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 24 October 2006
BP p.l.c.
(Translation of registrant's name into English)
1 ST JAMES'S SQUARE, LONDON, SW1Y 4PD, ENGLAND
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F |X| Form 40-F
--------------- ----------------
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes No |X|
--------------- ----------------
BP p.l.c.
Group Results
Third Quarter 2006
London 24 October 2006
FOR IMMEDIATE RELEASE
---------------------------------------------------------------------------
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 $ million 2006 2005 %
========================= =====================
6,463 7,266 6,231 Profit for the period* 19,120 18,656
Inventory holding
(2,053) (1,148) 744 (gains) losses (762) (3,774)
------------------------- ---------------------
4,410 6,118 6,975 Replacement cost profit 18,358 14,882 23
========================= =====================
11.86 16.59 18.76 - per ordinary share (pence) 50.01 38.08
21.04 30.28 35.08 - per ordinary share (cents) 91.02 70.07 30
1.26 1.82 2.10 - per ADS (dollars) 5.46 4.20
========================= =====================
o BP's third quarter replacement cost profit was $6,975 million, compared
with $4,410 million a year ago, an increase of 58%. For the nine
months, replacement cost profit was $18,358 million compared with
$14,882 million, up 23%.
o The third quarter result included a net non-operating gain of
$1,225 million compared with a net non-operating charge of $921 million
in the third quarter of 2005. This includes significant gains on
upstream asset disposals. For the nine months, the net non-operating
gain was $1,214 million compared with a net non-operating charge of
$1,201 million for the nine months of 2005.
o Compared with a year ago, the third quarter trading environment
reflected higher oil realizations and higher retail margins but lower
refining margins and lower gas realizations.
o Net cash provided by operating activities for the quarter and nine
months was $5.1 billion and $23.2 billion compared with $6.4 billion
and $22.5 billion a year ago.
o The ratio of net debt to net debt plus equity was 16%.
o The quarterly dividend, to be paid in December, is 9.825 cents per
share ($0.5895 per ADS) compared with 8.925 cents per share a year ago.
For the nine months, the dividend showed an increase of 10%. In
sterling terms, the quarterly dividend is 5.241 pence per share,
compared with 5.061 pence per share a year ago; for the nine months the
increase was 8%. During the nine months, the company repurchased
1,024 million of its own shares at a cost of $12 billion.
BP Group Chief Executive, Lord Browne, said:
"The trading environment reflected higher oil realizations and
retail margins but lower refining margins and gas realizations
compared to a year ago. The third quarter result benefited
from significant disposal gains and IFRS accounting effects.
Results are being impacted by higher tax charges. The share
buyback programme is continuing, with $3.5 billion of share
repurchases during the quarter".
* Profit attributable to BP shareholders.
Summary Quarterly Results
Exploration and Production's third quarter result benefited from higher liquid
realizations offset by lower gas realizations. In addition, it included higher
production taxes and higher costs, reflecting the impacts of sector specific
inflation, revenue investment and production growth. Furthermore, the result
includes significant net gains on the sale of assets. BP's share of the TNK-BP
result benefited from a gain of $892 million on the sale of its interest in the
Urdmurtneft assets.
Compared with a year ago, the Refining and Marketing result, excluding Texas
City, reflects strong operating performance. The lower result reflects lower
refining margins, reduced supply optimization benefits and the impact of higher
levels of refining turnaround activity. Retail margins improved strongly
compared with a year ago. The result includes a significant gain related to
IFRS fair value accounting effects.
In Gas, Power and Renewables, the lower third quarter result includes a charge
for non-operating items compared with a gain in the same period last year. A
significant reduction in the contribution from gas and power marketing and
trading was partly offset by better operational performance in the natural gas
liquids business and a lower charge related to IFRS fair value accounting.
Finance costs and Other finance expense was $117 million for the quarter
compared with $181 million in the third quarter of 2005. Increases in market
interest rates were more than offset by higher capitalized interest and a higher
return on pension assets due to the increased market value of the pension asset
base.
The consolidation adjustment, which removes the margin on sales between segments
in respect of inventory at the period end, was a credit of $440 million in the
third quarter. This primarily reflects changes in the amount of BP equity
production held in Refining and Marketing segment inventories.
The effective tax rate on replacement cost profit of continuing operations was
40% versus 34% a year earlier, reflecting the retroactive impact of the increase
in the North Sea tax rate, enacted in July 2006. The effect of this change on
the Group's effective tax rate is partly mitigated by a sharp decline in prices
around the end of the quarter.
Capital expenditure was $4.8 billion for the quarter, including $1 billion in
respect of our investment in Rosneft. Disposal proceeds were $2.8 billion.
Net debt at the end of the quarter was $16.8 billion. The ratio of net debt to
net debt plus equity was 16%.
During the third quarter, the company repurchased 299 million of its own shares,
at a cost of $3.5 billion. Of these, 48 million shares were purchased for
cancellation and the remainder are held in treasury. Additionally, shares to
the value of $1.25 billion were issued to Alfa Group and Access Renova (AAR)
being the last instalment of the deferred consideration for our investment in
TNK-BP.
The commentaries above and following are based on replacement cost profit.
The financial information for 2005 has been restated to reflect the following,
all with effect from 1 January 2006: (a) the transfer of three equity-accounted
entities from Other businesses and corporate to Refining and Marketing following
the sale of Innovene; (b) the transfer of certain mid-stream assets and
activities from Refining and Marketing and Exploration and Production to Gas,
Power and Renewables; (c) the transfer of Hydrogen for Transport activities from
Gas, Power and Renewables to Refining and Marketing; and (d) the change in the
basis of accounting for over-the-counter forward sale and purchase contracts for
oil, natural gas, NGLs and power. See Note 2 for further details.
Non-Operating Items
Third
Quarter
$ million 2006
--------
Exploration and Production 2,466
Refining and Marketing (431)
Gas, Power and Renewables (85)
Other businesses and corporate 78
--------
2,028
Taxation (803)
--------
Continuing Operations 1,225
Innovene Operations -
Taxation - -
-------- --------
Total for all operations 1,225
========
Reconciliation of Replacement Cost Profit to Profit for the Period
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 $ million 2006 2005
============================= ================
6,534 7,826 9,935 Exploration and Production 24,584 18,919
1,875 1,856 1,503 Refining and Marketing 4,971 4,559
347 453 152 Gas, Power and Renewables 906 948
Other businesses and
(501) (193) (261) corporate (671) (828)
Consolidation adjustments
Unrealized profit in
(285) (277) 440 inventory 155 (442)
Net profit on transactions
between continuing and
144 - - Innovene operations (a) - 399
----------------------------- ----------------
RC profit before interest
8,114 9,665 11,769 and tax 29,945 23,555
----------------------------- ----------------
Finance costs and other
(181) (107) (117) finance expense (367) (546)
(2,674) (3,441) (4,614) Taxation (10,984) (7,444)
(68) (77) (63) Minority interest (211) (198)
----------------------------- ----------------
RC profit from continuing
operations attributable
5,191 6,040 6,975 to BP shareholders (b) 18,383 15,367
============================= ================
Inventory holding gains
(losses) for continuing
1,938 1,148 (744) operations 762 3,547
----------------------------- ----------------
Profit for the period
from continuing operations
attributable to BP
7,129 7,188 6,231 shareholders 19,145 18,914
Profit (loss) for the
period from Innovene
(666) 78 - operations (c) (25) (258)
----------------------------- ----------------
Profit for the period
attributable to BP
6,463 7,266 6,231 shareholders 19,120 18,656
============================= ================
RC profit from continuing
operations attributable
5,191 6,040 6,975 to BP shareholders 18,383 15,367
RC profit (loss) from
(781) 78 - Innovene operations (25) (485)
----------------------------- ----------------
4,410 6,118 6,975 Replacement cost profit 18,358 14,882
============================= ================
(a) In the circumstances of discontinued operations, Accounting Standards
require that the profits earned by the discontinued operations, in this
case the Innovene operations, on sales to the continuing operations be
eliminated on consolidation from the discontinued operations, and
attributed to the continuing operations and vice versa. This
adjustment has two offsetting elements: the net margin on crude refined
by Innovene as substantially all crude for their refineries was
supplied by BP and most of the refined products manufactured were taken
by BP; and the margin on sales of feedstock from BP's US refineries to
Innovene's manufacturing plants. The profits attributable to
individual segments were not affected by this adjustment. Neither does
this representation indicate the profits earned by continuing or
Innovene operations, as if they were stand-alone entities, for past
periods or likely to be earned in future periods.
(b) Replacement cost profit reflects the current cost of supplies. The
replacement cost profit for the period is arrived at by excluding from
profit inventory holding gains and losses. BP uses this measure to
assist investors to assess BP's performance from period to period.
Replacement cost profit is not a recognized GAAP measure. Operating
cash flow is calculated from the starting point of profit before
taxation which includes inventory holding gains and losses. Operating
cash flow also reflects working capital movements including
inventories, trade and other receivables and trade and other payables.
The carrying value of these working capital items will change for
various reasons, including movements in oil, gas and products prices.
(c) See further detail in Note 3.
