Ad-hoc | 5 July 2005 08:39

BP p.l.c.: BP 2Q05 Trading Update (Part 1 of 2)

Ad hoc announcement §15 WpHG – Part 1 BP p.l.c.: BP 2Q05 Trading Update (Part 1 of 2) Ad hoc announcement processed and transmitted by DGAP. The issuer is solely responsible for the content of this announcement. —————————————————————————— BP Second Quarter 2005 Trading Update (Part 1/2) This trading update is aimed at providing estimates regarding revenue and trading conditions experienced by BP in the second quarter ending June 30, 2005, and estimates of identified non-operating items expected to be included in that quarter’s result. The second 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 July 26, 2005. The trading update 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 second 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. 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. Resources Business: Exploration and Production Marker Prices 2Q’04 3Q’04 4Q’04 1Q’05 2Q’05 Brent Dated ($/bbl) 35.32 41.54 43.85 47.62 51.63 WTI ($/bbl) 38.28 43.88 48.29 49.88 53.08 ANS USWC ($/bbl) 36.99 41.82 42.62 45.07 50.01 US gas Henry Hub first of month index ($/mmbtu) 6.00 5.75 7.07 6.27 6.74 UK gas price – National Balance Point (p/therm) 20.70 23.63 28.51 37.96 30.15 Urals (NWE – cif) ($/bbl) 32.32 37.23 37.75 42.54 48.08 Russian domestic Oil ($/bbl) 19.71 23.33 22.30 19.14 27.39 Overall BP production in 2Q’05 is expected to be broadly flat with 1Q’05. Excluding volumes from TNK-BP operations, production in 2Q is expected to be 3,135 mboed, similar to 1Q’05. BP’s net share of production from TNK-BP is anticipated to be approximately 975 mboed. BP’s average production for 2005 as a whole is expected to be in the range 4,100- 4,200 mboed, as indicated in our presentation on February 8, 2005. Relative to 1Q’05 liquids and gas realisations increased in line with marker prices. Planned higher revenue investment continues: in addition sector specific cost inflation reflects strong current commodity prices. Refining and Marketing Refining Indicator Margins ($/bbl) 2Q’04 3Q’04 4Q’04 1Q’05 2Q’05 USA – West Coast 15.41 11.28 10.36 12.88 14.53 – Gulf Coast 9.18 6.99 5.52 7.30 9.37 – Midwest 9.01 5.01 1.65 3.84 7.45 North West Europe 5.29 4.37 4.72 2.84 5.68 Singapore 2.80 5.48 8.02 4.98 6.30 Refining Global Indicator Margin* ($/bbl.) 8.28 6.39 5.69 5.94 8.42 *The refining Global Indicator Margin (GIM) is a weighted average based on BP’s portfolio. The overall refining GIM has been restated from that published in 2004 due to the transfer of the Grangemouth and Lavera refineries to O&D. Actual margins may vary because of refinery configuration, crude slate and operating practices. The second quarter’s average refining Global Indicator Margin (GIM) was higher than both 1Q’05 and 2Q’04. Relative to the first quarter, the improvement in 2Q’05 of BP’s actual margins is expected to be slightly lower than suggested by the indicator margin due to the narrowing of heavy/sour crude discounts. Refining availability is expected to have been below that of either prior period. After a weak first quarter, marketing margins improved significantly during the early part of the second quarter. From late May, rising crude and product prices dampened marketing margins, partially offsetting the earlier gains. Marketing margins are therefore expected to be above those of 1Q’05 but below those of 2Q’04. In the Aromatics & Acetyls business, which is now reported as part of the refining and marketing segment, slower PTA demand growth in China reduced 2Q’05 margins compared to those in 1Q’05. Gas, Power and Renewables Due to a weaker gas marketing contribution and seasonally lower NGL volumes, GP&R results are expected to be significantly lower than 1Q’05. Other Businesses and Corporate (including Olefins and Derivatives) Other Businesses and Corporate Other Business and Corporate results, excluding Olefins and Derivatives, are expected to be in line with guidance given in our February ’05 investor webcast for an annual charge of $900m +/- $200m, indicating an expected quarterly charge of around $175 – 275m in 2005. End Part 1/2 BP p.l.c. 1 St James’s Square London, SW1Y 4PD United Kingdom ISIN: GB0007980591 WKN: 850517 Listed: Amtlicher Markt in Düsseldorf (Dt. Zertifikate DE0008618737), Frankfurt (General Standard) und Hamburg; Freiverkehr in Berlin-Bremen, Hamburg, Hannover, München und Stuttgart End of ad hoc announcement (c)DGAP 05.07.2005 050839 Jul 05