UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

for the period ended 30 June 2009
Commission File Number 1-06262

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 of Form 20-F or Form 40-F.

Form 20-F þ                    Form 40-F o

     Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): o

     Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): o

     Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes o                    No þ

     If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-

THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE PROSPECTUS INCLUDED IN THE REGISTRATION STATEMENT ON FORM F-3 (FILE NO. 333-157906) OF BP CAPITAL MARKETS p.l.c. AND BP p.l.c.; THE PROSPECTUS INCLUDED IN THE REGISTRATION STATEMENT ON FORM F-3 (FILE NO. 333-155798) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 33-21868) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-79399) OF BP p.l.c.,THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-67206) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-103924) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-102583) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-103923) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-119934) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-123482) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-123483) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-131583) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-131584) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO 333-132619) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-146868) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-146870) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-146873) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-149778) OF BP p.l.c., AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.

 

 

BP p.l.c. AND SUBSIDIARIES
FORM 6-K FOR THE PERIOD ENDED 30 JUNE 2009*

				Page
1.		Management’s Discussion and Analysis of Financial Condition and Results of Operations for the period January-June 2009			3-9, 16-18
2.		Consolidated Financial Statements including Notes to Consolidated Financial Statements for the period January-June 2009			10-15, 20-29
3.		Environmental, Operating and Other Information			19
4.		Signatures			30
5.		Exhibit 99.1: Computation of ratio of earnings to fixed charges			31
		Exhibit 99.2: Capitalization and indebtedness			32

Group results second quarter and half year 2009

Second quarter										First half
2008				2009						2009				2008
								$ million
	108,747				54,777			Sales and other operating revenues			102,073				196,492
	9,358				4,385			Profit for the period(a)			6,947				16,452
	49.70				23.41			— per ordinary share (cents)			37.10				87.28
	2.98				1.40			— per ADS (dollars)			2.23				5.23

•		The following discussion should be read in conjunction with the consolidated financial statements and related notes provided elsewhere in this Form 6-K and with the information, including the consolidated financial statements and related notes, for the year ended 31 December 2008 in BP’s Annual Report on Form 20-F for the year ended 31 December 2008.
•		BP’s second quarter profit was $4,385 million, compared with $9,358 million a year ago, a decrease of 53%. For the half year, profit was $6,947 million compared with $16,452 million a year ago, down 58%. The second quarter profit included inventory holding gains, after their associated tax effect, of $1,245 million compared with gains of $2,612 million in the same quarter last year. For the half year, inventory holding gains, after their associated tax effect, were $1,420 million compared with $3,475 million in the first half of 2008. See footnote (c) on page 15 for further information.
•		The second quarter result included a net credit of $196 million for non-operating items compared with a net charge of $1,428 million in the second quarter of 2008. For the half year, the respective amounts were a net charge of $29 million and a net charge of $1,332 million — see further details on page 16. Fair value accounting effects for the second quarter in Exploration and Production and Refining and Marketing had a net $6 million favourable impact compared to a net $347 million unfavourable impact in the second quarter of 2008. For the half year, the respective amounts were $37 million favourable and $447 million unfavourable — see further details on page 17. Information on fair value accounting effects is non-GAAP.
•		Finance costs and net finance income or expense relating to pensions and other post-retirement benefits were $321 million for the second quarter, compared to $221 million for the same period last year. For the half year, the respective amounts were $689 million and $467 million. The net increase in cost was primarily due to a reduction in the expected return on pension plan assets.
•		The effective tax rate on group profit for the second quarter and half year was 35% and 36% respectively, the same as a year ago.
•		Net cash provided by operating activities for the quarter and half year was $6.8 billion and $12.3 billion compared with $6.7 billion and $17.6 billion respectively a year ago.
•		Net debt at the end of the quarter was $27.1 billion. The ratio of net debt to net debt plus equity was 22% compared with 20% a year ago. Net debt information is non-GAAP and is defined on page 4. Gross debt at the end of the quarter was $36.2 billion compared to $30.2 billion a year ago. The ratio of gross debt to gross debt plus equity was 27%, compared with 22% a year ago.
•		Total capital expenditure for the second quarter and half year was $4.8 billion and $9.4 billion respectively. Capital expenditure, excluding acquisitions and asset exchanges, is expected to be less than $20 billion for the year. Disposal proceeds were $0.7 billion for the quarter and $1.0 billion for the half year.
•		The quarterly dividend, to be paid in September, is 14 cents per share ($0.84 per ADS), the same as a year ago. In sterling terms, the quarterly dividend is 8.503 pence per share, compared with 7.039 pence per share a year ago, an increase of 21%.

