BP p.l.c. Group results
First quarter 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/7975D_-2017-5-1.pdf
|
Highlights
|
Robust earnings and cash flow, new projects on track.
|
|||
|
● Underlying
replacement cost profit* for the first quarter was $1.5
billion.
● First
quarter operating cash flow, excluding payments related to the Gulf
of Mexico oil spill*, of $4.4 billion. Including these payments,
operating cash flow* was $2.1 billion.
● Dividend
unchanged at 10 cents per share.
● Reported
oil and gas production was 3.5mmboe/d in the first quarter, 5%
higher than same period in 2016.
● New
Upstream major projects* on track: Trinidad onshore compression
project started up, another in ramp-up, and two more in
commissioning.
● Downstream
marketing growth and strong operational performance.
● $1.7
billion divestment of BP’s interest in SECCO petrochemical
joint venture, subject to regulatory approvals.
|
|
||
|
|
|
Financial summary
First quarter 2017
|
|
|
See
chart on PDF
|
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
$ million
|
|
2017
|
2016
|
2016
|
Profit (loss) for the period(a)
|
|
1,449
|
497
|
(583)
|
Inventory holding (gains) losses*, net of tax
|
|
(37)
|
(425)
|
98
|
Replacement cost profit (loss)*
|
|
1,412
|
72
|
(485)
|
Net (favourable) unfavourable impact of non-operating
items*
|
|
|
|
|
and fair value accounting effects*, net of
tax
|
|
98
|
328
|
1,017
|
Underlying replacement cost profit
|
|
1,510
|
400
|
532
|
Replacement cost profit (loss)
|
|
|
|
|
per ordinary share (cents)*
|
|
7.23
|
0.38
|
(2.63)
|
per ADS (dollars)
|
|
0.43
|
0.02
|
(0.16)
|
Underlying replacement cost profit
|
|
|
|
|
per ordinary share (cents)*
|
|
7.74
|
2.11
|
2.88
|
per ADS (dollars)
|
|
0.46
|
0.13
|
0.17
|
(a)
|
Profit
attributable to BP shareholders.
|
“BP focused on disciplined delivery.”
|
|
Bob Dudley – Group chief
executive
“Our year has started well. BP is focused on the
disciplined delivery of our plans. First quarter earnings and cash
flow were robust. We have shown continued operational momentum - it
was another strong quarter for the Downstream and the first of our
seven new Upstream major projects has started up, with a further
three near completion. We expect these to drive a material
improvement in operating cash flow from the second
half.”
|
|
|
|
|
|
* For items marked with an asterisk throughout this document,
definitions are provided in the Glossary on page 28.
|
|
||
The commentary above and following should be read in conjunction
with the cautionary statement on page 32.
|
|
|
Group headlines
|
|
Earnings
BP’s
profit for the first quarter was $1,449 million, compared with a
loss of $583 million for the same period in 2016. The first-quarter
replacement cost (RC) profit was $1,412 million, compared with
a loss of $485 million for the same period in 2016. After adjusting
for a net charge for non-operating items of $305 million and net
favourable fair value accounting effects of $207 million (both on a
post-tax basis), underlying RC profit for the first quarter was
$1,510 million, compared with $532 million for the same
period in 2016. RC profit or loss for the group and underlying RC
profit or loss are non-GAAP measures and further information is
provided on page 3.
Non-operating items
Non-operating
items amounted to a charge of $553 million pre-tax and $305 million
post-tax for the quarter and relate mainly to an impairment charge
arising due to the expected divestment of certain Upstream
assets.
The
Gulf of Mexico oil spill pre-tax charge, which predominantly
relates to finance costs for the unwinding of discounting effects,
was $161 million for the quarter.
Effective tax rate
The
effective tax rate (ETR) on RC profit or loss* for the first
quarter was 29%, compared with 37% for the same period in 2016.
Adjusting for non-operating items and fair value accounting
effects, the adjusted ETR* for the first quarter was 33%, compared
with 18% for the same period in 2016. The adjusted ETR for the
first quarter was higher than a year ago mainly due to the impact
of the renewal of our interest in the Abu Dhabi onshore oil
concession. The adjusted ETR for both periods reflects favourable
foreign exchange impacts.
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 23
June 2017. The corresponding amount in sterling will be announced
on 12 June 2017. See page 21 for further
information.
|
Operating cash flow*
Excluding
post-tax amounts related to the Gulf of Mexico oil spill, operating
cash flow* for the first quarter was $4.4 billion, compared
with $3.0 billion for the same period in 2016. Including
amounts relating to the Gulf of Mexico oil spill, operating cash
flow for the first quarter was $2.1 billion, compared with
$1.9 billion for the same period in 2016.
Capital expenditure*
From
this quarter onwards we are reporting organic, inorganic and total
capital expenditure on a cash basis. This aligns with BP's
financial framework and is now consistent with other financial
metrics used when comparing sources and uses of cash.
Organic
capital expenditure* for the first quarter was $3.5 billion,
compared with $4.5 billion for the same period in 2016. We
continue to expect organic capital expenditure to be in the range
of $15-17 billion for 2017.
Inorganic
capital expenditure* for the first quarter was $0.5 billion. There
was no inorganic capital expenditure for the same period in
2016.
See page 23 for further information.
Divestment proceeds
Divestment
proceeds were $0.3 billion for the first quarter, compared with
$1.1 billion for the same period in 2016. We expect
divestments to be in the range of $4.5-5.5 billion for
2017.
Net debt*
Net
debt at 31 March 2017 was $38.6 billion, compared with
$30.0 billion a year ago. The net debt ratio* at 31 March 2017
was 28.0%, compared with 23.6% a year ago. Net debt and the net
debt ratio are non-GAAP measures. See page 22 for more
information.
|
|
Analysis of underlying RC profit before interest and
tax
|
||||
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
$ million
|
|
2017
|
2016
|
2016
|
Underlying RC profit before interest and tax*
|
|
|
|
|
Upstream
|
|
1,370
|
400
|
(747)
|
Downstream
|
|
1,742
|
877
|
1,813
|
Rosneft
|
|
99
|
135
|
66
|
Other
businesses and corporate
|
|
(440)
|
(424)
|
(178)
|
Consolidation
adjustment – UPII*
|
|
(68)
|
(132)
|
40
|
Underlying
RC profit before interest and tax
|
|
2,703
|
856
|
994
|
Finance
costs and net finance expense relating to pensions and
other
|
|
|
|
|
post-retirement
benefits
|
|
(387)
|
(359)
|
(317)
|
Taxation
on an underlying RC basis
|
|
(763)
|
(51)
|
(120)
|
Non-controlling
interests
|
|
(43)
|
(46)
|
(25)
|
Underlying
RC profit attributable to BP shareholders
|
|
1,510
|
400
|
532
|
Analysis of RC profit (loss) before interest and tax
and reconciliation
to
|
||||
profit (loss) for the period
|
||||
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
$ million
|
|
2017
|
2016
|
2016
|
RC profit (loss) before interest and tax*
|
|
|
|
|
Upstream
|
|
1,256
|
692
|
(1,205)
|
Downstream
|
|
1,706
|
899
|
1,880
|
Rosneft
|
|
99
|
158
|
66
|
Other
businesses and corporate(a)
|
|
(431)
|
(1,117)
|
(1,074)
|
Consolidation
adjustment – UPII
|
|
(68)
|
(132)
|
40
|
RC
profit (loss) before interest and tax
|
|
2,562
|
500
|
(293)
|
Finance
costs and net finance expense relating to pensions and
other
|
|
|
|
|
post-retirement
benefits
|
|
(513)
|
(484)
|
(440)
|
Taxation
on a RC basis
|
|
(594)
|
102
|
273
|
Non-controlling
interests
|
|
(43)
|
(46)
|
(25)
|
RC
profit (loss) attributable to BP shareholders
|
|
1,412
|
72
|
(485)
|
Inventory
holding gains (losses)
|
|
66
|
601
|
(132)
|
Taxation
(charge) credit on inventory holding gains and losses
|
|
(29)
|
(176)
|
34
|
Profit
(loss) for the period attributable to BP shareholders
|
|
1,449
|
497
|
(583)
|
(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
BP’s Upstream major project programme is on track to provide
800,000boe/d of new production by 2020. Projects now under
construction are on average ahead of schedule and 15% below
budget.
