LONDON, Feb. 5 /PRNewswire-FirstCall/ -- (Logo:
http://www.newscom.com/cgi-bin/prnh/20000724/NYM120LOGO Fourth
Third Fourth Quarter Quarter Quarter Year 2006 2007 2007 $ million
2007 2006 % 2,880 4,406 4,399 Profit for the period* 20,845 22,000
Inventory holding 1,015 (539) (1,427) (gains) losses (3,558) 253
Replacement cost 3,895 3,867 2,972 profit 17,287 22,253 (22) - per
ordinary share 10.37 9.94 7.66 (pence) 45.10 60.38 - per ordinary
share 20.08 20.34 15.69 (cents) 90.20 111.10 (19) 1.21 1.22 0.94 -
per ADS (dollars) 5.41 6.67 -- BP's fourth-quarter replacement cost
profit was $2,972 million, compared with $3,895 million a year ago,
a decrease of 24%. For the full year, replacement cost profit was
$17,287 million compared with $22,253 million, down 22%. -- The
fourth-quarter result included a net non-operating charge of $1,030
million, including pre-tax charges of $603 million for the
impairment of US Convenience Retail and $338 million for
restructuring, integration and rationalization costs associated
with BP's Forward Agenda. This compares with a net non-operating
charge of $152 million in the fourth quarter of 2006. For the full
year, the net non-operating charge was $272 million compared with a
net non-operating gain of $1,062 million in 2006. -- Net cash
provided by operating activities for the quarter and year was $4.3
billion and $24.7 billion respectively compared with $5.0 billion
and $28.2 billion a year ago. -- The effective tax rate on
replacement cost profit from continuing operations for the fourth
quarter was 45% compared with 25% a year ago. For the year, the
rate was 37% compared with 35% a year ago. The increased rate in
the fourth quarter reflects the effect of inventory holding gains
and losses, which are eliminated in the replacement cost profit,
while the tax charge remains unadjusted and includes the tax effect
on inventory holding gains and losses. If this effect is excluded,
the rate would have been 38% in the fourth quarter compared to 31%
a year ago. -- Net debt at the end of the quarter was $27.5
billion. The ratio of net debt to net debt plus equity was 23%
compared with 20% a year ago. -- Capital expenditure, excluding
acquisitions and asset exchanges, was $6.6 billion for the quarter
and for the year was $19.2 billion. Total capital expenditure and
acquisitions was $6.6 billion for the quarter and $20.6 billion for
the year. The year included $1.1 billion in respect of the
acquisition of Chevron's Netherlands manufacturing company.
Disposal proceeds were $0.4 billion for the quarter and were $4.3
billion for the year. -- The quarterly dividend, to be paid in
March, is 13.525 cents per share ($0.8115 per ADS) compared with
10.325 cents per share a year ago. For the year, the dividend
showed an increase of 16%. The dividend increase marks a shift in
the balance between dividends and share buybacks as a means of
returning value to shareholders. In sterling terms, the quarterly
dividend is 6.813 pence per share, compared with 5.258 pence per
share a year ago; for the year the increase was 7%. During the
quarter, the company repurchased 121 million of its own shares for
cancellation at a cost of $1.5 billion. For the year, share
repurchases were 663 million at a cost of $7.5 billion. --
Information on fair value accounting effects in relation to
Refining and Marketing and Gas, Power and Renewables is set out on
page 10. * Profit attributable to BP shareholders. The commentaries
above and following are based on replacement cost profit and should
be read in conjunction with the cautionary statement on page 11.
Analysis of Replacement Cost Profit and Reconciliation to Profit
for the Period Fourth Third Fourth Quarter Quarter Quarter Year
2006 2007 2007 $ million 2007 2006 5,063 6,343 7,648 Exploration
and Production 26,927 29,647 312 376 (1,337) Refining and Marketing
2,617 5,283 470 (57) 219 Gas, Power and Renewables 558 1,376 (276)
(451) (373) Other businesses and corporate (1,104) (947) (103) 59
(277) Consolidation adjustments (204) 52 RC profit before interest
and 5,466 6,270 5,880 tax 28,794 35,411 Finance costs and other
(149) (173) (242) finance income (741) (516) (1,347) (2,158)
(2,561) Taxation (10,442) (12,331) (75) (72) (105) Minority
interest (324) (286) RC profit from continuing operations
attributable to BP 3,895 3,867 2,972 shareholders(a) 17,287 22,278
Inventory holding gains (losses) from continuing (1,015) 539 1,427
operations 3,558 (253) Profit for the period from continuing
operations attributable to BP 2,880 4,406 4,399 shareholders 20,845
22,025 Profit (loss) for the period - - - from Innovene
operations(b) - (25) Profit for the period attributable to BP 2,880
4,406 4,399 shareholders 20,845 22,000 RC profit from continuing
operations attributable to BP 3,895 3,867 2,972 shareholders 17,287
22,278 - - - RC profit (loss) from Innovene operations - (25) 3,895
3,867 2,972 Replacement cost profit 17,287 22,253 (a) 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. (b) See
further detail in Note 2. Results include Non-operating Items
Fourth Third Fourth Quarter Quarter Quarter Year 2006 2007 2007 $
million 2007 2006 (177) 22 (616) Exploration and Production 553
2,382 (53) (344) (1,146) Refining and Marketing (952) (384) 215 (8)
(62) Gas, Power and Renewables (97) 181 (188) (205) (63) Other
businesses and corporate (227) (75) (203) (535) (1,887) (723) 2,104
51 189 857 Taxation(a) 451 (851) (152) (346) (1,030) Continuing
operations (272) 1,253 - - - Innovene operations - (184) - - -
Taxation - (7) (152) (346) (1,030) Total for all operations (272)
1,062 An analysis of non-operating items by type is provided on
page 21. (a) Tax on non-operating items is calculated using the
quarter's effective tax rate on replacement cost profit from
continuing operations. Per Share Amounts Fourth Third Fourth
Quarter Quarter Quarter Year 2006 2007 2007 2007 2006 Results for
the period ($m) 2,880 4,406 4,399 Profit(a) 20,845 22,000
Replacement cost 3,895 3,867 2,972 profit 17,287 22,253 Shares in
issue at period end 19,510,496 19,019,579 18,922,786 (thousand)(b)
18,922,786 19,510,496 - ADS equivalent 3,251,749 3,169,930
3,153,798 (thousand)(b) 3,153,798 3,251,749 Average number of
shares outstanding 19,610,871 19,061,853 18,979,138 (thousand)(b)
19,163,389 20,027,527 - ADS equivalent 3,268,479 3,176,976
3,163,190 (thousand)(b) 3,193,898 3,337,921 Shares repurchased in
the period 310,385 128,253 121,175 (thousand) 663,150 1,334,363 Per
ordinary share (cents) Profit for the 15.04 23.18 23.15 period
108.76 109.84 RC profit for the 20.08 20.34 15.69 period 90.20
111.10 Per ADS (cents) Profit for the 90.24 139.08 138.90 period
652.56 659.04 RC profit for the 120.48 122.04 94.14 period 541.20
666.60 (a) Profit attributable to BP shareholders. (b) Excludes
treasury shares. Dividends Dividends Payable BP today announced a
dividend of 13.525 cents per ordinary share to be paid in March.
