BP 2005 Annual Report Download - page 66

64 Making energy more
Notes on financial statements continued
23 Dividends pence per share cents per share $ million
2005 2004 2003 2005 2004 2003 2005 2004 2003
Dividends announced and paid
Preference shares 2 2 2
Ordinary shares
March 4.522 3.674 3.815 8.50 6.75 6.25 1,823 1,492 1,397
June 4.450 3.807 3.947 8.50 6.75 6.25 1,808 1,477 1,385
September 5.119 3.860 4.039 8.925 7.10 6.50 1,871 1,536 1,433
December 5.061 3.910 3.857 8.925 7.10 6.50 1,855 1,534 1,437
19.152 15.251 15.658 34.85 27.70 25.50 7,359 6,041 5,654
Dividend announced per ordinary
share, payable in March 2006 5.288 – – 9.375 – – 1,923 – –
The group does not account for dividends until they have been paid. The accounts for the year ended 31 December 2005 do not reflect the
dividend to be announced on 7 February 2006 and payable in March 2006; this will be treated as an appropriation of profit in the year ended
31 December 2006.
24 Earnings per ordinary share cents per share
2005 2004 2003
Basic earnings per share 105.74 78.24 56.14
Diluted earnings per share 104.52 76.87 55.61
Basic earnings per ordinary share amounts are calculated by dividing the profit for the year attributable to ordinary shareholders by the weighted
average number of ordinary shares outstanding during the year. The average number of shares outstanding excludes treasury shares and the shares
held by the Employee Share Ownership Plans.
For the diluted earnings per share calculation, the profit attributable to ordinary shareholders is adjusted for the unwinding of the discount on the
deferred consideration for the acquisition of our interest in TNK-BP. The weighted average number of shares outstanding during the year is adjusted
for the number of shares to be issued for the deferred consideration for the acquisition of our interest in TNK-BP and the number of shares that
would be issued on conversion of outstanding share options into ordinary shares using the treasury stock method.
$ million
2005 2004 2003
Profit for the year attributable to BP shareholders
Continuing operations 22,157 17,697 12,511
Discontinued operations 184 (622) (63)
22,341 17,075 12,448
Unwinding of discount on deferred consideration for acquisition of investment in TNK-BP (net of tax) 40 64 24
Diluted profit for the year attributable to BP shareholders 22,381 17,139 12,472
shares thousand
2005 2004 2003
Basic weighted average number of ordinary shares 21,125,902 21,820,535 22,170,741
Potential dilutive effect of ordinary shares issuable under employee share schemes 87,743 56,985 65,931
Potential dilutive effect of ordinary shares issuable as consideration for BP’s interest
in the TNK-BP joint venture 197,802 415,016 186,980
21,411,447 22,292,536 22,423,652
The number of ordinary shares outstanding at 31 December 2005 was 20,657,044,719. Between the reporting date and the date of completion of
these financial statements there has been a net decrease of 69,765,632 in the number of ordinary shares outstanding as a result of share buybacks
net of share issues. The number of potential ordinary shares through the exercise of employee share options was 108,596,993 at 31 December
2005. There has been an increase of 20,768,209 in the number of potential ordinary shares between the reporting date and the completion of the
financial statements.
Earnings (loss) per share for the discontinued operations is derived from the net profit (loss) attributable to ordinary shareholders from
discontinued operations of $184 million profit (2004 $622 million loss and 2003 $63 million loss), divided by the weighted average number of
ordinary shares for both basic and diluted amounts as shown above.