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FOR IMMEDIATE RELEASE
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London 30 April 2019
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BP p.l.c. Group results
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First quarter 2019
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Highlights
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Resilient earnings and cash flow, continued strategic
progress
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Bob Dudley - Group
chief executive:
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BP's performance this quarter demonstrates the strength of our
strategy. With solid Upstream and Downstream delivery and strong
trading results, we produced resilient earnings and cash flow
through a volatile period that began with weak market conditions
and included significant turnarounds. Moving through the year, we
will keep our focus on disciplined growth, with efficient project
execution and safe and reliable operations.
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Financial summary
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First
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Fourth
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First
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quarter
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quarter
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quarter
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$ million
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2019
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2018
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2018
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Profit for the period attributable to BP shareholders
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2,934
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766
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2,469
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Inventory holding (gains) losses, net of tax
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(839
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1,951
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(80
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RC profit
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2,095
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2,717
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2,389
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Net
(favourable) adverse impact of non-operating items and fair value
accounting effects, net of tax
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263
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760
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197
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Underlying RC profit
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2,358
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3,477
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2,586
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RC profit (loss) per ordinary share (cents)
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10.38
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13.58
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11.99
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RC profit (loss) per ADS (dollars)
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0.62
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0.81
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0.72
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Underlying RC profit per ordinary share (cents)
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11.69
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17.38
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12.98
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Underlying RC profit per ADS (dollars)
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0.70
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1.04
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0.78
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The commentary above and following should be read in conjunction
with the cautionary statement on page 35.
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Balance sheet
As a result of the adoption of IFRS 16, $9.6 billion of
right-of-use assets and $10.3 billion of lease liabilities have
been included in the group balance sheet as at 31 March 2019. The
majority of these were previously reported as operating leases and
so were not previously recognized on the balance sheet. The total
lease liability also includes leases that
were previously classified as finance leases under IAS 17, which
totalled $0.7 billion at 31 December 2018. Lease liabilities are
now presented separately on the group balance sheet, do not form
part of finance debt and are not included in net debt and gearing
in the financial framework.
Income statement
The increase in depreciation from recognizing right-of-use assets
and interest on the lease liability is largely offset by the
absence of operating lease expenses, resulting in no material
overall effect on group profit measures.
Cash flow
In prior years, operating lease payments were presented as
operating cash flows* or capital expenditure*. Lease payments are
now split into payments of principal that are presented as
financing cash flows, and payments of interest that are presented
as operating cash flows. There were $0.6 billion of lease payments
of principal included within financing cash flows for the first
quarter of 2019. BP estimates that $0.5 billion of these would have
been reported as operating cash outflow and $0.1 billion
would have been reported as capital expenditure without the
adoption of IFRS 16.
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Impact of
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$ billion
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IFRS 16
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Balance sheet at 31 March 2019
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Fixed assets
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9.6
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Lease liabilities
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10.3
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Income statement for the first quarter 2019
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Operating
lease expenses(a)
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~0.6
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-
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Depreciation, depletion and amortization
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0.5
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+
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Interest charge
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0.1
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+
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Replacement cost profit*
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Negligible
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Cash flow for the first quarter 2019
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Operating cash flow
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~0.5
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+
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Capital expenditure
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~0.1
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+
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Lease payments
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0.6
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-
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Free cash flow*
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Nil
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Results
For the first quarter, underlying replacement cost (RC) profit* was
$2,358 million, compared with $2,586 million in 2018. Underlying RC
profit is after adjusting RC profit* for a net charge for
non-operating items* of $252 million and net adverse fair value
accounting effects* of $11 million (both on a post-tax
basis).
RC profit was $2,095 million for the first quarter, compared with
$2,389 million in 2018.
BP's profit for the first quarter was $2,934 million, compared with
$2,469 million for the same period in 2018.
See further information on pages 4, 26 and 27.
Depreciation, depletion and amortization
The charge for depreciation, depletion and amortization was $4.5
billion in the quarter. In the same period in 2018 it was $3.9
billion (prior to the adoption of IFRS 16). In 2019,
we expect the full-year charge to be around $2.5 billion higher
than 2018 reflecting the depreciation of the right of use assets
recognized under IFRS 16 (expected to be offset in
the income statement as operating lease expenses will no longer
appear in the income statement).
Non-operating items
Non-operating items amounted to a post-tax charge of $252 million
for the quarter. See further information on page 26.
Effective tax rate
The effective tax rate (ETR) on RC profit or loss* for the first
quarter was 42%, compared with 36% for the same period in 2018.
Adjusting for non-operating items and fair value accounting
effects, the underlying ETR* for the first quarter was 40%,
compared with 37% for the same period a year ago. The higher
underlying ETR for the first quarter reflects charges for
adjustments in respect of prior years. In the current environment
the underlying ETR in 2019 is expected to be around 40%. ETR on RC
profit or loss and underlying ETR are non-GAAP
measures.
Dividend
BP today announced a quarterly dividend of 10.25 cents per ordinary
share ($0.615 per ADS), which is expected to be paid on 21 June
2019. The corresponding amount in sterling will be announced on 10
June 2019. See page 22 for further information.
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Share buybacks
BP repurchased 6 million ordinary shares at a cost of $50 million,
including fees and stamp duty, during the first quarter of 2019.
Our share buyback programme is expected to be weighted to the
second half of 2019 and to fully offset the impact of scrip
dilution since the third quarter 2017 by the end of
2019.
Operating cash flow*
Excluding post-tax amounts related to the Gulf of Mexico oil spill,
operating cash flow* for the first quarter was $5.9 billion,
including a $1.0-billion working capital* build (after adjusting
for inventory holding gains* and excluding Gulf of Mexico oil spill
working capital effects). For the same period in 2018 we reported
$5.4 billion (prior to the implementation of IFRS 16).
