6-K 1 bp200810286k.htm 3RD QUARTER RESULTS

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 28 October, 2008
 
 

           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
Third quarter 2008

  


London 28 October 2008

FOR IMMEDIATE RELEASE

Third 

Second 

Third 

        

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 (c)  

2008 

$ million

2008 

2007 

% 

4,406 

9,358 

8,049 

Profit for the period(a)

24,501 

16,446 

  
     

Inventory holding (gains) losses,

      

(363)

(2,612)

1,980 

net of tax(b)

(1,495)

(1,471)

  
             

4,043 

6,746 

10,029 

Replacement cost profit(b)

23,006 

14,975 

54 
             

10.40 

18.27 

29.75 

–       per ordinary share (pence)

64.69 

39.17 

  

21.27 

35.83 

53.43 

–     per ordinary share (cents)

122.27 

77.95 

57 

1.28 

2.15 

3.21 

–     per ADS (dollars)

7.34 

4.68 

  


·     

BP’s third-quarter replacement cost profit was $10,029 million, compared with $4,043 million a year ago, an increase of 148%. For the nine months, replacement cost profit was $23,006 million compared with $14,975 million a year ago, up 54%.



·     

Non-operating items and fair value accounting effects for the third quarter had a net $1,147 million favourable impact compared to a net $448 million unfavourable impact for the third quarter of 2007. For the nine months, the respective amounts were $632 million unfavourable and $561 million favourable - see further details on page 3. The largest non-operating item for the third quarter was a fair value gain on embedded derivatives which amounted to $1,098 million on a pre-tax basis. For the nine months, the fair value loss on embedded derivatives amounted to $1,673 million on a pre-tax basis.



·     

Net cash provided by operating activities for the quarter and nine months was $14.9 billion and $32.5 billion compared with $6.4 billion and $20.4 billion respectively a year ago.



·     

The effective tax rate on replacement cost profit for the third quarter was 33% and for the nine months was 35%; a year ago, the rates were 33% and 32% respectively.



·     

Net debt at the end of the quarter was $22.0 billion compared to $22.2 billion a year ago. The ratio of net debt to net debt plus equity was 17%, compared with 20% a year ago.



·     

Total capital expenditure and acquisitions was $8.9 billion for the quarter and $23.7 billion for the nine months. Capital expenditure, excluding acquisitions and asset exchanges and excluding the accounting for our transactions with Husky (see page 26) and Chesapeake (see page 17), was $5.2 billion for the quarter, $14.9 billion for the nine months and is expected to be around $21-22 billion for the year. Disposal proceeds were $365 million for the quarter and $700 million for the nine months.



·     

The quarterly dividend, to be paid in December, is 14 cents per share ($0.84 per ADS) compared with 10.825 cents per share a year ago. For the nine months, the dividend showed an increase of 30%. In sterling terms, the quarterly dividend is 8.705 pence per share, compared with 5.308 pence per share a year ago; for the nine months, the increase was 43%. During the quarter, the company repurchased 92.9 million of its own shares for cancellation at a cost of $911 million. For the nine months, share repurchases were 269.8 million at a cost of $2.9 billion.



(a)

Profit attributable to BP shareholders.

(b)

With effect from 1 January 2008, replacement cost profit excludes inventory holding gains and losses net of tax. Comparative amounts have been amended to the new basis. See page 2 for further details.

(c)

Comparative data for 2008 has been amended. See Note 2(d) on page 24 for further details.


The commentaries above and following are based on replacement cost profit and should be read in conjunction with the cautionary statement on page 11.


Top of page 2

 

Analysis of replacement cost profit and reconciliation to profit for the period

Third 

Second 

Third 

      

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 (d)  

2008 

$ million

2008 

2007 

6,307 

10,771 

12,709 

Exploration and Production

33,552 

19,732 

371 

539 

1,972 

Refining and Marketing

3,760 

3,917 

(511)

(314)

(16)

Other businesses and corporate

(543)

(782)

103 

(221)

838 

Consolidation adjustment(a)

(167)

47 

6,270 

10,775 

15,503 

RC profit before interest and tax(b)

36,602 

22,914 
           
     

Finance costs and net finance income

    
     

relating to pensions and other

    

(173)

(221)

(238)

post-retirement benefits

(705)

(499)

(1,982)

(3,696)

(5,099)

Taxation on a replacement cost basis(c)

(12,524)

(7,221)

(72)

(112)

(137)

Minority interest

(367)

(219)
     

Replacement cost profit attributable

    

4,043 

6,746 

10,029 

to BP shareholders(c)

23,006 

14,975 
           

539 

3,952 

(2,978)

Inventory holding gains (losses)

2,300 

2,131 
     

Taxation (charge) credit on inventory

    

(176)

(1,340)

998 

holding gains and losses

(805)

(660)
     

Profit for the period attributable to

    

4,406  

9,358 

8,049 

BP shareholders

24,501 

16,446 


(a)

The consolidation adjustment in the third quarter of 2008 was impacted by a significant fall in prices and a substantial reduction in the volumes of equity crude within the refining and marketing system.

(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.

(c)

Effective 1 January 2008, replacement cost profit excludes inventory holding gains and losses and their associated tax effect. Previously, replacement cost profit excluded inventory gains and losses while the tax charge remained unadjusted and included the tax effect on inventory holding gains and losses. Comparative amounts have been amended to the new basis and the impact of the change is shown in the table below. There is no impact on profit for the period.

(d)

Comparative data for 2008 has been amended. See Note 2(d) on page 24 for further details.


 

Nine 

Third 
 

m onths 

quarter 

$ million

2007 

2007 
     

Replacement cost profit attributable to BP shareholders

    

- as previously reported

14,315 

3,867 

- tax effect on inventory holding gains and losses

660 

176 

- as amended

14,975 

4,043 


Top of page 3

 

             Non-operating items and fair value accounting effects

Non-operating items(a)

Third 

Second 

Third 

      

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 

2008 

$ million

2008 

2007 
           

10 

(1,976)

1,118 

Exploration and Production

(1,234)

1,145 

(344)

(99)

– 

Refining and Marketing

510 

194 

(201)

(123)

(128)

Other businesses and corporate

(332)

(175)

(535)

(2,198)

990 

  

(1,056)

1,164 

174 

770 

(331)

Taxation (b)

383 

(365)

(361)

(1,428)

659 

  

(673)

799 


Fair value accounting effects(c)

Third 

Second 

Third 

      

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 

2008 

$ million

2008 

2007 
     

Exploration and Production

    
     

Unrecognized gains (losses) brought

    

198 

366 

739 

forward from previous period

107 

155 
     

Unrecognized (gains)

    

(234)

(739)

(642)

losses carried forward

(642)

(234)
     

Favourable (unfavourable) impact

    
     

relative to management’s

    

(36)

(373)

97 

measure of performance

(535)

(79)
     

Refining and Marketing

    
     

Unrecognized gains (losses) brought

    

274 

328 

489 

forward from previous period

429 

72 
     

Unrecognized (gains)

    

(367)

(489)

147 

losses carried forward

147 

(367)
     

Favourable (unfavourable) impact

    
     

relative to management’s

    

(93)

(161)

636 

measure of performance

576 

(295)

(129)

(534)

733 

  

41 

(374)

42 

187 

(245)

Taxation (b)

– 

136 

(87)

(347)

488 

  

41 

(238)


Total of non-operating items and fair value accounting effects

Third 

Second 

Third 

      

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 

2008 

$ million

2008 

2007 
           

(26)

(2,349)

1,215 

Exploration and Production

(1,769)

1,066 

(437)

(260)

636 

Refining and Marketing

1,086 

(101)

(201)

(123)

(128)

Other businesses and corporate

(332)

(175)

(664)

(2,732)

1,723 

  

(1,015)

790 

216 

957 

(576)

Taxation (b)

383 

(229)

(448)

(1,775)

1,147 

  

(632)

561 


(a)

An analysis of non-operating items by type is provided on page 20 and a geographical analysis is shown on pages 7, 9 and 10.

(b)

Tax is calculated using the quarter’s effective tax rate on replacement cost profit . Amounts for comparative periods have been amended to reflect a redefinition of the effective tax rate on replacement cost profit arising as a result of the exclusion of tax effects on inventory holding gains and losses as described on page 2.

(c)

An explanation of fair value accounting effects is provided on page 11.


