BP Regulatory News (BP.)

BP p.l.c. Group results

Third quarter and nine months 2017

For a printer friendly copy of this announcement, please click on the link below to open a PDF version:

http://www.rns-pdf.londonstockexchange.com/rns/0280V_-2017-10-30.pdf

Top of page 1

Highlights

Year-to-date organic balance at $49 a barrel

Share buybacks announced to offset scrip dilution

Reported third quarter group oil and gas production up 14%

· Underlying replacement cost (RC) profit* for the third quarter was $1.9 billion, compared with $684 million in previous quarter.

· Third-quarter operating cash flow, excluding Gulf of Mexico oil spill payments*, was $6.6 billion. Including these payments, operating cash flow* for the quarter was $6.0 billion.

· Underlying operating cash flow* in first nine months exceeded organic capital expenditure* plus full dividend* - equivalent to organic cash balance including full dividend at Brent oil price of $49 a barrel, or $42 a barrel including cash dividend only(a).

· Dividend unchanged at 10 cents per share.

· Recommencing share buyback programme in fourth quarter to offset ongoing dilutive effect of scrip dividends over time.

· Reported group oil and gas production in the third quarter averaged 3.6 million barrels of oil equivalent a day, 14% higher than in the third quarter of 2016.

· Three Upstream major projects* began production in the quarter.

· Downstream underlying quarterly earnings were the highest for five years, second-highest on a RC basis.

· Around $4.5 billion in disposal proceeds are expected for full year 2017, with $1.0 billion received in first nine months. Proceeds expected in the fourth quarter include those from the SECCO transaction ($1.4 billion) and the initial public offering of BP Midstream Partners LP's common units ($0.7 billion).

Financial summary

Third quarter 2017

See chart on PDF

Third

Second

Third

Nine

Nine

quarter

quarter

quarter

months

months

$ million

2017

2017

2016

2017

2016

Profit (loss) for the period(b)

1,769

144

1,620

3,362

(382)

Inventory holding (gains) losses*, net of tax

(390)

409

41

(18)

(689)

RC profit (loss)*

1,379

553

1,661

3,344

(1,071)

Net (favourable) adverse impact of

non-operating items* and fair value accounting

effects*, net of tax

486

131

(728)

715

3,256

Underlying RC profit

1,865

684

933

4,059

2,185

RC profit (loss) per ordinary share (cents)*

6.98

2.80

8.82

17.01

(5.74)

RC profit (loss) per ADS (dollars)

0.42

0.17

0.53

1.02

(0.34)

Underlying RC profit per ordinary share (cents)*

9.44

3.47

4.96

20.65

11.70

Underlying RC profit per ADS (dollars)

0.57

0.21

0.30

1.24

0.70

(a)

See organic balance/organic cash balance definition and further information in the Glossary on page 29.

(b)

Profit attributable to BP shareholders.

Bob Dudley - Group chief executive:

"We are steadily building a track record of delivering on our plans and growing across our businesses. This quarter, three new Upstream projects and the highest Downstream earnings in five years, underpinned by reliable operations and disciplined spending, have generated healthy earnings and cash flow. There is still room for further improvement and we will keep striving to increase sustainable free cash flow* and distributions to shareholders."

* See definitions in the Glossary on page 29. RC profit (loss), underlying RC profit, operating cash flow excluding Gulf of Mexico oil spill payments / Underlying operating cash flow and organic capital expenditure are non-GAAP measures.

The commentary above and following should be read in conjunction with the cautionary statement on page 32.

Earnings

BP's profit for the third quarter and nine months was $1,769 million and $3,362 million respectively, compared with a profit of $1,620 million and a loss of $382 million for the same periods in 2016.

The third-quarter replacement cost (RC) profit was $1,379 million, compared with $1,661 million for the same period in 2016. After adjusting for a net charge for non-operating items of $274 million and net adverse fair value accounting effects of $212 million (both on a post-tax basis), underlying RC profit for the third quarter was $1,865 million, compared with $933 million for the same period in 2016.

For the nine months, RC profit was $3,344 million, compared with a loss of $1,071 million a year ago. After adjusting for a net charge for non-operating items of $794 million and net favourable fair value accounting effects of $79 million (both on a post-tax basis), underlying RC profit for the nine months was $4,059 million, compared with $2,185 million for the same period in 2016.

See further information on page 3.

Non-operating items

Non-operating items amounted to a charge of $385 million pre-tax and $274 million post-tax for the quarter and a charge of $1,297 million pre-tax and $794 million post-tax for the nine months. See further information on page 25.