Including amounts relating to the Gulf of Mexico oil spill,
operating cash flow for the first quarter was $5.3 billion (after a
$2.7-billion working capital build). For the same period in 2018 we
reported $3.6 billion (prior to the implementation of IFRS
16).
See page 29 for further information on Gulf of Mexico oil spill
cash flows and on working capital.
Capital expenditure*
Organic capital expenditure* for the first quarter was $3.6
billion. We reported $3.5 billion for the same period in 2018
(prior to the implementation of IFRS 16).
Inorganic capital expenditure* for the first quarter was $2.0
billion, including $1.7 billion relating to the BHP acquisition,
compared with $0.4 billion for the same period in
2018.
Organic capital expenditure and inorganic capital expenditure are
non-GAAP measures. See page 25 for further
information.
Divestment and other proceeds
Divestment proceeds* were $0.6 billion for the first quarter,
compared with $0.2 billion for the same period in
2018.
Gearing*
Net debt* at 31 March 2019 was $45.1 billion, compared
with $39.3 billion a year ago. Gearing at 31 March 2019
was 30.4%, compared with 30.0% at the end of 2018 and 27.8% a year
ago. Net debt and gearing are non-GAAP measures. See page 22 for
more information.
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Brian Gilvary - Chief
financial officer:
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Our first quarter results reflect the effects of IFRS 16 for the
first time. While this impacts a number of lines across our
financial statements, our financial framework is unchanged. In
particular, we have retained a measure of gearing broadly
consistent with the past, and continue to target a range of
20-30%.
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The commentary above contains forward-looking statements and should
be read in conjunction with the cautionary statement on page
35.
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First
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Fourth
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First
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quarter
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quarter
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quarter
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$ million
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2019
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2018
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2018
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Underlying RC profit before interest and tax
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Upstream
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2,928
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3,886
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3,157
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Downstream
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1,733
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2,169
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1,826
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Rosneft
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567
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431
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247
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Other
businesses and corporate
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(418
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(344
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(392
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Consolidation
adjustment - UPII*
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(13
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142
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(160
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Underlying RC profit before interest and tax
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4,797
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6,284
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4,678
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Finance
costs and net finance expense relating to pensions and other
post-retirement benefits
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(754
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(654
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(464
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Taxation on an underlying RC basis
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(1,620
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(2,148
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(1,566
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Non-controlling interests
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(65
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(5
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(62
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Underlying RC profit attributable to BP shareholders
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2,358
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3,477
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2,586
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First
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Fourth
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First
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quarter
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quarter
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quarter
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$ million
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2019
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2018
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2018
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RC profit before interest and tax
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Upstream
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2,884
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4,168
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3,174
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Downstream
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1,765
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2,138
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1,713
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Rosneft
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486
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400
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247
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Other
businesses and corporate
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(546
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(1,110
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(571
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Consolidation
adjustment - UPII
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(13
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142
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(160
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RC profit before interest and tax
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4,576
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5,738
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4,403
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Finance
costs and net finance expense relating to pensions and other
post-retirement benefits
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(882
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(776
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(584
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Taxation on a RC basis
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(1,534
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(2,240
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(1,368
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Non-controlling interests
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(65
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(5
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(62
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RC profit attributable to BP shareholders
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2,095
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2,717
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2,389
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Inventory holding gains (losses)*
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1,088
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(2,574
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92
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Taxation (charge) credit on inventory holding gains and
losses
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(249
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623
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(12
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Profit for the period attributable to BP shareholders
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2,934
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766
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2,469
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Strategic progress
Upstream
Upstream production, excluding Rosneft, for the quarter was
2,656mboe/d, 2% higher than a year earlier due to acquisition of
the BHP assets and growth of major projects*. Upstream plant
reliability* was 96.2%. Upstream unit production costs* were
$7.39/boe.
Constellation in the Gulf of Mexico was the first Upstream major
project to come onstream in 2019, followed by the second stage of
the West Nile Delta development, the Giza
and Fayoum fields, in Egypt and the Angelin development offshore
Trinidad. These are the first of five Upstream major projects
expected to begin production in 2019. BP has now safely brought 22
new upstream major projects into production since 2016, remaining
on track to deliver 900,000boe/d from new projects by
2021.
Since the start of the year, BP has taken final investment
decisions on the Atlantis Phase 3 development in the Gulf of
Mexico, Azeri Central East in Azerbaijan and Seagull in the UK
North Sea.
On 1 March, BPX Energy assumed full control of the BHP acquired US
field operations.
In March, BP confirmed a gas discovery, operated by Eni, in the
Nour North Sinai offshore prospect in the Egyptian Eastern
Mediterranean.
Downstream
Increased year-on-year fuels marketing earnings reflected higher
premium fuels volumes and the continued roll-out of convenience
partnership sites. Expansion in new markets continued, including
new sites opening in Mexico, Indonesia and China.
In the quarter BP opened its first BP-branded retail site in
Shandong Province, China.
BP and Lotte agreed an expansion of capacity at their joint venture
acetyls petrochemicals site in South Korea, helping to meet growing
regional demand.
BP also signed an agreement with Virent and Johnson Matthey to
advance the development of bio-paraxylene, a raw material for the
production of renewable polyester.
Advancing the energy transition
BP announced progress against its near-term targets for operational
GHG emissions: 2018 operational emissions were 1.7 million tonnes
CO2 equivalent
(MteCO2e)
lower than 2017; 2.5MteCO2e
sustainable GHG emissions reductions have been generated throughout
BP's operations since the beginning of 2016; and methane intensity
was maintained at 0.2% in 2018.