Top of page 4      

 

                                                Per share amounts

Third 

Second 

Third 

      

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 (c)  

2008 

  

2008 

2007 
     

Results for the period ($ million)

    

4,406 

9,358 

8,049 

Profit (a)

24,501 

16,446 

4,043 

6,746 

10,029 

Replacement cost profit

23,006 

14,975 
           
     

Shares in issue at period end

    

19,019,579 

18,805,089 

18,725,073 

(thousand) (b)

18,725,073 

19,019,579 

3,169,930 

3,134,182 

3,120,846 

- ADS equivalent (thousand) (b)

3,120,846 

3,169,930 
     

Average number of shares

    

19,061,853 

18,823,515 

18,746,202 

outstanding (thousand)(b)

18,815,131 

19,209,757 

3,176,976 

3,137,253 

3,124,367 

- ADS equivalent (thousand) (b)

3,135,855 

3,201,626 
     

Shares repurchased in the

    

128,253 

85,900 

92,861 

period (thousand)

269,757 

541,975 
           
     

Per ordinary share (cents)

    

23.18 

49.70 

42.93 

Profit for the period

130.21 

85.61 

21.27 

35.83 

53.43 

RC profit for the period

122.27 

77.95 
           
     

Per ADS (cents)

    

139.08 

298.20 

257.58 

Profit for the period

781.26 

513.66 

127.62 

214.98 

320.58 

RC profit for the period

733.62 

467.70 


(a)

Profit attributable to BP shareholders.

(b)

Excludes treasury shares.

(c)

Comparative data for 2008 has been amended. See Note 2(d) on page 24 for further details.


Dividends

Dividends payable

BP today announced a dividend of 14 cents per ordinary share to be paid in December. Holders of ordinary shares will receive 8.705 pence per share and holders of American Depository Receipts (ADRs) $0.84 per ADS. The dividend is payable on 8 December to shareholders on the register on 14 November. 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 December.

Dividends paid

Third 

Second 

Third 

    

q uarter 

quarter 

q uarter 

  

Nine months

2007 

2008 

2008 

  

2008 

2007 
     

Dividends paid per ordinary share

    

10.825 

13.525 

14.000 

     cents

41.050 

31.475 

5.278 

6.830 

7.039 

     pence

20.682 

15.687 

64.95 

81.15 

84.00 

Dividends paid per ADS (cents)

246.30 

188.85 


Top of page 5

 

                               Net debt ratio – net debt: net debt + equity

Third 

Second 

Third 

    

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 (a)  

2008 

$ million

2008 

2007 

25,245 

30,189 

28,300 

Gross debt

28,300 

25,245 
     

Less: fair value asset (liability) of

    

640 

900 

149 

hedges related to finance debt

149 

640 

24,605 

29,289 

28,151 

  

28,151 

24,605 

2,410 

3,593 

6,142 

Cash and cash equivalents

6,142 

2,410 

22,195 

25,696 

22,009 

Net debt

22,009 

22,195 

91,494 

105,965 

106,790 

Equity

106,790 

91,494 

20% 

20% 

17%

Net debt ratio

17%

20% 


(a)

Comparative data for 2008 has been amended. See Note 2(d) on page 24 for further details.


Net debt and net debt ratio are non-GAAP measures. We believe that these measures 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. Net debt has been redefined to include 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’. Amounts for comparative periods are presented on a consistent basis. See Note 2(c) on page 24 for further information.

Top of page 6

 

                                            Exploration and Production

Third 

Second 

Third 

    

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 

2008 

$ million

2008 

2007 

6,297 

10,819 

12,545 

Profit before interest and tax (a)

33,418 

19,779 

10 

(48)

164 

Inventory holding (gains) losses

134 

(47)
     

Replacement cost profit before

    

6,307 

10,771 

12,709 

interest and tax

33,552 

19,732 
           
     

By region:

    

633 

(124)

2,488 

UK

3,287 

2,860 

227 

350 

424 

Rest of Europe

1,050 

1,136 

1,775 

3,601 

3,739 

US

10,425 

5,689 

3,672 

6,944 

6,058 

Rest of World

18,790 

10,047 

6,307 

10,771 

12,709 

  

33,552 

19,732 


(a)

Includes profit after interest and tax of equity-accounted entities.


The replacement cost profit before interest and tax for the third quarter and first nine months of 2008 was $12,709 million and $33,552 million respectively, increases of 102% and 70% over the same periods of 2007. The increases in both periods were primarily due to higher oil and gas realizations. Additionally, the results reflected a higher contribution from the gas marketing and trading business, but were impacted by higher production taxes and higher depreciation. Costs were higher, driven by sector-specific inflation, but this was substantially mitigated by reductions resulting from our focus on cost control. The results also included higher earnings from equity-accounted entities, primarily from TNK-BP. The third-quarter result benefited from gains from non-operating items (see below).

The net non-operating gain of $1,118 million in the third quarter primarily comprises fair value gains on embedded derivatives. In the first nine months, the net non-operating charge was $1,234 million with the most significant item being fair value losses on embedded derivatives partly offset by the reversal of certain provisions and of a previous impairment charge. The corresponding periods in 2007 contained net non-operating gains of $10 million and $1,145 million respectively. Additionally, in the third quarter, fair value accounting effects had a favourable impact of $97 million compared with an unfavourable impact of $36 million a year ago. For the first nine months, the unfavourable effect was $535 million compared with an unfavourable effect of $79 million a year ago.
 
Reported production for the quarter was 3,664mboe/d, slightly higher than the third quarter of 2007. After adjusting for the impact of lower entitlement in our production-sharing agreements (PSAs), production was around 5% higher than the third quarter of 2007. The continued ramp-up of production following the start-up of major projects in late 2007 and the first half of 2008 more than offset the impacts of hurricanes in the Gulf of Mexico and other operational events in the third quarter.
 

Reported production for the first nine months was 3,802mboe/d, slightly higher than the same period of the previous year. After adjusting for the effect of entitlement changes in our PSAs, production for the first nine months was around 6% higher than the same period of 2007.
 
In the Gulf of Mexico, we progressed the commissioning of Thunder Horse (BP 75% and operator) with the start-up of the second well. In Australia, the North West Shelf Venture’s fifth LNG processing train became fully operational and, shortly after the end of the quarter, its third major offshore gas production facility (Angel) began producing. BP is one of six equal participants in the North West Shelf Project.
 
Also during the quarter, Sonatrach announced exploration success in Algeria with the Tin Zaouatene-1 (TZN-1) discovery in the Bourarhet Sud Blocks 230 & 231 (BP 49% and operator). Shortly after the end of the quarter, we announced a discovery in the Freedom prospect in the deepwater Gulf of Mexico (BP 25% and operator) and, jointly with Sonangol, we announced Dione, our sixteenth discovery in ultra-deepwater Block 31, offshore Angola (BP 26.67% and operator).
 
In August, we completed the acquisition of Chesapeake Energy Corporation’s interests in approximately 90,000 net acres of leasehold and producing natural gas properties in the Arkoma Basin Woodford Shale play for $1.75 billion. In addition, in September, we acquired a 25% interest in Chesapeake’s Fayetteville Shale assets in Arkansas for $1.9 billion. As a result of this transaction, BP acquired approximately 135,000 net acres of leasehold.
 
In the fourth quarter, we expect increased production reflecting normal seasonal patterns, continuing project ramp-ups and recovery from the hurricanes in the Gulf of Mexico and other operational events in the third quarter.

Top of page 7

 

                                                 Exploration and Production

Third 

Second 

Third 

    

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 

2008 

$ million

2008 

2007 
           
     

Non-operating items

    

21 

(2,082)

1,093 

UK

(1,683)

337 

7 

–  

– 

Rest of Europe

– 

538 

(15)

(8)

3 

US

(13)

156 

(3)

114 

22 

Rest of World

462 

114 

10 

(1,976)

1,118 

  

(1,234)

1,145 
           
     

Fair value accounting effects (a)

    

(22)

(147)

11 

UK

(119)

12 

–  

– 

– 

Rest of Europe

– 

–  

(19)

(236)

136 

US

(242)

(96)

5 

10 

(50)

Rest of World

(174)

5  

(36)

(373)

97 

  

(535)

(79)
           
     

Exploration expense

    

2 

8 

5 

UK

105 

29 

–  

– 

– 

Rest of Europe

– 

–  

60 

47 

59 

US

178 

191 

182 

63 

168 

Rest of World

360 

335 

244 

118 

232 

  

643 

555 
           
     

Production (net of royalties) (b)

    
     

Liquids (mb/d) (net of royalties) (c)

    

151 

186 

146 

UK

174 

202 

52 

40 

44 

Rest of Europe

42 

52 

475 

534 

473 

US

520 

510 

1,614 

1,648 

1,620 

Rest of World

1,645 

1,632 

2,292 

2,408 

2,283 

  

2,381 

2,396 
           
     

Natural gas (mmcf/d) (net of royalties)

    

582 

723 

504 

UK

732 

739 

26 

21 

23 

Rest of Europe

23 

30 

2,186 

2,140 

2,094 

US

2,127 

2,171 

5,085 

5,364 

5,390 

Rest of World

5,358 

5,138 

7,879 

8,248 

8,011 

  

8,240 

8,078 
           
     

Total hydrocarbons (mboe/d) (d)

    

251 

311 

233 

UK

300 

329 

57 

43 

47 

Rest of Europe

46 

57 

851 

903 

834 

US

887 

885 

2,492 

2,573 

2,550 

Rest of World

2,569 

2,517 

3,651 

3,830 

3,664 

  

3,802 

3,788 
           
     

Average realizations (e)

    

71.12 

109.95 

111.47 

Total liquids ($/bbl)

103.96 

62.00 

3.93 

6.63 

6.49 

Natural gas ($/mcf)

6.32 

4.42 

46.36 

75.39 

73.49 

Total hydrocarbons ($/boe)

70.31 

44.05 


(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 pages 3 and 11.

