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 25 April, 2006
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
First Quarter 2006
London 25 April 2006
FOR IMMEDIATE RELEASE
---------------------------------------------------------------------------
STRONG PERFORMANCE DELIVERY AND CASH GENERATION
===========================================================================
1Q
2006
1Q 4Q 1Q vs.1Q
$ million 2006 2005 2005 2005
==========================
Profit for the period* 5,623 3,685 6,602
Inventory holding (gains) losses (358) 747 (1,111)
--------------------------
Replacement cost profit 5,265 4,432 5,491 (4%)
==========================
- per ordinary share (pence) 14.66 12.15 13.55
- per ordinary share (cents) 25.66 21.34 25.61 0.2%
- per ADS (dollars) 1.54 1.28 1.54
==========================
o BP's first quarter replacement cost profit was $5,265 million, compared
with $5,491 million a year ago, a decrease of 4%. Excluding non-
operating items, the result increased by 7% on a year ago; on a per
share basis this represents an increase of 12%.
o The first quarter result included a net non-operating charge of $17
million compared with a net non-operating gain of $542 million in the
first quarter of 2005.
o The first quarter trading environment was generally stronger than a
year ago with higher oil and gas realizations and similar overall
marketing margins, but with slightly lower realized refining margins.
o Net cash provided by operating activities for the quarter was $8.9
billion compared with $9.4 billion a year ago.
o The ratio of net debt to net debt plus equity was 16% compared with 18%
a year ago.
o The quarterly dividend, to be paid in June, is 9.375 cents per share
($0.5625 per ADS) compared with 8.50 cents per share a year ago, an
increase of 10%. In sterling terms, the quarterly dividend is 5.251
pence per share, compared with 4.450 pence per share a year ago, an
increase of 18%. During the quarter, the company repurchased 349
million of its own shares at a cost of $4 billion.
BP Group Chief Executive, Lord Browne, said:
"BP's first quarter result reflected good overall operating performance and
a strong recovery in Refining and Marketing from the fourth quarter. The Texas
City refinery is now running at 200 mb/d and further units will be brought
onstream across the balance of 2006. Our actions to control costs are on track.
Results are being impacted by higher tax charges. Strong cash generation
continues to support shareholder distributions through dividends and buybacks".
* Profit attributable to BP shareholders.
Summary Quarterly Results
Exploration and Production's first quarter result benefited from higher
realizations in both liquids and gas versus a year ago, partially offset by the
impact of lower volumes as a consequence of residual hurricane impacts,
primarily at Mars in the Gulf of Mexico.
The Refining and Marketing result reflects slightly lower realized refining
margins and similar overall marketing margins as the first quarter of 2005. The
major impact on the first quarter's result was the margin loss and
recommissioning costs associated with the shutdown of our Texas City refinery,
although this was partly offset by improved supply optimization and business
improvements elsewhere.
In Gas, Power and Renewables, the lower first quarter result relative to last
year reflects negative impacts from non-operating items and IFRS fair value
accounting charges, partially offset by a higher contribution from marketing and
trading.
Finance costs and Other finance expense was $143 million for the quarter.
The consolidation adjustment, which removes the margin on sales between segments
in respect of inventory at the period end, was a charge of $8 million in the
first quarter.
The effective tax rate on replacement cost profit was 35% versus 31.5% a year
earlier.
Capital expenditure was $3.3 billion for the quarter; there were no significant
acquisitions. Disposal proceeds were $0.7 billion.
Net debt at the end of the quarter was $15.7 billion. The ratio of net debt to
net debt plus equity was 16%.
During the first quarter, the company repurchased 349 million of its own shares,
at a cost of $4 billion. These shares are held in treasury.
The commentaries above and following are based on replacement cost profit.
The financial information for 2005 has been restated to reflect the following,
all with effect from 1 January 2006: (a) the transfer of three equity-accounted
entities from Other businesses and corporate to Refining and Marketing following
the sale of Innovene; (b) the transfer of certain mid-stream assets and
activities from Refining and Marketing and Exploration and Production to Gas,
Power and Renewables; and (c) the transfer of Hydrogen for Transport activities
from Gas, Power and Renewables to Refining and Marketing. See Note 1 for
further details.
Non-Operating Items
First
Quarter
$ million 2006
--------
Exploration and Production (386)
Refining and Marketing 564
Gas, Power and Renewables (55)
Other businesses and corporate 9
--------
132
Taxation (46)
--------
Continuing operations 86
Innovene operations (96)
Taxation (7) (103)
--------
Total for all operations (17)
========
Reconciliation of Replacement Cost Profit to Profit for the Period
First Fourth First
Quarter Quarter Quarter
$ million 2006 2005 2005
================================
Exploration and Production 6,823 6,566 6,484
Refining and Marketing 1,612 (165) 1,411
Gas, Power and Renewables 301 129 412
Other businesses and corporate (217) (409) (171)
Consolidation adjustments
Unrealized profit in inventory (8) 234 (153)
Net Profit on transactions between
continuing and Innovene operations (a) - 128 96
--------------------------------
RC profit before interest and tax 8,511 6,483 8,079
--------------------------------
Finance costs and other finance expense (143) (215) (202)
Taxation (2,929) (2,029) (2,479)
Minority interest (71) (93) (61)
--------------------------------
RC profit for continuing operations
attributable to BP shareholders (b) 5,368 4,146 5,337
================================
Inventory holding gains (losses) for
continuing operations 358 (903) 961
Profit for the period for continuing
operations attributable to BP shareholders 5,726 3,243 6,298
Profit (loss) for the period from
Innovene operations (c) (103) 442 304
--------------------------------
Profit for the period attributable to
BP shareholders 5,623 3,685 6,602
================================
RC profit for continuing operations
attributable to BP shareholders 5,368 4,146 5,337
RC profit (loss) for Innovene operations (103) 286 154
--------------------------------
Replacement cost profit 5,265 4,432 5,491
================================
(a) In the circumstances of discontinued operations, Accounting Standards
require that the profits earned by the discontinued operations, in this
case the Innovene operations, on sales to the continuing operations be
eliminated on consolidation from the discontinued operations, and
attributed to the continuing operations and vice versa. This adjustment
has two offsetting elements: the net margin on crude refined by Innovene
as substantially all crude for their refineries was supplied by BP and
most of the refined products manufactured were taken by BP; and the
margin on sales of feedstock from BP's US refineries to Innovene's
manufacturing plants. The profits attributable to individual segments
were not affected by this adjustment. Neither does this representation
indicate the profits earned by continuing or Innovene operations, as if
they were stand-alone entities, for past periods or likely to be earned
in future periods.
(b) Replacement cost profit reflects the current cost of supplies. The
replacement cost profit for the period is arrived at by excluding from
profit inventory holding gains and losses. BP uses this measure to
assist investors to assess BP's performance from period to period.
