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 April, 2008
BP p.l.c.
(Translation of registrant's name into English)
1 ST JAMES'S SQUARE, LONDON, SW1Y 4PD, ENGLAND
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F |X| Form 40-F
--------------- ----------------
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes No |X|
--------------- ----------------
BP p.l.c.
Group results
First quarter 2008
London 29 April 2008
FOR IMMEDIATE RELEASE
----------------------
First
First Fourth First quarter
quarter quarter quarter 2008 vs
2008 2007 2007 2007
=========================================
$ million
Profit for the period(a) 7,619 4,399 4,664
Inventory holding (gains) losses, net of tax(b) (1,031) (1,004) (220)
-----------------------------------------
Replacement cost profit(b) 6,588 3,395 4,444 48%
=========================================
- per ordinary share (pence) 17.63 8.75 11.76
- per ordinary share (cents) 34.90 17.90 22.93 52%
- per ADS (dollars) 2.09 1.07 1.38
=========================================
- BP's first-quarter replacement cost profit was $6,588 million, compared
with $4,444 million a year ago, an increase of 48%.
- Non-operating items and fair value accounting effects for the first quarter
had a net $4 million unfavourable impact compared to a net $36 million
favourable impact in the first quarter of 2007 - see further details on
page 3. Non-operating items for the first quarter included a pre-tax charge
of $307 million for restructuring, integration and rationalization costs
associated with BP's forward agenda.
- Net cash provided by operating activities for the quarter was $10.9 billion
compared with $8.0 billion a year ago.
- The effective tax rate on replacement cost profit(b) for the quarter was
37%; the rate was 34% a year ago.
- Net debt at the end of the quarter was $23.8 billion. The ratio of net debt
to net debt plus equity was 19% compared with 20% a year ago. Net debt has
been redefined as described on page 5.
- Capital expenditure, excluding acquisitions and asset exchanges, was $7.1
billion for the quarter. Total capital expenditure and acquisitions was
$9.0 billion. Capital expenditure excluding acquisitions and asset
exchanges, and excluding the accounting for our transaction with Husky, is
expected to be around $21-22 billion for the year. Disposal proceeds were
$0.3 billion for the quarter.
- The quarterly dividend, to be paid in June, is 13.525 cents per share
($0.8115 per ADS) compared with 10.325 cents per share a year ago, an
increase of 31%. In sterling terms, the quarterly dividend is 6.830 pence
per share, compared with 5.151 pence per share a year ago, an increase of
33%. During the quarter, the company repurchased 91 million of its own
shares for cancellation at a cost of $1 billion.
(a)Profit attributable to BP shareholders.
(b)With effect from 1 January 2008, replacement cost profit excludes inventory
holding gains and losses net of tax. Comparative amounts have been amended to
the new basis. See page 2 for further details.
The commentaries above and following are based on replacement cost profit and
should be read in conjunction with the cautionary statement on page 11.
Analysis of replacement cost profit and reconciliation to profit
for the period
----------------------------------------------------------------
First Fourth First
quarter quarter quarter
2008 2007 2007
==================================
$ million
Exploration and Production 10,072 7,870 6,306
Refining and Marketing 1,249 (1,296) 804
Other businesses and corporate (213) (427) (98)
Consolidation adjustment (195) (267) 42
----------------------------------
RC profit before interest and tax(a) 10,913 5,880 7,054
----------------------------------
Finance costs and net finance income relating to
pensions and other post-retirement benefits (246) (242) (171)
Taxation on a replacement cost basis(b) (3,947) (2,138) (2,357)
Minority interest (132) (105) (82)
----------------------------------
Replacement cost profit attributable to BP shareholders(b) 6,588 3,395 4,444
==================================
Inventory holding gains (losses) 1,593 1,427 303
Taxation (charge) credit on inventory holding gains and losses(b) (562) (423) (83)
----------------------------------
Profit for the period attributable to BP shareholders 7,619 4,399 4,664
==================================
(a)Replacement cost profit reflects the current cost of supplies. The
replacement cost profit for the period is arrived at by excluding from profit
inventory holding gains and losses. BP uses this measure to assist investors to
assess BP's performance from period to period. Replacement cost profit is not a
recognized GAAP measure.
(b)Effective 1 January 2008, replacement cost profit excludes inventory holding
gains and losses and their associated tax effect. Previously, replacement cost
profit excluded inventory holding gains and losses while the tax charge remained
unadjusted and included the tax effect on inventory holding gains and losses.
Comparative amounts have been amended to the new basis and the impact of the
change is shown in the table below. There is no impact on profit for the period.
Fourth First
quarter quarter
2007 2007
====================
$ million
Replacement cost profit attributable to BP shareholders
-as previously reported 2,972 4,361
-tax effect on inventory holding gains and losses 423 83
--------------------
-as amended 3,395 4,444
====================
Non-operating items and fair value accounting effects
------------------------------------------------------
Non-operating items(a)
First Fourth First
quarter quarter quarter
2008 2007 2007
================================
$ million
Exploration and Production (376) (654) 757
Refining and Marketing 609 (1,146) (229)
Other businesses and corporate (81) (87) 34
--------------------------------
152 (1,887) 562
Taxation(b) (56) 715 (192)
--------------------------------
96 (1,172) 370
================================
Fair value accounting effects(c)
First Fourth First
quarter quarter quarter
$ million 2008 2007 2007
================================
Exploration and Production
Unrecognized gains (losses) brought forward from
previous period 107 234 155
Unrecognized (gains) losses carried forward (366) (107) (124)
--------------------------------
Favourable (unfavourable) impact relative to
management's measure of performance (259) 127 31
================================
Refining and Marketing(d)
Unrecognized gains (losses) brought forward from
previous period 429 367 72
Unrecognized (gains) losses carried forward (328) (429) (611)
--------------------------------
Favourable (unfavourable) impact relative to
management's measure of performance 101 (62) (539)
================================
(158) 65 (508)
Taxation(b) 58 (25) 174
--------------------------------
(100) 40 (334)
================================
Total of non-operating items and fair value accounting effects
First Fourth First
quarter quarter quarter
2008 2007 2007
================================
$ million
Exploration and Production (635) (527) 788
Refining and Marketing 710 (1,208) (768)
Other businesses and corporate (81) (87) 34
--------------------------------
(6) (1,822) 54
Taxation(b) 2 690 (18)
--------------------------------
(4) (1,132) 36
================================
(a)An analysis of non-operating items by type is provided on page 20 and a
geographical split is shown on pages 7, 9 and 10.
(b)Tax is calculated using the quarter's effective tax rate on replacement cost
profit. Amounts for comparative periods have been amended to reflect a
redefinition of the effective tax rate on replacement cost profit arising as a
result of the exclusion of tax effects on inventory holding gains and losses as
described on page 2.
(c)An explanation of fair value accounting effects is provided on page 11.