Per Share Amounts
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 2006 2005
================================ =====================
Results for the
period ($m)
6,463 7,266 6,231 Profit* 19,120 18,656
4,410 6,118 6,975 Replacement cost profit 18,358 14,882
-------------------------------- ---------------------
Shares in issue at
20,984,851 19,993,613 19,815,830 period end (thousand)19,815,830 20,984,851
- ADS equivalent
3,497,475 3,332,269 3,302,638 (thousand) 3,302,638 3,497,475
Average number of
shares outstanding
21,007,316 20,171,546 19,818,106 (thousand) 20,167,945 21,238,117
- ADS equivalent
3,501,219 3,361,924 3,303,018 (thousand) 3,361,324 3,539,686
Per ordinary share
(cents)
30.75 35.94 31.46 Profit for the period 94.80 87.84
RC profit
21.04 30.28 35.08 for the period 91.02 70.07
Per ADS (cents)
184.50 215.64 188.76 Profit for the period 568.80 527.04
RC profit
126.24 181.68 210.48 for the period 546.12 420.42
-------------------------------- ---------------------
* Profit attributable to BP shareholders.
Exploration and Production
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 $ million 2006 2005
======================= ===============
6,535 7,827 9,929 Profit before interest and tax(a) 24,572 18,928
(1) (1) 6 Inventory holding (gains) losses 12 (9)
----------------------- ---------------
Replacement cost profit
6,534 7,826 9,935 before interest and tax 24,584 18,919
======================= ===============
Results include:
Impairment and gain (loss) on sale
(106) 330 1,962 of businesses and fixed assets 2,301 831
- - (17) Environmental and other provisions (17) -
Restructuring, integration and
- - - rationalization costs - -
Fair value gain (loss) on
(53) 149 521 embedded derivatives 275 (887)
12 - - Other - 37
----------------------- ---------------
(147) 479 2,466 Total non-operating items 2,559 (19)
======================= ===============
177 97 351 Exploration expense 637 476
Of which:
93 13 232 Exploration expenditure written off 359 224
----------------------- ---------------
Production (Net of Royalties)(b)
2,313 2,355 2,250 Crude oil (mb/d) 2,323 2,385
159 176 172 Natural gas liquids (mb/d) 172 176
2,472 2,531 2,422 Total liquids (mb/d)(c) 2,495 2,561
7,841 8,624 8,086 Natural gas (mmcf/d) 8,471 8,412
3,824 4,018 3,816 Total hydrocarbons (mboe/d)(d) 3,954 4,011
======================= ===============
Average realizations(e)
56.83 65.96 67.22 Crude oil ($/bbl) 63.73 49.07
36.70 37.80 40.08 Natural gas liquids ($/bbl) 37.81 31.30
54.80 62.86 64.15 Total liquids ($/bbl) 60.91 47.22
4.75 4.44 4.49 Natural gas ($/mcf) 4.83 4.45
41.68 44.58 45.47 Total hydrocarbons ($/boe) 44.74 36.97
======================= ===============
Average oil marker prices($/bbl)
61.63 69.59 69.60 Brent 67.02 53.68
63.18 70.46 70.44 West Texas Intermediate 68.09 55.43
60.91 68.84 69.02 Alaska North Slope US West Coast 66.28 52.08
======================= ===============
Average natural gas marker prices
8.53 6.80 6.58 Henry Hub gas price ($/mmbtu)(f) 7.45 7.19
UK Gas - National
29.26 34.55 33.72 Balancing Point (p/therm) 46.28 32.42
======================= ===============
(a) Profit from continuing operations and includes profit after interest and
tax of equity-accounted entities.
(b) Includes BP's share of production of equity-accounted entities.
(c) Crude oil and natural gas liquids.
(d) Natural gas is converted to oil equivalent at 5.8 billion cubic feet =
1 million barrels.
(e) Based on sales of consolidated subsidiaries only - this excludes equity-
accounted entities.
(f) Henry Hub First of the Month Index.
Exploration and Production
The replacement cost profit before interest and tax for the third quarter was
$9,935 million, an increase of 52% over the third quarter of 2005. This result
benefited from higher liquid realizations offset by lower gas realizations. In
addition, it included higher production taxes and higher costs, reflecting the
impacts of sector specific inflation, revenue investment and production growth.
Furthermore, BP's share of the TNK-BP result benefited from a gain of $892
million on the sale of its interest in the Urdmurtneft assets. Net
non-operating gains for the third quarter were $2,466 million, mainly arising
from net gains on sale of assets of $1,985 million, primarily from the sale of a
pre-development asset in the Gulf of Mexico, and fair value gains of $521
million on embedded derivatives relating to North Sea gas contracts. The
corresponding quarter in 2005 contained a net non-operating charge of $147
million.
After adjusting for the effect of disposals, production increased by 3% compared
with the third quarter of 2005. Actual production was broadly flat compared
with the third quarter of 2005.
The replacement cost profit before interest and tax of $24,584 million for the
first nine months represented an increase of 30% over the same period of the
previous year. This result benefited from higher oil and gas realizations
partially offset by lower volumes, higher production taxes and higher costs
reflecting the impacts of sector specific inflation, increased integrity spend
and repairs, revenue investments and production growth. The nine months result
included net gains on sales of assets of $2,324 million and net fair value gains
of $275 million on embedded derivatives. The first nine months of 2005
contained a net non-operating charge of $19 million.
After adjusting for the effect of disposals, production for the first nine
months was up around 1% compared with the first nine months of 2005 as
underlying production growth from major projects in the new profit centres and
TNK-BP offset decline in existing profit centres. Actual production was down 57
mboe/d from 2005.
In September, we determined that the oil transit lines in the Eastern Operating
Area of Prudhoe Bay could be returned to service for the purposes of in-line
inspection. We have now returned to service all three flow stations previously
shut down, and current production from Prudhoe Bay is around 400,000 barrels of
oil and natural gas liquids per day (BP has a 26% interest in the Prudhoe Bay
field). We are still committed to replacing the main oil transit lines (16
miles) in both the Eastern and Western Operating Areas of Prudhoe Bay and expect
to complete this next year. The effect of reduced production at Prudhoe Bay on
average third quarter production was 27 mboe/d.
Offshore commissioning work on the Thunder Horse platform is proceeding.
Following a series of tests carried out over the past few months, which revealed
metallurgical failures in components of the subsea system, we plan to retrieve
and replace all the subsea components we believe could be at risk. This work
will be done over the course of the next year and we do not expect production
from Thunder Horse to begin before the middle of 2008. It is too early to
estimate the additional costs involved in replacing the affected systems.
In our other major projects we continue to make good progress. In Azerbaijan,
ACG and BTC continue to ramp up. The Shah Deniz gas field and East Azeri are on
track to start up in the fourth quarter. In Angola, the FPSO for the Dalia
field is now being moored.
During the quarter, we made a significant oil exploration discovery on the
Kaskida prospect in approximately 5,900 feet of water in the Gulf of Mexico and
in Angola, we announced the Titania discovery, our 11th discovery in Block 31.
In addition we have been awarded the Birbhum coal bed methane licence in India
and have reached agreement to acquire acreage in the UK Central North Sea which
contains two discovered fields and further exploration potential.
During the quarter, we completed the sale of our remaining Gulf of Mexico Shelf
assets which have been subject to pre-emption rights. In July, we completed the
sale of our 28% interest in the Shenzi discovery in the Gulf of Mexico to
Repsol. To date we have received $3.8 billion of proceeds from our divestment
activity in 2006. In August, TNK-BP completed the sale of its interest in the
Urdmurtneft assets to Sinopec and we announced the sale of five onshore
properties in South Louisiana.
Refining and Marketing
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 $ million 2006 2005
======================= =============
3,714 2,992 717 Profit before interest and tax(a) 5,747 7,999
(1,839) (1,136) 786 Inventory holding (gains) losses (776) (3,440)
----------------------- -------------
Replacement cost profit
1,875 1,856 1,503 before interest and tax 4,971 4,559
======================= =============
Results include:
Impairment and gain (loss) on sale
(14) 112 2 of businesses and fixed assets 678 34
(140) - (33) Environmental and other provisions (33) (140)
Restructuring, integration and
- - - rationalization costs - -
Fair value gain (loss) on
- - - embedded derivatives - -
- (576) (400) Other (976) (733)
----------------------- -------------
(154) (464) (431) Total non-operating items (331) (839)
======================= =============
Refinery throughputs (mb/d)
202 162 200 UK 158 192
687 671 622 Rest of Europe 644 668
1,328 1,200 1,213 USA 1,130 1,360
296 256 252 Rest of World 268 300
----------------------- -------------
2,513 2,289 2,287 Total throughput 2,200 2,520
======================= =============
92.6 86.4 82.2 Refining availability (%)(b) 83.2 93.6
======================= =============
Oil sales volumes (mb/d)
Refined products
369 354 370 UK 356 354
1,402 1,311 1,367 Rest of Europe 1,331 1,357
1,674 1,631 1,609 USA 1,613 1,660
599 579 578 Rest of World 575 608
----------------------- --------------
4,044 3,875 3,924 Total marketing sales 3,875 3,979
2,010 1,682 1,911 Trading/supply sales 1,932 2,112
----------------------- --------------
6,054 5,557 5,835 Total refined product sales 5,807 6,091
2,471 1,996 1,913 Crude oil 2,160 2,474
----------------------- --------------
8,525 7,553 7,748 Total oil sales 7,967 8,565
======================= ==============
Global Indicator Refining Margin
($/bbl)(c)
7.78 5.78 4.54 NWE 4.40 5.46
17.12 17.74 11.47 USGC 13.36 11.31
13.40 14.75 11.50 Midwest 10.38 8.28
17.57 21.27 12.30 USWC 14.93 15.02
6.52 6.83 3.58 Singapore 4.65 5.94
12.35 12.59 8.40 BP Average 9.09 8.93
======================= ==============
Chemicals production (kte)
284 298 230 UK 831 918
771 741 776 Rest of Europe 2,359 2,312
890 816 883 USA 2,488 3,215
1,674 1,728 1,682 Rest of World 5,097 4,225
----------------------- --------------
3,619 3,583 3,571 Total production 10,775 10,670
======================= ==============
(a) Profit from continuing operations and includes profit after interest and
tax of equity-accounted entities.
