Final Results - Part 2 of 3
BP Amoco PLC
13 February 2001
Part 2 OF 3
BP Amoco p.l.c. and Subsidiaries
Summarized Group Results
Fourth Third Fourth
Quarter Quarter Quarter Year
1999 2000 2000 2000 1999
======================= ==============
$ million $ million
2,585 3,552 4,238 Exploration and Production 14,012 6,983
48 48 60 Gas and Power 186 211
293 1,048 915 Refining and Marketing 3,908 1,840
139 263 (82) Chemicals 760 686
(340) (216) (368) Other businesses and corporate (1,110) (826)
----------------------- --------------
Total replacement cost
2,725 4,695 4,763 operating profit 17,756 8,894
Profit (loss) on sale of
fixed assets and businesses and
(279) 138 78 termination of operations (Note 3) 220 (337)
(256) - - Restructuring costs (Note 3) - (1,943)
----------------------- --------------
Replacement cost profit before
2,190 4,833 4,841 interest and tax 17,976 6,614
506 544 (561) Stock holding gains (losses)(Note 5) 728 1,728
----------------------- --------------
Historical cost profit before
2,696 5,377 4,280 interest and tax 18,704 8,342
329 460 611 Interest expense (Note 6) 1,770 1,316
----------------------- --------------
2,367 4,917 3,669 Profit before taxation 16,934 7,026
613 1,554 1,242 Taxation (Note 7) 4,972 1,880
----------------------- --------------
1,754 3,363 2,427 Profit after taxation 11,962 5,146
53 12 17 Minority shareholders' interest 92 138
----------------------- --------------
1,701 3,351 2,410 Profit for the period 11,870 5,008
972 1,185 1,178 Distribution to shareholders 4,625 3,884
----------------------- --------------
729 2,166 1,232 Retained profit for the period 7,245 1,124
======================= ==============
Earnings per ordinary share - cents
8.76 14.85 10.53 Basic 54.85 25.82
8.71 14.75 10.47 Diluted 54.48 25.68
======================= ==============
Replacement Cost Results
Historical cost profit
1,701 3,351 2,410 for the period 11,870 5,008
(506) (544) 561 Stock holding (gains) losses (728) (1,728)
----------------------- --------------
Replacement cost profit
1,195 2,807 2,971 for the period 11,142 3,280
489 140 (172) Exceptional items, net of tax 72 2,050
----------------------- --------------
Replacement cost profit before
1,684 2,947 2,799 exceptional items 11,214 5,330
----------------------- --------------
Earnings per ordinary share - cents
On replacement cost profit before
8.67 13.04 12.40 exceptional items 51.82 27.48
======================= =============
Summarized Group Balance Sheet
31 December 31 December
2000 1999
---------------------
$ million
Fixed assets
Intangible assets 16,893 3,344
Tangible assets 75,173 52,631
Investments 11,753 10,109
---------------------
103,819 66,084
---------------------
Current assets
Stocks 9,234 5,124
Debtors 28,418 16,802
Business held for disposal 636 -
Investments 661 220
Cash at bank and in hand 1,170 1,331
---------------------
40,119 23,477
Creditors - amounts falling due within one year
Finance debt 6,418 4,900
Other creditors 30,729 18,375
---------------------
Net current assets 2,972 202
---------------------
Total assets less current liabilities 106,791 66,286
Creditors - amounts falling due
after more than one year
Finance debt 14,772 9,644
Other creditors 5,223 2,245
Provisions for liabilities and charges 12,795 10,055
---------------------
Net assets 74,001 44,342
Minority shareholders' interest 585 1,061
---------------------
BP shareholders' interest 73,416 43,281
=====================
Movement in BP shareholders' interest: $ million
