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BP PLC · 6-K · For 10/29/02

Filed On 10/29/02 11:57am ET   ·   SEC File 1-06262   ·   Accession Number 1191638-2-48

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  As Of               Filer                 Filing     As/For/On Docs:Pgs              Issuer               Agent

10/29/02  BP PLC                            6-K        10/29/02    1:68                                     RNS London...Exchange/FA

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 


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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    

-----------------------                                      --------------    

  3,070   2,889   3,050                                       8,339  12,124    

-----------------------                                      --------------    

                          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)   

-----------------------                                      --------------    

    125     114      87                                         312     386    

-----------------------                                      --------------    

                          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    

-----------------------                                      --------------    

                          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    

-----------------------                                      --------------    

    113     246     272                                         626     203    

-----------------------                                      --------------    

                          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

-----------------------                                       -------------

    443     341     775                                       1,461   1,404

-----------------------                                       -------------

                          Refining and Marketing                           

     93     100     106     UK                                  303     295

     94      96      96     USA                                 288     282

-----------------------                                       -------------

    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       -

-----------------------                                       -------------

      -      90     703                                         920       -

-----------------------                                       -------------

                          Gas, Power and Renewables                        

      -       -      30     UK                                   30       -

      -       -       -     Rest of Europe                        -       -

      -       -       -     USA                                   -       -

      -       -       -     Rest of World                         -       -

-----------------------                                       -------------

      -       -      30                                          30       -

-----------------------                                       -------------

                          Refining and Marketing                           

     18       -      16     UK                                   16      61

     33      23      38     Rest of Europe                       87     123

     11    (137)     29     USA                                (108)     19

     50       -       -     Rest of World                         -      71

-----------------------                                       -------------

    112    (114)     83                                          (5)    274

-----------------------                                       -------------

                          Chemicals                                        

      -      22       -     UK                                   22       -

      8      16       -     Rest of Europe                       18       8

      -       5       -     USA                                  35       -

      -       -     140     Rest of World                       140       -

-----------------------                                       -------------

      8      43     140                                         215       8

-----------------------                                       -------------

                          Other businesses and corporate                   

      -       -      35     UK                                   35       -

      -       -       -     Rest of Europe                        -       -

      -       -      90     USA                                  90       -

      -       -       -     Rest of World                         -       -

-----------------------                                       -------------

      -       -     125                                         125       -

-----------------------                                       -------------

    120      19   1,081   Total special items before interest 1,285     282

      2       -       -   Interest - bond redemption charges      -      62

-----------------------                                       -------------

    122      19   1,081   Total                               1,285     344

=======================                                       =============


                                                                [Download Table]


RECONCILIATION OF HISTORICAL COST PROFIT (LOSS)                             

TO PRO FORMA RESULT ADJUSTED FOR SPECIAL ITEMS                              

                                                           pro forma result 

                                                               adjusted for 

                              Reported   Acquisition    Special     special 

$ million                     Earnings  Amortization     Items(a)    items  
                                                                            

                              ==============================================

2Q 2002                                                                     

Exploration and Production       2,458           341         90       2,889 

Gas, Power and Renewables          114             -          -         114 

Refining and Marketing             603           196       (114)        685 

Chemicals                          203             -         43         246 

Other businesses & corporate      (128)            -          -        (128)

                              ----------------------------------------------

RC operating profit              3,250           537         19       3,806 

                              ----------------------------------------------

Interest expense                  (314)            -          -        (314)

Taxation                        (1,591)            -        348      (1,243)

MSI                                (52)            -        (16)        (68)

                             ---------------------------------------------- 

RC profit before                                                            

 exceptional items               1,293           537        351       2,181 

                             ============================================== 

Exceptional items before tax       376                                      

Taxation on exceptional items     (160)                                     

                                 -----                                      

RC profit after                                                             

 exceptional items               1,509                                      

Stock holding gains (losses)       531                                      

                                 -----                                      

HC profit                        2,040                                      

                                 =====                                      

3Q 2001                                                                     

Exploration and Production       2,627           443          -       3,070 

Gas, Power and Renewables          125             -          -         125 

Refining and Marketing             990           187        112       1,289 

Chemicals                          105             -          8         113 

Other businesses & corporate      (117)            -          -        (117)

                              ----------------------------------------------

RC operating profit              3,730           630        120       4,480 

                              ----------------------------------------------

Interest expense                  (369)            -          2        (367)

Taxation                        (1,413)            -        (43)     (1,456)

MSI                                (12)            -          -         (12)

                             ---------------------------------------------- 

RC profit before                                                            

 exceptional items               1,936           630         79       2,645 

                             ============================================== 

Exceptional items before tax       184                                      

Taxation on exceptional items     (127)                                     

                                 -----                                      

RC profit after                                                             

 exceptional items               1,993                                      

Stock holding gains (losses)      (405)                                     

                                 -----                                      

HC profit                        1,588                                      

                                 =====                                      


(a)  The special items refer to non-recurring charges and credits. The          

special items for the second quarter 2002 comprise restructuring      

charges for Exploration and Production and Chemicals, business        

interruption insurance proceeds and costs related to a pipeline       

incident in Refining and Marketing, Veba, Solvay and Erdolchemie      

integration costs and an adjustment to the North Sea deferred tax     

balance for the supplementary UK corporation tax rate. The special    

items for the third quarter 2001 comprise Castrol integration costs,  

Erdolchemie rationalization costs and a bond redemption charge.       

