14.01.2003 – 12:12

BP plc

euro adhoc: BP PLC
Trading Statement (E)

Disclosure announcement transmitted by euro adhoc. The issuer is
responsible for the content of this announcement.

January 14, 2003

BP 4Q'02 TRADING UPDATE

This trading update is aimed at providing an overview of the revenue
and trading conditions experienced by BP during the fourth quarter
ending December 31, 2002.

The fourth quarter volume, realisations, margin, demand, debt, tax
rate and other data referred to below are currently provisional, some
being drawn from figures applicable to the first month or so of the
quarter.  All such data are subject to change and may differ quite
considerably from the final numbers that will be reported on February
11, 2003.  The statement is produced in order to provide greater
disclosure to investors and potential investors of some currently
expected outcomes primarily related to revenue, and to ensure that
they all receive equal access to the same information at the same
time.

·   Liquids realisations are expected to be broadly in line with last
    quarter.  US gas realisations are expected to rise 
    slightly ahead of the change in Henry Hub marker price.

·   The overall refining and marketing trading environment 
    deteriorated relative to 3Q.

·   The chemicals indicator margin is expected to weaken against 3Q 
    levels as prices lagged the rise in feedstock costs.  Demand 
    remains sluggish.

Exploration and Production

Hydrocarbon production, as indicated at the time of our 3Q results,
is expected to be up about 3% and 1.5% for the full year and 4Q
respectively compared with last year.

4Q'02          3Q'02          4Q'01

Brent dated ($/bbl)       26.88          26.91          19.41

WTI ($/bbl)               28.31          28.26          20.31

ANS USWC ($/bbl)          26.86          27.26          17.79

Gas Henry Hub first of 
 month index ($/mmbtu)     3.99           3.16           2.43

UK gas price - National 
 Balancing Point (p/therm)19.09          12.74          22.32

Gas, Power and Renewables

North American NGL margins are expected to be slightly lower than 3Q.
 Our interest in Ruhrgas was sold in 3Q and therefore no contribution
from Ruhrgas will appear in 4Q.

Refining and Marketing

4Q        3Q 2002    4Q 2001
                              2002

Refining Global Indicator Margin* ($/bbl.)

NWE                           2.19           1.28       1.53

US Gulf Coast                 2.98           1.82       1.79

US Midwest                    4.09           3.27       2.63

US West Coast                 3.95           3.54       6.25

Singapore                     1.41           0.47       1.20

Global Indicator Margin (GIM) 2.76           1.98       2.40

*The refining Global Indicator Margin is a weighted average based on
BP's portfolio.  Actual Margins may vary because of refinery
configuration, crude slate and operating practices.

The 4Q'02 Refining GIM is estimated to be higher than 3Q'02. 
However, realised margins are expected to be lower than that implied
by the GIM, due to the actual crude slate used by our refinery
system, and a compression of margins for products not included in the
GIM calculation.

4Q'02 retail margins are expected to be down from 3Q'02 due to
seasonal declines compounded by significant crude price increases at
year end.

Chemicals

Weighted Chemicals Indicator Margin* ($/te)

4Q'02      3Q'02    2Q'02      4Q'01

N/a        115      109        112

*The Chemicals Indicator Margin 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 on BP's product portfolio. This is described more fully in
the Group's quarterly results releases.

Chemicals margins in 4Q'02 are expected to be weaker than the prior
quarter as product prices were unable to compensate for significantly
higher feedstock and utility costs.  Petrochemicals demand remains
sluggish across all regions.

Debt/Balance Sheet

The Group's net debt gearing ratio on a proforma basis at quarter-end
is expected to be around 28-29%, in line with the 3Q level of 28.7%.

Tax

The Group's effective tax rate for the fourth quarter on the pro
forma result adjusted for special items is expected to be around
33-34%, compared with 34.5% in the third quarter.

- ENDS -

This information is provided by RNS
     The company news service from the London Stock Exchange

end of announcement        euro adhoc 14.01.2003

Further inquiry note:

BP Press Office, +44(0)207 496 4624

Branche: Energy
ISIN: GB0007980591
WKN: 850517
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