Replacement cost profit is not a recognized GAAP measure. Operating cash
flow is calculated from the starting point of profit before taxation
which includes inventory holding gains and losses. Operating cash flow
also reflects working capital movements including inventories, trade and
other receivables and trade and other payables. The carrying value of
these working capital items will change for various reasons, including
movements in oil, gas and products prices.
(c) See further detail in Note 2.
Per Share Amounts
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
================================
Results for the period ($m)
Profit* 5,623 3,685 6,602
Replacement cost profit 5,265 4,432 5,491
--------------------------------
Shares in issue at period end (thousand) 20,341,135 20,657,045 21,367,827
- ADS equivalent (thousand) 3,390,189 3,442,841 3,561,305
Average number of shares
outstanding (thousand) 20,521,872 20,792,896 21,441,285
- ADS equivalent (thousand) 3,420,312 3,465,483 3,573,548
Per ordinary share (cents)
Profit for the period 27.40 17.90 30.79
RC profit for the period 25.66 21.34 25.61
Per ADS (cents)
Profit for the period 164.40 107.40 184.74
RC profit for the period 153.96 128.04 153.66
================================
* Profit attributable to BP shareholders.
Exploration and Production
First Fourth First
Quarter Quarter Quarter
$ million 2006 2005 2005
=====================
Profit before interest and tax(a) 6,816 6,574 6,489
Inventory holding (gains) losses 7 (8) (5)
---------------------
Replacement cost profit before interest and tax 6,823 6,566 6,484
=====================
Results include:
Impairment and gain (loss) on sale of
businesses and fixed assets 9 62 940
Environmental and other provisions - - -
Restructuring, integration and rationalization costs - - -
Fair value gain (loss) on embedded derivatives (395) (801) (160)
Other - (240) -
---------------------
Total non-operating items (386) (979) 780
=====================
Exploration expense 189 208 160
Of which:
Exploration expenditure written off 114 81 84
=====================
Production(Net of royalties)(b)
Crude oil (mb/d) 2,360 2,400 2,405
Natural gas liquids (mb/d) 173 164 188
Total liquids (mb/d)(c) 2,533 2,564 2,593
Natural gas (mmcf/d) 8,713 8,458 8,745
Total hydrocarbons (mboe/d)(d) 4,035 4,022 4,101
=======================
Average realizations(e)
Crude oil ($/bbl) 58.25 53.92 43.37
Natural gas liquids ($/bbl) 35.47 39.29 28.14
Total liquids ($/bbl) 55.88 52.44 41.74
Natural gas ($/mcf) 5.54 6.24 4.26
Total hydrocarbons ($/boe) 44.20 44.56 33.60
=======================
Average oil marker prices ($/bbl)
Brent 61.79 56.87 47.62
West Texas Intermediate 63.29 60.01 49.88
Alaska North Slope US West Coast 60.89 57.89 45.07
=====================
Average natural gas marker prices
Henry Hub gas price ($/mmbtu)(f) 9.01 13.00 6.27
UK Gas - National Balancing Point (p/therm) 70.00 65.30 37.96
=======================
(a) Profit from continuing operations and includes profit after interest and
tax of equity-accounted entities.
(b) Includes BP's share of production of equity-accounted entities.
(c) Crude oil and natural gas liquids.
(d) Natural gas is converted to oil equivalent at 5.8 billion cubic feet =
1 million barrels.
(e) Based on sales of consolidated subsidiaries only - this excludes equity-
accounted entities.
(f) Henry Hub First of the Month Index.
Exploration and Production
The replacement cost profit before interest and tax for the first quarter was
$6,823 million, representing an increase of 5% over the first quarter of 2005.
This result benefited from higher realizations in both liquids and gas,
partially offset by the impact of lower volumes as a consequence of residual
hurricane impacts, primarily at Mars in the Gulf of Mexico.
The result also included fair value losses of $395 million on embedded
derivatives relating to historical long-term North Sea gas contracts. The
corresponding quarter in 2005 contained fair value losses of $160 million on
embedded derivatives and net gains of $940 million on the sales of assets and
charges for impairment.
Production for the quarter at 4,035 mboe/d was slightly higher than the fourth
quarter of 2005, reflecting the progressive return of production affected by
Hurricanes Katrina and Rita. Compared to the first quarter of 2005, production
was at a similar level after taking account of the effect of severe weather
disruptions.
Projects in our New Profit Centres are progressing well. In Trinidad, the first
cargo of LNG from the Atlantic LNG Train 4 plant was loaded in January for
delivery in the UK, and the Cannonball gas development project started
production in mid March. In Azerbaijan, good progress has been made on the
filling and commissioning of the BTC pipeline, with the first lifting at Ceyhan
in Turkey expected in the second quarter of 2006. In the Gulf of Mexico,
progress continued on the Thunder Horse project with the completion of the
installation of all production and export risers on the platform. Production is
expected to start in the second half of 2006.
During the quarter, we were the highest bidder on 73 blocks in the Central Gulf
of Mexico lease sale and we were awarded three new exploration blocks in
offshore Pakistan, subject to government approval.
We reached agreement for the sales of our 4.84% interest in the Statfjord oil
and gas field and of our interest in the Luva gas discovery, both in the North
Sea. Completion of these sales is expected in the second quarter. On 19 April
it was announced that we had reached agreement with Apache to sell our remaining
Gulf of Mexico Shelf assets, with reserves of 59 million barrels of oil
equivalent and average daily production of 27 mboe, for $1.3 billion.
Completion is expected in mid 2006 once regulatory approvals have been received.
Refining and Marketing
First Fourth First
Quarter Quarter Quarter
$ million 2006 2005 2005
=====================
Profit (loss) before interest and tax(a) 2,038 (1,073) 2,353
Inventory holding (gains) losses (426) 908 (942)
---------------------
Replacement cost profit (loss) before interest
and tax 1,612 (165) 1,411
=====================
Results include:
Impairment and gain (loss) on sale of
businesses and fixed assets 564 50 (27)
Environmental and other provisions - - -
Restructuring, integration and rationalization costs - - -
Fair value gain (loss) on embedded derivatives - - -
Other - - -
---------------------
Total non-operating items 564 50 (27)
=====================
Refinery throughputs (mb/d)
UK 111 144 164
Rest of Europe 639 664 647
USA 976 942 1,400
Rest of World 296 288 299
---------------------
Total throughput 2,022 2,038 2,510
=====================
Refining availability (%)(b) 79.9 90.9 95.2
=====================
Oil sales volumes (mb/d)
Refined products
UK 345 358 338
Rest of Europe 1,315 1,343 1,323
USA 1,599 1,559 1,648
Rest of World 567 573 621
-----------------------
Total marketing sales 3,826 3,833 3,930
Trading/supply sales 2,213 1,448 2,196
-----------------------
Total refined product sales 6,039 5,281 6,126
Crude oil 3,141 2,710 2,871
-----------------------
Total oil sales 9,180 7,991 8,997
=======================
Global Indicator Refining Margin ($/bbl)(c)
NWE 2.88 5.51 2.84
USGC 10.86 11.64 7.30
Midwest 4.89 7.91 3.84
USWC 11.22 8.90 12.88
Singapore 3.54 4.42 4.98
BP Average 6.28 7.60 5.94
=====================
Chemicals production (kte)
UK 303 281 317
Rest of Europe 842 811 806
USA 789 676 1,218
Rest of World 1,687 1,638 1,108
-----------------------
Total production 3,621 3,406 3,449
=======================
(a) Profit from continuing operations and includes profit after interest and
tax of equity-accounted entities.
