EX-7 4 comp.txt COMPUTATION OF EARNINGS TO FIXED CHARGES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (Unaudited)
Year ended December 31, 2002 ------------ ($ million) Profit before taxation.................................................................. 11,264 BP's share of income in excess of dividends from joint ventures and associated undertakings............................................................... (259) Capitalized interest.................................................................... (100) ------------ Profit as adjusted...................................................................... 10,905 ============ Fixed charges Interest net of interest expense of joint ventures and associated undertakings and unwinding of discount and change in discount rate for provisions................. 926 Rental expense representative of interest.......................................... 453 Capitalized interest............................................................... 100 ------------ 1,479 ============ Total adjusted earnings available for payment of fixed charges.......................... 12,384 ============ Ratio of earnings to fixed charges...................................................... 8.4 ============ Total adjusted earnings available for payment of fixed charges, after taking account of adjustments to profit before taxation to accord with US GAAP............... 13,583 ============ Ratio of earnings to fixed charges with adjustments to accord with US GAAP.............. 9.2 ============
---------- (a) Principally currency translations, apart from 1999 for decommissioning provisions which includes the impact of adopting FRS12. For decommissioning provisions this also includes unwinding of discount and the effect of any change in discount rate. (b) Deducted in the balance sheet from the assets to which they apply. (c) Includes $484 million additional provisions in respect of acquisitions.