(b) Refining availability is defined as the ratio of units which are
available for processing, regardless of whether they are actually being
used, to total capacity. Where there is planned maintenance, such
capacity is not regarded as being available. During the first nine
months 2006, there was planned maintenance of a substantial part of the
Texas City refinery.
(c) The Global Indicator Refining Margin (GIM) is the average of regional
indicator margins weighted for BP's crude refining capacity in each
region. Each regional indicator margin is based on a single
representative crude with product yields characteristic of the typical
level of upgrading complexity. The regional indicator margins may not be
representative of the margins achieved by BP in any period because of
BP's particular refinery configurations and crude and product slate.
Refining and Marketing
The replacement cost profit before interest and tax for the third quarter was
$1,503 million. This is compared to $1,875 million for the same period last
year. The nine months' result was $4,971 million compared to $4,559 million for
the same period last year, up 9%.
The quarter's result included a charge of $431 million for non-operating items.
This includes a further provision of $400 million as a result of the ongoing
review of fatality and personal injury compensation claims associated with the
incident in March 2005 at the Texas City refinery. In addition, non-operating
items include impairment charges of $90 million, a charge of $33 million in
respect of new, and revisions to existing, environmental and other provisions
and net disposal gains of $92 million. The non-operating charge for the
corresponding quarter in 2005 was $154 million.
The third quarter's result included a significant gain related to IFRS fair
value accounting effects. The third quarter of 2005 included a smaller gain.
The results for both the third quarter and the first nine months of 2006,
excluding Texas City, reflect strong operating performance. The reduction in
the result in respect of Texas City, including the impact on associated
businesses, was some $320 million compared to the third quarter of 2005 and
around $1,400 million compared with the first nine months of 2005. These
figures exclude the provisions for fatality and personal injury compensation
claims which are treated as non-operating items. The third quarter result also
reflects the absence of hurricane activity which negatively impacted the third
quarter of 2005.
This quarter's result reflects lower refining margins and reduced supply
optimization benefits driven by lower crude and product prices, particularly
around the end of the quarter. The quarter's result also included the impact of
higher levels of refining turnaround activity. Retail margins improved strongly
compared with the third quarter of 2005 due to the steady decline in wholesale
product prices. The result for the first nine months reflects higher marketing
margins and supply optimization benefits compared with the first nine months of
2005.
Refinery throughputs for the quarter and nine months were 2,287 mb/d and 2,200
mb/d respectively, lower than in the corresponding periods of 2005. This is
primarily as a result of the phased start-up of production at our Texas City
refinery during 2006. The recommissioning of the Texas City refinery continues,
with throughput for the quarter averaging 247 mb/d. Refining availability for
the quarter, excluding Texas City, was 96.3%, higher than in the corresponding
period last year. Marketing sales were 3,924 mb/d for the third quarter and
3,875 mb/d for the first nine months of the year, compared with 4,044 mb/d and
3,979 mb/d for the corresponding periods in the previous year.
During the quarter, BP announced that it has entered the final planning stage of
a $3 billion investment in Canadian heavy crude oil processing capability at its
Whiting refinery located in northwest Indiana. The intention is to reconfigure
the Whiting refinery so most of its feedstock can be heavy Canadian crude oil.
Reconfiguring the refinery also has the potential to increase its production of
motor fuels by around 15 percent, which is approximately 1.7 million additional
gallons of gasoline and diesel per day. Construction is tentatively scheduled
to begin in 2007 and be completed by 2011, pending regulatory approval.
Gas, Power and Renewables
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 $ million 2006 2005
======================= =============
445 463 152 Profit before interest and tax(a) 853 1,046
(98) (10) - Inventory holding (gains) losses 53 (98)
----------------------- -------------
Replacement cost profit
347 453 152 before interest and tax 906 948
======================= =============
Results include:
Impairment and gain (loss) on sale
(2) (1) (65) of businesses and fixed assets (66) 81
6 - - Environmental and other provisions - 6
Restructuring, integration and
- - - rationalization costs - -
Fair value gain (loss)
91 107 (20) on embedded derivatives 32 200
- - - Other - -
----------------------- -------------
95 106 (85) Total non-operating items (34) 287
======================= =============
(a) Profit from continuing operations and includes profit after interest
and tax of equity-accounted entities.
The replacement cost profit before interest and tax for the third quarter and
nine months was $152 million and $906 million respectively, compared with $347
million and $948 million a year ago. Included in the result for the quarter was
a charge for non-operating items of $85 million arising from fair value losses
of $20 million on embedded derivatives related to long-term gas contracts, a
charge of $70 million for the impairment of a North American NGL asset and a $5
million gain on disposal. The corresponding quarter of 2005 included a net
non-operating gain of $95 million, largely comprising fair value gains of $91
million on embedded derivatives.
The third quarter result was 56% lower than the same quarter of 2005. The
decrease was primarily due to a non-operating charge in the current quarter
compared with a net non-operating gain in the same period last year. A
significant reduction in the contribution from gas and power marketing and
trading was partly offset by better operational performance in the natural gas
liquids business and a lower charge related to IFRS fair value accounting.
Similarly, the nine month result was marginally lower than the same period in
2005, largely reflecting a net charge for non-operating items compared with a
gain in the same period last year and higher IFRS fair value accounting charges,
partly offset by higher contributions from the operating businesses.
In August, we purchased Greenlight Energy, Inc., a US-based developer of wind
power generation projects. The purchase will further accelerate the rapid
growth of BP's wind power business in North America. In Korea, K-power Company
Limited (BP 35%) completed construction of a 1,074MW, LNG-fired combined cycle
power plant near Kwangyang City, which has began full commercial operation.
Other Businesses and Corporate
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 $ million 2006 2005
====================== =============
Profit (loss) before
(501) (192) (213) interest and tax(a) (620) (828)
- (1) (48) Inventory holding (gains) losses (51) -
---------------------- -------------
Replacement cost profit (loss)
(501) (193) (261) before interest and tax (671) (828)
====================== =============
Results include:
Impairment and gain (loss) on sale
4 21 (10) of businesses and fixed assets 12 38
(296) - 96 Environmental and other provisions 96 (274)
Restructuring, integration and
(6) - - rationalization costs - (77)
Fair value gain (loss) on
8 5 (8) embedded derivatives 5 (10)
- - - Other - 3
---------------------- --------------
(290) 26 78 Total non-operating items 113 (320)
====================== ==============
(a) Profit from continuing operations and includes profit after interest
and tax of equity-accounted entities.
Other businesses and corporate comprises Finance, the group's aluminium asset,
interest income and costs relating to corporate activities. The third quarter's
result includes a net gain of $78 million in respect of non-operating items.
This includes a net credit of $96 million in relation to new, and revisions to
existing, environmental and other provisions. Also included in the result, but
not treated as a non-operating item, is a charge resulting from new, and
revisions to existing, vacant space provisions.
Dividends Payable
June, September
December September December and December
2005 2006 2006 2006 2005
=========================== =================
Dividends per ordinary share
8.925 9.825 9.825 cents 29.025 26.35
5.061 5.324 5.241 pence 15.816 14.63
53.55 58.95 58.95 Dividends per ADS (cents) 174.15 158.10
--------------------------- -----------------
BP today announced a dividend of 9.825 cents per ordinary share to be paid in
December. Holders of ordinary shares will receive 5.241 pence per share and
holders of American Depository Receipts (ADRs) $0.5895 per ADS share. The
dividend is payable on 4 December to shareholders on the register on 10
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 4 December.
Outlook
BP Group Chief Executive, Lord Browne, concluded:
"World economic growth has been sustained. US economic growth appears to have
slowed compared to the second quarter, but growth in Europe and Asia has been
robust. The near-term global outlook is for slower but resilient growth.
"Crude oil prices averaged $69.60 per barrel (Dated Brent) in the third quarter
of 2006, similar to the second quarter average and nearly $8 per barrel above
the same period last year. After peaking above $78 per barrel in early August
prices have declined and in early October were below $60 per barrel. Ample
inventories, a perceived lessening of geopolitical tensions, and a lack of
hurricane-related disruptions have contributed to the decline. OPEC members
have announced an intent to reduce production.
