2nd Quarter & Interims-Part 1
BP AMOCO PLC
10 August 1999
Part 1
BP Amoco p.l.c.
Group Results
2nd Quarter and Half Year 1999
===========================================================================
BP AMOCO SECOND QUARTER UP 19% ON A YEAR AGO.
STRONG BENEFITS FROM MERGER INTEGRATION.
o Second quarter 1999 replacement cost profit, before exceptional items,
was $1,367 million, after adjusting for special charges of
$141 million mainly in respect of merger integration costs - an
increase of 19%. This reflected further benefits from integration and
from underlying performance improvements.
o The quarter's adjusted result is the best since the fourth quarter of
1997. Against the second quarter of 1998, performance improvements
contributed around $550 million, more than offsetting the adverse
environment effect of $350 million.
o The half-year result, adjusted for special items, was $2,128 million.
The reduction against a year ago was limited to $300 million in spite
of an adverse environmental effect of $1.2 billion. This reflects
substantial cost reductions and higher volumes in all businesses.
o Major discoveries announced.
o Quarterly dividend 10 cents per share ($0.60 per ADS).
BP Amoco p.l.c. today reported its second quarter 1999 results. BP Amoco
Group Chief Executive, Sir John Browne, commented:
'We have almost achieved the projected annual run rate of $2 billion
in merger benefits, significantly earlier than previously indicated.
Additional restructuring benefits have been identified and will
continue to flow through to results in the future. The ratio of
restructuring costs to benefits remains very favourable.
'These achievements have benefited results which remain strong in spite
of the severe decline in the environment for the half-year. This gives
me great confidence for the future and, in particular, for the
integration of ARCO.'
Operating Results
Second First Second
Quarter Quarter Quarter First Half
1998 1999 1999 1999 1998
======================= =============
Replacement cost
1,932 1,246 2,075 operating profit ($m) 3,321 3,931
----------------------- -------------
Replacement cost profit
1,079 677 1,226 before exceptional items ($m) 1,903 2,358
----------------------- -------------
Profit (loss) after
exceptional items ($m)
1,091 (183) 1,063 Replacement cost 880 2,420
992 (176) 1,635 Historical cost 1,459 1,632
----------------------- -------------
Earnings per ordinary share (cents)
RC profit before
12 7 13 exceptional items 20 25
HC profit after
10 (2) 17 exceptional items 15 17
Earnings per ADS (cents)
RC profit before
72 42 78 exceptional items 120 150
----------------------- -------------
Dividends per ordinary share
10.0 10.0 10.0 cents 20.0 19.5
6.0 6.1 6.2 pence 12.3 11.8
60.0 60.0 60.0 Dividends per ADS (cents) 120.0 117.0
======================= =============
Income Adjusted for Special Items
Adjusted Adjusted
Results ------- 2Q 1999 --------- Results
2Q 1Q Adjusted Special Reported First Half
1998 1999 Results Items+ Earnings $ million 1999 1998
===================================== =============
Exploration and
994 904 1,531 28 1,503 Production 2,435 2,215
839 363 593 33 560 Refining and Marketing 956 1,378
323 217 257 59 198 Chemicals 474 669
Other businesses and
(66) (124) (109) 77 (186) corporate (233) (173)
------------------------------------- -------------
2,090 1,360 2,272 197 2,075 RC operating profit 3,632 4,089
------------------------------------- -------------
(289) (304) (328) - (328) Interest expense (632) (553)
(643) (284) (552) (56) (496) Taxation (836) (1,080)
(11) (11) (25) - (25) MSI (36) (30)
------------------------------------- -------------
RC profit before
1,147 761 1,367 141 1,226 exceptional items 2,128 2,426
------------------------------------- -------------
Exceptional items
(186) before tax
Taxation on
23 exceptional items
-----
RC profit after
1,063 exceptional items
572 Stock holding gains (losses)
-----
1,635 HC profit
=====
+ The special items refer to non-recurring charges and credits reported in
the quarter.