Holders of ordinary shares will receive 6.813 pence per share and
holders of American Depository Receipts (ADRs) $0.8115 per ADS. The
dividend is payable on 10 March to shareholders on the register on
22 February. 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 10 March. Dividends Paid
Fourth Third Fourth Quarter Quarter Quarter Year 2006 2007 2007
2007 2006 Dividends paid per ordinary share 9.825 10.825 10.825
Cents 42.300 38.400 5.241 5.278 5.308 Pence 20.995 21.104 58.95
64.95 64.95 Dividends paid per ADS (cents) 253.80 230.40 Net Debt
Ratio - Net Debt: Net Debt + Equity Fourth Third Fourth Quarter
Quarter Quarter Year 2006 2007 2007 $ million 2007 2006 24,010
25,245 31,045 Gross debt 31,045 24,010 2,590 2,410 3,562 Cash and
cash equivalents 3,562 2,590 21,420 22,835 27,483 Net debt 27,483
21,420 85,465 91,494 94,652 Equity 94,652 85,465 20% 20% 23% Net
debt ratio 23% 20% Exploration and Production Fourth Third Fourth
Quarter Quarter Quarter Year 2006 2007 2007 $ million 2007 2006
Profit before interest and 5,057 6,347 7,643 tax(a) 26,938 29,629
Inventory holding (gains) 6 (4) 5 losses (11) 18 Replacement cost
profit before 5,063 6,343 7,648 interest and tax 26,927 29,647 By
region: 1,534 703 816 UK 3,694 5,839 249 221 262 Rest of Europe
1,386 1,209 952 1,843 2,213 US 7,746 9,344 2,328 3,576 4,357 Rest
of World 14,101 13,255 5,063 6,343 7,648 26,927 29,647 Results
include: Non-operating items 289 33 (538) UK (173) 821 (13) 7 (3)
Rest of Europe 535 43 (269) (15) 222 US 376 1,758 (184) (3) (297)
Rest of World (185) (240) (177) 22 (616) 553 2,382 Exploration
expense 6 2 17 UK 46 20 - - - Rest of Europe - - 324 60 61 US 252
633 78 182 123 Rest of World 458 392 408 244 201 756 1,045
Production (net of royalties)(b) Liquids (mb/d) (net of
royalties)(c) 239 151 199 UK 201 253 57 52 50 Rest of Europe 51 61
533 475 523 US 514 547 1,587 1,614 1,697 Rest of World 1,648 1,614
2,416 2,292 2,469 2,414 2,475 Natural gas (mmcf/d) (net of
royalties) 888 582 853 UK 768 936 90 26 26 Rest of Europe 29 92
2,196 2,186 2,183 US 2,174 2,376 5,082 5,085 5,275 Rest of World
5,172 5,013 8,256 7,879 8,337 8,143 8,417 Total hydrocarbons
(mboe/d)(d) 392 251 346 UK 333 414 73 57 55 Rest of Europe 56 77
912 851 900 US 888 957 2,463 2,492 2,606 Rest of World 2,541 2,478
3,840 3,651 3,907 3,818 3,926 Average realizations(e) 54.13 71.12
82.72 Total liquids ($/bbl) 67.45 59.23 4.38 3.93 4.83 Natural gas
($/mcf) 4.53 4.72 40.13 46.36 56.03 Total hydrocarbons ($/boe)
47.18 43.60 (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) Because of rounding, some totals may
not agree exactly with the sum of their component parts.
Exploration and Production The replacement cost profit before
interest and tax for the fourth quarter was $7,648 million, an
increase of 51% over the fourth quarter of 2006. This result
benefited from higher reported volumes, higher overall realizations
and the favourable effect of lagged tax reference prices in TNK-BP,
partially offset by higher costs reflecting the impacts of
sector-specific inflation, project start-up costs and higher
depreciation charges. Additionally, the fourth-quarter result was
impacted by the retroactive effect of increased production taxes in
Alaska, which were effective mid-year. The net non- operating
charge for the quarter was $616 million and included fair value
losses of $430 million on embedded derivatives related to North Sea
gas contracts as well as restructuring costs. The fourth quarter of
2006 included a net charge of $177 million. The replacement cost
profit before interest and tax of $26,927 million for the full year
represented a decrease of 9% on the previous year. This result
benefited from higher liquids realizations and the favourable
effect of lagged tax reference prices in TNK-BP, but was impacted
by lower gas realizations, lower reported volumes, higher
production taxes and higher costs reflecting the impacts of
sector-specific inflation, increased integrity spend and higher
depreciation charges. Additionally, the full-year result was lower
due to the absence of disposal gains in equity-accounted entities
in 2006, primarily the $892 million gain on TNK-BP's disposal of
the Udmurtneft assets. The full-year result included a net
non-operating gain of $553 million compared with a $2,382 million
gain in 2006. Reported production for the fourth quarter was
3,907mboe/d, 2% higher than in the fourth quarter of 2006. After
adjusting for the effect of acquisitions and disposals and the
impact of lower entitlement in our production-sharing agreements
(PSAs), production was 3% higher than in the fourth quarter of
2006. Reported production of 3,818mboe/d for the full year was 3%
lower than in 2006 on a reported basis and was flat after adjusting
for the effects of acquisitions, disposals and lower PSA
entitlements. During the fourth quarter, we started production at
five BP-operated major projects: Mango and Cashima in Trinidad,
Atlantis and King Subsea Pump in the Gulf of Mexico and Greater
Plutonio in Angola. Additionally, we had first production from the
Denise field in Egypt, where BP holds a 50% interest and, shortly
after the end of the quarter, we also had first production from the
Mondo field within the Kizomba C development in Angola, where BP
holds a 26.67% interest. Furthermore, we had further exploration
success in Azerbaijan with the Shah Deniz SDX-04 discovery, in
Angola with the Portia discovery and in Egypt with the Satis and
Taurus Deep discoveries. In December, we announced an agreement
with Husky Energy Inc. to create an integrated North American oil
sands business, by means of two separate joint ventures. In one, BP
