<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
for the period ended September 30, 2000
BP AMOCO p.l.c.
(Translation of registrant's name into English)
BRITANNIC HOUSE, 1 FINSBURY CIRCUS, LONDON, EC2M 7BA, ENGLAND
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
----- -----
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes No X
----- -----
THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE
PROSPECTUS INCLUDED IN THE REGISTRATION STATEMENT ON FORM F-3 (FILE NO.
333-9790) OF BP AMOCO p.l.c., THE PROSPECTUS INCLUDED IN THE REGISTRATION
STATEMENT ON FORM F-3 (FILE NO. 33-39075) OF BP AMERICA INC. AND BP AMOCO
p.l.c., THE PROSPECTUS INCLUDED IN THE REGISTRATION STATEMENT ON FORM F-3 (FILE
NO. 33-20338) OF BP AMERICA INC. AND BP AMOCO p.l.c., THE PROSPECTUS INCLUDED IN
THE REGISTRATION STATEMENT ON FORM F-3 (FILE NO. 33-29102) OF THE STANDARD OIL
COMPANY AND BP AMOCO p.l.c., THE PROSPECTUS INCLUDED IN THE REGISTRATION
STATEMENT ON FORM S-8 (FILE NO. 33-21868) OF BP AMOCO p.l.c., THE PROSPECTUS
INCLUDED IN THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-9020) OF BP
AMOCO p.l.c., THE PROSPECTUS INCLUDED IN THE REGISTRATION STATEMENT ON FORM S-8
(FILE NO. 333-9798) OF BP AMOCO p.l.c., THE PROSPECTUS INCLUDED IN THE
REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-79399) OF BP AMOCO p.l.c., AND
THE PROSPECTUS INCLUDED IN THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO.
333-34968) OF BP AMOCO p.l.c., AND TO BE A PART THEREOF FROM THE DATE ON WHICH
THIS REPORT IS FILED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS
SUBSEQUENTLY FILED OR FURNISHED.
<PAGE>
Page 2
BP AMOCO p.l.c. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
GROUP RESULTS JANUARY - SEPTEMBER 2000
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000 1999
--------------------- ---------------------
<S> <C> <C> <C> <C>
Total replacement cost operating profit - $m 4,810 2,848 13,210 6,169
Replacement cost profit before exceptional items - $m 3,058 1,743 8,601 3,646
Replacement cost profit for the period - $m 2,918 1,205 8,357 2,085
Historical cost profit for the period - $m 3,462 1,848 9,646 3,307
Profit per Ordinary Share - cents 15.36 9.53 45.19 17.06
Dividends per Ordinary Share - cents 5.25 5.00 15.25 15.00
</TABLE>
(a) For further information on replacement cost profit see Note 5 of Notes to
Consolidated Financial Statements.
The following discussion should be read in conjunction with the consolidated
financial statements provided elsewhere in this Form 6-K and with the
consolidated financial statements and related notes for the year ended December
31, 1999 included in BP Amoco p.l.c.'s Annual Report on Form 20-F for the year
ended December 31, 1999. Comparative figures for the three months and nine
months ended September 30, 1999 have been restated to reflect the creation of
the Gas and Power business stream, which is reported separately from January 1,
2000. BP or the Group means BP Amoco p.l.c. and its subsidiaries.
On April 13, 2000 BP and Atlantic Richfield Company (ARCO) announced that they
had received clearance from the US Federal Trade Commission (FTC) for the
combination of the two companies and the combination was completed on April 18,
2000. The combination has been accounted for as an acquisition under UK GAAP and
as a purchase under US GAAP. The results of ARCO have been included with effect
from April 14, 2000, the day following the FTC approval of the transaction.
The Burmah Castrol acquisition was completed on July 7, 2000 for a total cost of
$4.7 billion. The results have been included with effect from July 7, 2000.
The final agreement on the acquisition of the Mobil European Fuels JV share was
completed in August, 2000. The Joint Venture has been consolidated with effect
from August 1, 2000.
Replacement cost profit before exceptional items (which excludes inventory
holding gains and losses) was $3,058 million for the three months ended
September 30, 2000, compared with $1,743 million for the equivalent period of
1999. The increase reflects a very strong trading environment, continued
performance improvement and the inclusion of ARCO and Burmah Castrol. These
results include special charges of $392 million ($289 million after tax) for the
three months ended September 30, 2000, and $294 million ($212 million after tax)
for the equivalent period of 1999. The result for the three months ended
September 30, 2000 is also after charging depreciation and amortization of $449
million arising from the fixed asset revaluation adjustment and goodwill
consequent upon the ARCO and Burmah Castrol acquisitions. The special charges
for the three months ended September 30, 2000 comprised ARCO and Vastar
integration costs of $184 million, rationalization costs post the BP/Amoco
merger of $140 million, $26 million for litigation costs, $25 million for Burmah
Castrol integration costs and $17 million for an asset writedown. Those for the
corresponding period of 1999 related to integration costs following the BP/Amoco
merger.
For the nine months ended September 30, 2000 the replacement cost profit before
exceptional items was $8,601 million, up from $3,646 million in 1999. The
results for 2000 are after charging special items of $1,032 million ($761
million after tax) and acquisition depreciation and amortization of $751
million. The results for 1999 include special charges of $605 million ($437
million after tax) relating mainly to integration costs and an asset writedown.
Reductions in the combined cost structure of BP and ARCO are proceeding
according to plan with around three-quarters of the $2 billion year-on-year
target achieved at the end of the third quarter.
<PAGE>
Page 3
BP AMOCO p.l.c. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - continued
The historical cost profit for the three months ended September 30, 2000 was
$3,462 million including inventory holding gains of $544 million and net
exceptional gains of $138 million ($140 million charge after tax) in respect of
net profits on the sale of fixed assets and businesses and termination of
operations. For the equivalent period of 1999 there was a profit of $1,848
million including inventory holding gains of $643 million and net exceptional
charges of $501 million ($538 million after tax) for restructuring costs and net
profits on the sale of fixed assets and businesses and termination of
operations.
For the nine months ended September 30, 2000 the historical cost profit was
$9,646 million including inventory holding gains of $1,289 million. This
compares with a profit of $3,307 million including inventory holding gains of
$1,222 million for the same period in 1999. Included in the results for the
first nine months of 2000 were net exceptional profits of $142 million (net loss
of $244 million after tax) for the sale of fixed assets and businesses and
termination of operations. The results for the comparable period in 1999
included net exceptional charges of $1,745 million ($1,561 million after tax)
for restructuring costs and net profits on the sale of fixed assets and
businesses and termination of operations.
BP is presenting a pro forma result adjusted for special items in order to
enable investors to evaluate better both BP historical performance and its
performance against that of its competitors. The pro forma result adjusted for
special items has been derived from BP reported UK GAAP accounting information
but is not in itself a recognized UK or US GAAP measure.
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000 1999
--------------------- ---------------------
<S> <C> <C> <C> <C>
Replacement cost profit before exceptional items - $m 3,058 1,743 8,601 3,646
Special items* - $m 289 212 761 437
Acquisition amortization+ - $m 449 - 751 -
--------------------- ---------------------
Pro forma result adjusted for special items - $m 3,796 1,955 10,113 4,083
--------------------- ---------------------
- per ordinary share pence 11.43 6.31 30.77 13.09
- per ordinary share cents 16.91 10.09 47.38 21.07
- per ADS dollars 1.01 0.61 2.84 1.26
--------------------- ---------------------
</TABLE>
* The special items refer to non-recurring charges and credits reported in the
quarter. The special items in the quarter comprise principally ARCO, Vastar
and Burmah Castrol integration costs and rationalization costs post the BP
Amoco merger.
+ Acquisition amortization refers to depreciation relating to the fixed asset
revaluation adjustment and amortization of goodwill consequent upon the ARCO
and Burmah Castrol acquisitions.
BP's pro forma result adjusted for special items was $3,796 million for the
three months ended September 30, 2000 and $10,113 million for the nine months
ended September 30, 2000. The results per share were 16.91 cents for the three
months ended September 30, 2000 and 47.38 cents for the nine months ended
September 30, 2000, an increase of 68% and 125% respectively over the comparable
periods of 1999.
Net taxation, other than production taxes, charged for the three months ended
September 30, 2000 was $1,554 million compared with $738 million in the
equivalent period last year. This included a tax charge of $278 million in
respect of exceptional items compared with a tax charge of $37 million for the
third quarter of 1999. The effective tax rate on replacement cost profit before
exceptional items was 29% for the three months ended September 30, 2000 and 28%
for the nine months, compared with 28% for the equivalent periods of 1999. On a
pro forma basis, the effective tax rate for the quarter and nine months was 26%.
The decrease in the effective tax rate mainly reflects increased utilization of
Nonconventional Fuels (Section 29) tax credits in the USA. These are tax credits
relating to the production and sale of certain quantities of coalbed methane and
other gases. Utilization of such credits is governed by certain restrictions. No
such credits were available to be used in 1999.
Net cash outflow for the three months ended September 30, 2000 was $2.7 billion,
compared with an inflow of $0.4 billion for the equivalent period of 1999.
Significantly higher operating cash flow was more than offset by higher payments
for capital expenditure and acquisitions, net of divestments, and higher tax
payments relating to both tax on operations and on disposals. For the first nine
months of 2000, net cash inflow was $3.7 billion compared with a net cash
outflow of $2.0 billion in the same period in 1999. The improved cash flow for
the nine months reflects strong operating cash flow along with sales proceeds
from the FTC mandated ARCO asset sales, partly offset by higher tax and payments
for capital expenditure and acquisitions.
<PAGE>
Page 4
BP AMOCO p.l.c. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - continued
Excluding the cost of acquisitions and spending by the acquisitions, capital
expenditure for the three months ended September 30, 2000 was $2.1 billion and
$5.6 billion for the nine months ended September 30, 2000, an increase of 27%
and 14% respectively. Disposal proceeds for the nine months ended September 30,
2000 amounted to $10.0 billion compared to $1.1 billion a year ago. Acquisitions
in the nine months amounted to $6.2 billion (nil a year ago). Net cash outflow
for capital expenditure and acquisitions, net of disposals, was $3.7 billion
compared with $4.2 billion for the nine months of 1999.
The following table summarizes the changes in capital expenditure and
acquisitions between 1999 and 2000. In order to present a meaningful comparison
against 1999, the table adjusts the reported capital expenditure and
acquisitions in 2000 to exclude the costs of significant acquisitions and
spending by the acquisitions.
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
------------------ -----------------
($ million)
<S> <C> <C>
BP 1999 capital expenditure and acquisitions as reported (A) 1,611 4,919
================== =================
BP 2000 capital expenditure and acquisitions as reported (B) 9,587 15,147
Less significant acquisitions: (C)
Purchase of Burmah Castrol issued share capital (3,817) (4,686)
Purchase of Mobil share of European Fuels JV (1,450) (1,450)
Acquisition of a 2.2% interest in PetroChina - (578)
Purchase of minority interest in Vastar (1,688) (1,688)
ARCO capital expenditure (531) (1,083)
Burmah Castrol capital expenditure (17) (17)
Additional capital expenditure due to the
full consolidation of European Fuels JV (30) (30)
------------------ -----------------
(7,533) (9,532)
------------------ -----------------
BP 2000 capital expenditure and acquisitions 2,054 5,615
adjusted for acquisitions (D) [D=B-C] ================== ==================
Increase 2000 against 1999 (D-A) 433 696
================== ==================
% Increase 27% 14%
</TABLE>
Net debt at September 30, 2000 was $17.2 billion. The ratio of net debt to net
debt plus equity was 19% compared with 15% at June 30, 2000 and 25% at September
30, 1999. Based on the pro forma result adjusted for special items, the ratio of
net debt to net debt plus equity was 25% at September 30, 2000. Net debt of
$5,863 million and $716 million was acquired as part of the ARCO and Burmah
Castrol acquisitions respectively. Interest expense for the three months ended
September 30, 2000 was $460 million compared with $355 million in the equivalent
period of 1999. For the first nine months of 2000 interest expense was $1,159
million compared to $987 million a year ago. Interest expense for the third
quarter of 2000 reflects interest on the combined debt of BP, ARCO and Burmah
Castrol.