(b) Refining availability is defined as the ratio of units which are available
for processing, regardless of whether they are actually being used, to total
capacity. Where there is planned maintenance, such capacity is not regarded as
being available. During the first quarter of 2006, there was planned
maintenance of a substantial part of the Texas City refinery.
(c) The Global Indicator Refining Margin (GIM) is the average of regional
indicator margins weighted for BP's crude refining capacity in each region. Each
regional indicator margin is based on a single representative crude with product
yields characteristic of the typical level of upgrading complexity. The regional
indicator margins may not be representative of the margins achieved by BP in any
period because of BP's particular refinery configurations and crude and product
slate.
Refining and Marketing
The replacement cost profit before interest and tax for the first quarter was
$1,612 million compared with $1,411 million for the same period last year. The
quarter's result includes a net non-operating gain of $564 million, primarily in
respect of net gains on divestments as described below. The non-operating charge
for the same period last year was $27 million.
Compared with the first quarter of 2005, realized refining margins were slightly
lower and overall marketing margins were similar. The major impact on the first
quarter's result was the margin loss and recommissioning costs associated with
the shutdown of our Texas City refinery. Compared with the first quarter of
2005, the reduction in the result in respect of the Texas City closure,
including the impact on associated businesses, was some $650 million. Relative
to the first quarter of 2005, this reduction was partly offset by improved
supply optimization and business improvements elsewhere. The quarter was also
adversely impacted by IFRS accounting effects.
The refining throughputs for the quarter were 2,022 mb/d compared with 2,510 mb/
d for the same quarter last year. The reduction in throughputs was mainly due to
the continued shutdown of our Texas City refinery. Recommissioning of the site
began at the end of March, with current throughput of 200 mb/d, and is expected
to continue in a phased manner for the remainder of the year, with the full
financial potential of the site not expected to be realized until 2007.
Excluding the Texas City refinery, refining availability for the first quarter
of 2006 was 96.0%.
Marketing sales of 3,826 mb/d compared with 3,930 mb/d for the corresponding
period in 2005 reflecting divestment activities.
During the first quarter of 2006, we completed the disposal of our shareholding
in Zhenhai Refining and Chemicals Company to Sinopec and completed the sale of
our Czech Republic retail network to Osterreichische Mineralol Verwaltung
Aktiengesellschaft (OMV).
Also during the quarter, BP sold its shareholding in Eiffage, the French based
construction company, and completed a restructuring of our Olympic Pipeline
ownership.
The rationalization programme for the European marketing businesses is being
implemented on schedule.
Gas, Power and Renewables
First Fourth First
Quarter Quarter Quarter
$ million 2006 2005 2005
=====================
Profit before interest and tax(a) 238 126 426
Inventory holding (gains) losses 63 3 (14)
---------------------
Replacement cost profit before interest and tax 301 129 412
=====================
Results include:
Impairment and gain (loss) on sale of
businesses and fixed assets - (26) 63
Environmental and other provisions - - -
Restructuring, integration and rationalization costs - - -
Fair value gain (loss) on embedded derivatives (55) (546) 42
Other - 265 -
---------------------
Total non-operating items (55) (307) 105
=====================
(a) Profit from continuing operations and includes profit after interest
and tax of equity-accounted entities.
The replacement cost profit before interest and tax for the first quarter was
$301 million compared with $412 million a year ago. The non-operating item for
the first quarter comprises fair value losses on embedded derivatives of $55
million. The corresponding quarter in 2005 contained fair value gains of $42
million on embedded derivatives and net gains of $63 million on the sales of
assets.
The first quarter's result is lower than the same period in 2005 primarily due
to negative impacts from non-operating items and IFRS fair value accounting
charges, partially offset by a higher contribution from marketing and trading.
In February, BP announced plans to build a 500 MW $1 billion hydrogen-fuelled
power plant alongside BP's Carson refinery near Los Angeles. The plant is
expected to generate enough low carbon power to serve 325,000 homes in South
California.
Other Businesses and Corporate
First Fourth First
Quarter Quarter Quarter
$ million 2006 2005 2005
=====================
Profit (loss) before interest and tax(a) (215) (409) (171)
Inventory holding (gains) losses (2) - -
---------------------
Replacement cost profit (loss) before interest
and tax (217) (409) (171)
=====================
Results include:
Impairment and gain (loss) on sale of
businesses and fixed assets 1 - -
Environmental and other provisions - (4) -
Restructuring, integration and rationalization costs - (57) (43)
Fair value gain (loss) on embedded derivatives 8 (3) (4)
Other - - -
---------------------
Total non-operating items 9 (64) (47)
=====================
(a) Profit from continuing operations and includes profit after interest and
tax of equity-accounted entities.
Other businesses and corporate comprises Finance, the group's aluminium asset,
interest income and costs relating to corporate activities. The first quarter's
result includes a net gain of $9 million in respect of non-operating items.
Dividends Payable
June March June
2006 2006 2005
=====================
Dividends per ordinary share
cents 9.375 9.375 8.50
pence 5.251 5.288 4.450
Dividends per ADS (cents) 56.25 56.25 51.0
-----------------------
BP today announced a dividend of 9.375 cents per ordinary share to be paid in
June. Holders of ordinary shares will receive 5.251 pence per share and holders
of American Depository Receipts (ADRs) $0.5625 per ADS share. The dividend is
payable on 5 June to shareholders on the register on 12 May. 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 5 June.
Outlook
BP Group Chief Executive, Lord Browne, concluded:
"World economic growth appears robust. The US appears to have rebounded in the
first quarter, Europe continues to show promise of an acceleration of growth,
and Asia and Latin America are growing at or around trend. The near-term global
outlook appears strong.
"Crude oil prices averaged $61.79 per barrel (Dated Brent) in the first quarter
of 2006, an increase of nearly $5 per barrel from the fourth quarter 2005 and
more than $14 per barrel above the same period last year. Prices rebounded in
face of a disruption of Nigerian supplies and heightened geopolitical concerns.