Effective tax rate

The effective tax rate (ETR) on RC profit or loss* for the third quarter and nine months was 43% for both periods, compared with -16% and 73% for the same periods in 2016. Adjusting for non-operating items and fair value accounting effects and the impact of the reduction in the rate of the UK North Sea supplementary charge in the third quarter 2016, the adjusted ETR* for the third quarter and nine months was 40% and 42% respectively, compared with 37% and 25% for the same periods in 2016.

The adjusted ETR for the third quarter and nine months is higher than a year ago mainly due to changes in the mix of profits, notably the impact of the renewal of our interest in the Abu Dhabi onshore oil concession. We continue to expect the full year adjusted ETR to be above 40%. Adjusted ETR is a non-GAAP measure. See further information on page 29.

Dividend

BP today announced a quarterly dividend of 10.00 cents per ordinary share ($0.600 per ADS), which is expected to be paid on 21 December 2017. The corresponding amount in sterling will be announced on 11 December 2017. See page 22 for further information.

Share buybacks

BP will recommence a share buyback programme in the fourth quarter, intended to offset the ongoing dilutive effect of scrip dividends over time. The programme will not necessarily match the dilution on a quarterly basis but will reflect the ongoing judgement of various factors including changes in the price environment, the underlying performance of the business, the outlook for the group's financial framework and other market factors which may vary from quarter to quarter.

Operating cash flow*

Excluding post-tax amounts related to the Gulf of Mexico oil spill, operating cash flow* for the third quarter and nine months was $6.6 billion and $17.9 billion respectively, compared with $4.8 billion and $13.1 billion for the same periods in 2016. Including amounts relating to the Gulf of Mexico oil spill, operating cash flow for the third quarter and nine months was $6.0 billion and $13.0 billion respectively, compared with $2.5 billion and $8.3 billion for the same periods in 2016.

Capital expenditure*

Organic capital expenditure* for the third quarter and nine months was $4.0 billion and $11.9 billion respectively, compared with $3.5 billion and $12.2 billion for the same periods in 2016.

Inorganic capital expenditure* for the third quarter and nine months was $0.5 billion and $1.1 billion respectively, compared with $0.05 billion, and $0.3 billion for the same periods in 2016.

Organic and inorganic capital expenditure are non-GAAP measures. See page 24 for further information.

Divestment proceeds*

Divestment proceeds were $0.2 billion for the third quarter and $1.0 billion for the nine months, compared with $0.6 billion and $2.2 billion for the same periods in 2016.

Net debt*

Net debt at 30 September 2017 was $39.8 billion, compared with $32.4 billion a year ago. The net debt ratio* at 30 September 2017 was 28.4%, compared with 25.9% a year ago. Net debt and the net debt ratio are non-GAAP measures. See page 23 for more information.

Brian Gilvary - Chief financial officer:

"We have made strong progress this year in adjusting to the lower oil price environment and have now brought our finances, including the full dividend, back into organic balance at an oil price just below $50 a barrel. Given the momentum we see across our businesses and our confidence in the outlook for the group's finances, we will be recommencing a share buyback programme this quarter. We intend to offset the ongoing dilution from the scrip dividend over time."

The commentary above should be read in conjunction with the cautionary statement on page 32.

Third

Second

Third

Nine

Nine

quarter

quarter

quarter

months

months

$ million

2017

2017

2016

2017

2016

Underlying RC profit before interest and tax*

Upstream

1,562

710

(224)

3,642

(942)

Downstream

2,338

1,413

1,431

5,493

4,757

Rosneft

137

279

120

515

432

Other businesses and corporate

(398)

(366)

(260)

(1,204)

(814)

Consolidation adjustment - UPII*

(130)

135

17

(63)

(64)

Underlying RC profit before interest and tax

3,509

2,171

1,084

8,383

3,369

Finance costs and net finance expense relating to

pensions and other post-retirement benefits

(444)

(420)

(358)

(1,251)

(1,012)

Taxation on an underlying RC basis

(1,212)

(1,055)

164

(3,030)

(161)

Non-controlling interests

12

(12)

43

(43)

(11)

Underlying RC profit attributable to BP

shareholders

1,865

684

933

4,059

2,185

Third

Second

Third

Nine

Nine

quarter

quarter

quarter

months

months

$ million

2017

2017

2016

2017

2016

RC profit (loss) before interest and tax*

Upstream

1,242

795

1,196

3,293

(118)