(d)Fair value accounting effects, in respect of the first quarter 2007 for the
Refining and Marketing segment, have been revised from those disclosed
previously. The revisions reflect changes in the basis for valuation of certain
forward supply contracts to be consistent with the method used for other forward
supply contracts when calculating management's internal measure of performance.
The changes to comparative figures are not material in relation to management's
internal measure of the Refining and Marketing segment's performance. The
changes have no impact on the results reported under IFRS.
Per share amounts
-----------------
First Fourth First
quarter quarter quarter
2008 2007 2007
====================================
Results for the period ($ million)
Profit(a) 7,619 4,399 4,664
Replacement cost profit 6,588 3,395 4,444
------------------------------------
Shares in issue at period end (thousand)(b) 18,877,537 18,922,786 19,290,540
- ADS equivalent (thousand)(b) 3,146,256 3,153,798 3,215,090
Average number of shares outstanding (thousand)(b) 18,875,611 18,979,138 19,384,508
- ADS equivalent (thousand)(b) 3,145,935 3,163,190 3,230,751
Shares repurchased in the period (thousand) 90,996 121,175 237,916
Per ordinary share (cents)
Profit for the period 40.36 23.15 24.06
RC profit for the period 34.90 17.90 22.93
Per ADS (cents)
Profit for the period 242.16 138.90 144.36
RC profit for the period 209.40 107.40 137.58
------------------------------------
(a)Profit attributable to BP shareholders.
(b)Excludes treasury shares.
Dividends
---------
Dividends Payable
BP today announced a dividend of 13.525 cents per ordinary share to be paid in
June. Holders of ordinary shares will receive 6.830 pence per share and holders
of American Depository Receipts (ADRs) $0.8115 per ADS. The dividend is payable
on 9 June to shareholders on the register on 16 May. Participants in the
Dividend Reinvestment Plan (DRIP) or the DRIP facility in the US Direct Access
Plan will receive the dividend in the form of shares, also on 9 June.
Dividends Paid
First Fourth First
quarter quarter quarter
2008 2007 2007
=================================
Dividends paid per ordinary share
cents 13.525 10.825 10.325
pence 6.813 5.308 5.258
Dividends paid per ADS (cents) 81.15 64.95 61.95
=================================
Net debt ratio - net debt: net debt + equity
---------------------------------------------
First Fourth First
quarter quarter quarter
2008 2007 2007
=================================
$ million
Gross debt 29,871 31,045 23,728
Less: fair value asset (liability) of hedges related to finance debt 1,234 666 328
---------------------------------
28,637 30,379 23,400
Cash and cash equivalents 4,820 3,562 1,956
---------------------------------
Net debt 23,817 26,817 21,444
=================================
Equity 99,704 94,652 85,749
Net debt ratio 19% 22% 20%
=================================
Net debt has been redefined to include the fair value of associated derivative
financial instruments that are used to hedge foreign exchange and interest rate
risks relating to finance debt, for which hedge accounting is claimed. The
derivatives are reported on the balance sheet within the headings 'Derivative
financial instruments'. Amounts for comparative periods are presented on a
consistent basis. See note 2(c) on page 24 for further information.
Exploration and Production
--------------------------
$ million First Fourth First
quarter quarter quarter
2008 2007 2007
=================================
Profit before interest and tax(a) 10,054 7,950 6,317
Inventory holding (gains) losses 18 (80) (11)
---------------------------------
Replacement cost profit before interest and tax 10,072 7,870 6,306
=================================
By region:
UK 923 725 1,122
Rest of Europe 276 266 727
US 3,085 2,240 1,731
Rest of World 5,788 4,639 2,726
---------------------------------
10,072 7,870 6,306
=================================
(a)Includes profit after interest and tax of equity-accounted entities.
The replacement cost profit before interest and tax for the first quarter was
$10,072 million, an increase of 60% over the first quarter of 2007. This result
benefited from higher oil and gas realizations and a higher contribution from
the gas marketing and trading and LNG businesses. This was partly offset by
higher costs, primarily reflecting the impacts of higher depreciation and
sector-specific inflation. The result also included higher income from
equity-accounted entities, primarily from TNK-BP due to higher prices. In
addition, BP's share of income from TNK-BP benefited from the effect of lagged
tax reference prices.
The result included a net non-operating charge of $376 million with the most
significant items being fair value losses on embedded derivatives partly offset
by the release of certain provisions. The corresponding quarter in 2007
contained a net non-operating gain of $757 million. In the first quarter, fair
value accounting effects had an unfavourable impact of $259 million compared
with a favourable impact of $31 million a year ago.
Reported production for the quarter was 3,913mboe/d and was flat compared with
the first quarter of 2007. After adjusting for the impact of lower entitlement
in our production-sharing agreements (PSAs), production was more than 5% higher
than the first quarter of 2007. This primarily reflects the ramp-up of
production following the start-up of major projects in 2007. As previously
indicated, if oil prices remain at $100 per barrel we expect 2008 reported
production to be broadly flat compared with 2007, with underlying production
growth being offset by PSA entitlement impacts. We expect the quarterly phasing
of underlying production during the year to reflect the normal seasonal effects
associated with turnaround activity in the second and third quarters.
During the quarter, we had first production from the Mondo field within the
Kizomba C development in Angola, where BP holds a 26.67% interest. Shortly after
the end of the quarter, production commenced at Deep Water Gunashli on schedule;
this completes the third and final phase of development of the
Azeri-Chirag-Gunashli field (BP 34.1% and operator) in the Azerbaijan sector of
the Caspian Sea. We had exploration success in Angola with the Portia discovery,
in Egypt with the Satis discovery and in the North Sea with a discovery close to
the Foinaven production facility.
On 31 March, we completed the deal with Husky Energy Inc. to create an
integrated North American oil sands business by means of two separate joint
ventures, one of which gives BP a 50% interest in Husky's Sunrise field in
Alberta, Canada. Capital expenditure of $2,848 million in respect of this
transaction is reflected in the first quarter of 2008.
Shortly after the end of the quarter, we announced the Kodiak discovery in the
deepwater Gulf of Mexico and, jointly with ConocoPhillips, announced that we
have combined resources to start Denali - The Alaska Gas Pipeline.