The Trinidad onshore compression project, the first of seven major
projects scheduled to start up in 2017, began operation in April.
The Taurus and Libra development of the West Nile Delta project in
Egypt is ramping up and Quad 204 in the UK and Juniper in Trinidad
& Tobago are also nearing completion.
A third gas discovery in the North Damietta Offshore Concession in
the East Nile Delta in Egypt was announced in the quarter and,
following completion of BP’s entry into Mauritania and
Senegal, exploration drilling in Senegal has begun.
Downstream
BP’s marketing businesses continue to grow, with retail
volumes increasing year-on-year and more than 30 new convenience
partnership sites added in the quarter. BP opened its first retail
fuels site in Mexico and has plans to grow the network to around
1,500 sites in the next five years. An agreement has also been
signed to form a retail joint venture in Indonesia.
Manufacturing operations remained strong with Solomon refining
availability of 95.2% and the petrochemicals business completed the
upgrade of the Cooper River PTA plant in the US to the latest
generation of BP’s industry-leading technology.
|
Continuing operational reliability supported robust
operating cash
flow, excluding Gulf of Mexico
oil spill payments*, in the quarter of $4.4 billion. Rising
production from new Upstream projects is expected to drive a
material improvement in operating cash flow* from the second half
of 2017.
BP intends to maintain annual organic capital
expenditure* firmly within the
range of $15-17 billion. Organic capital expenditure in the first quarter
was $3.5 billion.
BP expects $4.5-5.5 billion of divestments in 2017, with proceeds
weighted towards the second half of the year. In 2017 to date, BP
has reached two agreements to divest mature UK North Sea assets and
recently announced the intention to divest its interest in the
SECCO petrochemical joint venture in China. Divestment proceeds
received in the first quarter were
$0.3 billion.
Payments related to the Gulf of
Mexico oil spill are expected to total $4.5-5.5 billion in 2017,
with a larger outflow in the first half, before falling to around
$2 billion in 2018. $2.3 billion in payments were made during the
first quarter.
BP aims to maintain its gearing* within a range of 20-30%. Gearing was 28% at the
end of the first quarter.
BP today announced a dividend of 10 cents per share to be paid in
June.
|
||||||
Operating
metrics
|
|
1Q 2017 (vs. 1Q
2016)
|
|
Financial
metrics
|
|
1Q 2017 (vs. 1Q
2016)
|
|
SafetyTier 1 process safety
events*
|
|
5
(-1)
|
|
Underlying RC profit
|
|
$1.5bn
(+$1.0bn)
|
|
SafetyReported recordable injury
frequency*
|
|
0.22
(-10%)
|
|
Operating cash flow excluding Gulf of Mexico oil spill
payments
|
|
$4.4bn
(+$1.4bn)
|
|
Group production
|
|
3,530mboe/d
(+5%)
|
|
Organic capital expenditure
|
|
$3.5bn
(-$0.9bn)
|
|
Upstream production excluding Rosneft segment
|
|
2,388mboe/d
(+3%)
|
|
Gulf of Mexico oil spill payments
|
|
$2.3bn
(+$1.2bn)
|
|
Upstream unit production costs*
|
|
$7.22/boe
(-13%)
|
|
Divestment proceeds
|
|
$0.3bn
(-$0.9bn)
|
|
BP-operated Upstream operating efficiency*(a)
|
|
–
|
|
Net debt ratio (gearing)
|
|
28.0%
(+4.4)
|
|
Refining availability*
|
|
95.2%
(+0.2)
|
|
Dividend per ordinary share
|
|
10.00 cents
(–)
|
(a)
|
Will be
reported on a one-quarter lagged basis – first reporting for
2017 will be in the second quarter 2017 results
announcement.
|
The commentary above contains forward-looking statements and should
be read in conjunction with the cautionary statement on
page 32.
|
|
|
Upstream
|
||||
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
$ million
|
|
2017
|
2016
|
2016
|
Profit (loss) before interest and tax
|
|
1,250
|
711
|
(1,236)
|
Inventory holding (gains) losses*
|
|
6
|
(19)
|
31
|
RC profit (loss) before interest and tax
|
|
1,256
|
692
|
(1,205)
|
Net (favourable) unfavourable impact of non-operating
items*
|
|
|
|
|
and fair value accounting effects*
|
|
114
|
(292)
|
458
|
Underlying RC profit before interest and tax*(a)
|
|
1,370
|
400
|
(747)
|
(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.
|
|
Upstream (continued)
|
||||
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
$ million
|
|
2017
|
2016
|
2016
|
Underlying RC profit (loss) before interest and tax
|
|
|
|
|
US
|
|
166
|
(147)
|
(667)
|
Non-US
|
|
1,204
|
547
|
(80)
|
|
|
1,370
|
400
|
(747)
|
Non-operating items
|
|
|
|
|
US(a)
|
|
(12)
|
21
|
(163)
|
Non-US(b)(c)
|
|
(348)
|
615
|
(192)
|
|
|
(360)
|
636
|
(355)
|
Fair value accounting effects
|
|
|
|
|
US
|
|
192
|
(274)
|
(33)
|
Non-US
|
|
54
|
(70)
|
(70)
|
|
|
246
|
(344)
|
(103)
|
RC profit (loss) before interest and tax
|
|
|
|
|
US
|
|
346
|
(400)
|
(863)
|
Non-US
|
|
910
|
1,092
|
(342)
|
|
|
1,256
|
692
|
(1,205)
|
Exploration expense
|
|
|
|
|
US(a)
|
|
40
|
511
|
112
|
Non-US(c)(d)
|
|
372
|
(197)
|
142
|
|
|
412
|
314
|
254
|
Of which: Exploration expenditure written off(a)(c)(d)
|
|
261
|
166
|
161
|
Production (net of
royalties)(e)
|
|
|
|
|
Liquids*(f) (mb/d)
|
|
|
|
|
US
|
|
448
|
406
|
403
|
Europe
|
|
115
|
122
|
128
|
Rest of World(f)
|
|
827
|
650
|
768
|
|
|
1,389
|
1,178
|
1,299
|
Natural gas (mmcf/d)
|
|
|
|
|
US
|
|
1,594
|
1,675
|
1,603
|
Europe
|
|
263
|
268
|
289
|
Rest of World
|
|
3,934
|
3,903
|
4,019
|
|
|
5,791
|
5,846
|
5,910
|
Total hydrocarbons*(f) (mboe/d)
|
|
|
|
|
US
|
|
723
|
694
|
679
|
Europe
|
|
160
|
168
|
178
|
Rest of World(f)
|
|
1,505
|
1,323
|
1,461
|
|
|
2,388
|
2,186
|
2,318
|
Average realizations*(g)
|
|
|
|
|
Total liquids(f)(h)
($/bbl)
|
|
49.87
|
43.89
|
29.61
|
Natural gas ($/mcf)
|
|
3.50
|
3.08
|
2.84
|
Total hydrocarbons(f) ($/boe)
|
|
37.19
|
31.40
|
23.81
|
(a)
|
Fourth
quarter 2016 includes the write-off of $147 million in
relation to the value ascribed to 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.