Downstream

2,175

1,567

978

5,448

4,263

Rosneft

137

279

120

515

432

Other businesses and corporate(a)

(460)

(721)

(441)

(1,612)

(7,040)

Consolidation adjustment - UPII

(130)

135

17

(63)

(64)

RC profit (loss) before interest and tax

2,964

2,055

1,870

7,581

(2,527)

Finance costs and net finance expense relating to

pensions and other post-retirement benefits

(566)

(541)

(481)

(1,620)

(1,381)

Taxation on a RC basis

(1,031)

(949)

229

(2,574)

2,848

Non-controlling interests

12

(12)

43

(43)

(11)

RC profit (loss) attributable to BP shareholders

1,379

553

1,661

3,344

(1,071)

Inventory holding gains (losses)

557

(586)

(60)

37

996

Taxation (charge) credit on inventory holding

gains and losses

(167)

177

19

(19)

(307)

Profit (loss) for the period attributable to

BP shareholders

1,769

144

1,620

3,362

(382)

(a)

Includes costs related to the Gulf of Mexico oil spill. See page 11 and also Note 2 from page 17 for further information on the accounting for the Gulf of Mexico oil spill.

Strategic progress

Financial framework

Upstream

Three Upstream major projects, the Persephone project in Australia, the Juniper project in Trinidad, and the first phase of the Khazzan tight gas development in Oman, all started production in the third quarter. Six of the seven major projects BP expects to start production in 2017 are now online. The seventh, Zohr in Egypt, is on track to start up before the end of the year.

The delivery of the major projects continues to underpin Upstream production growth. Over the first nine months of 2017, Upstream production - which excludes Rosneft - was 10% higher than in the same period in 2016. Upstream unit production costs* are also 16% lower than the prior year, benefiting from production growth and continued focus on cost discipline.

In September, BP, together with our partners, extended the production-sharing agreement* (PSA) for the Azeri, Chirag and Deep Water Gunashli fields (ACG) in Azerbaijan by 25 years to the end of 2049.

Downstream

BP delivered double digit earnings growth from fuels marketing in the first nine months - premium fuel sales volumes have continued to grow and BP's convenience partnership model has been rolled out to more than 170 retail sites worldwide so far this year. In lubricants, BP renewed its global partnership and supply agreement with Volvo Car Group.

In manufacturing, both refining and petrochemicals have grown earnings, with our US refineries processing record levels of advantaged crude.

Operating cash flow, excluding Gulf of Mexico payments*, was $6.6 billion in the third quarter, and $17.9 billion for the first nine months of 2017. This compares with $13.1 billion for the first nine months of 2016.

Organic capital expenditure* of $4.0 billion in the third quarter brought the total for the first nine months to $11.9 billion. BP now expects total organic capital expenditure for 2017 will be around $16 billion, within the $15-17 billion range previously indicated.

In the first nine months of 2017, operating cash flow excluding Gulf of Mexico payments exceeded organic capital expenditure and cash dividend payments to BP shareholders by $1.5 billion.

Divestment proceeds*, as per the cash flow statement, for the first nine months of 2017 were $1.0 billion.

Significant proceeds are expected to be received in the fourth quarter, including those from the sale of BP's interest in the SECCO joint venture in China ($1.4 billion) and from the initial public offering of BP Midstream Partners LP's common units ($0.7 billion). Total proceeds in 2017 are expected to be around $4.5 billion.

Gulf of Mexico oil spill payments were $0.6 billion in the third quarter, significantly lower than in the first two quarters of the year. Payments over the first nine months of 2017 were $4.9 billion; for the full year payments are now expected to be around $5.5 billion.

BP continues to target a gearing* range of 20-30%. At the end of the third quarter, gearing was 28.4%.

Operating

metrics

Nine months 2017(vs. Nine months 2016)

Financial

metrics

Nine months 2017(vs. Nine months 2016)

SafetyTier 1 process safety events*

12

(-1)

Underlying RC profit

$4.1bn

(+$1.9bn)

SafetyReported recordable injury frequency*

0.21

(-4%)

Operating cash flow excluding Gulf of Mexico oil spill payments

$17.9bn

(+$4.8bn)

Group production

3,557mboe/d

(+10%)

Organic capital expenditure

$11.9bn

(-$0.3bn)

Upstream production (excludes Rosneft segment)

2,427mboe/d

(+10%)

Gulf of Mexico oil spill payments

$4.9bn

(+$0.03bn)

Upstream unit production costs

$7.17/boe

(-16%)

Divestment proceeds

$1.0bn

(-$1.2bn)

BP-operated Upstream operating efficiency*(a)

80.4%

Net debt ratio (gearing)

28.4%

(+2.5)

Refining availability*

95.0%

(-0.4)

Dividend per ordinary share(b)

10.00 cents

(-)

(a)

Reported on a one-quarter lagged basis and represents first half 2017 actuals only.

