow (1,055) 1,985
======================= ===============
630 2,017 (219) Financing (b) (485) 1,827
(44) 33 (32) Management of liquid resources (164) (146)
319 (159) (272) Increase (decrease) in cash (406) 304
----------------------- ---------------
905 1,891 (523) (1,055) 1,985
======================= ===============
[Download Table]
Analysis of Cash Flow
Third Second Third
Quarter Quarter Quarter Nine Months
2001 2002 2002 2002 2001
======================= ==============
$ million $ million
(a) Reconciliation of historical
cost profit before interest
and tax to net cash inflow
from operating activities
Historical cost profit before
3,509 4,151 3,856 interest and tax 10,429 14,117
2,104 2,227 3,506 Depreciation and amounts provided 7,886 6,401
Exploration expenditure
23 147 55 written off 261 153
Share of profits of joint ventures
(278) (288) (172) and associated undertakings (716) (891)
(116) (118) (62) Interest and other income (243) (346)
(Profit) loss on sale of fixed
(184) (374) (1,796) assets and businesses (2,061) (573)
115 325 332 Charge for provisions 826 821
(263) (373) (392) Utilization of provisions (1,003) (898)
135 (807) (155) (Increase) decrease in stocks (1,458) 122
2,216 (1,614) (379) (Increase) decrease in debtors (2,403) 748
(2,215) 1,857 (417) Increase (decrease) in creditors 1,627 (2,792)
----------------------- ---------------
Net cash inflow from
5,046 5,133 4,376 operating activities 13,145 16,862
======================= ===============
(b) Financing
(7) (752) (558) Long-term borrowing (3,056) (1,029)
988 663 567 Repayments of long-term borrowing 1,464 2,168
(743) (753) (1,627) Short-term borrowing (5,879) (3,493)
Repayments of short-term
40 2,891 704 borrowing 6,414 3,167
----------------------- ---------------
278 2,049 (914) (1,057) 813
(48) (32) (55) Issue of ordinary share capital (178) (168)
Repurchase of ordinary
400 - 750 share capital 750 1,182
----------------------- ---------------
Net cash (inflow)
630 2,017 (219) outflow from financing (485) 1,827
======================= ===============
[Download Table]
Capital Expenditure and Acquisitions
Third Second Third
Quarter Quarter Quarter Nine Months
2001 2002 2002 2002 2001
======================= =============
$ million $ million
By business
Exploration and Production
326 247 270 UK 778 783
79 57 61 Rest of Europe 189 230
1,123 1,077 980 USA 3,224 3,293
891 1,192 929 Rest of World(a) 2,935 2,402
----------------------- --------------
2,419 2,573 2,240 7,126 6,708
----------------------- --------------
Gas, Power and Renewables
37 5 7 UK 28 51
23 87 29 Rest of Europe(b) 120 49
15 32 52 USA 100 72
12 8 19 Rest of World 37 19
----------------------- --------------
87 132 107 285 191
----------------------- --------------
Refining and Marketing
89 100 56 UK 232 267
10 2,556 198 Rest of Europe(c) 5,486 171
281 260 298 USA 861 688
62 49 53 Rest of World 128 173
----------------------- --------------
442 2,965 605 6,707 1,299
----------------------- --------------
Chemicals
50 17 30 UK 55 179
69 60 58 Rest of Europe(d) 163 623
119 55 49 USA 146 293
112 38 43 Rest of World 174 237
----------------------- --------------
350 170 180 538 1,332
----------------------- --------------
65 267 48 Other businesses and corporate(e) 367 166
----------------------- --------------
3,363 6,107 3,180 15,023 9,696
======================= ==============
By geographical area
541 400 394 UK 1,203 1,383
181 2,953 353 Rest of Europe 6,158 1,078
1,564 1,467 1,389 USA 4,387 4,402
1,077 1,287 1,044 Rest of World 3,275 2,833
----------------------- --------------
3,363 6,107 3,180 15,023 9,696
======================= ==============
Capital Expenditure and Acquisitions (continued)
(a) 2Q and nine months 2002 included the acquisition of an additional
interest in Sidanco.
(b) 2Q and nine months 2002 included the acquisition of a 5% stake in
Enagas.
(c) 2Q and nine months 2002 included the acquisition of 49% and 100% of Veba
respectively.
(d) Nine months 2001 included the acquisition of Bayer's 50% interest in
Erdolchemie.
(e) 2Q and nine months 2002 included the acquisition of the minority
interest in Veba's upstream oil and gas assets.