"US natural gas prices averaged $6.58/mmbtu (Henry Hub first of month index) in
the third quarter, $0.22/mmbtu below the second quarter average and nearly $2/
mmbtu below the same period last year. Gas continued to trade at a discount to
residual fuel oil. Domestic production growth retained its momentum, and
consumption outside the power sector remained sluggish. Gas in storage at the
end of September was 12% above the five-year average. Prices should be
supported by seasonally rising winter demand.
"UK gas prices (NBP day-ahead) in the third quarter averaged 33.72 pence per
therm, slightly below the second quarter but 15% above the same period last
year. Since the peak in late July, prices have fallen significantly,
facilitated by fewer North Sea maintenance closures, LNG imports, and most
recently, the testing of the Langeled pipeline. Rough storage is full and
import capacity has increased, easing most concerns over winter supply
availability.
"The global average indicator refining margin fell to $8.40/bbl in the third
quarter of 2006, down more than $4/bbl versus the second quarter and by a
similar amount versus the third quarter last year. Margins were strong in July
and August but fell away sharply during September on the end of the US gasoline
season, limited hurricane activity and growing product inventory levels. So far
in October, margins have averaged around $5/bbl, and should be underpinned in
the near term by the autumn refinery turnaround programme and demand for
distillates once colder weather arrives.
"Retail margins increased significantly in August and September due to a steady
fall in the cost of product, leaving average retail margins for the third
quarter above the previous two quarters. More stable raw material costs during
October to date and an increase in competitive pressures suggest that marketing
margins in the fourth quarter are likely to be weaker.
"The UK Government's announced increase in the North Sea supplemental tax rate
has been enacted. This increase has two effects; first to create a one-time
deferred tax charge and second to increase current tax to reflect the 2006
impact of the higher rate, which is retroactive to the start of the year. The
full year aggregate effective tax rate is expected to be around 37%.
"Our strategy is unchanged. We continue to execute it with discipline and
focus. Production for the year is expected to be around 3.950 mmboe/d, lower
than in 2005 due principally to divestments and the impact of higher prices on
entitlements under Production Sharing Contracts. Capital expenditure excluding
acquisitions is expected to be around $16 billion for the year. Divestment
proceeds are expected to be around $6 billion."
----------------------------------------------------------------------------
Cautionary Statement: The foregoing discussion, in particular the statements
under "Outlook", contains forward looking statements particularly those
regarding retrieval and replacement of components of the sub-sea system at risk
of metallurgical failure at Thunder Horse; the completion of offshore
commissioning work at, receipt of approvals for and start-up of production from
Thunder Horse; return to service of replaced oil transit lines at Prudhoe Bay;
recommissioning of the Texas City refinery and the timing of the realization of
its full financial potential; the growth of BP's windpower business and planned
investments in biofuels research, development and marketing; world economic
growth; oil and gas prices; UK oil and gas inventories; refining margins;
marketing margins; the effect of the increase in the North Sea supplemental tax
rate; the aggregate effective tax rate; the sanctioning, timing and effect of
major projects; production; divestments and resulting adjustments to production;
capital expenditure; and divestment proceeds. By their nature, forward looking
statements involve risks and uncertainties and actual results may differ from
those expressed in such statements depending on a variety of factors including
the following: the timing of bringing new fields on stream; industry product
supply; OPEC policy decisions; demand and pricing; currency exchange rates;
operational problems; general economic conditions including inflationary
pressures; political stability; economic growth and outlook in relevant areas of
the world; changes in governmental regulations; exchange rate fluctuations;
development and use of new technology; the actions of competitors; natural
disasters and other changes in business conditions; prolonged adverse weather
conditions; wars and acts of terrorism or sabotage; and other factors discussed
in this Announcement. For more information you should refer to our Annual
Report and Accounts 2005 and our 2005 Annual Report on Form 20-F/A filed with
the US Securities and Exchange Commission.
----------------------------------------------------------------------------
BP p.l.c. and Subsidiaries
Summarized Group Income Statement
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 2006 2005
======================= ==============
$ million $ million
Sales and other operating
66,716 72,132 68,540 revenues (Note 4) 203,960 177,382
Earnings from jointly
controlled entities - after
1,020 818 1,878 interest and tax 3,269 2,248
Earnings from associates -
112 114 88 after interest and tax 317 327
113 106 220 Interest and other revenues 524 384
---------------------- ----------------
67,961 73,170 70,726 Total revenues 208,070 180,341
Gain on sale of businesses
30 541 2,276 and fixed assets 3,414 1,328
---------------------- ----------------
67,991 73,711 73,002 Total revenues and other income 211,484 181,669
46,751 50,427 48,431 Purchases 142,677 119,783
Production and manufacturing
4,590 5,876 6,275 expenses 17,368 14,974
Production and similar taxes
834 855 1,202 (Note 5) 2,989 2,180
Depreciation, depletion and
2,041 2,308 2,194 amortization 6,687 6,420
Impairment and losses on sale
148 80 387 of businesses and fixed assets 489 344
177 97 351 Exploration expense (Note 5) 637 476
Distribution and administration
3,444 3,516 3,630 expenses 10,242 9,693
Fair value (gain) loss on
(46) (261) (493) embedded derivatives (312) 697
---------------------- ----------------
Profit before interest and
taxation from continuing
10,052 10,813 11,025 operations 30,707 27,102
144 153 169 Finance costs (Note 6) 513 444
Other finance (income) expense
37 (46) (52) (Note 7) (146) 102
---------------------- ----------------
Profit before taxation from
9,871 10,706 10,908 continuing operations 30,340 26,556
2,674 3,441 4,614 Taxation 10,984 7,444
---------------------- ----------------
Profit from continuing
7,197 7,265 6,294 operations 19,356 19,112
Profit (loss) from Innovene
(666) 78 - operations (Note 3) (25) (258)
---------------------- ----------------
6,531 7,343 6,294 Profit for the period 19,331 18,854
====================== ================
Attributable to:
6,463 7,266 6,231 BP shareholders 19,120 18,656
68 77 63 Minority interest 211 198
---------------------- ----------------
6,531 7,343 6,294 19,331 18,854
====================== ================
Earnings per share - cents
Profit for the period attributable
to BP shareholders
30.75 35.94 31.46 Basic 94.80 87.84
30.54 35.59 31.40 Diluted 94.12 86.84
Profit from continuing operations
attributable to BP shareholders
33.87 35.57 31.46 Basic 94.93 89.05
33.62 35.21 31.40 Diluted 94.24 88.04
Summarized Group Balance Sheet
30 September 31 December
2006 2005
=====================
$ million
Non-current assets
Property, plant and equipment 87,584 85,947
Goodwill 10,624 10,371
Other intangible assets 5,104 4,772
Investments in jointly controlled entities 15,343 13,556
Investments in associates 5,717 6,217
Other investments 1,754 967
---------------------
Fixed assets 126,126 121,830
Loans 822 821
Other receivables 787 770
Derivative financial instruments 3,182 3,652
Prepayments and accrued income 1,352 1,269
Defined benefit pension plan surplus 4,069 3,282
---------------------
136,338 131,624
---------------------
Current assets
Loans 129 132
Inventories 19,362 19,760
Trade and other receivables 38,570 40,902
Derivative financial instruments 11,632 9,726
Prepayments and accrued income 3,020 1,598
Current tax receivable 172 212
Cash and cash equivalents 3,199 2,960
---------------------
76,084 75,290
---------------------
Assets classified as held for sale 1,104 -
---------------------
Total assets 213,526 206,914
