First quarter 2010 results

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First quarter 2010

	First quarter 2010	Fourth quarter 2009	First quarter 2009	First quarter 2010 vs 2009
$ million
Profit for the period^(a)	6,079	4,295	2,562
Inventory holding (gains) losses, net of tax	(481)	(848)	(175)
Replacement cost profit	5,598	3,447	2,387	135%

-per ordinary share (cents)	29.82	18.38	12.75	134%
-per ADS (dollars)	1.79	1.10	0.77

BP's first-quarter replacement cost profit was $5,598 million, compared with $2,387 million a year ago, an increase of 135%. Non-operating items and fair value accounting effects for the first quarter had a net $49 million unfavourable impact compared with a net $194 million unfavourable impact in the first quarter of 2009. Finance costs and net finance income or expense relating to pensions and other post-retirement benefits were $228 million for the first quarter, compared with $368 million for the same period last year. The effective tax rate on replacement cost profit for the first quarter was 34%, compared with 37.5% a year ago. Net cash provided by operating activities for the first quarter was $7.7 billion, compared with $5.6 billion a year ago. Net debt at the end of the first quarter was $25.2 billion. The ratio of net debt to net debt plus equity was 19% compared with 23% a year ago. Cash costs^(b) for the first quarter were slightly lower than a year ago despite adverse foreign exchange and fuel cost effects. Total capital expenditure, including acquisitions and asset exchanges, for the first quarter was $4.7 billion. Organic capital expenditure^(c) in the first quarter was $3.8 billion. Disposal proceeds were $0.1 billion for the first quarter. For 2010 as a whole, we continue to expect organic capital expenditure of around $20 billion and disposal proceeds of $2-3 billion. The quarterly dividend, to be paid on 21 June 2010, is 14 cents per share ($0.84 per ADS), the same as a year ago. The corresponding amount in sterling will be announced on 8 June 2010. A scrip dividend alternative is available, allowing shareholders to elect to receive their dividend in the form of new ordinary shares and ADS holders in the form of new ADSs. Details of the scrip dividend programme are available at www.bp.com/scrip. ^(a) Profit attributable to BP shareholders. ^(b) Cash costs are a subset of production and manufacturing expenses plus distribution and administration expenses. They represent the substantial majority of the expenses in these line items but exclude associated non-operating items and certain costs that are variable, primarily with volumes (such as freight costs). They are the principal operating and overhead costs that management considers to be most directly under their control although they include certain foreign exchange and commodity price effects. ^(c) Organic capital expenditure excludes acquisitions and asset exchanges and the accounting for our transaction with Value Creation Inc. (see page 13).

Forward Looking Statements - Cautionary Statement:
This presentation and the associated slides and discussion contain forward-looking statements, particularly those regarding production, second quarter turn-around activities and the effect on volumes, costs and margins; our refining and petrochemical margins; second quarter Refining & Marketing turnaround activities; expected supply and trading contribution in the second quarter; organic capital expenditure; divestment proceeds and timing; dividend and availability of scrip dividend; expected underlying quarterly charges for Other business & corporate; capital efficiency generated by the centralized Developments Organization; longterm growth potential and access to high-margin barrels leveraged to the oil price through the Devon transaction and group strategy (including our focus on upstream profit growth, cost and capital efficiency, downstream turnaround and cost efficiency, focus and disciplined investment in Alternative Energy and corporate efficiency). By their nature, forward-looking statements involve risks and uncertainties 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; OPEC quota restrictions; PSA effects; operational problems; general economic conditions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations; regulatory or legal actions; exchange rate fluctuations; development and use of new technology; 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. For more information you should refer to our Annual Report and Accounts 2009 and our 2009 Annual Report on Form 20-F filed with the US Securities and Exchange Commission.

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:
We use certain terms in this presentation, such as “resources” and “non-proved reserves”, that the SEC’s rules 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. 1-06262. This form is available on our website at www.bp.com. You can also obtain this form from the SEC by calling 1-800-SEC-0330 or by logging on to their website at www.sec.gov.

First quarter 2010

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