Exploration and Production
--------------------------
$ million First Fourth First
quarter quarter quarter
2008 2007 2007
=================================
Non-operating items
UK (694) (567) 152
Rest of Europe - (3) 533
US (8) 213 (7)
Rest of World 326 (297) 79
---------------------------------
(376) (654) 757
=================================
Fair value accounting effects(a)
UK 17 (11) 38
Rest of Europe - - -
US (142) 19 (6)
Rest of World (134) 119 (1)
---------------------------------
(259) 127 31
=================================
Exploration expense
UK 92 17 20
Rest of Europe - - -
US 72 61 77
Rest of World 129 123 59
---------------------------------
293 201 156
=================================
Production (net of royalties)(b)
Liquids (mb/d) (net of royalties)(c)
UK 191 199 236
Rest of Europe 44 50 59
US 554 523 526
Rest of World 1,664 1,697 1,625
---------------------------------
2,453 2,469 2,446
=================================
Natural gas (mmcf/d) (net of royalties)
UK 971 853 907
Rest of Europe 25 26 41
US 2,149 2,183 2,163
Rest of World 5,319 5,275 5,391
---------------------------------
8,464 8,337 8,502
=================================
Total hydrocarbons (mboe/d)(d)
UK 358 346 393
Rest of Europe 48 55 66
US 925 900 899
Rest of World 2,582 2,606 2,554
---------------------------------
3,913 3,907 3,912
=================================
Average realizations(e)
Total liquids ($/bbl) 90.92 82.72 53.43
Natural gas ($/mcf) 5.88 4.83 4.86
Total hydrocarbons ($/boe) 62.27 56.03 41.06
=================================
(a)These effects represent the favourable (unfavourable) impact relative to
management's measure of performance. Further information on fair value
accounting effects is provided on pages 3 and 11.
(b)Includes BP's share of production of equity-accounted entities.
(c)Crude oil and natural gas liquids.
(d)Natural gas is converted to oil equivalent at 5.8 billion cubic feet = 1
million barrels.
(e)Based on sales of consolidated subsidiaries only - this excludes
equity-accounted entities.
(f)Because of rounding, some totals may not agree exactly with the sum of their
component parts.
Refining and Marketing
------------------------
First Fourth First
quarter quarter quarter
2008 2007 2007
=================================
$ million
Profit (loss) before interest and tax(a) 2,840 67 1,095
Inventory holding (gains) losses (1,591) (1,363) (291)
---------------------------------
Replacement cost profit (loss) before interest and tax 1,249 (1,296) 804
=================================
By region:
UK 107 134 (42)
Rest of Europe 629 278 298
US 154 (1,805) 129
Rest of World 359 97 419
---------------------------------
1,249 (1,296) 804
=================================
(a)Includes profit after interest and tax of equity-accounted entities.
Refining and Marketing comprises Fuels Value Chains (FVC) and International
Businesses. The FVCs include refineries, supply, logistics and marketing and
trading activities. The International Businesses include lubricants, chemicals,
LPG, aviation and marine fuels.
The replacement cost profit before interest and tax for the first quarter was
$1,249 million compared with $804 million for the same period last year. The
quarter's result included a net non-operating gain of $609 million, primarily in
respect of the gain recognized on the contribution of the Toledo refinery into a
joint venture with Husky Energy Inc., as part of the integrated North American
oil sands deal completed on 31 March 2008. This compares with a net
non-operating charge of $229 million for the same period last year. In the first
quarter, fair value accounting effects had a favourable impact of $101 million.
A year ago, the impact was $539 million unfavourable.
Compared with the first quarter of 2007, our result reflected the adverse
impacts of a significantly lower US refining margin environment and higher
turnaround activities, primarily at the Carson refinery.
In the FVCs, we saw weaker US integrated margins, particularly on the West
Coast, which more than offset improved performance in other regions. The average
refining Global Indicator Margin (GIM) and BP's actual refining margin for the
first quarter were both significantly lower than those in the first quarter of
2007. Marketing margins were steady year on year, with slightly lower volumes
versus a year ago.
Refining availability continued to improve for the sixth successive quarter,
reaching 88.0% for the first quarter of 2008 compared with 81.6% in the first
quarter of 2007. During the quarter, we completed the largest turnaround in the
history of the Carson refinery, restored the Whiting refinery to its full clean
fuel capability of 360mb/d in March and successfully restarted the sour crude
distillation capacity at the Texas City refinery with most of its economic
capability on track to be restored by mid-2008.
Refining throughput for the quarter was 2,166mb/d compared with 2,232mb/d for
the same quarter last year. The lower throughput was mainly due to the
turnaround activities at Carson.
Our International Businesses made a significant contribution to the segment
result in both the first quarter and in the same period a year ago. We continued
to make progress on reducing complexity and costs in the lubricants and aviation
fuels businesses through portfolio simplification.
Operations at our new 900ktepa Zhuhai purified terephthalic acid (PTA) plant,
which was successfully commissioned in early 2008, continued to improve with the
production rate reaching over 90% in March.
On 17 March 2008, BP and Irving Oil entered into a memorandum of understanding
to work together on the next phase of engineering, design, and feasibility for
the proposed Eider Rock refinery in Saint John, New Brunswick, Canada. BP will
contribute $40 million as its share of funding for this stage of the study and
the two companies will also investigate the possibility of forming a joint
venture to build the refinery should they decide to proceed.
Refining margins have improved to date in the second quarter but still remain
significantly lower than the same quarter last year. The segment marketing
businesses are likely to continue to experience pressure from the effects of
higher product prices and a slowing of the OECD economies. We expect continued
improvement in BP's refining availability as the units at Texas City come
onstream progressively during the rest of the year.
Refining and Marketing
----------------------
First Fourth First
quarter quarter quarter
$ million 2008 2007 2007
=================================
Non-operating items
UK (49) (10) (163)
Rest of Europe (85) (56) (12)
US 774 (977) (58)
Rest of World (31) (103) 4
---------------------------------
609 (1,146) (229)
=================================
Fair value accounting effects(a)
UK (4) 1 (181)
Rest of Europe 36 5 (165)
US 95 (32) (165)
Rest of World (26) (36) (28)
---------------------------------
101 (62) (539)
=================================
Refinery throughputs (mb/d)
UK - - 148
Rest of Europe 775 689 640
US 1,076 996 1,152
Rest of World 315 313 292
---------------------------------
Total throughput 2,166 1,998 2,232
=================================
Refining availability (%)(b) 88.0 84.0 81.6
=================================
Oil sales volumes (mb/d)
Refined products
UK 321 328 335
Rest of Europe 1,244 1,330 1,246
US 1,455 1,455 1,564
Rest of World 692 680 624
---------------------------------
Total marketing sales 3,712 3,793 3,769
Trading/supply sales 2,047 1,696 2,026
---------------------------------
Total refined product sales 5,759 5,489 5,795
Crude oil 1,860 1,659 2,017
---------------------------------
Total oil sales 7,619 7,148 7,812
=================================
Global Indicator Refining Margin ($/bbl)(c)
NWE 4.79 4.84 4.16
USGC 6.21 6.82 10.14
Midwest 1.11 3.39 7.62
USWC 5.91 8.49 22.21
Singapore 4.76 5.80 4.84
BP Average 4.57 5.68 9.45
=================================
Chemicals production (kte)
UK 261 228 256
Rest of Europe 708 660 748
US 1,036 1,088 1,076
Rest of World 1,531 1,497 1,520
---------------------------------
Total production 3,536 3,473 3,600
=================================
(a)These effects represent the favourable (unfavourable) impact relative to
management's measure of performance. Further information on fair value
accounting effects is provided on pages 3 and 11.
