BP First Quarter 2005 Trading Update
Posted: 04 April 2005
This trading update is aimed at providing certain estimates regarding revenue and trading conditions experienced by BP in the first quarter ending March 31, 2005, and estimates of certain identified non-operating items expected to be included in that quarter’s result. The first quarter margin, price, realisation, cost, production and other data referred to below are currently provisional, some being drawn from figures applicable to the first month or so of the quarter. All such data are subject to change and may differ quite considerably from the final numbers that will be reported on April 26, 2005 . The statement is produced in order to provide greater disclosure to investors and potential investors of currently expected outcomes, and to ensure that they all receive equal access to the same information at the same time.
As described in the technical presentation on March 14, BP’s first quarter results will be reported under International Financial Reporting Standards (IFRS). In adopting IFRS, BP has decided to discontinue the use of pro forma reporting for the ARCO and Burmah Castrol acquisitions.
Compared with pro forma, our first quarter results will reflect depreciation of the fair market value step-up related to these acquisitions. In 4Q’04 and 1Q’04 this depreciation amounted to $124m and $141m, excluding impairments of $151m and $63m respectively.
Compared to UK GAAP, goodwill related to acquisitions will no longer be amortised under IFRS. Goodwill amortisation in 4Q’04 and 1Q’04 was $351m and $360m respectively.
In respect of equity accounted entities, such as TNK-BP, results under IFRS will be shown after interest and tax charges and minority interest. BP’s consolidated interest and tax expense and minority interest will be reduced by an exactly offsetting amount, so the consolidated post tax result is not affected. The impact of post tax and interest reporting for equity accounted entities on the segment results in 4Q’04 was a reduction of $469 million, and in 1Q’04 a reduction of $244 million, principally in the Exploration and Production segment result. Full details are shown in note 8 of the restated 2004 Stock Exchange Announcement (SEA) released on March 14.
Results for our Olefins and Derivatives business, now named Innovene and which includes the Grangemouth and Lavera refineries, will be reported as part of Other Businesses and Corporate. Full details are shown in note 7 of the restated SEA.
Comparative data for each of the quarters of 2004 has been restated to reflect these and other reporting changes. Full details are available on www.bp.com/investors
Posted by Editor Pipeline Magazine
Information supplied by companies
or PR agencies who are responsible for content. Send press releases
to info@pipelinedubai.com |