BP believes that, taking into account unutilized market facilities, the Group
has sufficient financing for foreseeable requirements.
The return on average capital employed for the three months ended September 30,
2000, based on replacement cost profit before exceptional items and after adding
back interest expense and minority shareholders' interest, was 15%, the same as
for the equivalent period of 1999. Based on the pro forma result adjusted for
special items, and after adding back interest expense and minority shareholders'
interest, the return on average capital employed was 23% for the third quarter
of 2000 and 16% for the third quarter of 1999. For further information on the
return on average capital employed calculation see Note 12 of Notes to
Consolidated Financial Statements.
<PAGE>
Page 5
BP AMOCO p.l.c. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - continued
BP purchased for cancellation $428 million of its own shares during the third
quarter of 2000. Total purchases so far this year amount to $1,404 million.
BP announced a third quarterly dividend for 2000 of 5.25 cents per Ordinary
Share. Holders of Ordinary Shares will receive 3.602 pence per share and holders
of American Depositary Receipts (ADRs) $0.315 per ADS share. The dividend is
payable on December 11, 2000 to shareholders on the register on November 17,
2000. Participants in the Dividend Reinvestment Plan or the dividend
reinvestment facility in the US Direct Access Plan will receive the dividend in
the form of shares on December 11, 2000.
BP intends to continue to pay dividends in the future of around 50% of estimated
average replacement cost profit before exceptional items through the business
cycle.
<PAGE>
Page 6
BP AMOCO p.l.c. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - continued
DETAILED REVIEW OF BUSINESSES (EXCLUDING EXCEPTIONAL ITEMS)
EXPLORATION AND PRODUCTION
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000 1999
--------------------- ---------------------
<S> <C> <C> <C> <C>
Total replacement cost operating profit - $m 3,652 2,183 9,970 4,398
Special items - $m 192 142 475 256
Acquisition amortization - $m 312 - 565 -
--------------------- ---------------------
Pro forma operating result
adjusted for special items - $m 4,156 2,325 11,010 4,654
--------------------- ---------------------
Results included:
Exploration expense - $m 143 141 442 437
Key Statistics:
Average prices :Crude oil* - $/bbl 27.84 19.17 26.13 14.68
realized by BP
:Natural gas - $/mcf 3.01 1.99 2.57 1.87
Crude oil production (net of royalties) - mb/d 1,902 2,047 1,927 2,065
Natural gas production (net of royalties) - mmcf/d 7,797 5,917 7,269 5,977
Total production (net of royalties) (a) - mboe/d 3,246 3,067 3,180 3,096
</TABLE>
* Crude oil and natural gas liquids
(a) Expressed in thousands of barrels of oil equivalent per day (mboe/d). Gas
is converted to oil equivalent at 5.8 billion cubic feet: 1 million
barrels.
(b) Further operating information is shown on page 20.
Replacement cost operating profits for the three months and nine months ended
September 30, 2000 were $3,652 million and $9,970 million respectively. This
compares with $2,183 million and $4,398 million for the corresponding periods in
1999. The results for both periods in 2000 reflect a contribution from ARCO for
the period from April 14, 2000. In addition, the results are after charging
special items of $192 million for the third quarter and $475 million for the
nine months respectively, and depreciation and amortization arising from the
fixed asset revaluation adjustment and goodwill consequent upon the ARCO
acquisition of $312 million for the third quarter and $565 million for the nine
months.
Special items in the three months ended September 30, 2000 principally comprised
ARCO and Vastar integration costs of $162 million and $17 million for an asset
write-down. The special items for the nine months ended September 30, 2000
comprised $421 million for ARCO and Vastar integration costs, $24 million for
the settlement of a lawsuit and $17 million for an asset write-down.
The special items in 1999 related mainly to BP/Amoco merger integration costs
and an asset write-down.
The pro forma results adjusted for special items for the third quarter and nine
months were a record $4,156 million and $11,010 million respectively. The
improved results, when compared with a year ago, reflected significantly higher
oil and gas prices, the ARCO acquisition and further operational improvements.
Third quarter 2000 production, excluding acquisitions and divestments, reflects
the increased focus in the 1999 capital programme. Reported production for the
three months ended September 30, 2000 increased by 6%, (a 3% decline excluding
the effect of acquisitions and divestments); oil production was down 7% (a 5%
decline excluding the effect of acquisitions and divestments) and gas production
increased by 32% (no change excluding the effect of acquisitions and
divestments). A detailed volume reconciliation schedule can be found on the
following page. Capital expenditure for the current quarter increased to $1.9
billion ($1.4 billion, excluding ARCO ongoing capital expenditure) from the $0.8
billion spent in the third quarter of 1999. Capital expenditure for the nine
months ended September 30, 2000 was $4.3 billion ($3.3 billion excluding ARCO
ongoing capital expenditure) compared with $2.8 billion for the corresponding
period in 1999.
In the US Gulf of Mexico, the developments of NaKika (BP 50%), Horn Mountain (BP
67% and operator) and Kings Peak (BP 100% and operator) were approved by BP,
amounting to $1.2 billion in commitments. In addition, offshore UK, the second
phase of Foinaven was approved. UK government approval for $630 million has been
sought for the Magnus enhanced oil recovery project that will take gas from
Foinaven and Schiehallion for reinjection in the Magnus reservoir.
<PAGE>
Page 7
BP AMOCO p.l.c. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - continued
In September, BP announced the completion of the purchase of the publicly held
minority stock holding in Vastar Resources Inc. BP had acquired 81.8% of Vastar
through the ARCO acquisition. Because of the close operational alignment with
the existing BP upstream US operations, the Vastar operations have been rapidly
integrated with the BP operations.
During the quarter, offshore Angola, discoveries at Saxi-1, in Block 15 (BP
26.67%) and Perpetua-1, in Block 17 (BP 16.67%) and, offshore Trinidad and
Tobago, a major new natural gas discovery were announced. The initial well on
the Red Mango field (BP 100%) indicated significant gas and oil condensate
reserves. This is BP's second major gas find in this area this year.
The following tables summarize the changes in oil and gas production between
1999 and 2000. In order to present a meaningful comparison against 1999, the
tables adjust the reported production in 1999 and 2000 to exclude the production
from significant acquisitions and divestments for the three month and nine month
periods ended September 30, 1999 and September 30, 2000. A separate
reconciliation for ARCO for the same periods is also provided.
<TABLE>
<CAPTION>
(Unaudited)
Oil Gas Gas Total
------- ------- ------- -------
(mb/d) (mmcf/d) (mboe/d) (mboe/d)
<S> <C> <C> <C> <C>
BP 3Q 1999 production as reported (A) 2,047 5,917 1,020 3,067
Net acquisitions and divestments (B)
UK Scott/Telford (21) (10) (2) (23)
Rest of Europe - - - - -
USA Crescendo, Altura, PBU realignment,
Western gas (215) (165) (28) (243)
Rest of World Venezuela, others (64) (33) (6) (70)
------- ------- ------- -------
(300) (208) (36) (336)
------- ------- ------- -------
BP 3Q 1999 production adjusted for
divestments and acquisitions (C) [C=A-B] 1,747 5,709 984 2,731
======= ======= ======= =======
BP and ARCO 3Q 2000 production as reported (D) 1,902 7,797 1,344 3,246
Less: ARCO contribution 3Q 2000 (E) (240) (2,105) (363) (603)
------- ------- ------- -------
BP 3Q 2000 production adjusted for
divestments and acquisitions (F) [F=D-E] 1,662 5,692 981 2,643
======= ======= ======= =======
Increase/(decrease) 2000 against 1999 (F-C) (85) (17) (3) (88)
======= ======= ======= =======
% Decrease (5%) - (3%)
(Unaudited)
ARCO reconciliation Oil Gas Gas Total
------- ------- ------- -------
(mb/d) (mmcf/d) (mboe/d) (mboe/d)
ARCO 3Q 1999 production as reported (A) 600 2,220 383 983
Less divestments (B)
UK North Sea 4th Round (20) - - (20)
Rest of Europe - - - - -
USA Alaska, Long Beach (319) (35) (6) (325)
Rest of World Tunisia, Ecuador, Algeria (24) - - (24)
------- ------- ------- -------
(363) (35) (6) (369)
------- ------- ------- -------
ARCO 3Q 1999 production adjusted
for divestments (C) [C=A-B] 237 2,185 377 614
======= ======= ======= =======
ARCO 3Q 2000 production as reported (D) 240 2,105 363 603
======= ======= ======= =======
Increase/(decrease) 2000 against 1999 (D-C) 3 (80) (14) (11)
======= ======= ======= =======
% Increase/(decrease) 1% (4%) (2%)
</TABLE>
<PAGE>
Page 8
BP AMOCO p.l.c. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - continued
<TABLE>
<CAPTION>
(Unaudited)
Oil Gas Gas Total
------- ------- ------- -------
(mb/d) (mmcf/d) (mboe/d) (mboe/d)
<S> <C> <C> <C> <C>
BP Nine Months 1999 production as reported (A) 2,065 5,977 1,031 3,096
Net acquisitions and divestments (B)
UK Scott/Telford (14) (10) (2) (16)
Rest of Europe - - - - -
USA Altura, PBU Realignment (210) (104) (18) (228)
Rest of World Canada Oil (69) (41) (7) (76)
------- ------- ------- -------
(293) (155) (27) (320)
------- ------- ------- -------
BP Nine Months 1999 production adjusted for
divestments and acquisitions (C) [C=A-B] 1,772 5,822 1,004 2,776
======= ======= ======= =======
BP and ARCO Nine Months 2000 production
as reported (D) 1,927 7,269 1,253 3,180
Net acquisitions and divestments (E)
ARCO Contribution April 14 - September 30, 2000 (161) (1,340) (231) (392)
Altura, Others (61) (44) (8) (69)
------- ------- ------- -------
(222) (1,384) (239) (461)
------- ------- ------- -------
BP Nine Months 2000 production adjusted
for divestments and acquisitions (F) [F=D-E] 1,705 5,885 1,014 2,719
======= ======= ======= =======
Increase/(decrease) 2000 against 1999 (F-C) (67) 63 10 (57)
======= ======= ======= =======
% Increase/(decrease) (4%) 1% (2%)
(Unaudited)
ARCO reconciliation Oil Gas Gas Total
------- ------- ------- -------
(mb/d) (mmcf/d) (mboe/d) (mboe/d)
ARCO Nine Months 1999 production as reported (A) 628 2,395 413 1,041
Less divestments (B)
UK North Sea 4th Round (19) - - (19)
Rest of Europe - - - - -
USA Alaska, Long Beach (349) (35) (6) (355)
Rest of World Tunisia, Ecuador, Algeria (18) - - (18)
------- ------- ------- -------
(386) (35) (6) (392)
------- ------- ------- -------
ARCO Nine Months 1999 production
adjusted for divestments (C) [C=A-B] 242 2,360 407 649
======= ======= ======= =======
ARCO Nine Months 2000 production as reported (D) 357 2,285 394 751
Less: divestments (E)
UK North Sea 4th Round (5) - - (5)
Rest of Europe - - - - -
USA Alaska, Long Beach (111) (12) (2) (113)
Rest of World - - - -
------- ------- ------- -------
(116) (12) (2) (118)
------- ------- ------- -------
ARCO 3Q 2000 production adjusted
for divestments (F) [F=D-E] 241 2,273 392 633
======= ======= ======= =======
Increase/(decrease) 2000 against 1999 (F-C) (1) (87) (15) (16)
======= ======= ======= =======
% Decrease - (4%) (2%)
</TABLE>
<PAGE>
Page 9
BP AMOCO p.l.c. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - continued
GAS AND POWER
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000 1999
--------------------- ---------------------
<S> <C> <C> <C> <C>
Total replacement cost operating profit - $m 48 57 126 163
Special items - $m - - - -
Acquisition amortization - $m - - - -
--------------------- ---------------------
Pro forma operating result
adjusted for special items - $m 48 57 126 163
--------------------- ---------------------
Total gas sales volumes - mmcf/d 14,860 9,048 13,398 8,654
</TABLE>
(a) Further operating information is shown on page 20.
