BP 2005 Annual Report Download - page 4

2 Making energy more
March, of 9.375 cents per share. The annual dividend paid of
34.85 cents per share or 19.152 pence per share represents
an increase both in dollar and sterling terms over the past year
of 26%. During 2005, we have repurchased some $11.6 billion
of shares. Of these, 7% were cancelled and the remainder
were placed into treasury.
I mentioned earlier that this had been a testing year
for the board. In strategic terms, the advent of sustained
high oil prices presents new and different demands for the
development of the group’s business over the long term.
BP’s business has always been one with a long stride;
the group’s continued development for the long-term benefit
of shareholders over the next five to 10 years and beyond
has been an area of strategic focus for the board throughout
the year.
While our core strategy, explained in the Performance
review section on pages 8-26, remains substantially
unchanged, it is constantly reassessed in the light of
developing circumstances. For example, the launch of the
BP Alternative Energy business represents a greater focus
on the manner in which this business is viewed and the
importance we attach to alternative forms of energy
production for the future.
While scrutiny and shaping of strategy are principal
concerns of the board, the detailed monitoring work of
our board committees has continued, with the amount of
business they consider increasing annually. For instance, the
ethics and environment assurance committee under Walter
Massey’s chairmanship enhanced its focus in the area of
personal and process safety procedures in the light of the
Texas City incident, while the challenge of meeting new
financial reporting and accounting measures has been
overseen by the audit committee, chaired by Sir Ian Prosser.
Given the spread and complexity of the group’s interests
and assets, the work of the board committees is a major task
and I would like to thank the chairmen and members of these
committees for their efforts over the past year. Monitoring
work carried out by those committees allows the board as
DEAR SHAREHOLDER BP has just completed a demanding year.
During 2005, we have seen the price of crude oil rise to levels
that only two or three years ago would not have seemed at
all likely. As a result, and coupled with a sound operational
performance implementing our long-term strategy, we have
seen the group produce record results. However, the group
suffered the explosion at the Texas City refinery in the US.
Our people and our performance were also affected by
the Asian tsunami, by the hurricanes in the Gulf of Mexico
that buffeted our offshore and onshore facilities, impairing
production and distribution, and by other events. 2005 was
therefore a year of contrasts, which has been testing for
your board and immensely challenging for our executive
management team, led by John Browne.
BP’s ability to meet these challenges and, through
them all, to deliver excellent performance depends on the
work of the 96,200 people we employ. It also depends on
the exemplary leadership provided by John Browne and
the tremendously able team he heads. Their determination,
experience and creativity are needed to rise to the challenges
our business faces. I would like to thank John, his team
and all our staff around the world for their contribution
in 2005 and to recognize the value they have created for
our shareholders.
During 2005, we continued our policy of returning cash
in excess of our investment requirements to our shareholders
both through buybacks and through our progressive dividend
policy. I am pleased to confirm a dividend, to be paid in
Chairman’s letter