27 April 2004 15:07
/FIRST AND FINAL ADD -- NYTU114 -- BP Results/
Notes 1. Restatement of comparative information Comparative information for 2003 has been restated to reflect the
changes described below. (a) Transfer of natural gas liquids activities With effect from 1 January 2004 natural gas
liquids (NGLs) activities have been transferred from the Exploration and Production segment to Gas, Power and
Renewables. (b) New accounting standard for pensions and other post-retirement benefits With effect from 1 January 2004
BP has adopted Financial Reporting Standard No. 17 'Retirement Benefits' (FRS 17). FRS 17 requires that
financial statements reflect at fair value the assets and liabilities arising from an employer's retirement benefit
obligations and any related funding. The operating costs of providing retirement benefits are recognized in the period
in which they are earned together with any related finance costs and changes in the value of related assets and
liabilities. This contrasts with Statement of Standard Accounting Practice No. 24 'Accounting for Pension
Costs', which requires the cost of providing pensions to be recognized on a systematic and rational basis over the
period during which the employer benefits from the employee's services. The difference between the amount charged
in the income statement and the amount paid as contributions into the pension fund is shown as a prepayment or provision
on the balance sheet. (c) Accounting for Employee Share Ownership Plans With effect from 1 January 2004 BP has adopted
Urgent Issues Task Force Abstract No. 38 'Accounting for ESOP Trusts'. This abstract requires that BP shares
held by the group for the purposes of Employee Share Ownership Plans (ESOPs) are deducted from equity on the balance
sheet. Such shares were previously classified as fixed asset investments. Balance sheet at 31 December 2003 Restated
Reported ==================== $ million Fixed assets Intangible assets 13,642 13,642 Tangible assets 91,911 91,911
Investments 17,458 17,554 -------------------- 123,011 123,107 -------------------- Current assets 47,651 54,465
Creditors - amounts falling due within one year 50,584 50,584 ------------------- Net current assets (liabilities)
(2,933) 3,881 ------------------- Total assets less current liabilities 120,078 126,988 Creditors - amounts falling due
after more than one year 18,959 18,959 Provisions for liabilities and charges Deferred taxation 14,371 15,273 Other
provisions 8,815 15,693 ------------------- Net assets excluding pension and other post-retirement benefit balances
77,933 77,063 Defined benefit pension plan surplus 1,021 - Defined benefit pension plan and other post-retirement
benefit plan deficits (7,510) - ------------------- Net assets 71,444 77,063 Minority shareholders' interest 1,125
1,125 ------------------- BP shareholders' interest 70,319 75,938 =================== Notes Income statements
Restated Reported Fourth First Fourth First Quarter Quarter Quarter Quarter 2003 2003 2003 2003 ================
================ $ million Exploration and Production 2,848 4,718 2,889 4,759 Refining and Marketing 320 628 274 579
Petrochemicals 41 137 51 146 Gas, Power and Renewables 86 216 67 194 Other businesses and corporate 465 (166) (176)
(159) ----------------------------------- Replacement cost profit before interest and tax 3,760 5,533 3,105 5,519 Stock
holding gains (losses) 84 799 84 799 ----------------------------------- Historical cost profit before interest and tax
3,844 6,332 3,189 6,318 Interest expense 160 176 227 220 Other finance expense 152 129 - -
----------------------------------- Profit before taxation 3,532 6,027 2,962 6,098 Taxation 1,157 1,782 949 1,805
----------------------------------- Profit after taxation 2,375 4,245 2,013 4,293 Minority shareholders' interest
41 26 41 26 ----------------------------------- Profit for the period 2,334 4,219 1,972 4,267
=================================== Distribution to shareholders 1,495 1,386 1,495 1,386
----------------------------------- Earnings per ordinary share - cents Basic 10.56 18.90 8.93 19.11 Diluted 10.32 18.84
8.69 19.05 =================================== Notes 2. Turnover First Fourth First Quarter Quarter Quarter 2004 2003
2003 ======================= $ million By business Exploration and Production 8,166 7,450 8,878 Refining and Marketing
41,694 36,378 39,678 Petrochemicals 4,510 4,336 3,938 Gas, Power and Renewables 20,975 16,701 18,080 Other businesses
and corporate 121 137 111 ------------------------ 75,466 65,002 70,685 Less: sales between businesses 7,864 7,138 8,654
------------------------ Group excluding JVs 67,602 57,864 62,031 Share of sales by joint ventures 1,878 1,798 398
------------------------ 69,480 59,662 62,429 ======================== By geographical area Group excluding JVs UK