(b)

Represents dividend announced in the quarter (vs. prior year quarter).

The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 32.

Third

Second

Third

Nine

Nine

quarter

quarter

quarter

months

months

$ million

2017

2017

2016

2017

2016

Profit (loss) before interest and tax

1,255

796

1,183

3,301

(77)

Inventory holding (gains) losses*

(13)

(1)

13

(8)

(41)

RC profit (loss) before interest and tax

1,242

795

1,196

3,293

(118)

Net (favourable) adverse impact of

non-operating items* and fair value

accounting effects*

320

(85)

(1,420)

349

(824)

Underlying RC profit (loss) before interest

and tax*(a)

1,562

710

(224)

3,642

(942)

(a)

See page 7 for a reconciliation to segment RC profit before interest and tax by region.

The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 32.

Third

Second

Third

Nine

Nine

quarter

quarter

quarter

months

months

$ million

2017

2017

2016

2017

2016

Underlying RC profit (loss) before interest and tax

US

264

179

(151)

609

(1,123)

Non-US

1,298

531

(73)

3,033

181

1,562

710

(224)

3,642

(942)

Non-operating items(a)

US(b)

(97)

(34)

326

(143)

106

Non-US(c)(d)

(49)

13

1,139

(384)

1,011

(146)

(21)

1,465

(527)

1,117

Fair value accounting effects

US

(100)

92

(15)

184

(105)

Non-US

(74)

14

(30)

(6)

(188)

(174)

106

(45)

178

(293)

RC profit (loss) before interest and tax

US

67

237

160

650

(1,122)

Non-US

1,175

558

1,036

2,643

1,004

1,242

795

1,196

3,293

(118)

Exploration expense

US(b)

190

25

22

255

182

Non-US(d)(e)

107

825

781

1,304

1,225

297

850

803

1,559

1,407

Of which: Exploration expenditure written off(b)(d)(e)

217

753

687

1,231

1,108

Production (net of royalties)(f)

Liquids*(g) (mb/d)

US

408

418

353

425

386

Europe

123

122

112

120

119

Rest of World(g)

809

812

669

816

714

1,341

1,352

1,134

1,360

1,219

Natural gas (mmcf/d)

US

1,703

1,576

1,679

1,625

1,649

Europe

217

274

262

251

263

Rest of World

4,581

4,410

3,753

4,311

3,867

6,502

6,260

5,695

6,187

5,779

Total hydrocarbons*(g) (mboe/d)

US

702

689

643

705

670

Europe

161

169

157

163

164

Rest of World(g)

1,599

1,572

1,316

1,559

1,381

2,462

2,431

2,116

2,427

2,215

Average realizations*(h)

Total liquids(g)(i) ($/bbl)

47.45

46.27

40.99

47.87

36.50

Natural gas ($/mcf)

2.89

3.19

2.77

3.18

2.76

Total hydrocarbons(g) ($/boe)

33.23

33.59

29.37

34.63

27.20

(a)

Third quarter and nine months 2016 principally relate to impairment reversals in Angola and the North Sea.

(b)

Third quarter and nine months 2017 include the write-off of $145 million in relation to the value ascribed to certain licences in the deepwater Gulf of Mexico as part of the accounting for the acquisition of upstream assets from Devon Energy in 2011. This has been classified within the 'other' category of non-operating items.

(c)

Nine months 2017 includes an impairment charge arising following the announcement on 3 April 2017 of the agreement to sell the Forties Pipeline System business to INEOS.

(d)

Third quarter and nine months 2016 include $601 million of exploration write-offs relating to a licence in Brazil, of which $334 million relates to the value ascribed to the licence when acquired from Devon Energy in 2011, and has been classified within the 'other' category of non-operating items.

(e)

Second quarter and nine months 2017 include the write-off of exploration well and lease costs in Angola. Nine months 2017 also includes the write-off of exploration well costs in Egypt.

(f)

Includes BP's share of production of equity-accounted entities in the Upstream segment.

