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 30 September 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 x  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
Table of contents

BP p.l.c. and subsidiaries
Form 6-K for the period ended 30 September 2018(a) 

 
 
 
Page
1.
 
3-13, 28-33, 34-37
 
 
 
 
2.
 
14-27
 
 
 
 
3.
 
34
 
 
 
 
4.
 
37
 
 
 
 
5.
 
37
 
 
 
 
6.
 
38
 
 
 
 
7.
 
39
 
 
 
 
8.
 
40
 
 
 
 
9.
 
41
(a)
In this Form 6-K, references to the nine months 2018 and nine months 2017 refer to nine-month periods ended 30 September 2018 and 30 September 2017 respectively. References to the third quarter 2018 and third quarter 2017 refer to the three-month periods ended 30 September 2018 and 30 September 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
Table of contents

Group results third quarter and nine months 2018

Highlights
Strong earnings driven by high reliability and major project delivery
•
Strong earnings and cash flow:
–
Profit for the third quarter of 2018 was $3.3 billion, compared with $1.8 billion for the same period in 2017. Underlying replacement cost profit for the third quarter of 2018 was $3.8 billion, more than double a year earlier and the highest quarterly result in more than five years, including significant earnings growth from the Upstream and Rosneft.
–
Operating cash flow for the quarter was $6.1 billion including the impact of Gulf of Mexico oil spill payments(a).
–
Gulf of Mexico oil spill payments in the quarter were $0.5 billion on a post-tax basis.
–
Dividend of 10.25 cents a share for the third quarter, 2.5% higher than a year earlier.
•
Strong operating performance:
–
Very good reliability, with the highest quarterly refining availability for 15 years and BP-operated Upstream plant reliability of 95%.
–
Reported oil and gas production was 3.6 million barrels of oil equivalent a day. Upstream underlying production, which excludes Rosneft and is adjusted for portfolio changes and pricing effects, was 6.8% higher than a year earlier, driven by ramp-up of new projects. Rosneft production of 1.2 million barrels of oil equivalent a day was 2.8% higher than last year.
•
Strategic delivery:
–
The Thunder Horse Northwest expansion project in the Gulf of Mexico and the Western Flank B project in Australia began production in October, both ahead of schedule. They are BP’s fourth and fifth Upstream major projects to start up in 2018.
–
Further expansion in fuels marketing, with now around 1,300 convenience partnership sites worldwide and network growth in Mexico.
•
BHP transaction:
–
The acquisition from BHP is expected to complete on 31 October.
–
Reflecting confidence in cash generation and continued capital discipline, and assuming oil prices remain firm in the recent trading range, BP now expects to fund the entire transaction from available cash, rather than using equity for the deferred consideration. In this case, proceeds from the associated $5-6 billion of divestments will be used to reduce net debt.

(a)  
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.
Financial summary
 
Third

Third

 
Nine

Nine

 
quarter

quarter

 
months

months

$ million
 
2018

2017

 
2018

2017

Profit for the period(a)
 
3,349

1,769

 
8,617

3,362

Inventory holding (gains) losses, before tax
 
(371
)
(557
)
 
(1,773
)
(37
)
Taxation charge (credit) on inventory holding gains and losses
 
113

167

 
425

19

RC profit
 
3,091

1,379

 
7,269

3,344

Net (favourable) adverse impact of non-operating items and fair value accounting effects, before tax
 
1,042

667

 
2,712

1,171

Taxation charge (credit) on non-operating items and fair value accounting effects
 
(295
)
(181
)
 
(735
)
(456
)
Underlying RC profit
 
3,838

1,865

 
9,246

4,059

Profit per ordinary share (cents)
 
16.74

8.95

 
43.17

17.10

Profit per ADS (dollars)
 
1.00

0.54

 
2.59

1.03

RC profit per ordinary share (cents)
 
15.45

6.98

 
36.42

17.01

RC profit per ADS (dollars)
 
0.93

0.42

 
2.19

1.02

Underlying RC profit per ordinary share (cents)
 
19.18

9.44

 
46.32

20.65

Underlying RC profit per ADS (dollars)
 
1.15

0.57

 
2.78

1.24

(a)
Profit attributable to BP shareholders.


RC profit (loss) and underlying RC profit 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 and underlying production are defined in the Glossary on page 34.
The commentary above and following should be read in conjunction with the cautionary statement on page 37.

3
Table of contents

Group headlines
Results
BP’s profit for the third quarter and nine months was $3,349 million and $8,617 million respectively, compared with $1,769 million and $3,362 million for the same periods in 2017.
For the nine months, replacement cost (RC) profit* was $7,269 million, compared with $3,344 million in 2017. Underlying RC profit* was $9,246 million, compared with $4,059 million in 2017. Underlying RC profit is after adjusting RC profit for a net charge for non-operating items* of $1,619 million and net adverse fair value accounting effects* of $358 million (both on a post-tax basis).
For the third quarter, RC profit was $3,091 million, compared with $1,379 million in 2017. Underlying RC profit was $3,838 million compared with $1,865 million for the same period in 2017. Underlying RC profit is after adjusting RC profit for a net charge for non-operating items of $649 million and net adverse fair value accounting effects of $98 million (both on a post-tax basis).
See further information on pages 5, 29 and 30.
Non-operating items
Non-operating items amounted to a post-tax charge of $649 million for the quarter and $1,619 million for the nine months. The charge for the quarter includes post-tax amounts relating to the Gulf of Mexico oil spill of $54 million for business economic loss claims and $30 million for other claims and litigation relating to the spill, as well as finance costs in respect of the unwinding of discounting effects relating to oil spill payables. See further information on page 29.
Effective tax rate
The effective tax rate (ETR) on the profit for the third quarter and nine months was 37% and 39% respectively, compared with 41% and 43% for the same periods in 2017. The ETR on RC profit or loss* for the third quarter and nine months was 38% and 41% respectively, compared with 43% for both periods in 2017. Adjusting for non-operating items and fair value accounting effects, the underlying ETR* for the third quarter and nine months was 36% and 38% respectively, compared with 40% and 42% for the same periods in 2017. The lower underlying ETR for the third quarter reflected lower adjustments in respect of prior years and re-evaluation of deferred tax positions, partly offset by deferred tax charges due to foreign exchange impacts. The lower underlying ETR for the nine months reflected lower exploration write-offs, partly offset by deferred tax charges due to foreign exchange impacts. In the current environment we now expect the underlying ETR for 2018 to be lower than 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 21 December 2018. The corresponding amount in sterling will be announced on 10 December 2018. See page 26 for further information.
 