(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.

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


Top of page 8

 

                                               Refining and Marketing

Third 

Second 

Third 

      

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 

2008 

$ million

2008 

2007 

931 

4,430 

(823)

Profit before interest and tax(a)

6,180 

6,009 

(560)

(3,891)

2,795 

Inventory holding (gains) losses

(2,420)

(2,092)
     

Replacement cost profit (loss)

    

371 

539 

1,972 

before interest and tax

3,760 

3,917 
     

By region :

    

19 

118 

188 

UK

413 

914 

492 

429 

1,045 

Rest of Europe

2,103 

1,374 

(522)

(401)

338 

US

91 

573 

382 

393 

401 

Rest of World

1,153 

1,056 

371 

539 

1,972 

  

3,760 

3,917 


(a)

Includes profit after interest and tax of equity-accounted entities.


The replacement cost profit before interest and tax for the third quarter and nine months was $1,972 million and $3,760 million respectively. The results in the equivalent periods of 2007 were $371 million and $3,917 million respectively. The net impact of non-operating items, which is included in the results, was nil in the quarter and was a gain of $510 million in the nine months. A year ago, the results included a net non-operating charge of $344 million for the quarter and a net non-operating gain of $194 million for the nine months. Fair value accounting effects had favourable impacts of $636 million for the current quarter and $576 million for the nine months. A year ago, the impacts were unfavourable by $93 million for the quarter and $295 million for the nine months.

We continue to make good progress with the turnaround of the segment, delivering underlying year-on-year performance improvement in both Fuels Value Chains (FVCs) and International Businesses, against a weaker external business environment. Compared with 2007, the third-quarter result benefited from stronger commercial refining, supply and trading performance in the FVCs and improved marketing performance, partially offset by a negative foreign exchange effect caused by the strengthening of the US dollar. For the nine months, in addition to these factors, improved refinery operations have in part mitigated the impact of a considerably lower refining margin environment. The International Businesses continued to deliver a strong performance in the third quarter. Progress on our efficiency improvements has helped to offset the effects of inflation and higher energy costs.

Refining throughputs for the quarter and nine months were 2,185mb/d and 2,197mb/d respectively, compared with 2,148mb/d and 2,169mb/d for the same periods last year, the increases being primarily driven by the recoveries at the Texas City and Whiting refineries, partially offset by the net loss of throughput from previous disposals and acquisitions. Solomon availability was 4.3 percentage points higher than a year ago. Relative to the second quarter of 2008, it was slightly lower, as a result of the disruption at the Texas City refinery in September caused by Hurricane Ike. Most of the refinery units were restarted within two weeks after the hurricane shutdown. In addition, we successfully started up the second residue hydrotreater train on 1 October and have completed mechanical work on ultraformer number 3. This unit is expected to start production during the fourth quarter, completing the restoration of the economic capability of Texas City refinery.

On 29 August 2008, BP announced an agreement with Enbridge Inc. to develop a new delivery system to transport Canadian heavy crude oil from Flanagan, Illinois, to Houston and Texas City, Texas. The system is expected to be in service by late 2012 with an initial capacity of 250,000 barrels per day. The joint investment of the phased capacity additions is expected to be in the range of $1-2 billion.
 
Refinery turnaround activities are expected to be higher in the fourth quarter than in the third. The slowing of global economies, exacerbated by the current instability in global financial markets, remains a key risk to our marketing and supply businesses.

Top of page 9

 

                                             Refining and Marketing

Third 

Second 

Third 

      

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 

2008 

$ million

2008 

2007 
           
     

Non-operating items

    

(4)

(10)

9 

UK

(50)

677 

(16)

(32)

(10)

Rest of Europe

(127)

(72)

(316)

(16)

13 

US

771 

(204)

(8)

(41)

(12)

Rest of World

(84)

(207)

(344)

(99)

–  

  

510 

194 
           
     

Fair value accounting effects (a)

    

45 

(177)

270 

UK

89 

(53)

2 

(59)

122 

Rest of Europe

99 

(115)

(142)

53 

174 

US

322 

(133)

2 

22 

70 

Rest of World

66 

6 

(93)

(161)

636 

  

576 

(295)
           
     

Refinery throughputs (mb/d)

    

–  

–  

–  

UK

–  

90 

735 

753 

730 

Rest of Europe

753 

691 

1,109 

1,189 

1,158 

US

1,141 

1,086 

304 

297 

297 

Rest of World

303 

302 

2,148 

2,239 

2,185 

Total throughput

2,197 

2,169 

83.4 

88.3 

87.7 

Refining availability (%) (b)

88.0 

82.6 
           
     

Oil sales volumes (mb/d)

    
     

Refined products

    

350 

315 

303 

UK

313 

343 

1,329 

1,236 

1,281 

Rest of Europe

1,254 

1,282 

1,535 

1,498 

1,453 

US

1,468 

1,559 

641 

716 

662 

Rest of World

690 

627 

3,855 

3,765 

3,699 

Total marketing sales

3,725 

3,811 

1,687 

2,017 

2,107 

Trading/supply sales

2,057 

1,860 

5,542 

5,782 

5,806 

Total refined product sales

5,782 

5,671 

1,709 

1,848 

1,511 

Crude oil

1,739 

1,964 

7,251 

7,630 

7,317 

Total oil sales

7,521 

7,635 
           
     

Global Indicator Refining Margin ($/bbl) (c)

    

3.82 

7.46 

7.13 

NWE

6.46 

5.03 

12.58 

8.59 

9.87 

USGC

8.22 

15.74 

14.31 

6.53 

10.47 

Midwest

6.04 

16.02 

6.90 

9.94 

7.07 

USWC

7.64 

17.22 

4.52 

9.41 

5.90 

Singapore

6.69 

5.12 

8.05 

8.19 

8.03 

Average

6.93 

11.38 
           
     

Chemicals production (kte)

    

237 

164 

144 

UK

569 

739 

587 

657 

711 

Rest of Europe

2,076 

1,990 

1,117 

1,022 

850 

US

2,908 

3,240 

1,569 

1,598 

1,358 

Rest of World

4,487 

4,586 

3,510 

3,441 

3,063 

Total production

10,040 

10,555 


(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 pages 3 and 11.

(b)

Solomon 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.

(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 actual margins achieved by BP in any period because of BP’s particular refinery configurations and crude and product slate.


Top of page 10

 

                                    Other businesses and corporate

Third 

Second 

Third 

      

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 

2008 

$ million

2008 

2007 

(522)

(301)

(35)

Profit (loss) before interest and tax(a)

(529)

(790)

11 

(13)

19 

Inventory holding (gains) losses

(14)

8 
     

Replacement cost profit (loss) before

    

(511)

(314)

(16)

interest and tax

(543)

(782)
           
     

By region:

    

112 

(119)

385 

UK

147 

57 

(120)

(29)

(78)

Rest of Europe

(107)

(108)

(363)

(185)

(288)

US

(625)

(624)

(140)

19 

(35)

Rest of World

42 

(107)

(511)

(314)

(16)

  

(543)

(782)
     

Results include:

    
     

Non-operating items

    

1 

(41)

(20)

UK

(67)

(14)

(11)

(47)

(2)

Rest of Europe

(62)

17 

(195)

(33)

(105)

US

(187)

(182)

4 

(2)

(1)

Rest of World

(16)

4 

(201)

(123)

(128)

  

(332)

(175)


(a)

Includes profit after interest and tax of equity-accounted entities.


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 profit before interest and tax for the third quarter was a loss of $16 million, compared with a loss of $511 million a year ago. This result reflects a higher contribution from the operating businesses and lower corporate costs. For the nine months, the replacement cost loss before interest and tax was $543 million in 2008 compared with a loss of $782 million a year ago.

The net non-operating charge was $128 million for the third quarter and $332 million for the nine months. The third-quarter result included a $30 million restructuring charge, a $76 million net charge in relation to new, and revisions to existing, environmental and other provisions and a net charge of $22 million for impairment and other provisions. The prior year included a net non-operating charge of $201 million in the third quarter and $175 million for the nine months.

