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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
for the period ended 30 June 2009
Commission File Number 1-06262
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 of Form 20-F or Form 40-F.
Form 20-F þ                    Form 40-F o
     Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o
     Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o
     Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o                    No þ
     If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-
THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE PROSPECTUS INCLUDED IN THE REGISTRATION STATEMENT ON FORM F-3 (FILE NO. 333-157906) OF BP CAPITAL MARKETS p.l.c. AND BP p.l.c.; THE PROSPECTUS INCLUDED IN THE REGISTRATION STATEMENT ON FORM F-3 (FILE NO. 333-155798) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 33-21868) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-79399) OF BP p.l.c.,THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-67206) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-103924) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-102583) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-103923) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-119934) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-123482) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-123483) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-131583) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-131584) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO 333-132619) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-146868) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-146870) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-146873) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-149778) OF BP p.l.c., AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.
 
 

 


 

BP p.l.c. AND SUBSIDIARIES
FORM 6-K FOR THE PERIOD ENDED 30 JUNE 2009*
             
        Page
 
           
1.
  Management’s Discussion and Analysis of Financial Condition and Results of Operations for the period January-June 2009     3-9, 16-18  
 
           
2.
  Consolidated Financial Statements including Notes to Consolidated Financial Statements for the period January-June 2009     10-15, 20-29  
 
           
3.
  Environmental, Operating and Other Information     19  
 
           
  Signatures     30  
 
           
5.
  Exhibit 99.1: Computation of ratio of earnings to fixed charges     31  
 
           
 
  Exhibit 99.2: Capitalization and indebtedness     32  
 
*   In this Form 6-K, references to the first half 2009 and first half 2008 refer to the six-month periods ended 30 June 2009 and 30 June 2008 respectively. References to second quarter 2009 and second quarter 2008 refer to the three-month periods ended 30 June 2009 and 30 June 2008 respectively.

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Group results second quarter and half year 2009
                                 
Second quarter         First half  
2008     2009         2009     2008  
         
               
$ million
               
  108,747       54,777    
Sales and other operating revenues
    102,073       196,492  
  9,358       4,385    
Profit for the period(a)
    6,947       16,452  
         
  49.70       23.41    
— per ordinary share (cents)
    37.10       87.28  
  2.98       1.40    
— per ADS (dollars)
    2.23       5.23  
         
  The following discussion should be read in conjunction with the consolidated financial statements and related notes provided elsewhere in this Form 6-K and with the information, including the consolidated financial statements and related notes, for the year ended 31 December 2008 in BP’s Annual Report on Form 20-F for the year ended 31 December 2008.
 
  BP’s second quarter profit was $4,385 million, compared with $9,358 million a year ago, a decrease of 53%. For the half year, profit was $6,947 million compared with $16,452 million a year ago, down 58%. The second quarter profit included inventory holding gains, after their associated tax effect, of $1,245 million compared with gains of $2,612 million in the same quarter last year. For the half year, inventory holding gains, after their associated tax effect, were $1,420 million compared with $3,475 million in the first half of 2008. See footnote (c) on page 15 for further information.
 
  The second quarter result included a net credit of $196 million for non-operating items compared with a net charge of $1,428 million in the second quarter of 2008. For the half year, the respective amounts were a net charge of $29 million and a net charge of $1,332 million — see further details on page 16. Fair value accounting effects for the second quarter in Exploration and Production and Refining and Marketing had a net $6 million favourable impact compared to a net $347 million unfavourable impact in the second quarter of 2008. For the half year, the respective amounts were $37 million favourable and $447 million unfavourable — see further details on page 17. Information on fair value accounting effects is non-GAAP.
 
  Finance costs and net finance income or expense relating to pensions and other post-retirement benefits were $321 million for the second quarter, compared to $221 million for the same period last year. For the half year, the respective amounts were $689 million and $467 million. The net increase in cost was primarily due to a reduction in the expected return on pension plan assets.
 
  The effective tax rate on group profit for the second quarter and half year was 35% and 36% respectively, the same as a year ago.
 
  Net cash provided by operating activities for the quarter and half year was $6.8 billion and $12.3 billion compared with $6.7 billion and $17.6 billion respectively a year ago.
 
  Net debt at the end of the quarter was $27.1 billion. The ratio of net debt to net debt plus equity was 22% compared with 20% a year ago. Net debt information is non-GAAP and is defined on page 4. Gross debt at the end of the quarter was $36.2 billion compared to $30.2 billion a year ago. The ratio of gross debt to gross debt plus equity was 27%, compared with 22% a year ago.
 
  Total capital expenditure for the second quarter and half year was $4.8 billion and $9.4 billion respectively. Capital expenditure, excluding acquisitions and asset exchanges, is expected to be less than $20 billion for the year. Disposal proceeds were $0.7 billion for the quarter and $1.0 billion for the half year.
 
  The quarterly dividend, to be paid in September, is 14 cents per share ($0.84 per ADS), the same as a year ago. In sterling terms, the quarterly dividend is 8.503 pence per share, compared with 7.039 pence per share a year ago, an increase of 21%.
 
(a)   Profit attributable to BP shareholders.
The commentaries above and following should be read in conjunction with the cautionary statement on page 9.

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Per share amounts
                                 
Second quarter         First half  
2008     2009         2009     2008  
             
               
Per ordinary share (cents)(a)
               
  49.70       23.41    
Profit for the period
    37.10       87.28  
               
 
               
               
Per ADS (dollars)(a)
               
  2.98       1.40    
Profit for the period
    2.23       5.23  
             
 
(a)   See Note 4 on page 22 for details of the calculation of earnings per share.
Net debt ratio — net debt: net debt + equity
                                 
Second quarter         First half  
2008     2009         2009     2008  
             
               
$ million
               
  30,189       36,240    
Gross debt
    36,240       30,189  
  900       179    
Less: fair value asset (liability) of hedges related to finance debt
    179       900  
             
  29,289       36,061    
 
    36,061       29,289  
  3,593       8,959    
Cash and cash equivalents
    8,959       3,593  
             
  25,696       27,102    
Net debt
    27,102       25,696  
             
  105,965       96,949    
Equity
    96,949       105,965  
  20 %     22 %  
Net debt ratio
    22 %     20 %
             
Net debt and net debt ratio are non-GAAP measures. Net debt includes 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’. We believe that net debt and net debt ratio provide useful information to investors. Net debt enables investors to see the economic effect of gross debt, related hedges and cash and cash equivalents in total. The net debt ratio enables investors to see how significant net debt is relative to equity from shareholders.
Dividends
Dividends payable
BP announced a dividend of 14 cents per ordinary share to be paid in September. Holders of ordinary shares will receive 8.503 pence per share and holders of American Depositary Receipts $0.84 per ADS. The dividend is payable on 8 September 2009 to shareholders on the register, and to ADR holders of record, on 14 August 2009. 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 8 September 2009.
Dividends paid
                                 
Second quarter         First half  
2008     2009         2009     2008  
             
               
Dividends paid per ordinary share
               
  13.525       14.000    
cents
    28.000       27.050  
  6.830       9.584    
pence
    19.402       13.643  
  81.15       84.00    
Dividends paid per ADS (cents)
    168.00       162.30  
             

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Exploration and Production
                                 
Second quarter         First half  
2008     2009         2009     2008  
               
$ million
               
  24,507       12,848    
Sales and other operating revenues
    25,191       47,429  
  10,771       5,046    
Replacement cost profit before interest and tax(a)(b)
    9,366       20,843  
         
               
 
               
               
By region
               
  3,601       1,161    
US
    2,304       6,686  
  7,170       3,885    
Non-US
    7,062       14,157  
         
  10,771       5,046    
 
    9,366       20,843  
         
 
(a)   Equity-accounted entities are included after interest and tax.
 