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At the end of the quarter BP announced the establishment of a new
initiative under which up to $100-million will be made available
over the next three years to support projects across the Upstream
to deliver new emissions reductions. BP has also entered into an
agreement with Environmental Defense Fund to collaborate in
development of technologies and practices to accelerate reduction
of methane emissions across the oil and gas industry.
BP opened two dedicated electric vehicle charging stations in the
quarter, the first in China, in partnership with 66i Fuel, and the
second in the UK.
Financial framework
Following the introduction of IFRS 16, the positive impacts on
Operating cash flow* and Organic capital expenditure* are fully
offset in the cash flow statement by a new line, Lease liability
payments. Lease payments are now included in the definition
of free
cash flow* as a use of cash,
which means the net impact on this measure is zero following the
adoption of IFRS 16.
Operating cash flow excluding Gulf of Mexico oil spill payments*
was $5.9 billion for the first quarter of 2019. For the first
quarter of 2018, we reported $5.4 billion (prior to the
implementation of IFRS 16).
Organic capital expenditure for the first quarter of 2019 was $3.6
billion. BP expects 2019 organic capital expenditure to be in the
range of $15-17 billion.
Lease liability payments of principal for the first quarter of 2019
were $0.6 billion.
Divestments and other proceeds were $0.6 billion for the
quarter.
Gulf of Mexico oil spill payments on a post-tax basis totalled $0.6 billion in
the quarter. Payments for the full year are expected to be around
$2 billion on a post-tax basis.
Gearing* at the end of the quarter
was 30.4%. Assuming recent average oil prices, and in line with
expected growth in free cash flow supported by divestment proceeds,
we expect gearing to move towards the middle of our targeted range
of 20-30% in 2020. Seepage
22 for
more information.
Safety
BP has introduced a new safety operating metric including tier 2 as
well as tier 1 process safety events, giving a wider view of
process safety within BP's operations. The increase compared to the
first quarter 2018 was mainly due to a higher number of tier 2
events.
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Operating metrics
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First quarter 2019
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Financial metrics
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First quarter 2019
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(vs. First quarter 2018)
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(vs. First quarter 2018)
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Tier 1 and tier 2 process safety events*
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28
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Underlying RC profit*
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$2.4bn
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(+15)
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(-$0.2bn)
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Reported recordable injury frequency*
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0.16
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Operating cash flow excluding Gulf of Mexico oil spill payments
(post-tax)(c)
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$5.9bn
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(-22%)
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(+$0.6bn)
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Group production
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3,822mboe/d
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Organic capital expenditure
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$3.6bn
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(+2.4%)
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(+$0.1bn)
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Upstream production (excludes
Rosneft segment)
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2,656mboe/d
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Gulf of Mexico oil spill payments (post-tax)
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$0.6bn
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(+2.0%)
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(-$1.1bn)
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Upstream unit production costs(a)
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$7.39/boe
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Divestment proceeds*
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$0.6bn
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(-3.9%)
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(+$0.4bn)
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BP-operated Upstream plant reliability
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96.2%
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Gearing
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30.4%
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(+0.3)
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(+2.6)
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BP-operated refining availability*(b)
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94.3%
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Dividend per ordinary share(d)
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10.25 cents
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(-0.5)
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(+2.5%)
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The commentary above contains forward-looking statements and should
be read in conjunction with the cautionary statement on page
35.
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First
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Fourth
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First
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quarter
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quarter
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quarter
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$ million
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2019
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2018
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2018
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Profit before interest and tax
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2,886
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|
4,156
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|
3,175
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Inventory holding (gains) losses*
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(2
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)
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12
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(1
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RC profit before interest and tax
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2,884
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4,168
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|
3,174
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|
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Net
(favourable) adverse impact of non-operating items* and fair value
accounting effects*
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44
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(282
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)
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(17
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)
|
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Underlying RC profit before interest and tax*(a)
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2,928
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|
3,886
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|
3,157
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|
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The commentary above contains forward-looking statements and should
be read in conjunction with the cautionary statement on page
35.
