BP p.l.c. Group results
Fourth quarter and full year 2017
For a printer friendly copy of this announcement, please click on
the link below to open a PDF version:
http://www.rns-pdf.londonstockexchange.com/rns/9787D_-2018-2-5.pdf
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Top of
page 1
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Full year
Highlights
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Strong delivery and growth across BP
– Underlying profit up 139%
– Organic cash flows back in balance
– Downstream underlying profit up 24%
– Upstream production up 12%
– Reserves replacement ratio 143% for BP group
– Share buybacks, offsetting scrip dilution,
restarted
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● Underlying replacement cost
profit* was $6.2 billion for
full year 2017 and $2.1 billion for the fourth quarter, compared
with $2.6 billion and $400 million for full year and fourth quarter
2016 respectively.
● Operating cash flow
for 2017, excluding Gulf of Mexico oil
spill payments*, was $24.1 billion, compared with $17.6 billion in
2016. Gulf of Mexico oil spill payments in 2017 were $5.2
billion, compared with $6.9 billion in 2016.
● Downstream earnings
were very strong with underlying
replacement cost profit of $7.0 billion, 24% higher than
2016.
● Operational reliability
was high, with refining availability*
and Upstream BP-operated plant reliability* both
95%.
● Seven new major projects*
delivered, boosting oil and gas
production. Upstream production, excluding BP’s share of
Rosneft production, was 12% higher than 2016, the highest since
2010. Including Rosneft, production was 3.6 million barrels of oil
equivalent a day, 10% higher than 2016. Oil and gas realizations
were 25% higher.
● Exploration delivered the most successful year for BP since 2004, with
around 1 billion boe resources discovered.
● Dividend unchanged at 10 cents per
share.
● BP began share buybacks
in the fourth quarter,
spending $343 million, fully offsetting the dilution from
scrip dividends issued in the third quarter.
● Non-operating items
in the fourth quarter, which are
excluded from underlying profit, included a $0.9 billion charge for
US tax changes and a $1.7 billion post-tax charge relating
to a further provision for claims associated with the oil
spill.
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Year on year
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See
chart on PDF
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Bob Dudley – Group chief
executive:
“2017 was one of the strongest years in BP’s recent
history. We delivered operationally and financially, with very
strong earnings in the Downstream, Upstream production up 12%, and
our finances rebalanced. And we did all this while maintaining safe
and reliable operations.
“We enter the second year of our five-year plan with real
momentum, increasingly confident that we can continue to deliver
growth across our business, improving cash flows and returns for
shareholders out to 2021 and beyond.
“At the same time,
we are embracing the energy transition, seeking new opportunities
in a changing, lower-carbon world.”
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Financial summary
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Fourth
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Third
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Fourth
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quarter
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quarter
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quarter
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Year
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Year
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$ million
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2017
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2017
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2016
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2017
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2016
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Profit for the period(a)
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27
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1,769
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497
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3,389
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115
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Inventory holding (gains) losses*, net of tax
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(610)
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(390)
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(425)
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(628)
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(1,114)
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RC profit (loss)*
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(583)
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1,379
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72
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2,761
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(999)
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Net (favourable) adverse impact of non-operating
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|
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items* and fair value accounting effects*,
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net of tax
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2,690
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486
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328
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3,405
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3,584
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Underlying RC profit
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2,107
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1,865
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400
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6,166
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2,585
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RC profit (loss) per ordinary share (cents)*
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(2.94)
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6.98
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0.38
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14.02
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(5.33)
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RC profit (loss) per ADS (dollars)
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(0.18)
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0.42
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0.02
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0.84
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(0.32)
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Underlying RC profit per ordinary share (cents)*
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10.64
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9.44
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2.11
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31.31
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13.79
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Underlying RC profit per ADS (dollars)
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0.64
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0.57
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0.13
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1.88
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0.83
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(a)
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Profit
attributable to BP shareholders.
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* See definitions in the Glossary on page 30. RC profit (loss),
underlying RC profit, operating cash flow excluding Gulf of Mexico
oil spill payments and organic capital expenditure are non-GAAP
measures.
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The commentary above and following should be read in conjunction
with the cautionary statement on page 34.
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Earnings
For the
full year, underlying replacement cost (RC) profit was $6,166
million, compared with $2,585 million in 2016. Underlying RC profit
is after adjusting for a net charge for non-operating items of
$3,309 million and net adverse fair value accounting effects of $96
million (both on a post-tax basis). RC profit was $2,761 million
for the full year, compared with a loss of $999 million a year
ago.
For the
fourth quarter, underlying RC profit was $2,107 million compared
with $400 million for the same period in 2016. Underlying RC profit
is after adjusting for a net charge for non-operating items of
$2,515 million and net adverse fair value accounting effects of
$175 million (both on a post-tax basis). RC loss was $583 million
for the fourth quarter, compared with a profit of $72 million for
the same period in 2016.
