BP Third Quarter 2007 Results

Release date: 23 October 2007

Download the full version of our third quarter results using the link below.

Third quarter 2007 results (pdf, 160KB)

Our 3Q 2007 results presentation has now finished.
The presentation hosted by Byron Grote, Chief Financial Officer, and Fergus MacLeod, Head of Investor Relations discussed BP’s third quarter 2007 results.

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Third quarter 2007 results presentation archive and podcast

2006	2007	2007	$ million	2007	2006	%
Third Quarter	Second Quarter	Third Quarter		Nine Months

6,231	7,376	4,406	Profit for the period*	16,446	19,120

744	(1,289)	(539)	Inventory holding (gains) losses	(2,131)	(762)

6,975	6,087	3,867	Replacement cost profit	14,315	18,358	(22)



18.76	15.96	9.94	- per ordinary share (pence)	37.44	50.01
35.08	31.67	20.34	- per ordinary share (cents)	74.51	91.02	(18)
2.10	1.90	1.22	- per ADS (dollars)	4.47	5.46

BP's third-quarter replacement cost profit was $3,867 million, compared with $6,975 million a year ago, a decrease of 45%. For the nine months, replacement cost profit was $14,315 million compared with $18,358 million, down 22%.
The third-quarter result included a net non-operating loss of $346 million compared with a net non-operating gain of $1,225 million in the third quarter of 2006. For the nine months, the net non-operating gain was $758 million compared with a net non-operating gain of $1,214 million for the first nine months of 2006.
Net cash provided by operating activities for the quarter and nine months was $6.4 billion and $20.4 billion respectively compared with $5.1 billion and $23.2 billion a year ago.
The effective tax rate on replacement cost profit from continuing operations for the third quarter was 35% compared with 40% a year ago. For the nine months, the rate was 35% compared with 37% in the equivalent period of 2006.
Net debt at the end of the quarter was $22.8 billion. The ratio of net debt to net debt plus equity was 20% compared with 16% a year ago.
Capital expenditure, excluding acquisitions and asset exchanges, was $4.6 billion for the quarter and for the nine months was $12.6 billion. Total capital expenditure and acquisitions was $4.6 billion for the quarter and $14 billion for the nine months. The nine months included $1.1 billion in respect of the acquisition of Chevron's Netherlands manufacturing company. Disposal proceeds were $0.2 billion for the quarter and were $3.9 billion for the nine months.
The quarterly dividend, to be paid in December, is 10.825 cents per share ($0.6495 per ADS) compared with 9.825 cents per share a year ago. For the nine months, the dividend showed an increase of 10%. In sterling terms, the quarterly dividend is 5.308 pence per share, compared with 5.241 pence per share a year ago; for the nine months the decrease was less than 1%. During the quarter, the company repurchased 128 million of its own shares for cancellation at a cost of $1.5 billion. For the nine months, share repurchases were 542 million at a cost of $6.0 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.}

Information on fair value accounting effects may be found on page 10 of the full version of our quarterly results. A table of these effects for 2005 and 2006 can be found by clicking the link below.

Fair Value Accounting Effects Historic Data (pdf, 11KB)

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

Forward-Looking Statements Cautionary Statement: This presentation and the associated slides and discussion contain forward-looking statements, particularly those regarding annual charges, oil and gas production, refinery production and capacity and shareholder distributions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will or may occur in the future. Actual results may differ from those expressed in such statements, depending on a variety of factors, including the timing of bringing new fields on stream; future levels of industry product supply; demand and pricing; operational problems; general economic conditions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations; exchange rate fluctuations; development and use of new technology; the success or otherwise of partnering, changes in public expectations and other changes in business conditions; the actions of competitors; natural disasters and adverse weather conditions; wars and acts of terrorism or sabotage; and other factors discussed elsewhere in this presentation.

Reconciliations to GAAP: This presentation also contains financial information which is not presented in accordance with generally accepted accounting principles (GAAP). A quantitative reconciliation of this information to the most directly comparable financial measure calculated and presented in accordance with GAAP can be found on our website at www.bp.com

Cautionary Note to US Investors: The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation, such as “resources” and “non-proved reserves”, that the SEC’s guidelines strictly prohibit us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosures in our Form 20-F, SEC File No. 001-06262, available from us at 3 St James’s Square, London SW3Y 4PD. You can also obtain this form from the SEC by calling 3- 800-SEC-0330.

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