SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
for the period ended 8 February 2005
BP p.l.c.
(Translation of registrant's name into English)
1 ST JAMES'S SQUARE, LONDON, SW1Y 4PD, ENGLAND
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F |X| Form 40-F
--------------- ----------------
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes No |X|
--------------- ----------------
BP p.l.c.
Group Results
4th Quarter and Full Year 2004
London 8 February 2005
FOR IMMEDIATE RELEASE
RECORD ANNUAL RESULT AND STRONG CASH FLOW
FOURTH QUARTERLY DIVIDEND INCREASED 26% ON A YEAR AGO
---------------------------------------------------------------------------
Fourth Third Fourth
Quarter Quarter Quarter Year
2003 2004 2004 $ million 2004 2003 %
======================= ====================
Replacement cost profit
2,250 3,456 3,028 for the period (a) 14,088 10,466
637 481 618 Acquisition amortization(b) 2,120 2,392
----------------------- --------------------
2,887 3,937 3,646 Pro forma result 16,208 12,858 26
======================= ====================
13.07 18.17 16.89 - per ordinary share (cents) 74.27 57.99 28
0.78 1.09 1.02 - per ADS (dollars) 4.46 3.48
7.68 9.99 9.05 - per ordinary share (pence) 40.58 35.58 14
======================= ====================
6.75 7.10 8.50 Dividend per share (cents) 29.45 26.00 13
0.41 0.43 0.51 Dividend per ADS (dollars) 1.77 1.56
3.674 3.910 4.522 Dividend per share (pence) 16.099 15.517 4
======================= ====================
o BP's fourth quarter pro forma result was $3,646 million, compared with
$2,887 million a year ago, an increase of 26%. For the year, the result
was $16,208 million compared with $12,858 million, up 26%. Replacement
cost profit for the fourth quarter and year was $3,028 million and
$14,088 million respectively, compared with $2,250 million and
$10,466 million a year ago.
o The fourth quarter result includes net exceptional and non-operating
charges of $1,127 million compared with a net gain of $204 million in
the fourth quarter of 2003.
o The fourth quarter trading environment was stronger than a year ago,
with higher oil and gas realizations and higher refining, marketing and
chemicals margins.
o Net cash outflow for the quarter was $1.0 billion and net cash inflow
for the year was $6.0 billion, compared with an outflow of $1.8 billion
and an inflow of $1.4 billion a year ago. Net cash inflow from
operating activities for the quarter and year was $7.0 billion and
$28.6 billion respectively, compared with $3.5 billion and
$21.7 billion a year ago. Strong annual cash flow has enabled
significant share buy-backs.
o The pro forma ratio of net debt to net debt plus equity was 24% at the
end of the quarter.
o Return on average capital employed for the quarter and year
respectively, on a pro forma basis, was 17.4% and 19.6%, compared with
15.5% and 17.8% a year ago. The cash return for the quarter was 39%
compared with 28% a year ago, and for the year was 35% compared with
31% a year ago.
o The quarterly dividend is 8.50 cents per share ($0.51 per ADS). This
compares with 6.75 cents per share a year ago. For the year the
dividend showed an increase of 13%. In sterling terms, the quarterly
dividend is 4.522 pence per share compared with 3.674 pence a year ago;
for the year the dividend showed an increase of 4%. During the year,
the company repurchased for cancellation 827 million of its own shares,
at a cost of $7.5 billion.
BP Group Chief Executive, Lord Browne, said:
"Against the backdrop of strong oil demand, we have had a very successful
year both operationally and financially. Our strong cash flow is now reflecting
the results of our significant investment programme over the past few years and
improvements in underlying performance in line with strategy. As a result of the
strong cash flow we have been able to continue to invest for the future of the
company, we have made significant share buybacks and we have consistently
increased the dividend. In addition, our confidence in the future has enabled us
to make the step change in the dividend announced today."
The pro forma result has been derived from the group's reported UK GAAP
accounting information but is not in itself a recognized UK or US GAAP measure.
This financial performance information and measures derived therefrom, shown
above and elsewhere in the document, are provided in order to enable investors
to evaluate better BP's performance against that of its competitors. BP will
discontinue pro forma reporting at the time it adopts International Financial
Reporting Standards with effect from the first quarter of 2005.
(a) Replacement cost profit for the period includes the net profit or loss
on the sale of fixed assets and businesses or termination of
operations. It also includes non-operating items identified by the
group, primarily asset write-downs/impairment, environmental and other
provisions and restructuring, integration and rationalization costs.
These items do not meet the criteria to be classified as operating
exceptional items.
(b) Acquisition amortization is depreciation and amortization relating to
the fixed asset revaluation adjustments and goodwill consequent upon
the ARCO and Burmah Castrol acquisitions. The results for 2003 and 2004
include accelerated depreciation of the revaluation adjustment in
respect of the impairment of former ARCO assets.
Summary Fourth Quarter Results
Exploration and Production's record fourth quarter result was up 68% on a year
ago reflecting higher liquids and gas realizations and increased volumes, partly
offset by the impact of the weaker US dollar and higher costs.
The Refining and Marketing result was a record $1,799 million, an increase of
$1,268 million compared with a year ago. This was driven primarily by
significantly higher refining margins, higher marketing margins and an
exceptional gain, offset partly by charges related primarily to a review of
carrying values of fixed and current marketing assets.
The Petrochemicals result reflects exceptional and non-operating charges, higher
fixed costs and adverse foreign exchange impacts, offset partially by higher
margins and volumes.
In Gas, Power and Renewables, the improved result reflects a higher marketing
and trading result, a higher contribution from the natural gas liquids and solar
businesses and an exceptional gain.
Interest and other finance expense for the quarter was $315 million compared
with $235 million for the prior quarter. The increase relates primarily to an
increase in debt, higher interest rates and a revaluation of environmental and
other provisions at a lower discount rate.
The pro forma effective tax rate on replacement cost profit was 36.6%.
Capital expenditure, excluding acquisitions, was $4.6 billion for the quarter.
Total capital expenditure and acquisitions was $6.1 billion including the
acquisition of Solvay's interests in BP Solvay Polyethylene Europe and BP Solvay
Polyethylene North America. Disposal proceeds for the quarter were $1 billion.
Net debt at the end of the quarter was $21.6 billion. The pro forma ratio of net
debt to net debt plus equity was 24% at the end of the year compared with 22% at
the end of the third quarter.
During the fourth quarter, the company repurchased for cancellation 206 million
of its own shares, at a cost of $2 billion.
---------
The commentaries above and following are based on the pro forma replacement cost
results.
TNK-BP operational and financial information has been estimated.
BP Solvay ventures were consolidated with effect from 2 November 2004.
The financial information for 2003 has been restated to reflect (a) the transfer
of natural gas liquids (NGLs) operations from the Exploration and Production
segment to Gas, Power and Renewables on 1 January 2004; (b) the adoption by the
group of Financial Reporting Standard No. 17 'Retirement Benefits' (FRS 17) with
effect from 1 January 2004; and (c) the adoption by the group of Urgent Issues
Task Force Abstract No. 38 'Accounting for ESOP Trusts' with effect from 1
January 2004. For further information see Note 1.
Exceptional and Non-Operating Items
4Q 2004
------------------------------
Exceptional Non-Operating
$ million Items Items and UPIS(a)
------------------------------
Exploration and Production 32 (52)
Refining and Marketing 58 -
Petrochemicals (377) (1,149)
Gas, Power and Renewables 40 -
Other businesses and corporate (26) (29)
------------------------------
(273) (1,230)
Taxation 130 246(b)(c)
------------------------------
(143) (984)
==============================
(a) Charges for environmental and other provisions have been classified as
non-operating items in 2004 and prior periods restated to conform with
this treatment.
(b) The Petrochemicals non-operating items, primarily impairment charges,
attract tax relief at a lower rate than described in note (c) below
(c) Tax on other non-operating items and Unrealized Profit in Stock (UPIS)
is calculated using the pro forma effective tax rate on replacement
cost profit, excluding exceptional items, of 34.3%.
Reconciliation of Reported Results to Pro Forma Results
Pro Forma Result ----- 4Q 2004 ----- Pro Forma Result
-------------------
4Q 3Q 4Q Acq. Reported Year
2003 2004 2004 Amort+ Earnings* $ million 2004 2003
======================================= ==============
Exploration and
3,274 5,144 5,489 396 5,093 Production 19,759 16,232
Refining and
531 1,301 1,799 222 1,577 Marketing 5,603 3,144
41 188 (1,271) - (1,271) Petrochemicals (900) 568
Gas, Power
86 130 399 - 399 and Renewables 943 570
Other businesses
465 (424) (227) - (227) and corporate 314 (184)
--------------------------------------- --------------
RC profit before
4,397 6,339 6,189 618 5,571 interest and tax 25,719 20,330
---------------------------------------- --------------
Interest and Other
(312) (235) (315) - (315) finance expense (999) (1,191)
(1,157)(2,109)(2,152) - (2,152) Taxation (8,282) (6,111)
(41) (58) (76) - (76) MSI (230) (170)
---------------------------------------- --------------
2,887 3,937 3,646 618 3,028 RC profit 16,208 12,858
---------------------------------------- --------------
(494) Stock holding gains (losses)
-----
2,534 HC profit
=====
* Replacement cost profit for the period includes the net profit or loss on
the sale of fixed assets and businesses or termination of operations. It
also includes non-operating items identified by the group, primarily asset
write-downs/impairment, environmental and other provisions and
restructuring, integration and rationalization costs. These items do not
meet the criteria to be classified as operating exceptional items.