The Gas and Power business stream which is reported separately from January 1,
2000 is responsible for BP's world-wide gas marketing activities and all
business development opportunities in natural gas, including gas-fired power
generation. The Gas and Power stream has responsibility for the shareholding in
Ruhrgas, BP's existing gas marketing and trading operations in the UK and North
America, and world-wide power development activities. Gas and Power has
established business development operations in Latin America, the Mediterranean,
the Caspian region, the Middle East, Northern Europe, China and the Asia-Pacific
region.
Replacement cost operating profit for the third quarter of 2000 was $48 million
compared with $57 million a year ago. The nine months result was $126 million
compared to $163 million for 1999. The 2000 results reflect improved performance
from higher gas sales volumes, more than offset by increased business
development costs and lower Ruhrgas income. Gas sales volumes for the three
months ended September 30, 2000 increased by 64% (a 28% increase excluding the
effect of acquisitions).
The following table summarizes changes in gas sales volumes between 1999 and
2000. In order to present a meaningful comparison against 1999, the table
adjusts the reported gas sales volumes for 2000 to exclude the contribution from
significant acquisitions.
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
--------------------- ---------------------
(million cubic feet per day)
<S> <C> <C>
BP 1999 gas sales volumes as reported (A) 9,048 8,654
===================== =====================
BP 2000 gas sales volumes as reported (B) 14,860 13,398
Less: acquisitions (C)
ARCO (2,041) (2,065)
Progas (1,234) (1,245)
--------------------- ---------------------
(3,275) (3,310)
--------------------- ---------------------
BP 2000 gas sales volumes adjusted
for acquisitions (D) [D=B-C] 11,585 10,088
===================== =====================
Increase 2000 against 1999 (D-A) 2,537 1,434
===================== =====================
% increase 28% 17%
</TABLE>
During the quarter regulatory approval was received for the purchase of IGI
Resources, a US natural gas and power trading and transportation business.
In the UK, BP became the first company to provide an emissions credits
management service to a major energy user - Imerys (formerly English China
Clay), as part of a wider energy management relationship.
In Spain, we established a leading new entrant position in the recently
liberalized market by winning some 5% share of the eligible industrial market.
We launched an integrated energy offer `Energia', in combination with BP's oil
marketing business.
In Texas, plans were announced to construct a major gas-fired co-generation
plant at Texas City, BP's largest refining and petrochemicals complex. Gas will
be supplied by BP with options for power marketing and trading. The refinery and
chemicals operations will benefit from greater efficiency with resultant lower
costs and significantly reduced emissions of nitrogen oxides in the Houston
area.
<PAGE>
Page 10
BP AMOCO p.l.c. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - continued
REFINING AND MARKETING
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000 1999
--------------------- ---------------------
<S> <C> <C> <C> <C>
Total replacement cost operating profit - $m 1,063 641 3,014 1,547
Special items - $m 110 21 251 71
Acquisition amortization - $m 170 - 234 -
--------------------- ---------------------
Pro forma operating result
adjusted for special items - $m 1,343 662 3,499 1,618
--------------------- ---------------------
Global Indicator Refining Margin* - $/bbl 4.83 1.99 3.99 1.42
Refinery throughputs - mb/d 3,113 2,506 2,858 2,524
Marketing sales - mb/d 4,010 3,151 3,580 3,158
</TABLE>
* The Global Indicator Refining Margin (GIM) is the average of seven 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.
(a) Further operating information is shown on page 20.
Replacement cost operating profits for the three months and nine months ended
September 30, 2000 there were $1,063 million and $3,014 million respectively.
This compares with $641 million and $1,547 million for the same periods in 1999.
The results for both periods in 2000 include a contribution from ARCO for the
period from April 14, 2000, a contribution from Burmah Castrol for the period
from July 7, 2000 and reflect the full consolidation of the European Fuels
business from August 1, 2000. In addition, the results are after charging
special items of $110 million and depreciation and amortization arising from the
fixed assets revaluation adjustment and goodwill consequent upon the ARCO and
Burmah Castrol acquisitions of $170 million.
Special items in the three months ended September 30, 2000 comprised
rationalization costs post the BP/Amoco merger of $48 million, ARCO and Burmah
Castrol integration costs of $36 million and litigation costs of $26 million.
The special items for the nine months ended September 30, 2000 comprise $120
million for ARCO and Burmah Castrol integration costs, $105 million for
rationalization costs post the BP/Amoco merger, and $26 million for litigation
costs.
The special items in 1999 related principally to BP/Amoco merger integration
costs.
The pro forma result adjusted for special items for the third quarter was $1,343
million and for the nine months $3,499 million, both significantly up on a year
ago.
The main reasons for the improved results for both the three months and nine
months ended September 30, 2000 compared to last year were higher refining
margins, continuing cost reductions and contributions from ARCO and Burmah
Castrol. Refining margins were stronger in all regions. Marketing margins
remained under pressure due to the inability to pass through high product prices
in fiercely competitive markets, which was exacerbated by fuel tax protests in
the UK and elsewhere in Europe. Excluding ARCO and the Mobil European Fuels JV
acquisition effects, shop sales in the quarter were 10% higher than a year ago.
The quarter on quarter comparison also benefited from higher refinery
throughputs, mainly driven by fewer turnarounds.
The Burmah Castrol acquisition was completed on 7th July. In addition, the final
agreement on the acquisition of the Mobil European Fuels JV share was completed
in August. These changes are reflected in reported volumes shown on the
following page.
The sale to Tosco Corporation of the Alliance refinery, located in Belle Chasse,
Louisiana, was completed in September.
On November 15, 2000 BP announced that it intended to sell three of its US
refineries and their associated facilities in line with the Company's global
refining strategy outlined in July, 2000. The three refineries - Salt Lake City
in Utah, Mandan in North Dakota and Yorktown in Virginia - have a combined
capacity of 177,000 barrels a day. The refineries will continue to operate
normally during the sales process. It is anticipated that the sales process will
be completed by mid-2001.
<PAGE>
Page 11
BP AMOCO p.l.c. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - continued
The following table summarises changes in refinery throughputs and marketing
sales volumes between 1999 and 2000. In order to present a meaningful comparison
against 1999, the table adjusts the reported amounts in 1999 and 2000 to exclude
the contribution from significant acquisitions and divestments.
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
Refinery Marketing Refinery Marketing
Throughputs Sales Throughputs Sales
----------- --------- ----------- ---------
(mb/d) (mb/d)
<S> <C> <C> <C> <C>
BP 1999 as reported (A) 2,506 3,151 2,524 3,158
Alliance divestment (B) (262) - (255) -
----------- ----------- ----------- -----------
BP 1999 adjusted for divestments (C) [C=A-B] 2,244 3,151 2,269 3,158
=========== =========== =========== ===========
BP and ARCO 2000 as reported (D) 3,113 4,010 2,858 3,581
Net acquisitions and divestments (E)
ARCO (468) (463) (292) (298)
Mobil share of European fuels JV (179) (208) (61) (70)
Burmah Castrol - (34) - (11)
Alliance (193) - (228) -
----------- ----------- ----------- -----------
(840) (705) (581) (379)
----------- ----------- ----------- -----------
BP 2000 adjusted for acquisitions 2,273 3,305 2,277 3,202
and divestments (F) [F=D-E]
=========== =========== =========== ===========
Increase 2000 against 1999 (F-C) 29 154 8 44
=========== =========== =========== ===========
% increase 1% 5% - 1%
</TABLE>
<PAGE>
Page 12
BP AMOCO p.l.c. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - continued
CHEMICALS
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000 1999
--------------------- ---------------------
<S> <C> <C> <C> <C>
Total replacement cost operating profit - $m 263 143 842 547
Special items - $m 4 50 54 120
Acquisition amortization - $m - - - -
--------------------- ---------------------
Pro forma operating result
adjusted for special items - $m 267 193 896 667
--------------------- ---------------------
Chemicals Indicator Margin* - $/te 137 108 130 108
Production volumes - kte 5,488 5,479 16,680 16,137
</TABLE>
* The Chemicals Indicator Margin (CIM) is a weighted average of
externally-based product margins. It is based on market data collected by
Chem Systems in their quarterly market analyses, then weighted based on BP's
product portfolio. While it does not cover our entire portfolio, it includes
a broader range of products than our previous indicator. Among the products
and businesses covered in the CIM are the olefins and derivatives, the
aromatics and derivatives, linear alpha-olefins, acetic acid, vinyl acetate
monomer and nitriles. Not included are Fabrics and Fibres, plastic
fabrications, poly alpha-olefins, anhydrides, Engineering Polymers and Carbon
Fibres, speciality intermediates, and the remaining parts of the solvents and
acetyls businesses.
(a)Further operating information is shown on page 20.
Replacement cost operating profits for the three months and nine months ended
September 30, 2000 were $263 million and $842 million including special items of
$4 million and $54 million respectively. For the corresponding periods in 1999
the replacement cost operating profits were $143 million (including special
items of $50 million) and $547 million (including special items of $120
million). The special items for the nine months ended September 30, 2000 mainly
comprise an asset writedown. The special items in 1999 related to litigation
settlement and integration costs arising from the BP/Amoco merger.
The quarter's pro forma result adjusted for special items was $267 million, down
from $370 million in the second quarter. This reflected margin pressure from
higher feedstock costs and unscheduled plant shutdowns at Grangemouth, Scotland.
The third quarter and nine months results were up on a year ago, with generally
better margins, despite the euro being some 15% weaker and lower costs.
Chemicals' production was 5,488 ktes in the third quarter. This was similar to
the previous quarter and third quarter last year. For the nine months ended
September 30, 2000 production was up 3% compared with 1999.
In September, BP signed a memorandum of understanding for a joint venture
purified terephthalic acid (PTA) plant in China. The unit is expected to be
built at the Caojing chemical industry park near Shanghai, where BP and Sinopec
subsidiary Shanghai Petrochemical (SPC) are planning an olefins complex.
<PAGE>
Page 13
BP AMOCO p.l.c. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - continued
OTHER BUSINESSES AND CORPORATE
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000 1999
--------------------- ---------------------
<S> <C> <C> <C> <C>
Replacement cost operating loss - $m (216) (176) (742) (486)
Special items - $m 86 81 252 158
Acquisition amortization - $m - - - -
--------------------- ---------------------
Pro forma operating result
adjusted for special items - $m (130) (95) (490) (328)
--------------------- ---------------------
</TABLE>
Other Businesses and Corporate comprises Finance, BP Solar, the Group's coal and
aluminium assets, its investment in PetroChina, interest income and costs
relating to corporate activities worldwide. Replacement cost operating loss for
the three months ended September 30, 2000 was $216 million (including special
items of $86 million) and $742 million for the nine months ended September 30,
2000 (including special items of $252 million). There were special items of $81
million and $158 million for the three months and nine months ended September
30, 1999 in respect of BP/Amoco merger integration costs.