On 15 September, Alternative Energy announced BP’s first bioethanol production from its Brazilian biofuels joint venture, Tropical BioEnergia, a significant milestone in the implementation of BP’s biofuels strategy. Tropical BioEnergia farms sugar cane and refines it into fuel in a new 435 million litres per year (115 million US gallons per year) refinery. BP’s investment in Tropical BioEnergia is the largest made by any international oil company into Brazil's ethanol market.
In August, BP and Verenium Corporation announced the creation of a strategic partnership to accelerate the development and commercialization of cellulosic ethanol. Under the initial phase of the strategic alliance, Verenium is to receive $90 million in funding from BP over 18 months in exchange for rights to current and future technology held within the partnership.

Also in August, BP started commercial operations at its Silver Star wind farm in Texas, a 60MW gross capacity installation in partnership with Clipper Windpower, Inc. and at Edom Hills, California, a 20MW wholly-owned wind farm. On 20 October, BP started commercial operations of phase 1 of the Sherbino wind farm in Texas. The first 150MW of the project, which has a potential capacity of 750MW, has been built through a 50:50 joint venture with Padoma Wind Power LLC, a wholly owned subsidiary of NRG Energy, Inc.

 

Third 

Second 

Third 
 

quarter 

quarter 

quarter 
 

2008 

2008 

2007 
       

Wind – net rated capacity as at period end (megawatts) (a)

243 

172 

32 

Solar – cell production capacity as at period end (megawatts)(b)

277 

255 

201 


(a)

Net wind capacity is the sum of the rated capacities of the assets/turbines that have entered into commercial operation, including BP’s share of equity-accounted entities. The equivalent capacities on a gross-JV basis (which includes 100% of the capacity of equity-accounted entities where BP has partial ownership) are 453MW as at the third quarter of 2008, 373MW as at the second quarter of 2008 and 32MW as at the third quarter last year.

(b)

Solar capacity is the theoretical cell production capacity per annum of in-house manufacturing facilities.


Top of page 11

Information on fair value accounting effects

BP uses derivative instruments to manage the economic exposure relating to inventories above normal operating requirements of crude oil, natural gas and petroleum products as well as certain contracts to supply physical volumes at future dates. Under IFRS, these inventories and contracts are recorded at historic cost and on an accruals basis, respectively. The related derivative instruments, however, are required to be recorded at fair value with gains and losses recognized in income because hedge accounting is either not permitted or not followed, principally due to the impracticality of effectiveness testing requirements. Therefore, measurement differences in relation to recognition of gains and losses occur. Gains and losses on these inventories and contracts are not recognized until the commodity is sold in a subsequent accounting period. Gains and losses on the related derivative commodity contracts are recognized in the income statement from the time the derivative commodity contract is entered into on a fair value basis using forward prices consistent with the contract maturity.
 
IFRS requires that inventory held for trading be recorded at its fair value using period end spot prices whereas any related derivative commodity instruments are required to be recorded at values based on forward prices consistent with the contract maturity. Depending on market conditions, these forward prices can be either higher or lower than spot prices resulting in measurement differences.
 
BP enters into contracts for pipelines and storage capacity which, under IFRS, are recorded on an accruals basis. These contracts are risk managed using a variety of derivative instruments which are fair valued under IFRS. This results in measurement differences in relation to recognition of gains and losses.
 
The way that BP manages the economic exposures described above, and measures performance internally, differs from the way these activities are measured under IFRS. BP calculates this difference by comparing the IFRS result with management’s internal measure of performance, under which the inventory and the supply and capacity contracts in question are valued based on fair value using relevant forward prices prevailing at the end of the period. We believe that disclosing management’s estimate of this difference provides useful information for investors because it enables investors to see the economic effect of these activities as a whole. The impacts of fair value accounting effects, relative to management’s internal measure of performance, are shown in the table on page 3. Information for all quarters of 2006 and 2007 can be found at www.bp.com/FVAE .
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Cautionary Statement: The foregoing discussion contains forward-looking statements particularly those regarding capital expenditure, increased production, expected refinery turnaround activities and the continuing risk of slowing global economies, exacerbated by the global credit freeze, to our marketing and supply businesses. By their nature, forward-looking statements involve risk and uncertainty 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 onstream; industry product supply; demand and pricing; operational problems; general economic conditions (including inflation); political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations and quotas; exchange rate fluctuations; development and use of new technology; the success or otherwise of partnering; the actions of competitors; natural disasters and adverse weather conditions; changes in public expectations and other changes to business 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 2007 and our 2007 Annual Report on Form 20-F filed with the US Securities and Exchange Commission.

Top of page 12

 

                                           Group income statement

Third 

Second 

Third 

    

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 (a)  

2008 

  

2008 

2007 

$ million

  

$ million

71,334 

108,747 

103,174 

Sales and other operating revenues

299,666 

204,513 
     

Earnings from jointly controlled entities -

    

900 

1,752 

1,172 

after interest and tax

3,899 

2,143 
     

Earnings from associates - after interest

    

204 

251 

155 

and tax

631 

540 

172 

153 

135 

Interest and other revenues

566 

533 

72,610 

110,903 

104,636 

Total revenues (Note 4)

304,762 

207,729 
     

Gains on sale of businesses and

    

228 

79 

193 

fixed assets

1,197 

2,217 

72,838 

110,982 

104,829 

Total revenues and other income

305,959 

209,946 
           

51,810 

77,499 

77,234 

Purchases

217,122 

144,453 

6,297 

7,408 

7,549 

Production and manufacturing expenses

21,756 

18,325 

921 

2,299 

1,886 

Production and similar taxes (Note 5)

5,794 

2,495 

2,505 

2,850 

2,653 

Depreciation, depletion and amortization

8,285 

7,559 
     

Impairment and losses on sale

    

129 

23 

54 

of businesses and fixed assets

117 

807 

244 

118 

232 

Exploration expense

643 

555 

4,137 

3,977 

3,794 

Distribution and administration expenses

11,667 

11,159 
     

Fair value (gain) loss on embedded

    

(14)

2,081 

(1,098)

derivatives

1,673 

(452)

6,809 

14,727 

12,525 

Profit before interest and taxation

38,902 

25,045 

337 

381 

391 

Finance costs (Note 6)

1,178 

985 
     

Net finance income relating to pensions

    

(164)

(160)

(153)

and other post-retirement benefits (Note 7)

(473)

(486)

6,636 

14,506 

12,287 

Profit before taxation

38,197 

24,546 

2,158 

5,036 

4,101 

Taxation

13,329 

7,881 

4,478 

9,470 

8,186 

Profit for the period

24,868 

16,665 
     

Attributable to:

    

4,406 

9,358 

8,049 

BP shareholders

24,501 

16,446 

72 

112 

137 

Minority interest

367 

219 

4,478 

9,470 

8,186 

  

24,868 

16,665 
     

Earnings per share – cents

    
     

Profit for the period attributable to

    
     

BP shareholders

    

23.18 

49.70 

42.93 

Basic

130.21 

85.61 

23.07 

49.23 

42.56 

Diluted

129.04 

85.19 


(a)

Comparative data for 2008 has been amended. See Note 2(d) for further details.


Top of page 13

 

                                            Group balance sheet

 

30 September 

31 December 
 

2008 

2007 
 

$ million

Non - current assets

    

Property, plant and equipment

102,889 

97,989 

Goodwill

10,566 

11,006 

Intangible assets

10,040 

6,652 

Investments in jointly controlled entities

24,862 

18,113 

Investments in associates

4,199 

4,579 

Other investments

1,250 

1,830 

Fixed assets

153,806 

140,169 

Loans

1,151 

999 

Other receivables

896 

968 

Derivative financial instruments

5,309 

3,741 

Prepayments

1,194 

1,083 

Defined benefit pension plan surplus

8,494 

8,914 
 

170,850 

155,874 

Current assets

    

Loans

167 

165 

Inventories

27,277 

26,554 

Trade and other receivables

39,201 

38,020 

Derivative financial instruments

8,384 

6,321 

Prepayments

3,769 

3,589 

Current tax receivable

332 

705 

Cash and cash equivalents

6,142 

3,562 
 

85,272 

78,916 

Assets classified as held for sale

– 

1,286 
 

85,272 

80,202 

Total assets

256,122 

236,076 

Current liabilities

    

Trade and other payables

43,948 

43,152 

Derivative financial instruments

9,187 

6,405 

Accruals

6,825 

6,640 

Finance debt

14,258 

15,394 

Current tax payable

4,013 

3,282 

Provisions

2,074 

2,195 
 

80,305 

77,068 

Liabilities directly associated with the assets classified as held for sale

– 

163 
 

80,305 

77,231 

Non - current liabilities

    

Other payables

2,809 

1,251 

Derivative financial instruments

7,915 

5,002 

Accruals

863 

959 

Finance debt

14,042 

15,651 

Deferred tax liabilities

21,573 

19,215 

Provisions

12,744 

12,900 

Defined benefit pension plan and other

    

post-retirement benefit plan deficits

9,081 

9,215 
 

69,027 

64,193 

Total liabilities

149,332 

141,424 

Net assets

106,790 

94,652 

Equity

    