The commentaries above and following should be read in conjunction with the cautionary statement on page 9.

Per share amounts

Second quarter										First half
2008				2009						2009				2008
								Per ordinary share (cents)(a)
	49.70				23.41			Profit for the period			37.10				87.28
								Per ADS (dollars)(a)
	2.98				1.40			Profit for the period			2.23				5.23

Net debt ratio — net debt: net debt + equity

Second quarter										First half
2008				2009						2009				2008
								$ million
	30,189				36,240			Gross debt			36,240				30,189
	900				179			Less: fair value asset (liability) of hedges related to finance debt			179				900
	29,289				36,061						36,061				29,289
	3,593				8,959			Cash and cash equivalents			8,959				3,593
	25,696				27,102			Net debt			27,102				25,696
	105,965				96,949			Equity			96,949				105,965
	20	%			22	%		Net debt ratio			22	%			20	%

Net debt and net debt ratio are non-GAAP measures. Net debt includes the fair value of associated derivative financial instruments that are used to hedge foreign exchange and interest rate risks relating to finance debt, for which hedge accounting is claimed. The derivatives are reported on the balance sheet within the headings ‘Derivative financial instruments’. We believe that net debt and net debt ratio provide useful information to investors. Net debt enables investors to see the economic effect of gross debt, related hedges and cash and cash equivalents in total. The net debt ratio enables investors to see how significant net debt is relative to equity from shareholders.

Dividends

Dividends payable

BP announced a dividend of 14 cents per ordinary share to be paid in September. Holders of ordinary shares will receive 8.503 pence per share and holders of American Depositary Receipts $0.84 per ADS. The dividend is payable on 8 September 2009 to shareholders on the register, and to ADR holders of record, on 14 August 2009. 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 8 September 2009.

Dividends paid

Second quarter										First half
2008				2009						2009				2008
								Dividends paid per ordinary share
	13.525				14.000			cents			28.000				27.050
	6.830				9.584			pence			19.402				13.643
	81.15				84.00			Dividends paid per ADS (cents)			168.00				162.30

Exploration and Production

Second quarter										First half
2008				2009						2009				2008
								$ million
	24,507				12,848			Sales and other operating revenues			25,191				47,429
	10,771				5,046			Replacement cost profit before interest and tax(a)(b)			9,366				20,843
								By region
	3,601				1,161			US			2,304				6,686
	7,170				3,885			Non-US			7,062				14,157
	10,771				5,046						9,366				20,843

(a)		Equity-accounted entities are included after interest and tax.
(b)		See page 15 for information on replacement cost reporting for operating segments.

Sales and other operating revenues for the second quarter and half year were $13 billion and $25 billion respectively, compared with $25 billion and $47 billion for the corresponding periods in 2008. The decreases for both the quarter and half year were primarily due to lower realizations. Gas and NGLs marketing sales, which are included in sales and other operating revenues, also decreased compared with the equivalent periods of 2008.

The replacement cost profit before interest and tax for the second quarter and half year was $5,046 million and $9,366 million respectively, decreases of 53% and 55% compared to the same periods in 2008. The decreases in both periods were primarily due to lower realizations and lower earnings from equity-accounted entities, primarily TNK-BP due to lower prices and the effect of lagged tax reference prices. Additionally, the results for both periods reflected higher depreciation but benefited from the impact of higher reported volumes and lower costs, with unit production costs 12% lower than in the second quarter of 2008.

