1st Quarter Results (2 of 3)
BP PLC
29 April 2003
BP p.l.c. and Subsidiaries
Summarized Group Results
First Fourth First
Quarter Quarter Quarter
2003 2002 2002
=======================
$ million
Exploration and Production 4,326 3,248 1,928
Gas, Power and Renewables 194 72 111
Refining and Marketing 631 (36) 68
Chemicals 139 104 76
Other businesses and corporate (165) (207) (125)
-----------------------
Total replacement cost operating profit 5,125 3,181 2,058
Profit (loss) on sale of fixed assets and
businesses or termination of operations (Note 3) 394 (893) (109)
-----------------------
Replacement cost profit before interest and tax 5,519 2,288 1,949
Stock holding gains (losses)(Note 5) 799 (174) 473
-----------------------
Historical cost profit before interest and tax 6,318 2,114 2,422
Interest expense (Note 6) 220 332 333
-----------------------
Profit before taxation 6,098 1,782 2,089
Taxation (Note 7) 1,805 1,125 753
-----------------------
Profit after taxation 4,293 657 1,336
Minority shareholders' interest 26 6 40
-----------------------
Profit for the period 4,267 651 1,296
=======================
Distribution to shareholders 1,386 1,398 1,290
-----------------------
Earnings per ordinary share - cents
Basic 19.11 2.92 5.78
Diluted 19.05 2.92 5.75
=======================
Replacement Cost Results
Historical cost profit for the period 4,267 651 1,296
Stock holding (gains) losses net of
minority shareholders' interest (799) 174 (442)
-----------------------
Replacement cost profit for the period 3,468 825 854
Exceptional items (net of tax) (340) 872 70
-----------------------
Replacement cost profit before exceptional items 3,128 1,697 924
-----------------------
Earnings per ordinary share - cents
On replacement cost profit before exceptional items 14.01 7.58 4.12
=======================
Summarized Group Balance Sheet
31 March 31 December
2003 2002
=====================
$ million
Fixed assets
Intangible assets 14,190 15,566
Tangible assets 88,223 87,682
Investments 10,248 10,811
---------------------
112,661 114,059
---------------------
Current assets
Stocks 9,874 10,181
Debtors 39,058 33,150
Investments 228 215
Cash at bank and in hand 1,151 1,520
---------------------
50,311 45,066
Creditors - amounts falling due within one year
Finance debt 6,400 10,086
Other creditors 40,614 36,215
---------------------
Net current assets (liabilities) 3,297 (1,235)
---------------------
Total assets less current liabilities 115,958 112,824
Creditors - amounts falling due
after more than one year
Finance debt 12,642 11,922
Other creditors 3,411 3,455
Provisions for liabilities and charges
Deferred taxation 13,686 13,514
Other provisions 14,096 13,886
---------------------
Net assets 72,123 70,047
Minority shareholders' interest - equity 1,047 638
---------------------
BP shareholders' interest 71,076 69,409
=====================
Movement in BP shareholders' interest: $ million
At 31 December 2002 69,409
Profit for the period 4,267
Distribution to shareholders (1,386)
Currency translation differences (net of tax) (282)
Issue of ordinary share capital for employee share schemes 67
Repurchase of ordinary share capital (999)
------
At 31 March 2003 71,076
======
Summarized Group Cash Flow Statement
First Fourth First
Quarter Quarter Quarter
2003 2002 2002
=======================
$ million
Net cash inflow from operating activities (a) 5,961 6,197 3,636
-----------------------
Dividends from joint ventures 13 69 83
-----------------------
Dividends from associated undertakings 55 65 53
-----------------------
Servicing of finance and returns on investments
Interest received 31 63 48
Interest paid (207) (335) (309)
Dividends received 6 38 2
Dividends paid to minority shareholders (2) (11) (13)