Ample inventories and increased OPEC production capacity have failed to stem the
increase. Oil prices are expected to remain strong.
"US natural gas prices averaged $9.01/mmbtu (Henry Hub first of month index) in
the first quarter, nearly $4/mmbtu below the fourth quarter of last year. Demand
weakness has more than offset supply lost following last year's hurricanes,
resulting in a substantial gain in inventories relative to seasonal norms. Mild
winter weather has contributed to demand softness. As a result, prices have
fallen below parity with residual fuel oil. US gas prices are expected to track
broadly with oil prices but are vulnerable to further relative declines if
demand remains weak.
"UK gas prices (National Balancing Point day-ahead) in the first quarter
averaged 70 pence per therm, up from 65.3 pence per therm in the fourth quarter
and 32 pence per therm above the same period last year. Cold weather and the
closure of the Rough storage facility in mid-March prompted a brief price spike
above 150 pence per therm amid concerns about physical supply availability.
Prompt prices have recently eased to around 40 pence per therm.
"Global average refining margins softened to $6.28/bbl in the first quarter
compared with $7.60/bbl in the fourth quarter of 2005. US refinery operations
are still recovering from last autumn's hurricanes and a heavy maintenance
programme has extended into the second quarter. So far in April, refining
margins have risen strongly in anticipation of the US driving season and the
impending switch from MTBE to ethanol-blended reformulated gasoline and are
likely to remain underpinned in the near term.
"During the first quarter, an initial improvement in retail margins reversed
resulting in an overall decline during the quarter. This was against a backdrop
of increasing product prices, particularly in February and March. A further rise
in wholesale gasoline and crude prices is evident in April and marketing margins
are expected to remain volatile.
"Recommissioning of the Texas City refinery commenced late in the first quarter
of 2006 with current throughput of 200 mb/d, and is expected to continue in a
phased manner for the remainder of the year.
"The UK Government's announced increase in the North Sea supplemental tax rate
will, when enacted, result in higher tax charges in subsequent quarters. This
increase will have two effects; first to create a one-time deferred tax charge
of around $600 million and second to increase the ongoing group effective tax
rate by 2%. The full year aggregate effective tax rate is expected to be around
39%.
"We expect production for 2006 to be consistent with our previously indicated
range of 4,100 to 4,200 mboe/d (at our planning assumption of $40/barrel), less
any 2006 disposal effects, and less any effects of prices above $40/barrel on
volumes in Production Sharing Contracts.
"Our strategy is unchanged. We continue to execute it with discipline and focus.
Capital expenditure excluding acquisitions is expected to be around $15
billion for the year with divestments in the region of $3 billion.
----------------------------------------------------------------------
The foregoing discussion, in particular the statements under "Outlook",
contains forward looking statements particularly those regarding the
bringing onstream of units at the Texas City refinery and the expected
timing of the realization of the full financial potential of that site;
the first lifting of oil from the BTC pipeline at Ceyhan, the timing of
production from the Thunder Horse platform; the expected timing of the
completion of sales in the Statfjord oil and gas field, our interest in
the Luva gas discovery and our remaining Gulf of Mexico Shelf assets;
the progress of implementation of the rationalization programme for the
European marketing businesses; the expected effect of low carbon power
produced from the planned hydrogen-fuelled power plant at Carson;
world economic growth; oil prices, US gas prices, refining margins, the
effect of the increase in the North Sea supplemental tax rate; the
aggregate effective tax rate; production; and capital expenditure. 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;
economic growth in relevant areas of the world; changes in governmental
regulations; exchange rate fluctuations; development and use of new
technology; 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 2005 and our 2004 Annual Report on Form 20-F filed
with the US Securities and Exchange Commission.
----------------------------------------------------------------------
BP p.l.c. and Subsidiaries
Summarized Group Income Statement
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
Sales and other operating revenues (Note 3) 67,082 64,708 54,743
Earnings from jointly controlled entities -
after interest and tax 573 835 486
Earnings from associates - after interest and tax 115 133 114
Interest and other revenues 198 229 166
-----------------------
Total revenues 67,968 65,905 55,509
Gain on sale of businesses and fixed assets 597 210 1,162
-----------------------
Total revenues and other income 68,565 66,115 56,671
Purchases 47,613 45,541 36,441
Production and manufacturing expenses 5,217 6,118 4,702
Production and similar taxes (Note 4) 932 830 649
Depreciation, depletion and amortization 2,184 2,351 2,147
Impairment and losses on sale of businesses and
fixed assets 23 124 186
Exploration expense (Note 4) 189 208 160
Distribution and administration expenses 3,096 4,013 3,224
Fair value (gain) loss on embedded derivatives 442 1,350 122
-----------------------
Profit before interest and taxation from
continuing operations 8,869 5,580 9,040
Finance costs (Note 5) 191 172 172
Other finance (income) expense (Note 6) (48) 43 30
-----------------------
Profit before taxation from continuing operations 8,726 5,365 8,838
Taxation 2,929 2,029 2,479
-----------------------
Profit from continuing operations 5,797 3,336 6,359
Profit (loss) from Innovene operations (Note 2) (103) 442 304
-----------------------
Profit for the period 5,694 3,778 6,663
=======================
Attributable to:
BP shareholders 5,623 3,685 6,602
Minority interest 71 93 61
-----------------------
5,694 3,778 6,663
=======================
Earnings per share - cents
Profit for the period attributable to BP shareholders
Basic 27.40 17.90 30.79
Diluted 27.13 17.68 30.36
Profit from continuing operations attributable
to BP shareholders
Basic 27.90 15.82 29.37
Diluted 27.63 15.62 28.97
Summarized Group Balance Sheet
31 March 31 December
2006 2005
=====================
$ million
Non-current assets
Property, plant and equipment 85,487 85,947
Goodwill 10,322 10,371
Other intangible assets 4,887 4,772
Investments in jointly controlled entities 15,007 13,556