=====================
Current liabilities
Trade and other payables 40,589 42,136
Derivative financial instruments 10,339 9,083
Accruals and deferred income 6,303 5,970
Finance debt 9,561 8,932
Current tax payable 4,403 4,274
Provisions 1,218 1,102
---------------------
72,413 71,497
---------------------
Non-current liabilities
Other payables 1,701 1,935
Derivative financial instruments 2,528 3,696
Accruals and deferred income 3,563 3,164
Finance debt 10,412 10,230
Deferred tax liabilities 17,343 16,443
Provisions 10,934 9,954
Defined benefit pension plan and other
post-retirement benefit plan deficits 9,562 9,230
---------------------
56,043 54,652
---------------------
Liabilities directly associated with the assets
classified as held for sale - -
---------------------
Total liabilities 128,456 126,149
---------------------
Net assets 85,070 80,765
=====================
Equity
BP shareholders' equity 84,278 79,976
Minority interest 792 789
---------------------
85,070 80,765
=====================
Group Statement of Recognized Income and Expense
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 2006 2005
======================= =============
$ million $ million
216 309 531 Currency translation differences 993 (2,182)
Available-for-sale investments
64 (44) 144 marked to market 297 86
Available-for-sale investments -
(17) (79) (1) recycled to the income statement (426) (60)
(15) 230 (15) Cash flow hedges marked to market 272 (164)
Cash flow hedges - recycled to
4 19 (26) the income statement 50 (7)
Cash flow hedges - recycled to
- - 5 the balance sheet 5 -
(17) (15) (166) Taxation (120) 36
---------------------- ----------------
Net income (expense) recognized
235 420 472 directly in equity 1,071 (2,291)
6,531 7,343 6,294 Profit for the period 19,331 18,854
---------------------- ----------------
Total recognized income and
6,766 7,763 6,766 expense relating to the period 20,402 16,563
====================== ================
Attributable to:
6,698 7,686 6,703 BP shareholders 20,191 16,365
68 77 63 Minority interest 211 198
---------------------- ----------------
6,766 7,763 6,766 20,402 16,563
====================== ================
Change in accounting policy -
adoption of IAS 32 and 39 on
1 January 2005 (wholly attributable
- - - to BP shareholders) - (243)
====================== ================
Movement in BP Shareholders' Equity
Movement in BP shareholders' equity $ million
At 31 December 2005 79,976
Profit for the period 19,120
Distribution to shareholders (5,759)
Currency translation differences (net of tax) 933
Repurchase of ordinary share capital (11,999)
Issue of ordinary share capital for employee share schemes 549
Issue of ordinary share capital for TNK-BP 1,250
Purchase of shares by ESOP trusts (202)
Share-based payments (net of tax) 246
Available-for-sale investments (net of tax) (93)
Cash flow hedges (net of tax) 257
------
At 30 September 2006 84,278
======
Summarized Group Cash Flow Statement
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 2006 2005
======================= =============
$ million $ million
Operating activities
Profit before taxation from
9,871 10,706 10,908 continuing operations 30,340 26,556
Adjustments to reconcile profits
before tax to net cash provided
by operating activities
93 13 232 Exploration expenditure written off 359 224
Depreciation, depletion and
2,041 2,308 2,194 amortization 6,687 6,420
Impairment and (gain) loss on sale
118 (461) (1,889) of businesses and fixed assets (2,925) (984)
Earnings from jointly controlled
(1,132) (932) (1,966) entities and associates (3,586) (2,575)
Dividends received from jointly
controlled entities and
893 268 2,407 associates 3,686 1,989
Working capital and other
(5,718) (2,753) (6,756) movements (11,359) (9,295)
---------------------- ----------------
Net cash provided by operating
activities of continuing
6,166 9,149 5,130 operations 23,202 22,335
Net cash provided by operating
activities of Innovene
205 - - operations - 147
---------------------- ----------------
Net cash provided by operating
6,371 9,149 5,130 activities 23,202 22,482
---------------------- ----------------
Investing activities
(3,069) (3,412) (3,945) Capital expenditure (10,652) (8,805)
Acquisitions, net of cash
- - (102) acquired (102) -
Investment in jointly controlled
(2) (26) - entities (26) (53)
(82) (151) (159) Investment in associates (467) (367)
Proceeds from disposal of
226 1,899 2,662 fixed assets 5,045 1,978
Proceeds from disposal of
- 90 135 businesses 391 -
11 58 33 Proceeds from loan repayments 163 91
---------------------- ----------------
Net cash used in
(2,916) (1,542) (1,376) investing activities (5,648) (7,156)
---------------------- ----------------
Financing activities
(3,661) (4,411) (3,430) Net repurchase of shares (11,702) (7,628)
497 514 706 Proceeds from long-term financing 1,616 1,790
(420) (720) (996) Repayments of long-term financing (1,781) (3,623)
Net increase (decrease) in
2,983 941 294 short-term debt 525 966
(1,871) (1,894) (1,943) Dividends paid - BP shareholders (5,759) (5,503)
(87) (88) (57) - Minority interest (211) (422)
---------------------- ----------------
Net cash used in financing
(2,559) (5,658) (5,426) activities (17,312) (14,420)
---------------------- ----------------
Currency translation differences
relating to cash and cash
(74) (36) 19 equivalents (3) (83)
---------------------- ----------------
Increase (decrease) in cash
822 1,913 (1,653) and cash equivalents 239 823
Cash and cash equivalents at
1,360 2,939 4,852 beginning of period 2,960 1,359
---------------------- ----------------
Cash and cash equivalents at
2,182 4,852 3,199 end of period 3,199 2,182
====================== ================
Summarized Group Cash Flow Statement
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 2006 2005
======================= =============
$ million $ million
Working capital and other movements
(86) (122) (141) Interest receivable (393) (251)
81 145 120 Interest received 411 193
144 153 169 Finance costs 513 444
(384) (351) (267) Interest paid (928) (835)
37 (46) (52) Other finance (income) expense (146) 102
66 122 134 Share-based payments 339 222
Net operating charge for pensions
and other post-retirement benefits,
(21) (47) (36) less contributions (133) (37)
Net charge for provisions,
440 216 (115) less payments (106) 884
(Increase) decrease in
(3,737) (2,351) 1,477 inventories 134 (6,320)
(Increase) decrease in other
(10,116) 2,008 (1,616) current and non-current assets 727 (16,041)
Increase (decrease) in other
current and non-current
10,425 135 (1,763) liabilities (1,735) 18,328
(2,567) (2,615) (4,666) Income taxes paid (10,042) (5,984)
---------------------- ----------------
(5,718) (2,753) (6,756) (11,359) (9,295)
====================== ================
Capital Expenditure and Acquisitions
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 2006 2005
======================= =============
$ million $ million
By business
Exploration and Production
221 244 220 UK 646 610
50 74 52 Rest of Europe 195 118
930 1,190 1,160 USA 3,371 2,869
1,292 1,476 2,505 Rest of World (a) 5,409 3,678
---------------------- ----------------
2,493 2,984 3,937 9,621 7,275
---------------------- ----------------
Refining and Marketing
65 83 67 UK 211 205
99 101 149 Rest of Europe 315 277
282 252 289 USA 799 691
115 109 117 Rest of World 333 279
---------------------- ----------------
561 545 622 1,658 1,452
---------------------- ----------------
Gas,Power and Renewables
3 6 17 UK 24 20
4 7 7 Rest of Europe 19 11
22 32 187 USA 239 54
10 19 9 Rest of World 42 26
---------------------- ----------------
39 64 220 324 111
---------------------- ----------------
Other businesses and corporate
92 39 13 UK 71 249
40 - - Rest of Europe - 118
29 80 32 USA 120 146
3 - - Rest of World - 8
---------------------- ----------------
164 119 45 191 521
---------------------- ----------------
3,257 3,712 4,824 11,794 9,359
====================== ================
By geographical area
381 372 317 UK 952 1,084
193 182 208 Rest of Europe 529 524
1,263 1,554 1,668 USA 4,529 3,760
1,420 1,604 2,631 Rest of World 5,784 3,991
---------------------- ----------------
3,257 3,712 4,824 11,794 9,359
====================== ================
Included above:
- - 106 Acquisitions and asset exchanges 116 151
103 - - Innovene operations - 357
====================== ================
(a) Third quarter 2006 includes $1 billion for the purchase of shares in
Rosneft.
