BP p.l.c. Group Results First Quarter 2007



    

    LONDON, April 24 /CNW/ --

                                                                   First
                                       First     Fourth    First  Quarter
                                     Quarter    Quarter  Quarter  2007 vs
                                        2007       2006     2006    2006
    $million
    Profit for the period*             4,664      2,880    5,623
    Inventory holding (gains) losses    (303)     1,015     (358)
    Replacement cost profit            4,361      3,895    5,265    (17%)

    -- per ordinary share (pence)      11.54      10.37    14.66
    -- per ordinary share (cents)      22.50      20.08    25.66    (12%)
    -- per ADS (dollars)                1.35       1.21     1.54


    -- BP's first quarter replacement cost profit was $4,361 million, compared
       with $5,265 million a year ago, a decrease of 17%.

    -- The first quarter result included a net non-operating gain of $363
       million compared with a net non-operating charge of $17 million in the
       first quarter of 2006.

    -- Net cash provided by operating activities for the quarter was $8.0
       billion compared with $8.9 billion a year ago.

    -- The effective tax rate on replacement cost profit of continuing
       operations for the quarter was 35%; the rate was also 35% a year
       earlier.

    -- Net debt at the end of the quarter was $21.8 billion.  The ratio of net
       debt to net debt plus equity was 20% compared with 16% a year ago.

    -- Capital expenditure, excluding acquisitions, was $3.7 billion for the
       quarter.  Total capital expenditure and acquisitions was $4.8 billion,
       which included $1.1 billion in respect of the acquisition of Chevron's
       Netherlands manufacturing company. Capital expenditure excluding
       acquisitions is expected to be around $18 billion for the year.
       Disposal proceeds were $0.9 billion for the quarter.

    -- The quarterly dividend, to be paid in June, is 10.325 cents per share
       ($0.6195 per ADS) compared with 9.375 cents per share a year ago, an
       increase of 10%.  In sterling terms, the quarterly dividend is 5.151
       pence per share, compared with 5.251 pence per share a year ago, a
       decrease of 2%.  During the quarter, the company repurchased 238
       million of its own shares for cancellation at a cost of $2.5 billion.

    *  Profit attributable to BP shareholders.
    (Logo:  http://www.newscom.com/cgi-bin/prnh/20000724/NYM120LOGO )
    

    The commentaries above and following are based on replacement cost profit
and should be read in conjunction with the cautionary statement on page 9.


    Analysis of Replacement Cost Profit and Reconciliation to Profit for the
    Period

    
                                             First       Fourth        First
                                           Quarter      Quarter      Quarter
                                              2007         2006         2006
    $ million
    Exploration and Production               6,043        5,063        6,823
    Refining and Marketing                     838          312        1,612
    Gas, Power and Renewables                  206          470          301
    Other businesses and corporate            (116)        (276)        (217)
    Consolidation adjustment                    83         (103)          (8)
    RC profit before interest and tax        7,054        5,466        8,511

    Finance costs and other finance expense   (171)        (149)        (143)
    Taxation                                (2,440)      (1,347)      (2,929)
    Minority interest                          (82)         (75)         (71)
    RC profit from continuing operations
     attributable to BP shareholders(a)      4,361        3,895        5,368

    Inventory holding gains (losses)
     for continuing operations                 303       (1,015)         358

    Profit for the period from
     continuing operations attributable
     to BP shareholders                      4,664        2,880        5,726
    Profit (loss) for the period
     from Innovene operations(b)                 -            -         (103)
    Profit for the period attributable
     to BP shareholders                      4,664        2,880        5,623

    RC profit from continuing operations
     attributable to BP shareholders         4,361        3,895        5,368
    RC profit (loss) from
     Innovene operations                         -            -         (103)
    Replacement cost profit                  4,361        3,895        5,265

     (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 3.



                     Results include Non-operating Items

                                             First       Fourth        First
                                           Quarter      Quarter      Quarter
                                              2007         2006         2006
    $ million
    Exploration and Production                 748         (177)        (386)
    Refining and Marketing                    (229)         (53)         564
    Gas, Power and Renewables                    9          215          (55)
    Other businesses and corporate              34         (188)           9
                                               562         (203)         132
    Taxation                                  (199)          51          (46)
    Continuing operations                      363         (152)          86

    Innovene operations                          -            -          (96)
    Taxation                                     -            -           (7)
    Total for all operations                   363         (152)         (17)

    An analysis of non-operating items by type is provided on page 19.



                              Per Share Amounts

                                             First       Fourth        First
                                           Quarter      Quarter      Quarter
                                              2007         2006         2006
    Results for the period ($ million)
    Profit(a)                                4,664        2,880        5,623
    Replacement cost profit                  4,361        3,895        5,265

    Shares in issue at
     period end (thousand)(b)           19,290,540   19,510,496   20,341,135
    -- ADS equivalent (thousand)(b)      3,215,090    3,251,749    3,390,189
    Average number of shares
     outstanding (thousand)(b)          19,384,508   19,610,871   20,521,872
    -- ADS equivalent (thousand)(b)      3,230,751    3,268,479    3,420,312
    Shares repurchased in
     the period (thousand)                 237,916      310,385      349,079

    Per ordinary share (cents)
    Profit for the period                    24.06        15.04        27.40
    RC profit for the period                 22.50        20.08        25.66

    Per ADS (cents)
    Profit for the period                   144.36        90.24       164.40
    RC profit for the period                135.00       120.48       153.96

     (a)  Profit attributable to BP shareholders.
     (b)  Excludes treasury shares.