BP’s
profit for the fourth quarter and full year was $27 million and
$3,389 million respectively, compared with $497 million and $115
million for the same periods in 2016.
See
further information on page 4.
Depreciation, depletion and amortization
The
charge for depreciation, depletion and amortization was $15.6
billion in 2017, compared with $14.5 billion in 2016. In 2018, we
expect the charge to be higher than 2017.
Non-operating items
Non-operating
items amounted to a charge of $2,325 million pre-tax and
$2,515 million post-tax for the quarter and a charge of
$3,622 million pre-tax and $3,309 million post-tax for
the full year. The post-tax non-operating charge for the fourth
quarter includes a charge of $1.7 billion relating to business
economic loss and other claims associated with the Gulf of Mexico
oil spill (see Note 2 on page 17) and a $0.9 billion deferred tax
charge following the change in the US tax rate. See further
information on page 25.
Effective tax rate
The
effective tax rate (ETR) on RC profit or loss* for the fourth
quarter and full year was significantly impacted by the effect of
non-operating items and therefore it is not a meaningful
measure.
The
adjusted ETR* is calculated by eliminating the impact of
non-operating items, which for the fourth quarter includes a
one-off deferred tax charge in respect of the revaluation of
deferred tax assets and liabilities following the reduction in the
US federal corporate income tax rate from 35% to 21% enacted in
December 2017; fair value accounting effects; and the impact of a
reduction in the UK supplementary tax charge in the third quarter
of 2016.
The
adjusted ETR for the fourth quarter and full year was 27% and 38%
respectively, compared with 10% and 23% for the same periods in
2016. The adjusted ETR for the fourth quarter 2017 reflects a
benefit from the reassessment of the recognition of deferred tax
assets. The adjusted ETR for the fourth quarter 2016 was impacted
by a high proportion of equity-accounted income (which is reported
net of tax in the income statement) within RC profit, and reflected
a benefit from the reassessment of the recognition of deferred tax
assets and other items, partly offset by charges for foreign
exchange impacts.
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The
adjusted ETR for the full year is higher than last year
predominantly due to changes in the geographical mix of profits
notably the impact of the renewal of our interest in the Abu Dhabi
onshore oil concession. In the current environment, and assuming no
further reassessment of the recognition of deferred tax assets, the
adjusted ETR in 2018 is expected to be above 40%. ETR on RC profit
or loss and adjusted ETR are non-GAAP measures.
Dividend
BP
today announced a quarterly dividend of 10.00 cents per
ordinary share ($0.600 per ADS), which is expected to be paid on
29 March 2018. The corresponding amount in sterling will be
announced on 19 March 2018. See page 22 for further
information.
Share buybacks
BP
recommenced a share buyback programme in the fourth quarter to
offset the dilution of the scrip issue and repurchased 51 million
ordinary shares at a cost of $343 million, including fees and stamp
duty, during the fourth quarter of 2017.
Operating cash flow*
Excluding
post-tax amounts related to the Gulf of Mexico oil spill, operating
cash flow* for the fourth quarter and full year was
$6.2 billion and $24.1 billion respectively, compared
with $4.5 billion and $17.6 billion for the same periods
in 2016. Including amounts relating to the Gulf of Mexico oil
spill, operating cash flow for the fourth quarter and full year was
$5.9 billion and $18.9 billion respectively, compared
with $2.4 billion and $10.7 billion for the same periods
in 2016.
Capital expenditure*
Organic
capital expenditure* for the fourth quarter and full year was
$4.6 billion and $16.5 billion respectively, compared
with $4.5 billion and $16.7 billion for the same periods
in 2016. In 2018, we expect organic capital expenditure to be in
the range of $15-16 billion.
Inorganic
capital expenditure* for the fourth quarter and full year was
$0.2 billion and $1.3 billion respectively, compared with
$0.4 billion, and $0.8 billion for the same periods in
2016.
See page 24 for further information.
Divestment and other proceeds
Total
divestment and other proceeds for the year were $4.3 billion
including proceeds of $0.8 billion received in relation to the
initial public offering of BP Midstream Partners LP’s common
units. Divestment proceeds* were $2.5 billion for the fourth
quarter and $3.4 billion for the full year, compared with
$0.5 billion and $2.6 billion for the same periods in
2016. In 2018, divestments are expected to be in the range of $2-3
billion.
Net debt*
Net
debt at 31 December 2017 was $37.8 billion, compared with
$35.5 billion a year ago. The net debt ratio* at 31 December
2017 was 27.4%, compared with 26.8% a year ago. We continue to
target a net debt ratio in the range of 20-30%. Net debt and the
net debt ratio are non-GAAP measures. See page 23 for more
information.