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|
|
First
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Fourth
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First
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|||
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|
quarter
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|
quarter
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|
quarter
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|||
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$ million
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2019
|
|
2018
|
|
2018
|
|
|||
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Underlying RC profit before interest and tax
|
|
|
|
|
|
|
|
|||
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US
|
|
612
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|
1,400
|
|
526
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|
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||
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Non-US
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2,316
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|
2,486
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|
2,631
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|
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||
|
|
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2,928
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3,886
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|
3,157
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|
|
||
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Non-operating items
|
|
|
|
|
|
|
||||
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US
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(30
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)
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(267
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)
|
(145
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)
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||
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Non-US
|
|
26
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|
403
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|
41
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|
|
||
|
|
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(4
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)
|
136
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|
(104
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)
|
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||
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Fair value accounting effects
|
|
|
|
|
|
|
||||
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US
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(93
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)
|
127
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|
(9
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)
|
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||
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Non-US
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|
53
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|
19
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|
130
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|
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||
|
|
|
(40
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)
|
146
|
|
121
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|
|
||
|
RC profit before interest and tax
|
|
|
|
|
|
|
||||
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US
|
|
489
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|
1,260
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|
372
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|
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Non-US
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|
2,395
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|
2,908
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|
2,802
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||
|
|
|
2,884
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|
4,168
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|
3,174
|
|
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Exploration expense
|
|
|
|
|
|
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||||
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US
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|
25
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|
84
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|
309
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|
|
||
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Non-US
|
|
342
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|
373
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|
205
|
|
|
||
|
|
|
367
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|
457
|
|
514
|
|
|
||
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Of which: Exploration expenditure written off
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|
284
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|
351
|
|
426
|
|
|
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Production (net of
royalties)(a)
|
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|
|
|
|
|
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Liquids* (mb/d)
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|
|
|
|
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||||
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US
|
|
455
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|
495
|
|
448
|
|
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Europe
|
|
159
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|
154
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|
139
|
|
|
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Rest of World
|
|
685
|
|
673
|
|
731
|
|
|
||
|
|
|
1,299