will take a 50% interest in Husky Energy's Sunrise field in
Alberta, Canada, while in the other, Husky will take a 50% interest
in BP's Toledo refinery. Also in December, the Libyan General
People's Committee ratified the exploration and production
agreement between BP and Libya's National Oil Company, which we
announced in May of 2007. During 2007, we extended our track record
in achieving reported reserves replacement of more than 100%,
excluding acquisitions and disposals, in spite of significant PSA
effects associated with high oil prices. Refining and Marketing
Fourth Third Fourth Quarter Quarter Quarter Year 2006 2007 2007 $
million 2007 2006 (706) 936 26 Profit before interest and tax(a)
6,072 5,041 1,018 (560) (1,363) Inventory holding (gains) losses
(3,455) 242 Replacement cost profit before 312 376 (1,337) interest
and tax 2,617 5,283 By region: 190 22 122 UK 1,097 351 336 492 278
Rest of Europe 1,652 2,249 (421) (527) (1,811) US (1,252) 1,353 207
389 74 Rest of World 1,120 1,330 312 376 (1,337) 2,617 5,283
Results include: Non-operating items 23 (4) (10) UK 667 15 (89)
(16) (56) Rest of Europe (128) 93 25 (316) (977) US (1,181) (589)
(12) (8) (103) Rest of World (310) 97 (53) (344) (1,146) (952)
(384) Refinery throughputs (mb/d) 188 - - UK 67 165 660 735 689
Rest of Europe 691 648 1,052 1,109 996 US 1,064 1,110 294 304 313
Rest of World 305 275 2,194 2,148 1,998 Total throughput 2,127
2,198 81.6 83.4 84.0 Refining availability (%)(b) 82.9 82.5 Oil
sales volumes (mb/d) Refined products 354 350 328 UK 339 356 1,368
1,329 1,330 Rest of Europe 1,294 1,340 1,541 1,535 1,455 US 1,533
1,595 601 641 680 Rest of World 640 581 3,864 3,855 3,793 Total
marketing sales 3,806 3,872 1,920 1,687 1,696 Trading/supply sales
1,818 1,929 5,784 5,542 5,489 Total refined product sales 5,624
5,801 1,959 1,709 1,659 Crude oil 1,885 2,110 7,743 7,251 7,148
Total oil sales 7,509 7,911 Global Indicator Refining Margin
($/bbl)(c) 2.49 3.82 4.84 NWE 4.99 3.92 7.92 12.58 6.82 USGC 13.48
12.00 5.42 14.31 3.39 Midwest 12.81 9.14 14.59 6.90 8.49 USWC 15.05
14.84 2.95 4.52 5.80 Singapore 5.29 4.22 6.30 8.05 5.68 BP Average
9.94 8.39 Chemicals production (kte) 159 237 228 UK 967 990 797 587
660 Rest of Europe 2,650 3,156 976 1,117 1,088 US 4,328 3,464 1,357
1,569 1,497 Rest of World 6,083 6,454 3,289 3,510 3,473 Total
production 14,028 14,064 (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 2006 and 2007, 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 result before interest and tax was a loss of $1,337 million
for the fourth quarter of 2007 and was a profit of $2,617 million
for the full year. This compares with a replacement cost profit
before interest and tax for the fourth quarter and full year of
2006 of $312 million and $5,283 million respectively. The
fourth-quarter result included a net non- operating charge of
$1,146 million, primarily reflecting impairment charges associated
with our exit from the operated Convenience Retail channel in the
US, restructuring costs, and a reassessment of certain provisions.
The full- year result included a charge of $952 million for
non-operating items compared with a charge of $384 million in 2006.
Compared with a year ago, the fourth-quarter result reflected a
lower refining margin environment, higher refining outages and
costs, including those associated with the repair and
recommissioning activities at our Texas City and Whiting US
refineries, and a lower contribution from supply optimization. The
quarter's result also reflected the impact of a major scheduled
turnaround at the Toledo refinery. In addition, the charge for non-
operating items was significantly higher than a year ago. These
factors were partially offset by the effects of continued strong
performance from a number of our marketing businesses. The refining
outages outlined above, and the majority of the non-operating
charges, related to our operations in the US, leading to the
fourth-quarter loss of $1,811 million in the US (which included
non-operating charges of $977 million). This compares with a loss
of $421 million a year ago, which included a non-operating gain of
$25 million. The average refining Global Indicator Margin (GIM) and
BP's actual refining margin for the fourth quarter were both lower
than those in the fourth quarter of 2006, mainly due to improved
product stock levels and rising crude prices, most notably in the
US. During 2007, the segment continued to focus on the restoration
of operations at the Texas City refinery and on investments in
integrity management throughout our refining portfolio. We have
also focused on the repair and recommissioning of the Whiting
refinery following the operational issues in March 2007. In many
parts of the refining portfolio and the other market-facing
businesses, we delivered high reliability and improved results
versus 2006. However for the full year, compared with 2006, the
impact of the outages and recommissioning costs at the Texas City
and Whiting refineries, cost inflation, lower results from supply
optimization and higher charges in respect of non-operating items
more than offset increased margins in both refining and marketing.
Refining throughputs were 1,998mb/d for the quarter, 196mb/d lower
than the fourth quarter of 2006. The reduction was mainly due to
the effects of the Coryton refinery disposal, major scheduled
turnarounds at the Rotterdam and Toledo refineries, as well as the
outage at the Whiting refinery; this was partially offset by
improvements in the remainder of the refining portfolio. For the
full year, throughputs were 2,127mb/d, 71mb/d lower than in 2006.
