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




    LONDON, Oct. 23 /CNW/ --
    
    (Logo:  http://www.newscom.com/cgi-bin/prnh/20000724/NYM120LOGO)


       Third   Second     Third
      Quarter  Quarter   Quarter                            Nine Months
       2006      2007      2007   $ million            2007     2006     %
                                  Profit for the
       6,231    7,376     4,406   period(*)           16,446   19,120
                                  Inventory
                                  holding (gains)
         744   (1,289)     (539)  losses            (2,131)    (762)



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



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

    The commentaries above and following are based on replacement cost profit
and should be read in conjunction with the cautionary statement on page 11.

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


        Third     Second     Third
       Quarter    Quarter   Quarter                           Nine Months
         2006       2007      2007   $ million              2007        2006
                                     Exploration and
         9,935     6,893     6,343   Production           19,279      24,584
                                     Refining and
         1,503     2,740       376   Marketing             3,954       4,971
                                     Gas, Power and
           152       190       (57)  Renewables              339         906
                                     Other businesses
          (261)     (164)     (451)  and corporate          (731)       (671)
                                     Consolidation
           440       (69)       59   adjustments              73         155
                                     RC profit before
        11,769     9,590     6,270   interest and tax     22,914      29,945

                                     Finance costs and
                                     other finance
          (117)     (155)     (173)  income                 (499)       (367)
        (4,614)   (3,283)   (2,158)  Taxation             (7,881)    (10,984)
           (63)      (65)      (72)  Minority interest      (219)       (211)
                                     RC profit from
                                      continuing
                                      operations
                                      attributable to
         6,975     6,087     3,867    BP shareholders(a)  14,315      18,383

                                     Inventory holding
                                       gains (losses) for
                                       continuing
          (744)    1,289       539     operations          2,131         762
                                     Profit for the
                                      period from
                                      continuing
                                      operations
                                      attributable to
         6,231     7,376     4,406    BP shareholders     16,446      19,145
                                     Profit (loss) for
                                      the period from
                                      Innovene
             -         -         -    operations(b)            -         (25)
                                      Profit for the
                                      period
                                      attributable to
         6,231     7,376     4,406    BP shareholders     16,446      19,120

                                     RC profit from
                                      continuing
                                      operations
                                      attributable
         6,975     6,087     3,867    to BP shareholders  14,315      18,383
                                     RC profit (loss)
                                      from Innovene
             -         -         -    operations               -         (25)
                                      Replacement cost
         6,975     6,087     3,867    profit              14,315      18,358



     (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 2.

                     Results include Non-operating Items


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


        2,466      399        22   Exploration and             1,169   2,559
                                   Production
         (431)     767      (344)  Refining and Marketing        194    (331)
          (85)     (36)       (8)  Gas, Power and                (35)    (34)
                                   Renewables
           78        7      (205)  Other businesses and         (164)    113
                                   corporate
        2,028    1,137      (535)                             1,164    2,307
         (803)    (396)      189   Taxation(a)                  (406)   (902)
        1,225      741      (346)  Continuing operations         758   1,405



            -        -         -   Innovene operations             -    (184)
            -        -         -   Taxation                        -      (7)
        1,225      741      (346)  Total for all operations      758    1,214


    An analysis of non-operating items by type is provided on page 21.


    (a) Tax on non-operating items is calculated using the quarter's
        effective tax rate on replacement cost profit from continuing
        operations.


                              Per Share Amounts


       Third      Second        Third
      Quarter     Quarter      Quarter                        Nine Months
       2006        2007          2007                     2007         2006
                                         Results for
                                         the period
                                         ($m)
         6,231      7,376        4,406   Profit(a)         16,446     19,120
                                         Replacement
         6,975      6,087        3,867   cost profit       14,315     18,358

                                         Shares in
                                         issue at
                                         period end

    19,815,830 19,133,973   19,019,579   (thousand)(b) 19,019,579 19,815,830
                                         - ADS
                                         equivalent
     3,302,638  3,188,996    3,169,930   (thousand)(b)  3,169,930  3,302,638
                                         Average
                                         number of
                                         shares
                                         outstanding

    19,818,106 19,186,461   19,061,853   (thousand)(b) 19,209,757 20,167,945
                                         - ADS
                                         equivalent
     3,303,018  3,197,744    3,176,976   (thousand)(b)  3,201,626  3,361,324
                                         Shares
                                         repurchased
                                         in the period
       299,155    175,806      128,253   (thousand)      541,975   1,023,978



                                         Per ordinary
                                         share (cents)
                                         Profit for
         31.46      38.37        23.18   the period         85.61      94.80
                                         RC profit for
         35.08      31.67        20.34   the period         74.51      91.02


                                         Per ADS
                                         (cents)
                                         Profit for
        188.76     230.22       139.08   the period        513.66     568.80
                                         RC profit for
        210.48     190.02       122.04   the period        447.06     546.12

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


                                  Dividends


                              Dividends Payable
    

    BP today announced a dividend of 10.825 cents per ordinary share to be
paid in December. Holders of ordinary shares will receive 5.308 pence per
share and holders of American Depository Receipts (ADRs) $0.6495 per ADS. The
dividend is payable on 3 December to shareholders on the register on 9
November. 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 3 December.


    Dividends Paid

    
       Third    Second    Third
      Quarter  Quarter   Quarter                              Nine Months
       2006      2007      2007                             2007       2006
                                  Dividends paid per
                                  ordinary share
       9.825    10.325    10.825      Cents                31.475     28.575
       5.324     5.151     5.278      Pence                15.687     15.863
                                  Dividends paid per
       58.95     61.95     64.95  ADS (cents)              188.85     171.45




                 Net Debt Ratio - Net Debt: Net Debt + Equity


       Third     Second    Third
       Quarter   Quarter   Quarter                            Nine Months
       2006       2007      2007   $ million               2007       2006
       19,973    23,754    25,245   Gross debt             25,245     19,973
                                    Cash and cash
        3,199     2,643     2,410   equivalents             2,410      3,199
       16,774    21,111    22,835   Net debt               22,835     16,774
       85,070    89,423    91,494   Equity                 91,494     85,070
          16%       19%       20%   Net debt ratio            20%        16%


                          Exploration and Production


        Third     Second   Third
        Quarter   Quarter  Quarter                             Nine Months
         2006      2007      2007  $ million                 2007       2006
                                   Profit before
          9,929   6,894     6,347  interest and tax(a)     19,295     24,572
                                   Inventory holding
              6      (1)       (4) (gains) losses             (16)        12
                                   Replacement cost
                                   profit before
                                   interest
          9,935   6,893     6,343  and tax                 19,279     24,584