17,296 14,117 15,132 Rest of Europe 12,041 12,288 13,317 USA 31,803 26,347 29,341 Rest of World 15,817 13,894 13,736
------------------------ 76,957 66,646 71,526 Less: sales between areas 9,355 8,782 9,495 ------------------------
67,602 57,864 62,031 ------------------------ 3. Replacement cost profit Replacement cost profits reflect the current
cost of supplies. The replacement cost profit for the period is arrived at by excluding from the historical cost profit
stock holding gains and losses. Notes 4. Operating profits are after charging: First Fourth First Quarter Quarter
Quarter 2004 2003 2003 ======================= $ million Exploration expense UK 2 1 3 Rest of Europe 2 5 4 USA 97 60 37
Rest of World 35 127 68 ----------------------- 136 193 112 ======================= Production taxes (a) UK petroleum
revenue tax 126 44 133 Overseas production taxes 399 377 371 ----------------------- 525 421 504 =======================
(a) Production taxes are charged against Exploration and Production's operating profit and are not included in the
charge for taxation in Note 8. 5. Stock holding gains (losses) Exploration and Production 8 - 6 Refining and Marketing
529 16 620 Petrochemicals 121 10 146 Gas, Power and Renewables (10) 58 27 ----------------------- 648 84 799
======================= Notes 6. Interest expense First Fourth First Quarter Quarter Quarter 2004 2003 2003
======================= $ million Group interest payable 149 172 187 Capitalized (50) (60) (34) -----------------------
99 112 153 Joint ventures 41 36 13 Associated undertakings 12 12 10 ----------------------- 152 160 176
======================= 7. Other finance expense Interest on pension and other post-retirement benefit plan liabilities
500 460 460 Expected return on pension and other post-retirement benefit plan assets (498) (375) (375)
----------------------- Interest net of expected return on plan assets 2 85 85 Unwinding of discount on provisions 48 42
44 Unwinding of discount on deferred consideration for acquisition of investment in TNK-BP 26 25 -
----------------------- 76 152 129 ======================= 8. Charge for taxation Current 1,706 404 1,581 Deferred 116
753 201 ----------------------- 1,822 1,157 1,782 ======================= UK 345 356 451 Overseas 1,477 801 1,331
----------------------- 1,822 1,157 1,782 ======================= Notes 9. Analysis of changes in net debt First Fourth
First Quarter Quarter Quarter 2004 2003 2003 ======================= $ million Opening balance Finance debt 22,325
19,970 22,008 Less: Cash 1,947 1,091 1,520 Current asset investments 185 404 215 ----------------------- Opening net
debt 20,193 18,475 20,273 ----------------------- Closing balance Finance debt 19,937 22,325 19,042 Less: Cash 2,006
1,947 1,151 Current asset investments 328 185 228 ----------------------- Closing net debt 17,603 20,193 17,663
----------------------- Decrease (increase) in net debt 2,590 (1,718) 2,610 ======================= Movement in
cash/bank overdrafts 61 797 (378) Increase (decrease) in current asset investments 138 (223) 13 Net cash outflow
(inflow) from financing (excluding share capital) 2,460 (2,350) 2,661 Exchange of Exchangeable Bonds for Lukoil American
Depositary Shares - - 420 Other movements 14 5 64 Debt acquired - (3) - ----------------------- Movement in net debt
before exchange effects 2,673 (1,774) 2,780 Exchange adjustments (83) 56 (170) ----------------------- Decrease
(increase) in net debt 2,590 (1,718) 2,610 ======================= Notes 10. TNK-BP Operational and Financial
Information First Fourth Quarter Quarter 2004 2003 ======= ======= Production (Net of royalties) (BP share) Crude oil
(mb/d) 766 669 Natural gas (mmcf/d) 382 296 Total hydrocarbons (mboe/d) (a) 832 720 ======= ======= $ million Income
statement (BP share) Replacement cost profit before interest and tax 374 354 Stock holding gains (losses) - - Interest
expense + (30) (24) Taxation (115) (53) Minority shareholders' interest (10) 1 ------- ------- Net Income 219 278
======= ======= + Excludes unwinding of discount on deferred consideration 26 25 ======= ======= Balance Sheet 31 March
31 December 2004 2003 ======== =========== Fixed assets - investments Gross assets 12,011 10,339 Gross liabilities
(3,509) (3,290) ------- ------- 8,502 7,049 ======= ======= Deferred consideration Due within one year 1,236 1,227 Due
after more than one year 2,369 2,352 ------- ------- 3,605 3,579 ======= ======= First Fourth Quarter Quarter 2004 2003
======= ======= Cash Flow Additional investment in TNK-BP joint venture (1,416) (23) Dividends related to period prior
to acquisition 143 297 ------- ------- Net investment in TNK-BP joint venture (1,273) 274 ======= ======= Dividends
received 119 - ======= ======= (a) Natural gas is converted to oil equivalent at 5.8 billion cubic feet = 1 million
barrels.