Refining availability for the quarter and full year was 84.0% and
82.9% respectively, higher than in the corresponding periods of
2006, reflecting the ongoing progress towards Texas City
recommissioning. Marketing volumes were 3,793mb/d in the fourth
quarter and 3,806mb/d for the full year, slightly lower than in the
equivalent periods last year, reflecting reduced industry demand in
Europe and supply disruptions caused by the outage at the Whiting
refinery. By the end of 2007, the Whiting refinery had recommenced
sour crude processing and available distillation capacity exceeded
300,000bpd, in line with prior guidance. At Texas City, we have
successfully recommissioned the three desulphurisation and
upgrading units necessary to allow restart of the remaining crude
distillation capacity. The final sour crude unit is mechanically
complete and is expected to be fully operational during the first
quarter. By mid-2008, we expect most of the economic capability at
the Texas City refinery to have been restored. On 15 November 2007,
BP announced that it would sell all of its company- owned and
company-operated convenience sites in the US. The majority of sites
will be sold to franchisees with the remaining sites sold to
dealers and large distributors (jobbers). On 5 December 2007, BP
announced it had agreed to create an integrated North American oil
sands business with Husky Energy Inc., by means of two separate
joint ventures, one associated with BP's Toledo refinery. In
mid-January 2008, BP and Sinopec signed a memorandum of
understanding to add a new 650,000 tonnes per annum acetic acid
plant at their YARACO joint venture in Chongqing, upstream Yangtze
River, south-west China. This world- scale acetic acid plant, using
BP's leading Cativa(R) technology, is expected to come onstream in
2011. Gas, Power and Renewables Fourth Third Fourth Quarter Quarter
Quarter Year 2006 2007 2007 $ million 2007 2006 468 (71) 304 Profit
before interest and tax(a) 674 1,321 2 14 (85) Inventory holding
(gains) losses (116) 55 Replacement cost profit (loss) 470 (57) 219
before interest and tax 558 1,376 By region: 147 (85) (103) UK
(178) 217 143 (37) (14) Rest of Europe (52) 123 114 (23) 23 US 128
692 66 88 313 Rest of World 660 344 470 (57) 219 558 1,376 Results
include: Non-operating items 56 (12) (31) UK (74) 88 189 - (26)
Rest of Europe (26) 189 - 4 (5) US 1 4 (30) - - Rest of World 2
(100) 215 (8) (62) (97) 181 (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 fourth quarter and full year was $219 million and $558 million
respectively, compared with $470 million and $1,376 million a year
ago. The net non-operating charge for the fourth quarter was $62
million, comprising net fair value losses on embedded derivatives,
a provision for restructuring costs, a charge for the impairment of
a solar asset and a net disposal gain. The corresponding quarter of
2006 included a net non-operating gain of $215 million. For the
full year, the net charge for non-operating items was $97 million
compared with a net gain of $181 million in 2006. The
fourth-quarter result was lower than the same period in 2006
primarily due to the change in non-operating items, described
above, and lower contributions from the marketing and trading
business, partly offset by better NGL operating performance. The
full-year result was also lower than in 2006 reflecting a net
charge for non-operating items (compared with a net gain last year)
and lower marketing and trading contributions, partly offset by
improved NGL performance. In the fourth quarter of 2007,
Alternative Energy commenced full commercial operations at the
300MW Cedar Creek project in Colorado, US and at the 40MW Dhule
project in India. Information on fair value accounting effects is
set out on page 10. Other Businesses and Corporate Fourth Third
Fourth Quarter Quarter Quarter Year 2006 2007 2007 $ million 2007
2006 Profit (loss) before interest (265) (462) (389) and tax(a)
(1,128) (885) (11) 11 16 Inventory holding (gains) losses 24 (62)
Replacement cost profit (loss) (276) (451) (373) before interest
and tax (1,104) (947) By region: 280 124 (63) UK (10) (268) (97)
(77) 23 Rest of Europe (35) (137) (319) (359) (316) US (901) (425)
(140) (139) (17) Rest of World (158) (117) (276) (451) (373)
(1,104) (947) Results include: Non-operating items 13 1 (26) UK
(25) (12) (2) (11) 24 Rest of Europe 41 (5) (199) (199) (61) US
(247) (75) - 4 - Rest of World 4 17 (188) (205) (63) (227) (75) (a)
Profit from continuing operations and includes profit after
interest and tax of equity-accounted entities. Other businesses and
corporate comprises Treasury (previously referred to as Finance),
the group's aluminium asset, interest income and costs relating to
corporate activities. The fourth quarter's result included a net
charge of $63 million in respect of non-operating items, compared
with a net charge of $188 million a year ago. 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. The Gas, Power and Renewables
business 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 below. Information for all quarters of 2005, 2006 and 2007
can be found at http://www.bp.com/FVAE. Fourth Third Fourth Quarter
Quarter Quarter Year 2006 2007 2007 $ million 2007 2006 Refining
and Marketing Unrecognized gains (losses) brought forward from
(252) 274 367 previous period 72 283 Unrecognized (gains) losses
(72) (367) (429) carried forward (429) (72)
Favourable/(unfavourable) impact relative to management's measure
(324) (93) (62) of performance (357) 211 Gas, Power and Renewables
Unrecognized gains (losses) brought forward from previous 399 198
234 period 155 123 Unrecognized (gains) losses (155) (234) (107)
carried forward (107) (155) Favourable/(unfavourable) impact
relative to management's measure 244 (36) 127 of performance 48
(32) (80) (129) 65 (309) 179 20 46 (29) Taxation(a) 105 (96) (60)
(83) 36 (204) 83 By region Refining and Marketing (27) 45 1 UK (52)
109 (60) 2 5 Rest of Europe (110) 101 (231) (142) (32) US (165) 13
(6) 2 (36) Rest of World (30) (12) (324) (93) (62) (357) 211 Gas,
Power and Renewables 75 (22) (11) UK 1 63 - - - Rest of Europe - -
191 (19) 19 US (77) (59) (22) 5 119 Rest of World 124 (36) 244 (36)
127 48 (32) (a) Tax is calculated using the quarter's effective tax
rate on replacement cost profit from continuing operations.