In addition, the second quarter and half year benefited from net non-operating gains of $507 million and $818 million respectively, primarily related to gains on the sale of operations and fair value gains on embedded derivatives. The corresponding periods in 2008 included net non-operating losses of $1,976 million and $2,352 million respectively. In the second quarter and half year, fair value accounting effects had favourable impacts of $135 million and $293 million respectively compared with unfavourable impacts of $373 million and $632 million in the same periods of last year.

Reported production for the quarter was 2,706mboe/d for subsidiaries and 1,299mboe/d for equity-accounted entities. In total, this was more than 4% higher than the second quarter of 2008. After adjusting for entitlement impacts in our production-sharing agreements (PSAs) and the effect of OPEC quota restrictions, the increase in total production was also 4%. This primarily reflects the continued ramp-up of production from major projects that started up in 2008 and the first half of 2009. As previously indicated we expect total production in 2009 to be higher than 2008. The actual growth rate will depend on a number of factors including the impact of oil price in PSAs and OPEC quota restrictions. We expect the quarterly phasing of underlying production during the year to reflect the normal seasonal effects associated with turnaround activity. Reported production for the half year was 2,711mboe/d for subsidiaries and 1,300mboe/d for equity-accounted entities. In total, this was more than 3% higher than the same period of 2008. After adjusting for the effect of entitlement changes in our PSAs and the effect of OPEC quota restrictions, total production was 4% higher. For further information on the production of subsidiaries and equity-accounted entities, see page 6.

During the quarter we announced that production had commenced from the Dorado (BP 75% and operator) and King South (BP 100%) projects in the Gulf of Mexico. Both projects are subsea tiebacks to the existing Marlin Platform.

On 27 May, Sonangol and BP announced the Oberon oil discovery in ultra-deepwater Block 31, offshore Angola (BP 26.67% and operator). This is the eighteenth discovery made by BP in Block 31.

In Egypt, the Egyptian Natural Gas Holding Company awarded BP two blocks in the 2008 International bid round. North Tineh Offshore is in a deepwater offshore area of the Nile Delta, will be operated by BP (100%) and was ratified in June. North Damietta Offshore is an adjacent block that BP will operate with Shell and Petronas, with one third working interest each. In Iraq’s first licensing round on 30 June, BP (operator) and China National Petroleum Corporation were awarded the rights to redevelop the Rumaila oilfield.

During the quarter, we sold our wholly-owned subsidiary, BP West Java Limited (BPWJ), to PT Pertamina (Persero). Pertamina purchased BPWJ for a consideration of $278 million.

Shortly after the end of the quarter, BP, as operator on behalf of the Tangguh project partners, announced that the first cargo of liquefied natural gas (LNG) had been lifted from the Tangguh LNG project (BP 37.16% and operator) in Papua Barat, Indonesia. We also announced, together with SOCAR (the State Oil Company of the Republic of Azerbaijan), that we have signed a memorandum of understanding to jointly explore and develop the Shafag and Asiman structures in the Azerbaijan sector of the Caspian Sea. In the Gulf of Mexico we announced the drilling of a successful appraisal well in a previously untested southern segment of the Mad Dog field (BP 60.5% and operator).