(b)Refining availability is defined as the ratio of units which are available
for processing, regardless of whether they are actually being used, to total
capacity. Where there is planned maintenance, such capacity is not regarded as
being available.
(c)The Global Indicator Refining Margin (GIM) is the average of regional
indicator margins weighted for BP's crude refining capacity in each region. Each
regional indicator margin is based on a single representative crude with product
yields characteristic of the typical level of upgrading complexity. The regional
indicator margins may not be representative of the margins achieved by BP in any
period because of BP's particular refinery configurations and crude and product
slate.
Other businesses and corporate
------------------------------
First Fourth First
quarter quarter quarter
$ million 2008 2007 2007
=================================
Profit (loss) before interest and tax(a) (193) (443) (97)
Inventory holding (gains) losses (20) 16 (1)
---------------------------------
Replacement cost profit (loss) before interest and tax (213) (427) (98)
=================================
By region:
UK (119) (87) (26)
Rest of Europe - 5 21
US (152) (336) (133)
Rest of World 58 (9) 40
---------------------------------
(213) (427) (98)
=================================
Results include:
Non-operating items
UK (6) (28) -
Rest of Europe (13) (2) 28
US (49) (57) 6
Rest of World (13) - -
---------------------------------
(81) (87) 34
=================================
(a)Includes profit after interest and tax of equity-accounted entities.
Other businesses and corporate comprises the Alternative Energy business,
Shipping, the group's aluminium asset, Treasury (which includes interest income
on the group's cash and cash equivalents), and corporate activities worldwide.
The replacement cost profit before interest and tax for the first quarter was a
loss of $213 million, compared with a loss of $98 million a year ago.
The net non-operating charge for the first quarter was $81 million, including a
charge for restructuring costs and other provisions, partly offset by a net
disposal gain. This compares with a net non-operating gain of $34 million a year
ago.
Our estimates of 2008 charges for Other businesses and corporate, excluding
non-operating items, remain in line with the $1,500 million (+/- $200 million)
guidance provided in our 2008 strategy presentation.
At the start of the year, our Alternative Energy business broadened its scope to
include BP's biofuels business, carbon capture and storage (CCS), clean coal and
distributed energy, alongside the existing solar, wind, gas-fired power and
hydrogen energy activities. In January, we announced our intention to pursue
development options for a hydrogen power plant in Abu Dhabi with Abu Dhabi
Future Energy Company (Masdar), through our Hydrogen Energy joint venture with
Rio Tinto.
In addition, Alternative Energy and Dominion entered into a 50:50 joint venture
to develop a wind farm in Indiana with a nameplate capacity of 300MW and we
formed a 50:50 joint venture with NRG Energy, Inc. for the development and
operation of a commercial wind farm, intended to be located in Texas and with a
nameplate capacity of 150MW. Since the end of the quarter, we announced our
intention to take a 50% stake in Tropical BioEnergia SA, a joint venture
established by Brazilian companies Santelisa Vale and Maeda Group, which is
constructing an ethanol refinery in Brazil and also plans to build a second
refinery.
In 2008, Alternative Energy expects to achieve total solar cell sales of 170MW
and to install total gross capacity for wind generation of 1GW. We plan to
report changes to wind and solar capacity on a quarterly basis. Since the
beginning of 2007, additional solar manufacturing capacity has been added at our
Madrid plant and wind capacity has been added at Cedar Creek in Colorado, USA
and Dhule in India.
First Fourth First
quarter quarter quarter
2008 2007 2007
=================================
Total capacity as at period-end (megawatts)
Wind(a) 373 373 32
Solar(b) 228 228 201
=================================
(a)Wind capacity is the sum of the rated capacities of the assets/turbines that
have entered into commercial operation, including jointly controlled entities
(gross).
(b)Solar capacity is the theoretical cell production capacity per annum of
in-house manufacturing facilities, including jointly controlled entities
(gross).
Information on fair value accounting effects
--------------------------------------------
BP uses derivative instruments to manage the economic exposure relating to
inventories above normal operating requirements of crude oil, natural gas and
petroleum products as well as certain contracts to supply physical volumes at
future dates. Under IFRS, these inventories and contracts are recorded at
historic cost and on an accruals basis respectively. The related derivative
instruments, however, are required to be recorded at fair value with gains and
losses recognized in income because hedge accounting is either not permitted or
not followed, principally due to the impracticality of effectiveness testing
requirements. Therefore, measurement differences in relation to recognition of
gains and losses occur. Gains and losses on these inventories and contracts are
not recognized until the commodity is sold in a subsequent accounting period.
Gains and losses on the related derivative commodity contracts are recognized in
the income statement from the time the derivative commodity contract is entered
into on a fair value basis using forward prices consistent with the contract
maturity.
IFRS requires that inventory held for trading be recorded at its fair value
using period end spot prices whereas any related derivative commodity
instruments are required to be recorded at values based on forward prices
consistent with the contract maturity. Depending on market conditions, these
forward prices can be either higher or lower than spot prices resulting in
measurement differences.
BP enters into contracts for pipelines and storage capacity which, under IFRS,
are recorded on an accruals basis. These contracts are risk managed using a
variety of derivative instruments which are fair valued under IFRS. This results
in measurement differences in relation to recognition of gains and losses.
The way that BP manages the economic exposures described above, and measures
performance internally, differs from the way these activities are measured under
IFRS. BP calculates this difference by comparing the IFRS result with
management's internal measure of performance, under which the inventory and the
supply and capacity contracts in question are valued based on fair value using
relevant forward prices prevailing at the end of the period. We believe that
disclosing management's estimate of this difference provides useful information
for investors because it enables investors to see the economic effect of these
activities as a whole. The impacts of fair value accounting effects, relative to
management's internal measure of performance, are shown in the table on page 3.
Information for all quarters of 2005 - 2007 can be found at www.bp.com/FVAE.
Cautionary statement: The foregoing discussion contains forward-looking
statements particularly those regarding production, restoration of refinery
economic capability, refining margins, likely continuing pressures on marketing
businesses, improvements in refining availability, expected total solar cell
sales and installed total gross capacity for wind generation. By their nature,
forward-looking statements involve risk and uncertainty and actual results may
differ from those expressed in such statements depending on a variety of factors
including the following: the timing of bringing new fields onstream; industry
product supply; demand and pricing; operational problems; general economic
conditions; political stability and economic growth in relevant areas of the
world; changes in laws and governmental regulations; exchange rate fluctuations;
development and use of new technology; the success or otherwise of partnering;
the actions of competitors; natural disasters and adverse weather conditions;
changes in public expectations and other changes to business conditions; wars
and acts of terrorism or sabotage; and other factors discussed in this
Announcement. For more information you should refer to our Annual Report and
Accounts 2007 and our 2007 Annual Report on Form 20-F filed with the US
Securities and Exchange Commission.