(b)   See page 15 for information on replacement cost reporting for operating segments.
Sales and other operating revenues for the second quarter and half year were $13 billion and $25 billion respectively, compared with $25 billion and $47 billion for the corresponding periods in 2008. The decreases for both the quarter and half year were primarily due to lower realizations. Gas and NGLs marketing sales, which are included in sales and other operating revenues, also decreased compared with the equivalent periods of 2008.
The replacement cost profit before interest and tax for the second quarter and half year was $5,046 million and $9,366 million respectively, decreases of 53% and 55% compared to the same periods in 2008. The decreases in both periods were primarily due to lower realizations and lower earnings from equity-accounted entities, primarily TNK-BP due to lower prices and the effect of lagged tax reference prices. Additionally, the results for both periods reflected higher depreciation but benefited from the impact of higher reported volumes and lower costs, with unit production costs 12% lower than in the second quarter of 2008.
In addition, the second quarter and half year benefited from net non-operating gains of $507 million and $818 million respectively, primarily related to gains on the sale of operations and fair value gains on embedded derivatives. The corresponding periods in 2008 included net non-operating losses of $1,976 million and $2,352 million respectively. In the second quarter and half year, fair value accounting effects had favourable impacts of $135 million and $293 million respectively compared with unfavourable impacts of $373 million and $632 million in the same periods of last year.
Reported production for the quarter was 2,706mboe/d for subsidiaries and 1,299mboe/d for equity-accounted entities. In total, this was more than 4% higher than the second quarter of 2008. After adjusting for entitlement impacts in our production-sharing agreements (PSAs) and the effect of OPEC quota restrictions, the increase in total production was also 4%. This primarily reflects the continued ramp-up of production from major projects that started up in 2008 and the first half of 2009. As previously indicated we expect total production in 2009 to be higher than 2008. The actual growth rate will depend on a number of factors including the impact of oil price in PSAs and OPEC quota restrictions. We expect the quarterly phasing of underlying production during the year to reflect the normal seasonal effects associated with turnaround activity. Reported production for the half year was 2,711mboe/d for subsidiaries and 1,300mboe/d for equity-accounted entities. In total, this was more than 3% higher than the same period of 2008. After adjusting for the effect of entitlement changes in our PSAs and the effect of OPEC quota restrictions, total production was 4% higher. For further information on the production of subsidiaries and equity-accounted entities, see page 6.
During the quarter we announced that production had commenced from the Dorado (BP 75% and operator) and King South (BP 100%) projects in the Gulf of Mexico. Both projects are subsea tiebacks to the existing Marlin Platform.
On 27 May, Sonangol and BP announced the Oberon oil discovery in ultra-deepwater Block 31, offshore Angola (BP 26.67% and operator). This is the eighteenth discovery made by BP in Block 31.
In Egypt, the Egyptian Natural Gas Holding Company awarded BP two blocks in the 2008 International bid round. North Tineh Offshore is in a deepwater offshore area of the Nile Delta, will be operated by BP (100%) and was ratified in June. North Damietta Offshore is an adjacent block that BP will operate with Shell and Petronas, with one third working interest each. In Iraq’s first licensing round on 30 June, BP (operator) and China National Petroleum Corporation were awarded the rights to redevelop the Rumaila oilfield.
During the quarter, we sold our wholly-owned subsidiary, BP West Java Limited (BPWJ), to PT Pertamina (Persero). Pertamina purchased BPWJ for a consideration of $278 million.
Shortly after the end of the quarter, BP, as operator on behalf of the Tangguh project partners, announced that the first cargo of liquefied natural gas (LNG) had been lifted from the Tangguh LNG project (BP 37.16% and operator) in Papua Barat, Indonesia. We also announced, together with SOCAR (the State Oil Company of the Republic of Azerbaijan), that we have signed a memorandum of understanding to jointly explore and develop the Shafag and Asiman structures in the Azerbaijan sector of the Caspian Sea. In the Gulf of Mexico we announced the drilling of a successful appraisal well in a previously untested southern segment of the Mad Dog field (BP 60.5% and operator).

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Exploration and Production
                                 
Second quarter         First half  
2008     2009         2009     2008  
               
$ million
               
               
Non-operating items
               
  (8 )     118    
US
    189       (16 )
  (1,968 )     389    
Non-US
    629       (2,336 )
         
  (1,976 )     507    
 
    818       (2,352 )
         
               
Fair value accounting effects(a)
               
  (236 )     92    
US
    300       (378 )
  (137 )     43    
Non-US
    (7 )     (254 )
         
  (373 )     135    
 
    293       (632 )
         
               
Exploration expense
               
  47       235    
US
    279       119  
  71       112    
Non-US
    187       292  
         
  118       347    
 
    466       411  
         
               
Liquids production for subsidiaries (mb/d) (net of royalties)(b)
               
  534       661    
US
    652       544  
  226       201    
Europe
    206       230  
           
Russia
           
  500       534    
Rest of World
    534       525  
         
  1,260       1,396    
 
    1,392       1,299  
         
  1,148       1,130    
Liquids production for equity-accounted entities (mb/d) (net of royalties)(b)
    1,123       1,132  
         
  2,140       2,339    
Natural gas production for subsidiaries (mmcf/d) (net of royalties)
US
    2,337       2,144  
  744       645    
Europe
    741       870  
           
Russia
           
  4,310       4,611    
Rest of World
    4,566       4,315  
         
  7,194       7,595    
 
    7,644       7,329  
         
  1,054       985    
Natural gas production for equity-accounted entities (mmcf/d) (net of royalties)
    1,029       1,027  
         
               
Total hydrocarbon production for subsidiaries (mboe/d) (net of royalties)(c)
               
  903       1,064    
US
    1,055       914  
  354       312    
Europe
    334       381  
           
Russia
           
  1,243       1,330    
Rest of World
    1,322       1,267  
         
  2,500       2,706    
 
    2,711       2,562  
           
  1,330       1,299    
Total hydrocarbon production for equity-accounted entities (mboe/d) (net of royalties)(c)
    1,300       1,309  
         
               
Average realizations(d)
               
  109.95       52.33    
Total liquids ($/bbl)
    46.84       100.66  
  6.63       2.86    
Natural gas ($/mcf)
    3.25       6.25  
  75.39       35.02    
Total hydrocarbons ($/boe)
    33.22       68.85  
         
 
(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 page 17.
 
(b)   Crude oil and natural gas liquids.
 
(c)   Natural gas is converted to oil equivalent at 5.8 billion cubic feet = 1 million barrels.
 
(d)   Based on sales of consolidated subsidiaries only — this excludes equity-accounted entities.
 
(e)   Additional operating information is provided on pages 14 and 19.
Because of rounding, some totals may not agree exactly with the sum of their component parts.

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Refining and Marketing
                                 
Second quarter         First half  
2008     2009         2009     2008  
           
$ million
           
  97,892       49,333    
Sales and other operating revenues
    89,906       174,504  
  539       680    
Replacement cost profit before interest and tax(a)(b)
    1,770       1,788  
         
               
By region
               
  (401 )     (326 )  
US
    (18 )     (247 )
  940       1,006    
Non-US
    1,788       2,035  
         
  539       680    
 
    1,770       1,788  
         
               
Analysis of sales and other operating revenues
               
  19,684       9,447    
Sale of crude oil through spot and term contracts
    15,985       33,752  
  75,133       38,640    
Marketing, spot and term sales of refined products
    70,270       135,196  
  3,075       1,246    
Other sales
    3,651       5,556  
         
  97,892       49,333    
 
    89,906       174,504  
         
 
(a)   Equity-accounted entities are included after interest and tax.
 
(b)   See page 15 for information on replacement cost reporting for operating segments.
Sales and other operating revenues for the second quarter and half year were $49 billion and $90 billion respectively, compared with $98 billion and $175 billion for the corresponding periods in 2008. The decreases for both the quarter and half year primarily reflected decreases in marketing, spot and term sales of refined products, driven mainly by lower prices but also impacted by adverse foreign exchange effects. In addition, sales of crude oil through spot and term contracts decreased as a result of lower prices.
The replacement cost profit before interest and tax for the second quarter and half year was $680 million and $1,770 million respectively. The results in the equivalent periods of 2008 were $539 million and $1,788 million. The second quarter’s result included a net non-operating charge of $166 million, compared to a net charge of $99 million a year ago. For the half year, the net non-operating charge was $516 million, primarily relating to restructuring, compared to a net gain of $510 million a year ago. Fair value accounting effects had unfavourable impacts of $126 million in the second quarter and $235 million for the half year. A year ago, there were unfavourable impacts of $161 million and $60 million respectively.
After adjusting for non-operating items and fair value accounting effects, both the second quarter and half-year results were stronger than in 2008, despite a weaker refining environment. The turnaround of the segment continues to deliver significantly lower costs. Improved operational performance has also contributed to the year-on-year improvement, particularly for the half year. For the first half these two factors have more than offset the adverse impact of weaker refining margins. The first half also benefited from a much stronger supply and trading contribution, which returned to a more normal level in the second quarter after the particularly strong first-quarter performance. The weakening of the US dollar and the increase in crude prices also created a gain on in-transit barrels in the second quarter.
Within our Fuels Value Chains, BP’s actual refining margins in the first half decreased even more year on year than the global indicator margin, as our highly upgraded facilities were impacted by a very narrow light-heavy crude spread and the collapse of gasoil cracks due to the weakening economy. Marketing volumes of refined products were down 5% in the first half, compared to the same period in 2008.
The International Businesses continued to perform well with some recovery in petrochemicals margins, despite volumes that were depressed by more than 24% in the first half compared to a year ago, and sustained delivery in Lubricants.
Refining throughput for the quarter was 2,269mb/d compared to 2,239mb/d for the same period a year ago and for the half year it was 2,257mb/d compared to 2,202mb/d in 2008. Solomon availability, at 93.6%, was 1.3 percentage points above the first quarter of 2009 and 5.3 percentage points higher than the second quarter of 2008. The year-on-year increase was principally driven by improvements at the Texas City refinery.
On 26 June, BP announced the sale of the ground fuels marketing business in Greece, to Hellenic Petroleum for 359 million subject to various adjustments at closing. The deal is subject to regulatory approval and certain conditions, but is expected to complete before the end of 2009.
Indicator refining margins in the third quarter to date have been lower than in the second quarter and substantially below 2008 levels. Refining availability is expected to remain higher than in 2008, but otherwise the outlook continues to be challenging with high distillate inventories and continuing low demand.