Cautionary Statement: The foregoing discussion contains forward
looking statements particularly those regarding refining production
and capacity, disposals, intended expansion and new production
capability. 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 on
stream; 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 2006 and our 2006 Annual Report on Form 20-F
filed with the US Securities and Exchange Commission. Group Income
Statement Fourth Third Fourth Quarter Quarter Quarter Year 2006
2007 2007 2007 2006 $ million $ million Sales and other operating
61,946 71,334 79,852 revenues (Note 3) 284,365 265,906 Earnings
from jointly controlled entities - after 284 900 992 interest and
tax 3,135 3,553 Earnings from associates - 125 204 157 after
interest and tax 697 442 177 172 221 Interest and other revenues
754 701 62,532 72,610 81,222 Total revenues 288,951 270,602 Gain on
sale of businesses 300 228 270 and fixed assets 2,487 3,714 Total
revenues and other 62,832 72,838 81,492 income 291,438 274,316
44,506 51,810 56,313 Purchases 200,766 187,183 Production and
manufacturing 6,425 6,297 7,590 expenses 25,915 23,793 Production
and similar taxes 632 921 1,518 (Note 4) 4,013 3,621 Depreciation,
depletion and 2,441 2,505 3,020 amortization 10,579 9,128
Impairment and losses on sale 60 129 872 of businesses and fixed
assets 1,679 549 408 244 201 Exploration expense 756 1,045
Distribution and administration 4,205 4,137 4,212 expenses 15,371
14,447 Fair value (gain) loss on (296) (14) 459 embedded
derivatives 7 (608) Profit before interest and taxation from
continuing 4,451 6,809 7,307 operations 32,352 35,158 205 262 333
Finance costs (Note 5) 1,110 718 (56) (89) (91) Other finance
income (Note 6) (369) (202) Profit before taxation from 4,302 6,636
7,065 continuing operations 31,611 34,642 Taxation (includes
overseas taxation for the year of $8,159 million, 2006 $9,174 1,347
2,158 2,561 million) 10,442 12,331 Profit from continuing 2,955
4,478 4,504 operations 21,169 22,311 Profit (loss) from Innovene -
- - operations (Note 2) - (25) 2,955 4,478 4,504 Profit for the
period 21,169 22,286 Attributable to: 2,880 4,406 4,399 BP
shareholders 20,845 22,000 75 72 105 Minority interest 324 286
2,955 4,478 4,504 21,169 22,286 Earnings per share - cents Profit
for the period attributable to BP shareholders 15.04 23.18 23.15
Basic 108.76 109.84 14.88 23.07 22.65 Diluted 107.84 109.00 Profit
from continuing operations attributable to BP shareholders 15.04
23.18 23.15 Basic 108.76 109.97 14.88 23.07 22.65 Diluted 107.84
109.12 Group Balance Sheet 31 December 31 December 2007 2006 $
million Non-current assets Property, plant and equipment 97,989
90,999 Goodwill 11,006 10,780 Intangible assets 6,652 5,246
Investments in jointly controlled entities 18,113 15,074
Investments in associates 4,579 5,975 Other investments 1,830 1,697
Fixed assets 140,169 129,771 Loans 999 817 Other receivables 968
862 Derivative financial instruments 3,741 3,025 Prepayments and
accrued income 1,083 1,034 Defined benefit pension plan surplus
8,914 6,753 155,874 142,262 Current assets Loans 165 141
Inventories 26,554 18,915 Trade and other receivables 38,020 38,692
Derivative financial instruments 6,321 10,373 Prepayments and
accrued income 3,589 3,006 Current tax receivable 705 544 Cash and
cash equivalents 3,562 2,590 78,916 74,261 Assets classified as
held for sale 1,286 1,078 80,202 75,339 Total assets 236,076
217,601 Current liabilities Trade and other payables 43,152 42,236
Derivative financial instruments 6,405 9,424 Accruals and deferred
income 6,640 6,147 Finance debt 15,394 12,924 Current tax payable
3,282 2,635 Provisions 2,195 1,932 77,068 75,298 Liabilities
directly associated with the assets classified as held for sale 163
54 77,231 75,352 Non-current liabilities Other payables 1,251 1,430
Derivative financial instruments 5,002 4,203 Accruals and deferred
income 959 961 Finance debt 15,651 11,086 Deferred tax liabilities
19,215 18,116 Provisions 12,900 11,712 Defined benefit pension plan
and other post-retirement benefit plan deficits 9,215 9,276 64,193
56,784 Total liabilities 141,424 132,136 Net assets 94,652 85,465
Equity BP shareholders' equity 93,690 84,624 Minority interest 962
841 94,652 85,465 Group Statement of Recognized Income and Expense
Fourth Third Fourth Quarter Quarter Quarter Year 2006 2007 2007
2007 2006 $ million $ million Currency translation 1,032 788 304
differences 1,887 2,025 Exchange gain on translation of foreign
operations transferred to gain on sale of businesses and fixed - -
- assets (147) - Actuarial gain relating to pensions and other
2,615 - 1,717 post-retirement benefits 1,717 2,615
Available-for-sale investments 264 78 225 marked to market 200 561
Available-for-sale investments - recycled to the (269) (91) -
income statement (91) (695) Cash flow hedges marked to 141 139 (25)
market 155 413 Cash flow hedges - recycled to (143) (5) 12 the
income statement (74) (93) Cash flow hedges - recycled to (11) (2)
(31) the balance sheet (40) (6) (814) 90 (181) Taxation (63) (934)
Net income recognized directly 2,815 997 2,021 in equity 3,544
3,886 2,955 4,478 4,504 Profit for the period 21,169 22,286 Total
recognized income and expense relating to 5,770 5,475 6,525 the
period 24,713 26,172 Attributable to: 5,646 5,372 6,448 BP
shareholders 24,365 25,837 124 103 77 Minority interest 348 335