                                   By region:
          1,306   1,113       703  UK                       2,878      4,305
            264     183       221  Rest of Europe           1,124        960
          3,827   2,038     1,843  US                       5,533      8,392
          4,538   3,559     3,576  Rest of World            9,744     10,927
          9,935   6,893     6,343                          19,279     24,584



                                   Results include:
                                   Non-operating items
            540     187        33  UK                         365        532
            (27)     (2)        7  Rest of Europe             538         56
          2,016     177       (15) US                         154      2,027
            (63)     37        (3) Rest of World              112        (56)
          2,466     399        22                           1,169      2,559



                                   Exploration expense
              7       7         2  UK                          29         14
              -       -         -  Rest of Europe               -          -
            188      54        60  US                         191        309
            156      94       182  Rest of World              335        314
            351     155       244                             555        637



                                   Production (net of
                                   royalties)(b)
                                   Liquids (mb/d) (net
                                   of royalties)(c)
            213     218       151  UK                         202        258
             58      43        52  Rest of Europe              52         63
            523     532       475  US                         510        551
          1,628   1,656     1,614  Rest of World            1,632      1,623
          2,422   2,449     2,292                           2,396      2,495



                                   Natural gas (mmcf/d)
                                   (net of royalties)
            754     731       582  UK                         739        952
            100      22        26  Rest of Europe              30         92
          2,332   2,165     2,186  US                       2,171      2,436
          4,900   4,941     5,085  Rest of World            5,138      4,991
          8,086   7,859     7,879                           8,078      8,471



                                   Total hydrocarbons
                                   (mboe/d)(d)
            343     344       251  UK                         329        422
             75      47        57  Rest of Europe              57         78
            925     905       851  US                         885        971
          2,473   2,508     2,492  Rest of World            2,517      2,483
          3,816   3,804     3,651                           3,788      3,954



                                   Average
                                   realizations(e)
                                   Total liquids
          64.15   62.58     71.12  ($/bbl)                  62.00      60.91
           4.49    4.45      3.93  Natural gas ($/mcf)       4.42       4.83
                                   Total hydrocarbons
          45.47   44.97     46.36  ($/boe)                  44.05      44.74



     (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.
     (f) Because of rounding, some totals may not agree exactly with the sum
         of their component parts.



                          Exploration and Production
    

    The replacement cost profit before interest and tax for the third quarter
was $6,343 million, a decrease of 36% from the third quarter of 2006. The
result benefited from higher liquids realizations, but was impacted by lower
gas realizations, lower reported volumes and higher costs. In addition, the
result was lower due to the absence of significant gains from non-operating
items in the third quarter of 2006 (see below) and the absence of disposal
gains in equity-accounted entities, primarily the $892 million gain on TNK-
BP's disposal of the Urdmurtneft assets.
    The net non-operating gain in the third quarter of 2007 was $22 million
which included gains on the sale of assets and fair value gains on embedded
derivatives relating to North Sea gas contracts, partially offset by an
impairment charge relating to a gas plant in the US. This compares with a net
non-operating gain of $2,466 million in the third quarter of 2006, which was
primarily comprised of disposal gains.
    The replacement cost profit before interest and tax of $19,279 million
for the first nine months represents a decrease of 22% over the same period of
the previous year. This result was impacted by lower gas realizations as well
as lower reported volumes and higher costs, reflecting sector-specific
inflation, increased integrity spend and higher depreciation charges. The
nine-months result included a net non-operating gain of $1,169 million
compared with a net non-operating gain of $2,559 million in the equivalent
period of 2006.
    Reported production for the third quarter and the first nine months was
3,651mboe/d and 3,788mboe/d respectively, 4% lower than in the equivalent
periods of 2006. After adjusting for the effect of disposals, entitlement
changes in our production-sharing agreements and the impact of the CATS
pipeline incident in the North Sea, production in both the third quarter and
the first nine months was broadly flat compared with 2006. Full year
production in 2007 is expected to be in the range of 3.8 to 3.9mmboe/d, in
line with the guidance provided earlier in the year.
    During the quarter, we were the highest bidder for 91 blocks in the
Western Gulf of Mexico lease sale and we were awarded two new exploration
licences in Colombia. Additionally, in early October we participated in the
Central Gulf of Mexico lease sale, where we were highest bidder for 83 blocks.
    Our major projects are progressing well. In October, we had first oil
from Greater Plutonio in Angola, where BP holds a 50% working interest. In the
Gulf of Mexico we have started commissioning the Atlantis field.

    
                            Refining and Marketing


        Third    Second     Third
       Quarter   Quarter   Quarter                             Nine Months
         2006    2007        2007  $ million                 2007       2006
                                   Profit before
           717   3,981        936  interest and tax(a)      6,046      5,747
                                   Inventory holding
           786  (1,241)      (560) (gains) losses          (2,092)      (776)
                                   Replacement cost
                                   profit before
         1,503   2,740        376  interest and tax         3,954      4,971
                                   By region:
           138     963         22  UK                         975        161
           765     584        492  Rest of Europe           1,374      1,913
           388     964       (527) US                         559      1,774
           212     229        389  Rest of World            1,046      1,123
         1,503   2,740        376                           3,954      4,971
                                   Results include:
                                   Non-operating items
           (27)    844         (4) UK                         677         (8)
           (18)    (44)       (16) Rest of Europe             (72)       182
          (264)    170       (316) US                        (204)      (614)
          (122)   (203)        (8) Rest of World             (207)       109
          (431)    767       (344)                            194       (331)
                                   Refinery throughputs
                                   (mb/d)
           200     123          -  UK                          90        158
           622     700        735  Rest of Europe             691        644
         1,213     996      1,109  US                       1,086      1,130
           252     309        304  Rest of World              302        268
         2,287   2,128      2,148  Total throughput         2,169      2,200
                                   Refining availability
          82.2    82.7       83.4  (%)(b)                    82.6       83.2
                                   Oil sales volumes
                                   (mb/d)
                                   Refined products
           370     343        350  UK                         343        356
         1,367   1,271      1,329  Rest of Europe           1,282      1,331
         1,609   1,579      1,535  US                       1,559      1,613
           578     615        641  Rest of World              627        575
         3,924   3,808      3,855  Total marketing sales    3,811      3,875
         1,911   1,867      1,687  Trading/supply sales     1,860      1,932
                                   Total refined product
         5,835   5,675      5,542  sales                    5,671      5,807
         1,913   2,161      1,709  Crude oil                1,964      2,160
         7,748   7,836      7,251  Total oil sales          7,635      7,967
                                   Global Indicator
                                   Refining Margin
                                   ($/bbl)(c)
          4.54    7.12       3.82  NWE                       5.03       4.40
         11.47   24.46      12.58  USGC                     15.74      13.36
         11.50   26.05      14.31  Midwest                  16.02      10.38
         12.30   22.71       6.90  USWC                     17.22      14.93
          3.58    6.01       4.52  Singapore                 5.12       4.65
          8.40   16.66       8.05  BP Average               11.38       9.09
                                   Chemicals production
                                   (kte)
           230     246        237  UK                         739        831
           776     655        587  Rest of Europe           1,990      2,359
           883   1,047      1,117  US                       3,240      2,488
         1,682   1,497      1,569  Rest of World            4,586      5,097
         3,571   3,445      3,510  Total production        10,555     10,775