Investments in associates 5,371 6,217
Other investments 700 967
---------------------
Fixed assets 121,774 121,830
Loans 849 821
Other receivables 875 770
Derivative financial instruments 3,278 3,652
Prepayments and accrued income 1,524 1,269
Defined benefit pension plan surplus 3,469 3,282
---------------------
131,769 131,624
---------------------
Current assets
Loans 125 132
Inventories 18,823 19,760
Trade and other receivables 39,757 40,902
Derivative financial instruments 8,381 9,726
Prepayments and accrued income 3,918 1,598
Current tax receivable 222 212
Cash and cash equivalents 2,939 2,960
---------------------
74,165 75,290
Assets classified as held for sale 1,160 -
---------------------
75,325 75,290
---------------------
Total assets 207,094 206,914
=====================
Current liabilities
Trade and other payables 42,712 42,136
Derivative financial instruments 7,553 9,083
Accruals and deferred income 6,852 5,970
Finance debt 9,222 8,932
Current tax payable 3,909 4,274
Provisions 1,097 1,102
---------------------
71,345 71,497
---------------------
Non-current liabilities
Other payables 1,812 1,935
Derivative financial instruments 3,159 3,696
Accruals and deferred income 4,112 3,164
Finance debt 9,457 10,230
Deferred tax liabilities 17,066 16,443
Provisions 9,527 9,954
Defined benefit pension plan and other
post-retirement benefit plan deficits 9,336 9,230
---------------------
54,469 54,652
Liabilities directly associated with the assets
classified as held for sale 399 -
---------------------
54,868 54,652
---------------------
Total liabilities 126,213 126,149
---------------------
Net assets 80,881 80,765
=====================
Equity
BP shareholders' equity 80,148 79,976
Minority interest 733 789
---------------------
80,881 80,765
=====================
Movement in BP Shareholders' Equity
Movement in BP shareholders' equity $ million
At 31 December 2005 79,976
Profit for the period 5,623
Distribution to shareholders (1,922)
Currency translation differences (net of tax) 251
Repurchase of ordinary share capital (3,999)
Issue of ordinary share capital for employee share schemes 228
Purchase of shares by ESOP trusts (90)
Share-based payments (net of tax) 118
Available-for-sale investments (net of tax) (126)
Cash flow hedges (net of tax) 89
------
At 31 March 2006 80,148
======
Summarized Group Cash Flow Statement
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
Operating activities
Profit before taxation from continuing operations 8,726 5,365 8,838
Adjustments to reconcile profits before tax to
net cash provided by operating activities
Exploration expenditure written off 114 81 84
Depreciation, depletion and amortization 2,183 2,351 2,147
Impairment and (gain) loss on sale of businesses
and fixed assets (574) (86) (976)
Earnings from jointly controlled entities
and associates (688) (968) (600)
Dividends received from jointly controlled
entities and associates 1,011 844 355
Working capital and other movements (1,849) (4,171) (886)
-----------------------
Net cash provided by operating activities of
continuing operations 8,923 3,416 8,962
Net cash provided by (used in) operating
activities of Innovene operations - 823 412
-----------------------
Net cash provided by operating activities 8,923 4,239 9,374
-----------------------
Investing activities
Capital expenditure (3,295) (3,476) (2,825)
Acquisitions, net of cash acquired - (60) -
Investment in jointly controlled entities - (132) (15)
Investment in associates (157) (252) (99)
Proceeds from disposal of fixed assets 484 825 1,327
Proceeds from disposal of businesses 166 8,397 -
Proceeds from loan repayments 72 32 32
Other - 93 -
-----------------------
Net cash (used in) provided by investing activities (2,730) 5,427 (1,580)
-----------------------
Financing activities
Net repurchase of shares (3,861) (3,687) (1,933)
Proceeds from long-term financing 396 685 811
Repayments of long-term financing (65) (1,197) (2,192)
Net increase (decrease) in short-term debt (710) (2,423) (2,166)
Dividends paid - BP shareholders (1,922) (1,856) (1,823)
- Minority interest (66) (405) (320)
-----------------------
Net cash used in financing activities (6,228) (8,883) (7,623)
-----------------------
Currency translation differences relating to
cash and cash equivalents 14 (5) (9)
========================
Increase (decrease) in cash and cash equivalents (21) 778 162
Cash and cash equivalents at beginning of period 2,960 2,182 1,359
-----------------------
Cash and cash equivalents at end of period 2,939 2,960 1,521
=======================
Summarized Group Cash Flow Statement
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
Working capital and other movements
Interest receivable (130) (228) (63)
Interest received 146 208 34
Finance costs 191 172 172
Interest paid (310) (292) (332)
Other finance expense (48) 43 30
Share-based payments 83 56 77
Net operating charge for pensions and other
post-retirement benefits, less contributions (50) (398) (10)
Net charge for provisions, less payments (207) (284) (63)
(Increase) decrease in inventories 1,008 (318) (797)
(Increase) decrease in other current and
non-current receivables 335 (386) (1,317)
Increase (decrease) in other current and
non-current payables (106) 300 2,367
Income taxes paid (2,761) (3,044) (984)
-----------------------
(1,849) (4,171) (886)
=======================
Group Statement of Recognized Income and Expense
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
Currency translation differences 153 (308) (752)
Exchange gain on translation of foreign operations
transferred to gain or loss on sale of businesses
and fixed assets - (315) -
Actuarial gain relating to pensions and other
post-retirement benefits - 975 -
Available-for-sale investments marked to market 197 236 2
Available-for-sale investments - recycled to
the income statement (346) - (43)
Cash flow hedges marked to market 57 (48) (60)
Cash flow hedges - recycled to the income statement 57 43 (7)
Taxation 61 (295) 56
-----------------------
Net income recognized directly in equity 179 288 (804)
Profit for the period 5,694 3,778 6,663
-----------------------
Total recognized income and expense relating to
the period 5,873 4,066 5,859
=======================
Attributable to:
BP shareholders 5,802 3,973 5,798
Minority interest 71 93 61
-----------------------
5,873 4,066 5,859
=======================
Change in accounting policy - adoption of
IAS 32 and 39 on 1 January 2005
(wholly attributable to BP shareholders) - - (243)
=======================
Capital Expenditure and Acquisitions
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
By business
Exploration and Production
UK 182 211 176
Rest of Europe 69 79 31
USA 1,021 1,001 997
Rest of World 1,428 1,671 1,097
-----------------------
2,700 2,962 2,301