The special items in 2000 primarily comprised $132 million of costs arising from
ARCO integration activities and $118 million related to rationalization
activities post the BP/Amoco merger.
BP Solar production and shipments in the quarter and nine months showed
continuing growth, with the third quarter up 30% on a year ago and the nine
months up by 27%. Capacity is being expanded to meet further anticipated growth
in sales.
EXCEPTIONAL ITEMS
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000 1999
--------------------- ---------------------
<S> <C> <C> <C> <C>
Profit (loss) on sale of fixed assets and
businesses and termination of operations - $m 138 (317) 142 (58)
Restructuring costs - $m - (184) - (1,687)
Taxation credit (charge) - $m (278) (37) (386) 184
--------------------- ---------------------
Exceptional items after taxation - $m (140) (538) (244) (1,561)
--------------------- ---------------------
</TABLE>
(a) For further information on exceptional items see Note 7 of Notes to
Consolidated Financial Statements.
Exceptional items before taxation for the third quarter of 2000 primarily
represent the profit on sale of the Alliance Refinery. In addition, exceptional
items before taxation for the nine months include the profit on sale of BP's
interest in Altura Energy, the losses on sale of certain Venezuelan upstream
interests and the subvention of Singapore Aromatics Company bank loans.
OUTLOOK
Overall, the outlook for the rest of the year continues to be broadly positive.
Crude prices reflect robust demand, though are likely to be volatile on market
sentiment. Low stocks are likely to continue to support the market. Natural gas
prices remain strong and are likely to be underpinned by seasonal demand. Low
product stocks are likely to continue to underpin refining margins, though
marketing margins may remain under pressure. Underlying demand for chemicals
remains unchanged but margins are likely to come under pressure due to
increasing supply, with continuing high oil prices and euro weakness.
Implementation of our strategy continues. Disciplined investment will lead to
top-line growth. Cost reductions and portfolio improvements continue to improve
underlying returns.
<PAGE>
Page 14
BP AMOCO p.l.c. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS - continued
FORWARD-LOOKING STATEMENTS
In order to utilize the 'Safe Habor' provisions of the United States Private
Securities Litigation Reform Act of 1995, BP is providing the following
cautionary statement: The foregoing discussion, in particular the statements
under `Outlook', focuses on certain trends and general market and economic
conditions and outlook on production levels or rates, prices, margins and
currency exchange rates and, as such, are forward-looking statements that
involve risk and uncertainty that could cause actual results and developments to
differ materially from those expressed or implied by this discussion. By their
nature, trends and outlook on production, price, margin and currency exchange
rates are difficult to forecast with any precision, and there are a number of
factors that could cause actual results and developments to differ materially
from those expressed or implied by these forward-looking statements including
future levels of industry product supply, demand and pricing; currency exchange
rates; political stability and economic growth in relevant areas of the world;
development and use of new technology and successful partnering; the actions of
competitors, natural disasters and other changes to business conditions.
Additional information, including information on factors which may affect BP
Amoco's business, is contained in BP Amoco's Annual Report and Accounts for 1999
and in the Annual Report on Form 20-F for 1999 filed with the US Securities and
Exchange Commission.
2000 DIVIDENDS
On November 7, 2000, BP Amoco p.l.c. announced a third quarterly dividend for
2000 of 5.25 cents per Ordinary Share of 22,596.9 million (Ordinary Shares),
representing $0.315 per American Depositary Share (ADS) amounting to $1,185
million in total. The record date for qualifying US resident holders of American
Depositary Shares as well as holders of Ordinary Shares was November 17, 2000,
with payment to be made on December 11, 2000.
The dividend payable on December 11, 2000 entitles qualifying ADS shareholders
to a refund of the 1/9th UK tax credit (approximately $0.033) attaching to the
dividend less a UK withholding tax limited to the amount of the tax credit. The
effect of these arrangements for ADS holders is currently a cash payment of
$0.300, a gross dividend for tax purposes of $0.333 and a potential tax credit
of $0.033 per ADS.
There is a Dividend Reinvestment Plan whereby holders of Ordinary Shares can
elect to reinvest the net cash dividend in shares purchased on the London Stock
Exchange. This plan is not available to any person resident in the USA or
Canada, or in any jurisdiction outside the UK where such an offer requires
compliance by the Company with any governmental or regulatory procedures or any
similar formalities.
A dividend reinvestment facility is, however, available for holders of ADRs
through the Direct Access Plan of Morgan Guaranty Trust Company of New York.
Participants in the Dividend Reinvestment Plan or the dividend reinvestment
facility included in the US Direct Access Plan will receive the dividend in the
form of shares on December 11, 2000.
<PAGE>
Page 15
BP AMOCO p.l.c. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000 1999
--------------------- ---------------------
($ million, except per share amounts)
<S> <C> <C> <C> <C>
Turnover - Note 2 44,862 26,665 116,980 67,588
Less: joint ventures 2,231 4,707 13,480 11,972
------- ------- ------- -------
Group turnover 42,631 21,958 103,500 55,616
Replacement cost of sales 35,250 17,787 84,472 45,141
Production taxes - Note 3 511 292 1,497 649
------- ------- ------- -------
Gross profit 6,870 3,879 17,531 9,826
Distribution and administration expenses 2,466 1,353 5,660 4,458
Exploration expense - Note 4 143 141 442 437
------- ------- ------- -------
4,261 2,385 11,429 4,931
Other income 95 104 533 373
------- ------- ------- -------
Group replacement cost operating profit 4,356 2,489 11,962 5,304
Share of profits of joint ventures 261 203 716 474
Share of profits of associated undertakings 193 156 532 391
------- ------- ------- -------
Total replacement cost operating profit - Notes 5 and 6 4,810 2,848 13,210 6,169
Profit (loss) on sale of fixed assets and 138 (317) 142 (58)
businesses - Note 7
Restructuring costs - Note 7 - (184) - (1,687)
------- ------- ------- -------
Replacement cost profit before interest and tax - Note 5 4,948 2,347 13,352 4,424
Inventory holding gains - Note 9 544 643 1,289 1,222
------- ------- ------- -------
Historical cost profit before interest and tax 5,492 2,990 14,641 5,646
Interest expense - Note 10 460 355 1,159 987
------- ------- ------- -------
Profit before taxation 5,032 2,635 13,482 4,659
Taxation - Note 11 1,554 738 3,730 1,267
------- ------- ------- -------
Profit after taxation 3,478 1,897 9,752 3,392
Minority shareholders' interest 16 49 106 85
------- ------- ------- -------
Profit for the period 3,462 1,848 9,646 3,307
======= ======= ======= =======
Earnings per Ordinary Share - cents (a)
Basic 15.36 9.53 45.19 17.06
Diluted 15.26 9.48 44.88 16.97
------- ------- ------- -------
Earnings per American depositary share - cents (a)
Basic 92.16 57.18 271.14 102.36
Diluted 91.56 56.88 269.28 101.82
------- ------- ------- -------
Average number of outstanding Ordinary Shares (millions) 22,597 19,402 21,343 19,376
======= ======= ======= =======
</TABLE>
---------------
(a) A summary of the material adjustments to profit for the period which would
be required if generally accepted accounting principles in the United
States had been applied instead of those generally accepted in the United
Kingdom is given in Note 16.
<PAGE>
Page 16
BP AMOCO p.l.c. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
<TABLE>
<CAPTION>
September 30, 2000 December 31, 1999
(Unaudited)
($ million)
<S> <C> <C> <C> <C>
Fixed assets
Intangible assets 19,045 3,344
Tangible assets 70,792 52,631
Investments 11,722 10,109
-------- --------
101,559 66,084
Current assets
Inventories 9,444 5,124
Receivables 24,754 16,802
Business held for disposal 805 -
Investments 862 220
Cash at bank and in hand 1,607 1,331
-------- --------
37,472 23,477
-------- --------
Current liabilities - falling due within one year
Finance debt 3,586 4,900
Accounts payable and accrued liabilities 31,131 18,375
-------- --------
34,717 23,275
-------- --------
Net current assets 2,755 202
-------- --------
Total assets less current liabilities 104,314 66,286
Noncurrent liabilities
Finance debt 16,102 9,644
Accounts payable and accrued liabilities 2,365 2,245
Provisions for liabilities and charges 12,174 10,055
-------- --------
30,641 21,944
-------- --------
Net assets 73,673 44,342
Minority shareholders' interest 597 1,061
-------- --------
BP Amoco shareholders' interest (a) - Note 15 73,076 43,281
======== ========
Represented by:
Capital shares
Preference 21 21
Ordinary 5,649 4,871
Paid-in surplus 3,732 3,684
Retained earnings 36,349 34,008
Merger and other reserve 27,325 697
-------- --------
73,076 43,281
======== ========
</TABLE>
---------------
(a) A summary of the material adjustments to BP Amoco shareholders' interest
which would be required if generally accepted accounting principles in the
United States had been applied instead of those generally accepted in the
United Kingdom is given in Note 16.
<PAGE>
Page 17
BP AMOCO p.l.c. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASHFLOWS
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000 1999
--------------------- ---------------------
($ million)
<S> <C> <C> <C> <C>
Net cash inflow from operating activities 6,476 2,689 14,484 5,847
------- ------- ------- -------
Dividends from joint ventures 118 371 645 813
------- ------- ------- -------
Dividends from associated undertakings 100 25 274 168
------- ------- ------- -------
Servicing of finance and returns on investments
Interest received 195 33 344 115
Interest paid (315) (209) (883) (806)
Dividends received 9 8 12 28
Dividends paid to minority shareholders (12) (49) (20) (145)
------- ------- ------- -------
Net cash outflow from servicing of finance
and returns on investments (123) (217) (547) (808)
------- ------- ------- -------
Taxation
UK corporation tax (177) (48) (441) (179)
Overseas tax (2,532) (400) (3,758) (462)
------- ------- ------- -------
Tax paid (2,709) (448) (4,199) (641)
------- ------- ------- -------
Capital expenditure
Payments for fixed assets (2,226) (1,473) (6,412) (4,666)
Proceeds from the sale of fixed assets 1,524 419 2,112 858
------- ------- ------- -------
Net cash outflow for capital expenditure (702) (1,054) (4,300) (3,808)
------- ------- ------- -------
Acquisitions and disposals
Investments in associated undertakings (456) (2) (897) (141)
Acquisitions (5,328) (4) (6,197) (49)
Net investment in joint ventures (95) (226) (218) (495)
Proceeds from the sale of businesses 1,106 196 7,931 288
------- ------- ------- -------
Net cash inflow (outflow) for acquisitions and disposals (4,773) (36) 619 (397)
------- ------- ------- -------
Equity dividends paid (1,128) (967) (3,232) (3,164)
------- ------- ------- -------
Net cash inflow (outflow) (2,741) 363 3,744 (1,990)
======= ======= ======= =======
Financing 920 227 4,462 (2,040)
Management of liquid resources (1,837) 55 102 (106)
Increase (decrease) in cash (1,824) 81 (820) 156
------- ------- ------- -------
(2,741) 363 3,744 (1,990)
======= ======= ======= =======
</TABLE>
---------------
(a) This cash flow statement has been prepared in accordance with UK GAAP. A
cash flow statement prepared on the basis of US GAAP is included in Note
16.
