6-K 1 a31122018bp6kq4.htm 6-K Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


Form 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

for the period ended 31 December 2018
Commission File Number 1-06262

BP p.l.c.
(Translation of registrant’s name into English)

1 ST JAMES’S SQUARE, LONDON, SW1Y 4PD, ENGLAND
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
 
 
 
 
Form 20-F  Form 40-F ¨
 
 
 
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE PROSPECTUS INCLUDED IN THE REGISTRATION STATEMENT ON FORM F-3 (FILE NOS. 333-226485, 333-226485-01 AND 333-226485-02) OF BP p.l.c., BP CAPITAL MARKETS p.l.c. AND BP CAPITAL MARKETS AMERICA INC.; THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-67206) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-79399) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-103924) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-123482) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-123483) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-131583) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-131584) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-132619) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-146868) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-146870) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-146873) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-173136) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-177423) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-179406) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-186462) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-186463) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-199015) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-200794) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-200795) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-207188) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-207189) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-210316) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-210318) OF BP p.l.c., AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.


1


BP p.l.c. and subsidiaries
Form 6-K for the period ended 31 December 2018(a) 

(a)
In this Form 6-K, references to the full year 2018 and full year 2017 refer to full year periods ended 31 December 2018 and 31 December 2017 respectively. References to the fourth quarter 2018 and fourth quarter 2017 refer to the three-month periods ended 31 December 2018 and 31 December 2017 respectively.
(b)
This discussion should be read in conjunction with the consolidated financial statements and related notes provided elsewhere in this Form 6-K and with the information, including the consolidated financial statements and related notes, in BP’s Annual Report on Form 20-F for the year ended 31 December 2017.


2


Group results fourth quarter and full year 2018

Highlights
Building business momentum, growing earnings and returns
•    More than double full-year earnings, near double returns
Profit for the fourth quarter and full year was $766 million and $9,383 million respectively, compared with $27 million and $3,389 million for the same periods in 2017. Underlying replacement cost profit for full year 2018 was $12.7 billion, more than double that reported for 2017. The fourth quarter result was $3.5 billion, driven by the strong operating performance across all business segments.
Return on average capital employed(a) was 11.2% compared to 5.8% in 2017.
Operating cash flow for the full year 2018 was $22.9 billion including the impact of Gulf of Mexico oil spill payments. This compares with $18.9 billion for 2017(b). 
Gulf of Mexico oil spill payments in 2018 totalled $3.2 billion on a post-tax basis.
Total divestments and other proceeds in 2018 were $3.5 billion. BP intends to complete more than $10 billion divestments over the next two years, which includes plans announced following the BHP transaction.
Dividend of 10.25 cents a share announced for the fourth quarter, 2.5% higher than a year earlier.
Record Upstream reliability, record refining throughput
Operational reliability was very strong in 2018 for both main business segments.
For the year, BP-operated Upstream plant reliability was a record 96%, and Downstream delivered refining availability of 95% and record refining throughput.
Reported oil and gas production averaged 3.7 million barrels of oil equivalent a day for 2018. Upstream underlying production, which excludes Rosneft, was 8.2% higher than 2017.
Growing the business, advancing the energy transition
Six Upstream major projects started up in 2018, making a total of 19 brought online since 2016.
Reserves replacement ratio (RRR) for 2018, including Rosneft, is 100%(c). Including acquisitions and disposals, RRR is 209%, primarily reflecting the BHP transaction.
Fuels marketing continued to grow, with over 25% more convenience partnership sites, as well as further retail expansion in Mexico.
BP set out its approach to advancing the energy transition in 2018, introducing its ‘reduce-improve-create’ framework and setting clear targets for operational greenhouse gas emissions, towards which it is already making significant progress.
BP acquired UK electric vehicle charging company Chargemaster and Lightsource BP saw important expansion internationally.
(a)  
The nearest equivalent GAAP measures of the numerator and denominator are profit for the period and average capital employed respectively (see below).
(b)  
Operating cash flow excluding Gulf of Mexico oil spill payments is a measure used by management and BP believes it is useful as it allows for meaningful comparisons between reporting periods. It is not however disclosed in this SEC filing because SEC regulations do not permit the inclusion of this non-GAAP metric.
(c) 
On a combined basis of subsidiaries and equity-accounted entities.
Financial summary
 
Fourth

Fourth

 




 
quarter

quarter

 
Year

Year

$ million
 
2018

2017

 
2018

2017

Profit for the period(a)
 
766

27

 
9,383

3,389

Inventory holding (gains) losses, before tax
 
2,574

(816
)
 
801

(853
)
Taxation charge (credit) on inventory holding gains and losses
 
(623
)
206

 
(198
)
225

RC profit (loss)
 
2,717

(583
)
 
9,986

2,761

Net (favourable) adverse impact of non-operating items and fair value accounting effects, before tax
 
668

2,559

 
3,380

3,730

Taxation charge (credit) on non-operating items and fair value accounting effects
 
92

131

 
(643
)
(325
)
Underlying RC profit
 
3,477

2,107

 
12,723

6,166

Profit per ordinary share (cents)
 
3.83

0.14

 
46.98

17.20

Profit per ADS (dollars)
 
0.23

0.01

 
2.82

1.03

RC profit per ordinary share (cents)
 
13.58

(2.94
)
 
50.00

14.02

RC profit per ADS (dollars)
 
0.81

(0.18
)
 
3.00

0.84

Underlying RC profit per ordinary share (cents)
 
17.38

10.64

 
63.70

31.31

Underlying RC profit per ADS (dollars)
 
1.04

0.64

 
3.82

1.88

Average capital employed ($ billion)
 
 
 
 
165.5

159.4

(a)
Profit attributable to BP shareholders.

RC profit (loss), underlying RC profit and return on average capital employed are non-GAAP measures. These measures and Upstream plant reliability, refining availability, major projects, inventory holding gains and losses, non-operating items, fair value accounting effects, underlying production and reserves replacement ratio are defined in the Glossary on page 36.
The commentary above and following should be read in conjunction with the cautionary statement on page 39.

