BP 2008 Annual Report Download - page 93

BP Annual Report and Accounts 2008
Additional information for shareholders
Dividends
BP has paid dividends on its ordinary shares in each year since 1917. In
2000 and thereafter, dividends were, and are expected to continue to be,
paid quarterly in March, June, September and December. Former Amoco
Corporation and Atlantic Richfield Company shareholders will not be able
to receive dividends, or proxy material, until they send in their Amoco
Corporation or Atlantic Richfield Company common shares for exchange.
BP currently announces dividends for ordinary shares in US
dollars and states an equivalent pounds sterling dividend. Dividends on
BP ordinary shares will be paid in pounds sterling and on BP ADSs in US
dollars. The rate of exchange used to determine the sterling amount
equivalent is the average of the forward exchange rate in London over the
five business days prior to the announcement date. The directors may
choose to declare dividends in any currency provided that a sterling
equivalent is announced, but it is not the company’s intention to
change its current policy of announcing dividends on ordinary shares
in US dollars.
The following table shows dividends announced and paid by the
company per ADS for each of the past five years. In the case of dividends
paid before 1 May 2004, the dividends shown are before the deemed
credit allowed to shareholders resident in the US under the former
income tax convention between the US and the UK and the associated
withholding tax in respect thereof equal to the amount of such credit.
(This deemed credit and associated withholding tax do not apply to
dividends paid after 30 April 2004 to shareholders resident in the US.)
March June September December Total
Dividends per American depositary share
2004 UK pence
US cents
Canadian cents
22.0
40.5
53.7
22.8
40.5
54.8
23.2
42.6
56.7
23.5
42.6
52.2
91.5
166.2
217.4
2005 UK pence
US cents
Canadian cents
27.1
51.0
64.0
26.7
51.0
63.2
30.7
53.55
65.3
30.4
53.55
63.7
114.9
209.1
256.2
2006 UK pence
US cents
Canadian cents
31.7
56.25
64.5
31.5
56.25
64.1
31.9
58.95
67.4
31.4
58.95
66.5
126.5
230.40
262.5
2007 UK pence
US cents
Canadian cents
31.5
61.95
73.3
30.9
61.95
69.5
31.7
64.95
67.8
31.8
64.95
63.6
125.9
253.8
274.2
2008 UK pence
US cents
Canadian cents
40.9
81.15
80.8
41.0
81.15
82.5
42.2
84.00
85.8
52.2
84.00
108.6
176.3
330.3
357.7
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.
Future dividends will be dependent on future earnings, the financial condition of the group, the Risk factors set out on pages 12-14 and other
matters that may affect the business of the group set out in Financial and operating performance on page 50 and in Liquidity and capital resources on
page 58.
Legal proceedings
Save as disclosed in the following paragraphs, no member of the group is
a party to, and no property of a member of the group is subject to, any
pending legal proceedings that are significant to the group.
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 with
one group of the class actions has received preliminary approval from the
court and final approval is expected in 2009.
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 claims
arising from the incident, except for a small number of claims that remain
on appeal following dismissal in the trial court.
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 continue to discuss BP’s responses with the objective of
the CSB agreeing to close-out its recommendations.
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