     (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 third quarter
and nine months was $376 million and $3,954 million respectively. The results
in the equivalent periods of 2006 were $1,503 million and $4,971 million
respectively.
    The third-quarter result included a net non-operating charge of $344
million which was primarily comprised of charges in respect of new, and
revisions to existing, provisions. The nine-months result included a net non-
operating gain of $194 million.
    Compared with the third quarter of 2006, realized refining margins were
lower due to the effects of narrowing light heavy crude differentials,
particularly in the US. Marketing margins remained robust although they were
lower than the exceptionally strong margins of a year ago. Relative to 2006,
both refining and marketing margins were stronger in the first nine months of
2007. Compared with the equivalent periods of 2006, both the current quarter
and nine-months results reflected the adverse impact of operational issues,
particularly at the Whiting refinery, and scheduled turnarounds, along with
reduced supply optimization benefits and higher integrity and repair costs.

    Information on fair value accounting effects is set out on page 10.

    Refining throughputs for the quarter and nine months were 2,148mb/d and
2,169mb/d respectively, compared with 2,287mb/d and 2,200mb/d for the same
periods last year. The lower throughputs were mainly due to the disposal of
Coryton refinery on 31 May 2007 and lower availability at the Whiting
refinery, partially offset by the benefits of the ongoing recommissioning at
the Texas City refinery and the acquisition of the remaining interests in the
Rotterdam refinery.
    Marketing sales were 3,855mb/d for the quarter and 3,811mb/d for the nine
months, slightly lower than the comparative periods in the previous year,
mainly due to lower European heating oil demand as a result of milder weather.
    Refining availability, at 83.4%, improved for the third successive
quarter. We continue to make progress in the recommissioning of both the Texas
City and Whiting refineries. In line with our prior guidance, by the end of
the fourth quarter of 2007 we expect available production capacity to reach
400mb/d and 300mb/d at Texas City and Whiting respectively, with sour crude
processing having resumed at Whiting. We expect to restore both refineries to
their full crude capacity and flexibility in the first half of 2008.


    
                          Gas, Power and Renewables

        Third     Second     Third
        Quarter   Quarter   Quarter                             Nine Months
         2006       2007      2007  $ million                  2007     2006
                                    Profit before
            152      235       (71) interest and tax(a)         370      853
                                    Inventory holding
              -      (45)       14  (gains) losses              (31)      53
                                    Replacement cost
                                    profit before
                                    interest
            152      190       (57)   and tax                   339      906
                                    By region:
           (46)      (38)      (85) UK                          (75)      70
            (17)      (8)      (37) Rest of Europe              (38)     (20)
            150      102       (23) US                          105      578
             65      134        88  Rest of World               347      278
            152      190       (57)                             339      906
                                    Results include:
                                    Non-operating items
           (20)      (38)      (12) UK                          (43)      32
              -        -         -  Rest of Europe                -        -
              5        1         4  US                            6        4
            (70)       1         -  Rest of World                 2      (70)
            (85)     (36)       (8)                             (35)     (34)

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

    The replacement cost loss before interest and tax for the third quarter
was $57 million compared with a profit of $152 million in the same period of
2006. The replacement cost profit before interest and tax for the nine months
was $339 million compared with $906 million in the same period of 2006.
Included in the result for the quarter was a net charge for non-operating
items of $8 million primarily arising from fair value losses on embedded
derivatives related to long-term gas contracts. The corresponding quarter of
2006 included a net non-operating charge of $85 million.
    The third-quarter result decreased by more than $200 million over the
third quarter of 2006. This reflected a significant reduction in the
contribution from the marketing and trading businesses, lower natural gas
liquids volumes and higher Alternative Energy expenditure, partly offset by
improved margins in the natural gas liquids business and a lower charge
related to non-operating items. The nine-months result was lower than the same
period in 2006, largely reflecting weaker contributions from the marketing and
trading businesses and higher expenditure in the Alternative Energy business.

    Information on fair value accounting effects is set out on page 10.


    
                        Other Businesses and Corporate

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

                                     Profit (loss) before
          (213)     (162)      (462) interest and tax(a)       (739)    (620)
                                     Inventory holding
           (48)       (2)        11  (gains) losses               8      (51)
                                     Replacement cost
                                     profit (loss) before
          (261)     (164)      (451) interest and tax          (731)    (671)
                                     By region:
          (327)      (25)       124  UK                          53     (548)
             9        (2)       (77) Rest of Europe             (58)     (40)
            35      (112)      (359) US                        (585)    (106)
            22       (25)      (139) Rest of World             (141)      23
          (261)     (164)      (451)                           (731)    (671)
                                     Results include:
                                     Non-operating items
           (25)        -          1  UK                           1      (25)
            (2)        -        (11) Rest of Europe              17       (3)
           105         7       (199) US                        (186)     124
             -         -          4  Rest of World                4       17
            78         7       (205)                           (164)     113

     (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 third
quarter's result included a net charge of $205 million in respect of non-
operating items which was primarily comprised of new, and revisions to
existing, provisions.

    Information on fair value accounting effects

    BP uses derivative instruments to manage the economic exposure relating
to inventories above normal operating requirements of crude oil, natural gas
and petroleum products as well as certain contracts to supply physical volumes
at future dates. Under IFRS, these inventories and contracts are recorded at
historic cost and on an accruals basis respectively. The related derivative
instruments, however, are required to be recorded at fair value with gains and
losses recognized in income because hedge accounting is either not permitted
or not followed, principally due to the impracticality of effectiveness
testing requirements. Therefore, measurement differences in relation to
recognition of gains and losses occur. Gains and losses on these inventories
and contracts are not recognized until the commodity is sold in a subsequent
accounting period. Gains and losses on the related derivative commodity
contracts are recognized in the income statement from the time the derivative
commodity contract is entered into on a fair value basis using forward prices
consistent with the contract maturity.
    IFRS requires that inventory held for trading be recorded at its fair
value using period end spot prices whereas any related derivative commodity
instruments are required to be recorded at values based on forward prices
consistent with the contract maturity. Depending on market conditions, these
forward prices can be either higher or lower than spot prices resulting in
measurement differences.
    The Gas, Power and Renewables business enters into contracts for
pipelines and storage capacity which, under IFRS, are recorded on an accruals
basis. These contracts are risk managed using a variety of derivative
instruments which are fair valued under IFRS. This results in measurement
differences in relation to recognition of gains and losses.
    The way that BP manages the economic exposures described above, and
measures performance internally, differs from the way these activities are
measured under IFRS. BP calculates this difference by comparing the IFRS
result with management's internal measure of performance, under which the
inventory and the supply and capacity contracts in question are valued based
on fair value using relevant forward prices prevailing at the end of the
period. We believe that disclosing management's estimate of this difference
provides useful information for investors because it enables investors to see
the economic effect of these activities as a whole. The impacts of fair value
accounting effects, relative to management's internal measure of performance,
are shown in the table below. Information for all quarters of 2005 and 2006
can be found at www.bp.com/FVAE.

