For the year ended 31 December 2007

	Millions of dollars	2007	2006	Change
	Receipts from customers	21,469	21,290	179
	Payments to suppliers and employees	(16,041)	(16,046)	5
	Payments for excise	(4,629)	(4,412)	(217)
1	Finance costs paid	(54)	(57)	3
2	Other net operating activities	(149)	(309)	160
	Net operating cash flows	596	466	130
3	Purchases of property, plant and equipment (PP&E) and major cyclical maintenance	(351)	(387)	36
	Other investing cash flows	(17)	(18)	1
	Net investing cash outflows	(368)	(405)	37
4	Net financing cash inflows/(outflows)	(270)	(34)	(236)
	Net (decrease)/increase in cash held	(42)	27	(69)

FINANCE COSTS $3m Net debt increased to $582 million at 31 December 2007, compared with $539 million at 31 December 2006. However, average net debt for 2007 was 23% lower than for 2006, resulting in decreased borrowing costs.

OTHER OPERATING ACTIVITIES $160m Net cash outflows from other net operating activities were lower than 2006 due to income taxes paid of $162 million in 2007, compared with $315 million in 2006. In addition, interest received was $6 million higher in 2007.

PURCHASES OF PP&E AND MAJOR CYCLICAL MAINTENANCE $36m Capital expenditure in 2007 was in line with the previous year.

NET FINANCING CASH OUTFLOWS $236m Net financing cash outflows increased due to lower net borrowings in 2007(i.e. higher repayments in 2007 relative to funds drawn down) and an increase in dividends paid. Total dividend payments in 2007 were $257 million, compared to $170 million in 2006.

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