+ Acquisition amortization is depreciation and amortization relating to the
fixed asset revaluation adjustments and goodwill consequent upon the ARCO
and Burmah Castrol acquisitions. The results for 2003 and 2004 include
accelerated depreciation of the revaluation adjustment in respect of the
impairment of former ARCO assets.
Operating Results and Per Share Amounts
Fourth Third Fourth
Quarter Quarter Quarter Year
2003 2004 2004 2004 2003
================================ =====================
Replacement cost
Profit before
3,760 5,858 5,571 interest and tax ($m) 23,599 17,938
-------------------------------- ---------------------
Results for the
period ($m)
2,887 3,937 3,646 Pro forma result 16,208 12,858
2,250 3,456 3,028 Replacement cost profit 14,088 10,466
2,334 4,483 2,534 Historical cost profit 15,731 10,482
-------------------------------- ---------------------
Shares in issue at
22,122,610 21,713,966 21,525,978 period end (thousand)21,525,978 22,122,610
- ADS equivalent
3,687,102 3,618,994 3,587,663 (thousand) 3,587,663 3,687,102
Average number of
shares outstanding
22,103,542 21,683,963 21,607,872 (thousand) 21,820,535 22,170,741
- ADS equivalent
3,683,924 3,613,994 3,601,312 (thousand) 3,636,756 3,695,124
Per ordinary share
(cents)
13.07 18.17 16.89 Pro forma result 74.27 57.99
RC profit
10.18 15.96 14.03 for the period 64.55 47.20
HC profit
10.56 20.67 11.80 for the period 72.08 47.27
Per ADS (cents)
78.42 109.02 101.34 Pro forma result 445.62 347.94
RC profit
61.08 95.76 84.18 for the period 387.30 283.20
HC profit
63.36 124.02 70.80 for the period 432.48 283.62
-------------------------------- ---------------------
Exploration and Production
4Q 3Q 4Q Year
2003 2004 2004 $ million 2004 2003
================= ==============
Replacement cost profit
2,848 4,883 5,093 before interest and tax 18,520 14,666
426 261 396 Acquisition amortization 1,239 1,566
----------------- --------------
Pro forma replacement cost result
3,274 5,144 5,489 before interest and tax 19,759 16,232
================= ==============
Results include:
(308) (7) (117) Asset write-downs/impairment (407) (357)
- - - Environmental and other provisions - -
Restructuring, integration and
(15) - - rationalization costs - (117)
- (35) 8 Other (27) -
(57) (95) 57 Unrealized profit in stock (UPIS) (191) (61)
----------------- --------------
(380) (137) (52) Total non-operating items and UPIS (625) (535)
(49) 23 32 Exceptional items 152 913
================= ==============
Total non-operating items, UPIS
(429) (114) (20) and exceptional items (473) 378
================= ==============
193 135 258 Exploration expense 637 542
Of which:
129 34 151 Exploration expenditure written off 274 297
----------------- --------------
Production (Net of Royalties)
2,248 2,298 2,396 Crude oil (mb/d) 2,340 1,911
206 181 197 Natural gas liquids (mb/d) 191 210
2,454 2,479 2,593 Total liquids (mb/d)(a) 2,531 2,121
8,600 8,275 8,714 Natural gas (mmcf/d) 8,503 8,613
3,936 3,906 4,095 Total hydrocarbons (mboe/d)(b) 3,997 3,606
================= ==============
Average realizations
28.18 39.43 41.01 Crude oil ($/bbl) 36.45 28.23
20.15 28.77 31.20 Natural gas liquids ($/bbl) 26.75 19.26
27.30 38.29 39.88 Total liquids ($/bbl) 35.39 27.25
3.18 3.66 4.28 Natural gas ($/mcf) 3.86 3.39
23.15 30.08 32.64 Total hydrocarbons ($/bbl) 29.20 23.69
================= ==============
Average oil marker prices
($/bbl)
29.43 41.54 43.85 Brent 38.27 28.83
31.15 43.88 48.29 West Texas Intermediate 41.49 31.06
29.43 41.82 42.62 Alaska North Slope US West Coast 38.96 29.59
================= ==============
Average natural gas marker prices
4.58 5.75 7.07 Henry Hub gas price ($/mmbtu)(c) 6.13 5.37
UK Gas - National
27.30 23.63 28.51 Balancing Point (p/therm) 24.39 20.28
================= ==============
(a) Crude oil and natural gas liquids.
(b) Natural gas is converted to oil equivalent at 5.8 billion cubic feet =
1 million barrels.
(c) Henry Hub First of the Month Index.
Exploration and Production
The pro forma replacement cost result before interest and tax for the fourth
quarter was $5,489 million, a record result, up 68% from the fourth quarter of
2003. The primary drivers for the change are the higher realizations in both
liquids and gas and increased volumes partly offset by the impact of the weaker
US dollar and higher costs. This quarter benefited from an exceptional gain of
$32 million. The corresponding quarter in 2003 contained exceptional losses of
$49 million.
Included in the results for the quarter was a net non-operating charge totalling
$109 million. This charge primarily results from impairments of fields in the
deepwater Gulf of Mexico and US Onshore.
The fourth quarter result also includes a credit of $57 million, reflecting a
decrease in the provision for Unrealized Profit in Stock (UPIS), which removes
the upstream margin from downstream inventories. This compares with a charge of
$57 million in the equivalent quarter of last year.
The full year result of $19,759 million is a record, up $3,527 million on a year
ago, reflecting the higher realizations combined with increased volumes.
Production for the quarter was up over 4% to 4,095 mboe/d compared with a year
ago. This reflects the continuing ramp-up of production in the New Profit
Centres and increased volumes from TNK-BP. This is partly offset by decline in
our Existing Profit Centres. Total production for the year was 3,997 mboe/d, an
increase of more than 10% over the prior year. Our expectation for 2005, based
on our $20/bbl planning basis, is that production will be between 4.1 and 4.2
million barrels of oil equivalent per day before any acquisitions or
divestments.
Projects in the New Profit Centres remain on track. In the Gulf of Mexico, the
Holstein and Mad Dog projects achieved first production in December 2004 and
January 2005 respectively. In Indonesia, we approved our share of the investment
in the Tangguh gas project and in Angola we approved the Rosa project. In
Azerbaijan, construction of the Azeri project and the BTC pipeline is on track.
In the UK, construction of the Clair platform has been completed and the project
is on track to commence production in the first quarter of 2005.
In the fourth quarter we had further exploration success in Trinidad with the
Chachalaca well.
BP's proved reserve replacement ratio, on a UK GAAP/SORP basis, was 106% in
respect of subsidiaries, 118% for equity-accounted entities and 110% on a
combined basis. The proved reserve replacement has exceeded production for the
twelfth consecutive year.
BP has also calculated its reserve replacement ratio on a US GAAP/SEC basis
which requires the use of year-end prices. On this basis, the proved reserve
replacement ratio for subsidiaries was 78%, for equity-accounted entities was
114% and was 89% on a combined basis. The lower US GAAP/SEC replacement ratio
for subsidiaries was primarily a result of the impact of higher 2004 year-end
prices versus our planning prices on reserves in production sharing contracts
(PSCs). In fields subject to PSCs our reserves entitlement is based on volumes
required to recover agreed costs and an agreed percentage of the remaining
volumes. Applying higher year end prices to reserves in PSCs has the effect of
decreasing the volume required to recover the agreed costs. These effects
considerably outweigh any increases in tax and royalty regimes arising from
fields having a longer economic life.
All our proved reserve replacement ratios represent bookings through
discoveries, extensions, revisions and improved recovery and exclude the impact
of acquisitions and divestments.
During the quarter we completed our divestments of certain properties in the
Gulf of Mexico and the North Sea and in Australia we sold 5.3% of our reserves
in the North West Shelf to the China National Offshore Oil Company, resulting in
total exceptional gains in the quarter of $32 million.
Customer Facing Segments
Refining and Marketing
4Q 3Q 4Q Year
2003 2004 2004 $ million 2004 2003
======================= =============
Replacement cost profit
320 1,081 1,577 before interest and tax 4,722 2,318
211 220 222 Acquisition amortization 881 826
----------------------- -------------
Pro forma replacement cost result
531 1,301 1,799 before interest and tax 5,603 3,144
======================= =============
Results include:
- - - Asset write-downs/impairment - -
- (206) - Environmental and other provisions (206) (369)
Restructuring, integration and
(156) - - rationalization costs - (287)
10 - - Other - 10
----------------------- -------------
(146) (206) - Total non-operating items (206) (646)
(91) (17) 58 Exceptional items (117) (213)
======================= =============
Total non-operating and
(237) (223) 58 exceptional items (323) (859)
======================= =============
Refinery throughputs (mb/d)
389 410 420 UK 407 397
873 882 781 Rest of Europe 854 932
1,374 1,417 1,436 USA 1,373 1,386
378 296 296 Rest of World 342 382
----------------------- -------------
3,014 3,005 2,933 Total throughput 2,976 3,097
======================= =============
94.9 94.9 96.6 Refining availability 95.4 95.5
======================= =============
Oil sales volumes (kb/d)
Refined products
257 334 335 UK 322 271
1,290 1,406 1,363 Rest of Europe 1,360 1,311
1,761 1,696 1,664 USA 1,682 1,767
658 621 627 Rest of World 638 620
----------------------- --------------
3,966 4,057 3,989 Total marketing sales 4,002 3,969
2,609 2,627 2,194 Trading/supply sales 2,396 2,719
----------------------- --------------
6,575 6,684 6,183 Total refined product sales 6,398 6,688
3,985 3,679 3,731 Crude oil 3,808 3,837
----------------------- --------------
10,560 10,363 9,914 Total oil sales 10,206 10,525
======================= ==============
Global Indicator Refining Margin(a)
($/bbl)
2.21 4.37 4.72 NWE 4.28 2.62
3.53 6.99 5.52 USGC 7.15 4.71
2.89 5.01 1.65 Midwest 5.08 4.54
6.09 11.28 10.36 USWC 11.27 7.06
2.20 5.48 8.02 Singapore 4.94 1.77
3.14 6.20 5.60 BP Average 6.08 3.88
======================= ==============
(a) The Global Indicator Refining Margin (GIM) is the average of six
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.