|
(b)
|
First
quarter 2017 relates primarily to an impairment charge arising
following the announcement on 3 April 2017 of the agreement to sell
the Forties Pipeline System business to INEOS. An impairment
reversal of $30 million was also recorded in the quarter in
relation to Block KG D6 in India ($234-million impairment reversal
in fourth quarter 2016).
|
(c)
|
First
quarter 2017 includes a $56-million write-back relating to Block KG
D6 in India ($319-million write-back in fourth quarter 2016). This
has been classified in the ‘other’ category of
non-operating items.
|
(d)
|
First
quarter 2017 includes a $297-million write-off of exploration wells
in Egypt.
|
(e)
|
Includes
BP’s share of production of equity-accounted entities in the
Upstream segment.
|
(f)
|
A minor
adjustment has been made to first quarter 2016. See page 27 for
more information.
|
(g)
|
Realizations
are based on sales by consolidated subsidiaries only – this
excludes equity-accounted entities.
|
(h)
|
Includes
condensate, natural gas liquids and bitumen.
|
|
Downstream
|
||||
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
$ million
|
|
2017
|
2016
|
2016
|
Profit (loss) before interest and tax
|
|
1,804
|
1,457
|
1,783
|
Inventory holding (gains) losses*
|
|
(98)
|
(558)
|
97
|
RC profit before interest and tax
|
|
1,706
|
899
|
1,880
|
Net (favourable) unfavourable impact of non-operating
items*
|
|
|
|
|
and fair value accounting effects*
|
|
36
|
(22)
|
(67)
|
Underlying RC profit before interest and tax*(a)
|
|
1,742
|
877
|
1,813
|
(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.
|
|
Downstream (continued)
|
||||
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
$ million
|
|
2017
|
2016
|
2016
|
Underlying RC profit before interest and tax - by
region
|
|
|
|
|
US
|
|
554
|
(371)
|
540
|
Non-US
|
|
1,188
|
1,248
|
1,273
|
|
|
1,742
|
877
|
1,813
|
Non-operating items
|
|
|
|
|
US
|
|
(12)
|
(122)
|
113
|
Non-US
|
|
(64)
|
45
|
173
|
|
|
(76)
|
(77)
|
286
|
Fair value accounting effects
|
|
|
|
|
US
|
|
(62)
|
22
|
(87)
|
Non-US
|
|
102
|
77
|
(132)
|
|
|
40
|
99
|
(219)
|
RC profit before interest and tax
|
|
|
|
|
US
|
|
480
|
(471)
|
566
|
Non-US
|
|
1,226
|
1,370
|
1,314
|
|
|
1,706
|
899
|
1,880
|
|
|
|
|
|
Underlying RC profit before interest and tax - by
business(a)(b)
|
|
|
|
|
Fuels
|
|
1,200
|
417
|
1,316
|
Lubricants
|
|
393
|
357
|
384
|
Petrochemicals
|
|
149
|
103
|
113
|
|
|
1,742
|
877
|
1,813
|
Non-operating items and fair value accounting
effects(c)
|
|
|
|
|
Fuels
|
|
4
|
103
|
55
|
Lubricants
|
|
(3)
|
(81)
|
(1)
|
Petrochemicals
|
|
(37)
|
–
|
13
|
|
|
(36)
|
22
|
67
|
RC profit (loss) before interest and tax(a)(b)
|
|
|
|
|
Fuels
|
|
1,204
|
520
|
1,371
|
Lubricants
|
|
390
|
276
|
383
|
Petrochemicals
|
|
112
|
103
|
126
|
|
|
1,706
|
899
|
1,880
|
|
|
|
|
|
BP average refining marker margin (RMM)* ($/bbl)
|
|
11.7
|
11.4
|
10.5
|
Refinery throughputs (mb/d)
|
|
|
|
|
US
|
|
694
|
604
|
699
|
Europe
|
|
801
|
806
|
807
|
Rest of World
|
|
181
|
234
|
238
|
|
|
1,676
|
1,644
|
1,744
|
Refining availability* (%)
|
|
95.2
|
94.9
|
95.0
|
|
|
|
|
|
Marketing sales of refined products (mb/d)
|
|
|
|
|
US
|
|
1,116
|
1,146
|
1,071
|
Europe
|
|
1,069
|
1,166
|
1,144
|
Rest of World
|
|
512
|
540
|
488
|
|
|
2,697
|
2,852
|
2,703
|
Trading/supply sales of refined products
|
|
2,959
|
2,836
|
2,810
|
Total sales volumes of refined products
|
|
5,656
|
5,688
|
5,513
|
|
|
|
|
|
Petrochemicals production (kte)
|
|
|
|
|
US
|
|
498
|
546
|
896
|
Europe
|
|
1,253
|
930
|
992
|
Rest of World
|
|
2,073
|
2,071
|
1,909
|
|
|
3,824
|
3,547
|
3,797
|
(a)
|
Segment-level
overhead expenses are included in the fuels business
result.
|
(b)
|
BP’s
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.
|
|
Rosneft
|
||||
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
$ million
|
|
2017(a)
|
2016
|
2016
|
Profit before interest and tax(b)
|
|
73
|
182
|
62
|
Inventory holding (gains) losses*
|
|
26
|
(24)
|
4
|
RC profit before interest and tax
|
|
99
|
158
|
66
|
Net charge (credit) for non-operating items*
|
|
–
|
(23)
|
–
|
Underlying RC profit before interest and tax*
|
|
99
|
135
|
66
|
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
|
|
2017(a)
|
2016
|
2016
|
Production (net of royalties) (BP
share)
|
|
|
|
|
Liquids* (mb/d)
|
|
912
|
919
|
808
|
Natural gas (mmcf/d)
|
|
1,334
|
1,347
|
1,282
|
Total hydrocarbons* (mboe/d)
|
|
1,142
|
1,152
|
1,029
|
(a)
|
The
operational and financial information of the Rosneft segment for
the first quarter is based on preliminary operational and financial
results of Rosneft for the three months ended 31 March 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 first quarter in 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.