    
         Third     Second      Third
        Quarter    Quarter    Quarter                          Nine Months
         2006        2007       2007  $ million              2007       2006
                                      Refining and
                                      Marketing
                                      Unrecognized gains
                                      (losses) brought
                                      forward from
           332        611        274  previous period          72        283
                                      Unrecognized
                                      (gains) losses
           252       (274)      (367) carried forward        (367)       252
                                      Favourable/(unfavo
                                      urable) impact
                                      relative to
                                      management's
                                      measure of
           584        337        (93) performance            (295)       535

                                      Gas, Power and
                                      Renewables
                                      Unrecognized gains
                                      (losses) brought
                                      forward from
           376        124        198  previous period         155        123
                                      Unrecognized
                                      (gains) losses
          (399)      (198)      (234) carried forward        (234)      (399)
                                      Favourable/(unfavo
                                      urable) impact
                                      relative to
                                      management's
                                      measure of
           (23)       (74)       (36) performance             (79)      (276)
           561        263       (129)                        (374)       259
          (222)       (92)        46  Taxation(a)             134       (116)
           339        171        (83)                        (240)       143
                                      By region
                                      Refining and
                                      Marketing
           111         83         45  UK                      (53)       136
           156         48          2  Rest of Europe         (115)       161
           315        174       (142) US                     (133)       244
             2         32          2  Rest of World             6         (6)
           584        337        (93)                        (295)       535

                                      Gas, Power and
                                      Renewables
           (48)        (4)       (22) UK                       12        (12)
             -          -          -  Rest of Europe            -          -
            14        (71)       (19) US                      (96)      (250)
            11          1          5  Rest of World             5        (14)
           (23)       (74)       (36)                         (79)      (276)



     (a) Tax is calculated using the quarter's effective tax rate on
         replacement cost profit from continuing operations.
    

    The amounts shown in the table above, in respect of comparative periods
for the Refining and Marketing segment, have been revised from those disclosed
previously. The revisions reflect changes in the basis for valuation of
certain forward supply contracts to be consistent with the method used for
other forward supply contracts when calculating management's internal measure
of performance. The changes to comparative figures are not material in
relation to management's internal measure of the Refining and Marketing
segment's performance. The changes have no impact on the results reported
under IFRS.
    Cautionary Statement: The foregoing discussion contains forward looking
statements particularly those regarding production and refining production and
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 (including
inflation); political stability and economic growth in relevant areas of the
world; changes in laws and governmental regulations and quotas; 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


       Third    Second     Third
      Quarter   Quarter   Quarter                             Nine Months
       2006       2007      2007                            2007      2006
              $ million                                        $ million
                                  Sales and other
                                  operating revenues
       68,540   71,872     71,334 (Note 3)                 204,513   203,960
                                  Earnings from jointly
                                  controlled entities -
                                  after
        1,878      910        900 interest and tax           2,143     3,269
                                  Earnings from
                                  associates - after
           88      173        204 interest and tax             540       317
                                  Interest and other
          220      128        172 revenues                     533       524
       70,726   73,083     72,610 Total revenues           207,729   208,070
                                  Gain on sale of
                                  businesses and fixed
        2,276    1,309        228 assets                     2,217     3,414
                                  Total revenues and
       73,002   74,392     72,838 other income             209,946   211,484



       48,431   49,983     51,810 Purchases                144,453   142,677
                                  Production and
        6,275    6,276      6,297 manufacturing expenses    18,325    17,368
                                  Production and similar
        1,202      827        921 taxes (Note 4)             2,495     2,989
                                  Depreciation,
                                  depletion and
        2,194    2,535      2,505 amortization               7,559     6,687
                                  Impairment and losses
                                  on sale of businesses
                                  and
          387      455        129 fixed assets                 807       489
          351      155        244 Exploration expense          555       637
                                  Distribution and
                                  administration
        3,630    3,565      4,137 expenses                  11,159    10,242
                                  Fair value (gain) loss
                                  on embedded
         (493)    (283)       (14)derivatives                 (452)     (312)
                                  Profit before interest
                                  and taxation from
                                  continuing
       11,025   10,879      6,809 operations                25,045    30,707
          169      251        262 Finance costs (Note 5)       777       513
                                  Other finance income
          (52)     (96)       (89)(Note 6)                    (278)     (146)
                                  Profit before taxation
                                  from continuing
       10,908   10,724      6,636 operations                24,546    30,340
        4,614    3,283      2,158 Taxation                   7,881    10,984
                                  Profit from continuing
        6,294    7,441      4,478 operations                16,665    19,356
                                  Profit (loss) from
                                  Innovene operations
            -        -          - (Note 2)                       -       (25)
        6,294    7,441      4,478 Profit for the period     16,665    19,331
                                  Attributable to:
        6,231    7,376      4,406 BP shareholders           16,446    19,120
           63       65         72 Minority interest            219       211
        6,294    7,441      4,478                           16,665    19,331
                                  Earnings per share -
                                  cents
                                  Profit for the period
                                  attributable to BP
                                  shareholders
        31.46    38.37      23.18 Basic                      85.61     94.80
        31.40    38.18      23.07 Diluted                    85.19     94.12
                                  Profit from continuing
                                  operations
                                  attributable to
                                  BP shareholders
        31.46    38.37      23.18 Basic                      85.61     94.93
        31.40    38.18      23.07 Diluted                    85.19     94.24