Group income statement
-----------------------
First Fourth First
quarter quarter quarter
2008 2007 2007
================================
$ million
Sales and other operating revenues 87,745 79,852 61,307
Earnings from jointly controlled entities - after interest and tax 975 992 333
Earnings from associates - after interest and tax 225 157 163
Interest and other revenues 278 221 233
--------------------------------
Total revenues (Note 4) 89,223 81,222 62,036
Gains on sale of businesses and fixed assets 925 270 680
--------------------------------
Total revenues and other income 90,148 81,492 62,716
Purchases 61,533 56,313 42,660
Production and manufacturing expenses 6,799 7,590 5,752
Production and similar taxes (Note 5) 1,609 1,518 747
Depreciation, depletion and amortization 2,782 3,020 2,519
Impairment and losses on sale of businesses and fixed assets 40 872 223
Exploration expense 293 201 156
Distribution and administration expenses 3,896 4,212 3,457
Fair value (gain) loss on embedded derivatives 690 459 (155)
--------------------------------
Profit before interest and taxation 12,506 7,307 7,357
Finance costs (Note 6) 406 408 331
Net finance income relating to pensions and
other post-retirement benefits (Note 7) (160) (166) (160)
--------------------------------
Profit before taxation 12,260 7,065 7,186
Taxation 4,509 2,561 2,440
--------------------------------
Profit for the period 7,751 4,504 4,746
================================
Attributable to:
BP shareholders 7,619 4,399 4,664
Minority interest 132 105 82
--------------------------------
7,751 4,504 4,746
================================
Earnings per share - cents
Profit for the period attributable to BP shareholders
Basic 40.36 23.15 24.06
Diluted 40.00 22.65 23.94
Group balance sheet
-------------------
31 March 31 December
2008 2007
========================
$ million
Non-current assets
Property, plant and equipment 99,512 97,989
Goodwill 11,012 11,006
Intangible assets 6,729 6,652
Investments in jointly controlled entities 22,719 18,113
Investments in associates 4,749 4,579
Other investments 1,666 1,830
------------------------
Fixed assets 146,387 140,169
Loans 1,017 999
Other receivables 983 968
Derivative financial instruments 5,606 3,741
Prepayments 1,208 1,083
Defined benefit pension plan surplus 8,951 8,914
------------------------
164,152 155,874
------------------------
Current assets
Loans 160 165
Inventories 26,855 26,554
Trade and other receivables 43,698 38,020
Derivative financial instruments 8,962 6,321
Prepayments 3,771 3,589
Current tax receivable 250 705
Cash and cash equivalents 4,820 3,562
------------------------
88,516 78,916
Assets classified as held for sale - 1,286
------------------------
88,516 80,202
------------------------
Total assets 252,668 236,076
========================
Current liabilities
Trade and other payables 47,546 43,152
Derivative financial instruments 8,356 6,405
Accruals 6,466 6,640
Finance debt 13,820 15,394
Current tax payable 4,798 3,282
Provisions 1,957 2,195
------------------------
82,943 77,068
Liabilities directly associated with the assets classified as held for sale - 163
------------------------
82,943 77,231
------------------------
Non-current liabilities
Other payables 3,032 1,251
Derivative financial instruments 7,104 5,002
Accruals 959 959
Finance debt 16,051 15,651
Deferred tax liabilities 20,264 19,215
Provisions 13,055 12,900
Defined benefit pension plan and other
post-retirement benefit plan deficits 9,556 9,215
------------------------
70,021 64,193
------------------------
Total liabilities 152,964 141,424
------------------------
Net assets 99,704 94,652
========================
Equity
BP shareholders' equity 98,642 93,690
Minority interest 1,062 962
------------------------
99,704 94,652
========================
Group statement of recognized income and expense
-------------------------------------------------
First Fourth First
quarter quarter quarter
2008 2007 2007
================================
$ million
Currency translation differences 778 304 174
Exchange gain on translation of foreign operations transferred to
gain on sale of businesses and fixed assets - - (19)
Actuarial gain relating to pensions and other post-retirement benefits - 1,717 -
Available-for-sale investments marked to market (191) 225 (109)
Available-for-sale investments - recycled to the income statement (5) - -
Cash flow hedges marked to market 74 (25) 28
Cash flow hedges - recycled to the income statement (2) 12 (60)
Cash flow hedges - recycled to the balance sheet (23) (31) (7)
Taxation (118) (181) (77)
--------------------------------
Net income (expense) recognized directly in equity 513 2,021 (70)
Profit for the period 7,751 4,504 4,746
--------------------------------
Total recognized income and expense for the period 8,264 6,525 4,676
================================
Attributable to:
BP shareholders 8,128 6,448 4,578
Minority interest 136 77 98
--------------------------------
8,264 6,525 4,676
================================
Movement in shareholders' equity
--------------------------------
BP
shareholders' Minority Total
equity interest equity
======================================
$ million
At 31 December 2007 93,690 962 94,652
--------------------------------------
Currency translation differences (net of tax) 843 4 847
Available-for-sale investments (net of tax) (168) - (168)
Cash flow hedges (net of tax) 49 - 49
Tax on share-based payments (215) - (215)
Profit for the period 7,619 132 7,751
--------------------------------------
Total recognized income and expense for the period 8,128 136 8,264
--------------------------------------
Dividends (2,554) (36) (2,590)
Net repurchase of ordinary share capital (795) - (795)
Share-based payments 173 - 173
--------------------------------------
At 31 March 2008 98,642 1,062 99,704
======================================
Group cash flow statement
-------------------------
First Fourth First
quarter quarter quarter
2008 2007 2007
=================================
$ million
Operating activities
Profit before taxation 12,260 7,065 7,186
Adjustments to reconcile profit before taxation to net cash
provided by operating activities
Exploration expenditure written off 184 86 55
Depreciation, depletion and amortization 2,782 3,020 2,519
Impairment and (gain) loss on sale of businesses and fixed assets (885) 602 (457)
Earnings from jointly controlled entities and associates (1,200) (1,149) (496)
Dividends received from jointly controlled entities and associates 1,387 371 229
Working capital and other movements (3,634) (5,706) (1,058)
---------------------------------
Net cash provided by operating activities 10,894 4,289 7,978
---------------------------------
Investing activities
Capital expenditure (4,435) (5,515) (3,645)
Acquisitions, net of cash acquired - - (1,087)
Investment in jointly controlled entities (366) (285) (9)
Investment in associates (4) (41) (44)
Proceeds from disposal of fixed assets 276 392 310
Proceeds from disposal of businesses, net of cash disposed - 5 608
Proceeds from loan repayments 122 69 45
---------------------------------
Net cash (used in) provided by investing activities (4,407) (5,375) (3,822)
---------------------------------
Financing activities
Net repurchase of shares (889) (1,352) (2,402)
Proceeds from long-term financing 2,177 5,131 1,358
Repayments of long-term financing (537) (1,596) (1,134)
Net increase (decrease) in short-term debt (3,424) 2,125 (558)
Dividends paid - BP shareholders (2,554) (2,056) (2,001)
- Minority interest (36) (68) (64)
---------------------------------