Customer Facing Segments
Refining and Marketing
The pro forma replacement cost results before interest and tax for the fourth
quarter and the year were records of $1,799 million and $5,603 million
respectively, compared with $531 million and $3,144 million respectively for the
equivalent periods in 2003.
The improvement in the fourth quarter compared with a year ago was driven
primarily by significantly higher refining margins, higher marketing margins and
an exceptional gain in the quarter compared with net non-operating and
exceptional charges in the equivalent quarter of 2003. The improvement was
offset partly by charges of $310 million, related primarily to a review of
carrying values of fixed and current marketing assets (this is not classified as
a non-operating item). The year-on-year increase in BP's realized refining
margins in the quarter was higher than that suggested by the increase in the
Global Indicator Margin due to the combination of wider light/heavy spreads,
higher clean fuels premia, locational advantages and greater supply optimization
benefits. Marketing margins were stronger than in the equivalent period in 2003
assisted by the fall in crude and product prices late in the quarter. The
exceptional gain related primarily to the Cushing to Chicago Pipeline disposal
in the US.
The improvement in the result for the year compared with a year ago was
attributable to stronger refining margins due to the factors outlined above and
lower net non-operating and exceptional charges of $323 million compared with
$859 million a year ago. The improvement was offset by significantly lower
marketing margins, despite the improvement in the fourth quarter, the impact of
the weaker US dollar and the charges in 2004 related primarily to a review of
carrying values of fixed and current marketing assets.
Refining throughputs for the quarter were 2,933 mb/d, some 81 mb/d lower than in
the fourth quarter of 2003, due principally to the disposal of BP's interests in
the Singapore Refining Company Private Limited and the closure of refining
operations at the ATAS Refinery in Mersin, south eastern Turkey earlier in 2004.
The quarter's refining availability was 96.6%. Marketing sales in the fourth
quarter were 3,989 kb/d, a similar level to the equivalent quarter a year ago.
During the quarter BP China and Sinopec announced the establishment of the
BP-Sinopec (Zhejiang) Petroleum Co., Ltd, a retail joint venture between BP and
Sinopec, to build, operate and manage a network of 500 service stations in
Hangzhou, Ningbo and Shaoxing. Also during the quarter BP China and PetroChina
announced the establishment of BP-PetroChina Petroleum Company Limited, to
acquire, build, operate and manage 500 service stations in the province. BP
continued its strategic progress in the development of premium offers. This
included the opening of 101 new format Connect stores by the end of the quarter,
bringing the total worldwide to 576. The group also continued its roll-out of
new generation Ultimate gasoline and diesel fuels, now available in the UK,
Germany, Austria, Spain, Portugal, Greece, France, Poland, Australia and the US.
From 1 January 2005, the Aromatics and Acetyls business will be included in the
segment and the Lavera and Grangemouth refineries will be included in the
Olefins and Derivatives business, which will be reported as part of Other
businesses and corporate.
Customer Facing Segments
Petrochemicals
4Q 3Q 4Q Year
2003 2004 2004 $ million 2004 2003
======================= =============
Replacement cost profit
41 188 (1,271) before interest and tax (900) 568
- - - Acquisition amortization - -
----------------------- -------------
Pro forma replacement cost result
41 188 (1,271) before interest and tax (900) 568
======================= =============
Results include:
- - (1,110) Asset write-downs/impairment (1,110) -
- (58) - Environmental and other provisions (58) (20)
Restructuring, integration and
- - (39) rationalization costs (39) 5
- - - Other - (36)
----------------------- -------------
- (58) (1,149) Total non-operating items (1,207) (51)
16 (38) (377) Exceptional items (563) 38
======================= =============
Total non-operating and
16 (96) (1,526) exceptional items (1,770) (13)
======================= =============
109 138 166(b)Chemicals Indicator Margin(a)($/te) 140(b) 112
======================= =============
Petrochemicals production (kte)
832 728 904 UK 3,328 3,186
2,790 2,724 2,812 Rest of Europe 10,990 10,958
2,398 2,600 2,547 USA 10,204 9,797
1,133 1,097 1,101 Rest of World 4,405 4,002
----------------------- --------------
7,153 7,149 7,364 Total production 28,927 27,943
======================= ==============
(a) The Chemicals Indicator Margin (CIM) is a weighted average of
externally-based product margins. It is based on market data collected
by Nexant in their quarterly market analyses, then weighted based on
BP's product portfolio. It does not cover our entire portfolio of
products, and consequently is only indicative of the margins achieved by
BP in any particular period.
(b) Provisional. The data for the fourth quarter is based on two months'
actuals and one month of provisional data.
Petrochemicals' pro forma replacement cost results before interest and tax for
the fourth quarter and year were a loss of $1,271 million and $900 million
respectively, down by $1,312 million and $1,468 million respectively compared
with the equivalent periods a year ago. The decreases were due to exceptional
charges reflecting business exits and the closure of facilities, and
non-operating charges in respect of asset impairments, together with higher
fixed costs and adverse foreign exchange impacts. Partially offseting these
impacts were higher margins and volumes. The fourth quarter result was $1,459
million lower than the third quarter due to higher exceptional and non-operating
charges, higher fixed costs, including a number of non-routine charges, and
adverse foreign exchange impacts, offset partially by higher margins and
volumes.
Production for the fourth quarter and the year was a record, at 7,364 thousand
tonnes and 28,927 thousand tonnes respectively, an increase of 3% and 4%
respectively. Improved production was due to higher asset utilization and
increased Asian PTA capacity during the year, with additional High Density
Polyethylene capacity in the fourth quarter from the acquisition of the BP
Solvay ventures.
During the quarter we have continued to implement plans to consolidate the
Olefins and Derivatives business into a separate entity to operate as a
stand-alone business within the BP Group and have announced that Grangemouth and
Lavera refineries will be included in that entity. We have completed the
acquisition of Solvay's interests in the BP Solvay High Density Polyethylene
ventures and have reached agreement in principle with Nova Chemicals Corporation
to combine our respective European Styrene Polymer interests within a joint
venture. As part of restructuring efforts we also announced the closure of
plants at Pasadena in Texas, and at Grangemouth and Hull in the UK.
Customer Facing Segments
Gas, Power and Renewables
4Q 3Q 4Q Year
2003 2004 2004 $ million 2004 2003
====================== ==============
Replacement cost profit
86 130 399 before interest and tax 943 570
- - - Acquisition amortization - -
---------------------- --------------
Pro forma replacement cost result
86 130 399 before interest and tax 943 570
====================== ==============
Results include:
- - - Asset write-downs/impairment - -
- - - Environmental and other provisions - -
Restructuring, integration and
- - - rationalization costs - -
- - - Other - -
---------------------- --------------
- - - Total non-operating items - -
(10) 16 40 Exceptional items 56 (6)
====================== ==============
Total non-operating and
(10) 16 40 exceptional items 56 (6)
====================== ==============
Gas sales volumes (mmcf/d)
5,956 4,463 3,456 UK 4,679 6,801
511 485 449 Rest of Europe 411 441
12,121 13,585 13,852 USA 13,384 11,528
13,138 13,250 13,659 Rest of World 13,216 11,669
---------------------- --------------
31,726 31,783 31,416 Total gas sales volumes 31,690 30,439
======================= ==============
NGL sales volumes (mb/d)
2 9 11 UK 8 3
- 7 12 Rest of Europe 6 -
400 358 421 USA 393 329
234 161 240 Rest of World 203 205
----------------------- --------------
636 535 684 Total NGL sales volumes 610 537
======================= ==============
The pro forma replacement cost result before interest and tax for the fourth
quarter was $399 million compared with $86 million a year ago. The improved
result is due to a higher marketing and trading result, a higher contribution
from the natural gas liquids and solar businesses and an exceptional gain from
the disposal of BP's interest in an NGL plant in Canada.
The result for the year was $943 million compared with $570 million a year ago.
The improvement is due principally to a higher contribution from the natural gas
liquids and solar businesses and exceptional gains from the disposals of BP's
interests in two NGL plants in Canada.
Other Businesses and Corporate
4Q 3Q 4Q Year
2003 2004 2004 $ million 2004 2003
====================== =============
Replacement cost profit (loss)
465 (424) (227) before interest and tax 314 (184)
- - - Acquisition amortization - -
---------------------- -------------
Pro forma replacement cost result
465 (424) (227) before interest and tax 314 (184)
====================== =============
Results include:
- - (12) Asset write-downs/impairment (12) -
(81) (225) - Environmental and other provisions (225) (193)
Restructuring, integration and
- (19) (83) rationalization costs (102) -
585 - 66 Other 66 585
---------------------- --------------
504 (244) (29) Total non-operating items (273) 392
119 1 (26) Exceptional items 1,287 99
====================== ==============
Total non-operating
623 (243) (55) and exceptional items 1,014 491
====================== ==============
Other businesses and corporate comprises Finance, the group's coal asset
(divested in October 2003), the group's aluminium asset, its investments in
PetroChina and Sinopec (divested in January 2004), interest income and costs
relating to corporate activities. The fourth quarter result includes a net
charge of $55 million for non-operating charges and exceptional losses. This
primarily comprises a charge in respect of the separation of the Olefins and
Derivatives business partially offset by a credit primarily resulting from the
reversal of vacant space provisions in the UK and the US. In the first quarter,
BP sold its interest in PetroChina for $1.65 billion and its interest in Sinopec
for $0.7 billion. These interests were previously included in Other businesses
and corporate.