Operating Results
Replacement cost profit, before exceptional items, was $1,367 million after
adjusting for special charges of $141 million, mainly in respect of merger
integration costs. The adjusted result was up 19% on a year ago, reflecting
performance improvements and was achieved despite adverse environmental
conditions. Compared to the previous quarter, the adjusted result was up
80%; this also reflects the improved oil price.
Exploration and Production replacement cost operating profit for the quarter
of $1,531 million, after adjusting for special charges of $28 million, was
up 54% on the equivalent quarter last year. This reflects cost savings,
higher production and stronger oil prices. In July, significant discoveries
were announced in the US Gulf of Mexico, Angola and Azerbaijan. The adjusted
result for the half-year was $2,435 million, 10% up on a year ago in spite
of lower oil and gas prices.
In Refining and Marketing, replacement cost operating profit was $593
million, after adjusting for special charges of $33 million. Lower costs and
higher marketing volumes partially offset the effect of a severe decline in
the refining environment and pressure on marketing margins, limiting the
fall in the adjusted result to 29% against a year ago. The half-year
adjusted result was $956 million; performance improvements partly offset the
effect of the severe deterioration in the refining environment.
Chemicals' replacement cost operating profit for the second quarter of $257
million, after adjusting for special charges of $59 million, was up 18% from
the previous quarter, reflecting improved volumes and cost reductions. The
adjusted result for the half-year was $474 million, with performance
improvements partially offsetting the steep decline in margins for many
products.
Interest expense was $328 million compared with $304 million in the previous
quarter.
The effective tax rate on replacement cost profit, before exceptional items,
was 28% for the quarter and the half-year.
Capital expenditure for the half-year was $3.3 billion, down 34% on a year
ago, reflecting increased focus in the capital programme. Divestment
proceeds amounted to $531 million.
Net debt at quarter-end was $15.1 billion. The ratio of net debt to net debt
plus equity was 26%.
Net cash outflow in the quarter was $1.2 billion, similar to the previous
quarter, and includes the double dividend payment arising from the
rescheduling of dividend payment dates. Cash flow was positive before the
second dividend payment and restructuring costs. For the half year, net cash
outflow was $2.4 billion.
Operating Statistics
Second First Second
Quarter Quarter Quarter First Half
1998 1999 1999 1999 1998
======================= =============
Crude oil and natural gas
liquids production (mb/d)
(Net of Royalties)
484 586 565 UK 575 484
114 107 98 Rest of Europe 102 115
846 814 794 USA 804 848
582 592 592 Rest of World 592 579
----------------------- -------------
Total crude oil and
2,026 2,099 2,049 liquids production 2,073 2,026
----------------------- -------------
Natural gas production (mmcf/d)
1,165 1,490 1,132 UK 1,310 1,369
197 243 146 Rest of Europe 194 205
2,436 2,433 2,380 USA 2,406 2,432
1,977 1,906 2,286 Rest of World 2,097 1,945
----------------------- -------------
5,775 6,072 5,944 Total natural gas production 6,007 5,951
----------------------- -------------
Oil sales volumes (mb/d)
Refined products
256 240 231 UK 236 257
745 785 785 Rest of Europe 785 757
1,503 1,458 1,597 USA 1,528 1,461
597 658 571 Rest of World 614 592
----------------------- -------------
3,101 3,141 3,184 Total marketing sales 3,163 3,067
1,763 1,776 1,928 Trading/supply sales 1,851 1,687
----------------------- -------------
4,864 4,917 5,112 Total refined product sales 5,014 4,754
3,889 3,947 4,175 Crude oil 4,062 3,998
----------------------- -------------
8,753 8,864 9,287 Total oil sales 9,076 8,752
----------------------- -------------
Chemicals production+ (kte)
907 975 941 UK 1,916 1,881
1,288 1,409 1,507 Rest of Europe 2,916 2,614
2,454 2,299 2,488 USA 4,787 4,534
439 460 579 Rest of World 1,039 876
----------------------- -------------
5,088 5,143 5,515 Total production 10,658 9,905
======================= ==============
+ Includes BP Amoco share of associated undertakings and other interests in
production.
