BP (BP)

GAS, POWER AND RENEWABLES

The changes in sales and other operating revenues are explained below in more detail:

Sales and other operating revenues for the three months ended 30 June 2007 were $5.4 billion compared with $6.1 billion for the same period in 2006. Gas marketing sales decreased by $0.6 billion reflecting price decreases of $0.3 billion and lower volumes of $0.3 billion. Other sales (including NGL marketing) decreased by $0.1 billion primarily due to lower prices.

Sales and other operating revenues for the six months ended 30 June 2007 were $11.0 billion compared with $12.6 billion for the same period in 2006. Gas marketing sales decreased by $1.5 billion reflecting price decreases of $0.8 billion and lower volumes of $0.7 billion. Other sales (including NGL marketing) decreased by $0.1 billion primarily due to lower volumes.

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GAS, POWER AND RENEWABLES

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Sales and other operating revenues for the three months and year ended December 31, 2005 were $8 billion and $29 billion respectively, compared with $8 billion and $26 billion for the same periods in 2004. For the quarter this reflects offsetting movements of around $0.5 billion in respect of lower volumes and higher prices. The increase for the year reflects increases of around $2 billion due to higher prices and around $1 billion due to higher volumes.

Profit before interest and tax for the three months ended December 31, 2005 was $114 million including $265 million compensation received on the cancellation of an intra-group gas supply contract (which is offset by a loss in our Exploration and Production segment) and is after inventory holding losses of $3 million, net fair value losses on embedded derivatives of $546 million and a net loss of $26 million on disposal of a power plant in the UK. Profit before interest and tax for the three months ended December 31, 2004 was $523 million, including inventory holding gains of $28 million and a net gain on disposal of $40 million.

The additional factors reflected in profit before interest and tax for the three months ended December 31, 2005 compared with the equivalent period in 2004 are lower contributions from the gas trading and marketing business of around $200 million, offset by a positive impact of around $200 million relating to IFRS fair value accounting requirements, notably in respect of economic hedges that cannot be accounted for as hedges under IFRS and the valuation of inventory designated as held for trading (see page 11).

Profit before interest and tax for the year ended December 31, 2005 was $1,104 million, including inventory holding gains of $95 million, compensation of $265 million received on the cancellation of an intra-group gas supply contract and net gains of $55 million primarily on the disposal of BP’s interest in Interconnector, a power plant in the UK and an NGL plant in the US, and is after net fair value losses of $346 million on embedded derivatives and a credit of $6 million related to new, and revisions to existing, environmental and other provisions. Profit before interest and tax for the year ended December 31, 2004 was $954 million, including inventory holding gains of $39 million and a net gain on disposal of $56 million.

The additional factors contributing to the increase in profit before interest and tax for the year ended December 31, 2005, compared with the equivalent period in 2004 are higher contributions from the operating businesses of around $170 million.

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GAS, POWER AND RENEWABLES

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Sales and other operating revenues for the three months and nine months ended September 30, 2005 were $29 billion and $76 billion respectively, compared with $20 billion and $60 billion for the same periods in 2004. The increase for the quarter reflects an increase of around $6 billion due to higher prices and an increase of around $2 billion due to higher volumes. The increase for the nine months reflects increases of around $10 billion due to higher prices and around $6 billion due to higher volumes.

Profit before interest and tax for the three months ended September 30, 2005 was $412 million, including inventory holding gains of $98 million, net fair value gains on embedded derivatives of $91 million and a credit of $6 million related to new, and revisions to existing, environmental and other provisions, and is after a loss of $2 million on the sale of businesses and fixed assets. Profit before interest and tax for the three months ended September 30, 2004 was $57 million, including inventory holding gains of $27 million and a gain of $16 million on the sale of businesses and fixed assets.

The additional factors contributing to the increase in profit before interest and tax for the three months ended September 30, 2005 compared with the equivalent period in 2004 are higher contributions from the gas marketing business of around $190 million.