Share buybacks
BP repurchased 19 million ordinary shares at a cost of $139 million, including fees and stamp duty, during the third quarter of 2018. For the nine months, BP repurchased 48 million ordinary shares at a cost of $339 million, including fees and stamp duty.
Operating cash flow*
Operating cash flow was $6.1 billion in the third quarter and $16.0 billion in the nine months including the impact of Gulf of Mexico oil spill payments of $0.5 billion and $2.9 billion respectively. These compare with $6.0 billion for the third quarter of 2017 and $13.0 billion for the nine months of 2017.
Capital expenditure*
Total capital expenditure for the third quarter and nine months was $4.4 billion and $12.2 billion respectively, compared with $4.5 billion and $13.0 billion for the same periods in 2017.
Organic capital expenditure* for the third quarter and nine months was $3.7 billion and $10.7 billion respectively, compared with $4.0 billion and $11.9 billion for the same periods in 2017.
Inorganic capital expenditure* for the third quarter and nine months was $0.7 billion and $1.5 billion respectively, compared with $0.5 billion and $1.1 billion for the same periods in 2017.
Organic capital expenditure and inorganic capital expenditure are non-GAAP measures. See page 28 for further information.
Divestment and other proceeds
Divestment proceeds* were $0.1 billion for the third quarter and $0.4 billion for the nine months, compared with $0.2 billion and $1.0 billion for the same periods in 2017.
Debt
Gross debt at 30 September 2018 was $64.1 billion compared with $65.8 billion a year ago. Gross debt ratio* at 30 September 2018 was 38.3%, compared with 39.6% a year ago.
Net debt* at 30 September 2018 was $39.2 billion, compared with $39.8 billion a year ago. Gearing* or net debt ratio* at 30 September 2018 was 27.5%, compared with 28.4% a year ago.
We expect gearing to remain within the target band of 20-30% during the fourth quarter of 2018. As described above, assuming oil prices remain firm, we expect to fund the deferred consideration related to the BHP transaction with available cash rather than issuing equity. As a result, gearing may move temporarily above the top end of the band in early 2019, but is expected to move back down towards the middle of the band by the end of 2019, in line with the generation of free cash flow and receipt of disposal proceeds.
Net debt, net debt ratio and gearing are non-GAAP measures. See page 26 for more information.






* For items marked with an asterisk throughout this document, definitions are provided in the Glossary on page 34.
The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 37.

4
Table of contents

Analysis of underlying RC profit* before interest and tax
 
 
Third

Third

 
Nine

Nine

 
 
quarter

quarter

 
months

months

$ million
 
2018

2017

 
2018

2017

Underlying RC profit before interest and tax
 
 
 
 
 
 
Upstream
 
3,999

1,562

 
10,664

3,642

Downstream
 
2,111

2,338

 
5,392

5,493

Rosneft
 
872

137

 
1,885

515

Other businesses and corporate
 
(345
)
(398
)
 
(1,214
)
(1,204
)
Consolidation adjustment – UPII*
 
78

(130
)
 
69

(63
)
Underlying RC profit before interest and tax
 
6,715

3,509

 
16,796

8,383

Finance costs and net finance expense relating to pensions and other post-retirement benefits
 
(610
)
(444
)
 
(1,522
)
(1,251
)
Taxation on an underlying RC basis
 
(2,213
)
(1,212
)
 
(5,838
)
(3,030
)
Non-controlling interests
 
(54
)
12

 
(190
)
(43
)
Underlying RC profit attributable to BP shareholders
 
3,838

1,865

 
9,246

4,059

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 (loss) for the period
 
 
Third

Third

 
Nine

Nine

 
 
quarter

quarter

 
months

months

$ million
 
2018

2017

 
2018

2017

RC profit (loss) before interest and tax
 
 
 
 
 
 
Upstream
 
3,472

1,242

 
10,160

3,293

Downstream
 
2,249

2,175

 
4,802

5,448

Rosneft
 
808

137

 
1,821

515

Other businesses and corporate(a)
 
(815
)
(460
)
 
(2,411
)
(1,612
)
Consolidation adjustment – UPII
 
78

(130
)
 
69

(63
)
RC profit (loss) before interest and tax
 
5,792

2,964

 
14,441

7,581

Finance costs and net finance expense relating to pensions and other post-retirement benefits
 
(729
)
(566
)
 
(1,879
)
(1,620
)
Taxation on a RC basis
 
(1,918
)
(1,031
)
 
(5,103
)
(2,574
)
Non-controlling interests
 
(54
)
12

 
(190
)
(43
)
RC profit (loss) attributable to BP shareholders
 
3,091

1,379

 
7,269

3,344

Inventory holding gains (losses)*
 
371

557

 
1,773

37

Taxation (charge) credit on inventory holding gains and losses
 
(113
)
(167
)
 