At 31 December 1999 43,281
Profit for the period 11,870
Distribution to shareholders (4,625)
Currency translation differences (2,508)
Employee share schemes 267
Share buy-back (2,001)
ARCO acquisition 27,427
Share premium (295)
------
At 31 December 2000 73,416
======
Summarized Group Cash Flow Statement
Fourth Third Fourth
Quarter Quarter Quarter Year
1999 2000 2000 2000 1999
======================= ============
$ million $ million
Net cash inflow from
4,443 6,604 5,779 operating activities (a) 20,416 10,290
----------------------- --------------
136 118 - Dividends from joint ventures 645 949
----------------------- -------------
51 100 120 Dividends from associated undertakings 394 219
----------------------- -------------
Servicing of finance and returns
on investments
64 195 100 Interest received 444 179
(259) (315) (471) Interest paid (1,354) (1,065)
6 9 30 Dividends received 42 34
Dividends paid to
(6) (12) (4) minority shareholders (24) (151)
----------------------- -------------
Net cash outflow from servicing of
(195) (123) (345) finance and returns on investments (892) (1,003)
----------------------- -------------
Taxation
(380) (177) (428) UK corporation tax (869) (559)
(239) (2,532) (1,571) Overseas tax (5,329) (701)
----------------------- -------------
(619) (2,709) (1,999) Tax paid (6,198) (1,260)
----------------------- -------------
Capital expenditure
(1,868) (2,226) (3,689) Payments for fixed assets (10,101) (6,534)
Proceeds from the sale
291 1,524 917 of fixed assets 3,029 1,149
----------------------- -------------
Net cash outflow for
capital expenditure and
(1,577) (702) (2,772) financial investment (7,072) (5,385)
----------------------- -------------
Acquisitions and disposals
Investments in associated
(56) (456) (88) undertakings (985) (197)
(53) (5,095) (1,561) Acquisitions (6,265) (102)
(255) (95) - Net investment in joint ventures (218) (750)
1,004 1,106 402 Proceeds from the sale of businesses 8,333 1,292
----------------------- -------------
Net cash inflow (outflow) for
640 (4,540) (1,247) acquisitions and disposals 865 243
----------------------- -------------
(971) (1,128) (1,183) Equity dividends paid (4,415) (4,135)
----------------------- -------------
1,908 2,380 (1,647) Net cash inflow (outflow) 3,743 (82)
======================= =============
1,086 1,068 (1,059) Financing (b) 3,413 (954)
13 (1,755) (158) Management of liquid resources 452 (93)
809 (1,693) (430) Increase (decrease) in cash (122) 965
----------------------- -------------
1,908 (2,380) (1,647) 3,743 (82)
======================= =============
Analysis of Cash Flow
Fourth Third Fourth
Quarter Quarter Quarter Year
1999 2000 2000 2000 1999
======================= ==============
$ million $ million
(a) Reconciliation of historical
cost profit before interest
and tax to net cash inflow
from operating activities
Historical cost profit before
2,696 5,377 4,280 interest and tax 18,704 8,342
1,372 2,093 2,228 Depreciation and amounts provided 7,449 4,965
Exploration expenditure
34 51 73 written off 264 304
Share of (profits) losses of
joint ventures and
(397) (515) (350) associated undertakings+ (1,853) (1,704)
(51) (121) (524) Interest and other income (805) (217)
(Profit) loss on sale of fixed
277 (136) (78) assets and businesses (196) 379
224 232 33 Charge for provisions 702 847
(326) (210) (426) Utilization of provisions (969) (597)
(372) (398) (185) (Increase) decrease in stocks (1,449) (1,562)
(1,875) (49) (1,952) (Increase) decrease in debtors (5,587) (4,013)