5,770 5,475 6,525 24,713 26,172 Movement in BP Shareholders' Equity
$ million Movement in BP shareholders' equity At 31 December 2006
84,624 Profit for the period 20,845 Distribution to shareholders
(8,106) Currency translation differences (net of tax) 2,002
Exchange gain on translation of foreign operations transferred to
gain on sale (net of tax) (147) Share-based payments (net of tax)
1,017 Repurchase of ordinary share capital (7,997)
Available-for-sale investments (net of tax) 95 Cash flow hedges
(net of tax) 67 Actuarial gain on pension and other post-retirement
1,290 benefit plans (net of tax) At 31 December 2007 93,690 Group
Cash Flow Statement Fourth Third Fourth Quarter Quarter Quarter
Year 2006 2007 2007 2007 2006 $ million $ million Operating
activities Profit before taxation from 31,611 34,642 4,302 6,636
7,065 continuing operations Adjustments to reconcile profit before
taxation to net cash provided by operating activities 265 146 86
Exploration expenditure written off 347 624 Depreciation, depletion
and 2,441 2,505 3,020 amortization 10,579 9,128 Impairment and
(gain) loss on sale of businesses (240) (99) 602 and fixed assets
(808) (3,165) Earnings from jointly controlled entities and
(409)(1,104)(1,149) associates (3,832) (3,995) Dividends received
from jointly controlled entities 809 1,060 371 and associates 2,473
4,495 Working capital and other (2,198)(2,788)(5,706) movements
(15,661)(13,557) Net cash provided by operating 4,970 6,356 4,289
activities(a) 24,709 28,172 Investing activities
(4,473)(4,336)(5,515) Capital expenditure (17,830)(15,125)
Acquisitions, net of cash (127) (27) - acquired (1,225) (229)
Investment in jointly (11) (122) (285) controlled entities (428)
(37) (103) (37) (41) Investment in associates (187) (570) Proceeds
from disposal of fixed 918 211 392 assets 1,749 5,963 Proceeds from
disposal of businesses, net of cash (100) - 5 disposed 2,518 291 26
45 69 Proceeds from loan repayments 192 189 - - - Other 374 - Net
cash used in investing (3,870)(4,266)(5,375) activities (14,837)
(9,518) Financing activities (3,449)(1,441)(1,352) Net repurchase
of shares (7,113)(15,151) Proceeds from long-term 2,215 107 5,131
financing 8,109 3,831 Repayments of long-term (1,874) (369)(1,596)
financing (3,192) (3,655) Net increase (decrease) in 3,348 1,426
2,125 short-term debt 1,494 3,873 Dividends paid - BP
(1,927)(2,066)(2,056) shareholders (8,106) (7,686) (72) (24) (68) -
Minority interest (227) (283) Net cash used in financing
(1,759)(2,367) 2,184 activities (9,035)(19,071) Currency
translation differences relating to cash 50 44 54 and cash
equivalents 135 47 Increase (decrease) in cash and (609) (233)
1,152 cash equivalents 972 (370) Cash and cash equivalents at 3,199
2,643 2,410 beginning of period 2,590 2,960 Cash and cash
equivalents at 2,590 2,410 3,562 end of period 3,562 2,590 (a) Net
cash provided by operating activities is calculated from the
starting point of profit before taxation which includes inventory
holding gains and losses. Net cash provided by operating activities
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 product
prices. Group Cash Flow Statement Fourth Third Fourth Quarter
Quarter Quarter Year 2006 2007 2007 2007 2006 $ million $ million
Working capital and other movements (80) (154) (147) Interest
receivable (489) (473) 89 152 160 Interest received 500 500 205 262
333 Finance costs 1,110 718 (314) (300) (395) Interest paid (1,363)
(1,242) (56) (89) (91) Other finance income (369) (202) 77 129 109
Share-based payments 420 416 Net operating charge for pensions and
other post-retirement benefits, less contributions and benefit
payments for (128) (61) (225) unfunded plans (404) (261) Net charge
for provisions, less 446 362 (40) payments (92) 340 (Increase)
decrease in 861 (803)(5,121) inventories (7,255) 995 (Increase)
decrease in other current and non-current 2,869 956 1,736 assets
5,210 3,596 Increase (decrease) in other current and non-current
(2,476) (104) 676 liabilities (3,857) (4,211) (3,691)(3,138)(2,701)
Income taxes paid (9,072)(13,733) (2,198)(2,788)(5,706)
(15,661)(13,557) Capital Expenditure and Acquisitions Fourth Third
Fourth Quarter Quarter Quarter Year 2006 2007 2007 2007 2006 $
million $ million By business Exploration and Production 309 276
301 UK 993 955 49 122 144 Rest of Europe 461 244 1,234 1,133 1,216
US 4,852 4,605 1,905 1,710 2,378 Rest of World(a) 7,600 7,314 3,497
3,241 4,039 13,906 13,118 Refining and Marketing 217 137 224 UK 528
428 395 379 683 Rest of Europe(b) 2,538 710 540 466 758 US 1,873
1,339 334 155 294 Rest of World 647 667 1,486 1,137 1,959 5,586
3,144 Gas, Power and Renewables 43 6 11 UK 36 67 18 8 21 Rest of
Europe(b) 39 37 268 90 373 US 605 507 35 34 127 Rest of World 194
77 364 138 532 874 688 Other businesses and corporate 66 22 37 UK
115 137 - - - Rest of Europe 2 - 21 34 45 US 157 141 3 - 1 Rest of
World 1 3 90 56 83 275 281 5,437 4,572 6,613 20,641 17,231 By
geographical area 635 441 573 UK 1,672 1,587 462 509 848 Rest of
Europe 3,040 991 2,063 1,723 2,392 US 7,487 6,592 2,277 1,899 2,800
Rest of World 8,442 8,061 5,437 4,572 6,613 20,641 17,231 Included
above: Acquisitions and asset 205 2 - exchanges(b) 1,447 321 (a)
Full year 2006 included $1 billion for the purchase of shares in
Rosneft. (b) Full year 2007 included $1,132 million for the
acquisition of Chevron's Netherlands manufacturing company.