3


Group headlines
Results
BP’s profit for the fourth quarter and full year was $766 million and $9,383 million respectively, compared with $27 million and $3,389 million for the same periods in 2017.
For the full year, replacement cost (RC) profit* was $9,986 million, compared with $2,761 million in 2017. Underlying RC profit* was $12,723 million, compared with $6,166 million in 2017. Underlying RC profit is after adjusting RC profit for a net charge for non-operating items* of $2,805 million and net favourable fair value accounting effects* of $68 million (both on a post-tax basis).
For the fourth quarter, RC profit was $2,717 million, compared with a loss of $583 million in 2017. Underlying RC profit was $3,477 million compared with $2,107 million for the same period in 2017. Underlying RC profit is after adjusting RC profit for a net charge for non-operating items of $1,186 million and net favourable fair value accounting effects of $426 million (both on a post-tax basis).
See further information on pages 5, 30 and 31.
Depreciation, depletion and amortization
The charge for depreciation, depletion and amortization was $15.5 billion in 2018, compared with $15.6 billion in 2017. In 2019, we expect the charge to be in line with 2018.
Non-operating items
Non-operating items amounted to a post-tax charge of $1,186 million for the quarter and $2,805 million for the full year. The charge for the quarter includes the impact of the annual update of environmental provisions, changes to non-Gulf of Mexico oil spill related legal provisions, as well as further restructuring costs. The group restructuring programme originally announced in 2014 has now been completed. See further information on page 30.
Effective tax rate
The effective tax rate (ETR) on the profit for the fourth quarter and full year was 68% and 43% respectively, compared with 95% and 52% for the same periods in 2017.
The ETR on RC profit or loss* for the fourth quarter and full year was 45% and 42% respectively. The ETR for both periods in 2017 was significantly impacted by the effect of non-operating items and therefore was not a meaningful measure.
Adjusting for non-operating items and fair value accounting effects, the underlying ETR* for the fourth quarter and full year was 38% for both periods, compared with 27% and 38% for the same periods in 2017. The higher underlying ETR for the fourth quarter reflects the reassessment of the recognition of deferred tax assets, partly offset by changes in the geographical mix of profits. In the current environment the underlying ETR for 2019 is expected to be around 40%. ETR on RC profit or loss and underlying ETR are non-GAAP measures.
Dividend
BP today announced a quarterly dividend of 10.25 cents per ordinary share ($0.615 per ADS), which is expected to be paid on 29 March 2019. The corresponding amount in sterling will be announced on 18 March 2019. See page 27 for further information.
 
Share buybacks
BP repurchased 2 million ordinary shares at a cost of $16 million, including fees and stamp duty, during the fourth quarter of 2018. For the full year, BP repurchased 50 million ordinary shares at a cost of $355 million, including fees and stamp duty. We expect to continue our share buyback programme, and to fully offset the impact of scrip dilution since the third quarter of 2017 by the end of 2019.
Operating cash flow*
Operating cash flow was $6.8 billion in the fourth quarter and $22.9 billion in the full year including the impact of Gulf of Mexico oil spill payments of $0.3 billion and $3.2 billion respectively. These compare with $5.9 billion for the fourth quarter of 2017 and $18.9 billion for the full year of 2017.
Capital expenditure*
Total capital expenditure for the fourth quarter and full year was $12.9 billion and $25.1 billion respectively, compared with $4.8 billion and $17.8 billion for the same periods in 2017.
Organic capital expenditure* for the fourth quarter and full year was $4.4 billion and $15.1 billion respectively, compared with $4.6 billion and $16.5 billion for the same periods in 2017.
Inorganic capital expenditure* for the fourth quarter and full year was $8.5 billion and $9.9 billion respectively, including $6.7 billion relating to the BHP acquisition (see Note 3), compared with $0.2 billion and $1.3 billion for the same periods in 2017.
Organic capital expenditure and inorganic capital expenditure are non-GAAP measures. See page 29 for further information.
Divestment and other proceeds
Total divestment and other proceeds for the year were $3.5 billion, compared with $4.3 billion a year ago, and includes $0.6 billion loan repayment to BP relating to the refinancing of Trans Adriatic Pipeline AG in the fourth quarter. Divestment proceeds* were $2.4 billion for the fourth quarter and $2.9 billion for the full year, compared with $2.5 billion and $3.4 billion for the same periods in 2017.
Debt
Gross debt at 31 December 2018 was $65.8 billion compared with $63.2 billion a year ago. Gross debt ratio* at 31 December 2018 was 39.3%, compared with 38.6% a year ago.
Net debt* at 31 December 2018 was $44.1 billion, compared with $37.8 billion a year ago. Gearing* or net debt ratio* at 31 December 2018 was 30.3%, compared with 27.4% a year ago.
Net debt, net debt ratio and gearing are non-GAAP measures. See page 27 for more information.
Reserves replacement ratio*
The organic reserves replacement ratio on a combined basis of subsidiaries and equity-accounted entities was 100% for the year. Including acquisitions and divestments, such as the BHP transaction and investment in LLC Kharampurneftegaz in Russia, the total reserves replacement ratio was 209%.






* For items marked with an asterisk throughout this document, definitions are provided in the Glossary on page 36.
The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 39.

4


Analysis of underlying RC profit* before interest and tax
 
 
Fourth

Fourth

 




 
 
quarter

quarter

 
Year

Year

$ million
 
2018

2017

 
2018

2017

Underlying RC profit before interest and tax
 
 
 
 
 
 
Upstream
 
3,886

2,223

 
14,550

5,865

Downstream
 
2,169

1,474

 
7,561

6,967

Rosneft
 
431

321

 
2,316

836

Other businesses and corporate
 
(344
)
(394
)
 
(1,558
)
(1,598
)
Consolidation adjustment – UPII*
 
142

(149
)
 
211

(212
)
Underlying RC profit before interest and tax
 
6,284

3,475

 
23,080

11,858

Finance costs and net finance expense relating to pensions and other post-retirement benefits
 
(654
)
(550
)
 
(2,176
)
(1,801
)
Taxation on an underlying RC basis
 
(2,148
)
(782
)
 
(7,986
)
(3,812
)
Non-controlling interests
 
(5
)
(36
)
 
(195
)
(79
)
Underlying RC profit attributable to BP shareholders
 
3,477

2,107

 
12,723

6,166

Reconciliations of underlying RC profit or loss to the nearest equivalent IFRS measure are provided on page 3 for the group and on pages 8-13 for the segments.
 