(g)

A minor adjustment has been made to comparative periods in 2016. See page 28 for more information.

(h)

Realizations are based on sales by consolidated subsidiaries only - this excludes equity-accounted entities.

(i)

Includes condensate, natural gas liquids and bitumen.

Third

Second

Third

Nine

Nine

quarter

quarter

quarter

months

months

$ million

2017

2017

2016

2017

2016

Profit (loss) before interest and tax

2,695

988

943

5,487

5,189

Inventory holding (gains) losses*

(520)

579

35

(39)

(926)

RC profit before interest and tax

2,175

1,567

978

5,448

4,263

Net (favourable) adverse impact of

non-operating items* and fair value

accounting effects*

163

(154)

453

45

494

Underlying RC profit before interest and tax*(a)

2,338

1,413

1,431

5,493

4,757

(a)

See page 9 for a reconciliation to segment RC profit before interest and tax by region and by business.

The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 32.

Third

Second

Third

Nine

Nine

quarter

quarter

quarter

months

months

$ million

2017

2017

2016

2017

2016

Underlying RC profit before interest and tax -

by region

US

640

283

298

1,477

1,224

Non-US

1,698

1,130

1,133

4,016

3,533

2,338

1,413

1,431

5,493

4,757

Non-operating items

US

(39)

28

(56)

(23)

74

Non-US

(16)

110

(140)

30

(21)

(55)

138

(196)

7

53

Fair value accounting effects

US

20

10

(178)

(32)

(343)

Non-US

(128)

6

(79)

(20)

(204)

(108)

16

(257)

(52)

(547)

RC profit before interest and tax

US

621

321

64

1,422

955

Non-US

1,554

1,246

914

4,026

3,308

2,175

1,567

978

5,448

4,263

Underlying RC profit before interest and tax - 

by business(a)(b)

Fuels

1,788

908

983

3,896

3,310

Lubricants

356

355

370

1,104

1,166

Petrochemicals

194

150

78

493

281

2,338

1,413

1,431

5,493

4,757

Non-operating items and fair value

accounting effects(c)

Fuels

(154)

159

(455)

9

(493)

Lubricants

(3)

(2)

1

(8)

(3)

Petrochemicals

(6)

(3)

1

(46)

2

(163)

154

(453)

(45)

(494)

RC profit before interest and tax(a)(b)

Fuels

1,634

1,067

528

3,905

2,817

Lubricants

353

353

371

1,096

1,163

Petrochemicals

188

147

79

447

283

2,175

1,567

978

5,448

4,263

BP average refining marker margin (RMM)* ($/bbl)

16.3

13.8

11.6

14.0

12.0

Refinery throughputs (mb/d)

US

737

708

613

713

660

Europe

768

782

795

784

802

Rest of World

240

198

242

207

237

1,745

1,688

1,650

1,704

1,699

Refining availability* (%)

95.3

94.5

95.4

95.0

95.4

Marketing sales of refined products (mb/d)

US

1,186

1,177

1,205

1,160

1,130

Europe

1,204

1,153

1,236

1,143

1,184

Rest of World

480

497

503

496

502

2,870

2,827

2,944

2,799

2,816

Trading/supply sales of refined products

3,088

2,996

2,581

3,015

2,755

Total sales volumes of refined products

5,958

5,823

5,525

5,814

5,571

Petrochemicals production (kte)

US

617

672

564

1,787

2,018

Europe

1,285

1,365

898

3,903

2,799

Rest of World

2,025

2,001

1,987

6,099

5,863

3,927

4,038

3,449

11,789

10,680

(a)

Segment-level overhead expenses are included in the fuels business result.

(b)

BP's share of income from petrochemicals at our Gelsenkirchen and Mülheim sites in Germany is reported in the fuels business.

(c)

For Downstream, fair value accounting effects arise solely in the fuels business.

Third

Second

Third

Nine

Nine

quarter

quarter

quarter

months

months

$ million

2017(a)

2017

2016

2017(a)

2016

Profit before interest and tax(b)

161

271

108

505

461

Inventory holding (gains) losses*

(24)

8

12

10

(29)

RC profit before interest and tax

137

279

120

515

432

Net charge (credit) for non-operating items*

-

-

-

-

-

Underlying RC profit before interest and tax*

137

279

120

515

432

Third

Second

Third

Nine

Nine

quarter

quarter

quarter

months

months

2017(a)

2017

2016

2017(a)

2016

Production (net of royalties) (BP share)

Liquids* (mb/d)

903

902

820

906

813

Natural gas (mmcf/d)

1,263

1,302

1,221

1,300

1,256

Total hydrocarbons* (mboe/d)

1,120

1,126

1,030

1,130

1,030

(a)

The operational and financial information of the Rosneft segment for the third quarter and nine months of the year is based on preliminary operational and financial results of Rosneft for the nine months ended 30 September 2017. Actual results may differ from these amounts.