                                  Dividends
    

    BP today announced a dividend of 10.325 cents per ordinary share to be
paid in June. Holders of ordinary shares will receive 5.151 pence per share
and holders of American Depository Receipts (ADRs) $0.6195 per ADS. The
dividend is payable on 4 June to shareholders on the register on 11 May.
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 4 June.

    
                                             First       Fourth        First
                                           Quarter      Quarter      Quarter
                                              2007         2006         2006

    Dividends paid per ordinary share
     cents                                  10.325        9.825        9.375
     pence                                   5.258        5.241        5.288
    Dividends per ADS (cents)                61.95        58.95        56.25



                 Net Debt Ratio - Net Debt: Net Debt + Equity

                                             First       Fourth        First
                                           Quarter      Quarter      Quarter
                                              2007         2006         2006
    $ million
    Gross debt                              23,728       24,010       18,679
    Cash and cash equivalents                1,956        2,590        2,939
    Net debt                                21,772       21,420       15,740
    Equity                                  85,749       85,465       80,881
    Net debt ratio                             20%          20%          16%



                          Exploration and Production

                                            First        Fourth        First
                                          Quarter       Quarter      Quarter
    $ million                                2007          2006         2006


    Profit before interest and tax (a)      6,054         5,057        6,816
    Inventory holding (gains) losses          (11)            6            7
    Replacement cost profit
     before interest and tax                6,043         5,063        6,823

    By region:
    UK                                      1,062         1,534        1,165
    Rest of Europe                            720           249          303
    US                                      1,652           952        2,311
    Rest of World                           2,609         2,328        3,044
                                            6,043         5,063        6,823
    Results include:
    Non-operating items
    UK                                        145           289         (394)
    Rest of Europe                            533           (13)           -

    US                                         (8)         (269)           2
    Rest of World                              78          (184)           6
                                              748          (177)        (386)

    Exploration expense
    UK                                         20             6            7
    Rest of Europe                              -             -            -

    US                                         77            324          66
    Rest of World                              59             78         116
                                              156            408         189

    Production (net of royalties) (b)

    Liquids (mb/d) (net of royalties) (c)
    UK                                        236            239         281
    Rest of Europe                             59             57          68
    US                                        526            533         566
    Rest of World                           1,625          1,587       1,618
                                            2,446          2,416       2,533

    Natural gas (mmcf/d) (net of royalties)
    UK                                        907            888       1,196
    Rest of Europe                             41             90          94
    US                                      2,163          2,196       2,485
    Rest of World                           5,391          5,082       4,938
                                            8,502          8,256       8,713


    Total hydrocarbons (mboe/d) (d)
    UK                                        393            392         487
    Rest of Europe                             66             73          83
    US                                        899            912         995
    Rest of World                           2,554          2,463       2,470
                                            3,912          3,840       4,035

    Average realizations (e)
    Total liquids ($/bbl)                   53.43          54.13       55.88
    Natural gas ($/mcf)                      4.86           4.38        5.54
    Total hydrocarbons ($/boe)              41.06          40.13       44.20

     (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.



                          Exploration and Production
    

    The replacement cost profit before interest and tax for the first quarter
was $6,043 million, a decrease of 11% over the first quarter of 2006.  This
result was impacted by lower oil and gas realizations and lower reported
volumes, reflecting the impact of the divestment activity in 2006.  In
addition, it included higher costs, reflecting the impacts of sector-specific
inflation, increased integrity spend and higher depreciation charges.  BP's
share of income from TNK-BP was negatively affected by lower prices and the
adverse effect of lagged tax reference prices.
    The result included a net non-operating gain of $748 million, with the
most significant items being the gain on the sale of our assets in the
Netherlands, which completed on 31 January, and fair value gains on embedded
derivatives relating to North Sea gas contracts.  The corresponding quarter in
2006 contained a net non-operating charge of $386 million.
    After adjusting for the impact of divestments, production was flat
compared with the first quarter of 2006.  Actual production was down 123
mboe/d.  Full year production in 2007 is expected to be in the range of 3.8 to
3.9 mmboe/d, in line with the guidance given with our fourth quarter results.
    During the quarter, we had our first lifting from the Dalia field in
Angola, with the field ramping up as planned, and the BTC pipeline celebrated
the loading of its 100 millionth barrel at the Ceyhan terminal. In Angola, the
Greater Plutonio FPSO has been successfully moored.
    We continued our strong exploration track record in Angola with Miranda,
our 13th successful well in Block 31, and made the Giza North gas discovery in
Egypt.

    Since the end of the quarter, we have divested our interest in the
Entrada field in the deepwater Gulf of Mexico, and acquired an increased
interest in the Badin field in Pakistan in exchange for our ownership interest
in the West Texas Pipeline System.