                                                                [Download Table]


RECONCILIATION OF HISTORICAL COST PROFIT (LOSS)                             

TO PRO FORMA RESULT ADJUSTED FOR SPECIAL ITEMS                              

                                                           pro forma result 

                                                               adjusted for 

                              Reported   Acquisition    Special     special 

$ million                     Earnings  Amortization     Items(a)    items  
                                                                            

                              ==============================================

Nine months 2002                                                            

Exploration and Production       5,958         1,461        920       8,339 

Gas, Power and Renewables          282             -         30         312 

Refining and Marketing             908           591         (5)      1,494 

Chemicals                          411             -        215         626 

Other businesses & corporate      (494)            -        125        (369)

                              ----------------------------------------------

RC operating profit              7,065         2,052      1,285      10,402 

                              ----------------------------------------------

Interest expense                  (947)            -          -        (947)

Taxation                        (3,071)            -       (242)     (3,313)

MSI                                (69)            -        (16)        (85)

                             ---------------------------------------------- 

RC profit before                                                            

 exceptional items               2,978         2,052      1,027       6,057 

                             ============================================== 

Exceptional items before tax     2,061                                      

Taxation on exceptional items     (146)                                     

                                 -----                                      

RC profit after                                                             

 exceptional items               4,893                                      

Stock holding gains (losses)     1,278                                      

                                 -----                                      

HC profit                        6,171                                      

                                 =====                                      

Nine months 2001                                                            

Exploration and Production      10,720         1,404          -      12,124 

Gas, Power and Renewables          386             -          -         386 

Refining and Marketing           3,194           577        274       4,045 

Chemicals                          195             -          8         203 

Other businesses & corporate      (348)            -          -        (348)

                              ----------------------------------------------

RC operating profit             14,147         1,981        282      16,410 

                              ----------------------------------------------

Interest expense                (1,256)            -         62      (1,194)

Taxation                        (5,268)            -       (122)     (5,390)

MSI                                (38)            -          -         (38)

                             ---------------------------------------------- 

RC profit before                                                            

 exceptional items               7,585         1,981        222       9,788 

                             ============================================== 

Exceptional items before tax       573                                      

Taxation on exceptional items     (396)                                     

                                 -----                                      

RC profit after                                                             

 exceptional items               7,762                                      

Stock holding gains (losses)      (603)                                     

                                 -----                                      

HC profit                        7,159                                      

                                 =====                                      


(a)  The special items refer to non-recurring charges and credits. The          

special items for the nine months 2002 comprise restructuring charges 

for Exploration and Production and Chemicals, Veba, Solvay and        

 Erdolchemie integration costs, business interruption insurance proceeds

and costs related to a pipeline incident in Refining and Marketing, an

adjustment to the North Sea deferred tax balance for the supplementary

UK corporation tax rate, impairment charges in Exploration and        

Production and Gas, Power and Renewables and provisions against the   

investment in Indonesia in Chemicals and for lease payments for vacant

office space in Other Businesses and Corporate. The special items for 

the nine months 2001 comprise Castrol integration costs, Erdolchemie  

and downstream European commercial business rationalization costs and 

bond redemption charges.                                              

                                                                [Download Table]


REPLACEMENT COST OPERATING PROFIT ADJUSTED FOR                               

NON-CASH CHARGES AND CERTAIN OTHER ITEMS                                     

  Third  Second   Third                                                      

Quarter Quarter Quarter                                          Nine Months 

   2001    2002    2002                                         2002    2001 

                                                                             

=======================                                        ============= 

                         $ million                                           

                         Replacement cost operating profit                   

  3,730   3,250   1,757  (reported) (a)                        7,065  14,147 

  2,104   2,227   3,506  Depreciation and amounts provided (b) 7,886   6,401 

     23     147      55  Exploration expenditure written off     261     153 

                         Dividends from JVs and associates                   

    (99)   (115)    (49)  less share of RCOP                    (286)   (377)

    (11)     (3)    (13) Dividends paid to minority shareholders (29)    (16)

   (148)    (48)    (60) Adjust provisions to cash basis (c)    (177)    (77)

                         Adjust interest and other income                    

    (34)     (3)      5   to cash basis (d)                      (11)    (76)