                        Summarized Group Balance Sheet


                                                     30 September 31 December
                                                         2007         2006
                                                             $ million
    Non-current assets
    Property, plant and equipment                        96,934       90,999
    Goodwill                                             11,138       10,780
    Intangible assets                                     5,971        5,246
    Investments in jointly controlled entities           15,350       15,074
    Investments in associates                             5,994        5,975
    Other investments                                     1,650        1,697
    Fixed assets                                        137,037      129,771
    Loans                                                 1,016          817
    Other receivables                                       979          862
    Derivative financial instruments                      3,105        3,025
    Prepayments and accrued income                        1,031        1,034
    Defined benefit pension plan surplus                  7,596        6,753
                                                        150,764      142,262
    Current assets
    Loans                                                   166          141
    Inventories                                          21,784       18,915
    Trade and other receivables                          39,418       38,692
    Derivative financial instruments                      7,326       10,373
    Prepayments and accrued income                        3,497        3,006
    Current tax receivable                                  246          544
    Cash and cash equivalents                             2,410        2,590
                                                         74,847       74,261
    Assets classified as held for sale                        -        1,078
                                                         74,847       75,339
    Total assets                                        225,611      217,601
    Current liabilities
    Trade and other payables                             42,649       42,236
    Derivative financial instruments                      6,954        9,424
    Accruals and deferred income                          6,522        6,147
    Finance debt                                         12,789       12,924
    Current tax payable                                   2,995        2,635
    Provisions                                            1,896        1,932
                                                         73,805       75,298
    Liabilities directly associated with the
    assets classified as held for sale                        -           54
                                                         73,805       75,352
    Non-current liabilities
    Other payables                                        1,176        1,430
    Derivative financial instruments                      3,685        4,203
    Accruals and deferred income                            988          961
    Finance debt                                         12,456       11,086
    Deferred tax liabilities                             19,072       18,116
    Provisions                                           13,211       11,712
    Defined benefit pension plan and other
      post-retirement benefit plan deficits               9,724        9,276
                                                         60,312       56,784
    Total liabilities                                   134,117      132,136
    Net assets                                           91,494       85,465
    Equity
    BP shareholders' equity                              90,541       84,624
    Minority interest                                       953          841
                                                         91,494       85,465




               Group Statement of Recognized Income and Expense


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

                                     Currency translation
            531      621        788  differences             1,583       993
                                     Exchange gain on
                                     translation of
                                     foreign operations
                                     transferred to gain
                                     on sale of businesses
                                     and fixed
              -     (128)         -  assets                   (147)        -
                                     Available-for-sale
                                     investments marked to
            144        6         78  market                    (25)      297
                                     Available-for-sale
                                     investments -
                                     recycled to the
             (1)       -        (91) income statement          (91)     (426)
                                     Cash flow hedges
            (15)      13        139  marked to market          180       272
                                     Cash flow hedges -
                                     recycled to the
            (26)     (21)        (5) income statement          (86)       50
                                     Cash flow hedges -
                                     recycled to the
              5        -         (2) balance sheet              (9)        5
           (166)     105         90  Taxation                  118      (120)
                                     Net income recognized
            472      596        997  directly in equity      1,523     1,071
          6,294    7,441      4,478  Profit for the period  16,665    19,331
                                     Total recognized
                                     income and expense
                                     relating to   the
          6,766    8,037      5,475  period                 18,188    20,402
                                     Attributable to:
          6,703    7,967      5,372    BP shareholders      17,917    20,191
             63       70        103    Minority interest       271       211
          6,766    8,037      5,475                         18,188    20,402



                     Movement in BP Shareholders' Equity


                                                                  $ million
    Movement in BP shareholders' equity
    At 31 December 2006                                               84,624
    Profit for the period                                             16,446
    Distribution to shareholders                                      (6,050)
    Currency translation differences (net of tax)                      1,501
    Exchange gain on translation of foreign operations
      transferred to gain on sale (net of tax)                          (147)
    Share-based payments (net of tax)                                    696
    Repurchase of ordinary share capital                              (6,493)
    Available-for-sale investments (net of tax)                         (111)
    Cash flow hedges (net of tax)                                        104
    Other                                                                (29)
    At 30 September 2007                                              90,541




                     Summarized Group Cash Flow Statement


      Third    Second      Third
     Quarter   Quarter    Quarter                             Nine Months
       2006       2007       2007                           2007      2006
              $ million                                       $ million
                                    Operating activities
                                    Profit before
                                    taxation from
       10,908   10,724      6,636   continuing operations   24,546    30,340
                                    Adjustments to
                                    reconcile profits
                                    before tax to net
                                    cash provided by
                                    operating activities
                                    Exploration
                                    expenditure written
          232       60        146   off                        261       359
                                    Depreciation,
                                    depletion and
        2,194    2,535      2,505   amortization             7,559     6,687
                                    Impairment and (gain)
                                    loss on sale of
                                    businesses
       (1,889)    (854)       (99)  and fixed assets        (1,410)   (2,925)
                                    Earnings from jointly
                                    controlled entities
       (1,966)  (1,083)    (1,104)  and associates          (2,683)   (3,586)
                                    Dividends received
                                    from jointly
                                    controlled entities
        2,407      813      1,060   and associates           2,102     3,686
                                    Working capital and
       (6,756)  (6,109)    (2,788)  other movements         (9,955)  (11,359)
                                    Net cash provided by
                                    operating
        5,130    6,086      6,356   activities(a)           20,420    23,202
                                    Investing activities
       (3,945)  (4,334)    (4,336)  Capital expenditure    (12,315)  (10,652)
                                    Acquisitions, net of
         (102)    (111)       (27)  cash acquired           (1,225)     (102)
                                    Investment in jointly
            -      (12)      (122)  controlled entities       (143)      (26)
                                    Investment in
         (159)     (65)       (37)  associates                (146)     (467)
                                    Proceeds from
                                    disposal of fixed
        2,662      836        211   assets                   1,357     5,045
                                    Proceeds from
                                    disposal of
                                    businesses, net of
                                    cash
          135    1,905          -   disposed                 2,513       391
                                    Proceeds from loan
           33       33         45   repayments                 123       163
            -      374          -   Other                      374         -
                                    Net cash used in
       (1,376)  (1,374)    (4,266)  investing activities    (9,462)   (5,648)
                                    Financing activities
                                    Net repurchase of
       (3,430)  (1,918)    (1,441)  shares                  (5,761)  (11,702)
                                    Proceeds from long-
          706    1,513        107   term financing           2,978     1,616
                                    Repayments of long-



         (996)     (93)      (369)  term financing          (1,596)   (1,781)
                                    Net increase
                                    (decrease) in short-
          294   (1,499)     1,426   term debt                 (631)      525
                                    Dividends paid
       (1,943)  (1,983)    (2,066)      -BP shareholders    (6,050)   (5,759)
                                        -Minority
          (57)     (71)       (24)       interest             (159)     (211)
                                    Net cash used in
       (5,426)  (4,051)    (2,367)  financing activities   (11,219)  (17,312)
                                    Currency translation
                                    differences relating
                                    to cash
           19       26         44   and cash equivalents        81        (3)
                                    Increase (decrease)
                                    in cash and cash
       (1,653)     687       (233)  equivalents               (180)      239
                                    Cash and cash
                                    equivalents at
        4,852    1,956      2,643   beginning of period      2,590     2,960
                                    Cash and cash
                                    equivalents at end of
        3,199    2,643      2,410   period                   2,410     3,199

     (a) Net cash provided by operating activities is calculated from the
         starting point of profit before taxation which includes inventory
         holding gains and losses. Net cash provided by operating activities
         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 product prices.