    Refining and Marketing

    
                                      First          Fourth            First
                                    Quarter         Quarter          Quarter
                                       2007            2006             2006
    $ million
    Profit (loss) before
     interest and tax (a)             1,129           (706)           2,038
    Inventory holding (gains) losses   (291)         1,018             (426)
    Replacement cost profit (loss)
     before interest and tax            838            312            1,612

    By region:
    UK                                  (10)           190             (148)
    Rest of Europe                      298            336              564
    US                                  122           (421)             637
    Rest of World                       428            207              559
                                        838            312            1,612
    Results include:
    Non-operating items
    UK                                 (163)            23               20
    Rest of Europe                      (12)           (89)             229
    US                                  (58)            25               96
    Rest of World                         4            (12)             219
                                       (229)           (53)             564
    Refinery throughputs (mb/d)
    UK                                  148            188              111
    Rest of Europe                      640            660              639
    US                                1,152          1,052              976
    Rest of World                       292            294              296
    Total throughput                  2,232          2,194            2,022

    Refining availability (%)(b)       81.6           81.6             79.9

    Oil sales volumes (mb/d)
    Refined products
    UK                                  335            354              345
    Rest of Europe                    1,246          1,368            1,315
    US                                1,564          1,541            1,599
    Rest of World                       624            601              567
    Total marketing sales             3,769          3,864            3,826
    Trading/supply sales              2,026          1,920            2,204
    Total refined product sales       5,795          5,784            6,030
    Crude oil                         2,017          1,959            2,571
    Total oil sales                   7,812          7,743            8,601

    Global Indicator Refining
     Margin ($/bbl) (c)
    NWE                                4.16           2.49             2.88
    USGC                              10.14           7.92            10.86
    Midwest                            7.62           5.42             4.89
    USWC                              22.21          14.59            11.22
    Singapore                          4.84           2.95             3.54
    BP Average                         9.45           6.30             6.28

    Chemicals production (kte)
    UK                                  256            159              303
    Rest of Europe                      748            797              842
    US                                1,076            976              789
    Rest of World                     1,520          1,357            1,687
    Total production                  3,600          3,289            3,621

     (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,
          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 profit before interest and tax for the first quarter
was $838 million compared with $1,612 million for the same period last year.
The quarter's result included a net non-operating charge of $229 million,
primarily in respect of asset impairments. This compares with a net non-
operating gain of $564 million for the same period last year.
    Compared with the first quarter of 2006, our result benefited from a
stronger operating environment for both refining and marketing.  However, the
benefit of higher refining throughput at Texas City during the quarter was
more than offset by the impact of operational issues at a number of our other
refineries, particularly in the US. In addition, the quarter's result reflects
a significant IFRS fair value accounting charge, lower supply optimization
benefits and greater integrity spend.
    The refining throughputs for the quarter were 2,232 mb/d compared with
2,022 mb/d for the same quarter last year. The improvement in throughputs was
mainly due to the partial resumption of operations at the Texas City refinery.
Excluding the Texas City refinery, refining availability for the first quarter
of 2007 was 94.6% compared with 96.0% in the first quarter of 2006. Marketing
sales were 3,769 mb/d compared with 3,826 mb/d for the corresponding period in
2006, reflecting lower heating oil demand in Europe caused by relatively mild
winter weather.
    On 31 March 2007, BP completed its acquisition of Chevron's Netherlands
manufacturing company, Texaco Raffinaderij Pernis B.V., for $1.1 billion.
    BP agreed to sell, subject to required regulatory approvals, its Coryton
Refinery in Essex, UK, to Petroplus Holdings AG for consideration of $1.4
billion, plus working capital.  Furthermore, BP announced its intention to
sell its ethyl acetate and vinyl acetate monomer manufacturing units at
Saltend, near Hull, UK.
    BP announced it had selected the University of California Berkeley, and
its partners the University of Illinois at Urbana-Champaign and the Lawrence
Berkeley National Laboratory, to join in the previously announced $500 million
research programme to explore how bioscience can be used to increase energy
production and reduce the impact of energy consumption on the environment.
    Late in the quarter, operational issues at the Whiting Refinery have
reduced throughput to around 200,000 barrels per day, about half its capacity,
and limited the crude slate to primarily sweet grades.  This will continue
until we complete the necessary repairs.



    Gas, Power and Renewables

    
                                              First      Fourth        First
                                            Quarter     Quarter      Quarter
                                               2007        2006         2006

    Profit before interest and tax (a)          206         468          238
    Inventory holding (gains) losses              -           2           63
    Replacement cost profit
     before interest and tax                    206         470          301

    By region:
    UK                                           48         147          (72)
    Rest of Europe                                7         143            1
    US                                           26         114          178
    Rest of World                               125          66          194
                                                206         470          301

    Results include:
    Non-operating items
    UK                                            7          56          (55)
    Rest of Europe                                -         189            -
    US                                            1           -            -
    Rest of World                                 1         (30)           -
                                                  9         215          (55)

     (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 first quarter
was $206 million compared with $301 million a year ago.  The non-operating
gain for the first quarter comprises fair value gains on embedded derivatives
of $7 million and a net gain of $2 million on the sale of assets.  The
corresponding quarter in 2006 included a fair value loss of $55 million on
embedded derivatives.
    The first quarter's result was significantly lower than the same period
in 2006, primarily due to a lower contribution from the marketing and trading
business, partially offset by strong operating performance from the NGL's
business, particularly in Canada, a positive impact in respect of non-
operating items and a benefit due to the absence of last year's IFRS fair
value accounting charge.
    In March, BP Solar began construction of two mega cell plants, one at its
European headquarters in Madrid, Spain and the second at its joint venture
facility, Tata BP Solar, in Bangalore, India.  Also, we expect to begin
construction of a wind power generation project in India and five wind power
generation projects in the US, located in California, Colorado, North Dakota
and Texas, in 2007. These projects are expected to deliver a combined
generation capacity of more than 500 megawatts. During the quarter, China's
first LNG terminal at Guangdong (BP 30%) reached the milestone of receiving 1
million tonnes of LNG, which is supplied to power, industrial and residential
customers in Southeast China.