|
|
1,321
|
|
1,319
|
|
|
||
|
Natural gas (mmcf/d)
|
|
|
|
|
|
|
||||
|
US
|
|
2,310
|
|
2,255
|
|
1,790
|
|
|
||
|
Europe
|
|
145
|
|
215
|
|
217
|
|
|
||
|
Rest of World
|
|
5,417
|
|
5,104
|
|
5,456
|
|
|
||
|
|
|
7,872
|
|
7,574
|
|
7,463
|
|
|
||
|
Total hydrocarbons* (mboe/d)
|
|
|
|
|
|
|
||||
|
US
|
|
853
|
|
884
|
|
757
|
|
|
||
|
Europe
|
|
184
|
|
191
|
|
177
|
|
|
||
|
Rest of World
|
|
1,619
|
|
1,553
|
|
1,672
|
|
|
||
|
|
|
2,656
|
|
2,627
|
|
2,605
|
|
|
||
|
Average realizations*(b)
|
|
|
|
|
|
|
||||
|
Total liquids(c) ($/bbl)
|
|
56.47
|
|
61.80
|
|
61.40
|
|
|
||
|
Natural gas ($/mcf)
|
|
4.02
|
|
4.33
|
|
3.78
|
|
|
||
|
Total hydrocarbons ($/boe)
|
|
39.37
|
|
42.98
|
|
41.39
|
|
|
||
|
|
|
First
|
|
Fourth
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
quarter
|
|
|
$ million
|
|
2019
|
|
2018
|
|
2018
|
|
|
Profit (loss) before interest and tax
|
|
2,811
|
|
(332
|
)
|
1,782
|
|
|
Inventory holding (gains) losses*
|
|
(1,046
|
)
|
2,470
|
|
(69
|
)
|
|
RC profit before interest and tax
|
|
1,765
|
|
2,138
|
|
1,713
|
|
|
Net
(favourable) adverse impact of non-operating items* and fair value
accounting effects*
|
|
(32
|
)
|
31
|
|
113
|
|
|
Underlying RC profit before interest and tax*(a)
|
|
1,733
|
|
2,169
|
|
1,826
|
|
|
The commentary above contains forward-looking statements and should
be read in conjunction with the cautionary statement on page
35.
|
|
|
|
First
|
|
Fourth
|
|
First
|
|
|
|
|
|
quarter
|
|
quarter
|
|
quarter
|
|
|
|
$ million
|
|
2019
|
|
2018
|
|
2018
|
|
|
|
Underlying RC profit before interest and tax - by
region
|
|
|
|
|
|
|
|
|
|
US
|
|
531
|
|
995
|
|
589
|
|
|
|
Non-US
|
|
1,202
|
|
1,174
|
|
1,237
|
|
|
|
|
|
1,733
|
|
2,169
|
|
1,826
|
|
|
|
Non-operating items
|
|
|
|
|
||||
|
US
|
|
1
|
|
(109
|
)
|
(17
|
)
|
|
|
Non-US
|
|
(5
|
)
|
(292
|
)
|
(36
|
)
|
|
|
|
|
(4
|
)
|
(401
|
)
|
(53
|
)
|
|
|
Fair value accounting
effects(a)
|
|
|
|
|
||||
|
US
|
|
61
|
|
184
|
|
(121
|
)
|
|
|
Non-US
|
|
(25
|
)
|
186
|
|
61
|
|
|
|
|
|
36
|
|
370
|
|
(60
|
)
|
|
|
RC profit before interest and tax
|
|
|
|
|
||||
|
US
|
|
593
|
|
1,070
|
|
451
|
|
|
|
Non-US
|
|
1,172
|
|
1,068
|
|
1,262
|
|
|
|
|
|
1,765
|
|
2,138
|
|
1,713
|
|
|
|
Underlying RC profit before interest and tax - by
business(b)(c)
|
|
|
|
|
||||
|
Fuels
|
|
1,292
|
|
1,624
|
|
1,398
|
|
|
|
Lubricants
|
|
272
|
|
311
|
|
331
|
|
|
|
Petrochemicals
|
|
169
|
|
234
|
|
97
|
|
|
|
|
|
1,733
|
|
2,169
|
|
1,826
|
|
|
|
Non-operating items and fair value accounting
effects(a)
|
|
|
|
|
||||
|
Fuels
|
|
37
|
|
173
|
|
(110
|
)
|
|
|
Lubricants
|
|
(4
|
)
|
(198
|
)
|
(3
|
)
|
|
|
Petrochemicals
|
|
(1
|
)
|
(6
|
)
|
-
|
|
|
|
|
|
32
|
|
(31
|
)
|
(113
|
)
|
|
|
RC profit before interest and tax(b)(c)
|
|
|
|
|
||||
|
Fuels
|
|
1,329
|
|
1,797
|
|
1,288
|
|
|
|
Lubricants
|
|
268
|
|
113
|
|
328
|
|
|
|
Petrochemicals
|
|
168
|
|
228
|
|
97
|
|
|
|
|
|
1,765
|
|
2,138
|
|
1,713
|
|
|
|
|
|
|
|
|
||||
|
BP average refining marker margin (RMM)* ($/bbl)
|
|
10.2
|
|
11.0
|
|
11.7
|
|
|
|
|
|
|
|
|
||||
|
Refinery throughputs (mb/d)
|
|
|
|
|
||||
|
US
|
|
735
|
|
691
|
|
715
|
|
|
|
Europe
|
|
767
|
|
735
|
|
797
|
|
|
|
Rest of World
|
|
237
|
|
240
|
|
249
|
|
|
|
|
|
1,739
|
|
1,666
|
|
1,761
|
|
|
|
BP-operated refining availability* (%)
|
|
94.3
|
|
95.6
|
|
94.8
|
|
|
|
|
|
|
|
|
||||
|
Marketing sales of refined products (mb/d)
|
|
|
|
|
||||
|
US
|
|
1,077
|
|
1,138
|
|
1,096
|
|
|
|
Europe
|
|
993
|
|
1,053
|
|
1,045
|
|
|
|
Rest of World
|
|
520
|
|
526
|
|
481
|
|
|
|
|
|
2,590
|
|
2,717
|
|
2,622
|
|
|
|
Trading/supply sales of refined products
|
|
3,296
|
|
3,199
|
|
3,181
|
|
|
|
Total sales volumes of refined products
|
|
5,886
|
|
5,916
|
|
5,803
|
|
|
|
|
|
|
|
|
||||
|
Petrochemicals production (kte)
|
|
|
|
|
||||
|
US
|
|
601
|
|
672
|
|
499
|
|
|
|
Europe
|
|
1,160
|
|
1,037
|
|
1,128
|
|
|
|
Rest of World
|
|
1,299
|
|
1,259
|
|
1,391
|
|
|
|
|
|
3,060
|
|
2,968
|
|
3,018
|
|
|
|
|
|
First
|
|
Fourth
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
quarter
|
|
|
$ million
|
|
2019(a)
|
|
2018
|
|
2018
|
|
|
Profit before interest and tax(b)(c)
|
|
526
|
|
308
|
|
269
|
|
|
Inventory holding (gains) losses*
|
|
(40
|
)
|
92
|
|
(22
|
)
|
|
RC profit before interest and tax
|
|
486
|
|
400
|
|
247
|
|
|
Net charge (credit) for non-operating items*
|
|
81
|
|
31
|
|
-
|
|
|
Underlying RC profit before interest and tax*
|
|
567
|
|
431
|
|
247
|
|
|
|
|
First
|
|
Fourth
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
quarter
|
|
|
|
|
2019(a)
|
|
2018
|
|
2018
|
|
|
Production (net of royalties) (BP share)
|
|
|
|
|
|
|
|
|
Liquids* (mb/d)
|
|
937
|
|
946
|
|
902
|
|
|
Natural gas (mmcf/d)
|
|
1,327
|
|
1,312
|
|
1,307
|
|
|
Total hydrocarbons* (mboe/d)
|
|
1,166
|
|
1,173
|
|
1,127
|
|
|
|
|
First
|
|
Fourth
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
quarter
|
|
|
$ million
|
|
2019
|
|
2018
|
|
2018
|
|
|
Profit (loss) before interest and tax
|
|
(546
|
)
|
(1,110
|
)
|
(571
|
)
|
|
Inventory holding (gains) losses*
|
|
-
|
|
-
|
|
-
|
|
|
RC profit (loss) before interest and tax
|
|
(546
|
)
|
(1,110
|
)
|
(571
|
)
|
|
Net charge (credit) for non-operating items*
|
|
128
|
|
766
|
|
179
|
|
|
Underlying RC profit (loss) before interest and tax*
|
|
(418
|
)
|
(344
|
)
|
(392
|
)
|
|
Underlying RC profit (loss) before interest and tax
|
|
|
|
|
|||
|
US
|
|
(155
|
)
|
(179
|
)
|
(147
|
)
|
|
Non-US
|
|
(263
|
)
|
(165
|
)
|
(245
|
)
|
|
|
|
(418
|
)
|
(344
|
)
|
(392
|
)
|
|
Non-operating items
|
|
|
|
|
|||
|
US
|
|
(128
|
)
|
(654
|
)
|
(148
|
)
|
|
Non-US
|
|
-
|
|
(112
|
)
|
(31
|
)
|
|
|
|
(128
|
)
|
(766
|
)
|
(179
|
)
|
|
RC profit (loss) before interest and tax
|
|
|
|
|
|||
|
US
|
|
(283
|
)
|
(833
|
)
|
(295
|
)
|
|
Non-US
|
|
(263
|
)
|
(277
|
)
|
(276
|
)
|
|
|
|
(546
|
)
|
(1,110
|
)
|
(571
|
)
|
|
The commentary above contains forward-looking statements and should
be read in conjunction with the cautionary statement on page
35.