Exploration and Production

Second quarter										First half
2008				2009						2009				2008
								$ million
								Non-operating items
	(8	)			118			US			189				(16	)
	(1,968	)			389			Non-US			629				(2,336	)
	(1,976	)			507						818				(2,352	)
								Fair value accounting effects(a)
	(236	)			92			US			300				(378	)
	(137	)			43			Non-US			(7	)			(254	)
	(373	)			135						293				(632	)
								Exploration expense
	47				235			US			279				119
	71				112			Non-US			187				292
	118				347						466				411
								Liquids production for subsidiaries (mb/d) (net of royalties)(b)
	534				661			US			652				544
	226				201			Europe			206				230
	—				—			Russia			—				—
	500				534			Rest of World			534				525
	1,260				1,396						1,392				1,299
	1,148				1,130			Liquids production for equity-accounted entities (mb/d) (net of royalties)(b)			1,123				1,132
	2,140				2,339			Natural gas production for subsidiaries (mmcf/d) (net of royalties) US			2,337				2,144
	744				645			Europe			741				870
	—				—			Russia			—				—
	4,310				4,611			Rest of World			4,566				4,315
	7,194				7,595						7,644				7,329
	1,054				985			Natural gas production for equity-accounted entities (mmcf/d) (net of royalties)			1,029				1,027
								Total hydrocarbon production for subsidiaries (mboe/d) (net of royalties)(c)
	903				1,064			US			1,055				914
	354				312			Europe			334				381
	—				—			Russia			—				—
	1,243				1,330			Rest of World			1,322				1,267
	2,500				2,706						2,711				2,562
	1,330				1,299			Total hydrocarbon production for equity-accounted entities (mboe/d) (net of royalties)(c)			1,300				1,309
								Average realizations(d)
	109.95				52.33			Total liquids ($/bbl)			46.84				100.66
	6.63				2.86			Natural gas ($/mcf)			3.25				6.25
	75.39				35.02			Total hydrocarbons ($/boe)			33.22				68.85

(a)		These effects represent the favourable (unfavourable) impact relative to management’s measure of performance. Further information on fair value accounting effects is provided on page 17.
(b)		Crude oil and natural gas liquids.
(c)		Natural gas is converted to oil equivalent at 5.8 billion cubic feet = 1 million barrels.
(d)		Based on sales of consolidated subsidiaries only — this excludes equity-accounted entities.
(e)		Additional operating information is provided on pages 14 and 19.

Because of rounding, some totals may not agree exactly with the sum of their component parts.

Refining and Marketing

Second quarter										First half
2008				2009						2009				2008
								$ million
	97,892				49,333			Sales and other operating revenues			89,906				174,504
	539				680			Replacement cost profit before interest and tax(a)(b)			1,770				1,788
								By region
	(401	)			(326	)		US			(18	)			(247	)
	940				1,006			Non-US			1,788				2,035
	539				680						1,770				1,788
								Analysis of sales and other operating revenues
	19,684				9,447			Sale of crude oil through spot and term contracts			15,985				33,752
	75,133				38,640			Marketing, spot and term sales of refined products			70,270				135,196
	3,075				1,246			Other sales			3,651				5,556
	97,892				49,333						89,906				174,504

(a)		Equity-accounted entities are included after interest and tax.
(b)		See page 15 for information on replacement cost reporting for operating segments.

Sales and other operating revenues for the second quarter and half year were $49 billion and $90 billion respectively, compared with $98 billion and $175 billion for the corresponding periods in 2008. The decreases for both the quarter and half year primarily reflected decreases in marketing, spot and term sales of refined products, driven mainly by lower prices but also impacted by adverse foreign exchange effects. In addition, sales of crude oil through spot and term contracts decreased as a result of lower prices.

The replacement cost profit before interest and tax for the second quarter and half year was $680 million and $1,770 million respectively. The results in the equivalent periods of 2008 were $539 million and $1,788 million. The second quarter’s result included a net non-operating charge of $166 million, compared to a net charge of $99 million a year ago. For the half year, the net non-operating charge was $516 million, primarily relating to restructuring, compared to a net gain of $510 million a year ago. Fair value accounting effects had unfavourable impacts of $126 million in the second quarter and $235 million for the half year. A year ago, there were unfavourable impacts of $161 million and $60 million respectively.