    Other Businesses and Corporate

    
                                           First       Fourth          First
                                         Quarter      Quarter        Quarter
                                            2007         2006           2006
    $ million
    Profit (loss) before
     interest and tax (a)                  (115)        (265)          (215)
    Inventory holding (gains) losses         (1)         (11)            (2)
    Replacement cost profit (loss)
     before interest and tax               (116)        (276)          (217)

    By region:
    UK                                      (46)         280           (141)
    Rest of Europe                           21          (97)            (3)
    US                                     (114)        (319)          (104)
    Rest of World                            23         (140)            31
                                           (116)        (276)          (217)

    Results include:
    Non-operating items
    UK                                        -           13              -
    Rest of Europe                           28           (2)             -
    US                                        6         (199)             9
    Rest of World                             -            -              -
                                             34         (188)             9

     (a)  Profit from continuing operations and includes profit after interest
          and tax of equity-accounted entities.
    

    Other businesses and corporate comprises Finance, the group's aluminium
asset, interest income and costs relating to corporate activities. The first
quarter's result includes a net gain of $34 million in respect of non-
operating items.



    Cautionary Statement: The foregoing discussion contains forward looking
statements particularly those regarding capital expenditure, production and
the construction of wind power generation projects and their expected combined
generation capacity.  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; 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; 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.



    Summarized Group Income Statement

    
                                              First       Fourth        First
                                            Quarter      Quarter      Quarter
                                               2007         2006         2006
    $ million
    Sales and other operating
     revenues (Note 4)                       61,307       61,946       63,288
    Earnings from jointly controlled
     entities - after interest and tax          333          284          573
    Earnings from associates
     - after interest and tax                   163          125          115
    Interest and other revenues                 233          177          198
    Total revenues                           62,036       62,532       64,174
    Gains on sale of businesses
     and fixed assets                           680          300          597
    Total revenues and other income          62,716       62,832       64,771

    Purchases                                42,660       44,506       43,819
    Production and manufacturing expenses     5,752        6,425        5,217
    Production and similar taxes (Note 5)       747          632          932
    Depreciation, depletion
     and amortization                         2,519        2,441        2,184
    Impairment and losses on sale of
     businesses and fixed assets                223           60           23
    Exploration expense                         156          408          189
    Distribution and
     administration expenses                  3,457        4,205        3,096
    Fair value (gain) loss on
     embedded derivatives                      (155)        (296)         442
    Profit before interest and taxation
     from continuing operations               7,357        4,451        8,869
    Finance costs (Note 6)                      264          205          191
    Other finance income (Note 7)               (93)         (56)         (48)
    Profit before taxation
     from continuing operations               7,186        4,302        8,726
    Taxation                                  2,440        1,347        2,929
    Profit from continuing operations         4,746        2,955        5,797
    Profit (loss) from Innovene
     operations (Note 3)                          -            -         (103)
    Profit for the period                     4,746        2,955        5,694
    Attributable to:
    BP shareholders                           4,664        2,880        5,623
    Minority interest                            82           75           71
                                              4,746        2,955        5,694

    Earnings per share - cents
    Profit for the period attributable
     to BP shareholders
    Basic                                     24.06        15.04        27.40
    Diluted                                   23.94        14.88        27.13
    Profit from continuing operations
     attributable to BP shareholders
    Basic                                     24.06        15.04        27.90
    Diluted                                   23.94        14.88        27.63



                        Summarized Group Balance Sheet

                                                   31 March   31 December
                                                       2007          2006

    $ million
    Non-current assets
    Property, plant and equipment                    92,307        90,999
    Goodwill                                         10,991        10,780
    Intangible assets                                 5,667         5,246
    Investments in jointly controlled entities       15,159        15,074
    Investments in associates                         6,064         5,975
    Other investments                                 1,595         1,697
    Fixed assets                                    131,783       129,771
    Loans                                               769           817
    Other receivables                                   931           862
    Derivative financial instruments                  2,486         3,025
    Prepayments and accrued income                    1,025         1,034
    Defined benefit pension plan surplus              6,950         6,753
                                                    143,944       142,262
    Current assets
    Loans                                               175           141
    Inventories                                      19,812        18,915
    Trade and other receivables                      38,819        38,692
    Derivative financial instruments                  7,550        10,373
    Prepayments and accrued income                    3,392         3,006
    Current tax receivable                               95           544
    Cash and cash equivalents                         1,956         2,590
                                                     71,799        74,261
    Assets classified as held for sale                1,113         1,078
                                                     72,912        75,339
    Total assets                                    216,856       217,601
    Current liabilities
    Trade and other payables                         43,681        42,236
    Derivative financial instruments                  7,508         9,424
    Accruals and deferred income                      5,467         6,147
    Finance debt                                     11,597        12,924
    Current tax payable                               3,322         2,635
    Provisions                                        1,934         1,932
                                                     73,509        75,298
    Liabilities directly associated with the
     assets classified as held for sale                   -            54
                                                     73,509        75,352
    Non-current liabilities
    Other payables                                    1,319         1,430
    Derivative financial instruments                  3,626         4,203
    Accruals and deferred income                        949           961
    Finance debt                                     12,131        11,086
    Deferred tax liabilities                         18,593        18,116
    Provisions                                       11,655        11,712
    Defined benefit pension plan and other
     post-retirement benefit plan deficits            9,325         9,276
                                                     57,598        56,784
    Total liabilities                               131,107       132,136
    Net assets                                       85,749        85,465

