EX-7 2 a31122017bp20-fexhibit7.htm EXHIBIT 7 Exhibit
Exhibit 7

Computation of ratio of earnings to fixed charges (unaudited)
 

 
$ million, except ratios
 
 
2017

2016

2015

2014

2013

Earnings available for fixed charges:
 
 
 
 
 
Pre-tax income (loss) from continuing operations before adjustment for income or loss from joint ventures and associates(a)
4,673

(4,255
)
(11,382
)
1,578

27,032

   Fixed charges
2,960

2,704

2,689

2,924

3,021

   Amortization of capitalized interest
219

186

298

327

226

   Distributed income of joint ventures and associates
1,253

1,105

1,614

1,911

1,391

   Interest capitalized
(297
)
(244
)
(179
)
(185
)
(238
)
   Preference dividend requirements, gross of tax(b)
(3
)
—

(2
)
(2
)
(2
)
Income of non-controlling interests not incurring fixed charges
(14
)
(14
)
(25
)
(2
)
—

Total earnings available for fixed charges
8,791

(518
)
(6,987
)
6,551

31,430

 
 
 
 
 
 
Fixed charges:
 
 
 
 
 
   Interest expensed
1,421

977

886

840

844

   Interest capitalized
297

244

179

185

238

   Rental expense representative of interest
1,239

1,483

1,622

1,897

1,937

   Preference dividend requirements, gross of tax(b)
3

—

2

2

2

Total fixed charges
2,960

2,704

2,689

2,924

3,021

 
 
 
 
 
 
Ratio of earnings to fixed charges
3.0

—

—

2.2

10.4

 
 
 
 
 
 
Deficiency of earnings to fixed charges
—

(3,222
)
(9,676
)
—

—


(a)
2017 includes a pre-tax charge of $3,180 million (2016 $7,134 million pre-tax charge, 2015 $11,956 million pre-tax charge, 2014 $819 million pre-tax charge and 2013 $469 million pre-tax charge) relating to the Gulf of Mexico oil spill.
(b)
Preference dividend requirements are determined by grossing up using the group’s effective tax rate, except in periods when the group’s effective tax rate exceeds 100%, in which case zero is disclosed.

 

1