After adjusting for non-operating items and fair value accounting effects, both the second quarter and half-year results were stronger than in 2008, despite a weaker refining environment. The turnaround of the segment continues to deliver significantly lower costs. Improved operational performance has also contributed to the year-on-year improvement, particularly for the half year. For the first half these two factors have more than offset the adverse impact of weaker refining margins. The first half also benefited from a much stronger supply and trading contribution, which returned to a more normal level in the second quarter after the particularly strong first-quarter performance. The weakening of the US dollar and the increase in crude prices also created a gain on in-transit barrels in the second quarter.

Within our Fuels Value Chains, BP’s actual refining margins in the first half decreased even more year on year than the global indicator margin, as our highly upgraded facilities were impacted by a very narrow light-heavy crude spread and the collapse of gasoil cracks due to the weakening economy. Marketing volumes of refined products were down 5% in the first half, compared to the same period in 2008.

The International Businesses continued to perform well with some recovery in petrochemicals margins, despite volumes that were depressed by more than 24% in the first half compared to a year ago, and sustained delivery in Lubricants.

Refining throughput for the quarter was 2,269mb/d compared to 2,239mb/d for the same period a year ago and for the half year it was 2,257mb/d compared to 2,202mb/d in 2008. Solomon availability, at 93.6%, was 1.3 percentage points above the first quarter of 2009 and 5.3 percentage points higher than the second quarter of 2008. The year-on-year increase was principally driven by improvements at the Texas City refinery.

On 26 June, BP announced the sale of the ground fuels marketing business in Greece, to Hellenic Petroleum for €359 million subject to various adjustments at closing. The deal is subject to regulatory approval and certain conditions, but is expected to complete before the end of 2009.

Indicator refining margins in the third quarter to date have been lower than in the second quarter and substantially below 2008 levels. Refining availability is expected to remain higher than in 2008, but otherwise the outlook continues to be challenging with high distillate inventories and continuing low demand.

Refining and Marketing

Second quarter										First half
2008				2009						2009				2008
								$ million
								Non-operating items
	(16	)			(27	)		US			(161	)			758
	(83	)			(139	)		Non-US			(355	)			(248	)
	(99	)			(166	)					(516	)			510
								Fair value accounting effects(a)
	53				(46	)		US			19				148
	(214	)			(80	)		Non-US			(254	)			(208	)
	(161	)			(126	)					(235	)			(60	)
								Refinery throughputs (mb/d)
	1,189				1,188			US			1,176				1,133
	753				763			Europe			773				764
	297				318			Rest of World			308				305
	2,239				2,269			Total throughput			2,257				2,202
	88.3				93.6			Refining availability (%)(b)			92.9				88.1
								Oil sales volumes (mb/d) Refined products
	1,498				1,431			US			1,417				1,477
	1,551				1,457			Europe			1,493				1,558
	716				634			Rest of World			625				704
	3,765				3,522			Total marketing sales			3,535				3,739
	2,017				2,085			Trading/supply sales			2,127				2,032
	5,782				5,607			Total refined product sales			5,662				5,771
	1,848				1,994			Crude oil			1,919				1,854
	7,630				7,601			Total oil sales			7,581				7,625
								Global Indicator Refining Margin ($/bbl)(c)
	7.46				3.10			NWE			3.88				6.12
	8.59				6.00			USGC			6.34				7.40
	6.53				8.54			US Midwest			7.79				3.82
	9.94				7.14			USWC			8.54				7.92
	9.41				(0.11	)		Singapore			1.19				7.09
	8.19				4.98			BP Average			5.59				6.38
								Chemicals production (kte)
	1,022				745			US			1,458				2,058
	821				867			Europe			1,655				1,790
	1,598				1,035			Rest of World			2,154				3,129
	3,441				2,647			Total production			5,267				6,977

(a)		These effects represent the favourable (unfavourable) impact relative to management’s measure of performance. Further information on fair value accounting effects is provided on page 17.
(b)		Refining availability represents Solomon Associates’ operational availability, which is defined as the percentage of the year that a unit is available for processing after subtracting the annualized time lost due to turnaround activity and all planned mechanical, process and regulatory maintenance downtime.
(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.