Exchange rates
US dollar/sterling average rate
1.78 1.83 1.87 for the period 1.82 1.84
1.76 1.81 1.87 US dollar/sterling period-end rate 1.87 1.76
US dollar/euro average rate for
1.22 1.26 1.27 the period 1.24 1.26
1.20 1.25 1.27 US dollar/euro period-end rate 1.27 1.20
---------------------- ----------------
Analysis of Profit Before Interest and Tax
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 2006 2005
======================= =============
$ million $ million
By business
Exploration and Production
939 1,834 1,071 UK 4,070 2,424
301 393 499 Rest of Europe 1,195 1,923
2,071 2,255 3,820 USA 8,379 6,520
3,224 3,345 4,539 Rest of World 10,928 8,061
---------------------- ----------------
6,535 7,827 9,929 24,572 18,928
---------------------- ----------------
Refining and Marketing
315 166 46 UK 57 (10)
1,121 785 387 Rest of Europe 1,858 2,938
1,671 1,526 65 USA 2,419 3,775
607 515 219 Rest of World 1,413 1,296
---------------------- ----------------
3,714 2,992 717 5,747 7,999
---------------------- ----------------
Gas, Power and Renewables
(16) 188 (46) UK 70 227
5 (2) (15) Rest of Europe (10) 3
433 257 141 USA 566 660
23 20 72 Rest of World 227 156
---------------------- ----------------
445 463 152 853 1,046
---------------------- ----------------
Other businesses and corporate
(144) (80) (327) UK (548) (532)
11 (45) 11 Rest of Europe (35) 45
(361) (37) 81 USA (60) (383)
(7) (30) 22 Rest of World 23 42
---------------------- ----------------
(501) (192) (213) (620) (828)
---------------------- ----------------
10,193 11,090 10,585 30,552 27,145
(285) (277) 440 Unrealized profit in inventory 155 (442)
Net profit on transactions between
144 - - continuing and Innovene operations - 399
---------------------- ----------------
10,052 10,813 11,025 Total for continuing operations 30,707 27,102
---------------------- ----------------
Innovene operations
(289) (90) - UK (145) (67)
(88) (40) - Rest of Europe (61) 407
(220) (6) - USA 1 (124)
(28) 48 - Rest of World 21 (16)
---------------------- ----------------
(625) (88) - (184) 200
Net profit on transactions between
(144) - - continuing and Innovene operations - (399)
---------------------- ----------------
(769) (88) - Total for Innovene operations (184) (199)
---------------------- ----------------
9,283 10,725 11,025 Total for period 30,523 26,903
====================== ================
By geographical area
1,138 2,148 754 UK 3,674 2,206
1,523 1,059 930 Rest of Europe 2,984 5,175
3,543 3,717 4,491 USA 11,453 10,165
3,848 3,889 4,850 Rest of World 12,596 9,556
---------------------- ----------------
10,052 10,813 11,025 Total for continuing operations 30,707 27,102
====================== ================
Analysis of Replacement Cost Profit
Before Interest and Tax
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 2006 2005
======================= =============
$ million $ million
By business
Exploration and Production
939 1,834 1,071 UK 4,070 2,424
301 393 499 Rest of Europe 1,195 1,923
2,070 2,254 3,827 USA 8,392 6,511
3,224 3,345 4,538 Rest of World 10,927 8,061
---------------------- ----------------
6,534 7,826 9,935 24,584 18,919
---------------------- ----------------
Refining and Marketing
267 171 138 UK 161 (65)
656 584 765 Rest of Europe 1,913 1,737
533 749 388 USA 1,774 1,893
419 352 212 Rest of World 1,123 994
---------------------- ----------------
1,875 1,856 1,503 4,971 4,559
---------------------- ----------------
Gas, Power and Renewables
(16) 188 (46) UK 70 227
(3) (4) (17) Rest of Europe (20) 2
408 250 150 USA 578 630
(42) 19 65 Rest of World 278 89
---------------------- ----------------
347 453 152 906 948
---------------------- ----------------
Other businesses and corporate
(144) (80) (327) UK (548) (532)
11 (46) 9 Rest of Europe (40) 45
(361) (37) 35 USA (106) (383)
(7) (30) 22 Rest of World 23 42
---------------------- ----------------
(501) (193) (261) (671) (828)
---------------------- ----------------
8,255 9,942 11,329 29,790 23,598
(285) (277) 440 Unrealized profit in inventory 155 (442)
Net profit on transactions between
144 - - continuing and Innovene operations - 399
---------------------- ----------------
8,114 9,665 11,769 Total for continuing operations 29,945 23,555
---------------------- ----------------
Innovene operations
(276) (90) - UK (145) (137)
(169) (40) - Rest of Europe (61) 256
(258) (6) - USA 1 (126)
(37) 48 - Rest of World 21 (20)
---------------------- ----------------
(740) (88) - (184) (27)
Net profit on transactions between
(144) - - continuing and Innovene operations - (399)
---------------------- ----------------
(884) (88) - Total for Innovene operations (184) (426)
---------------------- ----------------
7,230 9,577 11,769 Total for period 29,761 23,129
====================== ================
By geographical area
1,089 2,153 846 UK 3,778 2,151
1,049 855 1,304 Rest of Europe 3,024 3,972
2,376 2,932 4,784 USA 10,787 8,245
3,600 3,725 4,835 Rest of World 12,356 9,187
---------------------- ----------------
8,114 9,665 11,769 Total for continuing operations 29,945 23,555
====================== ================
Analysis of Non-operating Items
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 2006 2005
======================= =============
$ million $ million
By business
Exploration and Production
(53) 386 540 UK 532 (1,021)
- 83 (27) Rest of Europe 56 1,030
(106) 9 2,016 USA 2,027 (110)
12 1 (63) Rest of World (56) 82
---------------------- ----------------
(147) 479 2,466 2,559 (19)
---------------------- ----------------
Refining and Marketing
(3) (1) (27) UK (8) (18)
(53) (29) (18) Rest of Europe 182 (64)
(96) (446) (264) USA (614) (725)
(2) 12 (122) Rest of World 109 (32)
---------------------- ----------------
(154) (464) (431) (331) (839)
---------------------- ----------------
Gas, Power and Renewables
90 107 (20) UK 32 261
- - - Rest of Europe - -
5 (1) 5 USA 4 26
- - (70) Rest of World (70) -
---------------------- ----------------
95 106 (85) (34) 287
---------------------- ----------------
Other businesses and corporate
(6) - (25) UK (25) (54)
- (1) (2) Rest of Europe (3) 11
(284) 10 105 USA 124 (277)
- 17 - Rest of World 17 -
---------------------- ----------------
(290) 26 78 113 (320)
---------------------- ----------------
Total before taxation for continuing
(496) 147 2,028 operations 2,307 (891)
167 (53) (803) Taxation credit (charge) (902) 296
---------------------- -----------------
Total after taxation for continuing
(329) 94 1,225 operations 1,405 (595)
---------------------- ----------------
Innovene operations
(301) (90) - UK (145) (325)
(224) (40) - Rest of Europe (61) (224)
(208) (6) - USA 1 (208)
(26) 48 - Rest of World 21 (26)
---------------------- ----------------
Total before taxation for Innovene
(759) (88) - operations (a) (184) (783)
167 - - Taxation credit (charge) (7) 177
---------------------- ----------------
Total after taxation for Innovene
(592) (88) - operations (191) (606)
---------------------- ----------------
(921) 6 1,225 Total after taxation for period 1,214 (1,201)
====================== ================
(a) Includes the loss on re-measurement to fair value of $88 million in
the second quarter of 2006, $96 million in the first quarter of 2006
and $724 million in the third quarter of 2005, and impairment charges
of $24 million and $35 million in the first and third quarters of 2005
respectively.
Depreciation of Fixed Asset Revaluation Adjustment
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 2006 2005
======================= =============
$ million $ million
Exploration and Production
6 7 13 UK 28 26
64 48 48 USA 151 210
5 4 4 Rest of World 13 13
---------------------- ----------------
75 59 65 192 249
---------------------- ----------------
Refining and Marketing
25 25 25 USA 75 76
---------------------- ----------------
25 25 25 75 76
---------------------- ----------------
Gas, Power and Renewables
6 5 6 USA 17 17
---------------------- ----------------
6 5 6 17 17
---------------------- ----------------
Total depreciation of revaluation
106 89 96 adjustment (a)(b) 284 342
====================== ================
(a) Relates to the revaluation adjustment consequent upon the ARCO
acquisition.
(b) Excludes impairment of the revaluation adjustment which is included in
non-operating items.
Net Debt Ratio - Net Debt: Net Debt + Equity
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 2006 2005
======================= =============
$ million $ million
22,159 19,286 19,973 Gross debt 19,973 22,159
2,182 4,852 3,199 Cash and cash equivalents 3,199 2,182
---------------------- ----------------
19,977 14,434 16,774 Net debt 16,774 19,977
====================== ================
82,726 82,356 85,070 Equity 85,070 82,726
19% 15% 16% Net debt ratio 16% 19%
====================== ================
Production and Realizations
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 2006 2005
======================= =============
Production (a)(d)
Crude oil (mb/d) (net of royalties)
224 264 199 UK 244 267
64 60 55 Rest of Europe 60 71
427 444 404 USA 431 511
1,598 1,587 1,592 Rest of World 1,588 1,536
---------------------- ----------------
2,313 2,355 2,250 Total crude oil production 2,323 2,385
====================== ================
Natural gas liquids (mb/d)
(net of royalties)
12 16 14 UK 14 16
4 3 3 Rest of Europe 3 4
113 121 119 USA 120 125
30 35 36 Rest of World 35 31
---------------------- ----------------
159 176 172 Total natural gas liquids production 172 176
====================== ================
Liquids (b) (mb/d) (net of royalties)
236 280 213 UK 258 283
68 64 58 Rest of Europe 63 75
540 565 523 USA 551 636
1,628 1,622 1,628 Rest of World 1,623 1,567
---------------------- ----------------
2,472 2,531 2,422 Total liquids production 2,495 2,561
====================== ================
Natural gas (mmcf/d) (net of royalties)
831 911 754 UK 952 1,068
99 83 100 Rest of Europe 92 109
2,456 2,493 2,332 USA 2,436 2,610
4,455 5,138 4,900 Rest of World 4,991 4,625
---------------------- ----------------
7,841 8,624 8,086 Total natural gas production 8,471 8,412
====================== ================
Average realizations(c)
Crude oil ($/bbl)
57.77 67.82 64.74 UK 64.34 50.15
56.64 65.37 68.83 USA 64.05 49.15
55.89 64.90 67.05 Rest of World 62.78 47.68
56.83 65.96 67.22 BP Average 63.73 49.07
====================== ================
Natural gas liquids ($/bbl)
47.49 46.33 46.48 UK 46.94 36.03
36.39 37.32 38.50 USA 36.39 30.15
32.97 35.18 41.15 Rest of World 37.84 32.63
36.70 37.80 40.08 BP Average 37.81 31.30
====================== ================
Liquids ($/bbl)(b)
57.26 66.61 63.57 UK 63.39 49.35
53.17 60.21 62.95 USA 58.92 46.05
54.63 63.00 65.50 Rest of World 61.25 46.79
54.80 62.86 64.15 BP Average 60.91 47.22
====================== ================
Natural gas ($/mcf)
4.45 5.67 5.55 UK 6.55 5.01
6.77 5.44 5.51 USA 5.96 5.95
3.43 3.54 3.62 Rest of World 3.70 3.24
4.75 4.44 4.49 BP Average 4.83 4.45
====================== ================
(a) Includes BP's share of production of equity-accounted entities.