2,861 280 2,680 Increase (decrease) in creditors 4,156 3,546
----------------------- ---------------
Net cash inflow from
4,443 6,604 5,779 operating activities 20,416 10,290
======================= ===============
+Includes the following amounts
of depreciation for the BP/Mobil
81 24 - European JV 172 308
----------------------- ---------------
(b) Financing
(189) (132) (96) Long-term borrowing (1,680) (2,140)
314 483 1,359 Repayments of long-term borrowing 2,353 2,268
(299) (345) (3,072) Short-term borrowing (4,120) (3,136)
Repayments of short-term
1,287 610 148 borrowing 4,821 2,299
----------------------- ---------------
1,113 616 (1,661) 1,374 (709)
(27) (102) (16) Issue of ordinary share capital (257) (245)
Repurchase of ordinary
- 554 618 share capital 2,001 -
- - - Stamp duty reserve tax 295 -
----------------------- ---------------
Net cash outflow
1,086 1,068 (1,059) (inflow) from financing 3,413 (954)
======================= ===============
Capital Expenditure and Acquisitions
Fourth Third Fourth
Quarter Quarter Quarter Year
1999 2000 2000 2000 1999
======================= =============
$ million $ million
By business
Exploration and Production
187 159 362 UK 961 769
37 50 85 Rest of Europe 195 94
793 1,082 897 USA 3,179 1,873
371 562 781 Rest of World 2,048 1,458
----------------------- --------------
1,388 1,853 2,125 6,383 4,194
----------------------- --------------
Gas and Power
- 78 86 UK(a) 194 -
3 1 13 Rest of Europe 16 3
5 35 2 USA 65 8
5 - - Rest of World 4 7
----------------------- --------------
13 114 101 279 18
----------------------- --------------
Refining and Marketing
49 4,098 393 UK(b)(c) 5,409 171
177 1,275 328 Rest of Europe(c) 1,712 487
211 32 655 USA(d) 1,100 646
153 99 250 Rest of World 529 330
----------------------- --------------
590 5,504 1,626 8,750 1,634
----------------------- --------------
Chemicals
151 122 210 UK 620 447
55 28 17 Rest of Europe 112 238
82 92 166 USA 349 294
89 60 119 Rest of World 504 236
----------------------- --------------
377 302 512 1,585 1,215
----------------------- --------------
58 1,814 596 Other businesses and corporate(e) 3,110 284
----------------------- --------------
2,426 9,587 4,960 20,107 7,345
======================= ==============
By geographical area
443 4,547 1,144 UK 7,438 1,518
274 1,354 443 Rest of Europe 2,041 831
1,091 2,965 1,796 USA 6,531 2,963
618 721 1,577 Rest of World 4,097 2,033
----------------------- --------------
2,426 9,587 4,960 20,107 7,345
======================= =============
Includes the following
amounts for the BP/Mobil
215 29 - European joint venture 170 624
----------------------- --------------
Capital Expenditure and Acquisitions (continued)
(a) 3Q includes $63 million and 4Q includes $62 million for the first and
second instalments on two LNG ships. Year includes these two items
(b) 3Q includes $3,817 million and year includes $4,686 million for the
purchase of Burmah Castrol's issued share capital. 4Q and year include
$175 million for the acquisition of the minority interest in Castrol
India.
(c) 3Q and year include $1,450 million for the acquisition of the
ExxonMobil share of the European fuels joint venture.
(d) 4Q and year include $110 million for the Olympic pipeline and
$70 million for Exxon's aviation lubricants business.
(e) 3Q includes $1,688 million for the acquisition of the minority interest
in Vastar. 4Q includes $416 million for the investment in Sinopec. Year
includes these two items and $578 million for the investment in
PetroChina.