Other businesses and corporate

Second quarter										First half
2008				2009						2009				2008
								$ million
	1,200				603			Sales and other operating revenues			1,187				2,308
	(314	)			(583	)		Replacement cost profit (loss) before interest and tax(a)(b)			(1,344	)			(527	)
								By region
	(185	)			(129	)		US			(408	)			(337	)
	(129	)			(454	)		Non-US			(936	)			(190	)
	(314	)			(583	)					(1,344	)			(527	)
								Results include Non-operating items
	(33	)			(33	)		US			(149	)			(82	)
	(90	)			(6	)		Non-US			(211	)			(122	)
	(123	)			(39	)					(360	)			(204	)

Other businesses and corporate comprises the Alternative Energy business, Shipping, the group’s aluminium asset, Treasury (which includes interest income on the group’s cash and cash equivalents), and corporate activities worldwide.

The replacement cost loss before interest and tax for the second quarter and half year was $583 million and $1,344 million respectively, compared with losses of $314 million and $527 million a year ago. The increased charge in both periods was primarily due to negative foreign exchange effects and a much weaker business environment for Shipping and Alternative Energy, partially offset by the continued reduction in corporate costs. The net non-operating charge for the second quarter and half year was $39 million and $360 million respectively, compared with net charges of $123 million and $204 million a year ago.

In Alternative Energy, our BP Solar business and RGE Energy AG of Germany announced a partnership to build one of the world’s largest solar projects in Germany. The planned solar system is expected to deliver around 43,000 megawatt hours per year of green electricity. Solar sales in the second quarter and half year were 27MW and 42MW respectively, compared to 39MW and 73MW in the same periods of last year, reflecting ongoing demand weakness in the market.

On 1 July, US Department of Energy Secretary Steven Chu announced that Hydrogen Energy LLC, a 50:50 joint venture between BP and Rio Tinto, has been selected for up to $308 million in project funding from the American Recovery and Reinvestment Act.

In wind generation, BP’s net capacity^(c) at the end of the second quarter was 678MW, compared to 172MW a year ago.

Group income statement

Second quarter										First half
2008				2009						2009				2008
								$ million
	108,747				54,777			Sales and other operating revenues (Note 2)			102,073				196,492
	1,752				357			Earnings from jointly controlled entities — after interest and tax			577				2,727
	251				714			Earnings from associates — after interest and tax			999				476
	153				191			Interest and other income			394				431
	79				522			Gains on sale of businesses and fixed assets			603				1,004
	110,982				56,561			Total revenues and other income			104,646				201,130
	77,499				36,007			Purchases			66,784				139,888
	7,408				5,997			Production and manufacturing expenses			12,104				14,207
	2,299				673			Production and similar taxes (Note 3)			1,134				3,908
	2,850				3,092			Depreciation, depletion and amortization			5,915				5,632
	23				216			Impairment and losses on sale of businesses and fixed assets			353				63
	118				347			Exploration expense			466				411
	3,977				3,290			Distribution and administration expenses			6,639				7,873
	2,081				(154	)		Fair value (gain) loss on embedded derivatives			(340	)			2,771
	14,727				7,093			Profit before interest and taxation			11,591				26,377
	381				274			Finance costs			592				787
	(160	)			47			Net finance expense (income) relating to pensions and other post-retirement benefits			97				(320	)
	14,506				6,772			Profit before taxation			10,902				25,910
	5,036				2,343			Taxation			3,876				9,228
	9,470				4,429			Profit for the period			7,026				16,682
								Attributable to
	9,358				4,385			BP shareholders			6,947				16,452
	112				44			Minority interest			79				230
	9,470				4,429						7,026				16,682
								Earnings per share — cents (Note 4)
								Profit for the period attributable to BP shareholders
	49.70				23.41			Basic			37.10				87.28
	49.23				23.16			Diluted			36.72				86.48