(425
)
(19
)
Profit (loss) for the period attributable to BP shareholders
 
3,349

1,769

 
8,617

3,362

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




5
Table of contents

Strategic progress
Upstream
Upstream production, which excludes Rosneft, was 2,460mboe/d for the third quarter, flat with last year. Adjusted for portfolio and PSA* impacts, underlying production* was 6.8% higher, driven by continued ramp-up of production from major projects*. Upstream unit production costs* were higher year-to-date due to increased wellwork* activity and the impact of higher prices on production entitlements.
Five Upstream major projects have been delivered to date in 2018. The Thunder Horse Northwest expansion in the Gulf of Mexico and Western Flank B in Australia started up in October, both ahead of schedule. Shah Deniz 2 in Azerbaijan, Taas-Yuryakh expansion in Russia, and Atoll in Egypt, started up during the first half of the year.
In September, BP accessed new acreage in the prolific Santos basin, offshore Brazil, by winning the licence for the Pau Brasil block. This represents BP’s first operated position in the Santos basin.
The acquisition of the significant portfolio of onshore US oil and gas assets from BHP, announced in July, is expected to complete by end of October.
Downstream
In manufacturing, refining and petrochemicals operations have both been strong in the quarter. Refining availability was 96.3%, the highest in 15 years.
In marketing, BP’s convenience partnership model has now been rolled out to around 1,300 sites across our network worldwide, and more than 370 BP-branded retail sites are now open in Mexico.


 

Advancing the energy transition
BP completed the acquisition of Chargemaster, the UK’s largest electric vehicle charging company, in the quarter.
Air BP entered into an agreement with Neste to explore opportunities to increase the supply and availability of sustainable aviation fuel.
In the quarter Lightsource BP agreed to form a joint venture to fund, develop and operate solar projects in Egypt and also announced an expansion of its position in the US, acquiring a portfolio of solar projects in Pennsylvania.
Financial framework
Operating cash flow* was $6.1 billion in the quarter and $16.0 billion in the nine months, including Gulf of Mexico oil spill payments of $0.5 billion in the quarter and $2.9 billion in the nine months. These compare with $6.0 billion for the third quarter of 2017 and $13.0 billion for the nine months of 2017.
Organic capital expenditure* of $3.7 billion in the quarter brought the total for the nine months of 2018 to $10.7 billion. BP expects 2018 organic capital expenditure to be around $15 billion.

Divestments and other proceeds totalled $0.4 billion for the nine months. 2018 total proceeds are expected to be over $3 billion.
Gulf of Mexico oil spill payments on a post-tax basis totalled $2.9 billion in the nine months of 2018. Payments for the full year are expected to be just over $3 billion on a post-tax basis.

Gearing* at the end of the quarter was 27.5%, within BP’s target band of 20-30%.Gearing is expected to remain within the target band during the fourth quarter of 2018.


Operating metrics
 
Nine months 2018
 
Financial metrics
 
Nine months 2018
 
(vs. Nine months 2017)
 
 
(vs. Nine months 2017)
Tier 1 process safety events*
 
13
 
Underlying RC profit*i
 
$9.2bn
 
(+1)
 
 
(+$5.2bn)
Reported recordable injury frequency*
 
0.21
 
Operating cash flow excluding Gulf of Mexico oil spill payments (post-tax)
 
(b) 
 
(-4%)
 
 
 
Group production
 
3,645mboe/d
 
Organic capital expenditureii
 
$10.7bn
 
(+2.5%)
 
 
(-$1.1bn)
Upstream production (excludes Rosneft segment)
 
2,510mboe/d
 
Gulf of Mexico oil spill payments (post-tax)(c)
 
$2.9bn
 
(+3.4%)
 
 
(-$1.9bn)
Upstream unit production costs
 
$7.27/boe
 
Divestment proceeds*
 
$0.4bn
 
(+1.5%)
 
 
(-$0.5bn)
BP-operated Upstream plant reliability(a)
 
95.6%
 
Net debt ratio* (gearing)iii
 
27.5%
 
(+1.0)
 
 
(-0.9)
Refining availability*
 
94.8%
 
Dividend per ordinary share(d)
 
10.25 cents
 
(-0.2)
 
 
(+2.5%)
(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 nine months, net cash provided by operating activities was $16.0 billion and post-tax Gulf of Mexico oil spill payments were $2.9 billion.
(c)
Amounts shown are post-tax, first quarter 2018 amounts disclosed were pre-tax. Post-tax amounts are consistent with operating cash flow excluding Gulf of Mexico oil spill payments in the table above and the financial framework. The equivalent amount on a pre-tax basis was $3.3 billion, a reduction of $1.6 billion on the prior year.
(d)
Represents dividend announced in the quarter (vs. prior year quarter).




6
Table of contents

Nearest GAAP equivalent measures
i
Profit for the period:
$8.6bn
ii
Capital expenditure*:
$12.2bn
iii
Gross debt ratio*:
38.3%
 


The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 37.