|
|
Other businesses and corporate
|
||||
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
$ million
|
|
2017
|
2016
|
2016
|
Profit (loss) before interest and tax
|
|
|
|
|
Gulf of Mexico oil spill
|
|
(35)
|
(674)
|
(794)
|
Other
|
|
(396)
|
(443)
|
(280)
|
Profit (loss) before interest and tax
|
|
(431)
|
(1,117)
|
(1,074)
|
Inventory holding (gains) losses*
|
|
–
|
–
|
–
|
RC profit (loss) before interest and tax
|
|
(431)
|
(1,117)
|
(1,074)
|
Net charge (credit) for non-operating items*
|
|
|
|
|
Gulf of Mexico oil spill
|
|
35
|
674
|
794
|
Other
|
|
(44)
|
19
|
102
|
Net charge (credit) for non-operating items
|
|
(9)
|
693
|
896
|
Underlying RC profit (loss) before interest and tax*
|
|
(440)
|
(424)
|
(178)
|
Underlying RC profit (loss) before interest and tax
|
|
|
|
|
US
|
|
(197)
|
50
|
(110)
|
Non-US
|
|
(243)
|
(474)
|
(68)
|
|
|
(440)
|
(424)
|
(178)
|
Non-operating items
|
|
|
|
|
US
|
|
(38)
|
(672)
|
(848)
|
Non-US
|
|
47
|
(21)
|
(48)
|
|
|
9
|
(693)
|
(896)
|
RC profit (loss) before interest and tax
|
|
|
|
|
US
|
|
(235)
|
(622)
|
(958)
|
Non-US
|
|
(196)
|
(495)
|
(116)
|
|
|
(431)
|
(1,117)
|
(1,074)
|
(a)
|
Capacity
figures include 23MW in the Netherlands managed by our Downstream
segment at 31 March 2017 (23MW at 31 March 2016).
|
|
Financial statements
|
||||
Group income statement
|
||||
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
$ million
|
|
2017
|
2016
|
2016
|
|
|
|
|
|
Sales and other operating revenues (Note 4)
|
|
55,863
|
51,007
|
38,512
|
Earnings from joint ventures – after interest and
tax
|
|
205
|
489
|
29
|
Earnings from associates – after interest and
tax
|
|
151
|
263
|
142
|
Interest and other income
|
|
122
|
114
|
145
|
Gains on sale of businesses and fixed assets
|
|
45
|
248
|
338
|
Total revenues and other income
|
|
56,386
|
52,121
|
39,166
|
Purchases
|
|
41,137
|
37,883
|
26,603
|
Production and manufacturing expenses(a)
|
|
5,255
|
6,595
|
6,519
|
Production and similar taxes (Note 5)
|
|
306
|
199
|
14
|
Depreciation, depletion and amortization
|
|
3,842
|
3,642
|
3,730
|
Impairment and losses on sale of businesses and fixed
assets
|
|
453
|
(305)
|
13
|
Exploration expense
|
|
412
|
314
|
254
|
Distribution and administration expenses
|
|
2,353
|
2,692
|
2,458
|
Profit (loss) before interest and taxation
|
|
2,628
|
1,101
|
(425)
|
Finance costs(a)
|
|
460
|
434
|
394
|
Net finance expense relating to pensions and other
|
|
|
|
|
post-retirement benefits
|
|
53
|
50
|
46
|
Profit (loss) before taxation
|
|
2,115
|
617
|
(865)
|
Taxation(a)
|
|
623
|
74
|
(307)
|
Profit (loss) for the period
|
|
1,492
|
543
|
(558)
|
Attributable to
|
|
|
|
|
BP shareholders
|
|
1,449
|
497
|
(583)
|
Non-controlling interests
|
|
43
|
46
|
25
|
|
|
1,492
|
543
|
(558)
|
|
|
|
|
|
Earnings per share (Note 6)
|
|
|
|
|
Profit (loss) for the period attributable to BP
shareholders
|
|
|
|
|
Per ordinary share (cents)
|
|
|
|
|
Basic
|
|
7.42
|
2.62
|
(3.16)
|
Diluted
|
|
7.38
|
2.60
|
(3.16)
|
Per ADS (dollars)
|
|
|
|
|
Basic
|
|
0.45
|
0.16
|
(0.19)
|
Diluted
|
|
0.44
|
0.16
|
(0.19)
|
(a)
|
See Note 2 for information on the impact of the Gulf of Mexico oil
spill on these income statement line items.
|
|
Group statement of comprehensive income
|
||||
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
$ million
|
|
2017
|
2016
|
2016
|
|
|
|
|
|
Profit (loss) for the period
|
|
1,492
|
543
|
(558)
|
Other comprehensive income
|
|
|
|
|
Items that may be reclassified subsequently to profit or
loss
|
|
|
|
|
Currency translation differences
|
|
1,214
|
(777)
|
874
|
Exchange gains (losses) on translation of foreign
operations
|
|
|
|
|
reclassified to gain or loss on sale of
businesses and fixed assets
|
|
1
|
24
|
6
|
Available-for-sale investments
|
|
2
|
–
|
–
|
Cash flow hedges marked to market
|
|
48
|
(204)
|
(62)
|
Cash flow hedges reclassified to the income
statement
|
|
42
|
86
|
23
|
Cash flow hedges reclassified to the balance
sheet
|
|
39
|
32
|
13
|
Share of items relating to equity-accounted entities,
net of tax
|
|
231
|
172
|
290
|
Income tax relating to items that may be
reclassified
|
|
(125)
|
97
|
(86)
|
|
|
1,452
|
(570)
|
1,058
|
Items that will not be reclassified to profit or loss
|
|
|
|
|
Remeasurements
of the net pension and other
post-retirement
|
|
|
|
|
benefit
liability or asset
|
|
727
|
3,484
|
(1,222)
|
Income tax relating to items that will not be
reclassified
|
|
(246)
|
(765)
|
402
|
|
|
481
|
2,719
|
(820)
|
Other comprehensive income
|
|
1,933
|
2,149
|
238
|
Total comprehensive income
|
|
3,425
|
2,692
|
(320)
|
Attributable to
|
|
|
|
|
BP shareholders
|
|
3,363
|
2,667
|
(351)
|
Non-controlling interests
|
|
62
|
25
|
31
|
|
|
3,425
|
2,692
|
(320)
|
|
Group statement of changes in equity
|
||||
|
|
BP shareholders’
|
Non-controlling
|
Total
|
$ million
|
|
equity
|
interests
|
equity
|
|
|
|
|
|
At 1 January 2017
|
|
95,286
|
1,557
|
96,843
|
|
|
|
|
|
Total comprehensive income
|
|
3,363
|
62
|
3,425
|
Dividends
|
|
(1,304)
|
(15)
|
(1,319)
|
Share-based payments, net of tax
|
|
177
|
–
|
177
|
Share of equity-accounted entities’ changes in
equity,
net of tax
|
|
118
|
–
|
118
|
Transactions involving non-controlling interests
|
|
–
|
38
|
38
|
At 31 March 2017
|
|
97,640
|
1,642
|
99,282
|
|
|
|
|
|
|
|
BP shareholders’
|
Non-controlling
|
Total
|
$ million
|
|
equity
|
interests
|
equity
|
|
|
|
|
|
At 1 January 2016
|
|
97,216
|
1,171
|
98,387
|
|
|
|
|
|
Total comprehensive income
|
|
(351)
|
31
|
(320)
|
Dividends
|
|
(1,099)
|
(9)
|
(1,108)
|
Share-based payments, net of tax
|
|
265
|
–
|
265
|
Transactions involving non-controlling interests