-----------------------
Net cash outflow from servicing of
finance and returns on investments (172) (245) (272)
-----------------------
Taxation
UK corporation tax (312) (419) (187)
Overseas tax (320) (642) (258)
-----------------------
Tax paid (632) (1,061) (445)
-----------------------
Capital expenditure and financial investment
Payments for fixed assets (2,877) (3,544) (2,799)
Proceeds from the sale of fixed assets 2,317 726 317
-----------------------
Net cash outflow for capital expenditure and
financial investment (560) (2,818) (2,482)
-----------------------
Acquisitions and disposals
Investments in associated undertakings (186) (215) (143)
Acquisitions, net of cash acquired - (28) (1,550)
Net investment in joint ventures (14) (217) (46)
Proceeds from the sale of businesses 160 304 31
-----------------------
Net cash outflow for acquisitions and disposals (40) (156) (1,708)
-----------------------
Equity dividends paid (1,397) (1,340) (1,288)
-----------------------
Net cash inflow (outflow) 3,228 711 (2,423)
=======================
Financing (b) 3,593 304 (2,283)
Management of liquid resources 13 (56) (165)
(Decrease) increase in cash (378) 463 25
-----------------------
3,228 711 (2,423)
=======================
Analysis of Cash Flow
First Fourth First
Quarter Quarter Quarter
2003 2002 2002
=======================
$ million
(a) Reconciliation of historical cost profit
before interest and tax to net cash inflow
from operating activities
Historical cost profit before interest and tax 6,318 2,114 2,422
Depreciation and amounts provided 2,709 2,515 2,153
Exploration expenditure written off 50 124 59
Share of profits of joint ventures
and associated undertakings (304) (250) (256)
Interest and other income (48) (115) (63)
(Profit) loss on sale of fixed
assets and businesses (394) 895 109
Charge for provisions 202 451 169
Utilization of provisions (228) (424) (238)
Decrease (increase) in stocks 376 (63) (496)
Increase in debtors (6,935) (269) (410)
Increase in creditors 4,215 1,219 187
-----------------------
Net cash inflow from operating activities 5,961 6,197 3,636
=======================
(b) Financing
Long-term borrowing (1,015) (651) (1,746)
Repayments of long-term borrowing 403 905 234
Short-term borrowing (626) (3,970) (3,499)
Repayments of short-term borrowing 3,899 4,037 2,819
-----------------------
2,661 321 (2,192)
Issue of ordinary share capital
for employee share schemes (67) (17) (91)
Repurchase of ordinary share capital 999 - -
-----------------------
Net cash outflow (inflow) from financing 3,593 304 (2,283)
=======================
Capital Expenditure and Acquisitions
First Fourth First
Quarter Quarter Quarter
2003 2002 2002
=======================
$ million
By business
Exploration and Production
UK 196 177 261
Rest of Europe 51 73 71
USA 966 1,079 1,167
Rest of World 924 1,244 814
-----------------------
2,137 2,573 2,313
-----------------------
Gas, Power and Renewables
UK 8 - 16
Rest of Europe 15 41 4
USA 38 60 16
Rest of World 7 22 10
-----------------------
68 123 46
-----------------------
Refining and Marketing
UK 73 163 76
Rest of Europe(a) 104 273 2,732
USA 336 430 303
Rest of World 24 180 26
-----------------------
537 1,046 3,137
-----------------------
Chemicals
UK - 57 8
Rest of Europe 31 10 45
USA 46 116 42
Rest of World 19 102 93
-----------------------
96 285 188
-----------------------
Other businesses and corporate 36 61 52
-----------------------
2,874 4,088 5,736
=======================
By geographical area
UK 301 434 409
Rest of Europe 202 398 2,852
USA 1,396 1,708 1,531
Rest of World 975 1,548 944
-----------------------
2,874 4,088 5,736
=======================
(a) 1Q 2002 included the acquisition of 51% of Veba.