7
Table of contents

Upstream
 
 
Third

Third

 
Nine

Nine

 
 
quarter

quarter

 
months

months

$ million
 
2018

2017

 
2018

2017

Profit before interest and tax
 
3,473

1,255

 
10,166

3,301

Inventory holding (gains) losses*
 
(1
)
(13
)
 
(6
)
(8
)
RC profit before interest and tax
 
3,472

1,242

 
10,160

3,293

Net (favourable) adverse impact of non-operating items* and fair value accounting effects*
 
527

320

 
504

349

Underlying RC profit before interest and tax*(a)
 
3,999

1,562

 
10,664

3,642

(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 third quarter and nine months was $3,472 million and $10,160 million respectively, compared with $1,242 million and $3,293 million for the same periods in 2017. The third quarter and nine months included a net non-operating charge of $242 million and $319 million respectively, compared with a net charge of $146 million and $527 million for the same periods in 2017. Fair value accounting effects in the third quarter and nine months had an adverse impact of $285 million and $185 million respectively, compared with an adverse impact of $174 million and a favourable impact of $178 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 third quarter and nine months was $3,999 million and $10,664 million respectively, compared with $1,562 million and $3,642 million for the same periods in 2017. The result for the third quarter mainly reflected higher liquids and gas realizations and higher production from the ramp-up of major projects*, partially offset by higher exploration write-offs. The result for the nine months mainly reflected higher liquids and gas realizations, higher production from the ramp-up of major projects and lower exploration write-offs.
Production
Production for the quarter was 2,460mboe/d, flat with the third quarter of 2017. Underlying production* for the quarter increased by 6.8%, due to the ramp-up of major projects.
For the nine months, production was 2,510mboe/d, 3.4% higher than 2017. Underlying production for the nine months was 10.0% higher than 2017 due to the ramp-up of major projects.
Key events
On 28 September, BP won the licence for the Pau Brasil block located in the Santos basin, offshore Brazil, in the fifth Pre-Salt Production Sharing Contract Bid Round (BP operator 50%, CNOOC 30% and Ecopetrol 20%). BP will now have an operated position in the Santos basin for the first time.

On 1 October, EnQuest notified BP of the exercise of its option to acquire the remaining 75% of BP’s stake in the Magnus field and associated infrastructure. EnQuest acquired 25% of BP’s interest in Magnus field and associated infrastructure on 1 December 2017.

On 8 October, BP, Eni, and Libya’s National Oil Corporation (NOC) signed a letter of intent to resume exploration activities under a major exploration and production sharing agreement (EPSA) in Libya. On completion, Eni would become operator of the EPSA with a 42.5% interest. BP and the Libyan Investment Authority would hold the remaining 42.5% and 15% interest, respectively. Currently, BP is the operator of the EPSA with an 85% interest and the Libyan Investment Authority holds the remaining 15% interest.

On 18 October, BP announced the start-up of the Thunder Horse Northwest Expansion project in the deepwater Gulf of Mexico. This is the fourth major project to begin production this year. The project was delivered under budget and ahead of schedule (BP operator 75% and ExxonMobil 25%).

On 25 October, the Western Flank B project in Australia commenced gas production. This is the fifth major project to start up this year. The project was delivered under budget and ahead of schedule (Woodside operator, BP, BHP, Chevron, Shell, and Japan Australia LNG, each 16.67%).
Outlook
Looking ahead, we expect fourth-quarter reported production to be higher than the third quarter due to the acquisition of BHP assets in the US Lower 48.
The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 37.


8
Table of contents

 
 
Third

Third

 
Nine

Nine

 
 
quarter

quarter

 
months

months

$ million
 
2018

2017

 
2018

2017

Underlying RC profit before interest and tax
 
 
 
 
 
 
US
 
1,025

264

 
2,293

609

Non-US
 
2,974

1,298

 
8,371

3,033

 
 
3,999

1,562

 
10,664

3,642

Non-operating items
 
 
 
 
 
 
US(a)
 
(149
)
(97
)
 
(323
)
(143
)
Non-US(b)
 
(93
)
(49
)
 
4

(384
)
 
 
(242
)
(146
)
 
(319
)
(527
)
Fair value accounting effects
 
 
 
 
 
 
US
 
(10
)
(100
)
 
(162
)
184

Non-US
 
(275
)
(74
)
 
(23
)
(6
)
 
 
(285
)
(174
)
 
(185
)
178

RC profit before interest and tax
 
 
 
 
 
 
US
 
866

67

 
1,808

650

Non-US
 
2,606

1,175

 
8,352

2,643

 
 
3,472

1,242

 
10,160

3,293

Exploration expense
 
 
 
 
 
 
US(a)
 
39

190

 
425

255

Non-US(c)
 
271

107

 
563

1,304

 
 
310

297

 
988

1,559

Of which: Exploration expenditure written off(a)(c)
 
227

217

 
734

1,231

Production (net of royalties)(d)
 
 
 
 
 
 
Liquids* (mb/d)
 
 
 
 
 
 
US
 
424

408

 
428

425

Europe
 
128

123

 
138

120

Rest of World
 
663

809

 
684

816

 
 
1,216

1,341

 
1,250

1,360

Of which equity-accounted entities
 
110

205

 
132

207

Natural gas (mmcf/d)
 
 
 
 
 
 
US
 
1,805

1,703

 
1,780

1,625

Europe
 
212

217

 
210

251

Rest of World
 
5,201

4,581

 
5,317

4,311

 
 
7,218

6,502

 
7,307

6,187

Of which equity-accounted entities
 
472

562

 
481

552

Total hydrocarbons* (mboe/d)
 
 
 
 
 
 
US
 
736

702

 
734

705

Europe
 
165

161

 
175

163

Rest of World
 
1,560

1,599

 
1,601

1,559

 
 
2,460

2,462

 
2,510

2,427

Of which equity-accounted entities
 
191

302

 
215

302

Average realizations*(e)
 
 
 
 
 
 
Total liquids(f) ($/bbl)
 
69.68

47.45

 
66.11

47.87

Natural gas ($/mcf)
 
3.86

2.89

 
3.77

3.18

Total hydrocarbons ($/boe)
 
46.14

33.23

 
43.64

34.63

(a)
Third quarter and nine months 2017 include the write-off of $145 million in relation to the value ascribed to certain licences in the deepwater Gulf of Mexico as part of the accounting for the acquisition of upstream assets from Devon Energy in 2011. This has been classified within the ‘other’ category of non-operating items.
(b)
Nine months 2017 relates primarily to an impairment charge related to the sale of the Forties Pipeline System business to INEOS.
(c)
Nine months 2017 predominantly relates to the write-off of exploration well and lease costs in Angola. Nine months 2017 also includes the write-off of exploration well costs in Egypt.
(d)
Includes BP’s share of production of equity-accounted entities in the Upstream segment.
(e)
Realizations are based on sales by consolidated subsidiaries only - this excludes equity-accounted entities.
(f)
Includes condensate, natural gas liquids and bitumen.