Exploration and Production
Replacement cost operating profit for the second quarter was $1,531 million,
after adjusting for special charges of $28 million. This adjusted result was
up 54% on the equivalent quarter last year, reflecting lower costs,
increased production and stronger oil prices.
Overall production for the quarter was up 2% on the second quarter of 1998.
There has been a significant contribution from the Eastern Trough Area
Project in the central North Sea which was commissioned in July last year.
The increase more than offset the declines at the mature fields in Alaska.
Four major discoveries, in which BP Amoco is the operator, were announced in
the Gulf of Mexico. The largest is the Crazy Horse prospect (BP Amoco 75%),
which has estimated recoverable oil of at least one billion boe. The others
are Atlantis (BP Amoco 56%), Mad Dog (BP Amoco 63.6%) and Holstein (BP Amoco
50%). It is estimated that these three fields will add around 600 million
barrels of oil equivalent (boe) to BP Amoco's resource base.
In May, BP Amoco (26.7% interest and operator) signed a Production Sharing
Agreement with the Angolan state oil company Sonangol, for Block 31 in
Angola's deep water acreage, with exploration activities commencing shortly.
This adds to the group's interests in five other blocks offshore Angola.
Further, it was announced that BP Amoco (50% interest and operator) had a
significant oil discovery on its second exploration well on Block 18.
Further geological and engineering studies will be carried out to fully
evaluate this and an earlier discovery on the same block.
In July, we announced a significant gas condensate discovery in Azerbaijan
following the completion of the SDX1 well on the offshore prospect Shah
Deniz in the Caspian Sea (BP Amoco 25.5% interest and operator).
In early August BP Amoco agreed the sale of its Canadian oil assets for
$1.07 billion. The sale does not include the group's Canadian natural gas
assets; BP Amoco remains Canada's biggest producer of natural gas.
Exploration and Production
2Q 1Q 2Q First Half
1998 1999 1999 1999 1998
================= =============
836 818 1,503 Replacement cost operating profit ($m) 2,321 2,057
----------------- -------------
Results include:
221 172 124 Exploration expense ($m) 296 441
----------------- -------------
Average oil realizations* ($/bbl)
13.08 11.05 14.75 : UK 12.86 13.72
11.79 9.86 14.12 : USA 11.96 12.80
11.56 10.45 14.51 : Rest of World 12.51 11.99
12.13 10.45 14.49 : BP Amoco average 12.45 12.89
----------------- -------------
Average natural gas realizations ($/mcf)
2.80 2.31 2.24 : UK 2.27 2.94
1.88 1.59 1.97 : USA 1.78 1.87
1.70 1.61 1.42 : Rest of World 1.51 1.74
1.94 1.80 1.82 : BP Amoco average 1.81 2.00
================= =============
* Crude oil and natural gas liquids.
Refining and Marketing
Replacement cost operating profit of $593 million, after adjusting for
special charges of $33 million, was down 29% on a year ago. This reflected
the severe deterioration in refining margins and pressure on marketing
margins, partially offset by significant cost savings and improved marketing
volumes.
During the quarter, the sale of most of the 134 sites mandated by the FTC
during the merger approval process was completed. Additionally, a programme
of refinery sales was announced in July, with the Alliance refinery in
Louisiana to be marketed immediately.
Growth has continued in markets new to BP Amoco with some 30 new retail
sites brought into operation in Venezuela, Poland and Japan during the first
half of the year.
In our LPG business unit, portfolio adjustments continued during the second
quarter with the sale of our business in Hungary and the acquisition of
VanderVel NV, Belgium, a bottle and bulk distributor.
In April, we completed a $245 million upgrade to our Toledo, Ohio, refinery
by commissioning the coker unit. The upgrade allows the refinery to process
70% of its throughput as lower cost, heavy sour crudes.