BP shareholders’ equity

105,704 

93,690 

Minority interest

1,086 

962 
 

106,790 

94,652 


Top of page 14

 

             Group statement of recognized income and expense

Third 

Second 

Third 

    

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 (a)  

2008 

  

2008 

2007 

$ million

  

$ million

788 

255 

(3,125)

Currency translation differences

(2,092)

1,583 
     

Exchange gain on translation of foreign

    
     

operations transferred to gain on sale

    

– 

– 

– 

of businesses and fixed assets

– 

(147)
     

Available-for-sale investments marked

    

(13)

322 

(703)

to market

(572)

(116)
     

Available-for-sale investments - recycled

    

– 

– 

(15)

to the income statement

(20)

– 

139 

49 

(594)

Cash flow hedges marked to market

(471)

180 
     

Cash flow hedges - recycled to the

    

(5)

1 

16 

income statement

15 

(86)
     

Cash flow hedges - recycled to the

    

(2)

(18)

(20)

balance sheet

(61)

(9)

90 

107 

203 

Taxation

192 

118 
     

Net income (expense) recognized

    

997 

716 

(4,238)

directly in equity

(3,009)

1,523 

4,478 

9,470 

8,186 

Profit for the period

24,868 

16,665 
     

Total recognized income and expense

    

5,475 

10,186 

3,948 

for the period

21,859 

18,188 
     

Attributable to:

    

5,372 

10,075 

3,825 

BP shareholders

21,503 

17,917 

103 

111 

123 

Minority interest

356 

271 

5,475 

10,186 

3,948 

  

21,859 

18,188 


(a)

Comparative data for 2008 has been amended. See Note 2(d) for further details.

 

 

                           Movement in shareholders’ equity

 

BP

    
 

shareholders’

Minority

Total 
 

equity

interest

equity

$ million

      

At 31 December 2007

93,690  

962  

94,652  
       

Currency translation differences (net of tax)

(1,822)

(11)

(1,833)

Available-for-sale investments (net of tax)

(542)

– 

(542)

Cash flow hedges (net of tax)

(441)

– 

(441)

Tax on share-based payments

(193)

– 

(193)

Profit for the period

24,501  

367  

24,868  

Total recognized income and expense for the period

21,503  

356  

21,859  
       

Dividends

(7,723)

(232)

(7,955)

Repurchase of ordinary share capital

(2,414)

– 

(2,414)

Share-based payments

648  

– 

648  
       

At 30 September 2008

105,704 

1,086 

106,790 


Top of page 15

 

                            Group cash flow statement

Third 

Second 

Third 

    

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 (a)  

2008 

  

2008 

2007 

$ million

  

$ million
     

Operating activities

    

6,636 

14,506 

12,287 

Profit before taxation

38,197 

24,546 
     

Adjustments to reconcile profits

    
     

before tax to net cash provided

    
     

by operating activities

    

146 

44 

98 

Exploration expenditure written off

326 

261 

2,505 

2,850 

2,653 

Depreciation, depletion and amortization

8,285 

7,559 
     

Impairment and (gain) loss on sale

    

(99)

(56)

(139)

of businesses and fixed assets

(1,080)

(1,410)
     

Earnings from jointly controlled

    

(1,104)

(2,003)

(1,327)

entities and associates

(4,530)

(2,683)
     

Dividends received from jointly

    

1,060 

512 

759 

controlled entities and associates

2,658 

2,102 

(2,788)

(9,135)

533 

Working capital and other movements

(11,380)

(9,955)

6,356 

6,718 

14,864 

Net cash provided by operating activities

32,476 

20,420 
     

Investing activities

    

(4,336)

(4,713)

(7,748)

Capital expenditure

(16,896)

(12,315)

(27)

(209)

–  

Acquisitions, net of cash acquired

(209)

(1,225)

(122)

(247)

(194)

Investment in jointly controlled entities

(807)

(143)

(37)

(3)

(14)

Investment in associates

(21)

(146)

211 

59 

365 

Proceeds from disposal of fixed assets

700 

1,357 
     

Proceeds from disposal of businesses,

    

– 

– 

– 

net of cash disposed

– 

2,513 

45 

212 

150 

Proceeds from loan repayments

484 

123 

– 

– 

(200)

Other

(200)

374 
     

Net cash (used in) provided by investing

    

(4,266)

(4,901)

(7,641)

activities

(16,949)

(9,462)
     

Financing activities

    

(1,441)

(928)

(814)

Net repurchase of shares

(2,631)

(5,761)

107 

655 

397 

Proceeds from long-term financing

3,229 

2,978 

(369)

(1,654)

(65)

Repayments of long-term financing

(2,256)

(1,596)

1,426 

1,516 

(1,380)

Net increase (decrease) in short-term debt

(3,288)

(631)

(2,066)

(2,545)

(2,624)

Dividends paid - BP shareholders

(7,723)

(6,050)

(24)

(86)

(110)

- Minority interest

(232)

(159)
     

Net cash (used in) provided by

    

(2,367)

(3,042)

(4,596)

financing activities

(12,901)

(11,219)
     

Currency translation differences

    

44 

(2)

(78)

relating to cash and cash equivalents

(46)

81 
     

Increase (decrease) in cash and cash

    

(233)

(1,227)

2,549 

equivalents

2,580 

(180)
     

Cash and cash equivalents at

    

2,643 

4,820 

3,593 

beginning of period

3,562 

2,590 

2,410 

3,593 

6,142 

Cash and cash equivalents at end of period

6,142 

2,410 


(a)

Comparative data for 2008 has been amended. See Note 2(d) for further details.


Top of page 16

 

                                          Group cash flow statement

Third 

Second 

Third 

    

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 (a)  

2008 

  

2008 

2007 

$ million

  

$ million
     

Working capital and other movements

    

(154)

(118)

(96)

Interest receivable

(311)

(342)

152 

110 

89 

Interest received

298 

340 

337 

381 

391 

Finance costs

1,178 

985 

(300)

(396)

(206)

Interest paid

(968)

(968)
     

Net finance income relating to pensions

    

(164)

(160)

(153)

and other post-retirement benefits

(473)

(486)

129 

173 

128 

Share-based payments

366 

311 
     

Net operating charge for pensions and

    
     

other post-retirement benefits, less

    
     

contributions and benefit payments

    

(61)

46 

(14)

for unfunded plans

149 

(179)

362 

(40)

92 

Net charge for provisions, less payments

(113)

(52)

(803)

(8,303)

6,096 

(Increase) decrease in inventories

(1,075)

(2,134)
     

(Increase) decrease in other current and

    

956 

(18,626)

22,470 

non-current assets

(6,000)

3,474 
     

Increase (decrease) in other current and

    

(104)

21,219 

(23,736)

non-current liabilities

5,478 

(4,533)

(3,138)

(3,421)

(4,528)

Income taxes paid

(9,909)

(6,371)

(2,788)

(9,135)

533 

  

(11,380)

(9,955)


(a)

Comparative data for 2008 has been amended. See Note 2(d) for further details.


Top of page 17

 

                       Capital expenditure and acquisitions

Third 

Second 

Third 

    

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 

2008 

  

2008 

2007 

$ million

  

$ million
     

By business

    
           
     

Exploration and Production

    

279 

256 

323 

UK

804 

699 

124 

165 

173 

Rest of Europe

506 

319 

1,176 

1,801 

5,252 

US (a)

8,268 

3,785 

1,721 

1,727 

1,682 

Rest of World(b)

7,803 

5,254 

3,300 

3,949 

7,430 

  

17,381 

10,057
     

Refining and Marketing

    

127 

77 

77 

UK

207 

287 

379 

379 

323 

Rest of Europe(c)

918 

1,855 

466 

662 

564 

US (b)

3,523 

1,115 

155 

126 

152 

Rest of World

380 

353 

1,127 

1,244 

1,116 

  

5,028 

3,610 
     

Other businesses and corporate

    

35 

45 

55 

UK

171 

113 

6 

12 

8 

Rest of Europe

33 

18 

81 

463 

228 

US

958 

195 

23 

89 

21 

Rest of World

134 

35 

145 

609 

312 

  

1,296 

361 

4,572 

5,802 

8,858 

  

23,705 

14,028 
     

By geographical area

    

441 

378 

455 

UK

1,182 

1,099 

509 

556 

504 

Rest of Europe

1,457 

2,192 

1,723 

2,926 

6,044 

US

12,749 

5,095 

1,899 

1,942 

1,855 

Rest of World

8,317 

5,642 

4,572 

5,802 

8,858 

  

23,705 

14,028 
     

Included above:

    

2 

324 

–  

Acquisitions and asset exchanges(b)(c)

2,288 

1,447 


Capital expenditure, excluding acquisitions and asset exchanges and excluding the accounting for our transactions with Husky (see page 26) and Chesapeake (see note (a) below), was $5,229 million for the quarter and $14,940 million for the nine months.