|
|
(1)
|
66
|
65
|
At 31 March 2016
|
|
96,030
|
1,259
|
97,289
|
|
Group balance sheet
|
|||
|
|
31 March
|
31 December
|
$ million
|
|
2017
|
2016
|
Non-current assets
|
|
|
|
Property, plant and equipment
|
|
129,817
|
129,757
|
Goodwill
|
|
11,256
|
11,194
|
Intangible assets
|
|
18,366
|
18,183
|
Investments in joint ventures
|
|
8,765
|
8,609
|
Investments in associates
|
|
15,484
|
14,092
|
Other investments
|
|
1,011
|
1,033
|
Fixed assets
|
|
184,699
|
182,868
|
Loans
|
|
550
|
532
|
Trade and other receivables
|
|
1,448
|
1,474
|
Derivative financial instruments
|
|
4,189
|
4,359
|
Prepayments
|
|
1,022
|
945
|
Deferred tax assets
|
|
4,883
|
4,741
|
Defined benefit pension plan surpluses
|
|
1,162
|
584
|
|
|
197,953
|
195,503
|
Current assets
|
|
|
|
Loans
|
|
259
|
259
|
Inventories
|
|
17,236
|
17,655
|
Trade and other receivables
|
|
21,004
|
20,675
|
Derivative financial instruments
|
|
2,467
|
3,016
|
Prepayments
|
|
1,092
|
1,486
|
Current tax receivable
|
|
1,115
|
1,194
|
Other investments
|
|
39
|
44
|
Cash and cash equivalents
|
|
23,794
|
23,484
|
|
|
67,006
|
67,813
|
Total assets
|
|
264,959
|
263,316
|
Current liabilities
|
|
|
|
Trade and other payables
|
|
37,548
|
37,915
|
Derivative financial instruments
|
|
2,330
|
2,991
|
Accruals
|
|
4,096
|
5,136
|
Finance debt
|
|
7,360
|
6,634
|
Current tax payable
|
|
1,821
|
1,666
|
Provisions
|
|
2,971
|
4,012
|
|
|
56,126
|
58,354
|
Non-current liabilities
|
|
|
|
Other payables
|
|
13,067
|
13,946
|
Derivative financial instruments
|
|
5,187
|
5,513
|
Accruals
|
|
451
|
469
|
Finance debt
|
|
54,472
|
51,666
|
Deferred tax liabilities
|
|
7,295
|
7,238
|
Provisions
|
|
20,272
|
20,412
|
Defined benefit pension plan and other post-retirement benefit plan
deficits
|
|
8,807
|
8,875
|
|
|
109,551
|
108,119
|
Total liabilities
|
|
165,677
|
166,473
|
Net assets
|
|
99,282
|
96,843
|
Equity
|
|
|
|
BP shareholders’ equity
|
|
97,640
|
95,286
|
Non-controlling interests
|
|
1,642
|
1,557
|
Total equity
|
|
99,282
|
96,843
|
|
Condensed group cash flow statement
|
|||||
|
|
First
|
Fourth
|
First
|
|
|
|
quarter
|
quarter
|
quarter
|
|
$ million
|
|
2017
|
2016
|
2016
|
|
Operating activities
|
|
|
|
|
|
Profit (loss) before taxation
|
|
2,115
|
617
|
(865)
|
|
Adjustments to reconcile profit (loss) before taxation to net
cash
|
|
|
|
|
|
provided by operating activities
|
|
|
|
|
|
Depreciation, depletion and amortization and
exploration
|
|
|
|
|
|
expenditure written off
|
|
4,103
|
3,808
|
3,891
|
|
Impairment and (gain) loss on sale of businesses and
fixed assets
|
|
408
|
(553)
|
(325)
|
|
Earnings from equity-accounted entities, less dividends
received
|
|
(220)
|
(605)
|
(24)
|
|
Net charge for interest and other finance expense, less
net interest paid
|
|
252
|
310
|
168
|
|
Share-based payments
|
|
162
|
150
|
259
|
|
Net operating charge for pensions and other
post-retirement benefits,
|
|
|
|
|
|
less contributions and benefit payments for
unfunded plans
|
|
(73)
|
(347)
|
32
|
|
Net charge for provisions, less payments
|
|
(177)
|
(629)
|
735
|
|
Movements in inventories and other current and
non-current
|
|
|
|
|
|
assets and liabilities
|
|
(3,600)
|
393
|
(1,727)
|
|
Income taxes paid
|
|
(856)
|
(716)
|
(272)
|
|
Net cash provided by operating activities
|
|
2,114
|
2,428
|
1,872
|
|
Investing activities
|
|
|
|
|
|
Expenditure on property, plant and equipment, intangible and other
assets
|
|
(3,823)
|
(4,658)
|
(4,381)
|
|
Acquisitions, net of cash acquired
|
|
(42)
|
(1)
|
–
|
|
Investment in joint ventures
|
|
(20)
|
(37)
|
(4)
|
|
Investment in associates
|
|
(183)
|
(226)
|
(93)
|
|
Total cash capital expenditure
|
|
(4,068)
|
(4,922)
|
(4,478)
|
|
Proceeds from disposal of fixed assets
|
|
188
|
391
|
238
|
|
Proceeds from disposal of businesses, net of cash
disposed
|
|
73
|
78
|
911
|
|
Proceeds from loan repayments
|
|
14
|
7
|
46
|
|
Net cash used in investing activities
|
|
(3,793)
|
(4,446)
|
(3,283)
|
|
Financing activities
|
|
|
|
|
|
Proceeds from long-term financing
|
|
3,713
|
3,069
|
2,738
|
|
Repayments of long-term financing
|
|
(917)
|
(1,733)
|
(3,559)
|
|
Net increase (decrease) in short-term debt
|
|
315
|
375
|
(112)
|
|
Net increase (decrease) in non-controlling interests
|
|
30
|
126
|
70
|
|
Dividends paid
|
– BP shareholders
|
|
(1,304)
|
(1,182)
|
(1,099)
|
|
– non-controlling interests
|
|
(15)
|
(24)
|
(9)
|
Net cash provided by (used in) financing activities
|
|
1,822
|
631
|
(1,971)
|
|
Currency translation differences relating to cash and cash
equivalents
|
|
167
|
(649)
|
42
|
|
Increase (decrease) in cash and cash equivalents
|
|
310
|
(2,036)
|
(3,340)
|
|
Cash and cash equivalents at beginning of period
|
|
23,484
|
25,520
|
26,389
|
|
Cash and cash equivalents at end of period
|
|
23,794
|
23,484
|
23,049
|
|
Notes
|
Note 1. Basis of preparation
|
Note 2. Gulf of Mexico oil spill
|
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
$ million
|
|
2017
|
2016
|
2016
|
Income statement
|
|
|
|
|
Production and manufacturing expenses
|
|
35
|
674
|
794
|
Profit (loss) before interest and taxation
|
|
(35)
|
(674)
|
(794)
|
Finance costs
|
|
126
|
125
|
123
|
Profit (loss) before taxation
|
|
(161)
|
(799)
|
(917)
|
Taxation
|
|
48
|
268
|
251
|
Profit (loss) for the period
|
|
(113)
|
(531)
|
(666)
|
|
Note 2. Gulf of Mexico oil spill (continued)
|
|||
|
|
31 March
|
31 December
|
$ million
|
|
2017
|
2016
|
Balance sheet
|
|
|
|
Current assets
|
|
|
|
Trade and other receivables
|
|
264
|
194
|
Current liabilities
|
|
|
|
Trade and other payables
|
|
(2,945)
|
(3,056)
|