2Q 1Q 2Q First Half
1998 1999 1999 1999 1998
================= =============
839 346 560 Replacement cost operating profit ($m) 906 1,378
----------------- -------------
Indicative global refining margin ($/bbl)
2.09 0.68 0.34 North West Europe 0.51 2.28
2.60 0.80 1.34 USA 1.07 2.38
2.39 1.19 0.87 Singapore 1.03 2.04
2.35 0.82 0.83 BP Amoco average 0.83 2.28
----------------- -------------
Refinery throughputs (mb/d)
313 273 285 UK 279 309
534 563 519 Rest of Europe 541 540
1,605 1,276 1,396 USA 1,336 1,571
353 382 383 Rest of World 383 366
----------------- -------------
2,805 2,494 2,583 Total throughput 2,539 2,786
================= =============
Chemicals
Chemicals' replacement cost operating profit for the second quarter was $257
million, after adjusting for $59 million of special costs related to
integration and litigation settlement. Although there was continued market
deterioration due to rising oil prices, excess capacity and the weak euro,
the adjusted result reflected an 18% increase on the previous quarter due to
volume growth and restructuring benefits. Despite these improvements, the
adjusted result was 20% down on a year ago, reflecting the extent of the
decline in margins over the past year.
Chemicals production was up 7% from the first quarter, due to improved sales
and also additional capacity (mainly polypropylene at Chocolate Bayou, Texas
and PTA (purified terephthalic acid) at Geel, Belgium). These factors also
contributed to the 8% growth in production on a year ago.
During the quarter, BP Amoco announced plans for the creation of two new
polypropylene joint ventures with Elf Atochem, one to pool polypropylene
activities in Europe and the other to form a global polypropylene research
and technology alliance. Also during the quarter, we sold our 20% share of
the Wilton (UK) olefins cracker. The sale of BP Amoco's Plaskon electronic
materials business, located in the US and Singapore, was announced in July.
2Q 1Q 2Q First Half
1998 1999 1999 1999 1998
================= =============
323 206 198 Replacement cost operating profit ($m) 404 669
----------------- -------------
825 579 392 Chemicals integrated margin (Dm/te) 485 954
================= =============
Other Businesses and Corporate
Other Businesses and Corporate comprises Finance, BP Solarex, the group's
coal asset, interest income and costs relating to corporate activities
worldwide. Replacement cost operating loss was $109 million, after adjusting
for special charges of $77 million in respect of integration costs. In
April, BP Amoco announced that it had acquired from Enron Corporation the
50% of Solarex it did not already own.
2Q 1Q 2Q First Half
1998 1999 1999 1999 1998
================= =============
(66) (124) (186) Replacement cost operating loss ($m) (310) (173)
================= =============
Exceptional Items
Exceptional items include the profit on sale of fixed assets and businesses
and further restructuring relating mainly to severance.
2Q 1Q 2Q First Half
1998 1999 1999 $ million 1999 1998
================= =============
Profit on sale of fixed assets
12 97 162 and businesses 259 78
-(1,155) (348) Restructuring costs (1,503) -
- 198 23 Taxation credit (charge) 221 (16)
----------------- -------------
12 (860) (163) Exceptional items after taxation (1,023) 62
================= =============
1999 Dividends
BP Amoco p.l.c. today announced a second quarterly dividend for 1999 of
10 cents per ordinary share. Holders of ordinary shares will receive 6.225
pence per share and holders of American Depositary Receipts (ADRs) $0.60 per
ADS share. The dividend is payable on 10 September 1999 to shareholders on
the register on 20 August 1999. 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 on 10 September 1999. The third quarter
results and dividend will be announced on 8 November 1999.
Half Year Review
The Half Year Review will be posted to shareholders on 20 August 1999.
Outlook
Looking forward, the Group's outlook has improved, with positive
developments on the supply side underpinned by firming aggregate demand.
Crude oil prices have responded to OPEC quota discipline and are approaching
OPEC target levels. Continuation of this discipline will be critical to
price stability.
Natural gas prices are likely to remain stable with some firming towards
year-end.
Downstream, refining margins are not likely to show marked recovery;
marketing margins are expected to stabilize following oil price increases.
In Chemicals, margins are likely to remain weak in the near term due to
higher oil prices, new industry capacity and the weak euro. Most businesses
are at or below their historic bottom-of-cycle position, which should lead,
in due course, to some stability and recovery.