Analysis of RC profit (loss)* before interest and tax and reconciliation to profit for the period
 
 
Fourth

Fourth

 




 
 
quarter

quarter

 
Year

Year

$ million
 
2018

2017

 
2018

2017

RC profit before interest and tax
 
 
 
 
 
 
Upstream
 
4,168

1,928

 
14,328

5,221

Downstream
 
2,138

1,773

 
6,940

7,221

Rosneft
 
400

321

 
2,221

836

Other businesses and corporate(a)
 
(1,110
)
(2,833
)
 
(3,521
)
(4,445
)
Consolidation adjustment – UPII
 
142

(149
)
 
211

(212
)
RC profit before interest and tax
 
5,738

1,040

 
20,179

8,621

Finance costs and net finance expense relating to pensions and other post-retirement benefits
 
(776
)
(674
)
 
(2,655
)
(2,294
)
Taxation on a RC basis
 
(2,240
)
(913
)
 
(7,343
)
(3,487
)
Non-controlling interests
 
(5
)
(36
)
 
(195
)
(79
)
RC profit (loss) attributable to BP shareholders
 
2,717

(583
)
 
9,986

2,761

Inventory holding gains (losses)*
 
(2,574
)
816

 
(801
)
853

Taxation (charge) credit on inventory holding gains and losses
 
623

(206
)
 
198

(225
)
Profit for the period attributable to BP shareholders
 
766

27

 
9,383

3,389

(a)
Includes costs related to the Gulf of Mexico oil spill. See page 13 and also Note 2 on page 21 for further information on the accounting for the Gulf of Mexico oil spill.




5


Strategic progress
Upstream
2018 Upstream production, which excludes Rosneft, was 3% higher than in 2017, the highest since 2010. Adjusted for portfolio changes and PSA* impacts, underlying production* was 8.2% higher than 2017 due to major project* ramp-ups and improved plant reliability*. Upstream production for the fourth quarter was 2,627mboe/d, 1.8% higher than a year earlier. Upstream unit production costs* for 2018 were higher than 2017 due to increased wellwork* activity and the impact of higher prices on production entitlements.
The Clair Ridge project, west of Shetland in the North Sea, was the sixth Upstream major project to come onstream in 2018, following earlier start-ups in Egypt, Russia, Azerbaijan, the Gulf of Mexico and Australia. BP has brought 19 new major projects online over 2016-2018.
Sanction for the first phase of the Greater Tortue Ahmeyim LNG development offshore Mauritania and Senegal and the Cassia Compression and Matapal gas projects in Trinidad were announced in the quarter. In January, BP announced approval of the Atlantis Phase 3 development in the Gulf of Mexico.
Downstream
Strong Downstream performance in 2018, with record earnings in a fourth quarter.
2018 manufacturing performance was strong with Solomon availability* for the year of 95% and record refining throughput on a current portfolio basis.
There was continued growth in marketing, with our convenience partnership model now rolled out to around 1,400 sites across the network, an increase of more than 25% in the year, and BP’s retail network in Mexico reaching 440 sites by year end.
In the quarter, BP and SOCAR announced an agreement to explore the creation of a joint venture to build and operate a new world-scale petrochemicals complex in Turkey.
 

Advancing the energy transition
Solar development company Lightsource BP (BP 43%) has doubled its global footprint over the past year, with a presence now in 10 countries. Most recently it announced it would enter Brazil. During the fourth quarter, Lightsource BP was awarded power purchase agreements (PPAs) in Australia and in the US. In the UK, it announced an agreement to power AB InBev’s manufacturing plants through an innovative 100MW PPA.
BP made a series of investments in electric vehicle technology and infrastructure during the year that significantly progress its advanced mobility agenda. This included the purchase of Chargemaster, operator of the UK’s largest vehicle charging network, as well as venturing investment into battery company StoreDot.
Financial framework
Operating cash flow* was $22.9 billion for the full year of 2018, including Gulf of Mexico oil spill payments of $3.2 billion for the full year. This compares with $18.9 billion for the full year of 2017.
Organic capital expenditure* for the full year of 2018 was $15.1 billion in the range of $15-16 billion previously indicated. BP expects 2019 organic capital expenditure to be in the range of $15-17 billion.
Divestments and other proceeds totalled $3.5 billion for the full year. BP intends to complete more than $10 billion divestments over the next two years, which includes plans announced following the BHP transaction.
Gulf of Mexico oil spill payments on a post-tax basis totalled $3.2 billion in the full year of 2018. Payments for 2019 are expected to be around $2 billion on a post-tax basis.
Gearing* at the end of the quarter was 30.3%. At current oil prices, and in line with growing free cash flow* supported by divestment proceeds, we expect gearing to move towards the middle of our targeted range of 20-30% in 2020.

Operating metrics
 
 Year 2018
 
Financial metrics
 
 Year 2018
 
(vs. Year 2017)
 
 
(vs. Year 2017)
Tier 1 process safety events*
 
16
 
Underlying RC profit*i
 
$12.7bn
 
(-2)
 
 
(+$6.6bn)
Reported recordable injury frequency*
 
0.20
 
Operating cash flow excluding Gulf of Mexico oil spill payments (post-tax)
 
(b) 
 
(-9%)
 
 
 
Group production
 
3,683mboe/d
 
Organic capital expenditureii
 
$15.1bn
 
(+2.4%)
 
 
(-$1.4bn)
Upstream production (excludes Rosneft segment)
 
2,539mboe/d
 
Gulf of Mexico oil spill payments (post-tax)
 
$3.2bn
 
(+3.0%)
 
 
(-$1.9bn)
Upstream unit production costs
 
$7.15/boe
 
Divestment proceeds*
 
$2.9bn
 
(+0.6%)
 
 
(-$0.6bn)
BP-operated Upstream plant reliability(a)
 
95.7%
 
Net debt ratio* (gearing)iii
 
30.3%
 
(+1.0)
 
 
(+2.9)
Refining availability*
 
94.9%
 
Dividend per ordinary share(c)
 
10.25 cents
 
(-0.4)
 
 
(+2.5%)
 
 
 
 
Return on average capital employed*(d)iv
 
11.2%
 
 
 
 
(+5.4)
(a)
BP-operated Upstream operating efficiency* has been replaced with Upstream plant reliability as a group operating metric in the first quarter 2018. It is more comparable with the equivalent metric disclosed for the Downstream, which is ‘Refining availability’.
(b)
SEC regulations do not permit inclusion of this non-GAAP metric in this SEC filing. Operating cash flow excluding Gulf of Mexico oil spill payments is calculated by excluding post-tax payments relating to the Gulf of Mexico oil spill from net cash provided by operating activities, as reported in the condensed group cash flow statement. For the full year, net cash provided by operating activities was $22.9 billion and post-tax Gulf of Mexico oil spill payments were $3.2 billion.
(c)
Represents dividend announced in the quarter (vs. prior year quarter).
(d)
Return on average capital employed is included as this is a full year report.


6




 
Nearest GAAP equivalent measures
i
Profit for the period:
$9.4bn
ii
Capital expenditure*:
$25.1bn
iii
Gross debt ratio*:
39.3%
iv
Numerator: Profit attributable to BP shareholders
$9.4bn
 
Denominator: Average capital employed
$165.5bn


The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 39.