Analysis of Replacement Cost Operating Profit
Fourth Third Fourth
Quarter Quarter Quarter Year
1999 2000 2000 2000 1999
======================= =============
$ million $ million
By business
Exploration and Production
861 997 1,082 UK 4,043 2,310
175 221 232 Rest of Europe 826 487
922 1,247 1,678 USA 5,114 2,136
627 1,087 1,246 Rest of World 4,029 2,050
----------------------- -------------
2,585 3,552 4,238 14,012 6,983
----------------------- -------------
Gas and Power
2 14 1 UK 14 14
46 28 54 Rest of Europe 148 171
(2) 5 3 USA 18 7
2 1 2 Rest of World 6 19
----------------------- -------------
48 48 60 186 211
----------------------- -------------
Refining and Marketing
51 63 (71) UK 173 198
46 233 354 Rest of Europe 753 295
114 609 414 USA 2,297 864
82 143 218 Rest of World 685 483
----------------------- -------------
293 1,048 915 3,908 1,840
----------------------- -------------
Chemicals
(76) (17) 10 UK (71) (61)
76 75 15 Rest of Europe 286 166
127 161 56 USA 581 513
12 44 (163) Rest of World (36) 68
----------------------- -------------
139 263 (82) 760 686
----------------------- -------------
(340) (216) (368) Other businesses and corporate (1,110) (826)
----------------------- --------------
2,725 4,695 4,763 17,756 8,894
======================= ==============
By geographical area
699 999 834 UK 3,773 2,111
344 578 608 Rest of Europe 2,013 1,167
960 1,856 2,026 USA 7,296 3,001
722 1,262 1,295 Rest of World 4,674 2,615
----------------------- --------------
2,725 4,695 4,763 17,756 8,894
======================= ==============
Includes the following amounts
for joint ventures and
293 476 352 associated undertakings 1,600 1,158
----------------------- --------------
US dollar/Sterling exchange rates
1.63 1.48 1.45 Average rates for the period 1.51 1.62
1.62 1.46 1.49 Period-end rates 1.49 1.62
======================= =============
Notes
1. Turnover
Fourth Third Fourth
Quarter Quarter Quarter Year
1999 2000 2000 2000 1999
======================= ==============
$ million $ million
By business
5,630 8,195 8,965 Exploration and Production 30,942 19,133
1,595 4,237 6,899 Gas and Power 16,081 5,323
22,041 32,555 34,362 Refining and Marketing 112,815 62,893
2,724 2,798 2,754 Chemicals 11,247 9,392
Other businesses
84 106 51 and corporate 249 198
------------------------ ---------------
32,074 47,891 53,031 171,334 96,939
Less: Sales between
4,124 5,260 8,469 businesses 23,272 13,373
------------------------ ---------------
27,950 42,631 44,562 Group excluding JVs 148,062 83,566
5,642 2,231 284 Sales of joint ventures 13,764 17,614
------------------------ ---------------
33,592 44,862 44,846 161,826 101,180
======================== ===============
By geographical area
Group excluding JVs
10,892 11,956 16,982 UK 50,400 30,223
1,754 5,603 12,217 Rest of Europe 21,553 5,973
12,858 21,513 20,823 USA 72,884 38,786
6,528 8,271 9,406 Rest of World 31,014 19,465
------------------------ ---------------
32,032 47,343 59,428 175,851 94,447
Less: Sales between
4,082 4,712 14,866 areas 27,789 10,881
------------------------ ---------------
27,950 42,631 44,562 148,062 83,566
------------------------ ---------------
Sales of joint ventures
1,250 540 - UK 3,314 3,988
5,169 1,951 - Rest of Europe 12,316 16,114
68 24 87 USA 270 155
93 240 197 Rest of World 686 342
------------------------ --------------
6,580 2,755 284 16,586 20,599
Less: Sales between
938 524 - areas 2,822 2,985
------------------------ --------------
5,642 2,231 284 13,764 17,614
======================== ==============
Notes
2. Operating profits are after charging:
Fourth Third Fourth
Quarter Quarter Quarter Year
1999 2000 2000 2000 1999
======================= =============
$ million $ million
Exploration expense
15 - 13 UK 36 51
- 20 10 Rest of Europe 42 35
57 60 72 USA 257 172
39 63 62 Rest of World 264 290
----------------------- -------------
111 143 157 599 548
======================= =============
Production taxes (i)
83 171 162 UK petroleum revenue tax 707 237
285 340 402 Overseas production taxes 1,354 780
----------------------- -------------
368 511 564 2,061 1,017
======================= =============
(i) Production taxes are charged against Exploration and Production's
operating profit and are not included in the charge for taxation in
Note 7.