Provisions
|
|
(1,296)
|
(2,330)
|
Net current assets (liabilities)
|
|
(3,977)
|
(5,192)
|
Non-current assets
|
|
|
|
Deferred tax assets
|
|
2,915
|
2,973
|
Non-current liabilities
|
|
|
|
Other payables
|
|
(12,663)
|
(13,522)
|
Provisions
|
|
(54)
|
(112)
|
Deferred tax liabilities
|
|
5,226
|
5,119
|
Net non-current assets (liabilities)
|
|
(4,576)
|
(5,542)
|
Net assets (liabilities)
|
|
(8,553)
|
(10,734)
|
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
$ million
|
|
2017
|
2016
|
2016
|
Cash flow statement - Operating activities
|
|
|
|
|
Profit (loss) before taxation
|
|
(161)
|
(799)
|
(917)
|
Adjustments to reconcile profit (loss) before taxation to net
cash
|
|
|
|
|
provided by operating activities
|
|
|
|
|
Net charge for interest and other finance expense, less net
interest paid
|
|
126
|
125
|
123
|
Net charge for provisions, less payments
|
|
(5)
|
(376)
|
757
|
Movements in inventories and other current and
non-current
|
|
|
|
|
assets and liabilities
|
|
(2,254)
|
(993)
|
(1,088)
|
Pre-tax cash flows
|
|
(2,294)
|
(2,043)
|
(1,125)
|
$ million
|
|
|
At 1 January 2017
|
|
2,442
|
Net increase in provision
|
|
25
|
Reclassified to other payables
|
|
(596)
|
Utilization
|
|
(521)
|
At 31 March 2017
|
|
1,350
|
|
Note 2. Gulf of Mexico oil spill (continued)
|
Note 3. Analysis of replacement cost profit (loss) before interest
and tax and
|
||||
reconciliation to profit (loss) before taxation
|
||||
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
$ million
|
|
2017
|
2016
|
2016
|
Upstream
|
|
1,256
|
692
|
(1,205)
|
Downstream
|
|
1,706
|
899
|
1,880
|
Rosneft
|
|
99
|
158
|
66
|
Other businesses and corporate(a)
|
|
(431)
|
(1,117)
|
(1,074)
|
|
|
2,630
|
632
|
(333)
|
Consolidation adjustment – UPII*
|
|
(68)
|
(132)
|
40
|
RC profit (loss) before interest and tax
|
|
2,562
|
500
|
(293)
|
Inventory holding gains (losses)*
|
|
|
|
|
Upstream
|
|
(6)
|
19
|
(31)
|
Downstream
|
|
98
|
558
|
(97)
|
Rosneft (net of tax)
|
|
(26)
|
24
|
(4)
|
Profit (loss) before interest and tax
|
|
2,628
|
1,101
|
(425)
|
Finance costs
|
|
460
|
434
|
394
|
Net finance expense relating to pensions and other
|
|
|
|
|
post-retirement benefits
|
|
53
|
50
|
46
|
Profit (loss) before taxation
|
|
2,115
|
617
|
(865)
|
|
|
|
|
|
RC profit (loss) before interest and tax*
|
|
|
|
|
US
|
|
513
|
(1,646)
|
(1,256)
|
Non-US
|
|
2,049
|
2,146
|
963
|
|
|
2,562
|
500
|
(293)
|
(a)
|
Includes costs related to the Gulf of Mexico oil spill. See Note 2
for further information.
|
|
Note 4. Segmental analysis
|
||||
Sales and other operating revenues
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
$ million
|
|
2017
|
2016
|
2016
|
By segment
|
|
|
|
|
Upstream
|
|
11,327
|
9,129
|
7,431
|
Downstream
|
|
50,080
|
46,834
|
34,552
|
Other businesses and corporate
|
|
285
|
424
|
396
|
|
|
61,692
|
56,387
|
42,379
|
|
|
|
|
|
Less: sales and other operating revenues between
segments
|
|
|
|
|
Upstream
|
|
5,777
|
4,695
|
3,633
|
Downstream
|
|
(86)
|
523
|
118
|
Other businesses and corporate
|
|
138
|
162
|
116
|
|
|
5,829
|
5,380
|
3,867
|
|
|
|
|
|
Third party sales and other operating revenues
|
|
|
|
|
Upstream
|
|
5,550
|
4,434
|
3,798
|
Downstream
|
|
50,166
|
46,311
|
34,434
|
Other businesses and corporate
|
|
147
|
262
|
280
|
Total sales and other operating revenues
|
|
55,863
|
51,007
|
38,512
|
|
|
|
|
|
By geographical area
|
|
|
|
|
US
|
|
21,152
|
18,642
|
13,576
|
Non-US
|
|
40,020
|
37,381
|
27,146
|
|
|
61,172
|
56,023
|
40,722
|
Less: sales and other operating revenues between areas
|
|
5,309
|
5,016
|
2,210
|
|
|
55,863
|
51,007
|
38,512
|
|
|
|
|
|
Depreciation, depletion and amortization
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
$ million
|
|
2017
|
2016
|
2016
|
Upstream
|
|
|
|
|
US
|
|
1,237
|
1,216
|
1,089
|
Non-US
|
|
2,054
|
1,859
|
2,104
|
|
|
3,291
|
3,075
|
3,193
|
Downstream
|
|
|
|
|
US
|
|
216
|
219
|
210
|
Non-US
|
|
279
|
273
|
267
|
|
|
495
|
492
|
477
|
Other businesses and corporate
|
|
|
|
|
US
|
|
16
|
20
|
15
|
Non-US
|
|
40
|
55
|
45
|
|
|
56
|
75
|
60
|
Total group
|
|
3,842
|
3,642
|
3,730
|
Note 5. Production and similar taxes
|
||||
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
$ million
|
|
2017
|
2016
|
2016
|
US
|
|
36
|
38
|
18
|
Non-US
|
|
270
|
161
|
(4)
|
|
|
306
|
199
|
14
|
|
Note 6. Earnings per share and shares in issue
|
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
$ million
|
|
2017
|
2016
|
2016
|
Results for the period
|
|
|
|
|
Profit (loss) for the period attributable to BP
shareholders
|
|
1,449
|
497
|
(583)
|
Less: preference dividend
|
|
–
|
–
|
–
|
Profit
(loss) attributable to BP ordinary shareholders
|
|
1,449
|
497
|
(583)
|
|
|
|
|
|
Number of shares (thousand)(a)(b)
|
|
|
|
|
Basic weighted average number of shares outstanding
|
|
19,518,500
|
18,995,725
|
18,468,632
|
ADS equivalent
|
|
3,253,083
|
3,165,954
|
3,078,105
|
|
|
|
|
|
Weighted average number of shares outstanding used
|
|
|
|
|
to calculate diluted earnings per share
|
|
19,621,566
|
19,107,599
|
18,468,632
|
ADS equivalent
|
|
3,270,261
|
3,184,599
|
3,078,105
|
|
|
|
|
|
Shares in issue at period-end
|
|
19,664,528
|
19,438,990
|
18,635,861
|
ADS equivalent
|
|
3,277,421
|
3,239,831
|
3,105,976
|
(a)
|
Excludes treasury shares and includes certain shares that will be
issued in the future under employee share-based payment
plans.
|
(b)
|
If the inclusion of potentially issuable shares would decrease loss
per share, the potentially issuable shares are excluded from the
weighted average number of shares outstanding used to calculate
diluted earnings per share.