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Refining and Marketing
                                 
Second quarter         First half  
2008     2009         2009     2008  
               
$ million
               
               
Non-operating items
               
  (16 )     (27 )  
US
    (161 )     758  
  (83 )     (139 )  
Non-US
    (355 )     (248 )
         
  (99 )     (166 )  
 
    (516 )     510  
         
               
Fair value accounting effects(a)
               
  53       (46 )  
US
    19       148  
  (214 )     (80 )  
Non-US
    (254 )     (208 )
         
  (161 )     (126 )  
 
    (235 )     (60 )
         
               
Refinery throughputs (mb/d)
               
  1,189       1,188    
US
    1,176       1,133  
  753       763    
Europe
    773       764  
  297       318    
Rest of World
    308       305  
         
  2,239       2,269    
Total throughput
    2,257       2,202  
         
  88.3       93.6    
Refining availability (%)(b)
    92.9       88.1  
         
               
Oil sales volumes (mb/d)
Refined products
               
  1,498       1,431    
US
    1,417       1,477  
  1,551       1,457    
Europe
    1,493       1,558  
  716       634    
Rest of World
    625       704  
         
  3,765       3,522    
Total marketing sales
    3,535       3,739  
  2,017       2,085    
Trading/supply sales
    2,127       2,032  
         
  5,782       5,607    
Total refined product sales
    5,662       5,771  
  1,848       1,994    
Crude oil
    1,919       1,854  
         
  7,630       7,601    
Total oil sales
    7,581       7,625  
         
               
Global Indicator Refining Margin ($/bbl)(c)
               
  7.46       3.10    
NWE
    3.88       6.12  
  8.59       6.00    
USGC
    6.34       7.40  
  6.53       8.54    
US Midwest
    7.79       3.82  
  9.94       7.14    
USWC
    8.54       7.92  
  9.41       (0.11 )  
Singapore
    1.19       7.09  
  8.19       4.98    
BP Average
    5.59       6.38  
         
               
Chemicals production (kte)
               
  1,022       745    
US
    1,458       2,058  
  821       867    
Europe
    1,655       1,790  
  1,598       1,035    
Rest of World
    2,154       3,129  
         
  3,441       2,647    
Total production
    5,267       6,977  
         
 
(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 page 17.
 
(b)   Refining availability represents Solomon Associates’ operational availability, which is defined as the percentage of the year that a unit is available for processing after subtracting the annualized time lost due to turnaround activity and all planned mechanical, process and regulatory maintenance downtime.
 
(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.

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Other businesses and corporate
                                 
Second quarter         First half  
2008     2009         2009     2008  
         
               
$ million
               
  1,200       603    
Sales and other operating revenues
    1,187       2,308  
  (314 )     (583 )  
Replacement cost profit (loss) before interest and tax(a)(b)
    (1,344 )     (527 )
         
               
 
               
               
By region
               
  (185 )     (129 )  
US
    (408 )     (337 )
  (129 )     (454 )  
Non-US
    (936 )     (190 )
         
  (314 )     (583 )  
 
    (1,344 )     (527 )
         
               
Results include Non-operating items
               
  (33 )     (33 )  
US
    (149 )     (82 )
  (90 )     (6 )  
Non-US
    (211 )     (122 )
         
  (123 )     (39 )  
 
    (360 )     (204 )
         
 
(a)   Includes replacement cost profit after interest and tax of equity-accounted entities.
(b)   See page 15 for information on replacement cost reporting for operating segments.
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 loss before interest and tax for the second quarter and half year was $583 million and $1,344 million respectively, compared with losses of $314 million and $527 million a year ago. The increased charge in both periods was primarily due to negative foreign exchange effects and a much weaker business environment for Shipping and Alternative Energy, partially offset by the continued reduction in corporate costs. The net non-operating charge for the second quarter and half year was $39 million and $360 million respectively, compared with net charges of $123 million and $204 million a year ago.
In Alternative Energy, our BP Solar business and RGE Energy AG of Germany announced a partnership to build one of the world’s largest solar projects in Germany. The planned solar system is expected to deliver around 43,000 megawatt hours per year of green electricity. Solar sales in the second quarter and half year were 27MW and 42MW respectively, compared to 39MW and 73MW in the same periods of last year, reflecting ongoing demand weakness in the market.
On 1 July, US Department of Energy Secretary Steven Chu announced that Hydrogen Energy LLC, a 50:50 joint venture between BP and Rio Tinto, has been selected for up to $308 million in project funding from the American Recovery and Reinvestment Act.
In wind generation, BP’s net capacity(c) at the end of the second quarter was 678MW, compared to 172MW a year ago.
 
(c)   Net wind capacity is the sum of the rated capacities of the assets/turbines that have entered into commercial operation, including BP’s share of equity-accounted entities.

Cautionary statement regarding forward-looking statements: The foregoing discussion contains forward-looking statements particularly those regarding capital expenditure, production, phasing of production, operatorship of new projects, expected timing of completion of sale of Greek fuels marketing business, refining availability, outlook for the Refining and Marketing segment and expected delivery of green electricity. 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 2008 and our 2008 Annual Report on Form 20-F filed with the US Securities and Exchange Commission.

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Group income statement
                                 
Second quarter         First half  
2008     2009         2009     2008  
         
               
$ million
               
  108,747       54,777    
Sales and other operating revenues (Note 2)
    102,073       196,492  
  1,752       357    
Earnings from jointly controlled entities — after interest and tax
    577       2,727  
  251       714    
Earnings from associates — after interest and tax
    999       476  
  153       191    
Interest and other income
    394       431  
  79       522    
Gains on sale of businesses and fixed assets
    603       1,004  
         
  110,982       56,561    
Total revenues and other income
    104,646       201,130  
               
 
               
  77,499       36,007    
Purchases
    66,784       139,888  
  7,408       5,997    
Production and manufacturing expenses
    12,104       14,207  
  2,299       673    
Production and similar taxes (Note 3)
    1,134       3,908  
  2,850       3,092    
Depreciation, depletion and amortization
    5,915       5,632  
  23       216    
Impairment and losses on sale of businesses and fixed assets
    353       63  
  118       347    
Exploration expense
    466       411  
  3,977       3,290    
Distribution and administration expenses
    6,639       7,873  
  2,081       (154 )  
Fair value (gain) loss on embedded derivatives
    (340 )     2,771  
         
  14,727       7,093    
Profit before interest and taxation
    11,591       26,377  
  381       274    
Finance costs
    592       787  
  (160 )     47    
Net finance expense (income) relating to pensions and other post-retirement benefits
    97       (320 )
         
  14,506       6,772    
Profit before taxation
    10,902       25,910  
  5,036       2,343    
Taxation
    3,876       9,228  
         
  9,470       4,429    
Profit for the period
    7,026       16,682  
         
               
Attributable to
               
  9,358       4,385    
BP shareholders
    6,947       16,452  
  112       44    
Minority interest
    79       230  
         
  9,470       4,429    
 
    7,026       16,682  
         
               
Earnings per share — cents (Note 4)
               
               
Profit for the period attributable to BP shareholders
               
  49.70       23.41    
Basic
    37.10       87.28  
  49.23       23.16    
Diluted
    36.72       86.48  

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Group statement of comprehensive income
                                 
Second quarter         First half  
2008     2009         2009     2008  
         
               
$ million
               
  9,470       4,429    
Profit for the period
    7,026       16,682  
         
  255       2,393    
Currency translation differences
    1,382       1,033  
  322       207    
Available-for-sale investments marked to market
    281       131  
           
Available-for-sale investments — recycled to the income statement
    2       (5 )
  49       648    
Cash flow hedges marked to market
    437       123  
  1       178    
Cash flow hedges — recycled to the income statement
    417       (1 )
  (18 )     42    
Cash flow hedges — recycled to the balance sheet
    113       (41 )
  (4 )     439    
Taxation
    357       93  
         