|
|
|
|
First
|
|
Fourth
|
|
First
|
|
|
|
|
|
quarter
|
|
quarter
|
|
quarter
|
|
|
|
$ million
|
|
2019
|
|
2018
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other operating revenues (Note 3)
|
|
66,321
|
|
75,677
|
|
68,172
|
|
|
|
Earnings from joint ventures - after interest and
tax
|
|
185
|
|
236
|
|
293
|
|
|
|
Earnings from associates - after interest and
tax
|
|
649
|
|
425
|
|
414
|
|
|
|
Interest and other income
|
|
163
|
|
295
|
|
159
|
|
|
|
Gains on sale of businesses and fixed assets
|
|
89
|
|
252
|
|
105
|
|
|
|
Total revenues and other income
|
|
67,407
|
|
76,885
|
|
69,143
|
|
|
|
Purchases
|
|
48,272
|
|
59,019
|
|
51,512
|
|
|
|
Production and manufacturing expenses
|
|
5,356
|
|
6,173
|
|
5,438
|
|
|
|
Production and similar taxes (Note 5)
|
|
424
|
|
186
|
|
368
|
|
|
|
Depreciation, depletion and amortization (Note 4)
|
|
4,461
|
|
3,987
|
|
3,931
|
|
|
|
Impairment and losses on sale of businesses and fixed
assets
|
|
96
|
|
244
|
|
91
|
|
|
|
Exploration expense
|
|
367
|
|
457
|
|
514
|
|
|
|
Distribution and administration expenses
|
|
2,767
|
|
3,655
|
|
2,794
|
|
|
|
Profit (loss) before interest and taxation
|
|
5,664
|
|
3,164
|
|
4,495
|
|
|
|
Finance costs
|
|
867
|
|
742
|
|
553
|
|
|
|
Net
finance expense relating to pensions and other post-retirement
benefits
|
|
15
|
|
34
|
|
31
|
|
|
|
Profit (loss) before taxation
|
|
4,782
|
|
2,388
|
|
3,911
|
|
|
|
Taxation
|
|
1,783
|
|
1,617
|
|
1,380
|
|
|
|
Profit (loss) for the period
|
|
2,999
|
|
771
|
|
2,531
|
|
|
|
Attributable to
|
|
|
|
|
||||
|
BP
shareholders
|
|
2,934
|
|
766
|
|
2,469
|
|
|
|
Non-controlling
interests
|
|
65
|
|
5
|
|
62
|
|
|
|
|
|
2,999
|
|
771
|
|
2,531
|
|
|
|
|
|
|
|
|
||||
|
Earnings per share (Note 6)
|
|
|
|
|
||||
|
Profit (loss) for the period attributable to BP
shareholders
|
|
|
|
|
||||
|
Per
ordinary share (cents)
|
|
|
|
|
||||
|
Basic
|
|
14.54
|
|
3.83
|
|
12.40
|
|
|
|
Diluted
|
|
14.47
|
|
3.80
|
|
12.33
|
|
|
|
Per
ADS (dollars)
|
|
|
|
|
||||
|
Basic
|
|
0.87
|
|
0.23
|
|
0.74
|
|
|
|
Diluted
|
|
0.87
|
|
0.23
|
|
0.74
|
|
|
|
|
|
First
|
|
Fourth
|
|
First
|
|
|
|
|
|
quarter
|
|
quarter
|
|
quarter
|
|
|
|
$ million
|
|
2019
|
|
2018
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit (loss) for the period
|
|
2,999
|
|
771
|
|
2,531
|
|
|
|
Other comprehensive income
|
|
|
|
|
||||
|
Items that may be reclassified subsequently to profit or
loss
|
|
|
|
|
||||
|
Currency
translation differences
|
|
989
|
|
(937
|
)
|
531
|
|
|
|
Cash
flow hedges and costs of hedging
|
|
19
|
|
(68
|
)
|
(82
|
)
|
|
|
Share
of items relating to equity-accounted entities, net of
tax
|
|
(50
|
)
|
200
|
|
155
|
|
|
|
Income
tax relating to items that may be reclassified
|
|
(34
|
)
|
33
|
|
(90
|
)
|
|
|
|
|
924
|
|
(772
|
)
|
514
|
|
|
|
Items that will not be reclassified to profit or loss
|
|
|
|
|
||||
|
Remeasurements
of the net pension and other post-retirement benefit liability or
asset
|
|
(853
|
)
|
(651
|
)
|
865
|
|
|
|
Cash
flow hedges that will subsequently be transferred to the balance
sheet
|
|
8
|
|
(8
|
)
|
13
|
|
|
|
Income
tax relating to items that will not be reclassified
|
|
273
|
|
223
|
|
(265
|
)
|
|
|
|
|
(572
|
)
|
(436
|
)
|
613
|
|
|
|
Other comprehensive income
|
|
352
|
|
(1,208
|
)
|
1,127
|
|
|
|
Total comprehensive income
|
|
3,351
|
|
(437
|
)
|
3,658
|
|
|
|
Attributable to
|
|
|
|
|
||||
|
BP
shareholders
|
|
3,281
|
|
(444
|
)
|
3,580
|
|
|
|
Non-controlling
interests
|
|
70
|
|
7
|
|
78
|
|
|
|
|
|
3,351
|
|
(437
|
)
|
3,658
|
|
|
|
|
|
BP shareholders'
|
|
Non-controlling
|
|
Total
|
|
|
$ million
|
|
equity
|
|
interests
|
|
equity
|
|
|
At 31 December 2018
|
|
99,444
|
|
2,104
|
|
101,548
|
|
|
Adjustment on adoption of IFRS 16, net of tax(a)
|
|
(329
|
)
|
(1
|
)
|
(330
|
)
|
|
At 1 January 2019
|
|
99,115
|
|
2,103
|
|
101,218
|
|
|
|
|
|
|
|
|||
|
Total comprehensive income