Dividends
4Q 3Q 4Q Year
2003 2004 2004 2004 2003
====================== ==============
Dividends per ordinary share
6.75 7.10 8.50 cents 29.45 26.00
3.674 3.910 4.522 pence 16.099 15.517
40.5 42.6 51.0 Dividends per ADS (cents) 176.70 156.0
----------------------- --------------
BP today announced a fourth quarterly dividend for 2004 of 8.50 cents per
ordinary share. Holders of ordinary shares will receive 4.522 pence per share
and holders of American Depositary Receipts (ADRs) $0.51 per ADS share. The
dividend is payable on 14 March to shareholders on the register on 18 February.
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 14 March. The first quarter 2005 results and dividend will be announced on 26
April 2005.
Outlook
BP Group Chief Executive, Lord Browne, concluded:
"World economic growth was sustained into the fourth quarter of 2004,
completing a year of strong growth. The current outlook is for a
moderation of global growth towards trend rates through 2005.
"Oil prices averaged a record high $43.85 per barrel (Dated Brent) in the
fourth quarter, more than $2 per barrel higher than in the third quarter.
The price peaked at over $52 per barrel in the second half of October in
face of the production disruptions caused by Hurricane Ivan. The Dated
Brent price has averaged over $44 per barrel during 2005 to date.
However, despite a counter seasonal rise in inventories, prices are
expected to remain supported at historically high levels by ongoing
supply concerns and OPEC's decision to reduce above quota production from
the start of January.
"US natural gas prices averaged a record $7.07/mmbtu (Henry Hub first of
month index) in the fourth quarter, up by over $1/mmbtu versus the third
quarter. Working gas inventories remain above year-earlier and 5-year
average levels but the futures market continues to signal a supply-
constrained market. The 12-month futures strip (NYMEX Henry Hub) is
trading currently (4 February 2005) at just above $6.50/mmbtu, above
imputed fuel oil parity.
"Refining margins slipped 60c/bbl versus the third quarter to $5.60/bbl
but were still the highest fourth quarter margins for at least 15 years.
Margins moderated further in early 2005, particularly for sweet crude
refiners, but global average margins remain healthy by historic
standards. Retail margins began the fourth quarter under pressure but
improved as crude prices retreated. However, with oil prices rising
again, retail margins have weakened early in the new year. Robust product
demand, however, is likely to underpin both refining and retail margins
in the near term. In Petrochemicals, industry utilization rates rose
during the quarter, reflecting an improvement in overall market
conditions. As a consequence, both sales volumes and margins strengthened
for most products but notably for the paraxylene and olefins businesses.
We expect a continuation of this effect in the near term.
"Our strategy is unchanged and our operations are on track with the plans
laid out last year. We continue to focus on positioning the company for
the future and on post tax cash flow, and shareholder distributions in
the form of dividends and share buybacks. Capital expenditure, excluding
acquisitions, for the year was $14.4 billion. 2005 capital expenditure is
expected to be around $14 billion, in line with the guidance given with
our third quarter results.
"We aim to continue with our distribution policy of a growing dividend
and using excess cash flow to fund share buybacks. Total distributions in
2004 were $13.7 billion, and the number of shares outstanding was reduced
by 3%. BP's financial condition is very healthy with gearing at 24%, at
the bottom of the target range. I believe all of this gives us a strong
base for a sustainable future."
----------------------------------------------------------------------
The foregoing discussion, in particular the statements under "Outlook",
contains forward looking statements particularly those regarding BP's
asset portfolio and changes in it, capital expenditure, costs, demand,
divestments, dividends, future performance, growth and other trend
projections, impact of foreign exchange rates, maintenance, margins,
petrochemicals sales volumes, prices, production, share buybacks,
supply and the timing of projects and pending transactions. By their
nature, forward looking statements involve risks and uncertainties 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 on stream; industry product supply; demand and
pricing; currency exchange rates; operational problems; general
economic conditions including inflationary pressures; political
stability and economic growth in relevant areas of the world; changes
in governmental regulations; exchange rate fluctuations; development
and use of new technology and successful commercial relationships; the
actions of competitors; natural disasters and other changes in business
conditions; prolonged adverse weather 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 2003 and our 2003 Annual Report on Form 20-F filed
with the US Securities and Exchange Commission.
----------------------------------------------------------------------
BP p.l.c. and Subsidiaries
Summarized Group Results
Fourth Third Fourth
Quarter Quarter Quarter Year
2003 2004 2004 2004 2003
======================= ==============
$ million $ million
2,848 4,883 5,093 Exploration and Production 18,520 14,666
320 1,081 1,577 Refining and Marketing 4,722 2,318
41 188 (1,271) Petrochemicals (900) 568
86 130 399 Gas, Power and Renewables 943 570
465 (424) (227) Other businesses and corporate 314 (184)
----------------------- --------------
Replacement cost profit before
3,760 5,858 5,571 interest and tax 23,599 17,938
84 1,027 (494) Stock holding gains (losses)(Note 5) 1,643 16
----------------------- --------------
Historical cost profit before
3,844 6,885 5,077 interest and tax 25,242 17,954
160 156 189 Interest expense (Note 6) 642 644
152 79 126 Other finance expense (Note 7) 357 547
----------------------- --------------
3,532 6,650 4,762 Profit before taxation 24,243 16,763
1,157 2,109 2,152 Taxation (Note 8) 8,282 6,111
----------------------- --------------
2,375 4,541 2,610 Profit after taxation 15,961 10,652
41 58 76 Minority shareholders' interest 230 170
----------------------- --------------
2,334 4,483 2,534 Profit for the period 15,731 10,482
----------------------- --------------
1,495 1,530 1,822 Distribution to shareholders 6,371 5,753
======================= ==============
Earnings per ordinary share - cents
10.56 20.67 11.80 Basic 72.08 47.27
10.32 20.41 11.61 Diluted 70.79 46.83
======================= ==============
Replacement Cost Results
Historical cost profit
2,334 4,483 2,534 for the period 15,731 10,482
Stock holding (gains) losses
net of minority shareholders'
(84) (1,027) 494 interest (1,643) (16)
----------------------- --------------
Replacement cost profit
2,250 3,456 3,028 for the period 14,088 10,466
----------------------- --------------
Earnings per ordinary share - cents
On replacement cost profit
10.18 15.96 14.03 for the period 64.55 47.20
======================= =============
Summarized Group Balance Sheet
31 December 31 December
2004 2003
=====================
$ million
Fixed assets
Intangible assets 12,076 13,642
Tangible assets 96,748 91,911
Investments 18,406 17,458
---------------------
127,230 123,011
---------------------
Current assets
Stocks 15,698 11,617
Debtors 46,696 33,902
Investments 328 185
Cash at bank and in hand 1,156 1,947
---------------------
63,878 47,651
Creditors - amounts falling due within one year
Finance debt 10,184 9,456
Other creditors 54,341 41,128
---------------------
Net current assets (liabilities) (647) (2,933)
---------------------
Total assets less current liabilities 126,583 120,078
Creditors - amounts falling due
after more than one year
Finance debt 12,907 12,869
Other creditors 4,505 6,030
Provisions for liabilities and charges
Deferred taxation 15,050 14,371
Other provisions 9,608 8,599
---------------------
Net assets excluding pensions and other
post-retirement benefit balances 84,513 78,209
Defined benefit pension plan surplus 1,475 1,146
Defined benefit pension plan deficits (5,863) (5,005)
Other post-retirement benefit plan deficits (2,126) (2,630)
---------------------
Net assets 77,999 71,720
Minority shareholders' interest - equity 1,343 1,125
---------------------
BP shareholders' interest 76,656 70,595
=====================