Group statement of comprehensive income

Second quarter										First half
2008				2009						2009				2008
								$ million
	9,470				4,429			Profit for the period			7,026				16,682
	255				2,393			Currency translation differences			1,382				1,033
	322				207			Available-for-sale investments marked to market			281				131
	—				—			Available-for-sale investments — recycled to the income statement			2				(5	)
	49				648			Cash flow hedges marked to market			437				123
	1				178			Cash flow hedges — recycled to the income statement			417				(1	)
	(18	)			42			Cash flow hedges — recycled to the balance sheet			113				(41	)
	(4	)			439			Taxation			357				93
	605				3,907			Other comprehensive income			2,989				1,333
	10,075				8,336			Total comprehensive income			10,015				18,015
								Attributable to
	9,964				8,260			BP shareholders			9,928				17,782
	111				76			Minority interest			87				233
	10,075				8,336						10,015				18,015

Group statement of changes in equity

		BP
		shareholders’				Minority				Total
		equity				interest				equity
$ million
At 31 December 2008			91,303				806				92,109
Total comprehensive income			9,928				87				10,015
Dividends			(5,239	)			(185	)			(5,424	)
Share-based payments (net of tax)			249				—				249
At 30 June 2009			96,241				708				96,949

		BP
		shareholders’				Minority				Total
		equity				interest				equity
$ million
At 31 December 2007			93,690				962				94,652
Total comprehensive income			17,782				233				18,015
Dividends			(5,099	)			(122	)			(5,221	)
Repurchase of ordinary share capital			(1,796	)			—				(1,796	)
Share-based payments (net of tax)			315				—				315
At 30 June 2008			104,892				1,073				105,965

Group balance sheet

		30 June				31 December
		2009				2008
$ million
Non-current assets
Property, plant and equipment			105,779				103,200
Goodwill			10,304				9,878
Intangible assets			10,951				10,260
Investments in jointly controlled entities			15,266				23,826
Investments in associates			12,929				4,000
Other investments			1,138				855
Fixed assets			156,367				152,019
Loans			1,212				995
Other receivables			990				710
Derivative financial instruments			4,423				5,054
Prepayments			1,303				1,338
Defined benefit pension plan surpluses			1,990				1,738
			166,285				161,854
Current assets
Loans			185				168
Inventories			18,650				16,821
Trade and other receivables			29,246				29,261
Derivative financial instruments			6,760				8,510
Prepayments			2,712				3,050
Current tax receivable			562				377
Cash and cash equivalents			8,959				8,197
			67,074				66,384
Total assets			233,359				228,238
Current liabilities
Trade and other payables			34,764				33,644
Derivative financial instruments			6,181				8,977
Accruals			5,815				6,743
Finance debt			12,018				15,740
Current tax payable			2,826				3,144
Provisions			1,403				1,545
			63,007				69,793
Non-current liabilities
Other payables			3,109				3,080
Derivative financial instruments			5,039				6,271
Accruals			713				784
Finance debt			24,222				17,464
Deferred tax liabilities			16,800				16,198
Provisions			12,999				12,108
Defined benefit pension plan and other post-retirement benefit plan deficits			10,521				10,431
			73,403				66,336
Total liabilities			136,410				136,129
Net assets			96,949				92,109
Equity
BP shareholders’ equity			96,241				91,303
Minority interest			708				806
			96,949				92,109