(a)

Third quarter 2008 includes capital expenditure of $3,652 million in Exploration and Production relating to the purchase of all of Chesapeake Energy Corporation’s interest in the Arkoma Basin Woodford Shale assets and the purchase of a 25% interest in Chesapeake’s Fayetteville Shale assets.

(b)

During the first quarter 2008 there was capital expenditure of $2,848 million in Exploration and Production and an asset exchange of $1,793 million in Refining and Marketing relating to the formation of an integrated North American oil sands business with Husky Energy, Inc. Second quarter 2008 includes a further $111 million in Refining and Marketing reflecting closing adjustments relating to this transaction. Third quarter 2008 includes a reduction of $23 million in Exploration and Production reflecting closing adjustments relating to this transaction. For further information see Note 3.

(c)

Nine months ended 30 September 2007 includes $1,132 million for the acquisition of Chevron’s Netherlands manufacturing company.


                                            Exchange rates

Third 

Second 

Third 

      

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 

2008 

  

2008 

2007 
     

2.02 

1.97 

1.89 

US dollar/sterling average rate for the period

1.95 

1.99 

2.02 

1.99 

1.81 

US dollar/sterling period-end rate

1.81 

2.02 

1.37 

1.56 

1.50 

US dollar/euro average rate for the period

1.52 

1.34 

1.42 

1.58 

1.44 

US dollar/euro period-end rate

1.44 

1.42 


Top of page 18

 

                       Analysis of profit before interest and tax

Third 

Second 

Third 

    

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 (a)  

2008 

  

2008 

2007 

$ million

  

$ million
     

By business

    
           
     

Exploration and Production

    

633 

(124)

2,488 

UK

3,287 

2,860 

227 

350 

424 

Rest of Europe

1,050 

1,137 

1,774 

3,639 

3,677 

US

10,406 

5,718 

3,663 

6,954 

5,956 

Rest of World

18,675 

10,064 

6,297 

10,819 

12,545 

  

33,418 

19,779 
           
     

Refining and Marketing

    

(13)

124 

30 

UK

223 

893 

623 

1,722 

172 

Rest of Europe

2,838 

2,133 

(131)

1,730 

(1,343)

US

1,502 

1,798 

452 

854 

318 

Rest of World

1,617 

1,185 

931 

4,430 

(823)

  

6,180 

6,009 
           
     

Other businesses and corporate

    

112 

(119)

385 

UK

147 

57 

(121)

(29)

(78)

Rest of Europe

(107)

(108)

(373)

(172)

(307)

US

(611)

(632)

(140)

19 

(35)

Rest of World

42 

(107)

(522)

(301)

(35)

  

(529)

(790)

6,706 

14,948 

11,687 

  

39,069 

24,998 

103 

(221)

838 

Consolidation adjustment

(167)

47 

6,809 

14,727 

12,525 

Total for period

38,902 

25,045 
           
     

By geographical area

    

731 

(120)

2,904 

UK

3,657 

3,809 

718 

1,581 

807 

Rest of Europe

3,281 

3,176 

1,364 

5,449 

2,657 

US

11,713 

6,918 

3,996 

7,817 

6,157 

Rest of World

20,251 

11,142 

6,809 

14,727 

12,525 

Total for period

38,902 

25,045 


(a)

Comparative data for 2008 has been amended. See Note 2(d) for further details.


Top of page 19

 

        Analysis of replacement cost profit before interest and tax

Third 

Second 

Third 

    

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 (a)  

2008 

  

2008 

2007 

$ million

  

$ million
     

By business

    
           
     

Exploration and Production

    

633 

(124)

2,488 

UK

3,287 

2,860 

227 

350 

424 

Rest of Europe

1,050 

1,136 

1,775 

3,601 

3,739 

US

10,425 

5,689 

3,672 

6,944 

6,058 

Rest of World

18,790 

10,047 

6,307 

10,771 

12,709 

  

33,552 

19,732 
     

Refining and Marketing

    

19 

118 

188 

UK

413 

914 

492 

429 

1,045 

Rest of Europe

2,103 

1,374 

(522)

(401)

338 

US

91 

573 

382 

393 

401 

Rest of World

1,153 

1,056 

371 

539 

1,972 

  

3,760 

3,917 
     

Other businesses and corporate

    

112 

(119)

385 

UK

147 

57 

(120)

(29)

(78)

Rest of Europe

(107)

(108)

(363)

(185)

(288)

US

(625)

(624)

(140)

19 

(35)

Rest of World

42 

(107)

(511)

(314)

(16)

  

(543)

(782)

6,167 

10,996 

14,665 

  

36,769 

22,867 

103 

(221)

838 

Consolidation adjustment

(167)

47 

6,270 

10,775 

15,503 

Total for period

36,602 

22,914 
     

By geographical area

    

763 

(126)

3,062 

UK

3,847 

3,830 

590 

287 

1,680 

Rest of Europe

2,546 

2,417 

983 

3,267 

4,419 

US

10,307 

5,672 

3,934 

7,347 

6,342 

Rest of World

19,902 

10,995 

6,270 

10,775 

15,503 

Total for period

36,602 

22,914 


(a)

Comparative data for 2008 has been amended. See Note 2(d) for further details.


Top of page 20

 

                              Analysis of non–operating items

Third 

Second 

Third 

    

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 

2008 

  

2008

2007 

$ million

  

$ million
     

By business

    
           
     

Exploration and Production

    
     

Impairment and gain (loss) on sale

    

1 

111 

33 

of businesses and fixed assets

165 

708 

(12)

(5)

(7)

Environmental and other provisions

(12)

(12)
     

Restructuring, integration and

    

– 

– 

(6)

rationalization costs

(50)

–  
     

Fair value gain (loss) on embedded

    

21 

(2,082)

1,098 

derivatives

(1,668)

449 

– 

– 

– 

Other

331 

–  

10 

(1,976)

1,118 

  

(1,234)

1,145 
     

Refining and Marketing

    
     

Impairment and gain (loss) on sale

    

105 

(13)

114 

of businesses and fixed assets

915 

693 

(138)

– 

(62)

Environmental and other provisions

(62)

(138)
     

Restructuring, integration and

    

–  

(86)

(52)

rationalization costs

(343)

– 
     

Fair value gain (loss) on embedded

    

–  

– 

– 

derivatives

– 

– 

(311)

– 

– 

Other

– 

(361)

(344)

(99)

– 

  

510 

194 
     

Other businesses and corporate

    
     

Impairment and gain (loss) on sale

    

(7)

(42)

(8)

of businesses and fixed assets

– 

9 

(35)

– 

(76)

Environmental and other provisions

(76)

(35)
     

Restructuring, integration and

    

– 

(75)

(30)

rationalization costs

(163)

– 
     

Fair value gain (loss) on embedded

    

(7)

1 

– 

derivatives

(5)

3 

(152)

(7)

(14)

Other

(88)

(152)

(201)

(123)

(128)

  

(332)

(175)
           

(535)

(2,198)

990 

Total before taxation

(1,056)

1,164 

174 

770 

(331)

Taxation credit (charge) (a)

383 

(365)

(361)

(1,428)

659 

Total after taxation for period

(673)

799 


(a)

Tax on non-operating items is calculated using the quarter’s effective tax rate on replacement cost profit. Amounts for comparative periods have been amended to reflect a redefinition of the effective tax rate on replacement cost profit arising as a result of the exclusion of tax effects on inventory holding gains and losses as described on page 2.


Top of page 21

 

                                   Realizations and marker prices

Third 

Second 

Third 

    

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 

2008 

  

2008 

2007 
     
     

Average realizations (a)

    
     

Liquids ($/bbl) (b)

    

72.99 

128.56 

99.80 

UK

108.21 

62.88 

67.47 

101.88 

112.03 

US

100.36 

59.30 

73.56 

111.23 

114.59 

Rest of World

105.62 

63.88 

71.12 

109.95 

111.47 

BP Average

103.96 

62.00 
     

Natural gas ($/mcf)

    

4.89 

8.39 

8.28 

UK

8.23 

5.84 

4.64 

8.76 

7.88 

US

7.79 

5.44 

3.42 

5.26 

5.61 

Rest of World

5.28 

3.63 

3.93 

6.63 

6.49 

BP Average

6.32 

4.42 
           
     

Average oil marker prices ($/bbl)

    

74.74 

121.18 

115.09 

Brent

111.11 

67.12 

75.24 

123.81 

118.07 

West Texas Intermediate

113.49 

66.15 

76.31 

123.61 

117.16 

Alaska North Slope US West Coast

112.68 

66.06 

69.37 

116.82 

112.85 

Mars

107.11 

61.67 

71.98 

117.47 

113.32 

Urals (NWE - cif)

108.18 

63.82 

41.95 

63.15 

52.94 

Russian domestic oil

54.31 

36.33 
     

Average natural gas marker prices

    

6.16 

10.94 

10.25 

Henry Hub gas price ($/mmbtu) (c)

9.74 

6.83 
     

UK Gas - National Balancing

    

30.58 

60.72 

61.48 

Point (p/therm)

58.44 

24.45 


(a)

Based on sales of consolidated subsidiaries only - this excludes equity-accounted entities.