|
|
3,281
|
|
70
|
|
3,351
|
|
|
Dividends
|
|
(1,435
|
)
|
(36
|
)
|
(1,471
|
)
|
|
Cash flow hedges transferred to the balance sheet, net of
tax
|
|
5
|
|
-
|
|
5
|
|
|
Repurchase of ordinary share capital
|
|
(50
|
)
|
-
|
|
(50
|
)
|
|
Share-based payments, net of tax
|
|
280
|
|
-
|
|
280
|
|
|
Share of equity-accounted entities' changes in equity, net of
tax
|
|
3
|
|
-
|
|
3
|
|
|
At 31 March 2019
|
|
101,199
|
|
2,137
|
|
103,336
|
|
|
|
|
|
|
|
|||
|
|
|
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(b)
|
|
(180
|
)
|
-
|
|
(180
|
)
|
|
At 1 January 2018
|
|
98,311
|
|
1,913
|
|
100,224
|
|
|
|
|
|
|
|
|||
|
Total comprehensive income
|
|
3,580
|
|
78
|
|
3,658
|
|
|
Dividends
|
|
(1,828
|
)
|
(13
|
)
|
(1,841
|
)
|
|
Cash flow hedges transferred to the balance sheet, net of
tax
|
|
1
|
|
-
|
|
1
|
|
|
Repurchase of ordinary share capital
|
|
(120
|
)
|
-
|
|
(120
|
)
|
|
Share-based payments, net of tax
|
|
244
|
|
-
|
|
244
|
|
|
Transactions involving non-controlling interests, net of
tax
|
|
(1
|
)
|
-
|
|
(1
|
)
|
|
At 31 March 2018
|
|
100,187
|
|
1,978
|
|
102,165
|
|
|
|
|
31 March
|
|
31 December
|
|
|
$ million
|
|
2019
|
|
2018(a)
|
|
|
Non-current assets
|
|
|
|
|
|
|
Property, plant and equipment
|
|
144,625
|
|
135,261
|
|
|
Goodwill
|
|
12,277
|
|
12,204
|
|
|
Intangible assets
|
|
16,505
|
|
17,284
|
|
|
Investments in joint ventures
|
|
8,701
|
|
8,647
|
|
|
Investments in associates
|
|
19,073
|
|
17,673
|
|
|
Other investments
|
|
1,269
|
|
1,341
|
|
|
Fixed assets
|
|
202,450
|
|
192,410
|
|
|
Loans
|
|
642
|
|
637
|
|
|
Trade and other receivables
|
|
2,111
|
|
1,834
|
|
|
Derivative financial instruments
|
|
5,265
|
|
5,145
|
|
|
Prepayments
|
|
814
|
|
1,179
|
|
|
Deferred tax assets
|
|
3,593
|
|
3,706
|
|
|
Defined benefit pension plan surpluses
|
|
5,709
|
|
5,955
|
|
|
|
|
220,584
|
|
210,866
|
|
|
Current assets
|
|
|
|
||
|
Loans
|
|
340
|
|
326
|
|
|
Inventories
|
|
21,426
|
|
17,988
|
|
|
Trade and other receivables
|
|
24,490
|
|
24,478
|
|
|
Derivative financial instruments
|
|
3,004
|
|
3,846
|
|
|
Prepayments
|
|
1,082
|
|
963
|
|
|
Current tax receivable
|
|
965
|
|
1,019
|
|
|
Other investments
|
|
134
|
|
222
|
|
|
Cash and cash equivalents
|
|
21,256
|
|
22,468
|
|
|
|
|
72,697
|
|
71,310
|
|
|
Total assets
|
|
293,281
|
|
282,176
|
|
|
Current liabilities
|
|
|
|
||
|
Trade and other payables
|
|
46,749
|
|
46,265
|
|
|
Derivative financial instruments
|
|
2,340
|
|
3,308
|
|
|
Accruals
|
|
3,924
|
|
4,626
|
|
|
Lease liabilities
|
|
2,099
|
|
44
|
|
|
Finance debt
|
|
11,480
|
|
9,329
|
|
|
Current tax payable
|
|
2,348
|
|
2,101
|
|
|
Provisions
|
|
2,332
|
|
2,564
|
|
|
|
|
71,272
|
|
68,237
|
|
|
Non-current liabilities
|
|
|
|
||
|
Other payables
|
|
13,898
|
|
13,830
|
|
|
Derivative financial instruments
|
|
5,294
|
|
5,625
|
|
|
Accruals
|
|
547
|
|
575
|
|
|
Lease liabilities
|
|
8,195
|
|
623
|
|
|
Finance debt
|
|
54,510
|
|
55,803
|
|
|
Deferred tax liabilities
|
|
9,770
|
|
9,812
|
|
|
Provisions
|
|
17,773
|
|
17,732
|
|
|
Defined benefit pension plan and other post-retirement benefit plan
deficits
|
|
8,686
|
|
8,391
|
|
|
|
|
118,673
|
|
112,391
|
|
|
Total liabilities
|
|
189,945
|
|
180,628
|
|
|
Net assets
|
|
103,336
|
|
101,548
|
|
|
Equity
|
|
|
|
||
|
BP shareholders' equity
|
|
101,199
|
|
99,444
|
|
|
Non-controlling interests
|
|
2,137
|
|
2,104
|
|
|
Total equity
|
|
103,336
|
|
101,548
|
|
|
|
|
First
|
|
Fourth
|
|
First
|
|
||
|
|
|
quarter
|
|
quarter
|
|
quarter
|
|
||
|
$ million
|
|
2019
|
|
2018
|
|
2018
|
|
||
|
Operating activities
|
|
|
|
|
|||||
|
Profit (loss) before taxation
|
|
4,782
|
|
2,388
|
|
3,911
|
|
||
|
Adjustments
to reconcile profit (loss) before taxation to net cash provided by
operating activities
|
|
|
|
|
|||||
|
Depreciation,
depletion and amortization and exploration expenditure written
off
|
|
4,745
|
|
4,338