7


Upstream
 
 
Fourth

Fourth

 




 
 
quarter

quarter

 
Year

Year

$ million
 
2018

2017

 
2018

2017

Profit before interest and tax
 
4,156

1,928

 
14,322

5,229

Inventory holding (gains) losses*
 
12


 
6

(8
)
RC profit before interest and tax
 
4,168

1,928

 
14,328

5,221

Net (favourable) adverse impact of non-operating items* and fair value accounting effects*
 
(282
)
295

 
222

644

Underlying RC profit before interest and tax*(a)
 
3,886

2,223

 
14,550

5,865

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

Financial results
The replacement cost profit before interest and tax for the fourth quarter and full year was $4,168 million and $14,328 million respectively, compared with $1,928 million and $5,221 million for the same periods in 2017. The fourth quarter and full year included a net non-operating gain of $136 million and a net charge of $183 million respectively, compared with a net charge of $144 million and $671 million for the same periods in 2017. Fair value accounting effects in the fourth quarter and full year had a favourable impact of $146 million and an adverse impact of $39 million respectively, compared with an adverse impact of $151 million and a favourable impact of $27 million in the same periods of 2017.

After adjusting for non-operating items and fair value accounting effects, the underlying replacement cost profit before interest and tax for the fourth quarter and full year was $3,886 million and $14,550 million respectively, compared with $2,223 million and $5,865 million for the same periods in 2017. The result for the fourth quarter mainly reflected higher liquids and gas realizations, strong gas marketing and trading results and higher production including BHP assets acquired by BPX Energy (previously known as the US Lower 48 business). The result for the full year mainly reflected higher liquids and gas realizations, higher production and lower exploration write-offs.
Production
Production for the quarter was 2,627mboe/d, 1.8% higher than 2017. Underlying production* for the quarter increased by 3.4%, due to major project ramp-ups.
For the full year, production was 2,539mboe/d, 3.0% higher than 2017. Underlying production for the full year was 8.2% higher than 2017 due to major project ramp-ups and improved plant reliability.
Key events
On 31 October, BP completed the acquisition of BHP’s US unconventional oil and gas assets.
On 23 November, BP announced the start-up of the Clair Ridge project. This was the sixth major project to start up in 2018 (BP operator 45.1%, Shell 28%, Chevron 19.4% and ConocoPhillips 7.5%).
On 14 December, BP announced the sanction for two new gas developments offshore Trinidad, Cassia Compression and Matapal.
On 17 December, Sonangol and BP signed an agreement to progress to final investment decision the development of the Platina field in deepwater Block 18, offshore Angola. Sonangol also agreed to extend the production licence for the BP-operated Greater Plutonio project on Block 18 to 2032, subject to government approval, and for Sonangol to assume an equity interest in the block (BP operator 50% and Sonangol Sinopec International Limited 50%).
On 21 December, BP announced final investment decision, subject to regulatory approvals, for Phase 1 of the Greater Tortue Ahmeyim LNG development in Mauritania and Senegal (BP operator 62% in Mauritania and 60% in Senegal).
On 8 January, BP announced sanction of Atlantis Phase 3 development (BP operator 56% and BHP 44%) in US Gulf of Mexico. In addition, two oil discoveries were also announced: Manuel (BP operator 50% and Shell 50%) and Nearly Headless Nick (LLOG operator 26.84%, BP 20.25% and other partners) in the Gulf of Mexico.
On 14 January, BP and Eni signed a heads of agreement with the Ministry of Oil and Gas of the Sultanate of Oman to work jointly towards the award of a new exploration and production-sharing agreement (EPSA) for Block 77 in central Oman (Eni operator 50% and BP 50%).
Outlook
We expect full-year 2019 underlying production to be higher than 2018 due to major projects. The actual reported outcome will depend on the exact timing of project start-ups, acquisition and divestment activities, OPEC quotas and entitlement impacts in our production-sharing agreements*.
We expect first-quarter 2019 reported production to be flat with fourth-quarter 2018 with divestments of assets in the North Sea and Alaska and turnaround and maintenance activities mainly in the high margin Gulf of Mexico region, offset by major project start-ups and the benefit of the BHP assets acquired by BPX Energy.

The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 39.


8


Upstream (continued)
 
 
Fourth

Fourth

 




 
 
quarter

quarter

 
Year

Year

$ million
 
2018

2017

 
2018

2017

Underlying RC profit before interest and tax
 
 
 
 
 
 
US
 
1,400

629

 
3,693

1,238

Non-US
 
2,486

1,594

 
10,857

4,627

 
 
3,886

2,223

 
14,550

5,865

Non-operating items
 
 
 
 
 
 
US(a)(b)
 
(267
)
(187
)
 
(590
)
(330
)
Non-US(c)
 
403

43

 
407

(341
)
 
 
136

(144
)
 
(183
)
(671
)
Fair value accounting effects
 
 
 
 
 
 
US
 
127

8

 
(35
)
192

Non-US
 
19

(159
)
 
(4
)
(165
)
 
 
146

(151
)
 
(39
)
27

RC profit before interest and tax
 
 
 
 
 
 
US
 
1,260

450

 
3,068

1,100

Non-US
 
2,908

1,478

 
11,260

4,121

 
 
4,168

1,928

 
14,328

5,221

Exploration expense
 
 
 
 
 
 
US(b)
 
84

27

 
509

282

Non-US(d)
 
373

494

 
936

1,798

 
 
457

521

 
1,445

2,080

Of which: Exploration expenditure written off(b)(d)
 
351

372

 
1,085

1,603

Production (net of royalties)(e)
 
 
 
 
 
 
Liquids* (mb/d)
 
 
 
 
 
 
US
 
495

430

 
445

426

Europe
 
154

117

 
142

119

Rest of World
 
673

796

 
681

811

 
 
1,321

1,344

 
1,268

1,356

Of which equity-accounted entities
 
121

209

 
129

207

Natural gas (mmcf/d)
 
 
 
 
 
 
US
 
2,255

1,759

 
1,900

1,659

Europe
 
215

186

 
211

235

Rest of World
 
5,104

5,231

 
5,263

4,543

 
 
7,574

7,176

 
7,374

6,436

Of which equity-accounted entities
 
454

534

 
474

547

Total hydrocarbons* (mboe/d)
 
 
 
 
 
 
US
 
884

734

 
772

712

Europe
 
191

150

 
179

160

Rest of World
 
1,553

1,698

 
1,589

1,594

 
 