[Download Table]
US dollar/Sterling exchange rates
1.44 1.46 1.55 Average rate for the period 1.48 1.44
1.48 1.52 1.55 Period-end rate 1.55 1.48
======================= =============
[Download Table]
Analysis of Replacement Cost Operating Profit
Third Second Third
Quarter Quarter Quarter Nine Months
2001 2002 2002 2002 2001
======================= =============
$ million $ million
By business
Exploration and Production
729 649 185 UK 1,561 2,853
188 172 213 Rest of Europe 537 604
836 771 661 USA 1,754 4,147
874 866 513 Rest of World 2,106 3,116
----------------------- --------------
2,627 2,458 1,572 5,958 10,720
----------------------- --------------
Gas, Power and Renewables
34 1 (66) UK (63) 81
27 35 17 Rest of Europe 99 125
82 13 28 USA 16 193
(18) 65 78 Rest of World 230 (13)
----------------------- -------------
125 114 57 282 386
----------------------- -------------
Refining and Marketing
(51) (61) (158) UK (343) (278)
222 249 236 Rest of Europe 624 535
683 279 55 USA 255 2,539
136 136 104 Rest of World 372 398
----------------------- -------------
990 603 237 908 3,194
----------------------- -------------
Chemicals
(58) (10) 6 UK (35) (141)
87 64 161 Rest of Europe 272 186
59 84 54 USA 161 71
17 65 (89) Rest of World 13 79
----------------------- -------------
105 203 132 411 195
----------------------- -------------
(117) (128) (241) Other businesses and corporate (494) (348)
----------------------- --------------
3,730 3,250 1,757 7,065 14,147
======================= ==============
By geographical area
552 504 (131) UK 903 2,293
512 526 620 Rest of Europe 1,532 1,426
1,555 1,103 672 USA 1,933 6,725
1,111 1,117 596 Rest of World 2,697 3,703
----------------------- --------------
3,730 3,250 1,757 7,065 14,147
======================= ==============
Included above
125 89 104 Share of profits of joint ventures 263 352
Share of profits of
155 196 71 associated undertakings 455 541
----------------------- --------------
280 285 175 718 893
======================= ==============
Notes
1. Restatement of comparative information
Comparative information for 2001 has been restated to reflect the
changes described below.
(a) Transfer of solar, renewables and alternative fuels activities
With effect from 1 January 2002, the solar, renewables and
alternative fuels activities have been transferred from Other
businesses and corporate to Gas and Power. To reflect this
transfer Gas and Power has been renamed Gas, Power and Renewables
from the same date.
(b) New accounting standard for deferred tax
With effect from 1 January 2002 BP has adopted Financial Reporting
Standard No.19 'Deferred Tax' (FRS 19). This standard generally
requires that deferred tax should be provided on a full liability
basis rather than on a restricted liability basis as required by
Statement of Standard Accounting Practice No.15 'Accounting for
Deferred Tax'. The adoption of FRS 19 has been treated as a
change in accounting policy.
Under FRS 19 deferred tax is recognised in respect of all timing
differences that have originated but not reversed at the balance
sheet date where transactions or events have occurred at that date
that will result in an obligation to pay more, or a right to pay
less tax in the future. In particular:
o Provision is made for tax on gains arising from the disposal of
fixed assets that have been rolled over into replacement
assets, only to the extent that, at the balance sheet date,
there is a binding agreement to dispose of the replacement
assets concerned. However, no provision is made where, on the
basis of all available evidence at the balance sheet date, it
is more likely than not that the taxable gain will be rolled
over into replacement assets and charged to tax only where the
replacement assets are sold.
o Provision is made for deferred tax that would arise on
remittance of the retained earnings of overseas subsidiaries,
joint ventures and associated undertakings only to the extent
that, at the balance sheet date, dividends have been accrued as
receivable.
Deferred tax assets are recognised only to the extent that it is
considered more likely than not that there will be suitable
taxable profits from which the underlying timing differences can
be deducted.
Deferred tax is measured on an undiscounted basis at the tax rates
that are expected to apply in the periods in which timing
differences reverse, based on tax rates and laws enacted or
substantively enacted at the balance sheet date.
As a consequence of adopting FRS 19 acquisitions have been
restated as if the new standard applied at that time. This leads
to the creation of higher deferred tax liabilities and greater
amounts of goodwill on those acquisitions.