<PAGE>
Page 18
BP AMOCO p.l.c. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASHFLOWS - continued
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000 1999
--------------------- ---------------------
($ million)
<S> <C> <C> <C> <C>
Reconciliation of historical cost profit before interest
and tax to net cash inflow from operating activities
Historical cost profit before interest and tax 5,492 2,990 14,641 5,646
Depreciation and amounts provided 1,978 1,197 5,004 3,593
Exploration expenditure written off 51 135 191 270
Share of profits of joint ventures and
associated undertakings + (515) (568) (1,503) (1,307)
Interest and other income (121) (53) (281) (166)
(Profit) loss on sale of fixed assets and businesses (136) 308 (118) 102
Charge for provisions 382 144 819 623
Utilization of provisions (360) (61) (693) (271)
(Increase) decrease in stocks (398) (586) (1,264) (1,190)
(Increase) decrease in debtors (49) (350) (3,635) (2,138)
(Decrease) increase in creditors 152 (467) 1,323 685
------- ------- ------- -------
Net cash inflow from operating activities 6,476 2,689 14,484 5,847
======= ======= ======= =======
Financing
Long-term borrowing (244) (303) (1,784) (1,969)
Repayments of long-term borrowing 589 603 1,169 1,954
Short-term borrowing (803) (164) (1,485) (2,819)
Repayments of short-term borrowing 926 143 5,125 1,012
------- ------- ------- -------
468 279 3,025 (1,822)
Issue of ordinary share capital (102) (52) (241) (218)
Repurchase of share capital 554 - 1,383 -
Stamp duty reserve tax - - 295 -
------- ------- ------- -------
Net cash outflow (inflow) from financing 920 227 4,462 (2,040)
======= ======= ======= =======
---------------
+ Includes the following amounts of depreciation
for the BP/Mobil European JV 24 77 172 227
======= ======= ======= =======
</TABLE>
(a) This cash flow statement has been prepared in accordance with UK GAAP. A
cash flow statement prepared on the basis of US GAAP is included in Note
16.
<PAGE>
Page 19
BP AMOCO p.l.c. AND SUBSIDIARIES
CAPITAL EXPENDITURE AND ACQUISITIONS
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000 1999
--------------------- ---------------------
($ million)
<S> <C> <C> <C> <C>
By business
Exploration and Production
UK 159 135 599 582
Rest of Europe 50 44 110 57
USA 1,082 318 2,282 1,080
Rest of World 562 277 1,267 1,087
------- ------- ------- -------
1,853 774 4,258 2,806
------- ------- ------- -------
Gas and Power
UK* 78 - 108 -
Rest of Europe 1 - 3 -
USA* 35 - 63 3
Rest of World - 1 4 2
------- ------- ------- -------
114 1 178 5
------- ------- ------- -------
Refining and Marketing
UK ~ # 4,098 47 5,016 122
Rest of Europe # 1,275 134 1,384 310
USA 32 151 445 435
Rest of World 99 67 279 177
------- ------- ------- -------
5,504 399 7,124 1,044
------- ------- ------- -------
Chemicals
UK 122 133 410 296
Rest of Europe 28 51 95 183
USA 92 65 183 212
Rest of World 60 70 385 147
------- ------- ------- -------
302 319 1,073 838
------- ------- ------- -------
Other businesses and corporate + 1,814 118 2,514 226
------- ------- ------- -------
9,587 1,611 15,147 4,919
======= ======= ======= =======
By geographical area
UK 4,547 355 6,872 1,075
Rest of Europe 1,354 234 1,598 557
USA 2,965 606 4,735 1,872
Rest of World 721 416 1,942 1,415
------- ------- ------- -------
9,587 1,611 15,147 4,919
======= ======= ======= =======
Includes the following amounts for the
BP/Mobil European joint venture 29 175 170 409
======= ======= ======= =======
</TABLE>
* The three months and nine months ended September 30, 2000 include
$63 million for the first instalment on two LNG ships.
~ The three months ended September 30, 2000 includes $3,817 million and the
nine months ended September 30, 2000 includes $4,686 million for the
purchase of Burmah Castrol's issued share capital.
# The three months and nine months ended September 30, 2000 include
$1,450 million for the acquisition of the Mobil share of the European Joint
Venture.
+ The three months and nine months ended September 30, 2000 include
$1,688 million for the acquisition of the minority interest in Vastar.
<PAGE>
Page 20
BP AMOCO p.l.c. AND SUBSIDIARIES
OPERATING INFORMATION
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000* 1999
--------------------- ---------------------
($ million)
<S> <C> <C> <C> <C>
Crude oil and natural gas liquids production
(thousand barrels per day), (net of royalties)
UK 521 564 540 572
Rest of Europe 86 100 89 101
USA 691 791 730 800
Rest of World 604 592 568 592
------- ------- ------- -------
Total crude oil and liquids production 1,902 2,047 1,927 2,065
======= ======= ======= =======
Natural gas production (million cubic feet per day)
UK 1,340 1,040 1,571 1,219
Rest of Europe 104 112 129 166
USA 3,362 2,359 2,950 2,391
Rest of World 2,991 2,406 2,619 2,201
------- ------- ------- -------
Total natural gas production 7,797 5,917 7,269 5,977
======= ======= ======= =======
Gas sales volumes (million cubic feet per day)
UK 2,289 1,326 2,360 1,627
Rest of Europe 151 117 162 169
USA 6,845 4,252 5,960 3,848
Rest of World 5,575 3,353 4,916 3,010
------- ------- ------- -------
Total gas sales volumes 14,860 9,048 13,398 8,654
======= ======= ======= =======
Refinery throughputs (thousand barrels per day)
UK 359 245 302 268
Rest of Europe 627 532 560 538
USA 1,765 1,376 1,637 1,345
Rest of World 362 353 359 373
------- ------- ------- -------
Total refinery throughput 3,113 2,506 2,858 2,524
======= ======= ======= =======
Oil sales volumes (thousand barrels per day)
Refined products
UK** 276 236 242 235
Rest of Europe** 981 787 843 786
USA 2,106 1,552 1,868 1,536
Rest of World 647 576 627 601
------- ------- ------- -------
Total marketing sales 4,010 3,151 3,580 3,158
Trading/supply sales 1,843 1,549 1,845 1,751
------- ------- ------- -------
Total refined product sales 5,853 4,700 5,425 4,909
Crude oil 5,725 5,883 6,164 4,668
------- ------- ------- -------
Total oil sales 11,578 10,583 11,589 9,577
======= ======= ======= =======
Chemicals production+ (thousand tonnes)
UK 779 914 2,304 2,830
Rest of Europe 1,680 1,475 5,012 4,391
USA 2,438 2,487 7,619 7,274
Rest of World 591 603 1,745 1,642
------- ------- ------- -------
Total production 5,488 5,479 16,680 16,137
======= ======= ======= =======
</TABLE>
* The daily average operating information for the nine months ended September
30, 2000 includes ARCO with effect from April 14.
** Includes the total European fuels business with effect from August 1, 2000.
+ Includes BP share of associated undertakings and other interests in
production.
<PAGE>
Page 21
BP AMOCO p.l.c. AND SUBSIDIARIES
ENVIRONMENTAL INDICATORS
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000 1999
--------------------- ---------------------
<S> <C> <C> <C> <C>
Average oil realizations - $/bbl
UK 28.46 19.86 27.01 15.17
USA 27.44 18.18 25.22 14.02
Rest of World 27.54 19.32 26.15 14.80
BP average 27.84 19.17 26.13 14.68
Average natural gas realizations - $/mcf
UK 2.33 1.96 2.18 2.19
USA 3.87 2.37 3.17 1.97
Rest of World 2.29 1.59 2.11 1.54
BP average 3.01 1.99 2.57 1.87
Henry Hub gas price ($/mcf) ** 4.27 2.60 3.42 2.17
Global Indicator Refining Margins *- $/bbl
NWE 3.44 1.84 3.26 1.29
USGG 3.62 2.24 3.92 1.56
USWC 12.54 n/a 8.31 n/a
Singapore 3.19 1.24 2.08 0.74
BP average 4.83 1.99 3.99 1.42
Chemicals Indicator Margin+ - $/te 137 108 130 108
</TABLE>
* The Global Indicator Refining Margin (GIM) is the average of seven regional
indicator margins weighted for BP's crude refining capacity in each region.
Each regional indicator margin is based on a single representative crude with
product yields characteristic of the typical level of upgrading complexity.
** Henry Hub first of month index.
+ The Chemicals Indicator Margin (CIM) is a weighted average of
externally-based product margins. It is based on market data collected by
Chem Systems in their quarterly market analyses, then weighted based on BP's
product portfolio. While it does not cover our entire portfolio, it includes
a broader range of products than our previous indicator. Among the products
and businesses covered in the CIM are the olefins and derivatives, the
aromatics and derivatives, linear alpha-olefins, acetic acid, vinyl acetate
monomer and nitriles. Not included are Fabrics and Fibres, plastic
fabrications, poly alpha-olefins, anhydrides, Engineering Polymers and Carbon
Fibres, speciality intermediates, and the remaining parts of the solvents and
acetyls businesses.
The rates used in preparing these Financial Statements are shown below:
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000 1999
--------------------- ---------------------
<S> <C> <C> <C> <C>
US dollar/Sterling exchange rates
Average rates for the period 1.48 1.60 1.54 1.61
Period-end rates 1.46 1.65 1.46 1.65
======= ======= ======= =======
</TABLE>
<PAGE>
Page 22
BP AMOCO p.l.c. AND SUBSIDIARIES
SPECIAL ITEMS AND ACQUISITION AMORTIZATION BY SEGMENT (PRE-TAX)
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000 1999
--------------------- ---------------------
($ million)
<S> <C> <C> <C> <C>
Special Items
Exploration and Production
UK 42 18 112 61
Rest of Europe - 1 - 9
USA 135 120 287 177
Rest of World 15 3 76 9
------- ------- ------- -------
192 142 475 256
------- ------- ------- -------
Gas and Power
UK - - - -
Rest of Europe - - - -
USA - - - -
Rest of World - - - -
------- ------- ------- -------
- - - -
------- ------- ------- -------
Refining and Marketing
UK 14 1 14 17
Rest of Europe 22 - 51 -
USA 58 15 170 48
Rest of World 16 5 16 6
------- ------- ------- -------
110 21 251 71
------- ------- ------- -------
Chemicals
UK 2 16 5 42
Rest of Europe 1 6 2 41
USA 1 24 47 32
Rest of World - 4 - 5
------- ------- ------- -------
4 50 54 120
------- ------- ------- -------
Other businesses and corporate
UK 37 47 56 77
Rest of Europe - - - 2
USA 49 34 196 78
Rest of World - - - 1
------- ------- ------- -------
86 81 252 158
======= ======= ======= =======
Total 392 294 1,032 605
======= ======= ======= =======
Acquisition Amortization
Exploration and Production
UK 16 - 22 -
USA 277 - 504 -
Rest of World 19 - 39 -
------- ------- ------- -------
312 - 565 -
------- ------- ------- -------
Refining and Marketing
UK 95 - 95 -
USA 75 - 139 -
------- ------- ------- -------
170 - 234 -
======= ======= ======= =======
Total 482 - 799 -
======= ======= ======= =======
</TABLE>
<PAGE>
Page 23
BP AMOCO p.l.c. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. The results for the interim periods are unaudited and in the opinion of
management include all adjustments necessary for a fair presentation of the
results for the periods presented. The interim financial statements and notes
included in this Report should be read in conjunction with the consolidated
financial statements and related notes for the year ended December 31, 1999
included in BP Amoco's Annual Report on Form 20-F filed with the Securities
and Exchange Commission.