2,627

2,581

 
2,539

2,466

Of which equity-accounted entities
 
200

301

 
211

302

Average realizations*(f)
 
 
 
 
 
 
Total liquids(g) ($/bbl)
 
61.80

56.16

 
64.98

49.92

Natural gas ($/mcf)
 
4.33

3.23

 
3.92

3.19

Total hydrocarbons ($/boe)
 
42.98

37.48

 
43.47

35.38

(a)
Fourth quarter and full year 2017 include an impairment charge relating to BPX Energy (previously known as the US Lower 48 business), partially offset by gains associated with asset divestments.
(b)
Full year 2018 and full year 2017 include the write-off of $124 million and $145 million respectively 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)
Fourth quarter and full year 2018 include an impairment reversal for assets in the North Sea and Angola. Fourth quarter and full year 2017 include BP's share of an impairment reversal recognized by the Angola LNG equity-accounted entity, partially offset by other items. In addition, full year 2017 includes an impairment charge arising following the announcement of the agreement to sell the Forties Pipeline System business to INEOS.
(d)
Full year 2017 predominantly relates to the write-off of exploration well and lease costs in Angola. Full year 2017 also includes the write-off of exploration well costs in Egypt.
(e)
Includes BP’s share of production of equity-accounted entities in the Upstream segment.
(f)
Realizations are based on sales by consolidated subsidiaries only - this excludes equity-accounted entities.
(g)
Includes condensate, natural gas liquids and bitumen.

Because of rounding, some totals may not agree exactly with the sum of their component parts.

9


Downstream
 
 
Fourth

Fourth

 




 
 
quarter

quarter

 
Year

Year

$ million
 
2018

2017

 
2018

2017

Profit (loss) before interest and tax
 
(332
)
2,492

 
6,078

7,979

Inventory holding (gains) losses*
 
2,470

(719
)
 
862

(758
)
RC profit before interest and tax
 
2,138

1,773

 
6,940

7,221

Net (favourable) adverse impact of non-operating items* and fair value accounting effects*
 
31

(299
)
 
621

(254
)
Underlying RC profit before interest and tax*(a)
 
2,169

1,474

 
7,561

6,967

(a)
See page 11 for a reconciliation to segment RC profit before interest and tax by region and by business.

Financial results
The replacement cost profit before interest and tax for the fourth quarter and full year was $2,138 million and $6,940 million respectively, compared with $1,773 million and $7,221 million for the same periods in 2017.
The fourth quarter and full year include a net non-operating charge of $401 million and $716 million respectively, compared with a gain of $382 million and $389 million for the same periods in 2017. Fair value accounting effects had a favourable impact of $370 million in the fourth quarter and $95 million for the full year, compared with an adverse impact of $83 million and $135 million for the same periods in 2017.
After adjusting for non-operating items and fair value accounting effects, the underlying replacement cost profit before interest and tax for the fourth quarter and full year was $2,169 million and $7,561 million respectively, compared with $1,474 million and $6,967 million for the same periods in 2017.
Replacement cost profit before interest and tax for the fuels, lubricants and petrochemicals businesses is set out on page 11.
Fuels
The fuels business reported an underlying replacement cost profit before interest and tax of $1,624 million for the fourth quarter and $5,642 million for the full year, compared with $976 million and $4,872 million for the same periods in 2017.
Strong fuels marketing earnings growth for the quarter and full year reflects the benefits from our strategic improvement programmes, enabling improved margin capture and supply chain optimization. Our convenience partnership model is now in around 1,400 sites across our network, with more than 460 sites in Germany with our REWE to Go offer. We also continue to grow in Mexico, with 440 BP-branded retail sites at year end, and in the quarter we opened our first retail sites in Indonesia.
The higher refining result for the full year reflects increased commercial optimization and strong operations, which in North America allowed us to capture the benefits from higher North American heavy crude oil discounts, net of pipeline capacity apportionment impacts. These factors were partially offset by lower industry refining margins and a higher level of turnaround activity.
In addition, the contribution from supply and trading for the full year was lower than last year, although the result for the quarter was slightly higher than in the previous year.
Lubricants
The lubricants business reported an underlying replacement cost profit before interest and tax of $311 million for the fourth quarter and $1,292 million for the full year, compared with $375 million and $1,479 million for the same periods in 2017. The result for the quarter and full year reflects continued premium brand growth, more than offset by the adverse lag impact of increasing base oil prices, as well as adverse foreign exchange rate movements. Volumes in the fourth quarter were lower due to a planned systems implementation.
Petrochemicals
The petrochemicals business reported an underlying replacement cost profit before interest and tax of $234 million for the fourth quarter and $627 million for the full year, compared with $123 million and $616 million for the same periods in 2017. The result for the quarter and full year reflects an improved margin environment, increased margin optimization and continued strong cost management. The result for the full year was higher than last year despite the divestment of our interest in the SECCO joint venture in 2017 and a higher level of turnaround activity in 2018.
In the quarter we signed a heads of agreement with SOCAR Turkey to evaluate the creation of a joint venture to build and operate the largest integrated PTA, PX and aromatics complex in the western hemisphere.
Outlook
Looking to the first quarter of 2019, we expect significantly lower industry refining margins and narrower North American heavy crude oil discounts.


The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 39.

10


Downstream (continued)
 
 
Fourth

Fourth

 




 
 
quarter

quarter

 
Year

Year

$ million
 
2018

2017

 
2018

2017

Underlying RC profit before interest and tax - by region
 
 
 
 
 
 
US
 
995

501

 
2,818

1,978

Non-US
 
1,174

973

 
4,743

4,989

 
 
2,169

1,474

 
7,561

6,967

Non-operating items
 
 
 
 
 
 
US
 
(109
)
(25
)
 
(295
)
(48
)
Non-US(a)
 
(292
)
407

 
(421
)
437

 
 
(401
)
382

 
(716
)
389

Fair value accounting effects(b)
 
 
 
 
 
 
US
 
184

3

 
(155
)
(29
)
Non-US
 
186

(86
)
 
250

(106
)
 
 
370

(83
)
 
95

(135
)
RC profit before interest and tax
 
 
 
 
 
 
US
 
1,070

479

 
2,368

1,901

Non-US
 
1,068

1,294

 
4,572

5,320

 
 
2,138

1,773

 
6,940

7,221

Underlying RC profit before interest and tax - by business(c)(d)
 
 
 
 
 
 
Fuels
 
1,624

976

 
5,642

4,872

Lubricants
 
311

375

 
1,292

1,479

Petrochemicals
 
234

123

 
627

616

 
 
2,169

1,474

 
7,561

6,967

Non-operating items and fair value accounting effects(b)
 
