BP: Third Quarter Performance And Growth Firmly On Track
07-Nov-2001
BP's third quarter pro forma result, adjusted for special items, was $3,049 million compared to $3,796 million a year ago, a reduction of 20%.
For the nine months the result was a record $10,974 million compared to $10,113 million and the result per share was up by 3%. In sterling terms
the increase was 10%. Replacement cost profit, before exceptional items, for the third quarter and nine months was $2,355 million and $8,824
million respectively, compared to $2,947 million and $8,415 million a year ago.
Return on average capital employed, on a pro forma basis and adjusted for special items, was 18% in the third quarter compared to 23% a year ago.
The third quarter and nine months results reflect a less favourable trading environment, offset by performance improvements which remain on track
to achieve the annual target.
Third quarter oil and gas production, adjusted for disposals, was around 3% higher than a year ago.
The company purchased for cancellation 49 million of its own shares during the quarter, at a cost of $400 million.
Quarterly dividend 5.5 cents per share ($0.33 per ADS). The dividend for the nine months was 16.25 cents per share, compared with 15.25 cents per
share a year ago, an increase of 7%. Cash dividends paid in the quarter and in the nine months are up 9% and 11%, respectively, on a year ago.
BP Group Chief Executive, Lord Browne, commented:
"Despite a weaker world economy, BP continues to deliver great profits and great growth. Our plans are robust to the poorer trading environment and we
will continue our established approach to cost management and investment selection."
The pro forma result, adjusted for special items, has been derived from the company's reported UK GAAP accounting information but is not in itself a
recognized UK or US GAAP measure. This financial performance information and measures derived therefrom, shown above and elsewhere in the
document, are provided in order to enable investors to evaluate better both the company's current performance, in the context of past performance, and
its performance against that of its competitors.
The special items refer to non-recurring charges and credits. The special items for the quarter comprise Castrol integration costs, Erdölchemie
rationalization costs and a bond redemption charge. In addition, for the nine months, special items include rationalization costs in the European
downstream commercial business.
Depreciation and amortization relating to the fixed asset revaluation adjustment and goodwill consequent upon the ARCO and Burmah Castrol
acquisitions.
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