BP Amoco's Group Chief Executive, Sir John Browne, concluded:
' The new combined company is delivering on performance expectations and
has now developed and communicated its strategy for the future, which
will position us for continued strong competitive performance.'
----------------------------------------------------------------------
The foregoing discussion, in particular the statements under 'Outlook',
focuses on certain trends and general market and economic conditions
and outlook on production levels or rates, prices, margins and
currency exchange rates and, as such, are forward-looking statements
that involve risk and uncertainty that could cause actual results and
developments to differ materially from those expressed or implied
by this discussion. By their nature, trends and outlook on production,
price, margin and currency exchange rates are difficult to forecast
with any precision, and there are a number of factors, including
the dynamic nature of economic conditions, that could cause actual
results and developments to differ materially from those expressed
or implied by these forward-looking statements. Additional information,
including information on factors which may affect BP Amoco's business,
is contained in BP Amoco's Annual Report and Accounts for 1998 and in
the Annual Report on Form 20-F filed with the US Securities and
Exchange Commission.
----------------------------------------------------------------------
BP Amoco p.l.c. and Subsidiaries
Summarized Group Results
Second First Second
Quarter Quarter Quarter First Half
1998* 1999 1999 1999 1998*
======================= =============
$ million $ million
836 818 1,503 Exploration and Production 2,321 2,057
839 346 560 Refining and Marketing 906 1,378
323 206 198 Chemicals 404 669
(66) (124) (186) Other businesses and corporate (310) (173)
----------------------- -------------
Total replacement cost
1,932 1,246 2,075 operating profit 3,321 3,931
Profit on sale of fixed assets
12 97 162 and businesses (Note 4) 259 78
- (1,155) (348) Restructuring costs (Note 4) (1,503) -
----------------------- -------------
Replacement cost profit before
1,944 188 1,889 interest and tax 2,077 4,009
(99) 7 572 Stock holding gains (losses)(Note 6) 579 (788)
----------------------- -------------
Historical cost profit before
1,845 195 2,461 interest and tax 2,656 3,221
289 304 328 Interest expense (Note 7) 632 553
----------------------- -------------
1,556 (109) 2,133 Profit (loss) before taxation 2,024 2,668
553 56 473 Taxation (Note 8) 529 1,006
----------------------- -------------
1,003 (165) 1,660 Profit (loss) after taxation 1,495 1,662
11 11 25 Minority shareholders' interest 36 30
----------------------- -------------
992 (176) 1,635 Profit (loss) for the period 1,459 1,632
======================= =============
939 970 970 Distribution to shareholders 1,940 1,852
----------------------- -------------
Earnings per ordinary share - cents
10 (2) 17 Basic 15 17
10 (2) 17 Diluted 15 17
======================= =============
* Restated - for further information see Note 1.
Replacement Cost Results
Second First Second
Quarter Quarter Quarter First Half
1998* 1999 1999 1999 1998*
======================= =============
$ million $ million
Historical cost profit (loss)
992 (176) 1,635 for the period 1,459 1,632
99 (7) (572) Stock holding (gains) losses (579) 788
----------------------- -------------
Replacement cost profit (loss)
1,091 (183) 1,063 for the period 880 2,420
(12) 860 163 Exceptional items, net of tax 1,023 (62)
----------------------- -------------
Replacement cost profit before
1,079 677 1,226 exceptional items 1,903 2,358
======================= =============
Earnings per ordinary share - cents
On replacement cost profit before
12 7 13 exceptional items 20 25
======================= =============
* Restated - for further information see Note 1.