(b)

Crude oil and natural gas liquids.

(c)

Henry Hub First of Month Index.


Top of page 22

Notes

1. Basis of preparation

The interim financial information included in this report has been prepared in accordance with IAS 34 ‘Interim Financial Reporting’.

The results for the interim periods are unaudited and in the opinion of management include all adjustments necessary for a fair presentation of the results for the periods presented. All such adjustments are of a normal recurring nature. The interim financial statements and notes included in this report should be read in conjunction with the consolidated financial statements and related notes for the year ended 31 December 2007 included in BP Annual Report and Accounts 2007.

BP prepares its consolidated financial statements included within its Annual Report and Accounts in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), IFRS as adopted by the European Union (EU) and in accordance with the provisions of the Companies Act 1985. IFRS as adopted by the EU differs in certain respects from IFRS as issued by the IASB, however, the differences have no impact on the group’s consolidated financial statements for the periods presented. The financial information presented herein has been prepared in accordance with the accounting policies expected to be used in preparing the Annual Report and Accounts 2008, which do not differ significantly from those used in BP Annual Report and Accounts 2007.

2. Resegmentation and other changes to comparatives

(a) Resegmentation

On 11 October 2007, we announced our intention to simplify the organizational structure of BP. From 1 January 2008, there are only two business segments – Exploration and Production and Refining and Marketing. A separate business, Alternative Energy, handles BP’s low-carbon businesses and future growth options outside oil and gas. This includes solar, wind, gas-fired power, hydrogen, biofuels and coal conversion.
 
As a result, and with effect from 1 January 2008:

-     

The Gas, Power and Renewables segment ceased to report separately.

-     

The natural gas liquids (NGLs), liquefied natural gas and gas and power marketing and trading businesses were transferred from the Gas, Power and Renewables segment to the Exploration and Production segment.

-     

The Alternative Energy business was transferred from the Gas, Power and Renewables segment to Other businesses and corporate.

-     

The Emerging Consumers Marketing Unit was transferred from Refining and Marketing to Alternative Energy.

-     

The Biofuels business was transferred from Refining and Marketing to Alternative Energy.

-     

The Shipping business was transferred from Refining and Marketing to Other businesses and corporate.



As a result of the transfers identified above, Other businesses and corporate has been redefined. It now consists of 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.

Financial information for 2003 to 2007 has been restated to reflect the resegmentation and is available in BP Financial and Operating Information 2003-2007 and to download from www.bp.com/investors . Quarterly data is provided for 2004-2007 and annual data for 2003.

Top of page 23

 

                                                                 Notes

2. Resegmentation and other changes to comparatives (continued)

 

      Resegmented

        As reported
 

Nine 

Third 

Nine 

Third 
 

months 

quarter 

months 

quarter 
 

2007 

2007 

2007 

2007 

$ million

        

Total revenues

        

Exploration and Production

26,584 

8,414 

13,442 

4,532 

Refining and Marketing

179,251 

63,516 

179,653 

63,640 

Gas, Power and Renewables

– 

– 

13,910 

4,164 

Other businesses and corporate

1,894 

680 

724 

274 

Total third party revenues

207,729 

72,610 

207,729 

72,610 
         

Profit before interest and tax

        

Exploration and Production

19,779 

6,297 

19,295 

6,347 

Refining and Marketing

6,009 

931 

6,046 

936 

Gas, Power and Renewables

– 

– 

370 

(71)

Other businesses and corporate

(790)

(522)

(739)

(462)
 

24,998 

6,706 

24,972 

6,750 

Consolidation adjustment

47 

103 

73 

59 

Profit before interest and tax

25,045 

6,809 

25,045 

6,809 


(b) Revised income statement presentation

We have implemented a minor change in the presentation of the group income statement whereby the unwinding of the discount on provisions and on other payables is now included within finance costs. Previously, this was included within other finance income or expense. This line item has now been renamed net finance income or expense relating to pensions and other post-retirement benefits. This change does not affect profit before interest and taxation, profit before taxation or profit for the period. The financial information for comparative periods shows the revised presentation, as set out below.

 

Nine 

Third 
 

months 

quarter 
 

2007 

2007 

As reported

    

$ million

    

Profit before interest and taxation

25,045 

6,809 

Finance costs

777 

262 

Other finance income

(278)

(89)

Profit before taxation

24,546 

6,636 
     

As amended

    

$ million

    

Profit before interest and taxation

25,045 

6,809 

Finance costs

985 

337 

Net finance income relating to pensions and other post-retirement benefits

(486)

(164)

Profit before taxation

24,546 

6,636 


Top of page 24

Notes

2. Resegmentation and other changes to comparatives (continued)

(c) Revised definition of net debt

Net debt has been redefined to include 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’. Amounts for comparative periods are presented on a consistent basis.

 

Nine 
 

months 
 

and 
 

third 
 

quarter 
 

2007 

As reported

  

$ million

  

Net debt

22,835 

Equity

91,494 
   

Ratio of net debt to net debt plus equity

20%
   

As amended

  

$ million

  

Net debt

22,195 

Equity

91,494 
   

Ratio of net debt to net debt plus equity

20%


(d) Amendment to first and second quarter 2008 consolidation adjustment

The consolidation adjustment for the nine months amounts to $167 million. The consolidation adjustments for the first and second quarters of 2008 have been amended from the amounts previously reported to correct for an error in the calculation for the elimination of unrealised profit arising on transfers of inventory between business segments. The amounts as previously reported and as amended are set out below. The impact of these errors was immaterial for 2007 and so comparative data for 2007 has not been amended.
 

 

First 

Second 

First 
 

quarter 

quarter 

half 
 

2008 

2008 

2008 

Consolidation adjustment

      

$ million

      

As previously reported

(195)

(39)

(234)

As amended

(784)

(221)

(1,005)


Profit for the period attributable to BP shareholders and replacement cost profit attributable to BP shareholders have been reduced by $357 million and $107 million, after tax, for the first and second quarters respectively. The error had no impact on the results of the Exploration and Production and Refining and Marketing segments or Other businesses and corporate, which are unchanged.
 
Further details of the main income statement and balance sheet items impacted by this change are shown in the following tables.
 
 

Top of page 25

 

                                                       Notes

 

First quarter 2008 

Second quarter 2008 

First half 2008 
 

As 

As 

As 

As 

As 

As 
 

reported 

amended 

reported 

amended 

reported 

amended 
 

$ million (except per share amounts)

Group income statement

          

Profit before taxation

11,993 

11,404 

14,688 

14,506 

26,681 

25,910

Taxation

4,410 

4,192 

5,100 

5,036 

9,510 

9,228 

Profit for the period

7,583 

7,212 

9,588 

9,470 

17,171 

16,682 

Profit for the period

            

attributable to BP

            

shareholders

7,451 

7,094 

9,465 

9,358 

16,916 

16,452 
             

Replacement cost profit

          

RC profit before interest

            

and tax

10,913 

10,324 

10,957 

10,775 

21,870 

21,099 

Finance costs and net

            

finance income relating

            

to pensions and other

            

post-retirement benefits

(246)

(246)

(221)

(221)

(467)

(467)

Taxation on a replacement

            

cost basis

(3,947)

(3,729)

(3,760)

(3,696)

(7,707)

(7,425)

Minority interest

(132)

(118)

(123)

(112)

(255)

(230)

Replacement cost profit

            

for the period attributable

            

to BP shareholders

6,588 

6,231 

6,853 

6,746 

13,441 

12,977 
             

Earnings per ordinary share - cents

          

Profit for the period

            

attributable to BP

            

shareholders

39.47 

37.58 

50.27 

49.70 

89.74 

87.28 

RC profit for the period

            

attributable to BP

            

shareholders

34.90 

33.01 

36.40 

35.83 

71.30 

68.84 
             

Group balance sheet

            

Inventories

26,588 

25,999 

35,182 

34,411 

35,182 

34,411 

Deferred tax liabilities

20,165 

19,947 

20,935 

20,653 

20,935 

20,653 

Net assets

99,536 

99,165 

106,454 

105,965 

106,454 

105,965 

BP shareholders’ equity

98,474 

98,117 

105,356 

104,892 

105,356 

104,892 


Top of page 26

Notes

3. Significant transaction in the nine months

In December 2007, BP signed a memorandum of understanding with Husky Energy Inc. to form an integrated North American oil sands business. The transaction was completed on 31 March 2008, with BP contributing its Toledo refinery to a US jointly controlled entity to which Husky contributed $250 million cash and a payable of $2,590 million. In Canada, Husky contributed its Sunrise field to a second jointly controlled entity, with BP contributing $250 million in cash and a payable of $2,267 million. The Toledo refinery assets and associated liabilities were classified as a disposal group held for sale at 31 December 2007.