(b) Crude oil and natural gas liquids.
(c) Based on sales of consolidated subsidiaries only - this excludes
equity-accounted entities.
(d) Because of rounding, some totals may not agree exactly with the sum of
their component parts.
Notes
1. Basis of preparation
BP prepares its Annual Report and Accounts on the basis of
International Financial Reporting Standards (IFRS) as adopted for use
by the European Union (EU). 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 2006, which do
not differ significantly from those used for the Annual Report and
Accounts 2005.
2. Resegmentation and other changes to comparatives
With effect from 1 January 2006 the following changes to the business
segment boundaries have been implemented:
(a) Following the sale of Innovene to INEOS in December 2005, the
transfer of three equity-accounted entities (Shanghai SECCO
Petrochemical Company Limited in China and Polyethylene Malaysia
Sdn Bhd (PEMSB) and Ethylene Malaysia Sdn Bhd (EMSB), both in
Malaysia), previously reported in Other businesses and corporate,
to Refining and Marketing.
(b) The formation of BP Alternative Energy in November 2005 has
resulted in the transfer of certain mid-stream assets and
activities to Gas, Power and Renewables:
o South Houston Green Power (SHGP) co-generation facility (in
Texas City refinery) from Refining and Marketing.
o Watson Cogeneration (in Carson City refinery) from Refining and
Marketing.
o Phu My Phase 3 CCGT plant in Vietnam from Exploration and
Production.
(c) The transfer of Hydrogen for Transport activities from Gas, Power
and Renewables to Refining and Marketing.
Comparative financial data is shown after these changes.
Restated Reported
-----------------------------------------
Third Nine Third Nine
Quarter Months Quarter Months
2005 2005 2005 2005
-----------------------------------------
$ million
Profit before interest
and tax
Exploration and
Production 6,535 18,928 6,536 18,933
Refining and Marketing 3,714 7,999 3,697 8,010
Gas, Power and Renewables 445 1,046 412 990
Other businesses and
corporate (501) (828) (452) (788)
-----------------------------------------
10,193 27,145 10,193 27,145
Unrealized profit in
inventory (285) (442) (285) (442)
Net profit on transactions
between continuing and
Innovene operations 144 399 144 399
-----------------------------------------
Profit before interest
and tax from continuing
operations 10,052 27,102 10,052 27,102
=========================================
In 2005 the basis of accounting for over-the-counter forward sale and
purchase contracts for oil, natural gas, NGLs and power was changed.
These transactions are now reported on a net basis in sales and other
operating revenues, whereas previously they had been reported gross in
sales and purchases. This change, while reducing sales and other
operating revenues and purchases, had no impact on reported profit,
profit per ordinary share, cash flow or the balance sheet.
During 2006, as part of a continuous process to review how individual
contracts are accounted for, certain other minor adjustments have been
identified that should have been reflected in the restatement from
gross to net presentation. Though these adjustments are not
significant to the group income statement, the amendment has been made
to bring the comparatives onto a consistent basis. The comparative
figures have been amended to reflect these items as set out below.
Notes
2. Resegmentation and other changes to comparatives (concluded)
Amended
-------------------------------
Third Nine Second
Quarter Months Quarter
2005 2005 2006
-------------------------------
$ million
Sales and other operating revenues
Exploration and Production 11,321 32,441 13,495
Refining and Marketing 61,280 160,453 63,373
Gas, Power and Renewables 6,623 18,901 6,091
Other businesses and corporate 161 507 252
-------------------------------
Sales by continuing operations 79,385 212,302 83,211
Less: sales between businesses 8,511 24,723 11,079
sales to continuing operations 4,158 10,197 -
-------------------------------
Third party sales of
continuing operations 66,716 177,382 72,132
===============================
Purchases 46,751 119,783 50,427
===============================
Reported
-------------------------------
Third Nine Second
Quarter Months Quarter
2005 2005 2006
-------------------------------
$ million
Sales and other operating revenues
Exploration and Production 11,321 32,441 13,495
Refining and Marketing 63,278 166,155 64,025
Gas, Power and Renewables 7,219 20,574 5,735
Other businesses and corporate 161 507 252
-------------------------------
Sales by continuing operations 81,979 219,677 83,507
Less: sales between businesses 8,511 24,723 11,079
sales to continuing operations 4,158 10,197 -
-------------------------------
Third party sales of
continuing operations 69,310 184,757 72,428
===============================
Purchases 49,345 127,158 50,723
===============================
Notes
3. Sale of Olefins and Derivatives business
The sale of Innovene, BP's olefins, derivatives and refining group, to
INEOS, was completed on 16 December 2005.
The Innovene operations represented a separate major line of business
for BP. As a result of the sale, these operations were treated as
discontinued operations for the year ended 31 December 2005. A single
amount was shown on the face of the income statement comprising the
post-tax result of discontinued operations and the post-tax loss
recognized on the remeasurement to fair value less costs to sell of the
discontinued operation. That is, the income and expenses of Innovene
were reported separately from the continuing operations of the BP
group. The table below provides further detail of the amount shown on
the income statement.
In the cash flow statement the cash provided by the operating
activities of Innovene in 2005 has been separated from that of the rest
of the group and reported as a single line item.
The period to 30 September 2006 includes a loss before tax of
$184 million related to post-closing adjustments and is unchanged since
30 June 2006.
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 2006 2005
======================= ==============
$ million $ million
Profit before tax from
99 - - Innovene operations - 924
Net profit on transactions
between continuing and
(144) - - Innovene operations - (399)
----------------------- --------------
Profit before interest and
(45) - - taxation - 525
- - - Other finance income (expense) - 2
(Loss) gain recognized on the
(724) (88) - remeasurement to fair value (184) (724)
----------------------- --------------
(769) (88) - (184) (197)
Taxation
(56) 166 - Related to profit before tax 166 (220)
Related to remeasurement to
159 - - fair value (7) 159
----------------------- --------------
Profit (loss) from Innovene
(666) 78 - operations (25) (258)
======================= ==============
Earnings (loss) per share from
Innovene operations - cents
(3.12) 0.37 - Basic (0.13) (1.21)
(3.08) 0.38 - Diluted (0.12) (1.20)
======================= ==============
The net cash flows of Innovene
operations are presented below
Net cash provided by operating
205 - - activities - 147
Net cash used in investing
(97) - - activities - (361)
----------------------- --------------
Net cash provided by (used in)
(108) - - financing activities - 214
======================= ==============
Notes
4. Sales and other operating revenues
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 2006 2005
======================= ==============
$ million $ million
By business
11,321 13,495 12,932 Exploration and Production 40,345 32,441
61,280 63,373 61,169 Refining and Marketing 179,079 160,453
6,623 6,091 5,840 Gas, Power and Renewables 18,484 18,901
161 252 212 Other businesses and corporate 670 507
----------------------- ---------------
Sales by continuing
79,385 83,211 80,153 operations 238,578 212,302
8,511 11,079 11,613 Less: sales between businesses 34,618 24,723
sales to Innovene
4,158 - - operations - 10,197
----------------------- ---------------
Third party sales of
66,716 72,132 68,540 continuing operations 203,960 177,382
5,824 - - Innovene sales - 17,118
Less: sales to continuing
2,667 - - operations - 6,806
----------------------- ---------------
Third party sales of
3,157 - - Innovene operations - 10,312
----------------------- ---------------
69,873 72,132 68,540 Total third party sales 203,960 187,694
======================= ===============
By geographical area
31,809 26,300 27,809 UK 81,842 74,957
16,904 19,406 20,412 Rest of Europe 58,192 49,644
29,184 27,054 27,447 USA 76,567 75,598
11,963 19,067 17,337 Rest of World 54,779 38,935
----------------------- ---------------
Sales by continuing
89,860 91,827 93,005 operations 271,380 239,134
18,986 19,695 24,465 Less: sales between areas 67,420 51,555
sales to Innovene
4,158 - - operations - 10,197
----------------------- ---------------
66,716 72,132 68,540 203,960 177,382
======================= ===============
5. Profit before interest and taxation is after charging:
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 2006 2005
======================= ==============
$ million $ million
Exploration expense
3 - 7 UK 14 21
1 - - Rest of Europe - 2
120 55 188 USA 309 308
53 42 156 Rest of World 314 145
----------------------- ---------------
177 97 351 637 476
======================= ===============
Production and similar taxes
95 72 96 UK 403 362
739 783 1,106 Overseas 2,586 1,818
----------------------- ---------------
834 855 1,202 2,989 2,180
======================= ===============
Notes
6. Finance costs
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 2006 2005
======================= ==============
$ million $ million
237 285 328 Interest payable 906 632
(93) (132) (159) Capitalized (393) (245)
----------------------- ---------------
144 153 169 513 387
Early redemption of finance
- - - leases - 57
----------------------- ---------------
144 153 169 513 444
