BP Amoco first quarter replacement cost profit, beforeexceptional items, was $761 million after adjusting for specialcharges of $84 million for merger integration costs. Results weredown 12% from the previous quarter and down 41% from the firstquarter of 1998. The decrease reflected a substantial deteriorationin the trading environment, the company said.

Domestic gas prices averaged $1.60/Mcf in the first quarter,compared to $1.80/Mcf in the first quarter of 1998. Domestic gasproduction was 2,433 MMcf/d in the first quarter of 1999, up from2,428 MMcf/d in the first quarter of 1998.

Exploration and production operating profit for the quarter of$904 million, after adjusting for special charges of $86 million,was down 26% from the first quarter last year when oil and gasprices were significantly higher. The effect of lower prices waspartially offset by cost savings and higher production.

Lower cash costs contributed $200 million to results. There wasan exceptional charge for the quarter of $860 million after taxthat related mainly to the first phase of restructuring followingthe merger of BP with Amoco. The major components of therestructuring charge are severance and property rationalization.

BP Amoco Group CEO John Browne said, “This is a good debutresult for BP Amoco in a tough environment. The reasons aretwofold. First, there are underlying performance improvements fromlower cash costs and higher volumes in all businesses and, second,we are beginning to see the benefits of the merger coming throughto the bottom line.”

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