    Equity
    BP shareholders' equity                          84,874        84,624
    Minority interest                                   875           841
                                                     85,749        85,465



               Group Statement of Recognized Income and Expense

                                               First        Fourth      First
                                             Quarter       Quarter    Quarter
                                                2007          2006       2006
    $ million
    Currency translation differences             174         1,032        153
    Exchange gain on translation of
     foreign operations transferred to gain
     on sale of businesses and fixed assets      (19)            -          -
    Actuarial gain relating to pensions
     and other post-retirement benefits            -         2,615          -
    Available-for-sale investments
     marked to market                           (109)          264        197
    Available-for-sale investments -
     recycled to the income statement              -          (269)      (346)
    Cash flow hedges marked to market             28           141         57
    Cash flow hedges - recycled
     to the income statement                     (60)         (143)        57
    Cash flow hedges - recycled
     to the balance sheet                         (7)          (11)         -
    Taxation                                     (77)         (814)        61
    Net income (expense) recognized
     directly in equity                          (70)        2,815        179
    Profit for the period                      4,746         2,955      5,694
    Total recognized income and
     expense for the period                    4,676         5,770      5,873
    Attributable to:
     BP shareholders                           4,578         5,646      5,802
     Minority interest                            98           124         71
                                               4,676         5,770      5,873



                     Movement in BP Shareholders' Equity

    $ million
    Movement in BP shareholders' equity
    At 31 December 2006                                                84,624
    Profit for the period                                               4,664
    Distribution to shareholders                                       (2,001)
    Currency translation differences (net of tax)                         142
    Exchange gain on translation of foreign operations
     transferred to gain on sale (net of tax)                             (19)
    Share-based payments (net of tax)                                     104
    Repurchase of ordinary share capital                               (2,499)
    Available-for-sale investments (net of tax)                          (121)
    Cash flow hedges (net of tax)                                         (20)

    At 31 March 2007                                                   84,874



                     Summarized Group Cash Flow Statement

                                            First        Fourth        First
                                          Quarter       Quarter      Quarter
                                             2007          2006         2006
    $ million
    Operating activities
    Profit before taxation from
     continuing operations                  7,186         4,302        8,726
    Adjustments to reconcile profits
     before tax to net cash provided
     by operating activities
    Exploration expenditure written off        55           265          114
    Depreciation, depletion
     and amortization                       2,519         2,441        2,184
    Impairment and (gain) loss on sale
     of businesses and fixed assets          (457)         (240)        (574)
    Earnings from jointly controlled
     entities and associates                 (496)         (409)        (688)
    Dividends received from jointly
     controlled entities and associates       229           809        1,011
    Working capital and other movements    (1,058)       (2,198)      (1,850)
    Net cash provided by
     operating activities (a)               7,978         4,970        8,923
    Investing activities
    Capital expenditure                    (3,645)       (4,473)      (3,295)
    Acquisitions, net of cash acquired     (1,087)         (127)           -
    Investment in jointly
     controlled entities                       (9)          (11)           -
    Investment in associates                  (44)         (103)        (157)
    Proceeds from disposal
     of fixed assets                          310           918          484
    Proceeds from disposal of businesses,
     net of cash disposed                     608          (100)         166
    Proceeds from loan repayments              45            26           72
    Net cash used in
     investing activities                  (3,822)       (3,870)      (2,730)
    Financing activities
    Net repurchase of shares               (2,402)       (3,449)      (3,861)
    Proceeds from long-term financing       1,358         2,215          396
    Repayments of long-term financing      (1,134)       (1,874)         (65)
    Net increase (decrease)
     in short-term debt                      (558)        3,348         (710)
    Dividends paid -- BP shareholders      (2,001)       (1,927)      (1,922)
                   -- Minority interest       (64)          (72)         (66)
    Net cash used in
     financing activities                  (4,801)       (1,759)      (6,228)
    Currency translation differences
     relating to cash and cash equivalents     11            50           14
    Increase (decrease) in cash
     and cash equivalents                    (634)         (609)         (21)
    Cash and cash equivalents at
     beginning of period                    2,590         3,199        2,960
    Cash and cash equivalents at
     end of period                          1,956         2,590        2,939

     (a)  Operating cash flow is calculated from the starting point of profit
          before taxation which includes inventory holding gains and losses.
          Operating cash flow 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
          products prices.



