BP 2009 Annual Report Download - page 101

BP Annual Report and Accounts 2009
Additional information for shareholders
Additional information for shareholders
99
The following table shows dividends announced and paid by the company per ADS for each of the past five years.
March June September December Total
Dividends per American depositary share
2005 UK pence 27.1 26.7 30.7 30.4 114.9
US cents 51.0 51.0 53.55 53.55 209.1
Canadian cents 64.0 63.2 65.3 63.7 256.2
2006 UK pence 31.7 31.5 31.9 31.4 126.5
US cents 56.25 56.25 58.95 58.95 230.4
Canadian cents 64.5 64.1 67.4 66.5 262.5
2007 UK pence 31.5 30.9 31.7 31.8 125.9
US cents 61.95 61.95 64.95 64.95 253.8
Canadian cents 73.3 69.5 67.8 63.6 274.2
2008 UK pence 40.9 41.0 42.2 52.2 176.3
US cents 81.15 81.15 84.0 84.0 330.3
Canadian cents 80.8 82.5 85.8 108.6 357.7
2009 UK pence 58.91 57.50 51.02 51.07 218.5
US cents 84 84 84 84 336
Canadian centsan/a n/a n/a n/a n/a
aBP shares were de-listed from the Toronto Stock Exchange on 15 August 2008 and the last dividend payment in Canadian dollars was made on 8 December 2008.
A dividend reinvestment plan is in place whereby holders of BP ordinary
shares can elect to reinvest the net cash dividend in shares purchased
on the London Stock Exchange. This plan is not available to any person
resident in the US or Canada or in any jurisdiction outside the UK
where such an offer requires compliance by the company with any
governmental or regulatory procedures or any similar formalities.
A dividend reinvestment plan is, however, available for holders of ADSs
through JPMorgan Chase Bank. Subject to shareholder approval at
the Annual General Meeting, the company is seeking to replace these
plans with an optional Scrip Dividend Programme. If approved, the
requirements of the programme mean that there will be certain
changes to our current dividend timetable.
Future dividends will be dependent on future earnings, the
financial condition of the group, the Risk factors set out on pages 18-20
and other matters that may affect the business of the group set out in
Financial performance on page 53 and in Liquidity and capital resources
on page 61.
Legal proceedings
BP America Inc. (BP America) continues to be subject to oversight by an
independent monitor, who has authority to investigate and report alleged
violations of the US Commodity Exchange Act or US Commodity Futures
Trading Commission (CFTC) regulations and to recommend corrective
action. The appointment of the independent monitor was a condition of
the deferred prosecution agreement (DPA) entered into with the US
Department of Justice (DOJ) on 25 October 2007 relating to allegations
that BP America manipulated the price of February 2004 TET physical
propane and attempted to manipulate the price of TET propane in April
2003 and the companion consent order with the CFTC, entered the same
day, resolving all criminal and civil enforcement matters pending at that
time concerning propane trading by BP Products North America Inc. (BP
Products). The DPA requires BP America’s and certain of its affiliates’
continued co-operation with the US government investigations of the
trades in question, as well as other trading matters that may arise. The
DPA has a term of three years but can be extended by two additional
one-year periods, and contemplates dismissal of all charges at the end
of the term following the DOJ’s determination that BP America has
complied with the terms of the DPA. Investigations into BP’s trading
activities continue to be conducted from time to time.
Private complaints, including class actions, have also been filed against
BP Products alleging propane price manipulation. The complaints contain
allegations similar to those in the CFTC action as well as of violations of
federal and state antitrust and unfair competition laws and state
consumer protection statutes and unjust enrichment. The complaints
seek actual and punitive damages and injunctive relief. Settlement in both
groups of the class actions (the direct and indirect purchasers) have
received final court approval. Two independent lawsuits from class
members who opted out of the direct purchaser settlement are also
pending. In addition, state actions alleging manipulation of propane and
other energy commodity prices and seeking a variety of remedies have
been filed against BP Products and other BP subsidiaries.
On 23 March 2005, an explosion and fire occurred in the
isomerization unit of BP Products’ Texas City refinery as the unit was
coming out of planned maintenance. Fifteen workers died in the incident
and many others were injured. BP Products has resolved all civil injury
claims arising from the March 2005 incident.
In March 2007, the US Chemical Safety and Hazard Investigation
Board (CSB) issued its final report on the incident. The report contained
recommendations to the Texas City refinery and to the board of the
company. In May 2007, BP responded to the CSB’s recommendations.
BP and the CSB will continue to discuss BP’s responses with the
objective of the CSB agreeing to close-out its recommendations.
On 25 October 2007, the DOJ announced that it had entered into
a criminal plea agreement with BP Products related to the March 2005
explosion and fire. On 4 February 2008, BP Products pleaded guilty,
pursuant to the plea agreement, to one felony violation of the risk
management planning regulations promulgated under the US federal
Clean Air Act and on 12 March 2009, the court accepted the plea
agreement. In connection with the plea agreement, BP Products paid
a $50 million criminal fine and was sentenced to three years’ probation.
Compliance with a 2005 US Occupational Safety and Health
Administration (OSHA) settlement agreement and an agreed order
entered into by BP Products with the Texas Commission on
Environmental Quality (TCEQ) are conditions of probation. The DOJ
continues to investigate certain other matters arising from the March
2005 explosion and fire.