                     Summarized Group Cash Flow Statement


       Third    Second      Third
      Quarter   Quarter    Quarter                             Nine Months
        2006       2007      2007                            2007      2006
               $ million                                        $ million
                                    Working capital and
                                    other movements
         (141)     (93)     (154)   Interest receivable       (342)     (393)
          120      103       152    Interest received          340       411
          169      251       262    Finance costs              777       513
         (267)    (335)     (300)   Interest paid             (968)     (928)
          (52)     (96)      (89)   Other finance income      (278)     (146)
          134      107       129    Share-based payments       311       339
                                    Net operating charge
                                    for pensions and
                                    other
                                    post-retirement
                                    benefits, less
          (36)     (31)      (61)   contributions             (179)     (133)
                                    Net charge for
                                    provisions, less
         (115)    (257)      362    payments                   (52)     (106)
                                    (Increase) decrease
        1,477     (683)     (803)   in inventories          (2,134)      134
                                    (Increase) decrease
                                    in other current and
                                    non-current
       (1,616)    (621)      956    assets                   3,474       727
                                    Increase (decrease)
                                    in other current and
                                    non-current
       (1,763)  (2,429)     (104)   liabilities             (4,533)   (1,735)
       (4,666)  (2,025)   (3,138)   Income taxes paid       (6,371)  (10,042)
       (6,756)  (6,109)   (2,788)                           (9,955)  (11,359)




                     Capital Expenditure and Acquisitions


       Third    Second     Third
      Quarter  Quarter    Quarter                              Nine Months
        2006      2007       2007                            2007      2006
               $ million                                       $ million
                                   By business



                                   Exploration and
                                   Production
          220     195        276   UK                          692       646
           52     108        122   Rest of Europe              317       195
        1,160   1,453      1,133   US                        3,636     3,371
        2,505   1,874      1,710   Rest of World(a)          5,222     5,409
        3,937   3,630      3,241                           9,867     9,621
                                   Refining and
                                   Marketing
           67      94        137   UK                          304       211
          149     266        379   Rest of Europe(b)         1,855       315
          289     380        466   US                        1,115       799
          117     118        155   Rest of World               353       333
          622     858      1,137                           3,627     1,658
                                   Gas, Power and
                                   Renewables
           17      12          6   UK                           25        24
            7       3          8   Rest of Europe(b)            18        19
          187     106         90   US                          232       239
            9      20         34   Rest of World                67        42
          220     141        138                             342       324
                                   Other businesses and
                                   corporate
           13      21         22   UK                           78        71
            -       -          -   Rest of Europe                2         -
           32      46         34   US                          112       120
            -       -          -   Rest of World                 -         -
           45      67         56                               192       191
        4,824   4,696      4,572                          14,028    11,794
                                   By geographical area
          317     322        441   UK                        1,099       952
          208     377        509   Rest of Europe            2,192       529
        1,668   1,985      1,723   US                        5,095     4,529
        2,631   2,012      1,899   Rest of World             5,642     5,784
        4,824   4,696      4,572                          14,028    11,794
                                   Included above:
                                   Acquisitions and
          106     332          2   asset exchanges(b)        1,447       116



     (a) Third quarter 2006 included $1 billion for the purchase of shares
         in Rosneft.
     (b) Nine months ended 30 September 2007 included $1,132 million for
         the acquisition of Chevron's Netherlands manufacturingcompany.


                                Exchange rates
                                US dollar/sterling average
         1.87    1.99    2.02   rate for the period             1.99    1.82
                                US dollar/sterling period-
         1.87    2.00    2.02   end rate                        2.02    1.87
                                US dollar/euro average
         1.27    1.35    1.37   rate for the period             1.34    1.24
         1.27    1.35    1.42   US dollar/euro period-end       1.42    1.27


                  Analysis of Profit Before Interest and Tax


        Third    Second      Third
       Quarter   Quarter    Quarter                            Nine Months
        2006       2007       2007                           2007      2006
               $ million                                       $ million
                                    By business


                                    Exploration and
                                    Production
         1,306    1,113       703   UK                       2,878     4,305
           264      183       221   Rest of Europe           1,124       960
         3,820    2,037     1,845   US                       5,545     8,379
         4,539    3,561     3,578   Rest of World            9,748    10,928
         9,929    6,894     6,347                           19,295    24,572
                                    Refining and
                                    Marketing
            46    1,028       (10)  UK                         954        57
           387    1,029       623   Rest of Europe           2,133     1,858
            65    1,631      (136)  US                       1,784     2,419
           219      293       459   Rest of World            1,175     1,413
           717    3,981       936                            6,046     5,747
                                    Gas, Power and
                                    Renewables
           (46)     (38)      (85)  UK                         (75)       70
           (15)      (7)      (37)  Rest of Europe             (37)      (10)
           141      124       (26)  US                         122       566
            72      156        77   Rest of World              360       227
           152      235       (71)                             370       853
                                    Other businesses and
                                    corporate
          (327)     (25)      124   UK                          53      (548)
            11       (1)      (78)  Rest of Europe             (58)      (35)
            81     (111)     (369)  US                        (593)      (60)
            22      (25)     (139)  Rest of World             (141)       23
          (213)    (162)     (462)                            (739)     (620)
        10,585   10,948     6,750                           24,972    30,552
                                    Consolidation
           440      (69)       59   adjustment                  73       155
                                    Total for continuing
        11,025   10,879     6,809   operations              25,045    30,707
                                    Innovene operations
             -        -         -   UK                           -      (145)
             -        -         -   Rest of Europe               -       (61)
             -        -         -   US                           -         1
             -        -         -   Rest of World                -        21
                                    Total for Innovene
             -        -         -   operations                   -      (184)
        11,025   10,879     6,809   Total for period        25,045    30,523
                                    By geographical area
           989    2,080       731   UK                       3,809     3,909
           695    1,213       718   Rest of Europe           3,176     2,749
         4,491    3,622     1,364   US                       6,918    11,453
         4,850    3,964     3,996   Rest of World           11,142    12,596
                                    Total for continuing
        11,025   10,879     6,809   operations              25,045    30,707