|
|
4,357
|
|
||
|
Impairment
and (gain) loss on sale of businesses and fixed assets
|
|
7
|
|
(8
|
)
|
(14
|
)
|
||
|
Earnings
from equity-accounted entities, less dividends
received
|
|
(589
|
)
|
(30
|
)
|
(536
|
)
|
||
|
Net
charge for interest and other finance expense, less net interest
paid
|
|
88
|
|
222
|
|
80
|
|
||
|
Share-based
payments
|
|
297
|
|
126
|
|
237
|
|
||
|
Net
operating charge for pensions and other post-retirement benefits,
less contributions and benefit payments for unfunded
plans
|
|
(77
|
)
|
(60
|
)
|
(202
|
)
|
||
|
Net
charge for provisions, less payments
|
|
(116
|
)
|
617
|
|
144
|
|
||
|
Movements
in inventories and other current and non-current assets and
liabilities
|
|
(2,695
|
)
|
778
|
|
(3,398
|
)
|
||
|
Income
taxes paid
|
|
(1,146
|
)
|
(1,542
|
)
|
(933
|
)
|
||
|
Net cash provided by operating activities
|
|
5,296
|
|
6,829
|
|
3,646
|
|
||
|
Investing activities
|
|
|
|
|
|||||
|
Expenditure
on property, plant and equipment, intangible and other
assets
|
|
(3,695
|
)
|
(5,962
|
)
|
(3,586
|
)
|
||
|
Acquisitions, net of cash acquired
|
|
(1,795
|
)
|
(6,379
|
)
|
-
|
|
||
|
Investment in joint ventures
|
|
-
|
|
(290
|
)
|
(39
|
)
|
||
|
Investment in associates
|
|
(145
|
)
|
(265
|
)
|
(338
|
)
|
||
|
Total cash capital expenditure
|
|
(5,635
|
)
|
(12,896
|
)
|
(3,963
|
)
|
||
|
Proceeds from disposal of fixed assets
|
|
235
|
|
660
|
|
85
|
|
||
|
Proceeds from disposal of businesses, net of cash
disposed
|
|
365
|
|
1,758
|
|
82
|
|
||
|
Proceeds from loan repayments
|
|
55
|
|
619
|
|
9
|
|
||
|
Net cash used in investing activities
|
|
(4,980
|
)
|
(9,859
|
)
|
(3,787
|
)
|
||
|
Financing
activities(a)
|
|
|
|
|
|||||
|
Net issue (repurchase) of shares
|
|
(45
|
)
|
(16
|
)
|
(110
|
)
|
||
|
Lease liability payments
|
|
(617
|
)
|
(11
|
)
|
(10
|
)
|
||
|
Proceeds from long-term financing
|
|
2,124
|
|
2,118
|
|
122
|
|
||
|
Repayments of long-term financing
|
|
(2,640
|
)
|
(1,795
|
)
|
(1,147
|
)
|
||
|
Net increase (decrease) in short-term debt
|
|
1,089
|
|
889
|
|
(349
|
)
|
||
|
Net increase (decrease) in non-controlling interests
|
|
-
|
|
-
|
|
(1
|
)
|
||
|
Dividends paid - BP shareholders
|
|
(1,435
|
)
|
(1,733
|
)
|
(1,829
|
)
|
||
|
-
non-controlling interests
|
|
(36
|
)
|
(41
|
)
|
(13
|
)
|
||
|
Net cash provided by (used in) financing activities
|
|
(1,560
|
)
|
(589
|
)
|
(3,337
|
)
|
||
|
Currency translation differences relating to cash and cash
equivalents
|
|
32
|
|
(105
|
)
|
145
|
|
||
|
Increase (decrease) in cash and cash equivalents
|
|
(1,212
|
)
|
(3,724
|
)
|
(3,333
|
)
|
||
|
Cash and cash equivalents at beginning of period
|
|
22,468
|
|
26,192
|
|
25,575
|
|
||
|
Cash and cash equivalents at end of period
|
|
21,256
|
|
22,468
|
|
22,242
|
|
||
|
|
|
|
|
|
|
Adjustment
|
|
|
|
|
31 December
|
|
1 January
|
|
on adoption
|
|
|
$ million
|
|
2018
|
|
2019
|
|
of IFRS 16
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
Property,
plant and equipment
|
|
135,261
|
|
143,950
|
|
8,689
|
|
|
Trade
and other receivables
|
|
1,834
|
|
2,159
|
|
325
|
|
|
Prepayments
|
|
1,179
|
|
849
|
|
(330
|
)
|
|
Deferred
tax assets
|
|
3,706
|
|
3,736
|
|
30
|
|
|
Current assets
|
|
|
|
|
|||
|
Trade
and other receivables
|
|
24,478
|
|
24,673
|
|
195
|
|
|
Prepayments
|
|
963
|
|
872
|
|
(91
|
)
|
|
Current liabilities
|
|
|
|
|
|||
|
Trade
and other payables
|
|
46,265
|
|
46,209
|
|
(56
|
)
|
|
Accruals
|
|
4,626
|
|
4,578
|
|
(48
|
)
|
|
Lease
liabilities
|
|
44
|
|
2,196
|
|
2,152
|
|
|
Finance
debt
|
|
9,329
|
|
9,329
|
|
-
|
|
|
Provisions
|
|
2,564
|
|
2,547
|
|
(17
|
)
|
|
Non-current liabilities
|
|
|
|
|
|||
|
Other
payables
|
|
13,830
|
|
14,013
|
|
183
|
|
|
Accruals
|
|
575
|
|
548
|
|
(27
|
)
|
|
Lease
liabilities
|
|
623
|
|
7,704
|
|
7,081
|
|
|
Finance
debt
|
|
55,803
|
|
55,803
|
|
-
|
|
|
Deferred
tax liabilities
|
|
9,812
|
|
9,767
|
|
(45
|
)
|