Exchange rates US dollar/sterling average rate 1.91 2.02 2.05 for
the period 2.00 1.84 US dollar/sterling period-end 1.96 2.02 1.99
rate 1.99 1.96 US dollar/euro average rate for 1.29 1.37 1.45 the
period 1.37 1.25 1.31 1.42 1.47 US dollar/euro period-end rate 1.47
1.31 Analysis of Profit Before Interest and Tax Fourth Third Fourth
Quarter Quarter Quarter Year 2006 2007 2007 2007 2006 $ million $
million By business Exploration and Production 1,534 703 816 UK
3,694 5,839 249 221 262 Rest of Europe 1,386 1,209 948 1,845 2,212
US 7,757 9,327 2,326 3,578 4,353 Rest of World 14,101 13,254 5,057
6,347 7,643 26,938 29,629 Refining and Marketing 28 (10) 153 UK
1,107 85 261 623 786 Rest of Europe 2,919 2,119 (951) (136)(1,221)
US 563 1,468 (44) 459 308 Rest of World 1,483 1,369 (706) 936 26
6,072 5,041 Gas, Power and Renewables 147 (85) (103) UK (178) 217
144 (37) (14) Rest of Europe (51) 134 116 (26) 61 US 183 682 61 77
360 Rest of World 720 288 468 (71) 304 674 1,321 Other businesses
and corporate 280 124 (63) UK (10) (268) (98) (78) 22 Rest of
Europe (36) (133) (307) (369) (331) US (924) (367) (140) (139) (17)
Rest of World (158) (117) (265) (462) (389) (1,128) (885) 4,554
6,750 7,584 32,556 35,106 (103) 59 (277) Consolidation adjustment
(204) 52 4,451 6,809 7,307 Total for continuing operations 32,352
35,158 Innovene operations (40) - - UK - (185) 25 - - Rest of
Europe - (36) 15 - - US - 16 - - - Rest of World - 21 - - - Total
for Innovene operations - (184) 4,451 6,809 7,307 Total for period
32,352 34,974 By geographical area 1,988 731 804 UK 4,613 5,897 533
718 988 Rest of Europe 4,164 3,282 (289) 1,364 521 US 7,439 11,164
2,219 3,996 4,994 Rest of World 16,136 14,815 4,451 6,809 7,307
Total for continuing operations 32,352 35,158 Analysis of
Replacement Cost Profit Before Interest and Tax Fourth Third Fourth
Quarter Quarter Quarter Year 2006 2007 2007 2007 2006 $ million $
million By business Exploration and Production 1,534 703 816 UK
3,694 5,839 249 221 262 Rest of Europe 1,386 1,209 952 1,843 2,213
US 7,746 9,344 2,328 3,576 4,357 Rest of World 14,101 13,255 5,063
6,343 7,648 26,927 29,647 Refining and Marketing 190 22 122 UK
1,097 351 336 492 278 Rest of Europe 1,652 2,249 (421) (527)(1,811)
US (1,252) 1,353 207 389 74 Rest of World 1,120 1,330 312 376
(1,337) 2,617 5,283 Gas, Power and Renewables 147 (85) (103) UK
(178) 217 143 (37) (14) Rest of Europe (52) 123 114 (23) 23 US 128
692 66 88 313 Rest of World 660 344 470 (57) 219 558 1,376 Other
businesses and corporate 280 124 (63) UK (10) (268) (97) (77) 23
Rest of Europe (35) (137) (319) (359) (316) US (901) (425) (140)
(139) (17) Rest of World (158) (117) (276) (451) (373) (1,104)
(947) 5,569 6,211 6,157 28,998 35,359 (103) 59 (277) Consolidation
adjustment (204) 52 5,466 6,270 5,880 Total for continuing
operations 28,794 35,411 Innovene operations (40) - - UK - (185) 25
- - Rest of Europe - (36) 15 - - US - 16 - - - Rest of World - 21 -
- - Total for Innovene operations - (184) 5,466 6,270 5,880 Total
for period 28,794 35,227 By geographical area 2,150 763 773 UK
4,603 6,163 609 590 480 Rest of Europe 2,897 3,398 230 983 (91) US
5,581 11,017 2,477 3,934 4,718 Rest of World 15,713 14,833 5,466
6,270 5,880 Total for continuing operations 28,794 35,411 Analysis
of Non-operating Items Fourth Third Fourth Quarter Quarter Quarter
Year 2006 2007 2007 2007 2006 $ million $ million By business
Exploration and Production Impairment and gain (loss) on sale of
businesses and 16 1 148 fixed assets 852 2,317 Environmental and
other - (12) - provisions (12) (17) Restructuring, integration and
- - (166) rationalization costs (166) - Fair value gain (loss) on
240 33 (430) embedded derivatives 47 515 (433) - (168) Other (168)
(433) (177) 22 (616) 553 2,382 Refining and Marketing Impairment
and gain (loss) on sale of businesses and 51 105 (728) fixed assets
(35) 729 Environmental and other - (138) - provisions (138) (33)
Restructuring, integration and - - (118) rationalization costs
(118) - Fair value gain (loss) on - - - embedded derivatives - -
(104) (311) (300) Other (661) (1,080) (53) (344)(1,146) (952) (384)
Gas, Power and Renewables Impairment and gain (loss) on sale of
businesses and 159 4 (21) fixed assets (28) 93 Environmental and
other - - - provisions - - Restructuring, integration and - - (22)
rationalization costs (22) - Fair value gain (loss) on 56 (12) (19)
embedded derivatives (47) 88 - - - Other - - 215 (8) (62) (97) 181
Other businesses and corporate Impairment and gain (loss) on sale
of businesses and 14 (11) (1) fixed assets 19 26 Environmental and
other (2) (35) - provisions (35) 94 Restructuring, integration and
- - (32) rationalization costs (32) - Fair value gain (loss) on -
(7) (10) embedded derivatives (7) 5 (200) (152) (20) Other (172)
(200) (188) (205) (63) (227) (75) Total before taxation for (203)
(535)(1,887) continuing operations (723) 2,104 51 189 857 Taxation
credit (charge)(a) 451 (851) Total after taxation for (152)
(346)(1,030) continuing operations (272) 1,253 Innovene operations
Total before taxation for - - - Innovene operations(b) - (184) - -
- Taxation credit (charge) - (7) Total after taxation for - - -
Innovene operations - (191) (152) (346)(1,030) Total after taxation
for period (272) 1,062 (a) Tax on non-operating items is calculated
using the quarter's effective tax rate on replacement cost profit
from continuing operations. (b) Includes the loss on remeasurement
to fair value of $184 million in 2006. Realizations and Marker
Prices Fourth Third Fourth Quarter Quarter Quarter Year 2006 2007
2007 2007 2006 $ million $ million Average realizations(a) Liquids
($/bbl)(b) 56.18 72.99 88.05 UK 69.17 61.67 52.11 67.47 78.28 US
64.18 57.25 54.63 73.56 84.51 Rest of World 69.56 59.54 54.13 71.12
82.72 BP Average 67.45 59.23 Natural gas ($/mcf) 5.61 4.89 7.83 UK
6.40 6.33 5.03 4.64 5.41 US 5.43 5.74 3.70 3.42 3.94 Rest of World
3.71 3.70 4.38 3.93 4.83 BP Average 4.53 4.72 Average oil marker
prices ($/bbl) 59.60 74.74 88.45 Brent 72.39 65.14 59.90 75.24
90.47 West Texas Intermediate 72.20 66.02 55.47 76.31 88.65 Alaska
North Slope US West Coast 71.68 63.57 53.29 69.37 81.38 Mars 66.58
58.90 56.06 71.98 85.41 Urals (NWE- cif) 69.16 61.22 26.33 41.95
48.98 Russian domestic oil 39.81 34.39 Average natural gas marker