  605       3,907    
Other comprehensive income
    2,989       1,333  
         
  10,075       8,336    
Total comprehensive income
    10,015       18,015  
         
               
Attributable to
               
  9,964       8,260    
BP shareholders
    9,928       17,782  
  111       76    
Minority interest
    87       233  
         
  10,075       8,336    
 
    10,015       18,015  
         
Group statement of changes in equity
                         
    BP              
    shareholders’     Minority     Total  
    equity     interest     equity  
     
$ million
                       
At 31 December 2008
    91,303       806       92,109  
     
 
                       
Total comprehensive income
    9,928       87       10,015  
Dividends
    (5,239 )     (185 )     (5,424 )
Share-based payments (net of tax)
    249             249  
     
 
                       
At 30 June 2009
    96,241       708       96,949  
     
                         
    BP              
    shareholders’     Minority     Total  
    equity     interest     equity  
     
$ million
                       
At 31 December 2007
    93,690       962       94,652  
     
 
                       
Total comprehensive income
    17,782       233       18,015  
Dividends
    (5,099 )     (122 )     (5,221 )
Repurchase of ordinary share capital
    (1,796 )           (1,796 )
Share-based payments (net of tax)
    315             315  
     
 
                       
At 30 June 2008
    104,892       1,073       105,965  
     

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Group balance sheet
                 
    30 June     31 December  
    2009     2008  
     
$ million
               
Non-current assets
               
Property, plant and equipment
    105,779       103,200  
Goodwill
    10,304       9,878  
Intangible assets
    10,951       10,260  
Investments in jointly controlled entities
    15,266       23,826  
Investments in associates
    12,929       4,000  
Other investments
    1,138       855  
     
Fixed assets
    156,367       152,019  
Loans
    1,212       995  
Other receivables
    990       710  
Derivative financial instruments
    4,423       5,054  
Prepayments
    1,303       1,338  
Defined benefit pension plan surpluses
    1,990       1,738  
     
 
    166,285       161,854  
     
Current assets
               
Loans
    185       168  
Inventories
    18,650       16,821  
Trade and other receivables
    29,246       29,261  
Derivative financial instruments
    6,760       8,510  
Prepayments
    2,712       3,050  
Current tax receivable
    562       377  
Cash and cash equivalents
    8,959       8,197  
     
 
    67,074       66,384  
     
Total assets
    233,359       228,238  
     
Current liabilities
               
Trade and other payables
    34,764       33,644  
Derivative financial instruments
    6,181       8,977  
Accruals
    5,815       6,743  
Finance debt
    12,018       15,740  
Current tax payable
    2,826       3,144  
Provisions
    1,403       1,545  
     
 
    63,007       69,793  
     
Non-current liabilities
               
Other payables
    3,109       3,080  
Derivative financial instruments
    5,039       6,271  
Accruals
    713       784  
Finance debt
    24,222       17,464  
Deferred tax liabilities
    16,800       16,198  
Provisions
    12,999       12,108  
Defined benefit pension plan and other post-retirement benefit plan deficits
    10,521       10,431  
     
 
    73,403       66,336  
     
Total liabilities
    136,410       136,129  
     
Net assets
    96,949       92,109  
     
Equity
               
BP shareholders’ equity
    96,241       91,303  
Minority interest
    708       806  
     
 
    96,949       92,109  
     

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Condensed group cash flow statement
                                 
Second quarter         First half  
2008     2009         2009     2008  
         
               
$ million
               
               
Operating activities
               
  14,506       6,772    
Profit before taxation
    10,902       25,910  
               
Adjustments to reconcile profit before taxation to net cash provided by operating activities
               
  2,894       3,315    
Depreciation, depletion and amortization and exploration expenditure written off
    6,164       5,860  
  (56 )     (306 )  
Impairment and (gain) loss on sale of businesses and fixed assets
    (250 )     (941 )
  (1,491 )     (250 )  
Earnings from equity-accounted entities, less dividends received
    (502 )     (1,304 )
  (183 )     38    
Net charge for interest and other finance expense, less net interest paid
    127       (301 )
  173       101    
Share-based payments
    187       238  
  46       (46 )  
Net operating charge for pensions and other post-retirement benefits, less contributions and benefit payments for unfunded plans
    (20 )     163  
  (40 )     (49 )  
Net charge for provisions, less payments
    232       (205 )
  (5,710 )     (1,093 )  
Movements in inventories and other current and non-current assets and liabilities(a)
    (1,061 )     (6,427 )
  (3,421 )     (1,725 )  
Income taxes paid
    (3,450 )     (5,381 )
         
  6,718       6,757    
Net cash provided by operating activities
    12,329       17,612  
         
               
Investing activities
               
  (4,713 )     (5,211 )  
Capital expenditure
    (10,028 )     (9,148 )
  (209 )     (8 )  
Acquisitions, net of cash acquired
    (8 )     (209 )
  (247 )     (110 )  
Investment in jointly controlled entities
    (213 )     (613 )
  (3 )     (40 )  
Investment in associates
    (87 )     (7 )
  59       360    
Proceeds from disposal of fixed assets
    671       335  
        337    
Proceeds from disposal of businesses, net of cash disposed
    337        
  212       96    
Proceeds from loan repayments
    213       334  
           
Other
    47        
         
  (4,901 )     (4,576 )  
Net cash (used in) provided by investing activities
    (9,068 )     (9,308 )
         
               
Financing activities
               
  (928 )     27    
Net issue (repurchase) of shares
    62       (1,817 )
  655       4,441    
Proceeds from long-term financing
    9,060       2,832  
  (1,654 )     (1,597 )  
Repayments of long-term financing
    (4,177 )     (2,191 )
  1,516       (1,860 )  
Net increase (decrease) in short-term debt
    (2,042 )     (1,908 )
  (2,545 )     (2,620 )  
Dividends paid — BP shareholders
    (5,239 )     (5,099 )
  (86 )     (74 )  
— Minority interest
    (185 )     (122 )
         
  (3,042 )     (1,683 )  
Net cash (used in) provided by financing activities
    (2,521 )     (8,305 )
         
  (2 )     101    
Currency translation differences relating to cash and cash equivalents
    22       32  
         
  (1,227 )     599    
Increase (decrease) in cash and cash equivalent
    762       31  
  4,820       8,360    
Cash and cash equivalents at beginning of period
    8,197       3,562  
         
  3,593       8,959    
Cash and cash equivalents at end of period
    8,959       3,593  
         
               
 
               
         
(a) Includes                    
  (3,952 )     (1,874 )  
Inventory holding (gains) losses
    (2,128 )     (5,278 )
  2,081       (154 )  
Fair value (gain) loss on embedded derivatives
    (340 )     2,771  
         
Inventory holding gains and losses and fair value gains and losses on embedded derivatives are also included within profit before taxation

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Capital expenditure and acquisitions
                                 
Second quarter         First half  
2008     2009         2009     2008  
         
               
$ million
               
               
By business
               
               
Exploration and Production
               
  1,801       1,422    
US
    3,092       3,016  
  2,148       2,144    
Non-US(a)
    4,179       6,935  
         
  3,949       3,566    
 
    7,271       9,951  
         
               
Refining and Marketing
               
  662       562    
US(a)
    1,129       2,959  
  582       276    
Non-US
    502       953  
         
  1,244       838    
 
    1,631       3,912  
         
               
Other businesses and corporate
               
  463       364    
US(b)
    420       730  
  146       50    
Non-US
    91       254  
         
  609       414    
 
    511       984  
         
  5,802       4,818    
 
    9,413       14,847  
         
               
By geographical area
               
  2,926       2,348    
US(a)(b)
    4,641       6,705  
  2,876       2,470    
Non-US(a)
    4,772       8,142  
         
  5,802       4,818    
 
    9,413       14,847  
         
               
Included above:
               
  324          
Acquisitions and asset exchanges(a)
          2,288  
         
 
(a)   First half 2008 included capital expenditure of $2,848 million in Exploration and Production and an asset exchange of $1,904 million in Refining and Marketing relating to the formation of an integrated North American oil sands business.
 
