BP 2011 Annual Report Download - page 169

Additional information for shareholders
BP Annual Report and Form 20-F 2011 167
Additional information for shareholders
Relationships with suppliers
and contractors
Essential contracts
BP has contractual and other arrangements with numerous third parties in
support of its business activities. This report does not contain information
about any of these third parties as none of our arrangements with them are
considered to be essential to the business of BP.
Suppliers and contractors
Our processes are designed to enable us to choose suppliers carefully
on merit, avoiding conflicts of interest and inappropriate gifts and
entertainment. We expect suppliers to comply with legal requirements
and we seek to do business with suppliers who act in line with BP’s
commitments to compliance and ethics, as outlined in our code of conduct.
We engage with suppliers in a variety of ways, including performance
review meetings to identify mutually advantageous ways to improve
performance.
Creditor payment policy and practice
Statutory regulations issued under the UK Companies Act 2006 require
companies to make a statement of their policy and practice in respect
of the payment of trade creditors. In view of the international nature of
the group’s operations there is no specific group-wide policy in respect
of payments to suppliers. Relationships with suppliers are, however,
governed by the group’s policy commitment to long-term relationships
founded on trust and mutual advantage. Within this overall policy, individual
operating companies are responsible for agreeing terms and conditions for
their business transactions and ensuring that suppliers are aware of the
terms of payment.
Share prices and listings
Markets and market prices
The primary market for BP’s ordinary shares is the London Stock Exchange
(LSE). BP’s ordinary shares are a constituent element of the Financial
Times Stock Exchange 100 Index. BP’s ordinary shares are also traded on
the Frankfurt Stock Exchange in Germany.
Trading of BP’s shares on the LSE is primarily through the use of
the Stock Exchange Electronic Trading Service (SETS), introduced in 1997
for the largest companies in terms of market capitalization whose primary
listing is the LSE. Under SETS, buy and sell orders at specific prices may
be sent electronically to the exchange by any firm that is a member of the
LSE, on behalf of a client or on behalf of itself acting as a principal. The
orders are then anonymously displayed in the order book. When there is
a match on a buy and a sell order, the trade is executed and automatically
reported to the LSE. Trading is continuous from 8.00 a.m. to 4.30 p.m. UK
time but, in the event of a 20% movement in the share price either way,
the LSE may impose a temporary halt in the trading of that company’s
shares in the order book to allow the market to re-establish equilibrium.
Dealings in ordinary shares may also take place between an investor and a
market-maker, via a member firm, outside the electronic order book.
In the US, the company’s securities are traded on the New York
Stock Exchange (NYSE) in the form of ADSs, for which JPMorgan Chase
Bank, N.A. is the depositary (the Depositary) and transfer agent. The
Depositary’s principal office is 1 Chase Manhattan Plaza, N.A., Floor 21,
New York, NY 10005-1401, US. Each ADS represents six ordinary shares.
ADSs are listed on the New York Stock Exchange. ADSs are evidenced
by American depositary receipts (ADRs), which may be issued in either
certificated or book entry form.
The following table sets forth for the periods indicated the highest
and lowest middle market quotations for BP’s ordinary shares and ADSs
for the periods shown. These are derived from the highest and lowest
sales prices as reported on the LSE and NYSE, respectively.
Pence Dollars
Ordinary shares American depositary sharesa
High Low High Low
Year ended 31 December
2007 640.00 504.50 79.77 58.62
2008 657.25 370.00 77.69 37.57
2009 613.40 400.00 60.00 33.71
2010 658.20 296.00 62.38 26.75
2011 514.90 361.25 49.50 33.63
Year ended 31 December
2010: First quarter 640.10 555.00 62.38 52.00
Second quarter 658.20 296.00 60.98 26.75
Third quarter 438.25 312.65 41.59 28.79
Fourth quarter 479.00 418.25 44.83 39.58
2011: First quarter 514.90 431.00 49.50 42.51
Second quarter 480.23 425.00 47.45 41.26
Third quarter 483.04 361.25 47.09 35.10
Fourth quarter 477.54 363.95 45.83 33.63
2012: First quarter (to 17 February) 501.37 455.05 47.67 42.85
Month of
September 2011 426.04 361.25 39.72 35.10
October 2011 477.54 363.95 45.83 33.63
November 2011 466.05 416.99 44.89 39.41
December 2011 471.45 433.00 44.26 40.40
January 2012 487.60 455.05 46.03 42.85
February 2012 (to 17 February) 501.37 473.05 47.67 45.23
a
One ADS is equivalent to six 25 cent ordinary shares.