First Quarter 2012 Results (Stock Exchange Announcement)

Download the full version of our first quarter 2012 results using the link below.

	First quarter 2012	Fourth quarter 2011	First quarter 2011
$ million
Profit for the period^(a)	5,915	7,685	7,254
Inventory holding (gains) losses, net of tax	(986)	(79)	(1,643)
Replacement cost profit^(b)	4,929	7,606	5,611
Net (favourable) unfavourable impact of non-operating items and fair value accounting effects, net of tax^(c)	(130)	(2,620)	(107)
Underlying replacement cost profit^(b)	4,799	4,986	5,504

Replacement cost profit
-per ordinary share (cents)	25.97	40.10	29.82
-per ADS (dollars)	1.56	2.41	1.79
Underlying replacement cost profit
-per ordinary share (cents)	25.29	26.28	29.25
-per ADS (dollars)	1.52	1.58	1.76

BP's first-quarter replacement cost (RC) profit was $4,929 million, compared with $5,611 million a year ago. After adjusting for a net credit from non-operating items of $185 million and net unfavourable fair value accounting effects of $55 million (both on a post-tax basis), underlying RC profit for the first quarter was $4,799 million, compared with $5,504 million for the same period last year. RC profit or loss for the group, underlying RC profit or loss and fair value accounting effects are non-GAAP measures and further information is provided on pages 4, 18 and 20. Non-operating items for the first quarter included a gain of $933 million relating to the sale of businesses and fixed assets and a loss of $233 million relating to impairment and losses on sale of businesses and fixed assets(c). All amounts relating to the Gulf of Mexico oil spill have been treated as non-operating items, with a de minimis net impact on the results this quarter. For further information on the Gulf of Mexico oil spill and its consequences see pages 2 - 3, Note 2 on pages 22 - 26, Legal proceedings on pages 31 - 32 and Legal proceedings on pages 160 - 164 of BP's Annual Report and Form 20-F 2011. Finance costs and net finance income or expense relating to pensions and other post-retirement benefits were $230 million for the first quarter, compared with $239 million for the same period last year. The effective tax rate on RC profit for the first quarter was 33% compared with 37% a year ago. For the first quarter of 2011, the effective tax rate included the impact of a $683-million one-off deferred tax adjustment in respect of the increase in the supplementary charge on UK oil and gas production. Excluding this impact, the effective tax rate for the first quarter of 2011 was 29%. The increase in the effective tax rate for the first quarter of 2012 compared with the first quarter of 2011 (excluding the impact of the one-off deferred tax adjustment) is mainly due to the impact of the divestment programme in 2011. Including the impact of the Gulf of Mexico oil spill, net cash provided by operating activities for the first quarter was $3.4 billion, compared with $2.4 billion in the same period last year. The amount for the first quarter of 2012 included a net cash outflow of $1.2 billion relating to the Gulf of Mexico oil spill (first quarter 2011, $2.8 billion outflow). Net debt at the end of the quarter was $31.2 billion, compared with $27.5 billion a year ago. The ratio of net debt to net debt plus equity was 20.7% compared with 21.0% a year ago. Net debt is a non-GAAP measure. See page 5 for further information. Total capital expenditure for the first quarter was $5.6 billion, almost all of which was organic(d). Disposal proceeds were $1.3 billion for the quarter. Since the start of 2010, we have announced disposals for a total of around $23 billion. The quarterly dividend expected to be paid on 27 June 2012 is 8 cents per share ($0.48 per ADS). The corresponding amount in sterling will be announced on 13 June 2012. 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 bp.com/scrip. ^(a) Profit attributable to BP shareholders. ^(b) See footnote (a) on page 4 for definitions of RC profit and underlying RC profit. ^(c) See pages 19 and 20 respectively for further information on non-operating items and fair value accounting effects. ^(d) Organic capital expenditure excludes acquisitions and asset exchanges (see page 17).

Forward-looking statements - cautionary statement
This presentation and the associated slides and discussion contain forward-looking statements, particularly those regarding: the quarterly dividend payment; the expected levels of production and upstream costs in the second quarter of 2012; the expected levels of full-year underlying and reported production in 2012; the expected level of refining margins, the prospects for the fuels marketing environment and the prospects for the petrochemicals margin environment in the second quarter of 2012; the expected timing for the resumption of operations at the Cherry Point refinery; the expected underlying average quarterly charge from Other businesses and corporate; the expected full-year effective tax rate; prospects for BP’s $38-billion divestment programme, and the intention to make $38 billion of disposals by the end of 2013; prospects for the completion of planned and announced divestments, including the planned disposals of the Texas City refinery and the southern part of the US West Coast fuels value chain; the level of full-year organic capital expenditure for 2012;

the expected future levels of gearing and net debt; the timing of future MDL 2179 proceedings; the expected timing for the commencement of certain BP-funded early restoration projects; the prospects for the approval of the settlement agreements with the Plaintiffs’ Steering Committee (PSC), and the timing of the fairness hearings in connection therewith; the expected cost of the settlement agreements with the PSC, the source of funding thereof and the expected impact thereof on the $37.2 billion charge taken in respect of the Gulf of Mexico oil spill; expectations regarding the ‘10-point plan’; the anticipated increase in operating cash flow and margins; the timing and composition of future projects including expected start up, completion, timing of production, level of production and margins; BP’s plans for utilizing anticipated additional operating cash flow; the prospects for BP’s balance sheet; expectations for drilling and rig activity in the Gulf of Mexico; the expected timing for the completion of payments to the Trust fund; and prospects for financial momentum in 2013 and 2014.

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 onstream; future levels of industry product supply; demand and pricing; OPEC quota restrictions; Production Sharing Agreement effects; operational problems; general economic conditions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations; changes in taxation or regulation; regulatory or legal actions including the types of enforcement action pursued and the nature of remedies sought; the actions of prosecutors, regulatory authorities, the Gulf Coast Claims Facility and the courts; the actions of all parties to the Gulf of Mexico oil spill-related litigation at various phases of the litigation; exchange rate fluctuations; development and use of new technology; the success or otherwise of partnering; the successful completion of certain disposals; the actions of competitors, trading partners, creditors, rating agencies and others; 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 under “Risk factors” in our Annual Report and Form 20-F 2011 as filed with the US Securities and Exchange Commission (SEC).

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.

Statement of Assumptions
The operating cash flow projection stated on slides 15 and 16 reflects our expectation that all required payments into the $20 billion US Trust Fund will have been completed prior to 2014. The projection does not reflect any cash flows relating to other liabilities, contingent liabilities, settlements or contingent assets arising from the Deepwater Horizon oil spill which may or may not arise at that time. As disclosed in our Annual Report and Form 20-F 2011, we are not today able to reliably estimate the amount or timing of a number of contingent liabilities.

Cautionary note to US investors
We use certain terms in this presentation, such as “resources”, “non-proved resources” and references to projections in relation to such 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. Tables and projections in this presentation are BP projections unless otherwise stated.

Stock Exchange Announcement dated 1 May 2012
For further information on BP’s results announced today, please see the First Quarter Results Stock Exchange Announcement dated 1 May 2012.

May 2012

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Webcast: 1Q results