Net cash (used in) provided by financing activities (5,263) 2,184 (4,801)
---------------------------------
Currency translation differences relating to cash and
cash equivalents 34 54 11
---------------------------------
Increase (decrease) in cash and cash equivalents 1,258 1,152 (634)
Cash and cash equivalents at beginning of period 3,562 2,410 2,590
---------------------------------
Cash and cash equivalents at end of period 4,820 3,562 1,956
=================================
Group cash flow statement
-------------------------
First Fourth First
quarter quarter quarter
2008 2007 2007
================================
$ million
Working capital and other movements
Interest receivable (97) (147) (95)
Interest received 99 160 85
Finance costs 406 408 331
Interest paid (366) (395) (333)
Net finance income relating to pensions and other
post-retirement benefits (160) (166) (160)
Share-based payments 65 109 75
Net operating charge for pensions and other post-retirement benefits,
less contributions and benefit payments for unfunded plans 117 (225) (87)
Net charge for provisions, less payments (165) (40) (157)
(Increase) decrease in inventories 276 (5,121) (648)
(Increase) decrease in other current and non-current assets (9,844) 1,736 3,139
Increase (decrease) in other current and non-current liabilities 7,995 676 (2,000)
Income taxes paid (1,960) (2,701) (1,208)
--------------------------------
(3,634) (5,706) (1,058)
================================
Capital expenditure and acquisitions
------------------------------------
First Fourth First
quarter quarter quarter
2008 2007 2007
================================
$ million
By business
Exploration and Production
UK 225 303 222
Rest of Europe 168 145 87
US 1,215 1,311 1,067
Rest of World(a) 4,394 2,391 1,647
--------------------------------
6,002 4,150 3,023
--------------------------------
Refining and Marketing
UK 53 151 70
Rest of Europe(b) 216 683 1,210
US(a) 2,297 757 269
Rest of World 102 294 80
--------------------------------
2,668 1,885 1,629
--------------------------------
Other businesses and corporate
UK 71 119 44
Rest of Europe 13 20 9
US 267 324 51
Rest of World 24 115 4
--------------------------------
375 578 108
--------------------------------
9,045 6,613 4,760
================================
By geographical area
UK 349 573 336
Rest of Europe(b) 397 848 1,306
US(a) 3,779 2,392 1,387
Rest of World(a) 4,520 2,800 1,731
--------------------------------
9,045 6,613 4,760
================================
Included above:
Acquisitions and asset exchanges(a) (b) 1,964 - 1,113
================================
(a)First quarter 2008 includes capital expenditure of $2,848 million in
Exploration and Production and an asset exchange of $1,793 million in Refining
and Marketing relating to the formation of an integrated North American oil
sands business. For further information see Note 3.
(b)First quarter 2007 includes $1,108 million for the acquisition of Chevron's
Netherlands manufacturing company.
Exchange rates
--------------
First Fourth First
quarter quarter quarter
2008 2007 2007
================================
US dollar/sterling average rate for the period 1.98 2.05 1.95
US dollar/sterling period-end rate 1.99 1.99 1.96
US dollar/euro average rate for the period 1.50 1.45 1.31
US dollar/euro period-end rate 1.58 1.47 1.33
--------------------------------
Analysis of profit before interest and tax
------------------------------------------
First Fourth First
quarter quarter quarter
2008 2007 2007
================================
$ million
By business
Exploration and Production
UK 923 725 1,122
Rest of Europe 276 266 727
US 3,090 2,277 1,740
Rest of World 5,765 4,682 2,728
--------------------------------
10,054 7,950 6,317
--------------------------------
Refining and Marketing
UK 69 165 (96)
Rest of Europe 944 786 481
US 1,382 (1,215) 296
Rest of World 445 331 414
--------------------------------
2,840 67 1,095
--------------------------------
Other businesses and corporate
UK (119) (87) (26)
Rest of Europe - 4 21
US (132) (351) (132)
Rest of World 58 (9) 40
--------------------------------
(193) (443) (97)
--------------------------------
12,701 7,574 7,315
Consolidation adjustment (195) (267) 42
--------------------------------
Total for period 12,506 7,307 7,357
================================
By geographical area
UK 873 804 998
Rest of Europe 1,163 988 1,245
US 4,193 521 1,932
Rest of World 6,277 4,994 3,182
--------------------------------
Total for period 12,506 7,307 7,357
================================
Analysis of replacement cost profit before interest and tax
-----------------------------------------------------------
First Fourth First
quarter quarter quarter
2008 2007 2007
================================
$ million
By business
Exploration and Production
UK 923 725 1,122
Rest of Europe 276 266 727
US 3,085 2,240 1,731
Rest of World 5,788 4,639 2,726
--------------------------------
10,072 7,870 6,306
--------------------------------
Refining and Marketing
UK 107 134 (42)
Rest of Europe 629 278 298
US 154 (1,805) 129
Rest of World 359 97 419
--------------------------------
1,249 (1,296) 804
--------------------------------
Other businesses and corporate
UK (119) (87) (26)
Rest of Europe - 5 21
US (152) (336) (133)
Rest of World 58 (9) 40
--------------------------------
(213) (427) (98)
--------------------------------
11,108 6,147 7,012
Consolidation adjustment (195) (267) 42
--------------------------------
Total for period 10,913 5,880 7,054
================================
By geographical area
UK 911 773 1,052
Rest of Europe 849 480 1,061
US 2,940 (91) 1,756
Rest of World 6,213 4,718 3,185
--------------------------------
Total for period 10,913 5,880 7,054
================================
Analysis of non-operating items
-------------------------------
First Fourth First
quarter quarter quarter
2008 2007 2007
================================
$ million
By business
Exploration and Production
Impairment and gain (loss) on sale of businesses and fixed assets 21 149 605
Environmental and other provisions - - -
Restructuring, integration and rationalization costs (44) (186) -
Fair value gain (loss) on embedded derivatives (684) (449) 152
Other 331 (168) -
--------------------------------
(376) (654) 757
--------------------------------
Refining and Marketing
Impairment and gain (loss) on sale of businesses and fixed assets 814 (728) (179)
Environmental and other provisions - - -
Restructuring, integration and rationalization costs (205) (118) -
Fair value gain (loss) on embedded derivatives - - -
Other - (300) (50)
--------------------------------
609 (1,146) (229)
--------------------------------
Other businesses and corporate
Impairment and gain (loss) on sale of businesses and fixed assets 50 (23) 31
Environmental and other provisions - - -
Restructuring, integration and rationalization costs (58) (34) -
Fair value gain (loss) on embedded derivatives (6) (10) 3
Other (67) (20) -
--------------------------------
(81) (87) 34
--------------------------------
Total before taxation 152 (1,887) 562
Taxation credit (charge)(a) (56) 715 (192)
--------------------------------
Total after taxation for period 96 (1,172) 370
================================
(a)Tax on non-operating items is calculated using the quarter's effective tax
rate on replacement cost profit. Amounts for comparative periods have been
amended to reflect a redefinition of the effective tax rate on replacement cost
profit arising as a result of the exclusion of tax effects on inventory holding
gains and losses as described on page 2.