|
Note 7. Dividends
|
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
|
|
2017
|
2016
|
2016
|
Dividends paid per ordinary share
|
|
|
|
|
cents
|
|
10.000
|
10.000
|
10.000
|
pence
|
|
8.159
|
7.931
|
7.012
|
Dividends paid per ADS (cents)
|
|
60.00
|
60.00
|
60.00
|
Scrip dividends
|
|
|
|
|
Number of shares issued (millions)
|
|
115.1
|
129.2
|
154.4
|
Value of shares issued ($ million)
|
|
642
|
710
|
739
|
|
Note 8. Net Debt*
|
||||
Net debt ratio*
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
$ million
|
|
2017
|
2016
|
2016
|
Gross debt
|
|
61,832
|
58,300
|
54,012
|
Fair value (asset) liability of hedges related to finance
debt(a)
|
|
597
|
697
|
(967)
|
|
|
62,429
|
58,997
|
53,045
|
Less: cash and cash equivalents
|
|
23,794
|
23,484
|
23,049
|
Net debt
|
|
38,635
|
35,513
|
29,996
|
Equity
|
|
99,282
|
96,843
|
97,289
|
Net debt ratio
|
|
28.0%
|
26.8%
|
23.6%
|
Analysis of changes in net debt
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
$ million
|
|
2017
|
2016
|
2016
|
Opening balance
|
|
|
|
|
Finance debt
|
|
58,300
|
58,997
|
53,168
|
Fair value (asset) liability of hedges related to finance
debt(a)
|
|
697
|
(1,113)
|
379
|
Less: cash and cash equivalents
|
|
23,484
|
25,520
|
26,389
|
Opening net debt
|
|
35,513
|
32,364
|
27,158
|
Closing balance
|
|
|
|
|
Finance debt
|
|
61,832
|
58,300
|
54,012
|
Fair value (asset) liability of hedges related to finance
debt(a)
|
|
597
|
697
|
(967)
|
Less: cash and cash equivalents
|
|
23,794
|
23,484
|
23,049
|
Closing net debt
|
|
38,635
|
35,513
|
29,996
|
Decrease (increase) in net debt
|
|
(3,122)
|
(3,149)
|
(2,838)
|
Movement in cash and cash equivalents
|
|
|
|
|
(excluding exchange adjustments)
|
|
143
|
(1,387)
|
(3,382)
|
Net cash outflow (inflow) from financing
|
|
|
|
|
(excluding share capital and dividends)
|
|
(3,111)
|
(1,711)
|
933
|
Other movements
|
|
(66)
|
(146)
|
359
|
Movement in net debt before exchange effects
|
|
(3,034)
|
(3,244)
|
(2,090)
|
Exchange adjustments
|
|
(88)
|
95
|
(748)
|
Decrease (increase) in net debt
|
|
(3,122)
|
(3,149)
|
(2,838)
|
(a)
|
Derivative financial instruments entered into for the purpose of
managing interest rate and foreign currency exchange risk
associated with net debt with a fair value liability position of
$1,746 million (fourth quarter 2016 liability of
$1,962 million and first quarter 2016 liability of
$1,225 million) are not included in the calculation of net
debt shown above as hedge accounting is not applied for these
instruments.
|
Note 9. Inventory valuation
|
Note 10. Statutory accounts
|
|
Additional information
|
||||
Capital expenditure*
|
||||
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
$ million
|
|
2017
|
2016
|
2016
|
Capital expenditure on a cash basis
|
|
|
|
|
Organic capital expenditure*(a)
|
|
3,538
|
4,473
|
4,478
|
Inorganic capital expenditure*(b)
|
|
530
|
449
|
–
|
|
|
4,068
|
4,922
|
4,478
|
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
$ million
|
|
2017
|
2016
|
2016
|
Organic capital expenditure by segment
|
|
|
|
|
Upstream
|
|
|
|
|
US
|
|
641
|
602
|
1,247
|
Non-US(a)
|
|
2,339
|
2,918
|
2,809
|
|
|
2,980
|
3,520
|
4,056
|
Downstream
|
|
|
|
|
US
|
|
152
|
303
|
119
|
Non-US
|
|
320
|
530
|
269
|
|
|
472
|
833
|
388
|
Other businesses and corporate
|
|
|
|
|
US
|
|
21
|
25
|
–
|
Non-US
|
|
65
|
95
|
34
|
|
|
86
|
120
|
34
|
|
|
3,538
|
4,473
|
4,478
|
Organic capital expenditure by geographical area
|
|
|
|
|
US
|
|
814
|
930
|
1,366
|
Non-US(a)
|
|
2,724
|
3,543
|
3,112
|
|
|
3,538
|
4,473
|
4,478
|
(a)
|
Fourth quarter 2016 excludes the renewal of the Abu Dhabi ADCO
concession for which no cash flow arises in the quarter because BP
shares were issued as consideration.
|
(b)
|
First quarter 2017 includes amounts paid to purchase an interest in
the Zohr gas field in Egypt and in exploration blocks in
Senegal.
|
|
Non-operating items*
|
||||
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
$ million
|
|
2017
|
2016
|
2016
|
Upstream
|
|
|
|
|
Impairment and gain (loss) on sale of businesses and fixed
assets(a)
|
|
(382)
|
479
|
4
|
Environmental and other provisions
|
|
–
|
–
|
–
|
Restructuring, integration and rationalization costs
|
|
2
|
(71)
|
(263)
|
Fair value gain (loss) on embedded derivatives
|
|
25
|
(17)
|
13
|
Other(b)
|
|
(5)
|
245
|
(109)
|
|
|
(360)
|
636
|
(355)
|
Downstream
|
|
|
|
|
Impairment and gain (loss) on sale of businesses and fixed
assets
|
|
(11)
|
72
|
321
|
Environmental and other provisions
|
|
–
|
2
|
–
|
Restructuring, integration and rationalization costs
|
|
(65)
|
(103)
|
(35)
|
Fair value gain (loss) on embedded derivatives
|
|
–
|
–
|
–
|
Other
|
|
–
|
(48)
|
–
|
|
|
(76)
|
(77)
|
286
|
Rosneft
|
|
|
|
|
Impairment and gain (loss) on sale of businesses and fixed
assets
|
|
–
|
62
|
–
|
Environmental and other provisions
|
|
–
|
–
|
–
|
Restructuring, integration and rationalization costs
|
|
–
|
–
|
–
|
Fair value gain (loss) on embedded derivatives
|
|
–
|
–
|
–
|
Other
|
|
–
|
(39)
|
–
|
|
|
–
|
23
|
–
|
Other businesses and corporate
|
|
|
|
|
Impairment and gain (loss) on sale of businesses and fixed
assets
|
|
(15)
|
2
|
–
|
Environmental and other provisions
|
|
–
|
–
|
–
|
Restructuring, integration and rationalization costs
|
|
(8)
|
(21)
|
(48)
|
Fair value gain (loss) on embedded derivatives
|
|
–
|
–
|
–
|
Gulf of Mexico oil spill(c)
|
|
(35)
|
(674)
|
(794)
|
Other
|
|
67
|
–
|
(54)
|
|
|
9
|
(693)
|
(896)
|
Total before interest and taxation
|
|
(427)
|
(111)
|
(965)
|
Finance costs(c)
|
|
(126)
|
(125)
|
(123)
|
Total before taxation
|
|
(553)
|
(236)
|
(1,088)
|
Taxation credit (charge)
|
|
248
|
56
|
310
|
Total after taxation for period
|
|
(305)
|
(180)
|
(778)
|
(a)
|
First quarter 2017 relates primarily to an impairment charge
arising following the announcement on 3 April 2017 of the agreement
to sell the Forties Pipeline System business to INEOS. An
impairment reversal of $30 million was also recorded in the quarter
in relation to Block KG D6 in India ($234-million impairment
reversal in fourth quarter 2016).