                     Summarized Group Cash Flow Statement

                                              First       Fourth      First
                                            Quarter      Quarter    Quarter
                                               2007         2006       2006
    $ million
    Working capital and other movements
    Interest receivable                        (95)         (80)      (130)
    Interest received                           85           89        146
    Finance costs                              264          205        191
    Interest paid                             (333)        (314)      (310)
    Other finance income                       (93)         (56)       (48)
    Share-based payments                        75           77         83
    Net operating charge for pensions
     and other post-retirement benefits,
     less contributions                        (87)        (128)       (50)
    Net charge for provisions,
     less payments                            (157)         446       (207)
    (Increase) decrease in inventories        (648)         861      1,008
    (Increase) decrease in other
     current and non-current assets          3,139        2,869        335
    Increase (decrease) in other
     current and non-current liabilities    (2,000)      (2,476)      (107)
    Income taxes paid                       (1,208)      (3,691)    (2,761)
                                            (1,058)      (2,198)    (1,850)



                     Capital Expenditure and Acquisitions

                                      First          Fourth        First
                                    Quarter         Quarter      Quarter
                                       2007            2006         2006
    $ million
    By business

    Exploration and Production
    UK                                  221             309          182
    Rest of Europe                       87              49           69
    US                                1,050           1,234        1,021
    Rest of World                     1,638           1,905        1,428
                                      2,996           3,497        2,700
    Refining and Marketing
    UK                                   73             217           61

    Rest of Europe (a)                1,210             395           65
    US                                  269             540          258
    Rest of World                        80             334          107
                                      1,632           1,486          491
    Gas, Power and Renewables
    UK                                    7              43            1
    Rest of Europe (a)                    7              18            5
    US                                   36             268           20
    Rest of World                        13              35           14
                                         63             364           40
    Other businesses and corporate
    UK                                   35              66           19
    Rest of Europe                        2               -            -
    US                                   32              21            8
    Rest of World                         -               3            -
                                         69              90           27
                                      4,760           5,437        3,258
    By geographical area
    UK                                  336             635          263
    Rest of Europe                    1,306             462          139
    US                                1,387           2,063        1,307
    Rest of World                     1,731           2,277        1,549
                                      4,760           5,437        3,258
    Included above:
    Acquisitions and asset
     exchanges (a)                    1,113             205           10

     (a)  First quarter 2007 includes $1,108 million for the acquisition of
          Chevron's Netherlands manufacturing company.

    Exchange rates
    US dollar/sterling average
     rate for the period               1.95            1.91         1.75
    US dollar/sterling
     period-end rate                   1.96            1.96         1.75
    US dollar/euro average
     rate for the period               1.31            1.29         1.20
    US dollar/euro period-end rate     1.33            1.31         1.21



                  Analysis of Profit Before Interest and Tax

                                      First          Fourth        First
                                    Quarter         Quarter      Quarter
                                       2007            2006         2006
    $ million
    By business

    Exploration and Production
    UK                                1,062           1,534        1,165
    Rest of Europe                      720             249          303
    US                                1,663             948        2,304
    Rest of World                     2,609           2,326        3,044
                                      6,054           5,057        6,816
    Refining and Marketing
    UK                                  (64)             28         (155)
    Rest of Europe                      481             261          686
    US                                  289            (951)         828
    Rest of World                       423             (44)         679
                                      1,129            (706)       2,038
    Gas, Power and Renewables
    UK                                   48             147          (72)
    Rest of Europe                        7             144            7
    US                                   24             116          168
    Rest of World                       127              61          135
                                        206             468          238
    Other businesses and corporate
    UK                                  (46)            280         (141)
    Rest of Europe                       21             (98)          (1)
    US                                 (113)           (307)        (104)
    Rest of World                        23            (140)          31
                                       (115)           (265)        (215)
                                      7,274           4,554        8,877
    Consolidation adjustment             83            (103)          (8)
    Total for continuing operations   7,357           4,451        8,869
    Innovene operations
    UK                                    -             (40)         (55)
    Rest of Europe                        -              25          (21)
    US                                    -              15            7
    Rest of World                         -               -          (27)
    Total for Innovene operations         -               -          (96)
    Total for period                  7,357           4,451        8,773
    By geographical area
    UK                                  998           1,988          772
    Rest of Europe                    1,245             533          995
    US                                1,932            (289)       3,245
    Rest of World                     3,182           2,219        3,857
    Total for continuing operations   7,357           4,451        8,869



         Analysis of Replacement Cost Profit Before Interest and Tax

                                      First          Fourth        First
                                    Quarter         Quarter      Quarter
                                       2007            2006         2006
    $ million
    By business

    Exploration and Production
    UK                                1,062           1,534        1,165
    Rest of Europe                      720             249          303
    US                                1,652             952        2,311
    Rest of World                     2,609           2,328        3,044
                                      6,043           5,063        6,823
    Refining and Marketing
    UK                                  (10)            190         (148)
    Rest of Europe                      298             336          564
    US                                  122            (421)         637
    Rest of World                       428             207          559
                                        838             312        1,612
    Gas, Power and Renewables
    UK                                   48             147          (72)
    Rest of Europe                        7             143            1
    US                                   26             114          178
    Rest of World                       125              66          194
                                        206             470          301
    Other businesses and corporate
    UK                                  (46)            280         (141)
    Rest of Europe                       21             (97)          (3)
    US                                 (114)           (319)        (104)
    Rest of World                        23            (140)          31
                                       (116)           (276)        (217)
                                      6,971           5,569        8,519
    Consolidation adjustment             83            (103)          (8)
    Total for continuing operations   7,054           5,466        8,511
    Innovene operations
    UK                                    -             (40)         (55)
    Rest of Europe                        -              25          (21)
    US                                    -              15            7
    Rest of World                         -               -          (27)
    Total for Innovene operations         -               -          (96)
    Total for period                  7,054           5,466        8,415
    By geographical area
    UK                                1,052           2,150          779
    Rest of Europe                    1,061             609          865
    US                                1,756             230        3,071
    Rest of World                     3,185           2,477        3,796
    Total for continuing operations   7,054           5,466        8,511



