BP ANNUAL REPORT

1
BP ANNUAL REPORT

• By Ricky Rieck
• Mrs. Crosson ACG2021C

2
Executive Summary

• BP is in a market with growth ahead. It is one
  of the leading gas and oil companies and is
  focusing on increasing brand loyalty by cutting
  out distributors which will lead to a more
  profitable organization in the long run. This
  stock is up for trade in the New York Stock
  Exchange and is a strong buy.
• Annual Report Website
• http//www.annualreports.com/HostedData/AnnualRepo
  rts/PDF/bp2004.pdf

3
Introduction

• Chief executive officer
• The Lord Browne of Madingley
• Location of home office
• 1 St. Jamess Square, London SW1Y 4PD, UK
• Date Ending Fiscal Year
• December 31st
• Principal Products
• Oil and Gas
• Main geographic area of activity
• US and Europe

4
Audit Report

• Independent Auditors
• Ernest Young
• Sir Ian Prosser, J H Bryan, E B Davis, Jr., H M P
  Miles, M H Wilson
• Auditors Opinions
• EPS growth
• Done well in respect to the other Oil and Gas
  industry leaders.
• Outstanding performance has led to a 150 salary
  to some directors.

5
Stock Market Information

• Most recent price of the companys stock
• 66.60
• 12 Month Trading Range
• 52 Week High72.66
• 52 Week Low56.60
• Dividend per share
• 5.119 as of 06-Sep-05
• Buy/Sell/Hold
• STRONG Buy

6
Industry Situation and Company Plans

• According to Annual Report
• Demands for the good sold at BP and others in the
  related industry has increased over the course of
  the year. BP has restructured its supply
  methods to reduce the number of product lines and
  distributors therefore making BP a more
  profitable one.
• According to Three Upgrades In Global Integrated
  Oil
• BPs recent high exposure to U.S. refining and
  natural gas prices has upgraded their value to
  each shareholder.
• http//news.moneycentral.msn.com/ticker/article.as
  p?SymbolUSBPFeedFRBDate20050927ID5145149

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Income Statement

• Multi-step Income Statement
• Gross Profit
• 2004- 34,196 2003- 29,501
• Income from Operations
• 2004- 352,316 2003- 278-859
• Net Income
• 2004- 15,735 2003- 10,482
• The increases in these amounts are due to the
  increase demands for the recent demand increases
  for BPs products.

8
Balance Sheet

• 2003 AssetsLiabilities Stockholders Equity
• 81,457 16,068 65, 389
• 2004 AssetsLiabilities Stockholders Equity
• 74,770 17,302 57,468
• The accounts that changed the most was the assets
  and stockholders equity, the liabilities have
  remained around the same, this could be due to
  the growth of the company into new developments.

9
Statement of Cash Flows

• Cash flows from operations are more than net
  income for the past two years.
• The company growing through investments and long
  lived assets.
• The companys primary source of financing is
  through long-term loans.
• Cash has increased over the past two years.

10
Accounting Policies

• There are many different policies the auditors
  follows to make its report
• Accounting Treatment
• System of Internal Control
• Employee Reporting/Whistleblowing
• Auditor Independence and Rotation
• Policy on Non-Audit Services
• Internal Audit
• Performance Evaluation

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Financial AnalysisLiquidity Ratios

• Working Capital
• 2003- 117,115 2004- 125,936
• Current Ratio
• 2003- 1.0 2004- 1.0
• Receivable turnover
• 2003- 7.5 2004- 7.7
• Inventory turnover
• 2003- 16.8 2004- 16.3

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Ratios

• Profit margin
• 6.10
• Return on assets
• 9.6
• Asset Turnover-
• 1.7
• Return on equity
• 24.40

13
Financial AnalysisSolvency Ratio

• Solvency Ratio
• 2003- .626 2004- .635

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2004 Financial AnalysisMarket Strength Ratios

• Price/earnings per share
• 12.4
• Dividend yield
• 3.3