|
(b)
|
First quarter 2017 includes a $56-million write-back relating to
Block KG D6 in India ($319-million write-back in fourth quarter
2016). Fourth quarter 2016 also includes the write-off of $147
million in relation to the value ascribed to licences in the
deepwater Gulf of Mexico as part of the accounting for the
acquisition of upstream assets from Devon Energy in
2011.
|
(c)
|
See
Note 2 for further details regarding costs relating to the Gulf of
Mexico oil spill.
|
|
Non-GAAP information on fair value accounting effects
|
||||
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
$ million
|
|
2017
|
2016
|
2016
|
Favourable (unfavourable) impact relative to
management’s
|
|
|
|
|
measure of performance
|
|
|
|
|
Upstream
|
|
246
|
(344)
|
(103)
|
Downstream
|
|
40
|
99
|
(219)
|
|
|
286
|
(245)
|
(322)
|
Taxation credit (charge)
|
|
(79)
|
97
|
83
|
|
|
207
|
(148)
|
(239)
|
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
$ million
|
|
2017
|
2016
|
2016
|
Upstream
|
|
|
|
|
Replacement cost profit (loss) before interest and tax adjusted
for
|
|
|
|
|
fair value accounting effects
|
|
1,010
|
1,036
|
(1,102)
|
Impact of fair value accounting effects
|
|
246
|
(344)
|
(103)
|
Replacement cost profit (loss) before interest and tax
|
|
1,256
|
692
|
(1,205)
|
Downstream
|
|
|
|
|
Replacement cost profit before interest and tax adjusted
for
|
|
|
|
|
fair value accounting effects
|
|
1,666
|
800
|
2,099
|
Impact of fair value accounting effects
|
|
40
|
99
|
(219)
|
Replacement cost profit before interest and tax
|
|
1,706
|
899
|
1,880
|
Total group
|
|
|
|
|
Profit (loss) before interest and tax adjusted for
|
|
|
|
|
fair value accounting effects
|
|
2,342
|
1,346
|
(103)
|
Impact of fair value accounting effects
|
|
286
|
(245)
|
(322)
|
Profit (loss) before interest and tax
|
|
2,628
|
1,101
|
(425)
|
|
Readily marketable inventory* (RMI)
|
|
|
|
|
|
31 March
|
31 December
|
$ million
|
|
2017
|
2016
|
RMI at fair value
|
|
5,495
|
5,952
|
Paid-up RMI*
|
|
2,802
|
2,705
|
|
|
31 March
|
31 December
|
$ million
|
|
2017
|
2016
|
Reconciliation of total inventory to paid-up RMI
|
|
|
|
Inventories as reported on the group balance sheet
|
|
17,236
|
17,655
|
Less: (a) inventories which are not oil and oil products and (b)
oil and oil
|
|
|
|
product inventories which are not risk-managed by
IST
|
|
(12,228)
|
(12,131)
|
RMI on an IFRS basis
|
|
5,008
|
5,524
|
Plus: difference between RMI at fair value and RMI on an IFRS
basis
|
|
487
|
428
|
RMI at fair value
|
|
5,495
|
5,952
|
Less: unpaid RMI* at fair value
|
|
(2,693)
|
(3,247)
|
Paid-up RMI
|
|
2,802
|
2,705
|
|
Realizations* and marker prices
|
||||
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
|
|
2017
|
2016
|
2016
|
Average realizations(a)
|
|
|
|
|
Liquids* ($/bbl)
|
|
|
|
|
US
|
|
46.34
|
41.93
|
28.75
|
Europe
|
|
53.28
|
45.66
|
31.73
|
Rest of World(b)
|
|
51.79
|
45.27
|
29.72
|
BP Average(b)
|
|
49.87
|
43.89
|
29.61
|
Natural gas ($/mcf)
|
|
|
|
|
US
|
|
2.50
|
2.29
|
1.57
|
Europe
|
|
5.40
|
4.81
|
4.30
|
Rest of World
|
|
3.85
|
3.35
|
3.31
|
BP Average
|
|
3.50
|
3.08
|
2.84
|
Total hydrocarbons* ($/boe)
|
|
|
|
|
US
|
|
34.29
|
30.32
|
20.73
|
Europe
|
|
46.69
|
40.48
|
29.81
|
Rest of World(b)
|
|
37.93
|
30.98
|
24.64
|
BP Average(b)
|
|
37.19
|
31.40
|
23.81
|
Average oil marker prices ($/bbl)
|
|
|
|
|
Brent
|
|
53.69
|
49.33
|
33.94
|
West Texas Intermediate
|
|
51.70
|
49.23
|
33.45
|
Western Canadian Select
|
|
38.77
|
35.44
|
22.11
|
Alaska North Slope
|
|
53.82
|
50.06
|
33.98
|
Mars
|
|
49.59
|
46.23
|
30.14
|
Urals (NWE – cif)
|
|
51.88
|
47.73
|
31.66
|
Average natural gas marker prices
|
|
|
|
|
Henry Hub gas price(c) ($/mmBtu)
|
|
3.32
|
2.98
|
2.09
|
UK Gas – National Balancing Point (p/therm)
|
|
48.19
|
45.76
|
30.42
|
(a)
|
Based
on sales of consolidated subsidiaries only – this excludes
equity-accounted entities.
|
(b)
|
Production
volume recognition methodology for our Technical Service Contract
arrangement in Iraq has been simplified to exclude the impact of
oil price movements on lifting imbalances. A minor adjustment has
been made to first quarter 2016. There is no impact on the
financial results.
|
(c)
|
Henry
Hub First of Month Index.
|
Exchange rates
|
||||
|
|
First
|
Fourth
|
First
|
|
|
quarter
|
quarter
|
quarter
|
|
|
2017
|
2016
|
2016
|
$/£ average rate for the period
|
|
1.24
|
1.24
|
1.43
|
$/£ period-end rate
|
|
1.25
|
1.22
|
1.44
|
|
|
|
|
|
$/€ average rate for the period
|
|
1.07
|
1.08
|
1.10
|
$/€ period-end rate
|
|
1.07
|
1.05
|
1.14
|
|
|
|
|
|
Rouble/$ average rate for the period
|
|
58.72
|
63.12
|
74.97
|
Rouble/$ period-end rate
|
|
56.01
|
60.63
|
67.31
|
|
Glossary
|
|
Glossary (continued)
|
|
Glossary (continued)
|
|
Glossary (continued)
|
|
Legal proceedings
|
Cautionary statement
|
Contacts
|
||
|
London
|
Houston
|
|
|
|
Press
Office
|
David
Nicholas
|
Brett
Clanton
|
|
+44
(0)20 7496 4708
|
+1 281
366 8346
|
|
|
|
Investor
Relations
|
Jessica
Mitchell
|
Craig
Marshall
|
bp.com/investors
|
+44
(0)20 7496 4962
|
+1 281
892 4312
|