 
 
 
 
 
Fuels
 
173

(202
)
 
(381
)
(193
)
Lubricants
 
(198
)
(14
)
 
(227
)
(22
)
Petrochemicals
 
(6
)
515

 
(13
)
469

 
 
(31
)
299

 
(621
)
254

RC profit before interest and tax(c)(d)
 
 
 
 
 
 
Fuels
 
1,797

774

 
5,261

4,679

Lubricants
 
113

361

 
1,065

1,457

Petrochemicals
 
228

638

 
614

1,085

 
 
2,138

1,773

 
6,940

7,221

 
 
 
 
 
 
 
BP average refining marker margin (RMM)* ($/bbl)
 
11.0

14.4

 
13.1

14.1

 
 
 
 
 
 
 
Refinery throughputs (mb/d)
 
 
 
 
 
 
US
 
691

714

 
703

713

Europe
 
735

741

 
781

773

Rest of World
 
240

243

 
241

216

 
 
1,666

1,698

 
1,725

1,702

Refining availability* (%)
 
95.2

96.1

 
94.9

95.3

 
 
 
 
 
 
 
Marketing sales of refined products (mb/d)
 
 
 
 
 
 
US
 
1,138

1,127

 
1,141

1,151

Europe
 
1,053

1,132

 
1,100

1,140

Rest of World
 
526

542

 
495

508

 
 
2,717

2,801

 
2,736

2,799

Trading/supply sales of refined products
 
3,199

3,549

 
3,194

3,149

Total sales volumes of refined products
 
5,916

6,350

 
5,930

5,948

 
 
 
 
 
 
 
Petrochemicals production (kte)
 
 
 
 
 
 
US
 
672

641

 
2,235

2,428

Europe
 
1,037

1,559

 
4,468

5,462

Rest of World
 
1,259

1,306

 
5,154

7,405

 
 
2,968

3,506

 
11,857

15,295

(a)
Fourth quarter and full year 2017 gain primarily reflects the disposal of our shareholding in the SECCO joint venture.
(b)
For Downstream, fair value accounting effects arise solely in the fuels business. See page 31 for further information.
(c)
Segment-level overhead expenses are included in the fuels business result.
(d)
Results from petrochemicals at our Gelsenkirchen and Mülheim sites in Germany are reported in the fuels business.


11


Rosneft
 
 
Fourth

Fourth

 




 
 
quarter

quarter

 
Year

Year

$ million
 
2018(a)

2017

 
2018(a)

2017

Profit before interest and tax(b)(c)
 
308

418

 
2,288

923

Inventory holding (gains) losses*
 
92

(97
)
 
(67
)
(87
)
RC profit before interest and tax
 
400

321

 
2,221

836

Net charge (credit) for non-operating items*
 
31


 
95


Underlying RC profit before interest and tax*
 
431

321

 
2,316

836

Financial results
Replacement cost (RC) profit before interest and tax for the fourth quarter and full year was $400 million and $2,221 million respectively, compared with $321 million and $836 million for the same periods in 2017.
After adjusting for non-operating items, the underlying RC profit before interest and tax for the fourth quarter and full year was $431 million and $2,316 million respectively. There were no non-operating items in the fourth quarter or full year of 2017.
Compared with the same periods in 2017, the results for the fourth quarter and full year were primarily affected by higher oil prices and favourable foreign exchange, partially offset by adverse duty lag effects.
In September the extraordinary general meeting adopted a resolution to pay interim dividends for the first half of 2018 of 14.58 Russian roubles per ordinary share. In October BP received a dividend of $420 million, after the deduction of withholding tax.
Key events
In September Rosneft and BP agreed to jointly explore two additional oil and gas licence areas located in the Sakha (Yakutia) republic of the Russian Federation. In December the first closing of the deal was completed with LLC Yermakneftegaz, a 51:49 joint venture between Rosneft and BP, acquiring a subsidiary company from Rosneft. The transfer of licences to the subsidiary, subject to external approvals, is expected in 2019.
In December the re-issue was completed of the Kharampurskoe and Festivalnoe subsoil-use licences to LLC Kharampurneftegaz, in which Rosneft and BP own 51% and 49% interests respectively.
BP’s interests in LLC Yermakneftegaz and LLC Kharampurneftegaz are reported through the Upstream segment.


 
 
Fourth

Fourth

 




 
 
quarter

quarter

 
Year

Year

 
 
2018(a)

2017

 
2018(a)

2017

Production (net of royalties) (BP share)
 
 
 
 
 
 
Liquids* (mb/d)
 
946

899

 
923

904

Natural gas (mmcf/d)
 
1,312

1,333

 
1,285

1,308

Total hydrocarbons* (mboe/d)
 
1,173

1,129

 
1,144

1,129

(a)
The operational and financial information of the Rosneft segment for the fourth quarter and full year is based on preliminary operational and financial results of Rosneft for the full year ended 31 December 2018. 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 increase the segment's reported profit before interest and tax, as shown in the table above, compared with the amounts reported in Rosneft’s IFRS financial statements.
(c)
BP’s adjusted share of Rosneft’s earnings after Rosneft's own finance costs, taxation and non-controlling interests is included in the BP group income statement within profit before interest and taxation. For each year-to-date period it is calculated by translating the amounts reported in Russian roubles into US dollars using the average exchange rate for the year to date.


12


Other businesses and corporate
 
 
Fourth

Fourth

 




 
 
quarter

quarter

 
Year

Year

$ million
 
2018

2017

 
2018

2017

Profit (loss) before interest and tax
 
 
 
 
 
 
Gulf of Mexico oil spill - business economic loss claims
 
(26
)
(2,110
)
 
(344
)
(2,370
)
Gulf of Mexico oil spill - other
 
(41
)
(111
)
 
(370
)
(317
)
Other
 
(1,043
)
(612
)
 
(2,807
)
(1,758
)
Profit (loss) before interest and tax
 
(1,110
)
(2,833
)
 
(3,521
)
(4,445
)
Inventory holding (gains) losses*
 


 


RC profit (loss) before interest and tax
 
(1,110
)
(2,833
)
 
(3,521
)
(4,445
)
Net charge (credit) for non-operating items*
 
 
 
 
 
 
Gulf of Mexico oil spill - business economic loss claims
 
26

2,110

 
344

2,370

Gulf of Mexico oil spill - other
 
41

111

 
370

317

Other
 
699

218

 
1,249

160

Net charge (credit) for non-operating items
 
766

2,439

 
1,963

2,847

Underlying RC profit (loss) before interest and tax*
 
(344
)
(394
)
 