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

9
Table of contents

Downstream
 
 
Third

Third

 
Nine

Nine

 
 
quarter

quarter

 
months

months

$ million
 
2018

2017

 
2018

2017

Profit before interest and tax
 
2,592

2,695

 
6,410

5,487

Inventory holding (gains) losses*
 
(343
)
(520
)
 
(1,608
)
(39
)
RC profit before interest and tax
 
2,249

2,175

 
4,802

5,448

Net (favourable) adverse impact of non-operating items* and fair value accounting effects*
 
(138
)
163

 
590

45

Underlying RC profit before interest and tax*(a)
 
2,111

2,338

 
5,392

5,493

(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 third quarter and nine months was $2,249 million and $4,802 million respectively, compared with $2,175 million and $5,448 million for the same periods in 2017.
The third quarter and nine months include a net non-operating charge of $37 million and $315 million respectively, compared with a charge of $55 million and a gain of $7 million for the same periods in 2017. Fair value accounting effects had a favourable impact of $175 million in the third quarter and an adverse impact of $275 million for the nine months, compared with an adverse impact of $108 million and $52 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 third quarter and nine months was $2,111 million and $5,392 million respectively, compared with $2,338 million and $5,493 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 $1,566 million for the third quarter and $4,018 million for the nine months, compared with $1,788 million and $3,896 million for the same periods in 2017.
The refining result for the quarter reflects strong operational performance and higher North American heavy crude oil discounts net of pipeline capacity apportionment impacts. These factors were more than offset by lower industry refining margins and a higher level of turnaround activity in the US. The stronger refining result for the nine months reflects the benefits of increased commercial optimization and higher net North American heavy crude oil discounts.
In fuels marketing the rollout of our convenience partnership model continued across the network and retail volumes grew.
For the quarter the contribution from supply and trading was similar to last year and higher than the second quarter. The result for the nine months was, however, impacted by a lower contribution from supply and trading in the first half of the year.
Lubricants
The lubricants business reported an underlying replacement cost profit before interest and tax of $324 million for the third quarter and $981 million for the nine months, compared with $356 million and $1,104 million for the same periods in 2017. The result for the quarter and nine months reflects continued premium volume growth, more than offset by the adverse lag impact of increasing base oil prices, as well as adverse foreign exchange rate movements in the quarter.
Petrochemicals
The petrochemicals business reported an underlying replacement cost profit before interest and tax of $221 million for the third quarter and $393 million for the nine months, compared with $194 million and $493 million for the same periods in 2017. The result for the quarter and nine months reflects an improved margin environment, increased margin optimization and continued strong cost management. These factors were partially offset by the impact from the divestment of our interest in the SECCO joint venture, which completed in the fourth quarter of last year. The result for the nine months was also impacted by a significantly higher level of turnaround activity in the first half of the year.
Outlook
Looking to the fourth quarter, we expect lower industry refining margins. We also expect higher levels of turnaround driven by activity at our Whiting refinery in the US.
The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 37.

10
Table of contents

Downstream (continued)
 
 
Third

Third

 
Nine

Nine

 
 
quarter

quarter

 
months

months

$ million
 
2018

2017

 
2018

2017

Underlying RC profit before interest and tax - by region
 
 
 
 
 
 
US
 
835

640

 
1,823

1,477

Non-US
 
1,276

1,698

 
3,569

4,016

 
 
2,111

2,338

 
5,392

5,493

Non-operating items
 
 
 
 
 
 
US
 
(14
)
(39
)
 
(186
)
(23
)
Non-US
 
(23
)
(16
)
 
(129
)
30

 
 
(37
)
(55
)
 
(315
)
7

Fair value accounting effects(a)
 
 
 
 
 
 
US
 
81

20

 
(339
)
(32
)
Non-US
 
94

(128
)
 
64

(20
)
 
 
175

(108
)
 
(275
)
(52
)
RC profit before interest and tax
 
 
 
 
 
 
US
 
902

621

 
1,298

1,422

Non-US
 
1,347

1,554

 
3,504

4,026

 
 
2,249

2,175

 
4,802

5,448

Underlying RC profit before interest and tax - by business(b)(c)
 
 
 
 
 
 
Fuels
 
1,566

1,788

 
4,018

3,896

Lubricants
 
324

356

 
981

1,104

Petrochemicals
 
221

194

 
393

493

 
 
2,111

2,338

 
5,392

5,493

Non-operating items and fair value accounting effects(a)
 
 
 
 
 
 
Fuels
 
140

(154
)
 
(554
)
9

Lubricants
 
—

(3
)
 
(29
)
(8
)
Petrochemicals
 
(2
)
(6
)
 
(7
)
(46
)
 
 
138

(163
)
 
(590
)
(45
)
RC profit before interest and tax(b)(c)
 
 
 
 
 
 
Fuels
 
1,706

1,634

 
3,464

3,905

Lubricants
 
324

353

 
952

1,096

Petrochemicals
 
219

188

 
386

447

 
 
2,249

2,175

 
4,802

5,448

 
 
 
 
 
 
 
BP average refining marker margin (RMM)* ($/bbl)
 