Realizations and marker prices
------------------------------
First Fourth First
quarter quarter quarter
2008 2007 2007
================================
Average realizations(a)
Liquids ($/bbl)(b)
UK 94.86 88.05 55.42
US 87.57 78.28 51.62
Rest of World 92.04 84.51 54.09
BP Average 90.92 82.72 53.43
================================
Natural gas ($/mcf)
UK 8.08 7.83 7.28
US 6.73 5.41 5.76
Rest of World 4.97 3.94 3.90
BP Average 5.88 4.83 4.86
================================
Average oil marker prices ($/bbl)
Brent 96.71 88.45 57.76
West Texas Intermediate 97.86 90.47 58.05
Alaska North Slope US West Coast 96.53 88.65 55.78
Mars 90.89 81.38 53.22
Urals (NWE- cif) 93.35 85.41 54.36
Russian domestic oil 46.86 48.98 27.33
================================
Average natural gas marker prices
Henry Hub gas price ($/mmbtu)(c) 8.03 6.97 6.77
UK Gas - National Balancing Point (p/therm) 52.94 46.70 22.33
================================
(a)Based on sales of consolidated subsidiaries only - this excludes
equity-accounted entities.
(b)Crude oil and natural gas liquids.
(c)Henry Hub First of Month Index.
Notes
-----
1. Basis of preparation
The interim financial information included in this report has been prepared in
accordance with IAS 34 'Interim Financial Reporting'.
The results for the interim periods are unaudited and in the opinion of
management include all adjustments necessary for a fair presentation of the
results for the periods presented. All such adjustments are of a normal
recurring nature. The interim financial statements and notes included in this
Report should be read in conjunction with the consolidated financial statements
and related notes for the year ended 31 December 2007 included in BP's Annual
Report and Accounts 2007.
BP prepares its consolidated financial statements included within its Annual
Report and Accounts on the basis of International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards Board (IASB), IFRS as
adopted by the European Union (EU) and in accordance with the provisions of the
Companies Act 1985. IFRS as adopted by the EU differs in certain respects from
IFRS as issued by the IASB, however, the differences have no impact on the
group's consolidated financial statements for the periods presented. The
financial information presented herein has been prepared in accordance with the
accounting policies expected to be used in preparing the Annual Report and
Accounts 2008, which do not differ significantly from those used in the Annual
Report and Accounts 2007.
2. Resegmentation and other changes to comparatives
(a) Resegmentation
On 11 October 2007, we announced our intention to simplify the organizational
structure of BP. From 1 January 2008, there are only two business segments -
Exploration and Production and Refining and Marketing. A separate business,
Alternative Energy, handles BP's low-carbon businesses and future growth options
outside oil and gas. This includes solar, wind, gas-fired power, hydrogen,
biofuels and coal conversion.
As a result, and with effect from 1 January 2008:
- The Gas, Power and Renewables segment ceased to report separately.
- The natural gas liquids (NGLs), liquefied natural gas and gas and power
marketing and trading businesses were transferred from the Gas, Power and
Renewables segment to the Exploration and Production segment.
- The Alternative Energy business was transferred from the Gas, Power and
Renewables segment to Other businesses and corporate.
- The Emerging Consumers Marketing Unit was transferred from Refining and
Marketing to Alternative Energy.
- The Biofuels business was transferred from Refining and Marketing to
Alternative Energy.
- The Shipping business was transferred from Refining and Marketing to Other
businesses and corporate.
As a result of the transfers identified above, Other businesses and corporate
has been redefined. It now consists of the Alternative Energy business,
Shipping, the group's aluminium asset, Treasury (which includes interest income
on the group's cash and cash equivalents) and corporate activities worldwide.
Financial information for 2003 to 2007 has been restated to reflect the
resegmentation and is available in BP Financial and Operating Information
2003-2007 and to download from www.bp.com/investors. Quarterly data is provided
for 2004-2007 and annual data for 2003.
Notes
-----
2. Resegmentation and other changes to comparatives (continued)
Resegmented As reported
Fourth First Fourth First
quarter quarter quarter quarter
2007 2007 2007 2007
===========================================
$ million
Total revenues
Exploration and Production 10,709 9,142 5,696 4,427
Refining and Marketing 69,732 52,297 69,861 52,443
Gas, Power and Renewables - - 5,379 4,922
Other businesses and corporate 781 597 286 244
-------------------------------------------
Total third party revenues 81,222 62,036 81,222 62,036
===========================================
Profit before interest and tax
Exploration and Production 7,950 6,317 7,643 6,054
Refining and Marketing 67 1,095 26 1,129
Gas, Power and Renewables - - 304 206
Other businesses and corporate (443) (97) (389) (115)
-------------------------------------------
7,574 7,315 7,584 7,274
Unrealized profit in inventory (267) 42 (277) 83
-------------------------------------------
Profit before interest and tax 7,307 7,357 7,307 7,357
===========================================
(b) Revised income statement presentation
We have implemented a minor change in the presentation of the group income
statement whereby the unwinding of the discount on provisions and on other
payables is now included within finance costs. Previously, this was included
within other finance income or expense. This line item has now been renamed net
finance income or expense relating to pensions and other post-retirement
benefits. This change does not affect profit before interest and taxation,
profit before taxation or profit for the period. The financial information for
comparative periods shows the revised presentation, as set out below.
Fourth First
quarter quarter
2007 2007
===================
As reported
$ million
Profit before interest and taxation 7,307 7,357
Finance costs 333 264
Other finance income (91) (93)
-------------------
Profit before taxation 7,065 7,186
===================
As amended
$ million
Profit before interest and taxation 7,307 7,357
Finance costs 408 331
Net finance income relating to pensions and other post-retirement benefits (166) (160)
-------------------
Profit before taxation 7,065 7,186
===================
Notes
-----
2. Resegmentation and other changes to comparatives (continued)
(c) Revised definition of net debt
Net debt has been redefined to include the fair value of associated
derivative financial instruments that are used to hedge foreign exchange and
interest rate risks relating to finance debt, for which hedge accounting is
claimed. The derivatives are reported on the balance sheet within the headings
'Derivative financial instruments'. Amounts for comparative periods are
presented on a consistent basis.