         Analysis of Replacement Cost Profit Before Interest and Tax


        Third     Second     Third
       Quarter    Quarter   Quarter                            Nine Months
        2006        2007       2007                          2007      2006
                $ million                                      $ million
                                     By business



                                     Exploration and
                                     Production
          1,306    1,113        703  UK                      2,878     4,305
            264      183        221  Rest of Europe          1,124       960
          3,827    2,038      1,843  US                      5,533     8,392
          4,538    3,559      3,576  Rest of World           9,744    10,927
          9,935    6,893      6,343                         19,279    24,584
                                     Refining and
                                     Marketing
            138      963         22  UK                        975       161
            765      584        492  Rest of Europe          1,374     1,913
            388      964       (527) US                        559     1,774
            212      229        389  Rest of World           1,046     1,123
          1,503    2,740        376                          3,954     4,971
                                     Gas, Power and
                                     Renewables
            (46)     (38)       (85) UK                        (75)       70
            (17)      (8)       (37) Rest of Europe            (38)      (20)
            150      102        (23) US                        105       578
             65      134         88  Rest of World             347       278
            152      190        (57)                           339       906
                                     Other businesses and
                                     corporate
           (327)     (25)       124  UK                         53      (548)
              9       (2)       (77) Rest of Europe            (58)      (40)
             35     (112)      (359) US                       (585)     (106)
             22      (25)      (139) Rest of World            (141)       23
           (261)    (164)      (451)                          (731)     (671)
         11,329    9,659      6,211                         22,841    29,790
                                     Consolidation
            440      (69)        59  adjustment                 73       155
                                     Total for continuing
         11,769    9,590      6,270  operations             22,914    29,945
                                     Innovene operations
              -        -          -  UK                          -      (145)
              -        -          -  Rest of Europe              -       (61)
              -        -          -  US                          -         1
              -        -          -  Rest of World               -        21
                                     Total for Innovene
              -        -          -  operations                  -      (184)
         11,769    9,590      6,270  Total for period       22,914    29,761
                                     By geographical area
          1,081    2,015        763  UK                      3,830     4,013
          1,069      766        590  Rest of Europe          2,417     2,789
          4,784    2,933        983  US                      5,672    10,787
          4,835    3,876      3,934  Rest of World          10,995    12,356
                                     Total for continuing
         11,769    9,590      6,270  operations             22,914    29,945




                       Analysis of Non-operating Items


     Third   Second    Third
    Quarter  Quarter  Quarter                                    Nine Months
     2006     2007     2007                                     2007     2006
          $ million                                              $ million
                              By business



                              Exploration and Production
                              Impairment and gain (loss) on sale
                               of businesses and
     1,962      100        1  fixed assets                       704   2,301
       (17)       -      (12) Environmental and other provisions (12)    (17)
                              Restructuring, integration and
         -        -      -     rationalization costs               -       -
                              Fair value gain (loss) on
       521      299       33   embedded derivatives              477     275
         -        -       -   Other                                -       -
     2,466      399       22                                   1,169   2,559
                              Refining and Marketing
                              Impairment and gain (loss)
                               on sale of businesses and
         2      767      105   fixed assets                      693     678
                              Environmental and
       (33)       -     (138)  other provisions                 (138)    (33)
                              Restructuring, integration and
         -        -       -    rationalization costs               -       -
                              Fair value gain (loss) on embedded
         -        -       -    derivatives                         -       -
      (400)       -     (311) Other                             (361)   (976)
      (431)     767     (344)                                    194    (331)
                              Gas, Power and Renewables
                              Impairment and gain (loss) on sale
       (65)     (13)       4   of businesses and fixed assets     (7)    (66)
         -        -        -  Environmental and other provisions   -       -
                              Restructuring, integration and
         -        -        -   rationalization costs               -       -
                              Fair value gain (loss) on
       (20)     (23)     (12)  embedded derivatives              (28)     32
         -        -        -  Other                                -       -
       (85)     (36)      (8)                                    (35)    (34)
                              Other businesses and corporate
                              Impairment and gain (loss) on sale
       (10)       -      (11)  of businesses and fixed assets     20      12
        96        -      (35) Environmental and other provisions (35)     96
                              Restructuring, integration and
         -        -        -   rationalization costs               -       -
                              Fair value gain (loss) on embedded
        (8)       7       (7) derivatives                          3       5
         -        -     (152) Other                             (152)      -
        78        7     (205)                                   (164)    113



                              Total before taxation for
     2,028    1,137     (535)  continuing operations           1,164   2,307
      (803)    (396)     189  Taxation credit (charge)(a)       (406)   (902)
                              Total after taxation for
     1,225      741     (346)  continuing operations             758   1,405
                              Innovene operations
                              Total before taxation for
         -        -        -   Innovene operations(b)              -    (184)
         -        -        -  Taxation credit (charge)             -      (7)
                              Total after taxation for
         -        -      -     Innovene operations                 -    (191)
     1,225      741     (346) Total after taxation for period    758   1,214



     (a) Tax on non-operating items is calculated using the quarter's
         effective tax rate on replacement cost profit from continuing
          operations.
     (b) Includes the loss on remeasurement to fair value of $184 million in
         the nine months of 2006.




                        Realizations and Marker Prices


     Third   Second    Third
    Quarter  Quarter  Quarter                                   Nine months
     2006     2007     2007                                    2007     2006



                              Average realizations(a)
                               Liquids ($/bbl)(b)
     63.57    63.82    72.99  UK                               62.88    63.39
     62.95    59.42    67.47  US                               59.30    58.92
     65.50    64.76    73.56  Rest of World                    63.88    61.25
     64.15    62.58    71.12  BP Average                       62.00    60.91



                              Natural gas ($/mcf)
      5.55     4.84     4.89  UK                                5.84     6.55
      5.51     5.94     4.64  US                                5.44     5.96
      3.62     3.56     3.42  Rest of World                     3.63     3.70
      4.49     4.45     3.93  BP Average                        4.42     4.83


                              Average oil marker prices ($/bbl)
     69.60    68.76    74.74  Brent                            67.12    67.02
     70.44    64.89    75.24  West Texas Intermediate          66.15    68.09
     69.02    65.77    76.31  Alaska North Slope US West Coast 66.06    66.28
     62.92    62.16    69.37  Mars                             61.67    60.76
     65.90    65.03    71.98  Urals (NWE- cif)                 63.82    62.94
     39.83    39.56    41.95  Russian domestic oil             36.33    37.11


                              Average natural gas marker prices
      6.58     7.55     6.16  Henry Hub gas price ($/mmbtu)(c)  6.83     7.45
                              UK Gas - National Balancing Point
     33.72    20.24    30.58  (p/therm)                        24.45    46.28


     (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 (EU). 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. 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. The period to
        30 September 2006 includes a loss on remeasurement to fair value of
        $184 million.