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000 1999
--------------------- ---------------------
($ million)
<S> <C> <C> <C> <C>
2. Turnover
By business
Exploration and Production 8,195 5,678 21,977 13,503
Gas and Power 4,237 1,359 9,182 3,728
Refining and Marketing 32,555 16,697 78,453 40,852
Chemicals 2,798 2,297 8,493 6,668
Other businesses and corporate 106 39 198 114
------- ------- ------- -------
47,891 26,070 118,303 64,865
Less: sales between businesses 5,260 4,112 14,803 9,249
------- ------- ------- -------
Group excluding joint ventures 42,631 21,958 103,500 55,616
Sales of joint ventures 2,231 4,707 13,480 11,972
------- ------- ------- -------
44,862 26,665 116,980 67,588
======= ======= ======= =======
By geographical area
UK 11,956 8,139 33,418 19,331
Rest of Europe 5,603 1,561 9,336 4,219
USA 21,513 10,255 52,061 25,928
Rest of World 8,271 5,235 21,608 12,937
------- ------- ------- -------
47,343 25,190 116,423 62,415
Less: Sales between areas 4,712 3,232 12,923 6,799
------- ------- ------- -------
Group excluding joint ventures 42,631 21,958 103,500 55,616
======= ======= ======= =======
Sales of joint ventures
UK 540 1,155 3,314 2,738
Rest of Europe 1,951 4,428 12,316 10,945
USA 24 36 183 87
Rest of World 240 90 489 249
------- ------- ------- -------
2,755 5,709 16,302 14,019
Less: sales between areas 524 1,002 2,822 2,047
------- ------- ------- -------
2,231 4,707 13,480 11,972
======= ======= ======= =======
3. Production taxes
UK petroleum revenue tax 171 72 545 154
Overseas production taxes 340 220 952 495
------- ------- ------- -------
511 292 1,497 649
======= ======= ======= =======
4. Exploration expense
Exploration and Production
UK - 16 23 36
Rest of Europe 20 - 32 35
USA 60 65 185 115
Rest of World 63 60 202 251
------- ------- ------- -------
143 141 442 437
======= ======= ======= =======
</TABLE>
<PAGE>
Page 24
BP AMOCO p.l.c. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued
5. Replacement cost profit
Replacement cost profits reflect the current cost of supplies. The
replacement cost profit for the period is arrived at by excluding from the
historical cost profit inventory holding gains and losses. These are the
difference between the amount that is charged to cost of sales on a first-in,
first-out (FIFO) basis of inventory valuation and the amount charged to cost
of sales based on the average cost of supplies incurred during the period.
The former basis is used in arriving at the historical cost result whereas
the latter basis is used in arriving at the replacement cost result. For
further discussion of replacement cost operating profit see Item 8 of BP
Amoco's Annual Report on Form 20-F for the year ended December 31, 1999.
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000 1999
--------------------- ---------------------
($ million)
<S> <C> <C> <C> <C>
6. Total replacement cost operating profit
By business
Exploration and Production
UK 1,010 673 2,994 1,449
Rest of Europe 221 163 594 312
USA 1,342 597 3,617 1,214
Rest of World 1,079 750 2,765 1,423
------- ------- ------- -------
3,652 2,183 9,970 4,398
------- ------- ------- -------
Gas and Power
UK 14 4 13 12
Rest of Europe 28 44 94 125
USA 5 3 15 9
Rest of World 1 6 4 17
------- ------- ------- -------
48 57 126 163
------- ------- ------- -------
Refining and Marketing
UK 72 102 253 147
Rest of Europe 233 91 399 249
USA 615 305 1,895 750
Rest of World 143 143 467 401
------- ------- ------- -------
1,063 641 3,014 1,547
------- ------- ------- -------
Chemicals
UK (17) (1) (81) 15
Rest of Europe 75 8 271 90
USA 161 124 525 386
Rest of World 44 12 127 56
------- ------- ------- -------
263 143 842 547
------- ------- ------- -------
Other businesses and corporate (216) (176) (742) (486)
------- ------- ------- -------
4,810 2,848 13,210 6,169
======= ======= ======= =======
By geographical area
UK 1,021 668 2,981 1,412
Rest of Europe 578 350 1,405 823
USA 1,957 930 5,463 2,041
Rest of World 1,254 900 3,361 1,893
------- ------- ------- -------
4,810 2,848 13,210 6,169
======= ======= ======= =======
Includes the following amounts for joint
ventures and associated undertakings 476 359 1,248 865
======= ======= ======= =======
</TABLE>
<PAGE>
Page 25
BP AMOCO p.l.c. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000 1999
--------------------- ---------------------
($ million)
<S> <C> <C> <C> <C>
7. Analysis of exceptional items
Profit (loss) on sale of fixed assets
and businesses
Exploration and Production 9 (419) 215 (420)
Gas and Power - - - -
Refining and Marketing 160 12 184 115
Chemicals (30) 89 (240) 253
Other businesses and corporate (1) 1 (17) (6)
------- ------- ------- -------
138 (317) 142 (58)
Restructuring costs - (184) - (1,687)
------- ------- ------- -------
Total exceptional items before taxation 138 (501) 142 (1,745)
------- ------- ------- -------
Includes the following amounts for joint
ventures and associated undertakings 2 (11) 24 36
======= ======= ======= =======
</TABLE>
8. Restructuring and integration costs
During the year ended December 31, 1999 BP Amoco recognized exceptional
charges before tax of $1,943 million for restructuring costs. The
restructuring costs arose from restructuring activity across the Group
following the merger of BP and Amoco at the end of 1998 and relate
predominantly to the Group's US operations. The main areas of activity were
the elimination of duplication in the former BP and Amoco operations and
ongoing restructuring to adapt to the changing business environment, and some
further outsourcing. The major elements of the restructuring charges
comprised employee severance costs ($1,212 million) and provisions to cover
future rental payments on surplus leasehold office accommodation and other
property ($297 million). Also included in the restructuring charges were
office closure costs, contract termination payments and asset write-offs. The
cash outflow for these restructuring charges during 1999 was $976 million.
During the first nine months of 2000 the cash outflow for restructuring
charges totalled $261 million.
During 1999, some 16,000 employees left the Group through severance or
outsourcing arrangements. Of these, some 13,000 were based in the USA. The
reductions arose mainly in Houston, Texas; Chicago, Illinois; and Cleveland
and Warrensville, Ohio. Approximately 4,000 more employees had received
notification of the termination of their employment by the end of 1999 and
are expected to leave the Group in 2000. In the nine months ended September
30, 2000 some 2,200 employees left the Group.
During the nine months ended September 30, 2000 following the combination of
BP and ARCO, integration costs of $578 million including severance costs of
$347 million and provisions against surplus properties of $88 million were
recognized. Approximately 2,000 ARCO and Vastar employees, mainly in the USA,
have been notified of the termination of their employment. By the end of
September approximately 1,150 employees had left the Group and approximately
$44 million of severance and ancillary benefits had been paid.
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000 1999
--------------------- ---------------------
($ million)
<S> <C> <C> <C> <C>
9. Inventory holding gains (losses)
Exploration and Production 3 (3) 5 (13)
Gas and Power - - 22 -
Refining and Marketing 524 582 1,140 1,158
Chemicals 17 64 122 77
------- ------- ------- -------
544 643 1,289 1,222
======= ======= ======= =======
Includes the following amounts for joint
ventures and associated undertakings 37 220 231 406
======= ======= ======= =======
</TABLE>
<PAGE>
Page 26
BP AMOCO p.l.c. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000 1999
--------------------- ---------------------
($ million)
<S> <C> <C> <C> <C>
10.Interest expense
Group interest payable 384 285 950 784
Capitalized (32) (7) (77) (33)
------- ------- ------- -------
352 278 873 751
Joint ventures 24 13 59 44
Associated undertakings 36 31 98 96
Unwinding of discount on provisions 48 33 129 96
------- ------- ------- -------
460 355 1,159 987
======= ======= ======= =======
11.Charge for taxation
United Kingdom 269 165 873 353
Overseas 1,285 573 2,857 914
------- ------- ------- -------
1,554 738 3,730 1,267
======= ======= ======= =======
Includes the following amounts for joint
ventures and associated undertakings 50 25 128 75
======= ======= ======= =======
12.Return on Average Capital Employed
Replacement cost basis
RC profit before exceptional items 3,058 1,743 8,601 3,646
Interest 460 355 1,159 987
Minority shareholders' interest 16 49 106 85
------- ------- ------- -------
3,534 2,147 9,866 4,718
Average Capital Employed 96,278* 59,336 o 58,759
------- ------- ------- -------
ROACE 14.7% 14.5% o 16.1%
------- ------- ------- -------
Pro forma and special items adjustments
Acquisition amortization 482 - 799 -
Special items (post tax) 289 212 761 437
Average Capital Employed acquisition adjustment 21,426+ - o -
------- ------- ------- -------
ROACE - Pro forma basis adjusted for special items 23% 15.9% o 17.6%
------- ------- ------- -------
Historical cost basis
Historical cost profit after exceptional items 3,462 1,848 9,646 3,307
Interest 460 355 1,159 987
Minority shareholders' interest 16 49 106 85
------- ------- ------- -------
3,938 2,252 10,911 4,379
------- ------- ------- -------
ROACE 16.4% 15.2% o 14.9%
</TABLE>
* Based on an opening capital employed of $99,194 million (BP, ARCO and
Burmah Castrol) and closing capital employed of $93,361 million.
+ Based on the average pro forma adjustment for intangible and tangible
fixed assets (average of $21,714 million and $21,137 million).
o As the acquisition of ARCO was completed in April and of Burmah Castrol in
July, it is not meaningful to show ROACE for the nine months ended
September 30, 2000.
<PAGE>
Page 27
BP AMOCO p.l.c. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000 1999
--------------------- ---------------------
($ million)
<S> <C> <C> <C> <C>
13.Analysis of changes in net debt
Opening balance
Finance debt 19,187 15,850 14,544 13,755
Less: Cash 3,313 467 1,331 405
Current asset investments 2,616 304 220 470
------- ------- ------- -------
Opening net debt 13,258 15,079 12,993 12,880
------- ------- ------- -------
Closing balance
Finance debt 19,688 15,671 19,688 15,671
Less: Cash 1,607 536 1,607 536
Current asset investments 862 347 862 347
------- ------- ------- -------
Closing net debt 17,219 14,788 17,219 14,788
------- ------- ------- -------
Decrease (increase) in net debt (3,961) 291 (4,226) (1,908)
======= ======= ======= =======
Movement in cash/bank overdrafts (1,784) 81 (780) 156
Increase (decrease) in current asset investments (1,833) 55 106 (106)
Net cash outflow (inflow) from financing
(excluding share capital) 468 279 3,025 (1,822)
Other movements (59) (108) 25 (115)
ARCO net debt acquired - - (5,863) -
Burmah Castrol net debt acquired (716) - (716) -
------- ------- ------- -------
Movements in net debt before exchange effects (3,924) 307 (4,203) (1,887)
Exchange adjustments (37) (16) (23) (21)
------- ------- ------- -------
(Increase) decrease in net debt (3,961) 291 (4,226) (1,908)
======= ======= ======= =======
14.Net Debt Ratio - Net Debt: Net Debt + Equity
Gross debt 19,688 15,671 19,688 15,671
Cash and current asset investments 2,469 883 2,469 883
------- ------- ------- -------
Net debt 17,219 14,788 17,219 14,788
Equity 73,673 44,519 73,673 44,519
------- ------- ------- -------
Net debt ratio 19% 25% 19% 25%
Acquisition adjustment 21,137 - 21,137 -
------- ------- ------- -------
Net debt ratio - pro forma basis 25% 25% 25% 25%
======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
15.Movement in BP Amoco shareholders' interest $ million
(Unaudited)
<S> <C>
Balance at December 31, 1999 43,281
Profit for the period 9,646
Distribution to shareholders (3,447)
Currency translation differences (2,379)
Employee share schemes 247
Share buy-back (1,404)
ARCO acquisition 27,427
Share premium (295)
-------
Balance at September 30, 2000 73,076
=======
</TABLE>
<PAGE>
Page 28
BP AMOCO p.l.c. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued
16.US generally accepted accounting principles
The following is a summary of the adjustments to profit for the period and to
BP Amoco shareholders' interest which would be required if generally accepted
accounting principles in the United States (US GAAP) had been applied instead
of those generally accepted in the United Kingdom.