(1,558
)
(1,598
)
Underlying RC profit (loss) before interest and tax
 
 
 
 
 
 
US
 
(179
)
(29
)
 
(615
)
(475
)
Non-US
 
(165
)
(365
)
 
(943
)
(1,123
)
 
 
(344
)
(394
)
 
(1,558
)
(1,598
)
Non-operating items
 
 
 
 
 
 
US
 
(654
)
(2,381
)
 
(1,738
)
(2,861
)
Non-US
 
(112
)
(58
)
 
(225
)
14

 
 
(766
)
(2,439
)
 
(1,963
)
(2,847
)
RC profit (loss) before interest and tax
 
 
 
 
 
 
US
 
(833
)
(2,410
)
 
(2,353
)
(3,336
)
Non-US
 
(277
)
(423
)
 
(1,168
)
(1,109
)
 
 
(1,110
)
(2,833
)
 
(3,521
)
(4,445
)

Other businesses and corporate comprises our alternative energy business, shipping, treasury, corporate activities including centralized functions, and the costs of the Gulf of Mexico oil spill.
Financial results
The replacement cost loss before interest and tax for the fourth quarter and full year was $1,110 million and $3,521 million respectively, compared with $2,833 million and $4,445 million for the same periods in 2017.
The results included a net non-operating charge of $766 million for the fourth quarter and $1,963 million for the full year, primarily relating to the costs for the Gulf of Mexico oil spill, environmental and other provisions, impairments and restructuring costs, compared with a charge of $2,439 million and $2,847 million for the same periods in 2017. See Note 2 on page 21 for more information on the Gulf of Mexico oil spill.
After adjusting for non-operating items, the underlying replacement cost loss before interest and tax for the fourth quarter and full year was $344 million and $1,558 million respectively, compared with $394 million and $1,598 million for the same periods in 2017.
Alternative Energy
The net ethanol-equivalent production (which includes ethanol and sugar) for the fourth quarter and full year was 144 million litres and 765 million litres respectively, compared with 188 million litres and 776 million litres for the same periods in 2017. In the fourth quarter formal approvals were received for the Opla ethanol logistics JV with Copersucar, which is now established and operating well.
Net wind generation capacity* was 1,001MW at 31 December 2018, compared with 1,432MW at 31 December 2017. BP’s net share of wind generation for the fourth quarter and full year was 933GWh and 3,821GWh respectively, compared with 1,148GWh and 4,004GWh for the same periods in 2017. In 2018 we divested three of our wind facilities in Texas. We intend to focus on optimizing and investing in upgrades to our remaining sites, enabling us to continue to grow a wind energy business that we believe is sustainable for the long term.
In December, BP’s strategic solar partnership with Lightsource BP (BP 43%) reached its first anniversary. In that time, Lightsource BP has doubled its global footprint, with a presence now in 10 countries. Most recently the company announced it would enter Brazil, leveraging BP’s relationships and existing operations to fund, develop and operate solar projects locally. Also during the fourth quarter, Lightsource BP was awarded a 105MW power purchase agreement (PPA) in New South Wales, Australia and PPAs totalling 25MW in California and New Mexico in the US. In the UK, Lightsource BP also announced that it will power AB InBev’s manufacturing plants through an innovative 100MW PPA.
Outlook
In 2019, Other businesses and corporate average quarterly charges, excluding non-operating items, are expected to be around $350 million although this will fluctuate quarter to quarter.
The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 36.



13


Financial statements
Group income statement
 
 
Fourth

Fourth

 




 
 
quarter

quarter

 
Year

Year

$ million
 
2018

2017

 
2018

2017

 
 
 
 
 
 
 
Sales and other operating revenues (Note 5)
 
75,677

67,816

 
298,756

240,208

Earnings from joint ventures – after interest and tax
 
236

581

 
897

1,177

Earnings from associates – after interest and tax
 
425

526

 
2,856

1,330

Interest and other income
 
295

223

 
773

657

Gains on sale of businesses and fixed assets
 
252

876

 
456

1,210

Total revenues and other income
 
76,885

70,022

 
303,738

244,582

Purchases
 
59,019

51,745

 
229,878

179,716

Production and manufacturing expenses(a)
 
6,173

7,759

 
23,005

24,229

Production and similar taxes (Note 7)
 
186

511

 
1,536

1,775

Depreciation, depletion and amortization (Note 6)
 
3,987

4,045

 
15,457

15,584

Impairment and losses on sale of businesses and fixed assets
 
244

604

 
860

1,216

Exploration expense
 
457

521

 
1,445

2,080

Distribution and administration expenses
 
3,655

2,981

 
12,179

10,508

Profit (loss) before interest and taxation
 
3,164

1,856

 
19,378

9,474

Finance costs(a)
 
742

616

 
2,528

2,074

Net finance expense relating to pensions and other post-retirement benefits
 
34

58

 
127

220

Profit (loss) before taxation
 
2,388

1,182

 
16,723

7,180

Taxation(a)
 
1,617

1,119

 
7,145

3,712

Profit (loss) for the period
 
771

63

 
9,578

3,468

Attributable to
 
 
 
 
 
 
BP shareholders
 
766

27

 
9,383

3,389

Non-controlling interests
 
5

36

 
195

79

 
 
771

63

 
9,578

3,468

 
 
 
 
 
 
 
Earnings per share (Note 8)
 
 
 
 
 
 
Profit (loss) for the period attributable to BP shareholders
 
 
 
 
 
 
Per ordinary share (cents)
 
 
 
 
 
 
Basic
 
3.83

0.14

 
46.98

17.20

Diluted
 
3.80

0.14

 
46.67

17.10

Per ADS (dollars)
 
 
 
 
 
 
Basic
 
0.23

0.01

 
2.82

1.03

Diluted
 
0.23

0.01

 
2.80

1.03

(a)
See Note 2 for information on the impact of the Gulf of Mexico oil spill on these income statement line items.