-----------------------
Refining and Marketing
UK 61 203 43
Rest of Europe 65 291 67
USA 258 535 190
Rest of World 107 379 46
-----------------------
491 1,408 346
-----------------------
Gas, Power and Renewables
UK 1 10 1
Rest of Europe 5 15 1
USA 20 42 13
Rest of World 14 57 6
-----------------------
40 124 21
-----------------------
Other businesses and corporate
UK 19 90 75
Rest of Europe - 71 20
USA 8 131 64
Rest of World - 4 1
-----------------------
27 296 160
-----------------------
3,258 4,790 2,828
=======================
By geographical area
UK 263 514 295
Rest of Europe 139 456 119
USA 1,307 1,709 1,264
Rest of World 1,549 2,111 1,150
-----------------------
3,258 4,790 2,828
=======================
Included above:
Acquisitions and asset exchanges 10 60 85
Innovene operations - 140 129
=======================
Exchange rates
US dollar/sterling average rate for the period 1.75 1.75 1.89
US dollar/sterling period-end rate 1.75 1.73 1.88
US dollar/euro average rate for the period 1.20 1.19 1.31
US dollar/euro period-end rate 1.21 1.18 1.30
-----------------------
Analysis of Profit Before Interest and Tax
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
By business
Exploration and Production
UK 1,165 (295) 911
Rest of Europe 303 398 1,328
USA 2,304 2,972 2,008
Rest of World 3,044 3,499 2,242
-----------------------
6,816 6,574 6,489
-----------------------
Refining and Marketing
UK (155) (590) (251)
Rest of Europe 686 (266) 835
USA 828 (316) 1,425
Rest of World 679 99 344
-----------------------
2,038 (1,073) 2,353
-----------------------
Gas, Power and Renewables
UK (72) (157) 118
Rest of Europe 7 (19) 6
USA 168 141 176
Rest of World 135 161 126
-----------------------
238 126 426
-----------------------
Other businesses and corporate
UK (141) (141) (179)
Rest of Europe (1) (124) 4
USA (104) (22) (9)
Rest of World 31 (122) 13
-----------------------
(215) (409) (171)
-----------------------
8,877 5,218 9,097
Unrealized profit in inventory (8) 234 (153)
Net profit on transactions between continuing
and Innovene operations - 128 96
-----------------------
Total for continuing operations 8,869 5,580 9,040
-----------------------
Innovene operations
UK (55) 490 58
Rest of Europe (21) (1) 366
USA 7 (42) 112
Rest of World (27) 21 (4)
-----------------------
(96) 468 532
Net profit on transactions between continuing
and Innovene operations - (128) (96)
-----------------------
Total for Innovene operations (96) 340 436
-----------------------
Total for period 8,773 5,920 9,476
=======================
By geographical area
UK 772 (1,039) 605
Rest of Europe 995 31 2,246
USA 3,245 2,974 3,464
Rest of World 3,857 3,614 2,725
-----------------------
Total for continuing operations 8,869 5,580 9,040
=======================
Analysis of Replacement Cost Profit
Before Interest and Tax
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
By business
Exploration and Production
UK 1,165 (295) 911
Rest of Europe 303 398 1,328
USA 2,311 2,964 2,003
Rest of World 3,044 3,499 2,242
-----------------------
6,823 6,566 6,484
-----------------------
Refining and Marketing
UK (148) (516) (272)
Rest of Europe 564 (170) 423
USA 637 354 999
Rest of World 559 167 261
-----------------------
1,612 (165) 1,411
-----------------------
Gas, Power and Renewables
UK (72) (157) 118
Rest of Europe 1 (18) 6
USA 178 147 167
Rest of World 194 157 121
-----------------------
301 129 412
-----------------------
Other businesses and corporate
UK (141) (141) (179)
Rest of Europe (3) (124) 4
USA (104) (22) (9)
Rest of World 31 (122) 13
-----------------------
(217) (409) (171)
-----------------------
8,519 6,121 8,136
Unrealized profit in inventory (8) 234 (153)
Net profit on transactions between continuing
and Innovene operations - 128 96
-----------------------
Total for continuing operations 8,511 6,483 8,079
-----------------------
Innovene operations
UK (55) 428 (13)
Rest of Europe (21) (4) 305
USA 7 (127) 90
Rest of World (27) 15 -
-----------------------
(96) 312 382
Net profit on transactions between continuing
and Innovene operations - (128) (96)
-----------------------
Total for Innovene operations (96) 184 286
-----------------------
Total for period 8,415 6,667 8,365
=======================
By geographical area
UK 779 (965) 585
Rest of Europe 865 128 1,834
USA 3,071 3,643 3,028
Rest of World 3,796 3,677 2,632
-----------------------
Total for continuing operations 8,511 6,483 8,079
=======================
Analysis of Non-operating Items
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
By business
Exploration and Production
UK (394) (975) (290)
Rest of Europe - 6 1,027
USA 2 (121) (1)
Rest of World 6 111 44
-----------------------
(386) (979) 780
-----------------------
Refining and Marketing
UK 20 (8) 8
Rest of Europe 229 (33) 1
USA 96 118 5
Rest of World 219 (27) (41)
-----------------------
564 50 (27)
-----------------------
Gas, Power and Renewables
UK (55) (306) 105
Rest of Europe - - -
USA - - -
Rest of World - (1) -
-----------------------
(55) (307) 105
-----------------------
Other businesses and corporate
UK - (57) (42)
Rest of Europe - - (1)
USA 9 (7) (4)
Rest of World - - -
-----------------------
9 (64) (47)
-----------------------
Total before taxation for continuing operations 132 (1,300) 811
Taxation credit (charge) (46) 421 (255)
-----------------------
Total after taxation for continuing operations 86 (879) 556
-----------------------
Innovene operations
UK (55) 242 (24)
Rest of Europe (21) (49) -
USA 7 (51) -
Rest of World (27) (6) -
-----------------------
Total before taxation for Innovene operations (a) (96) 136 (24)
Taxation credit (charge) (7) 190 10
-----------------------
Total after taxation for Innovene operations (103) 326 (14)
-----------------------
Total after taxation for period (17) (553) 542
=======================
(a) Includes the loss on re-measurement to fair value of $96 million in
the first quarter of 2006 and $(133) million in the fourth quarter of
2005, impairment charges of $24 million in the first quarter of 2005,
and a gain on disposal of $3 million in the fourth quarter of 2005.
Depreciation of Fixed Asset Revaluation Adjustment
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
Exploration and Production
UK 8 7 8
USA 55 62 76
Rest of World 5 5 5
-----------------------
68 74 89
-----------------------
Refining and Marketing
USA 25 26 25
-----------------------
25 26 25
-----------------------
Gas, Power and Renewables
USA 6 5 6
-----------------------
6 5 6
-----------------------
Total depreciation of revaluation adjustment(a)(b) 99 105 120
=======================
(a) Relates to the revaluation adjustment consequent upon the ARCO
acquisition.
(b) Excludes impairment of the revaluation adjustment which is included in
non-operating items.