<TABLE>
<CAPTION>
Three months ended Nine months ended
Profit for the period September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000 1999
--------------------- ---------------------
($ million)
<S> <C> <C> <C> <C>
Profit as reported in the consolidated
statement of income 3,462 1,848 9,646 3,307
Adjustments:
Depreciation charge (138) 9 (258) 2
Decommissioning and environmental expense (48) (43) (214) (126)
Onerous property leases (9) - (21) 156
Interest expense 48 33 129 96
Deferred taxation 48 (407) (665) (393)
Other 14 5 45 14
------- ------- ------- -------
(85) (403) (984) (251)
------- ------- ------- -------
Profit for the period as adjusted
to accord with US GAAP 3,377 1,445 8,662 3,024
======= ======= ======= =======
Profit for the period as adjusted:
Per Ordinary Share - cents
Basic 14.97 7.45 40.58 15.61
Diluted 14.86 7.40 40.30 15.52
======= ======= ======= =======
Per American Depositary Share - cents (a)
Basic 89.82 44.70 243.48 93.66
Diluted 89.16 44.40 241.80 93.12
======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
BP Amoco shareholders' interest September 30, 2000 December 31,1999 (b)
(Unaudited)
($ million)
<S> <C> <C>
BP Amoco shareholders' interest as
reported in the consolidated balance sheet 73,076 43,281
Adjustments:
Fixed assets 7,111 1,237
Ordinary shares held for future awards to employees (347) (456)
Sale and leaseback of Chicago office building (413) (413)
Decommissioning and environmental provisions (459) (499)
Onerous property leases 124 139
Deferred taxation (14,024) (6,082)
Quarterly dividend 1,185 972
Pension liability adjustment (144) (144)
Other (139) (197)
-------- --------
(7,106) (5,443)
-------- --------
BP Amoco shareholders' interest as adjusted 65,970 37,838
to accord with US GAAP
======== ========
</TABLE>
---------------
(a)One American Depositary share is equivalent to six Ordinary Shares.
(b)As reported in Note 44 of Notes to Financial Statements included in BP
Amoco's Annual Report on Form 20-F for the year ended December 31, 1999.
<PAGE>
Page 29
BP AMOCO p.l.c. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued
16.US generally accepted accounting principles - continued
The consolidated statement of cash flows presented in accordance with SFAS 95
is as follows:
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000 1999
--------------------- ---------------------
($ million)
<S> <C> <C> <C> <C>
Operating activities
Profit after taxation 3,478 1,897 9,752 3,392
Adjustments to reconcile profits after
tax to net cash provided by operating activities
Depreciation and amounts provided 1,978 1,197 5,004 3,593
Exploration expense 51 135 191 270
Share of (profit) loss of joint ventures
and associates less dividends received (187) (103) (295) (111)
(Profit) loss on sale of businesses and fixed assets (136) 308 (118) 102
Working capital movement (see analysis below) (1,397) (1,305) (2,726) (2,823)
Other 1,112 439 438 866
------- ------- ------- -------
Net cash provided by operating activities 4,899 2,568 12,246 5,289
------- ------- ------- -------
Investing activities
Capital expenditures (2,252) (1,566) (6,469) (4,432)
Acquisitions, net of cash acquired (5,095) (4) (5,964) (49)
Investment in associated undertakings (456) (2) (897) (141)
Net investment in joint ventures (95) (226) (218) (495)
Proceeds from disposal of assets 2,630 615 10,043 1,146
------- ------- ------- -------
Net cash used in investing activities (5,268) (1,183) (3,505) (3,971)
------- ------- ------- -------
Financing activities
Net proceeds from shares issued (repurchased) (452) 52 (1,437) 218
Proceeds from long-term financing 244 303 1,784 1,969
Repayments of long-term financing (589) (603) (1,169) (1,954)
Net (decrease) increase in short-term debt (123) 21 (3,640) 1,807
Dividends paid - BP Amoco (1,128) (967) (3,232) (3,164)
- Minority shareholders (12) (49) (20) (145)
------- ------- ------- -------
Net cash used in financing activities (2,060) (1,243) (7,714) (1,269)
------- ------- ------- -------
Currency translation differences relating to
cash and cash equivalents (51) (27) (13) (42)
------- ------- ------- -------
Increase (decrease) in cash and cash equivalents (2,480) 115 1,014 7
------- ------- ------- -------
Cash and cash equivalents at beginning of period 4,949 686 1,455 794
------- ------- ------- -------
Cash and cash equivalents at end of period 2,469 801 2,469 801
------- ------- ------- -------
Analysis of working capital movement
Increase in inventories (398) (586) (1,264) (1,190)
Increase in receivables (70) (549) (3,511) (2,069)
Increase in current liabilities (excluding finance debt) (929) (170) 2,049 436
------- ------- ------- -------
Total working capital (1,397) (1,305) (2,726) (2,823)
======= ======= ======= =======
</TABLE>
<PAGE>
Page 30
BP AMOCO p.l.c. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued
16.US generally accepted accounting principles - continued
Earnings per share
Basic earnings per share excludes the dilutive effects of options, warrants
and convertible securities. Diluted earnings per share reflects the potential
dilution that could occur if options, warrants or convertible securities were
exercised or converted into ordinary shares that shared in the earnings of
the Group. The dilutive effect of outstanding share options is as follows:
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000 1999
--------------------- ---------------------
(shares million)
<S> <C> <C> <C> <C>
Weighted average number of ordinary shares 22,560 19,402 21,344 19,376
Ordinary shares issuable under employee share schemes 168 135 148 109
------- ------- ------- -------
22,728 19,537 21,492 19,485
======= ======= ======= =======
</TABLE>
Comprehensive income
The components of comprehensive income, net of related tax are as follows:
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
2000 1999 2000 1999
--------------------- ---------------------
($ million)
<S> <C> <C> <C> <C>
Profit for the period as adjusted to 3,377 1,445 8,662 3,024
accord with US GAAP
Currency translation differences (1,163) 841 (2,379) (175)
Pension liability - - - -
------- ------- ------- -------
Comprehensive income 2,214 2,286 6,283 2,849
======= ======= ======= =======
</TABLE>
Accumulated other comprehensive income at September 30, 2000 and December 31,
1999 was $(3,897) million and $(1,518) million, respectively.
<PAGE>
Page 31
BP AMOCO p.l.c. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued
16.US generally accepted accounting principles - continued
Accounting for associated undertakings and joint ventures
Under the provisions of UK Financial Reporting Standard No.9 `Associates and
Joint Ventures', the Company includes its share of the results of associated
undertakings and joint ventures (JVs) within various captions in the
consolidated statement of income. Under US GAAP, the Company's share of the
after tax profit or loss of associated undertakings and joint ventures would
be recognized as a single amount. The following summarizes the
reclassifications necessary to accord with US GAAP.
<TABLE>
<CAPTION>
Three months ended September 30, 2000
(Unaudited)
--------------------------------------------
As US GAAP
Reported Reclassification Presentation
--------------------------------------------
($ million)
<S> <C> <C> <C>
Consolidated statement of income
Other income 95 405 500
Share of profits of JVs and associated undertakings 476 (476) -
Exceptional items before taxation 138 (2) 136
Inventory holding gains (losses) 544 (37) 507
Interest expense 460 (60) 400
Taxation 1,554 (50) 1,504
Profit for the period 3,462 - 3,462
</TABLE>
<TABLE>
<CAPTION>
Nine months ended September 30, 2000
(Unaudited)
--------------------------------------------
As US GAAP
Reported Reclassification Presentation
--------------------------------------------
($ million)
<S> <C> <C> <C>
Consolidated statement of income
Other income 533 1,218 1,751
Share of profits of JVs and associated undertakings 1,248 (1,248) -
Exceptional items before taxation 142 (24) (118)
Inventory holding gains (losses) 1,289 (231) 1,058
Interest expense 1,159 (157) 1,002
Taxation 3,730 (128) 3,602
Profit for the period 9,646 - 9,646
</TABLE>
<TABLE>
<CAPTION>
Three months ended September 30, 2000
(Unaudited)
--------------------------------------------
As US GAAP
Reported Reclassification Presentation
--------------------------------------------
($ million)
<S> <C> <C> <C>
Consolidated statement of income
Other income 104 499 603
Share of profits of JVs and associated undertakings 359 (359) -
Exceptional items before taxation (501) 11 (490)
Inventory holding gains (losses) 643 (220) 423
Interest expense 355 (44) 311
Taxation 738 (25) 713
Profit for the period 1,848 - 1,848
</TABLE>
<TABLE>
<CAPTION>
Nine months ended September 30, 2000
(Unaudited)
--------------------------------------------
As US GAAP
Reported Reclassification Presentation
--------------------------------------------
($ million)
<S> <C> <C> <C>
Consolidated statement of income
Other income 373 1,092 1,465
Share of profits of JVs and associated undertakings 865 (865) -
Exceptional items before taxation (1,745) (36) (1,781)
Inventory holding gains (losses) 1,222 (406) 816
Interest expense 987 (140) 847
Taxation 1,267 (75) 1,192
Profit for the period 3,307 - 3,307
</TABLE>
<PAGE>
Page 32
BP AMOCO p.l.c. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued
16.US generally accepted accounting principles - concluded
Impact of new accounting standards
Derivative instruments and hedging activities: In June 1998, the Financial
Accounting Standards Board (FASB) issued Statement of Financial Accounting
Standards No.133 `Accounting for Derivative Instruments and Hedging
Activities' (SFAS 133). The effective date of this standard was delayed for
one year, to accounting periods beginning after June 15, 2000, by Statement
of Financial Accounting Standards No.137, `Accounting for Derivative
Instruments and Hedging Activities - Deferral of the Effective Date of FASB
Statement No. 133 - an amendment of FASB Statement No.133', issued in June
1999. SFAS 133 was further amended in June 2000 by the issuance of Statement
of Financial Accounting Standards No. 138, 'Accounting for Certain Derivative
Instruments and Certain Hedging Activities - an amendment of SFAS 133.'
SFAS 133, as amended, requires that all derivative instruments be recorded on
the balance sheet at their fair value. Changes in the fair value of
derivatives are recorded each period in current earnings or other
comprehensive income, depending on whether a derivative is designated as part
of a hedge transaction and, if it is, the type of hedge transaction. To the
extent certain criteria are met, SFAS 133 permits, but does not require,
hedge accounting.
The Group's accounting policies under UK GAAP do not satisfy the criteria for
hedge accounting under SFAS 133. The Group does not intend to modify its
practice under UK GAAP.
All oil price derivatives and all derivatives held for trading are currently
carried on the Group's balance sheet at fair value with changes in that value
recognized in earnings of the period. For those derivative instruments, the
impact of adopting SFAS 133 on the Group's results of operations and
financial position, as adjusted to accord with US GAAP, will not be material.
Certain financial derivatives used to manage foreign currency and interest
rate risk that qualify for hedge accounting under UK GAAP will be marked to
market under SFAS 133. For those derivative instruments, the impact of
adopting SFAS 133 on the Group's results of operations and financial
position, as adjusted to accord with US GAAP, will depend upon the fair value
of the derivative instruments held at January 1, 2001, changes in fair value
in subsequent periods and could result in increased volatility. Because the
Company does not intend to modify its accounting practice to satisfy the
criteria for hedge accounting under SFAS 133, the Group's results of
operations, as adjusted to accord with US GAAP, will not necessarily be
representative of the results it would report if US GAAP were used to prepare
the consolidated financial statements of the BP Amoco Group and the Group
sought to meet the hedge criteria of SFAS 133. The Company has not yet
completed its evaluation of the impact of adopting SFAS 133.