======================= ===============
7. Other finance (income) expense
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 2006 2005
======================= ==============
$ million $ million
Interest on pension and other
post-retirement benefit plan
502 484 489 liabilities 1,444 1,525
Expected return on pension and
other post-retirement benefit
(528) (599) (610) plan assets (1,791) (1,617)
----------------------- ---------------
Interest net of expected return
(26) (115) (121) on plan assets (347) (92)
Unwinding of discount on
49 61 63 provisions 178 144
Unwinding of discount on deferred
consideration for acquisition
14 8 6 of investment in TNK-BP 23 48
----------------------- ---------------
37 (46) (52) (146) 100
- - - Innovene operations - 2
----------------------- ---------------
37 (46) (52) Continuing operations (146) 102
======================= ===============
8. Dividends paid
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 2006 2005
======================= ==============
$ million $ million
Dividends per ordinary share
8.925 9.375 9.825 Cents 28.575 25.925
5.119 5.251 5.324 Pence 15.863 14.091
53.55 56.25 58.95 Dividends per ADS (cents) 171.45 155.55
======================= ===============
Notes
9. Analysis of changes in net debt
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 2006 2005
======================= ==============
$ million $ million
Opening balance
19,302 18,679 19,286 Finance debt 19,162 23,091
1,360 2,939 4,852 Less: Cash and cash equivalents 2,960 1,359
----------------------- ---------------
17,942 15,740 14,434 Opening net debt 16,202 21,732
----------------------- ---------------
Closing balance
22,159 19,286 19,973 Finance debt 19,973 22,159
2,182 4,852 3,199 Less: Cash and cash equivalents 3,199 2,182
----------------------- ---------------
19,977 14,434 16,774 Closing net debt 16,774 19,977
----------------------- ---------------
(2,035) 1,306 (2,340) Decrease (increase) in net debt (572) 1,755
======================= ===============
Movement in cash and cash
equivalents (excluding
896 1,949 (1,672) exchange adjustments) 242 906
Net cash outflow (inflow)
from financing (excluding
(3,060) (734) (5) share capital) (360) 867
- - - Adoption of IAS 39 - (147)
8 60 (515) Fair value hedge adjustment (373) 123
33 26 (34) Other movements 24 135
----------------------- ---------------
Movement in net debt before
(2,123) 1,301 (2,226) exchange effects (467) 1,884
88 5 (114) Exchange adjustments (105) (129)
----------------------- ---------------
(2,035) 1,306 (2,340) Decrease (increase) in net debt (572) 1,755
======================= ===============
Notes
10. TNK-BP Operational and Financial Information
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 2006 2005
======================= ==============
Production (Net of royalties)
(BP share)
930 907 867 Crude oil (mb/d) 890 903
449 538 472 Natural gas (mmcf/d) 525 468
1,007 999 948 Total hydrocarbons (mboe/d)(a) 980 983
======================= ==============
$ million $ million
Income statement (BP share)
Profit before interest
1,253 1,084 2,321 and tax (b) 4,257 2,788
(37) (45) (52) Interest expense * (140) (98)
(347) (348) (651) Taxation (1,349) (741)
(46) (46) (100) Minority interest (187) (74)
----------------------- ---------------
823 645 1,518 Net Income 2,581 1,875
======================= ==============
* Excludes unwinding of
discount on deferred
14 8 6 consideration 23 48
======================= ==============
Cash Flow
750 - 2,000 Dividends received 2,771 1,425
======================= ==============
Third Second Third
Quarter Quarter Quarter Nine Months
2005 2006 2006 2006 2005
======================= ==============
Average oil marker prices ($/bbl)
57.13 64.73 65.90 Urals (NWE - cif) 62.94 49.30
57.39 64.84 65.81 Urals (Med - cif) 62.97 49.75
36.60 36.18 39.83 Domestic Oil 37.11 27.77
======================= ==============
Balance sheet 30 September 31 December
2006 2005
=======================
Investments in jointly controlled entities 8,670 8,089
=======================
Deferred consideration
Due within one year - 1,227
Due after more than one year - -
-----------------------
- 1,227
=======================
(a) Natural gas is converted to oil equivalent at 5.8 billion cubic feet
= 1 million barrels.
(b) Third quarter 2006 includes a net gain of $892 million on the
disposal of the Udmurtneft assets.
As reported in previous quarters, various TNK-BP companies have received tax
notifications. Upon entering into the joint venture arrangement, each party
received indemnities from its co-venturers in respect of historical tax
liabilities related to assets contributed to the joint venture. BP believes its
provisions are adequate for its share of any liabilities arising from tax claims
not covered by these indemnities.
Notes
11. Equity-accounted entities
The group's profit for the period includes the following in respect of
equity-accounted entities.
RC profit Profit
(loss) Inventory (loss)
before holding before
interest gains interest
and tax (losses) and tax
---------------------------------------
$ million
Third Quarter 2006
Exploration and Production 2,727 1 2,728
Refining and Marketing 138 8 146
Gas, Power and Renewables 56 - 56
Other businesses and corporate - - -
---------------------------------------
Continuing operations 2,921 9 2,930
Innovene operations - - -
---------------------------------------
2,921 9 2,930
=======================================
Second Quarter 2006
Exploration and Production 1,369 - 1,369
Refining and Marketing 106 3 109
Gas, Power and Renewables 55 - 55
Other businesses and corporate 1 - 1
---------------------------------------
Continuing operations 1,531 3 1,534
Innovene operations - - -
---------------------------------------
1,531 3 1,534
=======================================
Third Quarter 2005
Exploration and Production 1,522 - 1,522
Refining and Marketing 162 4 166
Gas, Power and Renewables 25 - 25
Other businesses and corporate - - -
---------------------------------------
Continuing operations 1,709 4 1,713
Innovene operations - - -
---------------------------------------
1,709 4 1,713
=======================================
Nine Months 2006
Exploration and Production 5,245 1 5,246
Refining and Marketing 339 17 356
Gas, Power and Renewables 140 - 140
Other businesses and corporate (1) - (1)
---------------------------------------
Continuing operations 5,723 18 5,741
Innovene operations - - -
---------------------------------------
5,723 18 5,741
=======================================
Nine Months 2005
Exploration and Production 3,522 - 3,522
Refining and Marketing 304 (15) 289
Gas, Power and Renewables 50 - 50
Other businesses and corporate - - -
---------------------------------------
Continuing operations 3,876 (15) 3,861
Innovene operations 3 - 3
---------------------------------------
3,879 (15) 3,864
=======================================
Notes
11. Equity-accounted entities (continued)
Profit
(loss)
Minority for the
Interest Tax interest period
----------------------------------------
$ million
Third Quarter 2006
Exploration and Production (87) (723) (100) 1,818
Refining and Marketing (20) (25) - 101
Gas, Power and Renewables (5) (4) - 47
Other businesses and corporate - - - -
---------------------------------------
Continuing operations (112) (752) (100) 1,966
Innovene operations - - - -
---------------------------------------
(112) (752) (100) 1,966
=======================================
Second Quarter 2006
Exploration and Production (78) (436) (46) 809
Refining and Marketing (19) (13) - 77
Gas, Power and Renewables (6) (4) - 45
Other businesses and corporate - - - 1
---------------------------------------
Continuing operations (103) (453) (46) 932
Innovene operations - - - -
---------------------------------------
(103) (453) (46) 932
=======================================
Third Quarter 2005
Exploration and Production (63) (421) (46) 992
Refining and Marketing (23) (23) - 120
Gas, Power and Renewables (1) (4) - 20
Other businesses and corporate - - - -
---------------------------------------
Continuing operations (87) (448) (46) 1,132
Innovene operations - - - -
---------------------------------------
(87) (448) (46) 1,132
=======================================
Nine Months 2006
Exploration and Production (237) (1,598) (187) 3,224
Refining and Marketing (58) (48) - 250
Gas, Power and Renewables (15) (12) - 113
Other businesses and corporate - - - (1)
---------------------------------------
Continuing operations (310) (1,658) (187) 3,586
Innovene operations - - - -
---------------------------------------
(310) (1,658) (187) 3,586
=======================================
Nine Months 2005
Exploration and Production (171) (937) (74) 2,340
Refining and Marketing (37) (54) - 198
Gas, Power and Renewables (6) (7) - 37
Other businesses and corporate - - - -
---------------------------------------
Continuing operations (214) (998) (74) 2,575
Innovene operations - - - 3
---------------------------------------
(214) (998) (74) 2,578
=======================================
Notes
12. Fourth quarter results
BP's fourth quarter results will be announced on 6 February 2007.
13. Statutory accounts
The financial information shown in this publication is unaudited and
does not constitute statutory accounts. The 2005 Annual Report and
Accounts have been delivered to the UK Registrar of Companies; the
report of the auditors on those accounts (in accordance with section
235 of the Companies Act 2005) was unqualified.
Contacts
London United States
Press Office Roddy Kennedy Ronnie Chappell
+44 (0)20 7496 4624 +1 281 366 5174
Investor Relations Fergus MacLeod Rachael MacLean
+44 (0)20 7496 4717 +1 212 451 8072
http://www.bp.com/investors
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BP p.l.c.
(Registrant)
Dated: 24 October 2006 /s/ D. J. PEARL
..............................
D. J. PEARL
Deputy Company Secretary