Fourth First
quarter quarter
2007 2007
===================
As reported
$ million
Net debt 27,483 21,772
Equity 94,652 85,749
-------------------
Ratio of net debt to net debt plus equity 23% 20%
===================
As amended
$ million
Net debt 26,817 21,444
Equity 94,652 85,749
-------------------
Ratio of net debt to net debt plus equity 22% 20%
===================
Notes
-----
3. Significant transaction in the period
In December 2007, BP signed a memorandum of understanding with Husky Energy Inc.
to form an integrated North American oil sands business. The transaction was
completed on 31 March 2008, with BP contributing its Toledo refinery to a US
jointly controlled entity to which Husky contributed $250 million cash and a
payable of $2,483 million. In Canada, Husky contributed its Sunrise field to a
second jointly controlled entity, with BP contributing $250 million in cash and
a payable of $2,290 million. The Toledo refinery assets and associated
liabilities were classified as a disposal group held for sale at 31 December
2007.
Both jointly controlled entities are owned 50:50 by BP and Husky and are
accounted for using the equity method.
As a result of the transaction, the items detailed below are included in the
financial statements for the first quarter of 2008.
First
quarter
2008
=========
$ million
Income statement
Gains on sale of businesses and fixed assets 809
---------
Profit before taxation 809
Taxation 346
---------
Profit for the period 463
=========
31 March
2008
=========
Balance sheet
Non-current assets - investments in jointly controlled entities 4,641
Current liabilities - trade and other payables 266
Non-current liabilities
Other payables 2,024
Deferred tax liabilities 654
---------
2,678
---------
Total liabilities 2,944
---------
Net assets 1,697
=========
First
quarter
2008
=========
Cash flow statement
Investment in jointly controlled entities (250)
=========
Capital expenditure and acquisitions
Exploration and Production 2,848
Refining and Marketing 1,793
---------
4,641
=========
Including acquisitions and asset exchanges: 1,793
=========
In addition, agreements are in place between BP and the Toledo jointly
controlled entity under which BP will supply feedstocks to the refinery and
purchase refined products. BP will also purchase refinery feedstocks from the
Sunrise jointly controlled entity once production commences, which is expected
in 2012.
Notes
-----
4. Total revenues
First Fourth First
quarter quarter quarter
2008 2007 2007
=================================
$ million
By business
Exploration and Production 24,065 21,258 16,347
Refining and Marketing 76,863 70,030 53,164
Other businesses and corporate 1,192 1,102 892
---------------------------------
102,120 92,390 70,403
---------------------------------
Less: sales between businesses
Exploration and Production 12,219 10,549 7,205
Refining and Marketing 269 298 867
Other businesses and corporate 409 321 295
---------------------------------
12,897 11,168 8,367
---------------------------------
Third party revenues
Exploration and Production 11,846 10,709 9,142
Refining and Marketing 76,594 69,732 52,297
Other businesses and corporate 783 781 597
---------------------------------
Total third party revenues 89,223 81,222 62,036
=================================
By geographical area
UK 36,897 33,075 24,100
Rest of Europe 23,657 22,938 16,656
US 31,731 28,800 23,150
Rest of World 26,857 22,292 17,344
---------------------------------
119,142 107,105 81,250
Less: sales between areas 29,919 25,883 19,214
---------------------------------
89,223 81,222 62,036
=================================
5. Production and similar taxes
First Fourth First
quarter quarter quarter
2008 2007 2007
===============================
$ million
UK 157 164 67
Overseas 1,452 1,354 680
-------------------------------
1,609 1,518 747
===============================
Notes
-----
6. Finance costs
First Fourth First
quarter quarter quarter
2008 2007 2007
==============================
$ million
Interest payable 382 393 347
Capitalized (45) (60) (83)
------------------------------
337 333 264
Unwinding of discount on provisions 69 75 67
------------------------------
406 408 331
==============================
7. Net finance income relating to pensions and other
post-retirement benefits
First Fourth First
quarter quarter quarter
2008 2007 2007
===============================
$ million
Interest on pension and other post-retirement
benefit plan liabilities 612 564 538
Expected return on pension and other
post-retirement benefit plan assets (772) (730) (698)
-------------------------------
(160) (166) (160)
===============================
Notes
-----
8. Analysis of changes in net debt
First Fourth First
quarter quarter quarter
2008 2007 2007
=================================
$ million
Opening balance
Finance debt 31,045 25,245 24,010
Less: Cash and cash equivalents 3,562 2,410 2,590
Less: FV asset (liability) of hedges related to finance debt 666 640 298
---------------------------------
Opening net debt 26,817 22,195 21,122
---------------------------------
Closing balance
Finance debt 29,871 31,045 23,728
Less: Cash and cash equivalents 4,820 3,562 1,956
Less: FV asset (liability) of hedges related to finance debt 1,234 666 328
---------------------------------
Closing net debt 23,817 26,817 21,444
---------------------------------
Decrease (increase) in net debt 3,000 (4,622) (322)
=================================
Movement in cash and cash equivalents
(excluding exchange adjustments) 1,224 1,098 (645)
Net cash outflow (inflow) from financing
(excluding share capital) 1,784 (5,660) 334
Other movements (7) (89) (11)
---------------------------------
Movement in net debt before exchange effects 3,001 (4,651) (322)
Exchange adjustments (1) 29 -
---------------------------------
Decrease (increase) in net debt 3,000 (4,622) (322)
=================================
Net debt has been redefined, for further information see Note 2. Amounts
for comparative periods are presented on a consistent basis.
Notes
-----
9. TNK-BP operational and financial information
First Fourth First
quarter quarter quarter
2008 2007 2007
===============================
Production (Net of royalties) (BP share)
Crude oil (mb/d) 818 829 832
Natural gas (mmcf/d) 512 437 566
Total hydrocarbons (mboe/d)(a) 906 904 930
===============================
$ million
Income statement (BP share)
Profit before interest and tax 1,209 1,278 356
Finance costs (76) (71) (61)
Taxation (331) (413) (103)
Minority interest (58) (42) (30)
-------------------------------
Net income 744 752 162
===============================
Cash flow
Dividends received 1,200 - -
===============================
Balance sheet 31 March 31 December
2008 2007
========================
Investments in jointly controlled entities 8,361 8,817
========================
(a)Natural gas is converted to oil equivalent at 5.8 billion cubic feet = 1
million barrels.
10. Second quarter results
BP's second-quarter results will be announced on 29 July 2008.
11. Statutory accounts
The financial information shown in this publication, which was approved by
the Board of Directors on 28 April 2008, is unaudited and does not constitute
statutory financial statements. The 2007 BP Annual Report and Accounts have been
filed with the Registrar of Companies; the report of the auditors on those
accounts was unqualified and did not contain a statement under section 237(2) or
section 237(3) of the Companies Act 1985.
Contacts
-------
London United States
Press Office Roddy Kennedy Ronnie Chappell
+44 (0)20 7496 4624 +1 281 366 5174
Investor Relations Fergus MacLeod Rachael MacLean
+44 (0)20 7496 4717 +1 281 366 6766
http://www.bp.com/investors
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BP p.l.c.
(Registrant)
Dated: 29 April, 2008 /s/ D. J. PEARL
..............................
D. J. PEARL
Deputy Company Secretary