Movement in BP shareholders' interest: $ million
At 31 December 2003 75,938
Prior year adjustment - change in accounting policy
(see Note 1) (5,343)
------
As restated 70,595
Profit for the period 15,731
Distribution to shareholders (6,371)
Currency translation differences (net of tax) 2,136
Actuarial gain (loss) on pension and other post-retirement
benefit plans (net of tax) 203
Unrealised gain on acquisition of further investment
in equity-accounted investments 94
Issue of ordinary share capital for employee share schemes 487
Issue of ordinary share capital for TNK-BP 1,250
Net release of shares by ESOP trusts 21
Net movement in LTPP provision 58
Repurchase of ordinary share capital (7,548)
------
At 31 December 2004 76,656
======
Summarized Group Cash Flow Statement
Fourth Third Fourth
Quarter Quarter Quarter Year
2003 2004 2004 2004 2003
======================= ==============
$ million $ million
Net cash inflow from
3,500 6,919 7,044 operating activities (a) 28,554 21,698
----------------------- ---------------
51 1,061 662 Dividends from joint ventures 1,908 131
----------------------- ---------------
Dividends from
120 69 94 associated undertakings 291 417
----------------------- ---------------
Servicing of finance and returns
on investments
51 50 196 Interest received 332 175
(190) (152) (223) Interest paid (694) (1,006)
66 6 17 Dividends received 53 140
Dividends paid to
(3) (15) (8) minority shareholders (33) (20)
----------------------- ---------------
Net cash outflow from servicing of
(76) (111) (18) finance and returns on investments (342) (711)
----------------------- ---------------
Taxation
(329) (299) (438) UK corporation tax (1,447) (1,185)
(1,187) (1,489) (1,953) Overseas tax (4,931) (3,619)
----------------------- ---------------
(1,516) (1,788) (2,391) Tax paid (6,378) (4,804)
----------------------- ---------------
Capital expenditure and
financial investment
(3,683) (3,251) (4,079) Payments for fixed assets (13,035)(12,377)
Proceeds from the sale
1,410 537 595 of fixed assets 4,323 6,253
----------------------- ---------------
Net cash outflow for
capital expenditure and
(2,273) (2,714) (3,484) financial investment (8,712) (6,124)
----------------------- --------------
Acquisitions and disposals
(33) - (1,489) Acquisitions, net of cash acquired (1,503) (211)
Proceeds from the sale
- 37 383 of businesses 725 179
Net investment in
274 23 - TNK-BP joint venture (1,250) (2,351)
Net investment in
(162) (75) (84) other joint ventures (272) (178)
Investments in associated
(227) (171) (190) undertakings (942) (987)
----------------------- ---------------
Net cash (outflow) inflow for
(148) (186) (1,380) acquisitions and disposals (3,242) (3,548)
----------------------- ---------------
(1,438) (1,536) (1,535) Equity dividends paid (6,041) (5,654)
----------------------- ---------------
(1,780) 1,714 (1,008) Net cash inflow (outflow) 6,038 1,405
======================= ===============
(2,354) 1,617 (593) Financing (b) 6,777 1,129
(223) 73 74 Management of liquid resources 132 (41)
797 24 (489)(Decrease) increase in cash (871) 317
----------------------- ---------------
(1,780) 1,714 (1,008) 6,038 1,405
======================= ===============
Analysis of Cash Flow
Fourth Third Fourth
Quarter Quarter Quarter Year
2003 2004 2004 2004 2003
======================= ==============
$ million $ million
(a) Reconciliation of historical
cost profit before interest
and tax to net cash inflow
from operating activities
Historical cost profit before
3,844 6,885 5,077 interest and tax 25,242 17,954
3,093 2,648 4,383 Depreciation and amounts provided 12,583 10,940
Exploration expenditure
129 34 151 written off 274 297
Net operating charge for pensions
and other post-retirement
(2,190) 39 (49) benefits, less contributions (67) (2,913)
Share of profits of joint ventures
(494) (1,117) (948) and associated undertakings (3,574) (1,438)
(121) (49) (138) Interest and other income (325) (341)
(Profit) loss on sale of fixed
15 15 273 assets and businesses (815) (831)
214 592 (1) Charge for provisions 671 782
(204) (168) (363) Utilization of provisions (781) (716)
(362) (2,573) 143 (Increase) decrease in stocks (3,595) (841)
375 (3,395) (4,539) (Increase) decrease in debtors (10,920) (3,042)
(799) 4,008 3,055 Increase (decrease) in creditors 9,861 1,847
----------------------- ---------------
Net cash inflow from
3,500 6,919 7,044 operating activities 28,554 21,698
======================= ===============
(b) Financing
(1,666) (717) (900) Long-term borrowing (2,675) (4,322)
776 13 921 Repayments of long-term borrowing 2,204 3,560
(1,738) (338) (2,730) Short-term borrowing (3,335) (4,706)
Repayments of short-term
278 479 174 borrowing 3,375 4,708
----------------------- ---------------
(2,350) (563) (2,535) (431) (760)
Issue of ordinary share capital
(61) (157) (108) for employee share schemes (487) (173)
57 87 1 Purchase of shares by ESOP trusts 147 63
Repurchase of ordinary
- 2,250 2,049 share capital 7,548 1,999
----------------------- ---------------
Net cash outflow
(2,354) 1,617 (593) (inflow) from financing 6,777 1,129
======================= ===============
Adjusted Operating Cash Flow
Net cash inflow from operating
3,500 6,919 7,044 activities (a) 28,554 21,698
Dividends received from
51 1,061 662 joint ventures 1,908 131
Dividends received from
120 69 94 associated undertakings 291 417
Net cash outflow from servicing
of finance and returns on
(76) (111) (18) investments (342) (711)
----------------------- ---------------
Adjusted operating cash
3,595 7,938 7,782 flow (pre-tax) 30,411 21,535
(1,600) (1,821) (2,521) Tax paid on operations* (6,639) (4,681)
----------------------- ---------------
Adjusted operating cash
1,995 6,117 5,261 flow (post-tax) 23,772 16,854
----------------------- ---------------
* Components of tax payments
(1,600) (1,821) (2,521) Tax paid on operations (6,639) (4,681)
Tax refunded/(paid) on
84 33 130 exceptional items (b) 261 (123)
----------------------- ---------------
(1,516) (1,788) (2,391) Total tax paid (6,378) (4,804)
======================= ===============
(a) Includes pre-tax discretionary pension funding of $146 million in 4Q 2004
($99 million post-tax), $395 million in the year 2004 ($270 million post-
tax), $1,586 million in 4Q 2003 ($1,046 million post-tax) and $2,533
million in the year 2003 ($1,646 million post-tax).
(b) Deemed to be the tax credit (charge) on exceptional items in the income
statement.
Capital Expenditure and Acquisitions
Fourth Third Fourth
Quarter Quarter Quarter Year
2003 2004 2004 2004 2003
======================= ==============
$ million $ million
By business
Exploration and Production
189 191 207 UK 762 786
75 68 94 Rest of Europe 255 279
1,140 1,035 1,102 USA 4,096 4,097
1,191 1,150 1,218 Rest of World (a) 6,080 10,208
----------------------- -------------
2,595 2,444 2,621 11,193 15,370
----------------------- -------------
Refining and Marketing
249 100 222 UK 481 477
446 159 321 Rest of Europe 745 783
623 291 465 USA 1,344 1,509
181 59 293 Rest of World 444 311
----------------------- -------------
1,499 609 1,301 3,014 3,080
----------------------- -------------
Petrochemicals
35 66 186 UK (b) 294 116
69 69 926 Rest of Europe (b) 1,086 137
130 72 508 USA (b) 695 291
65 25 90 Rest of World 214 231
----------------------- -------------
299 232 1,710 2,289 775
----------------------- -------------
Gas, Power and Renewables
21 6 154 UK 166 69
46 2 12 Rest of Europe 19 76
49 14 42 USA 81 160
27 43 122 Rest of World 272 136
----------------------- -------------
143 65 330 538 441
----------------------- -------------
Other businesses and corporate
29 51 63 UK 129 108
1 - - Rest of Europe - 2
43 11 52 USA 85 234
1 - 1 Rest of World 1 2
----------------------- -------------
74 62 116 215 346
----------------------- -------------
4,610 3,412 6,078 17,249 20,012
======================= =============
By geographical area
523 414 832 UK (b) 1,832 1,556
637 298 1,353 Rest of Europe (b) 2,105 1,277
1,985 1,423 2,169 USA (b) 6,301 6,291
1,465 1,277 1,724 Rest of World (a) 7,011 10,888
----------------------- -------------
4,610 3,412 6,078 17,249 20,012
----------------------- -------------
(a) Year 2004 included $1,354 million investment in TNK's interest in
Slavneft within TNK-BP. Year 2003 included the investment in the TNK-
BP joint venture.
(b) Fourth quarter and year 2004 included $1,355 million for the
acquisition of Solvay's interests in BP Solvay Polyethylene Europe and
BP Solvay Polyethylene North America.