prices 6.56 6.16 6.97 Henry Hub gas price ($/mmbtu)(c) 6.86 7.24 UK
Gas - National Balancing 29.92 30.58 46.70 Point (p/therm) 29.95
42.19 (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 the Month Index. Notes 1. Basis of
preparation BP prepares its Annual Report and Accounts in
accordance with International Financial Reporting Standards (IFRS)
as issued by the International Accounting Standards Board (IASB)
and IFRS as adopted for use by the European Union (EU). IFRS as
adopted for use 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 that will be
used in preparing the Annual Report and Accounts 2007 which do not
differ significantly from those used for the Annual Report and
Accounts 2006. 2. Sale of Olefins and Derivatives business The sale
of Innovene, BP's olefins, derivatives and refining group, to
INEOS, was completed on 16 December 2005. The year ended 31
December 2006 includes a loss on remeasurement to fair value of
$184 million. Fourth Third Fourth Quarter Quarter Quarter Year 2006
2007 2007 2007 2006 $ million $ million Loss recognized on the - -
- remeasurement to fair value - (184) Taxation - - - Related to
profit before tax - 166 - - - Related to remeasurement to fair
value - (7) - - - Profit (loss) from Innovene operations - (25)
Earnings (loss) per share from Innovene operations - cents - - -
Basic - (0.13) - - - Diluted - (0.12) 3. Sales and other operating
revenues Fourth Third Fourth Quarter Quarter Quarter Year 2006 2007
2007 2007 2006 $ million $ million By business 12,255 12,796 16,788
Exploration and Production 54,550 52,600 53,776 63,761 70,026
Refining and Marketing 250,866 232,855 5,224 4,490 5,863 Gas, Power
and Renewables 21,369 23,708 339 238 221 Other businesses and
corporate 843 1,009 71,594 81,285 92,898 327,628 310,172 9,648
9,951 13,046 Less: sales between businesses 43,263 44,266 61,946
71,334 79,852 Total third party sales 284,365 265,906 By
geographical area 23,676 25,017 33,015 UK 109,808 105,518 18,576
19,817 22,897 Rest of Europe 78,366 76,768 23,368 26,409 28,852 US
105,120 99,935 16,768 18,374 20,971 Rest of World 74,462 71,547
82,388 89,617 105,735 367,748 353,768 20,442 18,283 25,883 Less:
sales between areas 83,383 87,862 61,946 71,334 79,852 284,365
265,906 Notes 4. Profit before interest and taxation is after
charging: Fourth Third Fourth Quarter Quarter Quarter Year 2006
2007 2007 2007 2006 $ million $ million Production and similar
taxes (143) (34) 164 UK 197 260 775 955 1,354 Overseas 3,816 3,361
632 921 1,518 4,013 3,621 5. Finance costs Fourth Third Fourth
Quarter Quarter Quarter Year 2006 2007 2007 2007 2006 $ million $
million 290 348 393 Interest payable 1,433 1,196 (85) (86) (60)
Capitalized (323) (478) 205 262 333 1,110 718 6. Other finance
income Fourth Third Fourth Quarter Quarter Quarter Year 2006 2007
2007 2007 2006 $ million $ million Interest on pension and other
post-retirement 496 555 564 benefit plan liabilities 2,203 1,940
Expected return on pension and other post-retirement (619) (719)
(730) benefit plan assets (2,855) (2,410) Interest net of expected
(123) (164) (166) return on plan assets (652) (470) Unwinding of
discount on 67 75 75 provisions 283 245 Unwinding of discount on
deferred consideration for acquisition of - - - investment in
TNK-BP - 23 (56) (89) (91) (369) (202) Notes 7. Analysis of changes
in net debt Fourth Third Fourth Quarter Quarter Quarter Year 2006
2007 2007 2007 2006 $ million $ million Opening balance 19,973
23,754 25,245 Finance debt 24,010 19,162 Less: Cash and cash 3,199
2,643 2,410 equivalents 2,590 2,960 16,774 21,111 22,835 Opening
net debt 21,420 16,202 Closing balance 24,010 25,245 31,045 Finance
debt 31,045 24,010 Less: Cash and cash 2,590 2,410 3,562
equivalents 3,562 2,590 21,420 22,835 27,483 Closing net debt
27,483 21,420 (4,646)(1,724) (4,648) Decrease (increase) in net
debt (6,063) (5,218) Movement in cash and cash equivalents
(excluding exchange (659) (277) 1,098 adjustments) 837 (417) Net
cash outflow (inflow) from financing (3,689)(1,164) (5,660)
(excluding share capital) (6,411) (4,049) (208) (261) (26) Fair
value hedge adjustment (368) (581) (13) - - Debt acquired - (13)
(57) (21) (89) Other movements (134) (33) Movement in net debt
before (4,626)(1,723) (4,677) exchange effects (6,076) (5,093) (20)
(1) 29 Exchange adjustments 13 (125) (4,646)(1,724) (4,648)
Decrease (increase) in net debt (6,063) (5,218) Notes 8. TNK-BP
Operational and Financial Information Fourth Third Fourth Quarter
Quarter Quarter Year 2006 2007 2007 2007 2006 $ million $ million
Production (Net of royalties) (BP share) 837 830 829 Crude oil
(mb/d) 832 876 602 364 437 Natural gas (mmcf/d) 451 544 941 892 904
Total hydrocarbons (mboe/d)(a) 910 970 $ million $ million Income
statement (BP share) 359 1,094 1,278 Profit before interest and
tax(b) 3,743 4,616 (52) (67) (71) Interest expense (+) (264) (192)
(118) (289) (413) Taxation (993) (1,467) (6) (66) (42) Minority
interest (215) (193) 183 672 752 Net Income 2,271 2,764 (+)
Excludes unwinding of discount - - - on consideration - 23 Cash
Flow 500 800 - Dividends received(c) 1,300 3,271 Balance Sheet 31
December 31 December 2007 2006 Investments in jointly controlled
entities 8,817 8,353 (a) Natural gas is converted to oil equivalent
at 5.8 billion cubic feet = 1 million barrels. (b) Full year 2006
included a net gain of $892 million on the disposal of the
Udmurtneft assets. (c) Full year 2006 included $771 million
declared in fourth quarter 2005. 9. First quarter 2008 results BP's
first quarter 2008 results will be announced on 29 April 2008. 10.
Statutory accounts The financial information shown in this
publication, which was approved by the Board of Directors on 4
February 2008, is unaudited and does not constitute statutory
financial statements. The audited 2007 BP Annual Report and
Accounts will be published on 4 March 2008 and delivered to the
Registrar of Companies in due course. The 2006 BP Annual Report and
Accounts have 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.
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BP p.l.c. CONTACT: Press Office, London: Roddy Kennedy,
+44(0)20-7496-4624, United States: Ronnie Chappell,
+1-281-366-5174; or Investor Relations, London: Fergus MacLeod,
+44(0)20-7496-4717; or United States: Rachael MacLean,
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