Profit before interest and tax for the nine months ended September 30, 2005 was $990 million, including inventory holding gains of $98 million and net gains of $81 million primarily on the disposal of BP’s interest in Interconnector and the disposal of an NGL plant in the US, net fair value gains of $200 million on embedded derivatives and a credit of $6 million related to new, and revisions to existing, environmental and other provisions. Profit before interest and tax for the nine months ended September 30, 2004 was $431 million, including inventory holding gains of $11 million and a gain of $16 million on the disposal of businesses and fixed assets.

The additional factors contributing to the increase in profit before interest and tax for the nine months ended September 30, 2005, compared with the equivalent period in 2004 are higher contributions from the operating businesses of around $160 million.

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Gas, Power and Renewables

(a)

Includes marketing, trading and supply sales.

        Turnover was $83 billion in 2004 compared with $66 billion in 2003, reflecting increases of around $4 billion due to higher gas sales volumes and around $14 billion due to higher prices. The increases in 2003 from $38 billion in 2002 reflects approximately $20 billion additional turnover from higher natural gas prices and approximately $8 billion from higher gas sales volumes.

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        Profit before interest and tax for 2004 includes exceptional gains of $56 million from the disposal of BP's interests in NGL plants in Canada. Profit before interest and tax for 2003 includes net exceptional losses of $6 million resulting from several small transactions. Profit before interest and tax for 2002 includes net exceptional gains of $1,551 million that primarily relate to the disposal of our interest in Ruhrgas.

        Total operating profit for 2004 was $926 million including inventory holding gains of $39 million.

        Total operating profit for 2003 was $582 million including inventory holding gains of $6 million.

        Total operating profit for 2002 was $469 million including inventory holding gains of $51 million, and is after a charge of $30 million related to the impairment of a cogeneration power plant under construction in the UK. The impairment is the result of a significant fall in power prices in the UK over the previous two years.

        In addition to the factors above, the principal additional factors contributing to the increase in operating profit in 2004 compared with 2003 were a higher contribution from the natural gas liquids and solar businesses of approximately $350 million due to higher unit margins and higher volumes.

        In addition to the factors above, the increase in operating profit for 2003 compared with 2002 reflects improvement in the marketing and trading business. Marketing and trading results increased by approximately $250 million with equal contributions from higher volumes and improved margins. Results for the LNG business also improved showing an increase of $90 million. This more than offset decreases of $70 million in the NGL business due to high natural gas prices relative to liquids prices in North America which led to lower sales volumes, the absence of any contribution from the Ruhrgas shareholding (sold in August 2002 and contributed $112 million in 2002) and a restructuring charge of $45 million in our Solar business.

GAS, POWER AND RENEWABLES

Turnover for the three months and year ended December 31, 2004 was $23.5 billion and $83.3 billion respectively, compared with $16.7 billion and $65.6 billion for the same periods in 2003. The increase for the quarter reflects a reduction of $0.2 billion due to lower volumes and an increase of $7.0 billion due to higher prices. The increase for the year reflects increases of $3.7 billion due to higher volumes and $14.0 billion due to higher prices.

Profit before interest and tax for the three months and year ended December 31, 2004 was $427 million and $982 million respectively, compared with $144 million and $576 million for the equivalent periods in 2003. Profit for the fourth quarter and year 2004 included net exceptional gains before tax of $40 million and $56 million respectively. Profit for the fourth quarter and year 2003 was after net exceptional charges before tax of $10 million and $6 million, respectively.

Total operating profit for the three months and year ended December 31, 2004 was $387 million and $926 million respectively, including inventory holding gains of $28 million and $39 million respectively. Total operating profit for the three months and year ended December 31, 2003 was $154 million and $582 million respectively, after inventory holding gains of $58 million and $6 million respectively.

In addition to the factors above, higher operating profit in the three months ended December 31, 2004 compared with the equivalent period in 2003 is due to a higher marketing and trading result of approximately $180 million and a higher contribution from the natural gas liquids and solar businesses of approximately $60 million. The principal additional factors contributing to the increase in operating profit in the year ended December 31, 2004 compared with the equivalent period in 2003 were a higher contribution from the natural gas liquids and solar businesses of approximately $350 million.

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