US dollar/Sterling exchange rates
Average rate for the period 1.60 1.57 1.43
Period-end rate 1.57 1.60 1.42
=======================
Analysis of Replacement Cost Operating Profit
First Fourth First
Quarter Quarter Quarter
2003 2002 2002
=======================
$ million
By business
Exploration and Production
UK 1,134 965 727
Rest of Europe 193 177 152
USA 1,805 1,081 322
Rest of World 1,194 1,025 727
-----------------------
4,326 3,248 1,928
-----------------------
Gas, Power and Renewables
UK 3 (31) 2
Rest of Europe (9) 1 47
USA 36 9 (25)
Rest of World 164 93 87
-----------------------
194 72 111
-----------------------
Refining and Marketing
UK 26 (155) (124)
Rest of Europe 337 (53) 139
USA 97 80 (79)
Rest of World 171 92 132
-----------------------
631 (36) 68
-----------------------
Chemicals
UK (34) (47) (31)
Rest of Europe 88 65 47
USA 42 37 23
Rest of World 43 49 37
-----------------------
139 104 76
-----------------------
Other businesses and corporate (165) (207) (125)
-----------------------
5,125 3,181 2,058
=======================
By geographical area
UK 1,053 793 530
Rest of Europe 602 171 386
USA 1,882 957 158
Rest of World 1,588 1,260 984
-----------------------
5,125 3,181 2,058
=======================
Included above:
Share of profits of joint ventures 117 83 70
Share of profits of associated undertakings 180 161 188
-----------------------
297 244 258
=======================
Notes
1. Turnover
First Fourth First
Quarter Quarter Quarter
2003 2002 2002
========================
$ million
By business
Exploration and Production 9,068 7,356 5,638
Gas, Power and Renewables 17,998 12,041 7,768
Refining and Marketing 41,435 33,443 24,889
Chemicals 3,938 3,118 2,642
Other businesses and corporate 111 131 135
------------------------
72,550 56,089 41,072
Less: sales between businesses 8,762 6,367 4,782
------------------------
Group excluding JVs 63,788 49,722 36,290
Share of sales by joint ventures 398 413 279
------------------------
64,186 50,135 36,569
========================
By geographical area
Group excluding JVs
UK 15,427 13,084 10,995
Rest of Europe 13,022 11,720 9,119
USA 31,098 22,573 15,265
Rest of World 13,736 10,845 6,984
------------------------
73,283 58,222 42,363
Less: sales between areas 9,495 8,500 6,073
------------------------
63,788 49,722 36,290
------------------------
Notes
2. Operating profits are after charging:
First Fourth First
Quarter Quarter Quarter
2003 2002 2002
=======================
$ million
Exploration expense
UK 3 1 6
Rest of Europe 4 6 23
USA 37 30 42
Rest of World 68 142 53
-----------------------
112 179 124
=======================
Production taxes (a)
UK petroleum revenue tax 133 64 63
Overseas production taxes 371 298 184
-----------------------
504 362 247
=======================
(a) 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
Exploration and Production 433 (1,133) 5
Gas, Power and Renewables - (33) -
Refining and Marketing (52) 365 (45)
Chemicals 7 (122) (60)
Other businesses and corporate 6 30 (9)
-----------------------
Profit (loss) on sale of fixed assets and
businesses or termination of operations 394 (893) (109)
Taxation (charge) credit (54) 21 39
-----------------------
Exceptional items after taxation 340 (872) (70)
=======================
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)
First Fourth First
Quarter Quarter Quarter
2003 2002 2002
=======================
$ million
Exploration and Production 6 (2) 3
Gas, Power and Renewables 27 41 4
Refining and Marketing 620 (201) 495
Chemicals 146 (12) (29)
-----------------------
799 (174) 473
Minority shareholders' interest - - 31
-----------------------
799 (174) 442
=======================
6. Interest expense
Group interest payable(a) 187 248 267
Capitalized (34) (33) (15)
-----------------------
153 215 252
Joint ventures 13 14 14
Associated undertakings 10 19 24
Unwinding of discount on provisions 44 42 43
Change in discount rate for provisions - 42 -
-----------------------
220 332 333
=======================
(a) Includes charges relating to the
early redemption of debt. - 15 -
-----------------------
7. Charge for taxation
Current 1,581 1,112 533
Deferred 224 13 220
-----------------------
1,805 1,125 753
=======================
UK 485 366 189
Overseas 1,320 759 564
-----------------------
1,805 1,125 753
=======================
Notes
8. Analysis of changes in net debt
First Fourth First
Quarter Quarter Quarter
2003 2002 2002
=======================
$ million
Opening balance