[Download Table]
Notes
Balance sheet at 31 December 2001 Restated Reported
=================
$ million
Fixed assets
Intangible assets 16,489 15,593
Tangible assets 77,410 77,410
Investments 11,963 12,047
-----------------
105,862 105,050
-----------------
Current assets 36,108 36,108
Creditors - amounts falling due
within one year 37,614 37,614
-----------------
Net current liabilities (1,506) (1,506)
-----------------
Total assets less current liabilities 104,356 103,544
Creditors - amounts falling due
after more than one year 15,413 15,413
Provisions for liabilities and charges
Deferred taxation 11,702 1,655
Other provisions 11,482 11,482
-----------------
Net assets 65,759 74,994
Minority shareholders' interest 598 627
-----------------
BP shareholders' interest 65,161 74,367
=================
[Download Table]
Notes
Income statements Restated Reported
---------------- ----------------
Third Nine Third Nine
Quarter Months Quarter Months
2001 2001 2001 2001
===================================
$ million
Exploration and Production 2,627 10,720 2,641 10,762
Gas, Power and Renewables 125 386 130 415
Refining and Marketing 990 3,194 1,003 3,233
Chemicals 105 195 105 195
Other businesses and corporate (117) (348) (122) (377)
-----------------------------------
Total replacement cost operating profit 3,730 14,147 3,757 14,228
Profit (loss) on sale of fixed assets
and businesses or termination
of operations 184 573 184 573
-----------------------------------
Replacement cost profit before
interest and tax 3,914 14,720 3,941 14,801
Stock holding gains (losses) (405) (603) (405) (603)
-----------------------------------
Historical cost profit before
interest and tax 3,509 14,117 3,536 14,198
Interest expense 369 1,256 369 1,256
-----------------------------------
Profit before taxation 3,140 12,861 3,167 12,942
Taxation 1,540 5,664 1,212 4,480
-----------------------------------
Profit after taxation 1,600 7,197 1,955 8,462
Minority shareholders' interest 12 38 15 47
-----------------------------------
Profit for the period 1,588 7,159 1,940 8,415
===================================
Distribution to shareholders 1,232 3,646 1,232 3,646
-----------------------------------
Earnings per ordinary share - cents
Basic 7.08 31.88 8.66 37.48
Diluted 7.03 31.68 8.59 37.24
===================================
[Download Table]
Notes
2. Turnover(a)
Third Second Third
Quarter Quarter Quarter Nine Months
2001 2002 2002 2002 2001
======================= ==============
$ million $ million
By business
6,335 6,539 6,220 Exploration and Production 18,397 22,893
9,307 8,235 9,313 Gas, Power and Renewables 25,316 31,920
30,925 31,870 35,634 Refining and Marketing 92,393 93,705
3,272 3,584 3,720 Chemicals 9,946 9,034
Other businesses
138 136 108 and corporate 379 403
----------------------- ---------------
49,977 50,364 54,995 146,431 157,955
Less: sales between
6,397 6,709 5,941 businesses 17,432 20,554
----------------------- ---------------
43,580 43,655 49,054 Group excluding JVs 128,999 137,401
306 404 504 Sales of joint ventures 1,187 874
----------------------- ---------------
43,886 44,059 49,558 130,186 138,275
======================= ===============
By geographical area
Group excluding JVs
12,272 12,509 12,160 UK 35,664 36,186
9,026 12,219 13,460 Rest of Europe 34,798 28,044
21,375 19,663 22,880 USA 57,808 68,657
8,006 8,035 8,537 Rest of World 23,556 26,626
----------------------- ---------------
50,679 52,426 57,037 151,826 159,513
Less: sales between
7,099 8,771 7,983 areas 22,827 22,112
----------------------- ---------------
43,580 43,655 49,054 128,999 137,401
======================= ==============
(a) Contracts for the sale and purchase of crude oil, refined products,
natural gas and power, which are held for trading purposes and
marked-to-market, that require delivery of the underlying commodity
are reported on a gross basis.
[Download Table]
Notes
3. Operating profits are after charging:
Third Second Third
Quarter Quarter Quarter Nine Months
2001 2002 2002 2002 2001
======================= =============
$ million $ million
Exploration expense
1 4 16 UK 26 5
10 13 5 Rest of Europe 41 15
41 133 53 USA 228 174
34 72 45 Rest of World 170 142
----------------------- --------------
86 222 119 465 336
======================= ==============
Production taxes (a)
80 90 92 UK petroleum revenue tax 245 453
257 225 258 Overseas production taxes 667 900
----------------------- --------------
337 315 350 912 1,353
======================= ==============
(a) Production taxes are charged against Exploration and Production's
operating profit and are not included in the charge for taxation in
Note 8.