<PAGE>
Page 33
BP AMOCO p.l.c. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - continued
17.Comparative information relating to the Exploration and Production
and Gas and Power businesses
Following the creation of the Gas and Power business, which is reported
separately from January 1, 2000, the comparative figures for 1999 have been
restated. The following information reflects that restatement.
<TABLE>
<CAPTION>
(Unaudited)
Three months ended
-------------------------------------- Year ended
Mar 31, Jun 30, Sep 30, Dec 31, Dec 31,
1999 1999 1999 1999 1999
-------------------------------------- ---------
$ million
<S> <C> <C> <C> <C> <C>
Replacement cost operating profit
Previously reported Exploration & Production total 818 1,503 2,240 2,633 7,194
====================================== =========
Restated as:
Exploration and Production
UK 318 458 673 861 2,310
Rest of Europe 75 74 163 175 487
USA 192 425 597 922 2,136
Rest of World 165 508 750 627 2,050
-------------------------------------- ---------
750 1,465 2,183 2,585 6,983
====================================== =========
Gas and Power
UK 5 3 4 2 14
Rest of Europe 52 29 44 46 171
USA 4 2 3 (2) 7
Rest of World 7 4 6 2 19
-------------------------------------- ---------
68 38 57 48 211
====================================== =========
Turnover
By business
Exploration and Production 3,470 4,355 5,678 5,630 19,133
Gas and Power 1,216 1,153 1,359 1,595 5,323
Refining and Marketing 10,167 13,988 16,697 22,041 62,893
Chemicals 2,123 2,248 2,297 2,724 9,392
Other businesses and corporate 30 45 39 84 198
-------------------------------------- ---------
17,006 21,789 26,070 32,074 96,939
Less: sales between businesses 2,364 2,773 4,112 4,124 13,373
-------------------------------------- ---------
Group excluding JVs 14,642 19,016 21,958 27,950 83,566
Sales of joint ventures 3,342 3,923 4,707 5,642 17,614
-------------------------------------- ---------
17,984 22,939 26,665 33,592 101,180
====================================== =========
</TABLE>
<PAGE>
Page 34
BP AMOCO p.l.c. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - concluded
17.Comparative information relating to the Exploration and Production
and Gas and Power businesses - continued
<TABLE>
<CAPTION>
(Unaudited)
Three months ended
-------------------------------------- Year ended
Mar 31, Jun 30, Sep 30, Dec 31, Dec 31,
1999 1999 1999 1999 1999
-------------------------------------- ---------
$ million
<S> <C> <C> <C> <C> <C>
Exceptional items
Previously reported Exploration & Production total (9) 8 (419) (91) (511)
====================================== =========
Restated as:
Exploration and Production (9) 8 (419) (105) (525)
Gas and Power - - - 14 14
====================================== =========
Capital expenditure and acquisitions
Previously reported Exploration & Production total 934 1,102 775 1,401 4,212
====================================== =========
Restated as:
Exploration and Production
UK 244 203 135 187 769
Rest of Europe 8 5 44 37 94
USA 362 400 318 793 1,873
Rest of World 320 490 277 371 1,458
-------------------------------------- ---------
934 1,098 774 1,388 4,194
====================================== =========
Gas and Power
UK - - - - -
Rest of Europe - - - 3 3
USA - 3 - 5 8
Rest of World - 1 1 5 7
-------------------------------------- ---------
- 4 1 13 18
====================================== =========
</TABLE>
<PAGE>
Page 35
BP AMOCO p.l.c. AND SUBSIDIARIES
SUMMARIZED FINANCIAL INFORMATION
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
BP America Inc. (a)(b)(e)(f)(g)(h)(i)(j)(k) 2000 1999 2000 1999
--------------------- ---------------------
($ million)
<S> <C> <C> <C> <C>
Sales and other operating revenue 23,539 12,245 60,351 30,530
Gross profit (c) 4,350 2,994 11,978 6,696
Profit for the period (d) 2,731 1,721 7,316 2,501
======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
September 30, 2000 December 31, 1999
(Unaudited) (Unaudited)
($ million)
<S> <C> <C>
Fixed and other assets 75,990 40,110
Current assets 24,550 15,479
------- -------
Total assets 100,540 55,589
======= =======
Current liabilities 18,755 13,633
Noncurrent liabilities 20,207 14,543
Minority shareholders' interest 797 970
Shareholders' interest 60,781 26,443
------- -------
Total liabilities and shareholders' interest 100,540 55,589
======= =======
</TABLE>
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
The Standard Oil Company (a)(e)(f)(g)(h) 2000 1999 2000 1999
--------------------- ---------------------
($ million)
<S> <C> <C> <C> <C>
Sales and other operating revenue 8,765 3,783 23,261 9,538
Gross profit (c) 1,092 652 3,303 1,564
Profit for the period (d) 615 205 1,930 517
======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
September 30, 2000 December 31, 1999
(Unaudited)
($ million)
<S> <C> <C>
Fixed and other assets 12,391 12,584
Current assets 7,217 6,664
------ ------
Total assets 19,608 19,248
====== ======
Current liabilities 3,225 4,709
Noncurrent liabilities 4,871 4,957
Shareholders' interest 11,512 9,582
------ ------
Total liabilities and shareholders' interest 19,608 19,248
====== ======
</TABLE>
<PAGE>
Page 36
BP AMOCO p.l.c. AND SUBSIDIARIES
SUMMARIZED FINANCIAL INFORMATION - continued
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
BP Pipelines (Alaska) Inc. (a) 2000 1999 2000 1999
--------------------- ---------------------
($ million)
<S> <C> <C> <C> <C>
Sales and other operating revenue 78 131 302 359
Gross profit (c) 7 54 98 149
(Loss) profit for the period (6) 35 65 92
======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
September 30, 2000 December 31, 1999
(Unaudited)
($ million)
<S> <C> <C>
Fixed and other assets 1,321 1,290
Current assets 921 853
------ ------
Total assets 2,242 2,143
====== ======
Current liabilities 173 128
Noncurrent liabilities 956 967
Shareholders' interest 1,113 1,048
------ ------
Total liabilities and shareholders' interest 2,242 2,143
====== ======
</TABLE>
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
(Unaudited) (Unaudited)
BP Exploration (Alaska) Inc. (a)(f)(g) 2000 1999 2000 1999
--------------------- ---------------------
($ million)
<S> <C> <C> <C> <C>
Sales and other operating revenue 5,030 1,927 13,597 4,753
Gross profit (c) 504 116 1,164 229
Profit (loss) for the period (d) 363 6 806 (4)
======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
September 30, 2000 December 31, 1999
(Unaudited)
($ million)
<S> <C> <C>
Fixed and other assets 11,180 10,124
Current assets 2,613 3,117
------ ------
Total assets 13,793 13,241
====== ======
Current liabilities 1,949 2,119
Noncurrent liabilities 1,452 1,536
Shareholders' interest 10,392 9,586
------ ------
Total liabilities and shareholders' interest 13,793 13,241
====== ======
</TABLE>
<PAGE>
Page 37
BP AMOCO p.l.c. AND SUBSIDIARIES
SUMMARIZED FINANCIAL INFORMATION - concluded
---------------
(a) BPAmerica Inc. is a wholly-owned subsidiary of BP Amoco p.l.c.; The
Standard Oil Company is a wholly-owned subsidiary of BP America Inc.; and
BP Pipelines (Alaska) Inc. and BP Exploration (Alaska) Inc. are
wholly-owned subsidiaries of The Standard Oil Company.
(b) In April 2000, BP Amoco p.l.c. transferred its 100% ownership of BP Amoco
Corporation and Atlantic Richfield Company to BP America Inc. in exchange
for 4,385,079 and 2,129,809 additional shares of BP America Inc.,
respectively. Following the transfer, BP Amoco Corporation and the Atlantic
Richfield Company are wholly-owned subsidiaries of BP America Inc. In the
summarized financial information for BP America Inc. 1999 amounts have been
restated to include BP Amoco Corporation.
(c) Gross profit equals sales and other operating revenue less associated
costs, which exclude distribution and administration expenses and
exploration expense.
(d) Profit for the three months ended September 30, 1999 for BP America Inc.,
The Standard Oil Company, and BP Exploration (Alaska) Inc. includes
restructuring costs of $283 million, $55 million and $4 million,
respectively. Profit (loss) for the nine months ended September 30, 1999
for BP America Inc., The Standard Oil Company and BP Exploration (Alaska)
Inc. includes restructuring charges of $1,222 million, $146 million and $35
million respectively.
(e) The December 1999 summarized balance sheets for BP America and Standard Oil
have been restated by $406 million for a reclassification from noncurrent
to current liabilities pertaining to the short term classification of
floating rate municipal bonds.
(f) In April 2000, an agreement was reached between BP, Exxon Mobil and
Phillips to align the respective oil and gas equity interest of BP
Exploration (Alaska), Exxon Mobil and Phillips in the Prudhoe Bay Unit.
This agreement also provides for BP Exploration (Alaska) to become the
single operator.
(g) Profit for the three months and nine months ended September 30, 1999 for BP
America Inc., The Standard Oil Company and BP Exploration (Alaska) Inc.
includes a pretax charge of $100 million relating to the write down of the
investment in the Badami oilfield.
(h) In September 2000, the sale of the Alliance Refinery was completed
resulting in a pretax gain of $159 million and an after-tax loss of $120
million. Proceeds on the sale were approximately $914 million.
(i) In April 2000, BP Amoco Corporation completed the sale of its interest in
Altura to Occidental Petroleum Corporation. The after-tax gain recorded was
$147 million. Proceeds on the disposition of Altura were approximately $1.2
billion.
(j) Profit for the three months and nine months ended September 30, 1999 for BP
America Inc. included the profit of some $280 million on the sale of the
Canadian oil properties.
(k) In April 2000, the Alaskan operations of Atlantic Richfield Company,
comprising oil and gas production, crude oil marine transportation and
related crude oil inventory, were sold for proceeds totalling approximately
$5.8 billion.
<PAGE>
Page 38
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BP AMOCO p.l.c.
(Registrant)
DATED: November 22, 2000 /s/ JUDITH C HANRATTY
---------------------
J. C. HANRATTY
COMPANY SECRETARY
<PAGE>
Page 39
Exhibit 1
BP AMOCO p.l.c. AND SUBSIDIARIES
SUMMARIZED FINANCIAL INFORMATION - concluded
<TABLE>
<CAPTION>
Nine months ended
September 30, 2000
($ million, except ratios)
(Unaudited)
<S> <C>
Profit before taxation 13,482
Group's share of income in excess of dividends
of joint ventures and associated undertakings (584)
Captalized interest (77)
-------
Profit as adjusted 12,821
-------
Fixed charges:
Interest net of interest expense of joint ventures and 873
associated undertakings and unwinding of discount
Rental expense representative of interest 266
Capitalized interest 77
-------
1,216
-------
Total adjusted earnings available for payment of fixed charges 14,037
=======
Ratio of earnings to fixed charges 11.5
=======
Total adjusted earnings available for payment of fixed
charges, after taking account of adjustments to profit
taxation to accord with US GAAP (a) 13,718
=======
Ratio of earnings to fixed charges with adjustments
to accord with US GAAP 11.3
=======
</TABLE>
---------------
(a) See Note 16 of Notes to Consolidated Financial Statements.