Condensed group cash flow statement

Second quarter										First half
2008				2009						2009				2008
								$ million
								Operating activities
	14,506				6,772			Profit before taxation			10,902				25,910
								Adjustments to reconcile profit before taxation to net cash provided by operating activities
	2,894				3,315			Depreciation, depletion and amortization and exploration expenditure written off			6,164				5,860
	(56	)			(306	)		Impairment and (gain) loss on sale of businesses and fixed assets			(250	)			(941	)
	(1,491	)			(250	)		Earnings from equity-accounted entities, less dividends received			(502	)			(1,304	)
	(183	)			38			Net charge for interest and other finance expense, less net interest paid			127				(301	)
	173				101			Share-based payments			187				238
	46				(46	)		Net operating charge for pensions and other post-retirement benefits, less contributions and benefit payments for unfunded plans			(20	)			163
	(40	)			(49	)		Net charge for provisions, less payments			232				(205	)
	(5,710	)			(1,093	)		Movements in inventories and other current and non-current assets and liabilities(a)			(1,061	)			(6,427	)
	(3,421	)			(1,725	)		Income taxes paid			(3,450	)			(5,381	)
	6,718				6,757			Net cash provided by operating activities			12,329				17,612
								Investing activities
	(4,713	)			(5,211	)		Capital expenditure			(10,028	)			(9,148	)
	(209	)			(8	)		Acquisitions, net of cash acquired			(8	)			(209	)
	(247	)			(110	)		Investment in jointly controlled entities			(213	)			(613	)
	(3	)			(40	)		Investment in associates			(87	)			(7	)
	59				360			Proceeds from disposal of fixed assets			671				335
	—				337			Proceeds from disposal of businesses, net of cash disposed			337				—
	212				96			Proceeds from loan repayments			213				334
	—				—			Other			47				—
	(4,901	)			(4,576	)		Net cash (used in) provided by investing activities			(9,068	)			(9,308	)
								Financing activities
	(928	)			27			Net issue (repurchase) of shares			62				(1,817	)
	655				4,441			Proceeds from long-term financing			9,060				2,832
	(1,654	)			(1,597	)		Repayments of long-term financing			(4,177	)			(2,191	)
	1,516				(1,860	)		Net increase (decrease) in short-term debt			(2,042	)			(1,908	)
	(2,545	)			(2,620	)		Dividends paid — BP shareholders			(5,239	)			(5,099	)
	(86	)			(74	)		— Minority interest			(185	)			(122	)
	(3,042	)			(1,683	)		Net cash (used in) provided by financing activities			(2,521	)			(8,305	)
	(2	)			101			Currency translation differences relating to cash and cash equivalents			22				32
	(1,227	)			599			Increase (decrease) in cash and cash equivalent			762				31
	4,820				8,360			Cash and cash equivalents at beginning of period			8,197				3,562
	3,593				8,959			Cash and cash equivalents at end of period			8,959				3,593
(a) Includes
	(3,952	)			(1,874	)		Inventory holding (gains) losses			(2,128	)			(5,278	)
	2,081				(154	)		Fair value (gain) loss on embedded derivatives			(340	)			2,771

Inventory holding gains and losses and fair value gains and losses on embedded derivatives are also included within profit before taxation

Capital expenditure and acquisitions

Second quarter										First half
2008				2009						2009				2008
								$ million
								By business
								Exploration and Production
	1,801				1,422			US			3,092				3,016
	2,148				2,144			Non-US(a)			4,179				6,935
	3,949				3,566						7,271				9,951
								Refining and Marketing
	662				562			US(a)			1,129				2,959
	582				276			Non-US			502				953
	1,244				838						1,631				3,912
								Other businesses and corporate
	463				364			US(b)			420				730
	146				50			Non-US			91				254
	609				414						511				984
	5,802				4,818						9,413				14,847
								By geographical area
	2,926				2,348			US(a)(b)			4,641				6,705
	2,876				2,470			Non-US(a)			4,772				8,142
	5,802				4,818						9,413				14,847
								Included above:
	324				—			Acquisitions and asset exchanges(a)			—				2,288

Exchange rates

Second quarter										First half
2008				2009						2009				2008
	1.97				1.55			US dollar/sterling average rate for the period			1.49				1.97
	1.99				1.65			US dollar/sterling period-end rate			1.65				1.99
	1.56				1.36			US dollar/euro average rate for the period			1.33				1.53
	1.58				1.41			US dollar/euro period-end rate			1.41				1.58