BP 2007 Annual Report Download - page 133

BP ANNUAL REPORT AND ACCOUNTS 2007 131
22 Earnings per ordinary share
cents per share
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2007 2006 2005
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Basic earnings per share 108.76 109.84 105.74
Diluted earnings per share 107.84 109.00 104.52
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 weighted average number of shares outstanding during the year is adjusted for the number of
shares that would be issued in connection with employee share-based payment plans using the treasury stock method. In addition, for 2006 and 2005,
the profit attributable to ordinary shareholders has been adjusted for the unwinding of the discount on the deferred consideration for the acquisitionof
our interest in TNK-BP and the weighted average number of shares outstanding during the year has been adjusted for the number of shares to be
issued for the deferred consideration for the acquisition of our interest in TNK-BP.
$ million
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2007 2006 2005
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Profit from continuing operations attributable to BP shareholders 20,845 22,025 22,157
Less dividend requirements on preference shares 22
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Profit from continuing operations attributable to BP ordinary shareholders 20,843 22,023 22,155
Profit (loss) from discontinued operations –(25) 184
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20,843 21,998 22,339
Unwinding of discount on deferred consideration for acquisition of investment in TNK-BP (net of tax) –16 40
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Diluted profit for the year attributable to BP ordinary shareholders 20,843 22,014 22,379
shares thousand
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2007 2006 2005
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Basic weighted average number of ordinary shares 19,163,389 20,027,527 21,125,902
Potential dilutive effect of ordinary shares issuable under employee share schemes 163,486 109,813 87,743
Potential dilutive effect of ordinary shares issuable as consideration for BP’s interest in the
TNK-BP joint venture –58,118 197,802
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19,326,875 20,195,458 21,411,447
The number of ordinary shares outstanding at 31 December 2007, excluding treasury shares, was 18,922,785,598. Between 31 December 2007 and
19 February 2008, the latest practicable date before the completion of these financial statements, there has been a net decrease of 44,539,157 in the
number of ordinary shares outstanding as a result of share buybacks net of share issues. The number of potential ordinary shares issuable through the
exercise of employee share schemes was 154,039,764 at 31 December 2007. There has been a decrease of 10,797,601 in the number of potential
ordinary shares between 31 December 2007 and 19 February 2008.
Earnings (loss) per share for the discontinued operations is derived from the net profit (loss) attributable to ordinary shareholders from discontinued
operations of $nil (2006 $25 million loss and 2005 $184 million profit), divided by the weighted average number of ordinary shares for both basic and
diluted amounts as shown above.
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