14


Condensed group statement of comprehensive income
 
 
Fourth

Fourth

 




 
 
quarter

quarter

 
Year

Year

$ million
 
2018

2017

 
2018

2017

 
 
 
 
 
 
 
Profit (loss) for the period
 
771

63

 
9,578

3,468

Other comprehensive income
 
 
 
 
 
 
Items that may be reclassified subsequently to profit or loss
 
 
 
 
 
 
Currency translation differences
 
(937
)
264

 
(3,771
)
1,986

Exchange (gains) losses on translation of foreign operations reclassified to gain or loss on sale of businesses and fixed assets
 

(138
)
 

(120
)
Available-for-sale investments
 

11

 

14

Cash flow hedges and costs of hedging
 
(68
)
50

 
(192
)
425

Share of items relating to equity-accounted entities, net of tax
 
200

133

 
417

564

Income tax relating to items that may be reclassified
 
33

(16
)
 
4

(196
)
 
 
(772
)
304

 
(3,542
)
2,673

Items that will not be reclassified to profit or loss
 
 
 
 
 
 
Remeasurements of the net pension and other post-retirement benefit liability or asset
 
(651
)
1,599

 
2,317

3,646

Cash flow hedges that will subsequently be transferred to the balance sheet
 
(8
)

 
(37
)

Income tax relating to items that will not be reclassified
 
223

(604
)
 
(718
)
(1,303
)
 
 
(436
)
995

 
1,562

2,343

Other comprehensive income
 
(1,208
)
1,299

 
(1,980
)
5,016

Total comprehensive income
 
(437
)
1,362

 
7,598

8,484

Attributable to
 
 
 
 
 
 
BP shareholders
 
(444
)
1,312

 
7,444

8,353

Non-controlling interests
 
7

50

 
154

131

 
 
(437
)
1,362

 
7,598

8,484


15


Condensed group statement of changes in equity
 
 
BP shareholders’

Non-controlling

Total

$ million
 
equity

interests

equity

At 31 December 2017
 
98,491

1,913

100,404

Adjustment on adoption of IFRS 9, net of tax(a)
 
(180
)

(180
)
At 1 January 2018
 
98,311

1,913

100,224

 
 
 
 
 
Total comprehensive income
 
7,444

154

7,598

Dividends
 
(6,699
)
(170
)
(6,869
)
Cash flow hedges transferred to the balance sheet, net of tax
 
26


26

Repurchase of ordinary share capital
 
(355
)

(355
)
Share-based payments, net of tax
 
703


703

Share of equity-accounted entities’ changes in equity, net of tax
 
14


14

Transactions involving non-controlling interests, net of tax
 

207

207

At 31 December 2018
 
99,444

2,104

101,548

 
 
 
 
 
 
 
BP shareholders’

Non-controlling

Total

$ million
 
equity

interests

equity

 
 
 
 
 
At 1 January 2017
 
95,286

1,557

96,843

 
 
 
 
 
Total comprehensive income
 
8,353

131

8,484

Dividends
 
(6,153
)
(141
)
(6,294
)
Repurchase of ordinary share capital
 
(343
)

(343
)
Share-based payments, net of tax
 
687


687

Share of equity-accounted entities' changes in equity, net of tax
 
215


215

Transactions involving non-controlling interests, net of tax
 
446

366

812

At 31 December 2017
 
98,491

1,913

100,404

(a)
See Note 1 for further information.


16


Group balance sheet
 
 
31 December

31 December

$ million
 
2018

2017

Non-current assets
 
 
 
Property, plant and equipment
 
135,261

129,471

Goodwill
 
12,204

11,551

Intangible assets
 
17,284

18,355

Investments in joint ventures
 
8,647

7,994

Investments in associates
 
17,673

16,991

Other investments
 
1,341

1,245

Fixed assets
 
192,410

185,607

Loans
 
637

646

Trade and other receivables
 
1,834

1,434

Derivative financial instruments
 
5,145

4,110

Prepayments
 
1,179

1,112

Deferred tax assets
 
3,706

4,469

Defined benefit pension plan surpluses
 
5,955

4,169

 
 
210,866

201,547

Current assets
 
 
 
Loans
 
326

190

Inventories
 
17,988

19,011

Trade and other receivables
 
24,478

24,849

Derivative financial instruments
 
3,846

3,032

Prepayments
 
963

1,414

Current tax receivable
 
1,019

761

Other investments
 
222

125

Cash and cash equivalents
 
22,468

25,586

 
 
71,310

74,968

Total assets
 
282,176

276,515

Current liabilities
 
 
 
Trade and other payables
 
46,265

44,209

Derivative financial instruments
 
3,308

2,808

Accruals
 
4,626

4,960

Finance debt
 
9,373

7,739

Current tax payable
 
2,101

1,686

Provisions
 
2,564

3,324

 
 
68,237

64,726

Non-current liabilities
 
 
 
Other payables
 
13,830

13,889

Derivative financial instruments
 
5,625

3,761

Accruals
 
575

505

Finance debt
 
56,426

55,491

Deferred tax liabilities
 
9,812

7,982

Provisions
 
17,732

20,620

Defined benefit pension plan and other post-retirement benefit plan deficits
 
8,391

9,137

 
 
112,391

111,385

Total liabilities
 
180,628

176,111

Net assets
 
101,548

100,404

Equity
 
 
 
BP shareholders’ equity
 
99,444

98,491

Non-controlling interests
 
2,104

1,913

Total equity
 
101,548

100,404



17


Condensed group cash flow statement
 
 
Fourth

Fourth

 




 
 
quarter

quarter

 
Year

Year

$ million
 
2018

2017

 
2018

2017

Operating activities
 
 
 
 
 
 
Profit (loss) before taxation
 
2,388

1,182

 
16,723

7,180

Adjustments to reconcile profit (loss) before taxation to net cash provided by operating activities
 
 
 
 
 
 
Depreciation, depletion and amortization and exploration expenditure written off
 
4,338

4,417

 
16,542

17,187

Impairment and (gain) loss on sale of businesses and fixed assets
 
(8
)
(272
)
 
404

6

Earnings from equity-accounted entities, less dividends received
 
(30
)
(820
)
 
(2,218
)
(1,254
)
Net charge for interest and other finance expense, less net interest paid
 
222

294

 
607

793

Share-based payments
 
126

166

 
690

661

Net operating charge for pensions and other post-retirement benefits, less contributions and benefit payments for unfunded plans
 
(60
)
(215
)
 
(386
)
(394
)
Net charge for provisions, less payments
 
617

2,244

 
986

2,106

Movements in inventories and other current and non-current assets and liabilities
 
778

(60
)
 
(4,763
)
(3,352
)
Income taxes paid
 
(1,542
)
(1,033
)
 
(5,712
)
(4,002
)
Net cash provided by operating activities
 
6,829

5,903

 
22,873

18,931

Investing activities
 
 
 
 
 
 
Expenditure on property, plant and equipment, intangible and other assets
 
(5,962
)
(4,422
)
 
(16,707
)
(16,562
)
Acquisitions, net of cash acquired
 
(6,379
)
(16
)
 
(6,986
)
(327
)
Investment in joint ventures
 
(290
)
(15
)
 
(382
)
(50
)
Investment in associates
 
(265