14.7

16.3

 
13.8

14.0

 
 
 
 
 
 
 
Refinery throughputs (mb/d)
 
 
 
 
 
 
US
 
740

737

 
707

713

Europe
 
805

768

 
796

784

Rest of World
 
248

240

 
242

207

 
 
1,793

1,745

 
1,745

1,704

Refining availability* (%)
 
96.3

95.3

 
94.8

95.0

 
 
 
 
 
 
 
Marketing sales of refined products (mb/d)
 
 
 
 
 
 
US
 
1,169

1,186

 
1,142

1,160

Europe
 
1,166

1,204

 
1,116

1,143

Rest of World
 
497

480

 
485

496

 
 
2,832

2,870

 
2,743

2,799

Trading/supply sales of refined products
 
3,147

3,088

 
3,192

3,015

Total sales volumes of refined products
 
5,979

5,958

 
5,935

5,814

 
 
 
 
 
 
 
Petrochemicals production (kte)
 
 
 
 
 
 
US
 
660

617

 
1,563

1,787

Europe
 
1,209

1,285

 
3,431

3,903

Rest of World
 
1,146

2,025

 
3,896

6,099

 
 
3,015

3,927

 
8,890

11,789

(a)
For Downstream, fair value accounting effects arise solely in the fuels business. See page 30 for further information.
(b)
Segment-level overhead expenses are included in the fuels business result.
(c)
Results from petrochemicals at our Gelsenkirchen and Mülheim sites in Germany are reported in the fuels business.


11
Table of contents

Rosneft
 
 
Third

Third

 
Nine

Nine

 
 
quarter

quarter

 
months

months

$ million
 
2018(a)

2017

 
2018(a)

2017

Profit before interest and tax(b)
 
835

161

 
1,980

505

Inventory holding (gains) losses*
 
(27
)
(24
)
 
(159
)
10

RC profit before interest and tax
 
808

137

 
1,821

515

Net charge (credit) for non-operating items*
 
64

—

 
64

—

Underlying RC profit before interest and tax*
 
872

137

 
1,885

515

Financial results
Replacement cost (RC) profit before interest and tax for the third quarter and nine months was $808 million and $1,821 million respectively, compared with $137 million and $515 million for the same periods in 2017.
After adjusting for a non-operating item, the underlying RC profit before interest and tax for the third quarter and nine months was $872 million and $1,885 million respectively. There were no non-operating items in the third quarter and nine months of 2017.
Compared with the same periods in 2017, the results for the third quarter and nine months were primarily affected by higher oil prices, significant foreign exchange impacts and certain one-off items.
Following the approval at the annual general meeting in June of a resolution to pay a final dividend for 2017 of 6.65 roubles per ordinary share, BP received a payment of $200 million, after the deduction of withholding tax, on 31 July.
The extraordinary general meeting held on 28 September adopted a resolution to pay interim dividends of 14.58 Russian roubles per ordinary share which constitute 50% of Rosneft's IFRS net profit for the first half of 2018. BP expects to receive a dividend of approximately $410 million after the deduction of withholding tax, subject to fluctuations in foreign exchange, in the fourth quarter.

 
 
Third

Third

 
Nine

Nine

 
 
quarter

quarter

 
months

months

 
 
2018(a)

2017

 
2018(a)

2017

Production (net of royalties) (BP share)
 
 
 
 
 
 
Liquids* (mb/d)
 
933

903

 
915

906

Natural gas (mmcf/d)
 
1,260

1,263

 
1,276

1,300

Total hydrocarbons* (mboe/d)
 
1,151

1,120

 
1,135

1,130

(a)
The operational and financial information of the Rosneft segment for the third quarter and nine months is based on preliminary operational and financial results of Rosneft for the nine months ended 30 September 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 reported profit before interest and tax, as shown in the table above, compared with the equivalent amount in Russian roubles in Rosneft’s IFRS financial statements. In particular, in third quarter 2018 these adjustments resulted in BP reporting a lower amount relating to impairment charges of downstream goodwill than the equivalent amounts expected to be reported by Rosneft. 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.


12
Table of contents

Other businesses and corporate
 
 
Third

Third

 
Nine

Nine

 
 
quarter

quarter

 
months

months

$ million
 
2018

2017

 
2018

2017

Profit (loss) before interest and tax
 
 
 
 
 
 
Gulf of Mexico oil spill - business economic loss claims
 
(69
)
—

 
(318
)
(260
)
Gulf of Mexico oil spill - other
 
(59
)
(84
)
 
(329
)
(206
)
Other
 
(687
)
(376
)
 
(1,764
)
(1,146
)
Profit (loss) before interest and tax
 
(815
)
(460
)
 
(2,411
)
(1,612
)
Inventory holding (gains) losses*
 
—

—

 
—

—

RC profit (loss) before interest and tax
 
(815
)
(460
)
 
(2,411
)
(1,612
)
Net charge (credit) for non-operating items*
 
 
 
 
 
 
Gulf of Mexico oil spill - business economic loss claims
 
69

—

 
318

260

Gulf of Mexico oil spill - other
 
59

84

 
329

206

Other
 
342

(22
)
 
550

(58
)
Net charge (credit) for non-operating items
 
470

62

 
1,197

408

Underlying RC profit (loss) before interest and tax*
 
(345
)
(398
)
 
(1,214
)
(1,204
)
Underlying RC profit (loss) before interest and tax
 
 
 
 
 
 
US
 
(166
)
(145
)
 
(436
)
(446
)
Non-US
 
(179
)
(253
)
 
(778
)
(758
)
 
 
(345
)
(398
)
 
(1,214
)
(1,204
)
Non-operating items
 
 
 
 
 
 
US
 
(438
)
(92
)
 