Exchange rates
US dollar/sterling average rate
1.70 1.82 1.86 for the period 1.83 1.63
1.78 1.80 1.92 US dollar/sterling period-end rate 1.92 1.78
US dollar/euro average rate
1.19 1.22 1.29 for the period 1.24 1.13
1.25 1.23 1.36 US dollar/euro period-end rate 1.36 1.25
======================= =============
Analysis of Replacement Cost Profit
Before Interest and Tax
Fourth Third Fourth
Quarter Quarter Quarter Year
2003 2004 2004 2004 2003
======================= ==============
$ million $ million
By business
Exploration and Production
654 745 981 UK 3,384 3,397
154 246 222 Rest of Europe 837 587
716 1,566 1,531 USA 6,094 5,100
1,324 2,326 2,359 Rest of World 8,205 5,582
----------------------- -------------
2,848 4,883 5,093 18,520 14,666
----------------------- -------------
Refining and Marketing
(152) (152) 101 UK (435) (472)
158 533 593 Rest of Europe 1,859 1,373
174 536 661 USA 2,478 748
140 164 222 Rest of World 820 669
----------------------- -------------
320 1,081 1,577 4,722 2,318
----------------------- -------------
Petrochemicals
(65) (107) (716) UK (1,041) (325)
34 130 (282) Rest of Europe 185 476
6 30 (215) USA (291) 205
66 135 (58) Rest of World 247 212
----------------------- -------------
41 188 (1,271) (900) 568
----------------------- -------------
Gas, Power and Renewables
40 (46) 133 UK 97 76
(11) (9) (4) Rest of Europe (27) (37)
5 139 90 USA 422 266
52 46 180 Rest of World 451 265
----------------------- -------------
86 130 399 943 570
----------------------- -------------
Other businesses and corporate
324 (147) 282 UK (78) (26)
(42) 21 (177) Rest of Europe (163) (49)
(23) (268) (251) USA (658) (384)
206 (30) (81) Rest of World 1,213 275
----------------------- -------------
465 (424) (227) 314 (184)
----------------------- -------------
3,760 5,858 5,571 23,599 17,938
======================= =============
By geographical area
801 293 781 UK 1,927 2,650
293 921 352 Rest of Europe 2,691 2,350
878 2,003 1,816 USA 8,045 5,935
1,788 2,641 2,622 Rest of World 10,936 7,003
----------------------- -------------
3,760 5,858 5,571 23,599 17,938
======================= =============
Included above:
Share of profits of joint
402 942 772 ventures 2,933 923
Share of profits of associated
93 165 169 undertakings 605 511
----------------------- -------------
495 1,107 941 3,538 1,434
======================= =============
Pro Forma Result: Replacement Cost Profit Before
Interest and Tax Adjusted for Acquisition Amortization
Fourth Third Fourth
Quarter Quarter Quarter Year
2003 2004 2004 2004 2003
======================= ==============
$ million $ million
By business
Exploration and Production
689 775 1,014 UK 3,514 3,531
154 246 222 Rest of Europe 837 587
1,091 1,785 1,883 USA 7,089 6,231
1,340 2,338 2,370 Rest of World 8,319 5,883
----------------------- -------------
3,274 5,144 5,489 19,759 16,232
----------------------- -------------
Refining and Marketing
(36) (27) 228 UK 66 (26)
158 533 593 Rest of Europe 1,859 1,373
269 631 756 USA 2,858 1,128
140 164 222 Rest of World 820 669
----------------------- -------------
531 1,301 1,799 5,603 3,144
----------------------- -------------
Petrochemicals
(65) (107) (716) UK (1,041) (325)
34 130 (282) Rest of Europe 185 476
6 30 (215) USA (291) 205
66 135 (58) Rest of World 247 212
----------------------- -------------
41 188 (1,271) (900) 568
----------------------- -------------
Gas, Power and Renewables
40 (46) 133 UK 97 76
(11) (9) (4) Rest of Europe (27) (37)
5 139 90 USA 422 266
52 46 180 Rest of World 451 265
----------------------- -------------
86 130 399 943 570
----------------------- -------------
Other businesses and corporate
324 (147) 282 UK (78) (26)
(42) 21 (177) Rest of Europe (163) (49)
(23) (268) (251) USA (658) (384)
206 (30) (81) Rest of World 1,213 275
----------------------- -------------
465 (424) (227) 314 (184)
----------------------- -------------
4,397 6,339 6,189 25,719 20,330
----------------------- -------------
By geographical area
952 448 941 UK 2,558 3,230
293 921 352 Rest of Europe 2,691 2,350
1,348 2,317 2,263 USA 9,420 7,446
1,804 2,653 2,633 Rest of World 11,050 7,304
----------------------- -------------
4,397 6,339 6,189 25,719 20,330
======================= =============
Analysis of Exceptional Items
Fourth Third Fourth
Quarter Quarter Quarter Year
2003 2004 2004 2004 2003
======================= ==============
$ million $ million
Exploration and Production
11 (3) (15) UK (21) 735
1 (1) - Rest of Europe (1) (30)
20 13 (6) USA 31 (230)
(81) 14 53 Rest of World 143 438
----------------------- -------------
(49) 23 32 152 913
----------------------- -------------
Refining and Marketing
(12) (16) 9 UK (101) (44)
(47) (25) (28) Rest of Europe (70) (109)
(32) 16 95 USA 113 (61)
- 8 (18) Rest of World (59) 1
----------------------- -------------
(91) (17) 58 (117) (213)
----------------------- -------------
Petrochemicals
(1) 10 (201) UK (195) 2
(10) (56) (13) Rest of Europe (15) (11)
(5) (3) (150) USA (349) 11
32 11 (13) Rest of World (4) 36
----------------------- -------------
16 (38) (377) (563) 38
----------------------- -------------
Gas, Power and Renewables
- - - UK - -
- - (1) Rest of Europe (1) -
(10) - 1 USA 1 (6)
- 16 40 Rest of World 56 -
----------------------- -------------
(10) 16 40 56 (6)
----------------------- -------------
Other businesses and corporate
27 1 (27) UK (26) 24
- 1 - Rest of Europe - (1)
(45) (1) - USA (1) (61)
137 - 1 Rest of World 1,314 137
----------------------- -------------
119 1 (26) 1,287 99
----------------------- -------------
Profit (loss) on sale of fixed assets
and businesses or termination
(15) (15) (273) of operations 815 831
84 33 130 Taxation credit (charge) 261 (123)
----------------------- -------------
69 18 (143) Exceptional items after taxation 1,076 708
======================= =============
Identified Non-operating Items and UPIS
Fourth Third Fourth
Quarter Quarter Quarter Year
2003 2004 2004 2004 2003
======================= ==============
$ million $ million
Exploration and Production
(144) - - UK - (209)
- - - Rest of Europe - -
(236) (77) (54) USA (a) (444) (321)
- (60) 2 Rest of World (181) (5)
----------------------- -------------
(380) (137) (52) (625) (535)
----------------------- -------------
Refining and Marketing
- (9) - UK (9) -
(146) (20) - Rest of Europe (20) (277)
- (159) - USA (159) (369)
- (18) - Rest of World (18) -
----------------------- -------------
(146) (206) - (206) (646)
----------------------- -------------
Petrochemicals
- (34) (438) UK (472) (36)
- - (420) Rest of Europe (420) -
- (24) (177) USA (201) (15)
- - (114) Rest of World (114) -
----------------------- -------------
- (58) (1,149) (1,207) (51)
----------------------- -------------
Gas, Power and Renewables
- - - UK - -
- - - Rest of Europe - -
- - - USA - -
- - - Rest of World - -
----------------------- -------------
- - - - -
----------------------- -------------
Other businesses and corporate
(74) (21) (59) UK (80) (74)
- - - Rest of Europe - -
578 (223) 30 USA (193) 466
- - - Rest of World - -
----------------------- -------------
504 (244) (29) (273) 392
----------------------- -------------
(22) (645) (1,230) Total before taxation (2,311) (840)
157 226 246 Taxation credit (charge) 626 572
----------------------- -------------
135 (419) (984) Total after taxation (1,685) (268)
======================= =============
(a) Includes a credit for Unrealized Profit in Stock (UPIS) of $57 million
in 4Q 2004 and a charge of $191 million for the year 2004 and charges
of $57 million in 4Q 2003 and $61 million in the year 2003, which
removes the upstream margin from downstream inventories.
Acquisition Amortization by Business
Fourth Third Fourth
Quarter Quarter Quarter Year
2003 2004 2004 2004 2003
======================= ==============
$ million $ million
Exploration and Production
35 30 33 UK 130 134
375 219 352 USA 995 1,131
16 12 11 Rest of World 114 301
----------------------- -------------
426 261 396 1,239 1,566
----------------------- -------------
Refining and Marketing
116 125 127 UK 501 446
95 95 95 USA 380 380
----------------------- -------------
211 220 222 881 826
----------------------- -------------
637 481 618 Total acquisition amortization 2,120 2,392
======================= =============
Production and Realizations
Fourth Third Fourth
Quarter Quarter Quarter Year
2003 2004 2004 2004 2003
======================= ==============
Production
Crude oil (mb/d) (net of royalties)
339 281 301 UK 312 354
74 68 70 Rest of Europe 73 79
570 495 519 USA 530 576
1,265 1,454 1,506 Rest of World 1,425 902
----------------------- -------------
2,248 2,298 2,396 Total crude oil production 2,340 1,911
======================= =============
Natural gas liquids (mb/d) (net of royalties)
21 13 19 UK 18 23
5 3 4 Rest of Europe 4 5
147 134 142 USA 138 150
33 31 32 Rest of World 31 32
----------------------- -------------
Total natural gas
206 181 197 liquids production 191 210
======================= =============
Liquids (a)(mb/d) (net of royalties)
360 294 320 UK 330 377
79 71 74 Rest of Europe 77 84
717 629 661 USA 668 726
1,298 1,485 1,538 Rest of World 1,456 934
----------------------- -------------
2,454 2,479 2,593 Total liquids production 2,531 2,121
======================= =============
Natural gas (b) (mmcf/d) (net of royalties)
1,318 903 1,227 UK 1,174 1,446
143 110 113 Rest of Europe 125 119
2,933 2,685 2,651 USA 2,748 3,128
4,206 4,577 4,723 Rest of World 4,456 3,920
----------------------- -------------
8,600 8,275 8,714 Total natural gas production 8,503 8,613
======================= =============
Average realizations
Crude oil ($/bbl)
28.18 40.33 42.01 UK 36.11 28.30
28.49 39.52 42.07 USA 37.40 29.02
27.56 38.01 38.29 Rest of World 34.99 26.91
28.18 39.43 41.01 BP Average 36.45 28.23
======================= =============
Natural gas liquids ($/bbl)
20.06 34.29 40.23 UK 31.79 20.08
19.11 27.59 29.31 USA 25.67 18.39
24.23 30.63 33.10 Rest of World 27.76 22.31
20.15 28.77 31.20 BP Average 26.75 19.26
======================= =============
Liquids (a) ($/bbl)
27.71 40.06 41.91 UK 35.87 27.80
26.92 37.46 39.73 USA 35.41 27.23
27.33 37.53 37.94 Rest of World 34.51 26.60
27.30 38.29 39.88 BP Average 35.39 27.25
======================= =============
Natural gas ($/mcf)
3.87 3.60 5.16 UK 4.32 3.19
3.85 4.94 5.72 USA 5.11 4.47
2.35 2.71 3.00 Rest of World 2.74 2.47
3.18 3.66 4.28 BP Average 3.86 3.39
======================= =============
(a) Crude oil and natural gas liquids.
(b) Natural gas is converted to oil equivalent at 5.8 billion cubic feet =
1 million barrels.