Net Debt Ratio - Net Debt: Net Debt + Equity
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
Gross debt 18,679 19,162 19,564
Cash and cash equivalents 2,939 2,960 1,521
-----------------------
Net debt 15,740 16,202 18,043
=======================
Equity 80,881 80,765 79,911
Net debt ratio 16% 17% 18%
=======================
Production and Realizations
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
Production(a)
Crude oil (mb/d) (net of royalties)
UK 268 244 288
Rest of Europe 64 69 76
USA 444 432 560
Rest of World 1,584 1,655 1,481
-----------------------
Total crude oil production 2,360 2,400 2,405
=======================
Natural gas liquids (mb/d) (net of royalties)
UK 13 16 17
Rest of Europe 4 4 5
USA 122 111 135
Rest of World 34 33 31
-----------------------
Total natural gas liquids production 173 164 188
=======================
Liquids (b) (mb/d) (net of royalties)
UK 281 260 305
Rest of Europe 68 73 81
USA 566 543 695
Rest of World 1,618 1,688 1,512
-----------------------
Total liquids production 2,533 2,564 2,593
=======================
Natural gas (mmcf/d) (net of royalties)
UK 1,196 1,156 1,242
Rest of Europe 94 107 121
USA 2,485 2,359 2,648
Rest of World 4,938 4,836 4,734
-----------------------
Total natural gas production 8,713 8,458 8,745
=======================
Average realizations (c)
Crude oil ($/bbl)
UK 60.57 54.70 45.54
USA 58.27 57.40 43.20
Rest of World 56.18 49.93 41.49
BP Average 58.25 53.92 43.37
=======================
Natural gas liquids ($/bbl)
UK 48.19 43.68 29.82
USA 33.25 37.78 26.98
Rest of World 37.05 42.10 31.24
BP Average 35.47 39.29 28.14
=======================
Liquids ($/bbl) (b)
UK 60.00 54.02 44.68
USA 53.79 53.98 40.56
Rest of World 55.02 49.51 40.83
BP Average 55.88 52.44 41.74
=======================
Natural gas ($/mcf)
UK 7.87 6.96 5.58
USA 6.91 9.48 5.31
Rest of World 3.94 4.08 3.10
BP Average 5.54 6.24 4.26
=======================
(a) Includes BP's share of production of equity-accounted entities.
(b) Crude oil and natural gas liquids.
(c) Based on sales of consolidated subsidiaries only - this excludes
equity-accounted entities.
Notes
1. Resegmentation
With effect from 1 January 2006 the following changes to the business
segment boundaries have been implemented:
(a) Following the sale of Innovene to INEOS in December 2005, the
transfer of three equity-accounted entities (Shanghai SECCO
Petrochemical Company Limited in China and Polyethylene Malaysia
Sdn Bhd (PEMSB) and Ethylene Malaysia Sdn Bhd (EMSB), both in
Malaysia), previously reported in Other businesses and corporate,
to Refining and Marketing.
(b) The formation of BP Alternative Energy in November 2005 has
resulted in the transfer of certain mid-stream assets and
activities to Gas, Power and Renewables:
- South Houston Green Power (SHGP) co-generation facility (in
Texas City refinery) from Refining and Marketing.
- Watson Cogeneration (in Carson City refinery) from Refining and
Marketing.
- Phu My Phase 3 CCGT plant in Vietnam from Exploration and
Production.
(c) The transfer of Hydrogen for Transport activities from Gas, Power
and Renewables to Refining and Marketing.
Comparative financial data is shown after resegmentation.
Restated Reported
-----------------------------------
Fourth First Fourth First
Quarter Quarter Quarter Quarter
2005 2005 2005 2005
-----------------------------------
$ million
Sales and other operating
revenues
Exploration and Production 14,769 10,186 14,769 10,186
Refining and Marketing 53,969 47,722 53,979 47,762
Gas, Power and Renewables 7,997 7,145 7,987 7,105
Other businesses and corporate 161 172 161 172
-----------------------------------
76,896 65,225 76,896 65,225
===================================
Profit before interest and tax
Exploration and Production 6,574 6,489 6,575 6,491
Refining and Marketing (1,073) 2,353 (1,068) 2,363
Gas, Power and Renewables 126 426 114 418
Other businesses and corporate (409) (171) (403) (175)
-----------------------------------
Profit before interest and tax 5,218 9,097 5,218 9,097
===================================
Notes
2. Sale of Olefins and Derivatives business
The sale of Innovene, BP's olefins, derivatives and refining group, to
INEOS, was completed on 16 December, 2005.
The Innovene operations represented a separate major line of business
for BP. As a result of the sale, these operations were treated as
discontinued operations for the year ended 31 December 2005. A single
amount was shown on the face of the income statement comprising the
post-tax result of discontinued operations and the post-tax loss
recognized on the remeasurement to fair value less costs to sell of the
discontinued operation. That is, the income and expenses of Innovene
were reported separately from the continuing operations of the BP
group. The table below provides further detail of the amount shown on
the income statement.
In the cash flow statement the cash provided by the operating
activities of Innovene in 2005 has been separated from that of the rest
of the group and reported as a single line item.
First quarter 2006 includes a loss of $96 million related mainly to
post-closing working capital adjustments. We anticipate further
adjustments during the second quarter 2006.
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
Profit before tax from Innovene operations - 335 532
Net profit on transactions between continuing
and Innovene operations - (128) (96)
-----------------------
Profit before interest and taxation - 207 436
Other finance income (expense) - 1 1
(Loss)/gain recognized on the re-measurement
to fair value (96) 133 -
-----------------------
(96) 341 437
Taxation
Related to profit before tax - (86) (133)
Related to re-measurement to fair value (7) 187 -
-----------------------
Profit (loss) from Innovene operations (103) 442 304
=======================
Notes
3. Sales and other operating revenues
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
By business
Exploration and Production 13,918 14,769 10,186
Refining and Marketing 56,605 53,969 47,722
Gas, Power and Renewables 8,279 7,997 7,145
Other businesses and corporate 206 161 172
-----------------------
Sales by continuing operations 79,008 76,896 65,225
Less: sales between businesses 11,926 10,595 8,369
sales to Innovene operations - 1,593 2,113
-----------------------
Third party sales of continuing operations 67,082 64,708 54,743
-----------------------
Innovene sales - 3,509 5,343
Less: sales to continuing operations - 1,445 1,534
-----------------------
Third party sales of Innovene operations - 2,064 3,809
-----------------------
Total third party sales 67,082 66,772 58,552
=======================
By geographical area
UK 27,865 18,204 19,821
Rest of Europe 18,374 14,661 15,824
USA 25,728 23,185 23,395
Rest of World 18,375 20,693 12,725
-----------------------
Sales by continuing operations 90,342 76,743 71,765
Less: sales between areas 23,260 10,442 14,909
sales to Innovene operations - 1,593 2,113
-----------------------
67,082 64,708 54,743
=======================
4. Profit before interest and taxation is after charging:
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
Exploration expense
UK 7 11 5
Rest of Europe - - 1
USA 66 117 103
Rest of World 116 80 51
-----------------------
189 208 160
=======================
Production and similar taxes (a)
UK 235 133 114
Overseas 697 697 535
-----------------------
932 830 649
=======================
(a) Production taxes are charged against Exploration and Production's
profit before interest and taxation.