Summarized Group Balance Sheet
30 June 31 December
1999 1998*
---------------------
$ million
Fixed assets
Intangible assets 3,489 3,037
Tangible assets 53,831 54,880
Investments 9,752 9,772
---------------------
67,072 67,689
---------------------
Current assets
Stocks 4,232 3,642
Debtors 14,577 12,709
Investments 304 470
Cash at bank and in hand 467 405
---------------------
19,580 17,226
Creditors - amounts falling due within one year
Finance debt 4,029 2,837
Other creditors 16,170 15,329
---------------------
Net current liabilities (619) (940)
---------------------
Total assets less current liabilities 66,453 66,749
Creditors - amounts falling due
after more than one year
Finance debt 11,821 10,918
Other creditors 2,219 2,047
Provisions for liabilities and charges 9,781 10,100
---------------------
Net assets 42,632 43,684
Minority shareholders' interest 1,040 1,072
---------------------
BP Amoco shareholders' interest 41,592 42,612
=====================
Movement in BP Amoco shareholders' interest: $ million
At 31 December 1998 41,786
Prior year adjustment - change in accounting policy (Note 1) 826
------
As restated 42,612
Profit for the period 1,459
Distribution to shareholders (1,940)
Currency translation differences (1,016)
Share dividend plan 311
Employee share schemes 166
------
At 30 June 1999 41,592
======
* Restated - for further information see Note 1.
Summarized Group Cash Flow Statement
Second First Second
Quarter Quarter Quarter First Half
1998 1999 1999 1999 1998
======================= ============
$ million $ million
Net cash inflow from
2,579 829 2,329 operating activities (a) 3,158 4,650
----------------------- -------------
127 212 230 Dividends from joint ventures 442 201
----------------------- -------------
152 45 98 Dividends from associated undertakings 143 190
----------------------- -------------
Servicing of finance and returns
on investments
75 32 50 Interest received 82 119
(270) (281) (316) Interest paid (597) (526)
3 7 13 Dividends received 20 11
Dividends paid to
(39) (65) (31) minority shareholders (96) (40)
----------------------- -------------
Net cash outflow from servicing of
(231) (307) (284) finance and returns on investments (591) (436)
----------------------- -------------
Taxation
(73) (72) (59) UK corporation tax (131) (127)
(392) 27 (89) Overseas tax (62) (769)
----------------------- -------------
(465) (45) (148) Tax paid (193) (896)
----------------------- -------------
Capital expenditure
(2,092) (1,515) (1,678) Payments for fixed assets (3,193) (4,287)
Proceeds from the sale
252 87 352 of fixed assets 439 580
----------------------- -------------
Net cash outflow for capital
(1,840) (1,428) (1,326) expenditure (2,754) (3,707)
----------------------- -------------
Summarized Group Cash Flow Statement (continued)
Second First Second
Quarter Quarter Quarter First Half
1998 1999 1999 1999 1998
======================= =============
$ million $ million
Acquisitions and disposals
Investments in associated
(81) (88) (51) undertakings (139) (220)
- - (45) Acquisitions (45) (205)
18 (200) (69) Net investment in joint ventures (269) 28
- 92 - Proceeds from the sale of businesses 92 77
----------------------- -------------
Net cash outflow for
(63) (196) (165) acquisitions and disposals (361) (320)
----------------------- -------------
(578) (263) (1,934) Equity dividends paid (2,197) (1,177)
----------------------- -------------
(319) (1,153) (1,200) Net cash outflow (2,353) (1,495)
======================= =============
(602) (829) (1,438) Financing (b) (2,267) (1,413)
332 (161) - Management of liquid resources (161) (218)
(49) (163) 238 Increase (decrease) in cash 75 136
----------------------- -------------
(319) (1,153) (1,200) (2,353) (1,495)
======================= =============
Analysis of Cash Flow
Second First Second
Quarter Quarter Quarter First Half
1998 1999 1999 1999 1998
======================= =============
$ million $ million
(a) Reconciliation of historical
cost profit before interest
and tax to net cash inflow
from operating activities
Historical cost profit before
1,845 195 2,461 interest and tax 2,656 3,221
1,448 1,244 1,152 Depreciation and amounts provided 2,396 2,674
Exploration expenditure
101 84 51 written off 135 180
Share of (profits) losses of
joint ventures and
(253) (356) (383) associated undertakings+ (739) (471)