3. Analysis of exceptional items
(105) 9 (96) Exploration and Production 119 (525)
14 - - Gas and Power - 14
(54) 160 (85) Refining and Marketing 99 61
(126) (30) 28 Chemicals (212) 127
(8) (1) 231 Other businesses and corporate 214 (14)
----------------------- -------------
Profit (loss) on sale of fixed
assets and businesses and
(279) 138 78 termination of operations 220 (337)
(256) - - Restructuring costs - (1,943)
----------------------- -------------
Exceptional items
(535) 138 78 before taxation+ 220 (2,280)
46 (278) 94 Taxation credit (charge) (292) 230
----------------------- -------------
Exceptional items
(489) (140) 172 after taxation (72) (2,050)
======================= =============
+Includes the following amounts
for joint ventures and
(37) 2 - associated undertakings 24 (1)
----------------------- -------------
4. Replacement cost profit
Replacement cost profits reflect the current cost of supplies. The
replacement cost profit for the period is arrived at by excluding from
the historical cost profit stock holding gains and losses.
Notes
5. Stock holding gains (losses)
Fourth Third Fourth
Quarter Quarter Quarter Year
1999 2000 2000 2000 1999
======================= =============
$ million $ million
12 3 (1) Exploration and Production 4 (1)
- - (11) Gas and Power 11 -
455 524 (520) Refining and Marketing 620 1,613
39 17 (29) Chemicals 93 116
---------------------- --------------
506 544 (561) 728 1,728
====================== ==============
Includes the following amounts
for joint ventures and
141 37 (2) associated undertakings 229 547
----------------------- --------------
6. Interest expense
264 384 532 Group interest payable(a) 1,482 1,048
(10) (32) (42) Capitalized (119) (43)
----------------------- --------------
254 352 490 1,363 1,005
26 24 19 Joint ventures 78 70
35 36 42 Associated undertakings 140 131
Unwinding of discount
34 48 60 on provisions 189 130
Change in discount rate
(20) - - for provisions - (20)
----------------------- --------------
329 460 611 1,770 1,316
======================= ==============
(a) Interest expense for the year and the fourth quarter includes a charge
of $111 million (1999 $24 million) relating to the early redemption of
debt.
7. Charge for taxation
250 269 334 UK 1,207 603
363 1,285 908 Overseas 3,765 1,277
----------------------- -------------
613 1,554 1,242 4,972 1,880
======================= =============
Includes the following amounts
for joint ventures and
29 66 70 associated undertakings 219 104
----------------------- -------------
Notes
8. Analysis of changes in net debt
Fourth Third Fourth
Quarter Quarter Quarter Year
1999 2000 2000 2000 1999
======================= ==============
$ million $ million
Opening balance
15,671 19,187 19,688 Finance debt 14,544 13,755
536 3,313 1,607 Less: Cash 1,331 405
347 2,616 862 Current asset investments 220 470
----------------------- --------------
14,788 13,258 17,219 Opening net debt 12,993 12,880
----------------------- --------------
Closing balance
14,544 19,688 21,190 Finance debt 21,190 14,544
1,331 1,607 1,170 Less: Cash 1,170 1,331
220 862 661 Current asset investments 661 220
----------------------- --------------
12,993 17,219 19,359 Closing net debt 19,359 12,993
----------------------- --------------
(Increase) decrease
1,795 (3,961) (2,140) in net debt (6,366) (113)
======================= ==============
Movement in cash/
809 (1,693) (430) bank overdrafts (122) 965
Increase(decrease) in
(60)(1,755) (158) current asset investments 452 (166)
Net cash (inflow) outflow
from financing(excluding
1,113 616 (1,661) share capital) 1,374 (709)
(29) (27) (24) Other movements (44) (144)
- (949) - Debt acquired (8,072) -
----------------------- --------------
Movement in net debt before
1,833 (3,808) (2,273) exchange effects (6,412) (54)
(38) (153) 133 Exchange adjustments 46 (59)
----------------------- --------------
(Increase) decrease
1,795 (3,961) (2,140) in net debt (6,366) (113)
======================= ==============
Notes
9. Consolidated statement of cash flows presented on a US GAAP format
Fourth Third Fourth