(1,084
)
(480
)
Non-US
 
(32
)
30

 
(113
)
72

 
 
(470
)
(62
)
 
(1,197
)
(408
)
RC profit (loss) before interest and tax
 
 
 
 
 
 
US
 
(604
)
(237
)
 
(1,520
)
(926
)
Non-US
 
(211
)
(223
)
 
(891
)
(686
)
 
 
(815
)
(460
)
 
(2,411
)
(1,612
)

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 third quarter and nine months was $815 million and $2,411 million respectively, compared with $460 million and $1,612 million for the same periods in 2017.
The results included a net non-operating charge of $470 million for the third quarter and $1,197 million for the nine months, compared with a charge of $62 million and $408 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 third quarter and nine months was $345 million and $1,214 million respectively, compared with $398 million and $1,204 million for the same periods in 2017.
Alternative Energy
The net ethanol-equivalent production (which includes ethanol and sugar) for the third quarter and nine months was 354 million litres and 621 million litres respectively, compared with 362 million litres and 588 million litres for the same periods in 2017.
Net wind generation capacity* was 1,431MW at 30 September 2018, compared with 1,432MW at 30 September 2017. BP’s net share of wind generation for the third quarter and nine months was 687GWh and 2,888GWh respectively, compared with 644GWh and 2,856GWh for the same periods in 2017.
In July, Lightsource BP, the solar development company (BP 43%), formed a joint venture with Hassan Allam Holding in Egypt. The joint venture will fund, develop and operate solar projects locally, offering commercial and residential customers in Egypt world-class solutions in solar energy and energy storage. Lightsource BP is also evaluating new opportunities in a number of other countries, including Brazil and Australia.






13
Table of contents

Financial statements
Group income statement
 
 
Third

Third

 
Nine

Nine

 
 
quarter

quarter

 
months

months

$ million
 
2018

2017

 
2018

2017

 
 
 
 
 
 
 
Sales and other operating revenues (Note 6)
 
79,468

60,018

 
223,079

172,392

Earnings from joint ventures – after interest and tax
 
148

231

 
661

596

Earnings from associates – after interest and tax
 
990

282

 
2,431

804

Interest and other income
 
154

185

 
478

434

Gains on sale of businesses and fixed assets
 
43

92

 
204

334

Total revenues and other income
 
80,803

60,808

 
226,853

174,560

Purchases
 
60,923

44,441

 
170,859

127,971

Production and manufacturing expenses(a)
 
5,879

5,454

 
16,832

16,470

Production and similar taxes (Note 8)
 
451

449

 
1,350

1,264

Depreciation, depletion and amortization (Note 7)
 
3,728

3,904

 
11,470

11,539

Impairment and losses on sale of businesses and fixed assets
 
548

108

 
616

612

Exploration expense
 
310

297

 
988

1,559

Distribution and administration expenses
 
2,801

2,634

 
8,524

7,527

Profit (loss) before interest and taxation
 
6,163

3,521

 
16,214

7,618

Finance costs(a)
 
698

511

 
1,786

1,458

Net finance expense relating to pensions and other post-retirement benefits
 
31

55

 
93

162

Profit (loss) before taxation
 
5,434

2,955

 
14,335

5,998

Taxation(a)
 
2,031

1,198

 
5,528

2,593

Profit (loss) for the period
 
3,403

1,757

 
8,807

3,405

Attributable to
 
 
 
 
 
 
BP shareholders
 
3,349

1,769

 
8,617

3,362

Non-controlling interests
 
54

(12
)
 
190

43

 
 
3,403

1,757

 
8,807

3,405

 
 
 
 
 
 
 
Earnings per share (Note 9)
 
 
 
 
 
 
Profit (loss) for the period attributable to BP shareholders
 
 
 
 
 
 
Per ordinary share (cents)
 
 
 
 
 
 
Basic
 
16.74

8.95

 
43.17

17.10

Diluted
 
16.65

8.90

 
42.91

17.00

Per ADS (dollars)
 
 
 
 
 
 
Basic
 
1.00

0.54

 
2.59

1.03

Diluted
 
1.00

0.53

 
2.57

1.02

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


14
Table of contents

Condensed group statement of comprehensive income
 
 
Third

Third

 
Nine

Nine

 
 
quarter

quarter

 
months

months

$ million
 
2018

2017

 
2018

2017

 
 
 
 
 
 
 
Profit (loss) for the period
 
3,403

1,757

 
8,807

3,405

Other comprehensive income
 
 
 
 
 
 
Items that may be reclassified subsequently to profit or loss
 
 
 
 
 
 
Currency translation differences
 
(753
)
611

 
(2,834
)
1,722

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

13

 
—

18

Available-for-sale investments
 
—

—

 
—

3

Cash flow hedges and costs of hedging
 
65

98

 
(124
)
375

Share of items relating to equity-accounted entities, net of tax
 
95

128

 
217

431

Income tax relating to items that may be reclassified
 
9

(59
)
 
(29
)
(180
)
 
 
(584
)
791

 
(2,770
)
2,369

Items that will not be reclassified to profit or loss
 
 
 
 
 
 
Remeasurements of the net pension and other post-retirement benefit liability or asset
 
389

1,002

 
2,968

2,047

Cash flow hedges that will subsequently be transferred to the balance sheet
 
(7
)
—

 
(29
)
—

Income tax relating to items that will not be reclassified
 
(119
)
(351
)
 
(941
)
(699
)
 
 
263

651

 
1,998

1,348

Other comprehensive income
 
(321
)
1,442

 
(772
)
3,717

Total comprehensive income
 
3,082

3,199

 
8,035

7,122

Attributable to
 
 
 
 
 