(b)   Second quarter 2009 includes $297 million of capital expenditure on wind turbines for post-2009 wind projects.
Exchange rates
                                 
Second quarter         First half  
2008     2009         2009     2008  
         
  1.97       1.55    
US dollar/sterling average rate for the period
    1.49       1.97  
  1.99       1.65    
US dollar/sterling period-end rate
    1.65       1.99  
  1.56       1.36    
US dollar/euro average rate for the period
    1.33       1.53  
  1.58       1.41    
US dollar/euro period-end rate
    1.41       1.58  
         

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Analysis of replacement cost profit before interest and tax and
reconciliation to profit before taxation(a)
                                 
Second quarter         First half  
2008     2009         2009     2008  
         
               
$ million
               
               
By business
               
               
Exploration and Production
               
  3,601       1,161    
US
    2,304       6,686  
  7,170       3,885    
Non-US
    7,062       14,157  
         
  10,771       5,046    
 
    9,366       20,843  
         
               
Refining and Marketing
               
  (401 )     (326 )  
US
    (18 )     (247 )
  940       1,006    
Non-US
    1,788       2,035  
         
  539       680    
 
    1,770       1,788  
         
               
Other businesses and corporate
               
  (185 )     (129 )  
US
    (408 )     (337 )
  (129 )     (454 )  
Non-US
    (936 )     (190 )
         
  (314 )     (583 )  
 
    (1,344 )     (527 )
         
  10,996       5,143    
 
    9,792       22,104  
  (221 )     76    
Consolidation adjustment
    (329 )     (1,005 )
         
  10,775       5,219    
Replacement cost profit before interest and tax(b)
    9,463       21,099  
               
Inventory holding gains (losses)(c)
               
  48       16    
Exploration and Production
    (18 )     30  
  3,891       1,856    
Refining and Marketing
    2,183       5,215  
  13       2    
Other businesses and corporate
    (37 )     33  
         
  14,727       7,093    
Profit before interest and tax
    11,591       26,377  
  381       274    
Finance costs
    592       787  
  (160 )     47    
Net finance expense (income) relating to pensions and other post-retirement benefits
    97       (320 )
         
  14,506       6,772    
Profit before taxation
    10,902       25,910  
         
               
Replacement cost profit before interest and tax
By geographical area
               
  3,267       730    
US
    1,584       5,888  
  7,508       4,489    
Non-US
    7,879       15,211  
         
  10,775       5,219    
 
    9,463       21,099  
         
 
(a)   IFRS requires that the measure of profit or loss disclosed for each operating segment is the measure that is provided regularly to the chief operating decision maker for the purposes of performance assessment and resource allocation. For BP, this measure of profit or loss is replacement cost profit before interest and tax. In addition, a reconciliation is required between the total of the operating segments’ measures of profit or loss and the group profit or loss before taxation.
 
(b)   Replacement cost profit reflects the replacement cost of supplies. The replacement cost profit for the period is arrived at by excluding from profit inventory holding gains and losses and their associated tax effect. Replacement cost profit for the group is not a recognized GAAP measure.
 
(c)   Inventory holding gains and losses represent the difference between the cost of sales calculated using the average cost to BP of supplies incurred during the period and the cost of sales calculated on the first-in first-out (FIFO) method including any changes in provisions where the net realizable value of the inventory is lower than its cost. Under the FIFO method, which we use for IFRS reporting, the cost of inventory charged to the income statement is based on the historic cost of acquisition or manufacture rather than the current replacement cost. In volatile energy markets, this can have a significant distorting effect on reported income. The amounts disclosed represent the difference between the charge to the income statement on a FIFO basis (and any related movements in net realizable value provisions) and the charge that would arise using average cost of supplies incurred during the period. For this purpose, average cost of supplies incurred during the period is calculated by dividing the total cost of inventory purchased in the period by the number of barrels acquired. The amounts disclosed are not separately reflected in the financial statements as a gain or loss. No adjustment is made in respect of the cost of inventories held as part of a trading position and certain other temporary inventory positions.
 
    Management believes this information is useful to illustrate to investors the fact that crude oil and product prices can vary significantly from period to period and that the impact on our reported result under IFRS can be significant. Inventory holding gains and losses vary from period to period due principally to changes in oil prices as well as changes to underlying inventory levels. In order for investors to understand the operating performance of the group excluding the impact of oil price changes on the replacement of inventories, and to make comparisons of operating performance between reporting periods, BP’s management believes it is helpful to disclose this information.

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Non-operating items(a)
                                 
Second quarter         First half  
2008     2009         2009     2008  
         
               
$ million
               
               
Exploration and Production
               
  111       359    
Impairment and gain (loss) on sale of businesses and fixed assets
    432       132  
  (5 )        
Environmental and other provisions
          (5 )
        (6 )  
Restructuring, integration and rationalization costs
    (7 )     (44 )
  (2,082 )     154    
Fair value gain (loss) on embedded derivatives
    397       (2,766 )
           
Other
    (4 )     331  
         
  (1,976 )     507    
 
    818       (2,352 )
         
               
Refining and Marketing
               
  (13 )     (52 )  
Impairment and gain (loss) on sale of businesses and fixed assets
    (73 )     801  
           
Environmental and other provisions
           
  (86 )     (114 )  
Restructuring, integration and rationalization costs
    (377 )     (291 )
           
Fair value gain (loss) on embedded derivatives
    (57 )      
           
Other
    (9 )      
         
  (99 )     (166 )  
 
    (516 )     510  
         
               
Other businesses and corporate
               
  (42 )     (1 )  
Impairment and gain (loss) on sale of businesses and fixed assets
    (109 )     8  
           
Environmental and other provisions
    (75 )      
  (75 )     (37 )  
Restructuring, integration and rationalization costs
    (108 )     (133 )
  1          
Fair value gain (loss) on embedded derivatives
          (5 )
  (7 )     (1 )  
Other
    (68 )     (74 )
         
  (123 )     (39 )  
 
    (360 )     (204 )
         
               
 
               
  (2,198 )     302    
Total before taxation
    (58 )     (2,046 )
  770       (106 )  
Taxation credit (charge)(b)
    29       714  
         
  (1,428 )     196    
Total after taxation for period
    (29 )     (1,332 )
         
 
(a)   An analysis of non-operating items by region is shown on pages 6, 8 and 9.
 
(b)   Tax is calculated using the quarter’s effective tax rate on group profit.
Non-operating items are charges and credits arising in consolidated entities that BP discloses separately because it considers such disclosures to be meaningful and relevant to investors. These disclosures are provided in order to enable investors better to understand and evaluate the group’s financial performance.

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Non-GAAP information on fair value accounting effects
                                 
Second quarter         First half  
2008     2009         2009     2008  
         
               
$ million
               
               
Favourable (unfavourable) impact relative to management’s measure of performance
               
  (373 )     135    
Exploration and Production
    293       (632 )
  (161 )     (126 )  
Refining and Marketing
    (235 )     (60 )
         
  (534 )     9    
 
    58       (692 )
  187       (3 )  
Taxation credit (charge)(a)
    (21 )     245  
         
  (347 )     6    
 
    37       (447 )
         
 
(a)   Tax is calculated using the quarter’s effective tax rate on group profit.
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 that, 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 for consolidated entities 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 above. A reconciliation to GAAP information is set out below.
Reconciliation of non-GAAP information
                                 
Second quarter         First half  
2008     2009         2009     2008  
         
               
$ million
               
               
Exploration and Production
               
  11,144       4,911    
Replacement cost profit before interest and tax adjusted for fair value accounting effects
    9,073       21,475  
  (373 )     135    
Impact of fair value accounting effects
    293       (632 )
         
  10,771       5,046    
Replacement cost profit before interest and tax
    9,366       20,843  
         
               
Refining and Marketing
               
  700       806    
Replacement cost profit before interest and tax adjusted for fair value accounting effects
    2,005       1,848  
  (161 )     (126 )  
Impact of fair value accounting effects
    (235 )     (60 )
         
  539       680    
Replacement cost profit before interest and tax
    1,770       1,788  
         

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Analysis of changes in net debt
                                 
Second quarter         First half  
2008     2009         2009     2008  
         
               
$ million
               
               
Opening balance
               
  29,871       34,698    
Finance debt
    33,204       31,045  
  4,820       8,360    
Less: Cash and cash equivalents
    8,197       3,562  
  1,234       (323 )  
Less: FV asset (liability) of hedges related to finance debt
    (34 )     666  
         
  23,817       26,661    
Opening net debt
    25,041       26,817  
         
 
               
Closing balance
               
  30,189       36,240    
Finance debt
    36,240       30,189  
  3,593       8,959    
Less: Cash and cash equivalents
    8,959       3,593  
  900       179    
Less: FV asset (liability) of hedges related to finance debt
    179       900  
         
  25,696       27,102    
Closing net debt
    27,102       25,696  
         
  (1,879 )     (441 )  
Decrease (increase) in net debt
    (2,061 )     1,121  
         
 
  (1,225 )     498    
Movement in cash and cash equivalents (excluding exchange adjustments)
    740       (1 )
  (517 )     (984 )  
Net cash outflow (inflow) from financing (excluding share capital)
    (2,841 )     1,267  
  (114 )     15    
Other movements
    22       (121 )
         