Quarter Quarter Quarter Year
1999 2000 2000 2000 1999
========================= =============
$ million $ million
Operating activities
1,754 3,363 2,427 Profit after taxation 11,962 5,146
Adjustments to reconcile
profits after tax to net
cash provided by
operating activities
Depreciation and
1,372 2,093 2,228 amounts provided 7,449 4,965
Exploration expenditure
34 51 73 written off 264 304
Share of (profit) loss of
joint ventures and associates
(120) (8) (82) less dividends received (377) (232)
Loss (profit) on sale of
277 (136) (78) businesses and fixed assets (196) 379
Working capital movement
946 (1,372) (1,335) (see analysis below) (5,368) (1,877)
(652) 1,030 9 Other 447 215
----------------------- -------------
Net cash provided by
3,611 5,021 3,242 operating activities 14,181 8,900
----------------------- ------------
Investing activities
(1,882) (2,226) (3,689) Capital expenditures (10,101) (6,314)
Acquisitions, net of
(53) (5,095) (1,561) cash acquired (6,265) (102)
Investment in
(56) (456) (88) associated undertakings (985) (197)
Net investment in
(255) (95) - joint ventures (218) (750)
Proceeds from
1,295 2,630 1,319 disposal of assets 11,362 2,441
----------------------- -------------
Net cash from
(951) (5,242) (4,019) investing activities (6,207) (4,922)
----------------------- -------------
Notes
9. Consolidated statement of cash flows presented on a US GAAP format
(continued)
Fourth Third Fourth
Quarter Quarter Quarter Year
1999 2000 2000 2000 1999
======================= =============
$ million $ million
Financing activities
Net proceeds from shares
27 (452) (602) issued (repurchased) (2,039) 245
Proceeds from
189 132 96 long-term financing 1,680 2,140
Repayments of
(314) (483) (1,359) long-term financing (2,353) (2,268)
Net (decrease) increase
(988) (265) 2,924 in short-term debt (701) 837
Dividends paid
(971) (1,128) (1,183) - BP shareholders (4,415) (4,135)
(6) (12) (4) - Minority shareholders (24) (151)
----------------------- --------------
Net cash used in
(2,063) (2,208) (128) financing activities (7,852) (3,332)
----------------------- --------------
Currency translation
differences relating to
57 (51) (49) cash and cash equivalents (62) 15
----------------------- --------------
Increase (decrease) in cash
654 (2,480) (954) and cash equivalents 60 661
----------------------- --------------
Cash and cash equivalents
801 4,949 2,469 at beginning of period 1,455 794
----------------------- --------------
Cash and cash equivalents
1,455 2,469 1,515 at end of period 1,515 1,455
----------------------- --------------
Analysis of working
capital movement
(372) (398) (185) (Increase) decrease in stocks(1,449) (1,562)
(Increase) decrease
(1,785) (70) (2,443) in debtors (5,954) (3,854)
Increase (decrease)
3,103 (904) 1,293 in creditors 2,035 3,539
----------------------- --------------
Total working
946 (1,372) (1,335) capital movement (5,368) (1,877)
======================= ==============
Notes
10. Ordinary shares
Shares in issue at 31 December 2000 = 22,528.7 million.
Average number of shares in issue during January-December 2000 =
21,638.3 million (excluding shares held by the Employee Share Ownership
Plans). Each BP ADS represents six BP Ordinary Shares.
11. Statutory accounts
The above financial information for the year 2000 does not constitute
statutory accounts. It is an extract from the 2000 group accounts
(except Note 9), approved by a duly appointed and authorized committee
of the Board of Directors at today's Results Committee, but not yet
delivered to the UK Registrar of Companies; the report of the auditors
on those accounts was unqualified. Quarterly results are unaudited.
Contacts
London New York Frankfurt
Press Roddy Kennedy Ian Fowler
Office +44 (0)20 7496 4624 +1 212 451 8008
Investor Greg Coleman Terry LaMore Karl Weckel
Relations +44 (0)20 7496 4717 +1 212 451 8034 +49 (0)69 71 37 9990
http://www.bp.com/investors
The material to be shown at the BP Analysts Presentation on 13 February 2001
will be available on the BP website at 13.00 GMT on that day.
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