(b)

The Rosneft segment result includes equity-accounted earnings arising from BP's 19.75% shareholding in Rosneft as adjusted for the accounting required under IFRS relating to BP's purchase of its interest in Rosneft and the amortization of the deferred gain relating to the divestment of BP's interest in TNK-BP. These adjustments have increased the reported profit before interest and tax for the third quarter and nine months 2017, as shown in the table above, compared with the equivalent amount in Russian roubles that we expect Rosneft to report in its own financial statements under IFRS. BP's share of Rosneft's profit before interest and tax for each year-to-date period is calculated by translating the amounts reported in Russian roubles into US dollars using the average exchange rate for the year to date. BP's share of Rosneft's earnings after finance costs, taxation and non-controlling interests, as adjusted, is included in the BP group income statement within profit before interest and taxation.

Third

Second

Third

Nine

Nine

quarter

quarter

quarter

months

months

$ million

2017

2017

2016

2017

2016

Profit (loss) before interest and tax

Gulf of Mexico oil spill

(84)

(347)

(66)

(466)

(5,966)

Other

(376)

(374)

(375)

(1,146)

(1,074)

Profit (loss) before interest and tax

(460)

(721)

(441)

(1,612)

(7,040)

Inventory holding (gains) losses*

-

-

-

-

-

RC profit (loss) before interest and tax

(460)

(721)

(441)

(1,612)

(7,040)

Net charge (credit) for non-operating items*

Gulf of Mexico oil spill

84

347

66

466

5,966

Other

(22)

8

115

(58)

260

Net charge (credit) for non-operating items

62

355

181

408

6,226

Underlying RC profit (loss) before interest and

tax*

(398)

(366)

(260)

(1,204)

(814)

Underlying RC profit (loss) before interest and

tax

US

(145)

(104)

(107)

(446)

(326)

Non-US

(253)

(262)

(153)

(758)

(488)

(398)

(366)

(260)

(1,204)

(814)

Non-operating items

US

(92)

(350)

(168)

(480)

(6,152)

Non-US

30

(5)

(13)

72

(74)

(62)

(355)

(181)

(408)

(6,226)

RC profit (loss) before interest and tax

US

(237)

(454)

(275)

(926)

(6,478)

Non-US

(223)

(267)

(166)

(686)

(562)

(460)

(721)

(441)

(1,612)

(7,040)

(a)

Capacity figures for 2016 include 23MW in the Netherlands managed by our Downstream segment.

Third

Second

Third

Nine

Nine

quarter

quarter

quarter

months

months

$ million

2017

2017

2016

2017

2016

Sales and other operating revenues (Note 5)

60,018

56,511

47,047

172,392

132,001

Earnings from joint ventures - after interest

and tax

231

160

174

596

477

Earnings from associates - after interest and tax

282

371

209

804

731

Interest and other income

185

127

146

434

392

Gains on sale of businesses and fixed assets

92

197

467

334

884

Total revenues and other income

60,808

57,366

48,043

174,560

134,485

Purchases

44,612

42,713

34,981

128,462

94,336

Production and manufacturing expenses(a)

5,454

5,761

5,517

16,470

22,482

Production and similar taxes (Note 6)

278

189

212

773

484

Depreciation, depletion and amortization (Note 5)

3,904

3,793

3,496

11,539

10,863

Impairment and losses on sale of businesses and

fixed assets

108

51

(1,424)

612

(1,359)

Exploration expense

297

850

803

1,559

1,407

Distribution and administration expenses

2,634

2,540

2,648

7,527

7,803

Profit (loss) before interest and taxation

3,521

1,469

1,810

7,618

(1,531)

Finance costs(a)

511

487

433

1,458

1,241

Net finance expense relating to pensions and

other post-retirement benefits

55

54

48

162

140

Profit (loss) before taxation

2,955

928

1,329

5,998

(2,912)

Taxation(a)

1,198

772

(248)

2,593

(2,541)

Profit (loss) for the period

1,757

156

1,577

3,405

(371)

Attributable to

BP shareholders

1,769

144