BP's share of the result of the TNK-BP joint venture has been included within Exploration and Production with
effect from 29 August 2003. TNK-BP operational and financial information for the first quarter has been estimated and
includes an adjustment in respect of the period 29 August to 31 December 2003 amounting to charges of $11 million and
$29 million respectively in replacement cost profit before interest and tax and net income. TNK-BP's 2003 audited
financial statements are expected to be finalized in May 2004. Any further adjustment in respect of 2003 will be
reflected in BP's second quarter results. Notes 11. Statutory accounts The financial information shown in this
publication is unaudited and does not constitute statutory accounts. The 2003 Annual Report and Accounts have been
delivered to the UK Registrar of Companies; the report of the auditors on those accounts was unqualified. Contacts
London New York -------------- -------------- Press Office Roddy Kennedy Ian Stewart +44 (0)20 7496 4624 +1 212 451 8026
Investor Relations Fergus MacLeod Terry LaMore +44 (0)20 7496 4717 +1 212 451 8034 http://www.bp.com/investors Contact:
New York Terry F. LaMore (212) 451-8034 Ian B. Stewart (212) 451-8026 BP DIVIDEND ANNOUNCEMENT
NEW YORK, April 27, 2004 - BP p.l.c. of London, England, today announced payment of a quarterly dividend of $0.405
per American Depositary Share (ADS) to qualifying ADS shareholders. The record date for ADS shareholders is May 14, 2004
with payment to be made on June 7, 2004.
Under the former US-UK Income Tax Treaty, dividends paid to qualifying ADS shareholders entitled them to a refund of
a deemed UK tax credit equal to 1/9th of the announced dividend. This credit was exactly offset by an amount deemed by
the former US-UK Income Tax Treaty to be a UK withholding tax. The net effect for ADS holders was a cash payment equal
to the amount of the announced dividend, a potential foreign tax credit equal to 1/9th of the announced dividend, and a
gross dividend equal to the sum of those two amounts.
Under the new US-UK Income Tax Treaty, this deemed tax credit is no longer available on dividends paid to qualifying
ADS shareholders. Qualifying ADS shareholders may, however, be entitled to claim the deemed tax credit under the former
US-UK Income Tax Treaty, as described above, for dividends paid through April 30, 2004. ADS shareholders should consult
their tax advisors to determine their eligibility for, and the tax consequences of, this election.
Canadian Dollar dividends to Canadian Residents
For Canadian resident ADS shareholders receiving their dividend in Canadian dollars, the rate of exchange of Canadian
$1.3539 to the US Dollar was that ruling at 4 p.m. London time on April 26, 2004. The dividend payable June 7, 2004, to
qualifying Canadian resident ADS shareholders is a cash payment of Canadian $0.548 per ADS, which is the amount to be
reported as foreign non-business income for Canadian tax purposes.
US Dollar dividends to Canadian Residents
For Canadian resident ADS shareholders who have filed an election to receive dividends in US dollars, the dividend
payable June 7, 2004, to qualifying Canadian resident ADS shareholders is a cash payment of US $0.405 per ADS. The
amount of dividend to be reported as foreign non-business income for Canadian tax purposes will be the amount of US
$0.405 per ADS, converted to Canadian dollars at an appropriate exchange rate.
Direct Access Plan
For U.S. and Canadian resident ADS shareholders who wish to take their dividend in the form of shares the Direct
Access Plan also includes a Dividend Reinvestment Plan (DRIP) facility.
Ex-Dividend Date
The ex-dividend date on the New York Stock Exchange is expected to be May 12, 2004.
ADS
One ADS represents 6 ordinary shares of BP traded in London.
PRNewswire -- April 27 END FIRST AND FINAL ADD BP p.l.c.
Web site: http://www.bp.com/ http://www.bp.com/investors
[PR Newswire (US)] |
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