     Third   Second    Third
    Quarter  Quarter  Quarter                                     Nine Months
     2006     2007     2007                                     2007     2006
           $ million                                              $ million
                              Loss recognized on the
                               remeasurement to
       -        -        -     fair value                         -     (184)
                              Taxation
       -        -        -       Related to profit before tax     -      166
                                 Related to remeasurement to
       -        -        -        fair value                      -       (7)
                              Profit (loss) from Innovene
       -        -        -     operations                         -      (25)
                              Earnings (loss) per share from
                              Innovene operations - cents
       -        -        -    Basic                               -    (0.13)
       -        -        -    Diluted                             -    (0.12)


     3. Sales and other operating revenues

     Third   Second    Third
    Quarter  Quarter  Quarter                                    Nine Months
     2006     2007     2007                                    2007     2006
           $ million                                             $ million
                              By business
    12,932   12,747   12,796  Exploration and Production      37,762  40,345
    61,169   63,960   63,761  Refining and Marketing         180,840 179,079
     5,840    5,403    4,490  Gas, Power and Renewables       15,506  18,484
       212      178      238  Other businesses and corporate     622     670
    80,153   82,288   81,285                                 234,730 238,578



    11,613   10,416    9,951  Less: sales between businesses  30,217  34,618
    68,540   71,872   71,334  Total third party sales        204,513 203,960



                              By geographical area
    27,809   27,713   25,017  UK                              76,785  81,842
    20,412   19,064   19,817  Rest of Europe                  55,469  58,192
    27,447   26,825   26,409  US                              76,268  76,567
    17,337   18,273   18,374  Rest of World                   53,491  54,779
    93,005   91,875   89,617                                 262,013 271,380
    24,465   20,003   18,283  Less:  sales between areas      57,500  67,420
    68,540   71,872   71,334                                 204,513 203,960



                                    Notes

     4. Profit before interest and taxation is after charging:


     Third   Second    Third
    Quarter  Quarter  Quarter                                   Nine Months
     2006     2007     2007                                    2007     2006
           $ million                                              $ million
                              Production and similar taxes
        96       -       (34) UK                                  33     403
     1,106      827      955  Overseas                         2,462   2,586
     1,202      827      921                                   2,495   2,989



     5. Finance costs


     Third   Second    Third
    Quarter  Quarter  Quarter                                    Nine Months
     2006     2007     2007                                    2007     2006
            $ million                                             $ million
       328      345      348  Interest payable                 1,040     906
      (159)     (94)     (86) Capitalized                       (263)   (393)
       169      251      262                                     777     513



     6. Other finance income


     Third    Second   Third
    Quarter  Quarter  Quarter                                   Nine Months
     2006     2007     2007                                    2007     2006
           $ million                                             $ million
                              Interest on pension and other
                               post-retirement benefit
       489      546      555   plan liabilities                1,639   1,444
                              Expected return on pension
                               and other post-retirement
      (610)    (708)    (719)  benefit plan assets            (2,125) (1,791)
                              Interest net of expected return
      (121)    (162)    (164)  on plan assets                   (486)   (347)
                              Unwinding of discount on
        63       66       75   provisions                        208     178
                              Unwinding of discount on
                               deferred consideration
                               for acquisition of
         6        -        -   investment in TNK-BP                -      23
       (52)     (96)     (89)                                   (278)   (146)



                                    Notes

     7. Analysis of changes in net debt


     Third   Second    Third
    Quarter  Quarter  Quarter                                   Nine Months
     2006     2007     2007                                    2007     2006
           $ million                                             $ million
                              Opening balance
    19,286   23,728   23,754  Finance debt                    24,010  19,162
     4,852    1,956    2,643  Less: Cash and cash equivalents  2,590   2,960
    14,434   21,772   21,111  Opening net debt                21,420  16,202
                              Closing balance
    19,973   23,754   25,245  Finance debt                    25,245  19,973
     3,199    2,643    2,410  Less: Cash and cash equivalents  2,410   3,199
    16,774   21,111   22,835  Closing net debt                22,835  16,774
    (2,340)     661   (1,724) Decrease (increase) in net debt (1,415)   (572)
                              Movement in cash and cash
                               equivalents
    (1,672)     661     (277)  (excluding exchange adjustments) (261)    242
                              Net cash outflow (inflow)
                               from financing
        (5)      79   (1,164)  (excluding share capital)        (751)   (360)
      (515)     (51)    (261) Fair value hedge adjustment       (342)   (373)
       (34)     (13)     (21) Other movements                    (45)     24
                              Movement in net debt before
    (2,226)     676   (1,723)  exchange effects               (1,399)   (467)
      (114)     (15)      (1) Exchange adjustments               (16)   (105)
    (2,340)     661   (1,724) Decrease (increase) in net debt (1,415)   (572)



                                    Notes

     8. TNK-BP Operational and Financial Information


     Third   Second    Third
    Quarter  Quarter  Quarter                                     Nine Months
     2006     2007     2007                                      2007    2006
                              Production (Net of royalties)
                               (BP share)
       867      837      830  Crude oil (mb/d)                   833     890
       472      441      364  Natural gas (mmcf/d)               456     525
       948      913      892  Total hydrocarbons (mboe/d)(a)     912     980



          $ million                                                $ million
                              Income statement (BP share)
                              Profit before interest
     2,321    1,016    1,094   and tax(b)                     2,465    4,257



       (52)     (64)     (67) Interest expense (+)             (193)    (140)
      (651)    (188)    (289) Taxation                         (579)  (1,349)
      (100)     (78)     (66) Minority interest                (173)    (187)
     1,518      686      672  Net Income                      1,520    2,581
                              (+) Excludes unwinding of
         6        -       -      discount on consideration       -        23
                              Cash Flow
     2,000      500      800  Dividends received(c)           1,300    2,771




    Balance Sheet                                  30 September   31 December
                                                       2007           2006
    Investments in jointly controlled entities        8,066            8,353



     (a) Natural gas is converted to oil equivalent at 5.8 billion cubic
         feet = 1 million barrels.
     (b) Third quarter 2006 included a net gain of $892 million on the
         disposal of the Urdmurtneft assets.
     (c) Nine months of 2006 included $771 million declared in fourth quarter
         2005.




     9. Fourth quarter results
        BP's fourth quarter results will be announced on 5 February 2008.



    10. 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; or
Investor  Relations, London: Fergus MacLeod, +44(0)20-7496-4717; or United
States: Rachael  MacLean, +1-212-451-8072; Web Site: http://www.bp.com,
http://www.bp.com/investors

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