                       Analysis of Non-operating Items

                                           First   Fourth     First
                                         Quarter  Quarter   Quarter
                                            2007     2006      2006
    $ million
    By business

    Exploration and Production
    Impairment and gain (loss) on sale
     of businesses and fixed assets          603       16         9
    Environmental and other provisions         -        -         -
    Restructuring, integration and
     rationalization costs                     -        -         -
    Fair value gain (loss) on
     embedded derivatives                    145      240      (395)
    Other                                      -     (433)        -
                                             748     (177)     (386)
    Refining and Marketing
    Impairment and gain (loss) on sale
     of businesses and fixed assets         (179)      51       564
    Environmental and other provisions         -        -         -
    Restructuring, integration and
     rationalization costs                     -        -         -
    Fair value gain (loss) on
     embedded derivatives                      -        -         -
    Other                                    (50)    (104)        -
                                            (229)     (53)      564
    Gas, Power and Renewables
    Impairment and gain (loss) on sale
     of businesses and fixed assets            2      159         -
    Environmental and other provisions         -        -         -
    Restructuring, integration and
     rationalization costs                     -        -         -
    Fair value gain (loss) on
     embedded derivatives                      7       56       (55)
    Other                                      -        -         -
                                               9      215       (55)
    Other businesses and corporate
    Impairment and gain (loss) on
     sale of businesses and fixed assets      31       14         1
    Environmental and other provisions         -       (2)        -
    Restructuring, integration and
     rationalization costs                     -        -         -
    Fair value gain (loss) on
     embedded derivatives                      3        -         8
    Other                                      -     (200)        -
                                              34     (188)        9

    Total before taxation for
     continuing operations                   562     (203)      132
    Taxation credit (charge)                (199)      51       (46)
    Total after taxation for
     continuing operations                   363     (152)       86
    Innovene operations
    Total before taxation for
     Innovene operations (a)                   -        -
       (96)
    Taxation credit (charge)                   -        -        (7)
    Total after taxation for
     Innovene operations                       -        -      (103)
    Total after taxation for period          363     (152)      (17)

     (a)  Loss on remeasurement to fair value in the first quarter of 2006.



                        Realizations and Marker Prices

                                      First          Fourth        First
                                    Quarter         Quarter      Quarter
                                       2007            2006         2006
    Average realizations (a)

    Liquids ($/bbl) (b)
    UK                                55.42           56.18        60.00
    US                                51.62           52.11        53.79
    Rest of World                     54.09           54.63        55.02
    BP Average                        53.43           54.13        55.88
    Natural gas ($/mcf)
    UK                                 7.28            5.61         7.87
    US                                 5.76            5.03         6.91
    Rest of World                      3.90            3.70         3.94
    BP Average                         4.86            4.38         5.54

    Average oil marker prices ($/bbl)
    Brent                             57.76           59.60        61.79
    West Texas Intermediate           58.05           59.90        63.29
    Alaska North Slope US West Coast  55.78           55.47        60.89
    Urals (NWE- cif)                  54.36           56.06        58.15
    Urals (Med- cif)                  54.26           56.48        58.26
    Russian domestic oil              27.33           26.33        35.27
    Average natural gas marker prices

    Henry Hub gas price ($/mmbtu) (c)  6.77            6.56         9.01
    UK Gas - National Balancing
     Point (p/therm)                  22.33           29.92        70.00

     (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 on the basis of
        International Financial Reporting Standards (IFRS) as adopted for use
        by the European Union.  The financial information presented herein has
        been prepared in accordance with the accounting policies expected to
        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.  Changes to comparatives

        In 2005 the basis of accounting for over-the-counter forward sale and
        purchase contracts for oil, natural gas, NGLs and power was changed.
        Certain transactions are now reported on a net basis in sales and
        other operating revenues, whereas previously they had been reported
        gross in sales and purchases. This change, while reducing sales and
        other operating revenues and purchases, had no impact on reported
        profit, profit per ordinary share, cash flow or the balance sheet.

        During 2006, as part of a continuous process to review how individual
        contracts are accounted for, certain other minor adjustments were
        identified that should have been reflected in the restatement from
        gross to net presentation.  Though these adjustments are not
        significant to the group income statement, the amendment has been made
        to bring the comparatives onto a consistent basis.  The comparative
        figures have been amended to reflect these items as set out below.


                                                Amended     Reported
                                                  First        First
                                                Quarter      Quarter
                                                   2006         2006
        $ million
        Sales and other operating revenues
        Exploration and Production               13,918       13,918
        Refining and Marketing                   54,537       56,605
        Gas, Power and Renewables                 6,553        8,279
        Other businesses and corporate              206          206
                                                 75,214       79,008
        Less: sales between businesses           11,926       11,926
        Total third party sales                  63,288       67,082

        Purchases                                43,819       47,613

    3.  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.  First quarter 2006 included
        a loss of $103 million related to post-closing adjustments.