[Download Table]
4. Analysis of exceptional items
3 427 (25) Exploration and Production 407 280
- (1) 1,585 Gas, Power and Renewables 1,584 (1)
247 31 262 Refining and Marketing 248 453
(81) (85) 11 Chemicals (134) (167)
15 4 (39) Other businesses and corporate (44) 8
----------------------- --------------
Profit (loss) on sale of fixed
assets and businesses or
184 376 1,794 termination of operations 2,061 573
(127) (160) (25) Taxation charge (146) (396)
----------------------- --------------
Exceptional items
57 216 1,769 after taxation 1,915 177
======================= ==============
5. Replacement cost profit
Replacement cost profits reflect the current cost of supplies. The
replacement cost profit for the period is arrived at by excluding from
the historical cost profit stock holding gains and losses.
[Download Table]
Notes
6. Stock holding gains (losses)
Third Second Third
Quarter Quarter Quarter Nine Months
2001 2002 2002 2002 2001
======================= =============
$ million $ million
(1) (1) 3 Exploration and Production 5 (1)
(17) 4 2 Gas, Power and Renewables 10 (61)
(301) 444 311 Refining and Marketing 1,250 (445)
(86) 78 (11) Chemicals 38 (96)
---------------------- --------------
(405) 525 305 1,303 (603)
- (6) - Minority shareholders' interest 25 -
---------------------- --------------
(405) 531 305 1,278 (603)
====================== ==============
7. Interest expense
292 261 250 Group interest payable(a) 778 1,022
(19) (25) (27) Capitalized (67) (74)
----------------------- --------------
273 236 223 711 948
16 15 15 Joint ventures 44 49
33 21 19 Associated undertakings 64 109
Unwinding of discount
47 42 43 on provisions 128 150
----------------------- --------------
369 314 300 947 1,256
======================= ==============
(a) Includes charges relating
to the early redemption
2 - - of debt - 62
----------------------- --------------
8. Charge for taxation
1,206 1,040 463 Current 2,036 4,581
334 711 250 Deferred(a) 1,181 1,083
----------------------- --------------
1,540 1,751 713 3,217 5,664
======================= ==============
244 646 235 UK(a) 1,070 766
1,296 1,105 478 Overseas 2,147 4,898
----------------------- --------------
1,540 1,751 713 3,217 5,664
======================= ==============
(a) Includes the adjustment
to the North Sea deferred
tax balance for the
supplementary
- 355 - UK corporation tax of 10% 355 -
----------------------- --------------
[Download Table]
Notes
9. Analysis of changes in net debt
Third Second Third
Quarter Quarter Quarter Nine Months
2001 2002 2002 2002 2001
======================= ===============
$ million $ million
Opening balance
20,498 24,531 21,409 Finance debt 21,417 21,190
1,103 1,379 1,284 Less: Cash 1,358 1,170
563 286 285 Current asset investments 450 661
----------------------- ---------------
18,832 22,866 19,840 Opening net debt 19,609 19,359
----------------------- ---------------
Closing balance
20,474 21,409 22,276 Finance debt 22,276 20,474
1,438 1,284 1,005 Less: Cash 1,005 1,438
519 285 285 Current asset investments 285 519
----------------------- ---------------
18,517 19,840 20,986 Closing net debt 20,986 18,517
----------------------- ---------------
(Increase) decrease
315 3,026 (1,146) in net debt (1,377) 842
======================= ===============
Movement in cash/
319 (159) (272) bank overdrafts (406) 304
(Decrease) increase in
(43) 33 (32) current asset investments (164) (145)
Net cash (inflow) outflow
from financing(excluding
278 2,049 (914) share capital) (1,057) 813
Partnership interests
- 1,135 - exchanged for BP loan notes 1,135 -
(102) 19 13 Other movements 57 (20)
- - - Debt acquired (999) (47)
----------------------- --------------
Movement in net debt before
452 3,077 (1,205) exchange effects (1,434) 905
(137) (51) 59 Exchange adjustments 57 (63)
----------------------- --------------
(Increase) decrease
315 3,026 (1,146) in net debt (1,377) 842
======================= ==============
[Download Table]
Notes
10. Consolidated statement of cash flows presented on a US GAAP format
Third Second Third
Quarter Quarter Quarter Nine Months