Reconciliation of Historical Cost
Profit (Loss) to Pro Forma Result
Reported Acquisition Pro forma
$ million earnings amortization result
======================================
3Q 2004
Exploration and Production 4,883 261 5,144
Refining and Marketing 1,081 220 1,301
Petrochemicals 188 - 188
Gas, Power and Renewables 130 - 130
Other businesses and corporate (424) - (424)
--------------------------------------
RC profit before interest and tax 5,858 481 6,339
Interest and other finance expense (235) - (235)
Taxation (2,109) - (2,109)
MSI (58) - (58)
--------------------------------------
RC profit 3,456 481 3,937
=================
Stock holding gains (losses) 1,027
-----
HC profit 4,483
=====
4Q 2003
Exploration and Production 2,848 426 3,274
Refining and Marketing 320 211 531
Petrochemicals 41 - 41
Gas, Power and Renewables 86 - 86
Other businesses and corporate 465 - 465
--------------------------------------
RC profit before interest and tax 3,760 637 4,397
Interest and other finance expense (312) - (312)
Taxation (1,157) - (1,157)
MSI (41) - (41)
--------------------------------------
RC profit 2,250 637 2,887
=================
Stock holding gains (losses) 84
-----
HC profit 2,334
=====
Reconciliation of Historical Cost
Profit (Loss) to Pro Forma Result
Reported Acquisition Pro forma
$ million earnings amortization result
======================================
Year 2004
Exploration and Production 18,520 1,239 19,759
Refining and Marketing 4,722 881 5,603
Petrochemicals (900) - (900)
Gas, Power and Renewables 943 - 943
Other businesses and corporate 314 - 314
--------------------------------------
RC profit before interest and tax 23,599 2,120 25,719
Interest and other finance expense (999) - (999)
Taxation (8,282) - (8,282)
MSI (230) - (230)
--------------------------------------
RC profit 14,088 2,120 16,208
=================
Stock holding gains (losses) 1,643
------
HC profit 15,731
======
Year 2003
Exploration and Production 14,666 1,566 16,232
Refining and Marketing 2,318 826 3,144
Petrochemicals 568 - 568
Gas, Power and Renewables 570 - 570
Other businesses and corporate (184) - (184)
--------------------------------------
RC profit before interest and tax 17,938 2,392 20,330
Interest and other finance expense (1,191) - (1,191)
Taxation (6,111) - (6,111)
MSI (170) - (170)
--------------------------------------
RC profit 10,466 2,392 12,858
=================
Stock holding gains (losses) 16
------
HC profit 10,482
======
Return on Average Capital Employed
Fourth Third Fourth
Quarter Quarter Quarter Year
2003 2004 2004 2004 2003
======================= ==============
$ million $ million
Replacement cost basis
2,250 3,456 3,028 RC profit for the period (a) 14,088 10,466
73 67 90 Interest (b) 283 332
41 58 76 Minority shareholders' interest 230 170
----------------------- --------------
2,364 3,581 3,194 Adjusted RC profit 14,601 10,968
======================= ==============
91,203 95,568 99,031 Average capital employed 97,568 90,263
10.4% 15.0% 12.9% ROACE - replacement cost basis 15.0% 12.2%
----------------------- --------------
Pro forma basis
2,364 3,581 3,194 Adjusted RC profit (a) 14,601 10,968
637 481 618 Acquisition amortization 2,120 2,392
----------------------- --------------
Adjusted RC profit -
3,001 4,062 3,812 pro forma basis 16,721 13,360
======================= ==============
91,203 95,568 99,031 Average capital employed 97,568 90,263
Average capital employed
13,556 12,156 11,628 acquisition adjustment 12,376 15,017
----------------------- --------------
Average capital employed
77,647 83,412 87,403 (pro forma basis) 85,192 75,246
15.5% 19.5% 17.4% ROACE - pro forma basis 19.6% 17.8%
----------------------- -------------
Historical cost basis
2,334 4,483 2,534 Profit for the period (a) 15,731 10,482
73 67 90 Interest (b) 283 332
41 58 76 Minority shareholders' interest 230 170
----------------------- --------------
2,448 4,608 2,700 Adjusted historical cost profit 16,244 10,984
======================= ==============
91,203 95,568 99,031 Average capital employed 97,568 90,263
10.7% 19.3% 10.9% ROACE - historical cost basis 16.6% 12.2%
(a) 4Q 2004 includes $(143) million in respect of exceptional items and
$(984) million in respect of non-operating items and UPIS. Year 2004
includes $1,076 million in respect of exceptional items and $(1,685)
million in respect of non-operating items and UPIS. 4Q 2003 includes
$69 million in respect of exceptional items and $135 million in respect
of non-operating items and UPIS. Year 2003 includes $708 million in
respect of exceptional items and $(268) million in respect of non-
operating items and UPIS.
(b) Excludes interest on joint venture and associated undertakings' debt
and is on a post-tax basis using a deemed tax rate equal to the US
statutory tax rate.
Pre-Tax Cash Returns
Fourth Third Fourth
Quarter Quarter Quarter Year
2003 2004 2004 2004 2003
======================= ==============
$ million $ million
Replacement cost profit before
3,760 5,858 5,571 interest and tax 23,599 17,938
15 15 273 Exceptional items (815) (831)
----------------------- --------------
3,775 5,873 5,844 Replacement cost operating profit 22,784 17,107
637 481 618 Acquisition amortization 2,120 2,392
----------------------- --------------
Pro forma replacement cost
4,412 6,354 6,462 operating profit 24,904 19,499
(35) 550 1,287 Non-operating items 2,120 779
Pro forma DD&A, adjusted for non-
2,148 2,160 2,526 cash non-operating items 8,934 8,191
----------------------- --------------
6,525 9,064 10,275 Cash returns numerator 35,958 28,469
======================= ==============
94,045 96,971 101,090 Capital employed 101,090 94,045
Liabilities for current and
16,068 17,531 17,302 deferred taxation 17,302 16,068
----------------------- --------------
110,113 114,502 118,392 Operating capital employed 118,392 110,113
(13,362)(11,865)(11,390) Acquisition adjustment (11,390)(13,362)
----------------------- --------------
96,751 102,637 107,002 Cash returns denominator 107,002 96,751
======================= ==============
93,755 100,908 104,820 Average cash returns denominator 101,877 90,385
======================= ==============
28% 36% 39% Cash return 35% 31%
Net Debt Ratio - Net Debt: Net Debt + Equity
Fourth Third Fourth
Quarter Quarter Quarter Year
2003 2004 2004 2004 2003
======================= ==============
$ million $ million
22,325 20,445 23,091 Gross debt 23,091 22,325
2,132 1,821 1,484 Cash and current asset investments 1,484 2,132
----------------------- --------------
20,193 18,624 21,607 Net debt 21,607 20,193
======================= ==============
71,720 76,526 77,999 Equity 77,999 71,720
22% 20% 22% Net debt ratio 22% 22%
----------------------- --------------
13,362 11,865 11,390 Acquisition adjustment 11,390 13,362
----------------------- --------------
26% 22% 24% Net debt ratio - pro forma basis 24% 26%
======================= ==============
Notes
1. Restatement of comparative information
Comparative information for 2003 has been restated to reflect the
changes described below.
(a) Transfer of natural gas liquids activities
With effect from 1 January 2004 natural gas liquids (NGLs)
activities have been transferred from the Exploration and
Production segment to Gas, Power and Renewables.
(b) New accounting standard for pensions and other post-retirement
benefits
With effect from 1 January 2004 BP has adopted Financial Reporting
Standard No. 17 'Retirement Benefits' (FRS 17). FRS 17 requires
that financial statements reflect at fair value the assets and
liabilities arising from an employer's retirement benefit
obligations and any related funding. The operating costs of
providing retirement benefits are recognized in the period in which
they are earned together with any related finance costs and changes
in the value of related assets and liabilities. This contrasts
with Statement of Standard Accounting Practice No. 24 'Accounting
for Pension Costs', which required the cost of providing pensions
to be recognized on a systematic and rational basis over the period
during which the employer benefited from the employee's services.
The difference between the amount charged in the income statement
and the amount paid as contributions into the pension fund was
shown as a prepayment or provision on the balance sheet.
(c) Accounting for Employee Share Ownership Plans
With effect from 1 January 2004 BP has adopted Urgent Issues Task
Force Abstract No. 38 'Accounting for ESOP Trusts'. This abstract
requires that BP shares held by the group for the purposes of
Employee Share Ownership Plans (ESOPs) are deducted from equity on
the balance sheet. Such shares were previously classified as fixed
asset investments. In addition, accruals for awards under the Long
Term Performance Plan have also been included in reserves.