  (1,856 )     (471 )  
Movement in net debt before exchange effects
    (2,079 )     1,145  
  (23 )     30    
Exchange adjustments
    18       (24 )
         
  (1,879 )     (441 )  
Decrease (increase) in net debt
    (2,061 )     1,121  
         

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Table of Contents

Realizations and marker prices
                                 
Second quarter         First half  
2008     2009         2009     2008  
         
               
Average realizations(a)
               
               
Liquids ($/bbl)(b)
               
  101.88       47.45    
US
    43.54       95.23  
  127.83       60.69    
Europe
    54.00       111.44  
  111.23       55.22    
Rest of World
    48.10       101.58  
  109.95       52.33    
BP Average
    46.84       100.66  
         
               
Natural gas ($/mcf)
               
  8.76       2.47    
US
    2.92       7.74  
  8.37       4.86    
Europe
    5.25       8.16  
  5.26       2.77    
Rest of World
    3.08       5.11  
  6.63       2.86    
BP Average
    3.25       6.25  
         
               
Total hydrocarbons ($/boe)
               
  82.09       34.90    
US
    33.38       74.88  
  99.10       49.11    
Europe
    45.00       86.12  
  63.67       31.81    
Rest of World
    30.10       59.30  
  75.39       35.02    
BP Average
    33.22       68.85  
         
               
Average oil marker prices ($/bbl)
               
  121.18       59.13    
Brent
    51.68       109.05  
  123.81       59.71    
West Texas Intermediate
    51.59       111.14  
  123.61       59.10    
Alaska North Slope
    52.36       110.40  
  116.82       57.51    
Mars
    50.78       104.17  
  117.47       58.46    
Urals (NWE — cif)
    50.94       105.50  
  63.15       32.63    
Russian domestic oil
    26.46       55.01  
         
               
Average natural gas marker prices
               
  10.94       3.51    
Henry Hub gas price ($/mmbtu)(c)
    4.21       9.49  
  60.72       27.51    
UK Gas — National Balancing point (p/therm)
    37.31       56.86  
         
 
(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.

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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. This report should be read in conjunction with the consolidated financial statements and related notes for the year ended 31 December 2008 included in BP’s Annual Report on Form 20-F 2008 filed with the Securities and Exchange Commission.
 
    BP prepares its consolidated financial statements included within its Annual Report on Form 20-F on the basis of International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and IFRS as adopted by the European Union (EU). 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 on Form 20-F for 2009, which do not differ significantly from those used in BP’s Annual Report on Form 20-F 2008.
 
    BP has adopted a new accounting standard, IFRS 8 ‘Operating Segments’, with effect from 1 January 2009. The standard defines operating segments as components of an entity about which separate financial information is available and is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. It also sets out the required disclosures for operating segments. On adoption, there was no change to BP’s segments that are separately reported but the segmental financial information is now based on measures as used by the chief operating decision maker. In particular, the segment measure of profit is replacement cost profit before interest and tax — see page 15 for further information. There was no effect on the group’s reported income or net assets.
 
    In addition, BP has adopted amendments to IAS 1 ‘Presentation of Financial Statements’, also with effect from 1 January 2009. This requires separate presentation of owner and non-owner changes in equity by introducing the statement of comprehensive income — see page 11. The statement of recognized income and expense is no longer presented. Certain minor changes in the presentation of the statement of changes in equity were also made to comply with the revised standard — see page 11. There was no effect on the group’s reported profit for the period or net assets.

20


Table of Contents

Notes
2.   Sales and other operating revenues
                                 
Second quarter         First half  
2008     2009         2009     2008  
         
           
$ million
           
               
By business
               
  24,507       12,848    
Exploration and Production
    25,191       47,429  
  97,892       49,333    
Refining and Marketing
    89,906       174,504  
  1,200       603    
Other businesses and corporate
    1,187       2,308  
         
  123,599       62,784    
 
    116,284       224,241  
         
               
 
               
               
Less: sales between businesses
               
  13,485       7,589    
Exploration and Production
    13,389       25,704  
  960       225    
Refining and Marketing
    336       1,229  
  407       193    
Other businesses and corporate
    486       816  
         
  14,852       8,007    
 
    14,211       27,749  
         
               
 
               
               
Third party sales and other operating revenues
               
  11,022       5,259    
Exploration and Production
    11,802       21,725  
  96,932       49,108    
Refining and Marketing
    89,570       173,275  
  793       410    
Other businesses and corporate
    701       1,492  
         
  108,747       54,777    
Total third party sales and other operating revenues
    102,073       196,492  
         
               
 
               
               
By geographical area
               
  39,035       20,677    
US
    38,257       70,728  
  81,917       39,371    
Non-US
    72,957       146,436  
         
  120,952       60,048    
 
    111,214       217,164  
  12,205       5,271    
Less: sales between areas
    9,141       20,672  
         
  108,747       54,777    
 
    102,073       196,492  
         
3.   Production and similar taxes
                                 
Second quarter         First half  
2008     2009         2009     2008  
         
               
$ million
               
  1,079       133    
US
    212       1,623  
  1,220       540    
Non-US
    922       2,285  
         
  2,299       673    
 
    1,134       3,908  
         

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Notes
4.   Earnings per share, shares in issue and shares repurchased
 
    Basic earnings per ordinary share (EpS) amounts are calculated by dividing the profit for the period attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. The calculation of EpS is performed separately for each discrete quarterly period, and for the year-to-date period. As a result, the sum of the discrete quarterly EpS amounts in any particular year-to-date period may not be equal to the EpS amount for the year-to-date period.
 
    Prior to 2009, EpS amounts for the discrete quarterly periods were determined as the difference between the relevant year-to-date period amounts. The change in method of determination of the discrete quarterly EpS amounts does not have a significant effect and the comparative EpS amounts for 2008 have not been restated.
 
    For the diluted EpS calculation the weighted average number of shares outstanding during the period is adjusted for number of shares that are potentially issuable in connection with employee share-based payment plans using the treasury stock method.
                                 
Second quarter         First half  
2008     2009         2009     2008  
         
               
$ million
               
               
Results for the period
               
  9,358       4,385    
Profit for the period attributable to BP shareholders
    6,947       16,452  
  1       1    
Less: preference dividend
    1       1  
         
  9,357       4,384    
Profit attributable to BP ordinary shareholders
    6,946       16,451  
         
               
 
               
  18,823,515       18,726,093    
Basic weighted average number of shares outstanding (thousand)(a)
    18,723,164       18,849,504  
  3,137,253       3,121,016    
ADS equivalent (thousand)(a)
    3,120,527       3,141,584  
         
               
 
               
  19,015,010       18,929,930    
Weighted average number of shares outstanding used to calculate diluted earnings per share (thousand)(a)
    18,917,380       19,022,000  
  3,169,168       3,154,988    
ADS equivalent (thousand)(a)
    3,152,897       3,170,333  
         
               
 
               
  18,790,443       18,728,163    
Shares in issue at period-end (thousand)(a)
    18,728,163       18,790,443  
  3,131,741       3,121,361    
ADS equivalent (thousand)(a)
    3,121,361       3,131,741  
  85,900          
Shares repurchased in the period (thousand)
          176,896  
 
(a)   Excludes treasury shares and the shares held by the Employee Share Ownership Plans and includes certain shares that will be issuable in the future under employee share plans.

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Notes
5.   TNK-BP operational and financial information
                                 
Second quarter         First half  
2008     2009         2009     2008  
         
               
Production (Net of royalties) (BP share)
               
  825       837    
Crude oil (mb/d)
    830       821  
  546       555    
Natural gas (mmcf/d)
    599       529  
  919       933    
Total hydrocarbons (mboe/d)(a)
    933       913  
         
               
$ million
               
               
Income statement (BP share)
               
  2,026       873    
Profit before interest and tax
    1,292       3,235  
  (56 )     (54 )  
Finance costs
    (122 )     (132 )
  (524 )     (242 )  
Taxation
    (427 )     (855 )
  (95 )     (31 )  
Minority interest
    (63 )     (153 )
         
  1,351       546    
Net income
    680       2,095  
         
               
Cash flow
               
        468    
Dividends received
    468       1,200  
         
                 
    30 June     31 December  
Balance sheet   2009     2008  
Investments in jointly controlled entities
          8,939  
Investments in associates
    9,104        
 
           
 
(a)   Natural gas is converted to oil equivalent at 5.8 billion cubic feet = 1 million barrels.
6.   Inventory valuation
 
    Due to falling oil prices a provision of $1,412 million was held at 31 December 2008 to write inventories down to their net realizable value. The net movement in the provision during the second quarter of 2009 was an increase of $92 million (first quarter of 2009 was a decrease of $1,163 million).
 