Notes
5. Finance costs
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
Interest payable 293 278 191
Capitalized (102) (106) (76)
-----------------------
191 172 115
Early redemption of finance leases - - 57
-----------------------
191 172 172
=======================
6. Other finance (income) expense
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
Interest on pension and other post-retirement
benefit plan liabilities 471 497 514
Expected return on pension and other
post-retirement benefit plan assets (582) (521) (547)
-----------------------
Interest net of expected return on plan assets (111) (24) (33)
Unwinding of discount on provisions 54 57 45
Unwinding of discount on deferred consideration
for acquisition of investment in TNK-BP 9 9 17
-----------------------
(48) 42 29
Innovene operations - 1 1
-----------------------
Continuing operations (48) 43 30
=======================
7. Dividends paid
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
Dividends per ordinary share
cents 9.375 8.925 8.50
pence 5.288 5.061 4.522
Dividends per ADS (cents) 56.25 53.55 51.0
=======================
Notes
8. Analysis of changes in net debt
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
$ million
Opening balance
Finance debt 19,162 22,159 23,091
Less: Cash and cash equivalents 2,960 2,182 1,359
-----------------------
Opening net debt 16,202 19,977 21,732
-----------------------
Closing balance
Finance debt 18,679 19,162 19,564
Less: Cash and cash equivalents 2,939 2,960 1,521
-----------------------
Closing net debt 15,740 16,202 18,043
-----------------------
Decrease (increase) in net debt 462 3,775 3,689
=======================
Movement in cash and cash equivalents
(excluding exchange adjustments) (35) 783 171
Net cash outflow (inflow) from financing
(excluding share capital) 379 2,936 3,547
Adoption of IAS 39 - - (147)
Fair value hedge adjustment 82 48 98
Other movements 32 11 49
-----------------------
Movement in net debt before exchange effects 458 3,778 3,718
Exchange adjustments 4 (3) (29)
-----------------------
Decrease (increase) in net debt 462 3,775 3,689
=======================
Notes
9. TNK-BP Operational and Financial Information
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
Production (Net of royalties) (BP share)
Crude oil (mb/d) 896 936 875
Natural gas (mmcf/d) 567 530 527
Total hydrocarbons (mboe/d)(a) 994 1,027 966
=======================
$ million
Income statement (BP share)
Profit before interest and tax 852 1,029 615
Interest expense * (43) (30) (29)
Taxation (350) (234) (167)
Minority interest (41) (31) (8)
-----------------------
Net Income(b) 418 734 411
=======================
* Excludes unwinding of discount on deferred
consideration 9 9 17
=======================
Cash Flow
Dividends received 771 525 250
Dividends receivable - 771 -
=======================
First Fourth First
Quarter Quarter Quarter
2006 2005 2005
=======================
Average oil marker prices ($/bbl)
Urals (NWE - cif) 58.15 53.23 42.54
Urals (Med - cif) 58.26 54.07 43.21
Domestic Oil 35.27 31.73 19.14
=======================
Balance sheet 31 March 31 December
2006 2005
=======================
Investments in jointly controlled entities 8,506 8,089
=======================
Deferred consideration
Due within one year 1,236 1,227
Due after more than one year - -
-----------------------
1,236 1,227
=======================
(a) Natural gas is converted to oil equivalent at 5.8 billion cubic
feet = 1 million barrels.
(b) Fourth quarter 2005 includes a net gain of $270 million on the
disposal of non-core producing assets in the Saratov region, along
with the Orsk refinery.
As reported in previous quarters, various TNK-BP companies have received tax
notifications. Upon entering into the joint venture arrangement, each party
received indemnities from its co-venturers in respect of historical tax
liabilities related to assets contributed to the joint venture. BP believes its
provisions are adequate for its share of any liabilities arising from tax claims
not covered by these indemnities.
Notes
10. Equity-accounted entities
The group's profit for the period includes the following in respect of
equity-accounted entities.
RC profit Profit
(loss) Inventory (loss)
before holding before
interest gains interest
and tax (losses) and tax
---------------------------------------
$ million
First Quarter 2006
Exploration and Production 1,149 - 1,149
Refining and Marketing 95 6 101
Gas, Power and Renewables 29 - 29
Other businesses and corporate (2) - (2)
---------------------------------------
Continuing operations 1,271 6 1,277
Innovene operations - - -
---------------------------------------
1,271 6 1,277
=======================================
Fourth Quarter 2005
Exploration and Production 1,291 - 1,291
Refining and Marketing 88 8 96
Gas, Power and Renewables 27 - 27
Other businesses and corporate - - -
---------------------------------------
Continuing operations 1,406 8 1,414
Innovene operations (17) - (17)
---------------------------------------
1,389 8 1,397
=======================================
First Quarter 2005
Exploration and Production 839 - 839
Refining and Marketing 75 (4) 71
Gas, Power and Renewables 7 - 7
Other businesses and corporate - - -
---------------------------------------
Continuing operations 921 (4) 917
Innovene operations - - -
---------------------------------------
921 (4) 917
=======================================
Notes
10. Equity-accounted entities (continued)
Profit
(loss)
Minority for the
Interest Tax interest period
----------------------------------------
$ million
First Quarter 2006
Exploration and Production (72) (439) (41) 597
Refining and Marketing (19) (10) - 72
Gas, Power and Renewables (4) (4) - 21
Other businesses and corporate - - - (2)
---------------------------------------
Continuing operations (95) (453) (41) 688
Innovene operations - - - -
---------------------------------------
(95) (453) (41) 688
=======================================
Fourth Quarter 2005
Exploration and Production (56) (313) (30) 892
Refining and Marketing (18) (27) - 51
Gas, Power and Renewables (1) (1) - 25
Other businesses and corporate - - - -
---------------------------------------
Continuing operations (75) (341) (30) 968
Innovene operations - - - (17)
---------------------------------------
(75) (341) (30) 951
=======================================
Fourth Quarter 2005
Exploration and Production (52) (227) (8) 552
Refining and Marketing (8) (18) - 45
Gas, Power and Renewables (2) (2) - 3
Other businesses and corporate - - - -
---------------------------------------
Continuing operations (62) (247) (8) 600
Innovene operations - - - -
---------------------------------------
(62) (247) (8) 600
=======================================
Notes
11. Second quarter results
BP's second quarter results will be announced on 25 July 2006.
12. Statutory accounts
The financial information shown in this publication is unaudited and
does not constitute statutory accounts. The 2005 Annual Report and
Accounts have been delivered to the UK Registrar of Companies; the
report of the auditors on those accounts (in accordance with section
235 of the Companies Act 2005) was unqualified.
Contacts
London United States
Press Office Roddy Kennedy Ronnie Chappell
+44 (0)20 7496 4624 +1 281 366 5174
Investor Relations Fergus MacLeod 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: 25 April, 2006 /s/ D. J. PEARL
..............................
D. J. PEARL
Deputy Company Secretary