     

Both jointly controlled entities are owned 50:50 by BP and Husky and are accounted for using the equity method.
 
The amounts set out below reflect the initial recording of the transaction at 31 March 2008 and subsequent closing adjustments.
 

 

$ million 

Income statement

  

Gains on sale of businesses and fixed assets

806 

Profit before taxation

806 

Taxation

345 

Profit for the period

461 
   

Balance sheet

  

Non-current assets – investments in jointly controlled entities

4,729 

Current liabilities – trade and other payables

266 

Non-current liabilities

  

Other payables

2,001 

Deferred tax liabilities

653 
 

2,654 

Total liabilities

2,920 

Net assets

1,809 
   

Cash flow statement

  

Investment in jointly controlled entities

(250)
   

Capital expenditure and acquisitions

  

Exploration and Production

2,825 

Refining and Marketing

1,904 
 

4,729 

Including acquisitions and asset exchanges:

1,904 


During the nine months, equity-accounted earnings from these jointly controlled entities amounted to $154 million.

BP purchased refined products from the Toledo jointly controlled entity during the nine months amounting to $2,710 million. In addition, BP purchased crude oil from third parties which it sold to the Toledo jointly controlled entity under an agency agreement. The fees earned by BP for this service, and the total amounts receivable and payable at 30 September 2008 under these arrangements, were not significant. BP will also purchase refinery feedstocks from the Sunrise jointly controlled entity once production commences, which is expected in 2012.
 

Top of page 27

 

                                                                Notes

4. Total revenues

Third 

Second 

Third 

    

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 

2008 

  

2008 

2007 

$ million

  

$ million
     

By business

    

14,769 

26,294 

24,694 

Exploration and Production

75,053 

48,118 

63,743 

98,206 

92,458 

Refining and Marketing

267,527 

180,867 

1,002 

1,255 

1,494 

Other businesses and corporate

3,941 

2,870 

79,514 

125,755 

118,646 

  

346,521 

231,855 
           
     

Less: sales between businesses

    

6,355 

13,485 

13,043 

Exploration and Production

38,747 

21,534 

227 

960 

403 

Refining and Marketing

1,632 

1,616 

322 

407 

564 

Other businesses and corporate

1,380 

976 

6,904 

14,852 

14,010 

  

41,759 

24,126 
           
     

Third party revenues

    

8,414 

12,809 

11,651 

Exploration and Production

36,306 

26,584 

63,516 

97,246 

92,055 

Refining and Marketing

265,895 

179,251 

680 

848 

930 

Other businesses and corporate

2,561 

1,894 

72,610 

110,903 

104,636 

Total third party revenues

304,762 

207,729 
           
     

By geographical area

    

25,218 

48,202 

40,830 

UK

125,929 

76,948 

19,686 

27,806 

27,230 

Rest of Europe

78,693 

55,561 

26,533 

39,157 

37,714 

US

108,602 

76,606 

19,456 

33,263 

31,889 

Rest of World

92,009 

56,114 

90,893 

148,428 

137,663 

  

405,233 

265,229 

18,283 

37,525 

33,027 

Less: sales between areas

100,471 

57,500 

72,610 

110,903 

104,636 

  

304,762 

207,729 


5. Production and similar taxes

Third 

Second 

Third 

    

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 

2008 

  

2008 

2007 

$ million

  

$ million

(34)

68 

57 

UK

282 

33 

955 

2,231 

1,829 

Overseas

5,512 

2,462 

921 

2,299 

1,886 

  

5,794 

2,495 


6. Finance costs

Third 

Second 

Third 

    

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 

2008 

  

2008 

2007 

$ million

  

$ million

348 

316 

314 

Interest payable

1,012 

1,040 

(86)

(44)

(31)

Capitalized

(120)

(263)

75 

74 

75 

Unwinding of discount on provisions

218 

208 
     

Unwinding of discount on other

    

– 

35 

33 

payables

68 

– 

337 

381 

391 

  

1,178 

985 


Top of page 28

 

                                                            Notes

7. Net finance income relating to pensions and other post-retirement benefits

Third 

Second 

Third 

    

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 

2008 

  

2008 

2007 

$ million

  

$ million
     

Interest on pension and other post-

    

555 

612 

594 

retirement benefit plan liabilities

1,818 

1,639 
     

Expected return on pension and other

    

(719)

(772)

(747)

post-retirement benefit plan assets

(2,291)

(2,125)

(164)

(160)

(153)

  

(473)

(486)


8. Analysis of changes in net debt

Third 

Second 

Third 

    

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 

2008 

  

2008 

2007 

$ million

  

$ million
     

Opening balance

    

23,754 

29,871 

30,189 

Finance debt

31,045 

24,010 

2,643 

4,820 

3,593 

Less: Cash and cash equivalents

3,562 

2,590 
     

Less: FV asset (liability) of hedges

    

379 

1,234 

900 

related to finance debt

666 

298 

20,732 

23,817 

25,696 

Opening net debt

26,817 

21,122 
           
     

Closing balance

    

25,245 

30,189 

28,300 

Finance debt

28,300 

25,245 

2,410 

3,593 

6,142 

Less: Cash and cash equivalents

6,142 

2,410 
     

Less: FV asset (liability) of hedges

    

640 

900 

149 

related to finance debt

149 

640 

22,195 

25,696 

22,009 

Closing net debt

22,009 

22,195 

(1,463)

(1,879)

3,687 

Decrease (increase) in net debt

4,808 

(1,073)
           
     

Movement in cash and cash

    
     

equivalents excluding

    

(277)

(1,225)

2,627 

(exchange adjustments)

2,626 

(261)
     

Net cash outflow (inflow) from

    

(1,164)

(517)

1,048 

financing (excluding share capital)

2,315 

(751)

(21)

(114)

(8)

Other movements

(129)

(45)
     

Movement in net debt before

    

(1,462)

(1,856)

3,667 

exchange effects

4,812 

(1,057)

(1)

(23)

20 

Exchange adjustments

(4)

(16)

(1,463)

(1,879)

3,687 

Decrease (increase) in net debt

4,808 

(1,073)


Net debt has been redefined, for further information see Note 2. Amounts for comparative periods are presented on a consistent basis.

Top of page 29

 

                                                                Notes

9. TNK-BP operational and financial information

Third

Second 

Third 

    

quarter 

quarter 

quarter 

  

Nine months

2007 

2008 

2008 

  

2008 

2007 
           
     

Production (Net of royalties)

    
     

(BP share)

    

830 

825 

833 

Crude oil (mb/d)

825 

833 

364 

546 

579 

Natural gas (mmcf/d)

546 

456 

892 

919 

932 

Total hydrocarbons (mboe/d)(a)

919 

912 
           

$ million

  

$ million
     
     

Income statement (BP share)

    

1,094 

2,026 

1,345 

Profit before interest and tax

4,580 

2,466 

(67)

(56)

(71)

Finance costs

(203)

(193)

(289)

(524)

(369)

Taxation

(1,224)

(580)

(66)

(95)

(56)

Minority interest

(209)

(173)

672 

1,351 

849 

Net income

2,944 

1,520 
     

Cash flow

    

800 

– 

300 

Dividends received

1,500 

1,300 


Balance Sheet

30 September

31 December 
 

2008 

2007 

Investments in jointly controlled entities

9,621 

8,817 

Trade and other receivables - Dividends receivable

640 

– 


(a)

Natural gas is converted to oil equivalent at 5.8 billion cubic feet = 1 million barrels.


As previously announced on 4 September 2008, BP and Alfa Access-Renova signed a Memorandum of Understanding. The Memorandum of Understanding sets out the parties’ agreement in principle, subject to execution of definitive agreements, to new commercial principles relating to the governance of TNK-BP, to the potential future sale, at an appropriate time and subject to certain conditions, of up to 20% of a subsidiary of TNK-BP through an initial public offering, and to address the claims between them. Negotiations continue between the parties to reach agreement on definitive documentation.

10. Inventory valuation

Due to falling oil prices, an expense of $1,217 million has been recognized in the third quarter 2008 and $1,127 million in the nine months ended 30 September 2008 representing the write-down of inventories to their net realisable value. This affects profit for the period only; replacement cost profit is unaffected.

11. Fourth quarter results

BP’s fourth quarter results will be announced on 3 February 2009.

12. Statutory accounts

The financial information shown in this publication, which was approved by the Board of Directors on 27 October 2008, is unaudited and does not constitute statutory financial statements. BP Annual Report and Accounts 2007 has been filed with the Registrar of Companies; the report of the auditors on those accounts was unqualified and did not contain a statement under section 237(2) or section 237(3) of the Companies Act 1985.

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

  

+1 281 366 6766


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: 28 October, 2008

/s/ D. J. PEARL
..............................
D. J. PEARL
Deputy Company Secretary