7.   Statutory accounts
 
    The financial information shown in this publication, which was approved by the Board of Directors on 27 July 2009, is unaudited and does not constitute statutory financial statements.
 
8.   Condensed consolidating information
 
    BP p.l.c. fully and unconditionally guarantees the payment obligations of its 100% owned subsidiary BP Exploration (Alaska) Inc. under the BP Prudhoe Bay Royalty Trust. The following financial information for BP p.l.c., and BP Exploration (Alaska) Inc. and all other subsidiaries on a condensed consolidating basis is intended to provide investors with meaningful and comparable financial information about BP p.l.c. and its subsidiary issuers of registered securities and is provided pursuant to Rule 3-10 of Regulation S-X in lieu of the separate financial statements of each subsidiary issuer of public debt securities. Investments include the investments in subsidiaries recorded under the equity method for the purposes of the condensed consolidating financial information. Equity income of subsidiaries is the group’s share of profit related to such investments. The eliminations and reclassifications column includes the necessary amounts to eliminate the intercompany balances and transactions between BP p.l.c., BP Exploration (Alaska) Inc. and other subsidiaries. BP p.l.c. also fully and unconditionally guarantees securities issued by BP Capital Markets p.l.c. and BP Capital Markets America Inc. These companies are 100%-owned finance subsidiaries of BP p.l.c.

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Notes
8.   Condensed consolidating information (continued)
                                         
    Issuer     Guarantor                      
    BP                     Eliminations        
    Exploration             Other     and        
Income statement   (Alaska) Inc.     BP p.l.c.     subsidiaries     reclassifications     BP group  
    $ million  
First half 2009
                                       
Sales and other operating revenues
    1,893             102,073       (1,893 )     102,073  
Earnings from jointly controlled entities — after interest and tax
                577             577  
Earnings from associates — after interest and tax
                999             999  
Equity-accounted income of subsidiaries — after interest and tax
    489       7,671             (8,160 )      
Interest and other revenues
    16       48       421       (91 )     394  
Gains on sale of businesses and fixed assets
          9       603       (9 )     603  
     
Total revenues and other income
    2,398       7,728       104,673       (10,153 )     104,646  
 
                                       
Purchases
    230             68,447       (1,893 )     66,784  
Production and manufacturing expenses
    486             11,618             12,104  
Production and similar taxes
    203             931             1,134  
Depreciation, depletion amortization
    219             5,696             5,915  
Impairment and losses on sale of businesses and fixed assets
                353             353  
Exploration expense
                466             466  
Distribution and administration expenses
    10       892       5,770       (33 )     6,639  
Fair value (gain) loss on embedded derivatives
                (340 )           (340 )
     
Profit before interest and taxation
    1,250       6,836       11,732       (8,227 )     11,591  
Finance costs
    13       19       618       (58 )     592  
Net finance expense (income) relating to pensions and other post-retirement benefits
    5       (148 )     240             97  
     
Profit before taxation
    1,232       6,965       10,874       (8,169 )     10,902  
Taxation
    278       9       3,589             3,876  
     
Profit for the period
    954       6,956       7,285       (8,169 )     7,026  
     
Attributable to:
                                       
BP shareholders
    954       6,956       7,206       (8,169 )     6,947  
Minority interest
                79             79  
     
 
    954       6,956       7,285       (8,169 )     7,026  
     

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Notes
8.   Condensed consolidating information (continued)
                                         
    Issuer      Guarantor                      
    BP                     Eliminations        
    Exploration             Other     and        
Income statement   (Alaska) Inc.     BP p.l.c.     subsidiaries     reclassifications     BP group  
    $ million  
First half 2008
                                       
Sales and other operating revenues
    4,103             196,492       (4,103 )     196,492  
Earnings from jointly controlled entities — after interest and tax
                2,727             2,727  
Earnings from associates — after interest and tax
                476             476  
Equity-accounted income of subsidiaries — after interest and tax
    421       16,554             (16,975 )      
Interest and other revenues
    271       52       597       (489 )     431  
Gains on sale of businesses and fixed assets
                1,004              1,004  
     
Total revenues and other income
    4,795       16,606       201,296       (21,567 )     201,130  
 
                                       
Purchases
    576             143,415       (4,103 )     139,888  
Production and manufacturing expenses
    501             13,706             14,207  
Production and similar taxes
    1,308             2,600             3,908  
Depreciation, depletion and amortization
    176             5,456             5,632  
Impairment and losses on sale of businesses and fixed assets
                63             63  
Exploration expense
                411             411  
Distribution and administration expenses
    12       500       7,387       (26 )     7,873  
Fair value (gain) loss on embedded derivatives
                2,771             2,771  
     
Profit before interest and taxation
    2,222       16,106       25,487       (17,438 )     26,377  
Finance costs
    76       100       1,074       (463 )     787  
Net finance expense (income) relating to pensions and other post-retirement benefits
          (442 )     122             (320 )
     
Profit before taxation
    2,146       16,448       24,291       (16,975 )     25,910  
Taxation
    665       (4 )     8,567             9,228  
     
Profit for the period
    1,481       16,452       15,724       (16,975 )     16,682  
     
Attributable to:
                                       
BP shareholders
    1,481       16,452       15,494       (16,975 )     16,452  
Minority interest
                230             230  
     
 
    1,481       16,452       15,724       (16,975 )     16,682  
     

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Notes
8. Condensed consolidating information (continued)
                                         
    Issuer      Guarantor                      
    BP                     Eliminations        
    Exploration             Other     and        
Balance sheet   (Alaska) Inc     BP p.l.c.     subsidiaries     reclassification     BP group  
    $ million  
At 30 June 2009
                                       
Non-current assets
                                       
Property, plant and equipment
    7,237        —        98,542        —        105,779   
Goodwill
    —        —        10,304        —        10,304   
Intangible assets
    291        —        10,660        —        10,951   
Investments in jointly controlled entities
    —        —        15,266        —        15,266   
Investments in associates
    —              12,927        —        12,929   
Other investments
    —        —        1,138        —        1,138   
Subsidiaries — equity-accounted basis
    4,074        99,304        —        (103,378 )     —   
     
Fixed assets
    11,602        99,306        148,837        (103,378 )     156,367   
Loans
    1,414        1,182        1,431        (2,815 )     1,212   
Other receivables
    —        —        990        —        990   
Derivative financial instruments
    —        —        4,423        —        4,423   
Prepayments
    —        —        1,303        —        1,303   
Defined benefit pension plan surpluses
    —        1,735        255        —        1,990   
     
 
    13,016        102,223        157,239        (106,193 )     166,285   
     
Current assets
                                       
Loans
    —        —        185        —        185   
Inventories
    150        —        18,500        —        18,650   
Trade and other receivables
    16,976        23,221        35,574        (46,525 )     29,246   
Derivative financial instruments
    —        —        6,760        —        6,760   
Prepayments
    142        —        2,570        —        2,712   
Current tax receivable
    —        —        562        —        562   
Cash and cash equivalents
      (9)       15        8,953        —        8,959   
     
 
    17,259        23,236        73,104        (46,525 )     67,074   
     
Total assets
    30,275        125,459        230,343        (152,718 )     233,359   
     
Current liabilities
                                       
Trade and other payables
    4,825        2,473        73,991        (46,525 )     34,764   
Derivative financial instruments
    —        —        6,181        —        6,181   
Accruals
    —              5,809        —        5,815   
Finance debt
    55        —        11,963        —        12,018   
Current tax payable
    228        —        2,598        —        2,826   
Provisions
    —        —        1,403        —        1,403   
     
 
    5,108        2,479        101,945        (46,525 )     63,007   
Non-current liabilities
                                       
Other payables
    214        41        5,669        (2,815 )     3,109   
Derivative financial instruments
    —        —        5,039        —        5,039   
Accruals
    —        48        665        —        713   
Finance debt
    —        —        24,222        —        24,222   
Deferred tax liabilities
    1,681        393        14,726        —        16,800   
Provisions
    1,105        —        11,894        —        12,999   
Defined benefit pension plan and other post-retirement benefit plan deficits
    —        —        10,521        —        10,521   
     
 
    3,000        482        72,736        (2,815 )     73,403   
     
Total liabilities
    8,108        2,961        174,681        (49,340 )     136,410   
     
Net assets
    22,167        122,498        55,662        (103,378 )     96,949   
     
Equity
                                       
BP shareholders’ equity
    22,167        122,498        54,954        (103,378 )     96,241   
Minority interest
    —        —        708        —        708   
     