Finance debt 22,008 22,276 21,417
Less: Cash 1,520 1,005 1,358
Current asset investments 215 285 450
-----------------------
Opening net debt 20,273 20,986 19,609
-----------------------
Closing balance
Finance debt 19,042 22,008 24,531
Less: Cash 1,151 1,520 1,379
Current asset investments 228 215 286
-----------------------
Closing net debt 17,663 20,273 22,866
-----------------------
Decrease (increase) in net debt 2,610 713 (3,257)
=======================
Movement in cash/bank overdrafts (378) 463 25
Increase(decrease) in current asset investments 13 (56) (165)
Net cash outflow (inflow) from financing
(excluding share capital) 2,661 321 (2,192)
Exchange of Exchangeable Bonds for
Lukoil American Depositary Shares 420 - -
Other movements 64 19 25
Debt acquired - (3) (999)
-----------------------
Movement in net debt before exchange effects 2,780 744 (3,306)
Exchange adjustments (170) (31) 49
-----------------------
Decrease (increase) in net debt 2,610 713 (3,257)
=======================
Notes
9. Consolidated statement of cash flows presented on a US GAAP format
First Fourth First
Quarter Quarter Quarter
2003 2002 2002
=======================
$ million
Operating activities
Profit after taxation 4,293 657 1,336
Adjustments to reconcile profits
after tax to net cash provided by
operating activities:
Depreciation and amounts provided 2,709 2,515 2,153
Exploration expenditure written off 50 124 59
Share of profit of joint ventures
and associates less dividends received (148) (8) (17)
(Profit) loss on sale of
businesses and fixed assets (394) 895 109
Working capital movement (see analysis below) (1,475) 907 (669)
Deferred taxation 224 13 220
Other 2 (33) (108)
-----------------------
Net cash provided by operating activities 5,261 5,070 3,083
-----------------------
Investing activities
Capital expenditures (2,911) (3,577) (2,814)
Acquisitions, net of cash acquired - (28) (1,550)
Investment in associated undertakings (186) (215) (143)
Net investment in joint ventures (14) (217) (46)
Proceeds from disposal of assets 2,477 1,030 348
-----------------------
Net cash used in investing activities (634) (3,007) (4,205)
-----------------------
Notes
9. Consolidated statement of cash flows presented on a US GAAP format
(continued)
First Fourth First
Quarter Quarter Quarter
2003 2002 2002
=======================
$ million
Financing activities
Net proceeds from shares issued (repurchased) (932) 17 91
Proceeds from long-term financing 1,015 651 1,746
Repayments of long-term financing (403) (905) (234)
Net increase (decrease) in short-term debt (3,273) (67) 680
Dividends paid - BP shareholders (1,397) (1,340) (1,288)
- Minority shareholders (2) (11) (13)
-----------------------
Net cash used in financing activities (4,992) (1,655) (982)
-----------------------
Currency translation differences
relating to cash and cash equivalents 9 37 (3)
-----------------------
(Decrease) increase in cash
and cash equivalents (356) 445 (143)
-----------------------
Cash and cash equivalents
at beginning of period 1,735 1,290 1,808
-----------------------
Cash and cash equivalents
at end of period 1,379 1,735 1,665
-----------------------
Analysis of working capital movement
Decrease (increase) in stocks 376 (63) (496)
Increase in debtors (6,946) (271) (443)
Increase in creditors 5,095 1,241 270
-----------------------
Total working capital movement (1,475) 907 (669)
=======================
Notes
10. Ordinary shares
First Fourth First
Quarter Quarter Quarter
2003 2002 2002
====================================
shares thousand
Shares in issue at period end (a) 22,241,895 22,378,651 22,456,493
Average number of shares
Outstanding (b) 22,326,486 22,351,122 22,402,868
(a) Each BP ADS represents six BP Ordinary Shares.
(b) Excludes shares held by the Employee Share Ownership Plan.
11. Statutory accounts
The financial information shown in this publication is unaudited and
does not constitute statutory accounts. The 2002 Annual Report and
Accounts were approved by a duly appointed and authorized committee of
the Board of Directors on 11 February 2003, but have not yet been
delivered to the UK Registrar of Companies; the report of the auditors
on those accounts was unqualified.
Contacts
London New York
------------------- ---------------
Press Office Roddy Kennedy Ian Fowler
+44 (0)20 7496 4624 +1 212 451 8008
Investor Relations Fergus MacLeod Terry LaMore
+44 (0)20 7496 4717 +1 212 451 8034
http://www.bp.com/investors
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