                                                First     Fourth        First
                                              Quarter    Quarter      Quarter
                                                 2007       2006         2006
        $ million

        Loss recognized on the remeasurement
         to fair value                             -          -          (96)
        Taxation                                   -          -           (7)
        Profit (loss) from Innovene operations     -          -         (103)
        Earnings (loss) per share from
         Innovene operations - cents
        Basic                                      -          -        (0.50)
        Diluted                                    -          -        (0.50)



                                    Notes

    4.  Sales and other operating revenues

                                          First          Fourth        First
                                        Quarter         Quarter      Quarter
                                           2007            2006         2006
        $ million
        By business
        Exploration and Production       12,219          12,255       13,918
        Refining and Marketing           53,119          53,776       54,537
        Gas, Power and Renewables         5,613           5,224        6,553
        Other businesses and corporate      206             339          206
                                         71,157          71,594       75,214
        Less: sales between businesses    9,850           9,648       11,926
        Total third party sales          61,307          61,946       63,288

        By geographical area
        UK                               24,055          23,676       27,733
        Rest of Europe                   16,588          18,576       18,374
        US                               23,034          23,368       22,066
        Rest of World                    16,844          16,768       18,375
                                         80,521          82,388       86,548
        Less: sales between areas        19,214          20,442       23,260
        Total third party sales          61,307          61,946       63,288

    5.  Profit before interest and taxation is after charging:

                                          First          Fourth        First
                                        Quarter         Quarter      Quarter
                                           2007            2006         2006
        $ million
        Production and similar taxes
        UK                                   67            (143)         235
        Overseas                            680             775          697
                                            747             632          932

    6.  Finance costs

                                          First          Fourth        First
                                        Quarter         Quarter      Quarter
                                           2007            2006         2006
        $ million
        Interest payable                    347             290          293
        Capitalized                         (83)            (85)        (102)
                                            264             205          191



                                    Notes

    7.  Other finance income

                                                 First    Fourth     First
                                               Quarter   Quarter   Quarter
                                                  2007      2006      2006
        $ million
        Interest on pension and other post-
         retirement benefit plan liabilities       538       496       471
        Expected return on pension and other
         post-retirement benefit plan assets      (698)     (619)     (582)
        Interest net of expected
         return on plan assets                    (160)     (123)     (111)
        Unwinding of discount on provisions         67        67        54
        Unwinding of discount on deferred
         consideration for acquisition
         of investment in TNK-BP                     -         -         9
                                                   (93)      (56)      (48)

    8.  Analysis of changes in net debt

                                                 First    Fourth     First
                                               Quarter   Quarter   Quarter
                                                  2007      2006      2006
        $ million
        Opening balance
        Finance debt                            24,010    19,973    19,162
        Less:  Cash and cash equivalents         2,590     3,199     2,960

        Opening net debt                        21,420    16,774    16,202

        Closing balance
        Finance debt                            23,728    24,010    18,679
        Less:  Cash and cash equivalents         1,956     2,590     2,939
        Closing net debt                        21,772    21,420    15,740

        Decrease (increase) in net debt           (352)   (4,646)      462

        Movement in cash and cash equivalents
         (excluding exchange adjustments)         (645)     (659)      (35)
        Net cash outflow (inflow) from financing
         (excluding share capital)                 334    (3,689)      379
        Fair value hedge adjustment                (30)     (208)       82
        Debt acquired                                -       (13)        -
        Other movements                            (11)      (57)       32
        Movement in net debt before
         exchange effects                         (352)   (4,626)      458
        Exchange adjustments                         -       (20)        4

        Decrease (increase) in net debt           (352)   (4,646)      462



                                    Notes

    9.  TNK-BP Operational and Financial Information

                                         First          Fourth        First
                                       Quarter         Quarter      Quarter
                                          2007            2006         2006
        Production (Net of royalties)
         (BP share)

        Crude oil (mb/d)                   832             837          896
        Natural gas (mmcf/d)               566             602          567
        Total hydrocarbons (mboe/d) (a)    930             941          994

        $ million

        Income statement (BP share)

        Profit before interest and tax     356             359          852
        Interest expense (+)               (61)            (52)         (43)
        Taxation                          (103)           (118)        (350)
        Minority interest                  (30)             (6)         (41)
        Net Income                         162             183          418

        (+) Excludes unwinding of discount
            on deferred consideration        -               -            9

        Cash Flow
        Dividends received (b)               -             500          771


        Balance Sheet                                 31 March    31 December
                                                          2007           2006
        Investments in jointly controlled entities       8,381          8,353


        (a)  Natural gas is converted to oil equivalent at 5.8 billion cubic
             feet = 1 million barrels.
        (b)  First quarter 2006 includes $771 million declared in fourth
             quarter 2005.

    10.  Second quarter results

         BP's second quarter results will be announced on 24 July 2007.

    11.  Statutory accounts

         The financial information shown in this publication is unaudited and
         does not constitute statutory financial statements.  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.

    




For further information:

For further information: Press Office, London - Roddy Kennedy, +44 (0)20
 7496 4624; United States - Ronnie Chappell, +1-281-366-5174; Investor
Relations,  London - Fergus MacLeod, +44 (0)20 7496 4717; United States -
Rachael MacLean,  +1-212-451-8072 Web Site: http://www.bp.com                
 http://www.bp.com/investors

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