 
BP shareholders
 
3,040

3,206

 
7,888

7,041

Non-controlling interests
 
42

(7
)
 
147

81

 
 
3,082

3,199

 
8,035

7,122


15
Table of contents

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
 
7,888

147

8,035

Dividends
 
(4,965
)
(129
)
(5,094
)
Cash flow hedges transferred to the balance sheet, net of tax
 
17

—

17

Repurchase of ordinary share capital
 
(339
)
—

(339
)
Share-based payments, net of tax
 
582

—

582

Share of equity-accounted entities’ changes in equity, net of tax
 
(6
)
—

(6
)
Transactions involving non-controlling interests, net of tax
 
—

1

1

At 30 September 2018
 
101,488

1,932

103,420

 
 
 
 
 
 
 
BP shareholders’

Non-controlling

Total

$ million
 
equity

interests

equity

 
 
 
 
 
At 1 January 2017
 
95,286

1,557

96,843

 
 
 
 
 
Total comprehensive income
 
7,041

81

7,122

Dividends
 
(4,526
)
(109
)
(4,635
)
Share-based payments, net of tax
 
514

—

514

Share of equity-accounted entities' changes in equity, net of tax
 
206

—

206

Transactions involving non-controlling interests, net of tax
 
—

88

88

At 30 September 2017
 
98,521

1,617

100,138

(a)
See Note 1 for further information.


16
Table of contents

Group balance sheet
 
 
30 September

31 December

$ million
 
2018

2017

Non-current assets
 
 
 
Property, plant and equipment
 
122,661

129,471

Goodwill
 
11,423

11,551

Intangible assets
 
17,703

18,355

Investments in joint ventures
 
8,272

7,994

Investments in associates
 
17,929

16,991

Other investments
 
1,353

1,245

Fixed assets
 
179,341

185,607

Loans
 
470

646

Trade and other receivables
 
1,467

1,434

Derivative financial instruments
 
4,579

4,110

Prepayments
 
1,143

1,112

Deferred tax assets
 
3,672

4,469

Defined benefit pension plan surpluses
 
6,618

4,169

 
 
197,290

201,547

Current assets
 
 
 
Loans
 
292

190

Inventories
 
21,894

19,011

Trade and other receivables
 
27,401

24,849

Derivative financial instruments
 
3,751

3,032

Prepayments
 
1,833

1,414

Current tax receivable
 
900

761

Other investments
 
100

125

Cash and cash equivalents
 
26,192

25,586

 
 
82,363

74,968

Assets classified as held for sale (Note 3)
 
3,289

—

 
 
85,652

74,968

Total assets
 
282,942

276,515

Current liabilities
 
 
 
Trade and other payables
 
47,125

44,209

Derivative financial instruments
 
4,177

2,808

Accruals
 
4,521

4,960

Finance debt
 
9,175

7,739

Current tax payable
 
2,272

1,686

Provisions
 
2,320

3,324

 
 
69,590

64,726

Liabilities directly associated with assets classified as held for sale (Note 3)
 
337

—

 
 
69,927

64,726

Non-current liabilities
 
 
 
Other payables
 
13,438

13,889

Derivative financial instruments
 
5,531

3,761

Accruals
 
588

505

Finance debt
 
54,960

55,491

Deferred tax liabilities
 
8,920

7,982

Provisions
 
17,764

20,620

Defined benefit pension plan and other post-retirement benefit plan deficits
 
8,394

9,137

 
 
109,595

111,385

Total liabilities
 
179,522

176,111

Net assets
 
103,420

100,404

Equity
 
 
 
BP shareholders’ equity
 
101,488

98,491

Non-controlling interests
 
1,932

1,913

Total equity
 
103,420

100,404



17
Table of contents

Condensed group cash flow statement
 
 
Third

Third

 
Nine

Nine

 
 
quarter

quarter

 
months

months

$ million
 
2018

2017

 
2018

2017

Operating activities
 
 
 
 
 
 
Profit (loss) before taxation
 
5,434

2,955

 
14,335

5,998

Adjustments to reconcile profit (loss) before taxation to net cash provided by operating activities
 
 
 
 
 
 
Depreciation, depletion and amortization and exploration expenditure written off
 
3,955

4,121

 
12,204

12,770

Impairment and (gain) loss on sale of businesses and fixed assets
 
505

16

 
412

278

Earnings from equity-accounted entities, less dividends received
 
(664
)
(111
)
 
(2,188
)
(434
)
Net charge for interest and other finance expense, less net interest paid
 
114

163

 
385

499

Share-based payments
 
160

177

 
564

495

Net operating charge for pensions and other post-retirement benefits, less contributions and benefit payments for unfunded plans
 
(62
)
(160
)
 
(326
)
(179
)
Net charge for provisions, less payments
 
145

(144
)
 
369

(138
)
Movements in inventories and other current and non-current assets and liabilities
 
(1,573
)
305

 
(5,541
)
(3,292
)
Income taxes paid
 
(1,922
)
(1,298
)
 
(4,170
)
(2,969
)
Net cash provided by operating activities
 
6,092

6,024

 
16,044

13,028

Investing activities
 
 
 
 
 
 
Expenditure on property, plant and equipment, intangible and other assets
 
(3,675
)
(4,136
)
 
(10,745
)
(12,140
)
Acquisitions, net of cash acquired
 
(606
)
(146
)
 
(607
)
(311
)
Investment in joint ventures
 
(35
)
(5
)
 
(92
)
(35
)
Investment in associates
 
(88
)
(176
)
 
(748
)
(533
)
Total cash capital expenditure
 
(4,404
)
(4,463
)
 
(12,192
)
(13,019
)
Proceeds from disposal of fixed assets
 
90

149

 
280