-----------------------                                        ------------- 

  5,565   5,455   5,201                                       14,709  20,155 

   (682)   (869)   (702) Tax paid adjusted for certain items* (2,148) (3,158)

-----------------------                                        ------------- 

  4,883   4,586   4,499  Adjusted RCOP after tax paid         12,561  16,997 

-----------------------                                        ------------- 

                         * Calculation of tax paid adjusted                  

                             for certain items                               

   (717)   (927)   (661)   Cash tax paid                      (2,033) (3,238)

    127     160      25    Tax charge on exceptional items       146     396 

    (92)   (102)    (66)   Tax shield assumption +              (261)   (316)

-----------------------                                        ------------- 

   (682)   (869)   (702)                                      (2,148) (3,158)

-----------------------                                        ------------- 

                         + Calculation of tax shield assumption              

   (308)   (342)   (218)   Interest paid                        (869) (1,053)

     30%     30%     30%   Tax rate assumption (e)                30%     30%

-----------------------                                        ------------- 

    (92)   (102)    (66)                                        (261)   (316)

-----------------------                                        ------------- 


(a)  Total replacement cost operating profit is before exceptional items,       

stock holding gains and losses and interest expense.                  

(b)  Includes depreciation and amortization relating to the fixed asset         

 revaluation adjustment and goodwill consequent upon the ARCO and Burmah

Castrol acquisitions.                                                 

(c)  Calculated as the net of charge for provisions and utilization of          

provisions.                                                           

(d)  Calculated as interest and other income, less interest received            

and dividends received from the group cash flow statement.            

(e)  Deemed tax rate for tax shield adjustment is equal to the UK statutory     

tax rate.                                                             

                                                                [Download Table]


RETURN ON AVERAGE CAPITAL EMPLOYED                                          

  Third  Second   Third                                                     

Quarter Quarter Quarter                                         Nine Months 

   2001    2002    2002                                        2002    2001 
                                                                            

=======================                                       ============= 

                          $ million                                         

                          Replacement cost basis                            

  1,936   1,293     761   RC profit before exceptional items  2,978   7,585 

    369     314     300   Interest                              947   1,256 

     12      52       8   Minority shareholders' interest        69      38 

-----------------------                                      -------------- 

  2,317   1,659   1,069   Adjusted RC profit                  3,994   8,879 

=======================                                      ============== 

 87,892  90,774  90,507   Average capital employed           89,328  87,874 

   10.5%    7.3%    4.7%  ROACE - replacement cost basis        6.0%   13.5%

-----------------------                                       ------------- 

                          Pro forma basis                                   

  2,317   1,659   1,069   Adjusted RC profit                  3,994   8,879 

    630     537     977   Acquisition amortization            2,052   1,981 

     77     367     556   Special items (post tax)            1,043     160 

 87,892  90,774  90,507   Average capital employed           89,328  87,874 

                          Average capital employed                          

 20,673  18,163  17,581     acquisition adjustment           18,008  21,504 

-----------------------                                       ------------- 

                          Average capital employed                          

 67,219  72,611  72,926     (pro forma basis)                71,320  66,370 

                          ROACE - Pro forma basis                           

   18.0%   14.1%   14.3%   adjusted for special items          13.3%   22.1%

-----------------------                                        ------------ 

                          Historical cost basis                             

                          Historical cost profit (loss)                     

  1,588   2,040   2,835     after exceptional items           6,171   7,159 

    369     314     300   Interest                              947   1,256 

     12      46       8   Minority shareholders' interest        94      38 

-----------------------                                      -------------- 

  1,969   2,400   3,143   Adjusted historical cost profit     7,212   8,453 

=======================                                      ============== 

 87,892  90,774  90,507   Average capital employed           89,328  87,874 

    9.0%   10.6%   13.9%  ROACE                                10.8%   12.8%

                                                                [Download Table]


NET DEBT RATIO - NET DEBT: NET DEBT + EQUITY                                

  Third  Second   Third                                                     

Quarter Quarter Quarter                                         Nine Months 

   2001    2002    2002                                        2002    2001 
                                                                            

=======================                                       ============= 

                          $ million                                         

 20,474  21,409  22,276   Gross debt                         22,276  20,474 

  1,957   1,569   1,290   Cash and current asset investments  1,290   1,957 

-----------------------                                       ------------- 

 18,517  19,840  20,986   Net debt                           20,986  18,517 

=======================                                       ============= 

 67,931  68,126  69,203   Equity                             69,203  67,931 

     21%     23%     23%  Net debt ratio                         23%     21%

-----------------------                                      -------------- 

 20,412  18,028  17,134   Acquisition adjustment             17,134  20,412 

-----------------------                                      -------------- 

     28%     28%     29%  Net debt ratio - pro forma basis       29%     28%

=======================                                      ============== 


            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: 29 October 2002                            /s/ D. J. PEARL               
                                                  ..............................
                               D. J. PEARL
                                            Deputy Company Secretary
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