Balance sheet at 31 December 2003 Restated Reported
====================
$ million
Fixed assets
Intangible assets 13,642 13,642
Tangible assets 91,911 91,911
Investments 17,458 17,554
--------------------
123,011 123,107
--------------------
Current assets 47,651 54,465
Creditors - amounts falling due within one year 50,584 50,584
-------------------
Net current assets (liabilities) (2,933) 3,881
-------------------
Total assets less current liabilities 120,078 126,988
Creditors - amounts falling due after
more than one year 18,899 18,959
Provisions for liabilities and charges
Deferred taxation 14,371 15,273
Other provisions 8,599 15,693
-------------------
Net assets excluding pension and other
post-retirement benefit balances 78,209 77,063
Defined benefit pension plan surplus 1,146 -
Defined benefit pension plan deficits (5,005) -
Other post-retirement benefit plan deficits (2,630) -
-------------------
Net assets 71,720 77,063
Minority shareholders' interest 1,125 1,125
-------------------
BP shareholders' interest 70,595 75,938
===================
Notes
Income statements Restated Reported
Fourth Fourth
Quarter Year Quarter Year
2003 2003 2003 2003
================ ================
$ million
Exploration and Production 2,848 14,666 2,889 14,850
Refining and Marketing 320 2,318 274 2,127
Petrochemicals 41 568 51 606
Gas, Power and Renewables 86 570 67 466
Other businesses and corporate 465 (184) (176) (805)
-----------------------------------
Replacement cost profit before
interest and tax 3,760 17,938 3,105 17,244
Stock holding gains (losses) 84 16 84 16
-----------------------------------
Historical cost profit before
interest and tax 3,844 17,954 3,189 17,260
Interest expense 160 644 227 851
Other finance expense 152 547 - -
-----------------------------------
Profit before taxation 3,532 16,763 2,962 16,409
Taxation 1,157 6,111 949 5,972
-----------------------------------
Profit after taxation 2,375 10,652 2,013 10,437
Minority shareholders' interest 41 170 41 170
-----------------------------------
Profit for the period 2,334 10,482 1,972 10,267
===================================
Distribution to shareholders 1,495 5,753 1,495 5,753
-----------------------------------
Earnings per ordinary share - cents
Basic 10.56 47.27 8.93 46.30
Diluted 10.32 46.83 8.69 45.87
===================================
Notes
2. Turnover
Fourth Third Fourth
Quarter Quarter Quarter Year
2003 2004 2004 2004 2003
======================= ==============
$ million $ million
By business
7,450 8,660 9,875 Exploration and Production 34,914 30,753
36,903 42,989 47,196 Refining and Marketing 179,587 149,477
3,811 5,412 6,482 Petrochemicals 21,209 16,075
16,701 20,443 23,468 Gas, Power and Renewables 83,320 65,639
Other businesses
137 137 156 and corporate 546 515
----------------------- ---------------
65,002 77,641 87,177 319,576 262,459
Less: sales between
7,138 9,126 9,567 businesses 34,517 29,888
----------------------- ---------------
57,864 68,515 77,610 Group excluding JVs 285,059 232,571
Share of sales by
1,798 2,967 3,054 joint ventures 9,790 3,474
----------------------- ---------------
59,662 71,482 80,664 294,849 236,045
======================= ===============
By geographical area
Group excluding JVs
14,117 21,848 24,656 UK 81,155 54,971
12,288 13,876 15,173 Rest of Europe 54,422 50,582
26,347 29,065 34,002 USA 130,652 108,910
13,894 16,731 19,717 Rest of World 68,052 52,498
----------------------- ---------------
66,646 81,520 93,548 334,281 266,961
8,782 13,005 15,938 Less: sales between areas 49,222 34,390
----------------------- ---------------
57,864 68,515 77,610 285,059 232,571
======================= ===============
3. 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
4. Operating profits are after charging:
Fourth Third Fourth
Quarter Quarter Quarter Year
2003 2004 2004 2004 2003
======================= ==============
$ million $ million
Exploration expense
1 4 17 UK 26 17
5 7 10 Rest of Europe 25 37
60 58 143 USA 361 204
127 66 88 Rest of World 225 284
----------------------- --------------
193 135 258 637 542
======================= ==============
Production taxes (a)
44 51 112 UK petroleum revenue tax 335 300
377 502 535 Overseas production taxes 1,814 1,423
----------------------- --------------
421 553 647 2,149 1,723
======================= ==============
(a) Production taxes are charged against Exploration and Production's
operating profit and are not included in the charge for taxation in
Note 8.
5. Stock holding gains (losses)
- 5 (3) Exploration and Production 10 3
16 866 (578) Refining and Marketing 1,245 (48)
10 129 59 Petrochemicals 349 55
58 27 28 Gas, Power and Renewables 39 6
---------------------- --------------
84 1,027 (494) 1,643 16
====================== ==============
Notes
6. Interest expense
Fourth Third Fourth
Quarter Quarter Quarter Year
2003 2004 2004 2004 2003
======================= ==============
$ million $ million
172 160 188 Group interest payable 644 700
(60) (57) (49) Capitalized (208) (190)
----------------------- --------------
112 103 139 436 510
36 41 37 Joint ventures 158 89
12 12 13 Associated undertakings 48 45
----------------------- --------------
160 156 189 642 644
======================= ==============
7. Other finance expense
Interest on pension and other
post-retirement benefit
460 502 519 plan liabilities 2,012 1,840
Expected return on pension
and other post-retirement
(375) (493) (501) benefit plan assets (1,983) (1,500)
----------------------- --------------
Interest net of expected return
85 9 18 on plan assets 29 340
Unwinding of discount
42 48 50 on provisions 196 173
Unwinding of discount on
deferred consideration for
acquisition of investment
25 22 17 in TNK-BP 91 34
Change in discount rate
- - 41 for provisions 41 -
----------------------- --------------
152 79 126 357 547
======================= ==============
8. Charge for taxation
404 1,672 2,365 Current 7,908 4,919
753 437 (213) Deferred 374 1,192
----------------------- --------------
1,157 2,109 2,152 8,282 6,111
======================= ==============
356 601 387 UK 1,699 1,431
801 1,508 1,765 Overseas 6,583 4,680
----------------------- --------------
1,157 2,109 2,152 8,282 6,111
======================= ==============
Notes
9. Analysis of changes in net debt
Fourth Third Fourth
Quarter Quarter Quarter Year
2003 2004 2004 2004 2003
======================= ==============
$ million $ million
Opening balance
19,970 19,858 20,445 Finance debt 22,325 22,008
1,091 1,531 1,576 Less: Cash 1,947 1,520
404 172 245 Current asset investments 185 215
----------------------- ---------------
18,475 18,155 18,624 Opening net debt 20,193 20,273
----------------------- ---------------
Closing balance
22,325 20,445 23,091 Finance debt 23,091 22,325
1,947 1,576 1,156 Less: Cash 1,156 1,947
185 245 328 Current asset investments 328 185
----------------------- ---------------
20,193 18,624 21,607 Closing net debt 21,607 20,193
----------------------- ---------------
(Increase) decrease
(1,718) (469) (2,983) in net debt (1,414) 80
======================= ===============
Movement in cash/
797 24 (489) bank overdrafts (871) 317
Increase (decrease) in
(223) 73 74 current asset investments 132 (41)
Net cash (inflow) outflow
from financing(excluding
(2,350) (563) (2,535) share capital) (431) (760)
- - - Debt transferred to TNK-BP - 93
Exchange of Exchangeable Bonds
for Lukoil American
- - - Depositary Shares - 420
5 10 37 Other movements 68 144
(3) - - Debt acquired - (15)
----------------------- --------------
Movement in net debt before
(1,774) (456) (2,913) exchange effects (1,102) 158
56 (13) (70) Exchange adjustments (312) (78)
----------------------- --------------
(Increase) decrease
(1,718) (469) (2,983) in net debt (1,414) 80
======================= ==============
Notes
10. TNK-BP Operational and Financial Information
Fourth Third Fourth 29 Aug
Quarter Quarter Quarter Year 31 Dec
2003 2004 2004 2004 2003
======================= ==============
Production (Net of royalties)
(BP share)
669 858 884 Crude oil (mb/d) 830 665
296 505 515 Natural gas (mmcf/d) 463 281
720 945 972 Total hydrocarbons (mboe/d)(a) 910 713
======================= ==============
$ million $ million
Income statement (BP share)
Replacement cost profit
354 807 659 before interest and tax 2,421 512
- - - Stock holding gains (losses) - -
(24) (23) (22) Interest expense * (101) (37)
(53) (257) (209) Taxation (752) (83)
1 (6) (17) Minority shareholders' interest (43) -
----------------------- --------------
278 521 411 Net Income 1,525 392
======================= ==============
* Excludes unwinding of discount
25 22 17 on deferred consideration 91 34
======================= ==============
Cash Flow
Additional investment in
(23) - - TNK-BP joint venture (1,416) (2,648)
Dividends related to period
297 23 - prior to acquisition 166 297
----------------------- --------------
Net investment in TNK-BP
274 23 - joint venture (1,250) (2,351)
======================= ==============
- 1,031 610 Dividends received 1,760 -
======================= ==============
Fourth Third Fourth
Quarter Quarter Quarter Year
2003 2004 2004 2004 2003
======================= ==============
Average oil marker prices ($/bbl)
27.90 37.23 37.75 Urals (NWE - cif) 34.08 27.20
28.00 37.41 38.82 Urals (Med - cif) 34.45 27.28
16.65 23.33 22.30 Domestic Oil 20.61 16.65
======================= ==============
Balance Sheet 31 December 31 December
2004 2003
======== ============
$ million
Fixed assets - investments
Gross assets 12,520 10,339
Gross liabilities (4,352) (3,290)
-------- --------
8,168 7,049
======== ========
Deferred consideration
Due within one year 1,227 1,227
Due after more than one year 1,194 2,352
-------- --------
2,421 3,579
======== ========
(a) Natural gas is converted to oil equivalent at 5.8 billion cubic feet = 1
million barrels.
BP's share of the result of the TNK-BP joint venture has been included
within Exploration and Production with effect from 29 August 2003. TNK-BP
operational and financial information has been estimated and includes
adjustments to net income in respect of prior periods amounting to a credit
of $23 million in 4Q 2004 and charges of $36 million in the year 2004.
Notes
11. Statutory accounts
The above financial information does not constitute statutory accounts.
The summarised group results, summarised group balance sheet,
summarised group cash flow statement and the Notes thereon (except Note
10) for the years ended 31 December 2004 and 2003 are an extract from
the BP Annual Report and Accounts 2004, approved by a duly appointed
and authorized committee of the Board of Directors at the Results
Committee meeting held on 7 February 2005, but not yet delivered to the
UK Registrar of Companies; the report of the auditors on those accounts
was unqualified.
Contacts
London United States
------------------- ----------------
Press Office Roddy Kennedy Ronnie Chappell
+44 (0)20 7496 4624 +1 281 366 5174
Investor Relations Fergus McLeod Rachael MacLean
+44 (0)20 7496 4717 +1 212 451 8072
http://www.bp.com/investors
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BP p.l.c.
(Registrant)
Dated: 8 February 2005 /s/ D. J. PEARL
..............................
D. J. PEARL
Deputy Company Secretary