 
    22,167        122,498        55,662        (103,378 )     96,949   
     

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Notes
8.   Condensed consolidating information (continued)
                                         
    Issuer      Guarantor                      
    BP                     Eliminations        
    Exploration             Other     and        
Balance Sheet   (Alaska) Inc     BP p.l.c.     subsidiaries     reclassification     BP group  
    $ million  
At 31 December 2008
                                       
Non-current assets
                                       
Property, plant and equipment
    6,959        —        96,241        —        103,200   
Goodwill
    —        —        9,878        —        9,878   
Intangible assets
    243        —        10,017        —        10,260   
Investments in jointly controlled entities
    —        —        23,826        —        23,826   
Investments in associates
    —              3,998        —        4,000   
Other investments
    —        —        855        —        855   
Subsidiaries — equity-accounted basis
    3,585        111,730        —        (115,315 )     —   
     
Fixed assets
    10,787        111,732        144,815        (115,315 )     152,019   
Loans
    209        1,174        1,393        (1,781 )     995   
Other receivables
    —        —        710        —        710   
Derivative financial instruments
    —        —        5,054        —        5,054   
Prepayments
    —        —        1,338        —        1,338   
Defined benefit pension plan surpluses
    —        1,516        222        —        1,738   
     
 
    10,996        114,422        153,532        (117,096 )     161,854   
     
Current assets
                                       
Loans
    —        —        168        —        168   
Inventories
    198        —        16,623        —        16,821   
Trade and other receivables
    18,302        6,129        35,745        (30,915 )     29,261   
Derivative financial instruments
    —        —        8,510        —        8,510   
Prepayments
    37        —        3,013        —        3,050   
Current tax receivable
    —        —        377        —        377   
Cash and cash equivalents
      (10)       11        8,196        —        8,197   
     
 
    18,527        6,140        72,632        (30,915 )     66,384   
     
Total assets
    29,523        120,562        226,164        (148,011 )     228,238   
     
Current liabilities
                                       
Trade and other payables
    4,925        2,602        57,032        (30,915 )     33,644   
Derivative financial instruments
    —        —        8,977        —        8,977   
Accruals
    —              6,736        —        6,743   
Finance debt
    55        —        15,685        —        15,740   
Current tax payable
    162        —        2,982        —        3,144   
Provisions
    —        —        1,545        —        1,545   
     
 
    5,142        2,609        92,957        (30,915 )     69,793   
Non-current liabilities
                                       
Other payables
    398        33        4,430        (1,781 )     3,080   
Derivative financial instruments
    —        —        6,271        —        6,271   
Accruals
    —        47        737        —        784   
Finance debt
    —        —        17,464        —        17,464   
Deferred tax liabilities
    1,630        322        14,246        —        16,198   
Provisions
    1,074        —        11,034        —        12,108   
Defined benefit pension plan and other retirement benefit plan deficits
    —        —        10,431        —        10,431   
     
 
    3,102        402        64,613        (1,781 )     66,336   
     
Total liabilities
    8,244        3,011        157,570        (32,696 )     136,129   
     
Net assets
    21,279        117,551        68,594        (115,315 )     92,109   
     
Equity
                                       
BP shareholders’ equity
    21,279        117,551        67,788        (115,315 )     91,303   
Minority interest
    —        —        806        —        806   
     
 
    21,279        117,551        68,594        (115,315 )     92,109   
     

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Notes
8.   Condensed consolidating information (continued)
                                         
    Issuer     Guarantor              
    BP                     Eliminations        
    Exploration         Other     and        
Cash flow statement   (Alaska) Inc     BP p.l.c.     subsidiaries     reclassification     BP group  
     
    $ million  
 
                                       
First half 2009
                                       
 
                                       
Net cash provided by operating activities
    4,887       5,212       25,230       (23,000 )     12,329  
 
                                       
Net cash (used in) provided by investing activities
    (513 )     9       (8,564 )           (9,068 )
 
                                       
Net cash used in financing activities
    (4,373 )     (5,217 )     (15,931 )     23,000       (2,521 )
 
                                       
Currency translation differences relating to cash and cash equivalents
                22             22  
     
 
                                       
(Decrease) increase in cash and cash equivalents
    1       4       757             762  
 
                                       
Cash and cash equivalents at beginning of period
    (10 )     11       8,196             8,197  
     
 
                                       
Cash and cash equivalents at end of period
    (9 )     15       8,953             8,959  
     

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Notes
8.   Condensed consolidating information (continued)
                                         
    Issuer     Guarantor                      
    BP                     Eliminations        
    Exploration         Other     and        
Cash flow statement   (Alaska) Inc     BP p.l.c.     subsidiaries     reclassification     BP group  
     
    $ million  
 
                                       
First half 2008
                                       
 
                                       
Net cash provided by operating activities
    5,806       6,663       11,442       (6,299 )     17,612  
 
                                       
Net cash used in investing activities
    (307 )           (9,001 )           (9,308 )
 
                                       
Net cash used in financing activities
    (5,499 )     (6,883 )     (2,222 )     6,299       (8,305 )
 
                                       
Currency translation differences relating to cash and cash equivalents
                32             32  
     
 
                                       
(Decrease) increase in cash and cash equivalents
          (220 )     251             31  
 
                                       
Cash and cash equivalents at beginning of period
    (10 )     244       3,328             3,562  
     
 
                                       
Cash and cash equivalents at end of period
    (10 )     24       3,579             3,593  
     

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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: 31 July 2009  /s/ D J Pearl    
  D J PEARL   
  Deputy Company Secretary   

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Exhibit 99.1
Computation of ratio of earnings to fixed charges
         
    First half 2009
    $ million, except ratios
 
       
Profit before taxation
    10,902   
 
       
Group’s share of income in excess of dividends of equity-accounted entities
      (502)  
 
       
Capitalized interest, net of amortization
    37   
 
       
 
       
Profit as adjusted
    10,437   
 
       
 
       
Fixed charges:
       
 
       
Interest expense
    406   
Rental expense representative of interest
    593   
Capitalized interest
    89   
 
       
 
    1,088   
 
       
 
       
Total adjusted earnings available for payment of fixed charges
    11,525   
 
       
 
       
Ratio of earnings to fixed charges
    10.6   
 
       

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Table of Contents

Exhibit 99.2
Capitalization and indebtedness
The following table shows the unaudited consolidated capitalization and indebtedness of the BP group as of 30 June 2009 in accordance with IFRS:
         
    30 June 2009
    $ million
Share capital
       
Authorized share capital (1)
    9,021   
 
       
Capital shares (2-3)
    5,177   
Paid-in surplus (4)
    10,848   
Merger reserve (4)
    27,206   
Own shares
      (292)  
Available-for-sale investments
    331   
Cash flow hedges
      (97)  
Foreign currency translation reserve
    4,297   
Treasury shares
      (21,426)  
Share-based payment reserve
    1,354   
Profit and loss account
    68,843   
 
       
BP shareholders’ equity
    96,241   
 
       
 
Finance debt (5-7)
       
Due within one year
    12,018   
Due after more than one year
    24,222   
 
       
Total finance debt
    36,240   
 
       
Total capitalization (8)
    132,481   
 
       
 
(1)   Authorized share capital comprises 36 billion ordinary shares, par value US$0.25 per share, and 12,750,000 cumulative preference shares, par value £1 per share.
 
(2)   Issued share capital as of 30 June 2009 comprised 18,739,978,922 ordinary shares, par value US$0.25 per share, and 12,706,252 preference shares, par value £1 per share. This excludes 1,880,519,202 ordinary shares which have been bought back and held in treasury by BP and 112,803,287 ordinary shares which have been bought back for cancellation. These shares are not taken into consideration in relation to the payment of dividends and voting at shareholders’ meetings.
 
(3)   Capital shares represent the ordinary shares of BP which have been issued and are fully paid.
 
(4)   Paid-in surplus and merger reserve represent additional paid-in capital of BP which cannot normally be returned to shareholders.
 
(5)   Finance debt recorded in currencies other than US dollars has been translated into US dollars at the relevant exchange rates existing on 30 June 2009.
 
(6)   Obligations under finance leases are included within finance debt in the above table.
 
(7)   As of 30 June 2009, the parent company, BP p.l.c., had outstanding guarantees totalling US$33,558 million, of which US$33,503 million related to guarantees in respect of borrowings by its subsidiary undertakings. Thus 92% of the finance debt had been guaranteed by BP. BP has no material outstanding contingent liabilities. All of BP’s debt is unsecured.
 
(8)   There has been no material change since 30 June 2009 in the consolidated capitalization, indebtedness or contingent liabilities of BP.

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