(78) (52) (61) Interest and other income (113) (135)
Profit on sale of fixed assets
(12) (58) (148) and businesses (206) (78)
26 449 30 Charge for provisions 479 147
(87) (95) (115) Utilization of provisions (210) (164)
6 (1) (603) Decrease (increase) in stocks (604) 518
190 (1,014) (774) Decrease (increase) in debtors (1,788) 1,165
(607) 433 719 Increase (decrease) in creditors 1,152 (2,407)
----------------------- --------------
Net cash inflow from
2,579 829 2,329 operating activities 3,158 4,650
======================= ==============
+Includes the following amounts
of depreciation of the BP/Mobil
79 78 72 European JV 150 148
----------------------- --------------
(b) Financing
(1,221) (50) (1,616) Long-term borrowing (1,666) (1,561)
681 793 558 Repayments of long-term borrowing 1,351 880
(436) (2,192) (463) Short-term borrowing (2,655) (1,536)
Repayments of short-term
136 721 148 borrowing 869 296
------------------------ --------------
(840) (728) (1,373) (2,101) (1,921)
(10) (101) (65) Issue of ordinary share capital (166) (53)
Repurchase of ordinary
248 - - share capital - 561
------------------------ --------------
(602) (829) (1,438) Net cash inflow from financing (2,267) (1,413)
======================== ==============
Capital Expenditure and Acquisitions
Second First Second
Quarter Quarter Quarter First Half
1998 1999 1999 1999 1998
======================= =============
$ million $ million
By business
Exploration and Production
470 244 203 UK 447 876
40 8 5 Rest of Europe 13 91
521 362 403 USA 765 1,030
547 320 491 Rest of World 811 1,153
----------------------- --------------
1,578 934 1,102 2,036 3,150
----------------------- --------------
Refining and Marketing
38 34 41 UK 75 59
73 80 96 Rest of Europe 176 185
218 154 130 USA 284 389
82 48 62 Rest of World 110 136
----------------------- --------------
411 316 329 645 769
----------------------- --------------
Chemicals
74 60 103 UK 163 119
55 61 71 Rest of Europe 132 322
114 63 84 USA 147 204
58 25 52 Rest of World 77 113
----------------------- --------------
301 209 310 519 758
----------------------- --------------
64 25 38 Other businesses and corporate 63 388
----------------------- --------------
2,354 1,484 1,779 3,263 5,065
======================= =============
By geographical area
604 344 376 UK 720 1,317
169 151 172 Rest of Europe 323 637
894 595 626 USA 1,221 1,707
687 394 605 Rest of World 999 1,404
----------------------- --------------
2,354 1,484 1,779 3,263 5,065
======================= =============
Includes the following
amounts for the BP/Mobil
106 107 127 European joint venture 234 238
----------------------- --------------
US dollar/Sterling exchange rates
1.65 1.63 1.61 Average rates for the period 1.62 1.65
1.67 1.61 1.58 Period-end rates 1.58 1.67
======================= =============
Analysis of Replacement Cost Operating Profit
Second First Second
Quarter Quarter Quarter First Half
1998 1999 1999 1999 1998
======================= =============
$ million $ million
By business
Exploration and Production
464 323 461 UK 784 990
116 127 103 Rest of Europe 230 234
343 196 427 USA 623 829
(87) 172 512 Rest of World 684 4
----------------------- -------------
836 818 1,503 2,321 2,057
----------------------- -------------
Refining and Marketing
67 (22) 67 UK 45 145
152 100 58 Rest of Europe 158 276
477 113 332 USA 445 641
143 155 103 Rest of World 258 316
----------------------- -------------
839 346 560 906 1,378
----------------------- -------------
Chemicals
62 42 (26) UK 16 147
69 61 21 Rest of Europe 82 142
181 107 155 USA 262 387
11 (4) 48 Rest of World 44 (7)
----------------------- -------------
323 206 198 404 669
----------------------- -------------
(66) (124) (186) Other businesses and corporate (310) (173)
----------------------- -------------
1,932 1,246 2,075 3,321 3,931
======================= =============
By geographical area
558 347 397 UK 744 1,223
344 282 191 Rest of Europe 473 645
942 288 823 USA 1,111 1,698
88 329 664 Rest of World 993 365
----------------------- -------------
1,932 1,246 2,075 3,321 3,931
======================= =============
Includes the following amounts
for joint ventures and
309 260 246 associated undertakings 506 664
----------------------- -------------
More to follow
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