euro adhoc: BP PLC / BP 4Q 2003 TRADING UPDATE (E)

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press release

January 9, 2004

BP 4Q 2003 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, 2003. The fourth quarter margin, price,
realisation, cost, production and other data referred to below are
currently provisional, some being drawn from figures applicable to
the first month or so of the quarter. All such data are subject to
change and may differ quite considerably from the final numbers that
will be reported on February 10, 2004. The statement is produced in
order to provide greater disclosure to investors and potential
investors of currently expected outcomes, and to ensure that they all
receive equal access to the same information at the same time.

Exploration and Production

Marker prices
                          4Q'03      3Q'03        2Q'03        4Q'02
Brent dated ($/bbl)       29.43      28.38        26.03        26.88
WTI ($/bbl)               31.15      30.19        29.02        28.31
ANS USWC ($/bbl)          29.43      28.83        27.04        26.86
US gas Henry Hub first of
 month index ($/mmbtu)     4.58       4.97         5.40         3.99
UK gas price - National
Balancing Point (p/therm) 27.30      15.08        17.44        19.09

Compared to 3Q'03, BP's liquid and US gas realizations are expected
to move broadly in line with changes in marker prices and Henry Hub
respectively. As indicated at the time of our 3Q'03 results, TNK-BP's
realizations are expected to moderate compared to the prior quarter,
reflecting normal seasonal factors.

Gas, Power and Renewables

Gas marketing margins are expected to be lower than 3Q'03 in North
America and in the LNG business. NGL margins are expected to be
similar to 3Q'03.

Refining and Marketing

Refining Indicator Margins ($/bbl)

4Q'03     3Q'03     2Q'03     4Q'02
USA

   - West Coast                      6.09      9.04      6.34      3.95
- Gulf Coast                      3.53      5.61      3.59      2.98
- Midwest                         2.89      6.39      4.73      4.09
North West Europe                 2.21      2.47      2.15      2.19

   Singapore                         2.20      1.27      0.66      1.41

   Refining Global Indicator Margin*
  ($/bbl.)                        3.14      4.59      3.27      2.76

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

Refining indicator margins are expected to be generally lower in
4Q'03 than in 3Q'03, particularly in the US, due to higher refinery
operating rates, rising product inventories and higher feedstock
costs. Marketing margins in 4Q'03 are also expected to be lower than
in 3Q'03, reflecting normal seasonality and increases in product
prices late in the quarter. Marketing margins are however expected to
show some improvement relative to 4Q'02, driven largely by an
improved environment in the US.

Petrochemicals

Weighted Chemicals Indicator Margin ($/te)
4Q'03               3Q'03 est.  2Q'03               4Q'02
n/a                 109           134                 108

*The Chemicals Indicator Margin is a weighted average of
externally-based product margins. It is based on market data
collected by Nexant (formerly 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.

Petrochemical margins in 4Q'03 are expected to be below 3Q'03 margins
as a result of high feedstock prices and energy costs, combined with
the timing effects of reflecting sharp increases in these costs in
product prices.

Tax Rate

The effective tax rate for the quarter is expected to be around 35
per cent, in line with 3Q'03.

Stock Purchases

There were no stock purchases during the quarter. Shares in issue as
at December 31, 2003 were 22,123 million.

3/4 ENDS 3/4

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

Further inquiry note:
Jude Tomalin
020 7496 4062
Tel: +44 20 7496 4062
Email: tomalij@bp.com

end of announcement        euro adhoc 09.01.2004
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Emittent: BP PLC
          1 ST JAMES SQUARE
          UK-SW1Y4PD LONDON
Tel:      +44 20 7496 4062
Email:    tomalij@bp.com
WWW:      http://www.bp.com
ISIN:     GB0007980591
WKN:      850517
Indizes:
Börsen:   official dealing Hamburger Wertpapierbörse, Börse

Düsseldorf, Frankfurter Wertpapierbörse, SWX Swiss Exchange, London
Stock Exchange; free trade Niedersächsische Börse zu Hannover,
Berliner Wertpapierbörse, Bayerische Börse, Baden-Württembergische
Wertpapierbörse
Branche: Energy
Sprache: Englisch

OTS0098    2004-01-09/11:47

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