2001 2002 2002 2002 2001
======================= =============
$ million $ million
Operating activities
1,600 2,086 2,843 Profit after taxation 6,265 7,197
Adjustments to reconcile
profits after tax to net
cash provided by
operating activities
Depreciation and
2,104 2,227 3,506 amounts provided 7,886 6,401
Exploration expenditure
23 147 55 written off 261 153
Share of (profit) loss of
joint ventures and associates
17 (23) 51 less dividends received 11 (8)
(Profit) loss on sale
of businesses and
(184) (374) (1,796) fixed assets (2,061) (573)
Working capital movement
561 (652) (1,002) (see analysis below) (2,323) (768)
334 711 250 Deferred taxation 1,181 1,083
(151) 52 (191) Other (247) (53)
----------------------- ---------------
Net cash provided by
4,304 4,174 3,716 operating activities 10,973 13,432
----------------------- ---------------
Investing activities
(2,952) (2,818) (3,007) Capital expenditures (8,639) (8,600)
Acquisitions, net of
(48) (139) (2,607) cash acquired (4,296) (608)
Investment in
(139) (488) (125) associated undertakings (756) (407)
Net investment in
(144) (68) (23) joint ventures (137) (277)
Proceeds from
1,131 2,523 2,881 disposal of assets 5,752 2,057
----------------------- --------------
Net cash used in
(2,152) (990) (2,881) investing activities (8,076) (7,835)
----------------------- --------------
[Download Table]
Notes
10. Consolidated statement of cash flows presented on a US GAAP format
(continued)
Third Second Third
Quarter Quarter Quarter Nine Months
2001 2002 2002 2002 2001
======================= =============
$ million $ million
Financing activities
Net proceeds from shares
(352) 32 (695) issued (repurchased) (572) (1,014)
Proceeds from
7 752 558 long-term financing 3,056 1,029
Repayments of
(988) (663) (567) long-term financing (1,464) (2,168)
Net (decrease) increase
703 (2,138) 923 in short-term debt (535) 326
Dividends paid
(1,235) (1,290) (1,346) - BP shareholders (3,924) (3,595)
(11) (3) (13) - Minority shareholders (29) (16)
----------------------- -------------
Net cash used in
(1,876) (3,310) (1,140) financing activities (3,468) (5,438)
----------------------- --------------
Currency translation
differences relating to
15 30 26 cash and cash equivalents 53 (33)
----------------------- --------------
(Decrease) increase in
291 (96) (279) cash and cash equivalents (518) 126
Cash and cash equivalents
1,666 1,665 1,569 at beginning of period 1,808 1,831
----------------------- --------------
Cash and cash equivalents
1,957 1,569 1,290 at end of period 1,290 1,957
----------------------- --------------
Analysis of working
capital movement
(Increase) decrease
135 (807) (155) in stocks (1,458) 122
(Increase) decrease
2,249 (1,691) (345) in debtors (2,479) 703
Increase (decrease)
(1,823) 1,846 (502) in creditors 1,614 (1,593)
----------------------- --------------
Total working
561 (652)(1,002) capital movement (2,323) (768)
======================= ==============
[Download Table]
Notes
11. Ordinary shares
Third Second Third
Quarter Quarter Quarter Nine Months
2001 2002 2002 2002 2001
================================== ================
Shares in
issue at
period end
22,442,480 22,463,182 22,374,747 (thousand)(a) 22,374,747 22,442,480
Average
number
of shares
outstanding
22,425,374 22,426,830 22,408,297 (thousand)(b) 22,412,655 22,449,041
------------------------------
(a) Each BP ADS represents six BP Ordinary Shares.
(b) Excludes shares held by the Employee Share Ownership Plans.
12. Statutory accounts
The financial information shown in this publication is unaudited and
does not constitute statutory accounts. The 2001 group accounts have
been delivered to the UK Registrar of Companies; the report of the
auditors on those accounts was unqualified.
Contacts
London New York Frankfurt
------------------- ---------------- --------------------
Press Roddy Kennedy Ian Fowler
Office +44 (0)20 7496 4624 +1 212 451 8008
Investor Fergus McLeod Terry LaMore Karl Weckel
Relations +44 (0)20 7496 4717 +1 212 451 8034 +49 (0)69 71 37 9990
http://www.bp.com/investors
BP p.l.c.
Group Results
Third Quarter 2002
London 29 October 2002
[Download Table]
INVESTOR RELATIONS SUPPLEMENT
REPLACEMENT COST OPERATING PROFIT ADJUSTED FOR SPECIAL ITEMS(a) AND ACQUISITION
AMORTIZATION(b)
Third Second Third
Quarter Quarter Quarter Nine Months
2001 2002 2002 2002 2001
======================= =============
$ million
Exploration and Production
771 768 668 UK 2,245 2,963
188 172 213 Rest of Europe 537 604
1,203 1,047 1,059 USA 2,771 5,340
908 902 1,110 Rest of World 2,786 3,217
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3,070 2,889 3,050 8,339 12,124
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Gas, Power and Renewables
34 1 (36) UK (33) 81
27 35 17 Rest of Europe 99 125
82 13 28 USA 16 193
(18) 65 78 Rest of World 230 (13)
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125 114 87 312 386
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Refining and Marketing
60 39 (36) UK (24) 78
255 272 274 Rest of Europe 711 658
788 238 180 USA 435 2,840
186 136 104 Rest of World 372 469
----------------------- --------------
1,289 685 522 1,494 4,045
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Chemicals
(58) 12 6 UK (13) (141)
95 80 161 Rest of Europe 290 194
59 89 54 USA 196 71
17 65 51 Rest of World 153 79
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113 246 272 626 203
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Other businesses and corporate
(102) (75) (63) UK (182) (222)
(12) 6 (7) Rest of Europe - (24)
(103) (44) (36) USA (163) (223)
100 (15) (10) Rest of World (24) 121
----------------------- --------------
(117) (128) (116) (369) (348)
----------------------- --------------
4,480 3,806 3,815 10,402 16,410
======================= ==============
(a) The special items refer to non-recurring charges and credits. The
special items for the third quarter include impairment charges and
restructuring costs in Exploration and Production, an impairment charge
in Gas, Power and Renewables, integration and certain other costs in
Refining and Marketing, an impairment charge in Chemicals, and a
provision to cover future rental payments on surplus leasehold office
accommodation in Other Businesses and Corporate.
(b) Acquisition amortization is depreciation and amortization relating to
the fixed asset revaluation adjustments and goodwill consequent upon the
ARCO and Burmah Castrol acquisitions.
[Download Table]
PER SHARE AMOUNTS
Third Second Third
Quarter Quarter Quarter Nine Months
2001 2002 2002 2002 2001
=================================== ======================
Shares in issue
at period
22,442,480 22,463,182 22,374,747 end (thousand) 22,374,747 22,442,480
- ADS equivalent
3,740,413 3,743,864 3,729,125 (thousand) 3,729,125 3,740,413
Average number
of shares
outstanding
22,425,374 22,426,830 22,408,297 (thousand) 22,412,655 22,449,041
- ADS equivalent
3,737,562 3,737,805 3,734,716 (thousand) 3,735,443 3,741,507
----------------------------------- ----------------------
Replacement cost
profit after
exceptional
1,993 1,509 2,530 items ($m) 4,893 7,762
cents/ordinary
8.89 6.73 11.29 share 21.83 34.57
0.53 0.40 0.68 dollars/ADS 1.31 2.07
----------------------------------- ----------------------
Replacement cost
profit before
exceptional
1,936 1,293 761 items ($m) 2,978 7,585
cents/ordinary
8.63 5.77 3.39 share 13.28 33.78
0.52 0.34 0.21 dollars/ADS 0.80 2.03
----------------------------------- ----------------------
Pro forma result
adjusted for special
2,645 2,181 2,294 items ($m) 6,057 9,788
11.80 9.72 10.24 cents/ordinary share 27.02 43.60
0.71 0.59 0.61 dollars/ADS 1.62 2.62
----------------------------------- ----------------------
* Excludes shares held by the Employee Share Ownership Plans.
[Download Table]
ACQUISITION AMORTIZATION BY BUSINESS
Third Second Third
Quarter Quarter Quarter Nine Months
2001 2002 2002 2002 2001
======================= =============
$ million
Exploration and Production
42 37 378 UK 447 110
367 268 283 USA 832 1,193
34 36 114 Rest of World 182 101
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443 341 775 1,461 1,404
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Refining and Marketing
93 100 106 UK 303 295
94 96 96 USA 288 282
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187 196 202 591 577
----------------------- -------------
630 537 977 Total acquisition amortization 2,052 1,981
======================= =============
[Download Table]
SPECIAL ITEMS BY BUSINESS (PRE-TAX)
Third Second Third
Quarter Quarter Quarter Nine Months
2001 2002 2002 2002 2001
======================= =============
$ million
Exploration and Production
- 82 105 UK 237 -
- - - Rest of Europe - -
- 8 115 USA 185 -
- - 483 Rest of World 498 -
----------------------- -------------