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Reserves replacement ratio*
The
reserves replacement ratio on a combined basis of subsidiaries and
equity-accounted entities was estimated at 143%(a) for the year.
(a) Includes estimated
reserves data for Rosneft. The reserves replacement ratio will be
finalized and reported in BP Annual Report and Form
20-F 2017.
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Brian Gilvary – Chief
financial officer:
“We had strong delivery and growth across BP in 2017. The
full-year underlying result was more than double a year earlier,
our organic cash flows are back in balance and our financial frame
remains resilient. Our share buyback programme in the fourth
quarter offset the dilution from scrip dividends issued in
September and our intent remains to offset any ongoing scrip
dilution through further buybacks over time.”
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The commentary above should be read in conjunction with the
cautionary statement on page 34.
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Fourth
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Third
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Fourth
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quarter
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quarter
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quarter
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Year
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Year
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$ million
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2017
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2017
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2016
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2017
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2016
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Underlying RC profit before interest and tax*
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Upstream
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2,223
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1,562
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400
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5,865
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(542)
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Downstream
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1,474
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2,338
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877
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6,967
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5,634
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Rosneft
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321
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137
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135
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836
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567
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Other
businesses and corporate
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(394)
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(398)
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(424)
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(1,598)
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(1,238)
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Consolidation
adjustment – UPII*
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(149)
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(130)
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(132)
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(212)
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(196)
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Underlying
RC profit before interest and tax
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3,475
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3,509
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856
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11,858
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4,225
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Finance
costs and net finance expense relating
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to
pensions and other post-retirement benefits
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(550)
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(444)
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(359)
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(1,801)
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(1,371)
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Taxation
on an underlying RC basis
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(782)
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(1,212)
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(51)
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(3,812)
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(212)
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Non-controlling
interests
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(36)
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12
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(46)
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(79)
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(57)
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Underlying
RC profit attributable to BP
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|
|
|
|
|
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shareholders
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2,107
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1,865
|
400
|
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6,166
|
2,585
|
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Fourth
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Third
|
Fourth
|
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quarter
|
quarter
|
quarter
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Year
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Year
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$ million
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2017
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2017
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2016
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2017
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2016
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RC profit (loss) before interest and tax*
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|
|
|
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|
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Upstream
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1,928
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1,242
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692
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5,221
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574
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Downstream
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1,773
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2,175
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899
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7,221
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5,162
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Rosneft
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321
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137
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158
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836
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590
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Other
businesses and corporate(a)
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(2,833)
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(460)
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(1,117)
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(4,445)
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(8,157)
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Consolidation
adjustment – UPII
|
|
(149)
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(130)
|
(132)
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|
(212)
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(196)
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RC
profit (loss) before interest and tax
|
|
1,040
|
2,964
|
500
|
|
8,621
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(2,027)
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Finance
costs and net finance expense relating
|
|
|
|
|
|
|
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to
pensions and other post-retirement benefits
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(674)
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(566)
|
(484)
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|
(2,294)
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(1,865)
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Taxation
on a RC basis
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|
(913)
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(1,031)
|
102
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|
(3,487)
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2,950
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Non-controlling
interests
|
|
(36)
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12
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(46)
|
|
(79)
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(57)
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RC profit (loss) attributable to BP shareholders
|
|
(583)
|
1,379
|
72
|
|
2,761
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(999)
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Inventory
holding gains (losses)
|
|
816
|
557
|
601
|
|
853
|
1,597
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Taxation
(charge) credit on inventory holding
|
|
|
|
|
|
|
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gains
and losses
|
|
(206)
|
(167)
|
(176)
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|
(225)
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(483)
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Profit
for the period attributable to
|
|
|
|
|
|
|
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BP
shareholders
|
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27
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1,769
|
497
|
|
3,389
|
115
|
(a)
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Includes
costs related to the Gulf of Mexico oil spill. See page 11 and also
Note 2 from page 17 for further information on the accounting for
the Gulf of Mexico oil spill.
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Strategic progress
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Financial framework
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Upstream
2017
oil and gas production, excluding Rosneft, was 12% higher than in
2016, the highest since 2010. Upstream unit production costs* were
16% lower, benefiting from production growth and continued cost
discipline.
Zohr in
Egypt completed BP’s programme of seven major project*
start-ups in 2017. Together with 2016 start-ups, the projects
contribute more than 500mboe/d new net production capacity and are
expected to deliver operating cash margins* around 35% greater than
Upstream’s assets in 2015.
In the
quarter BP accessed significant new exploration acreage in the
Santos basin of Brazil and in Côte d’Ivoire with Kosmos
Energy. BP announced six exploration discoveries in 2017 –
the cumulative discovery of around 1 billion boe of resources was
BP’s largest since 2004.
Downstream
Fuels marketing earnings increased by more than 10% in 2017.
Premium fuel volumes grew by 6% and BP’s convenience
partnership model increased to 1,100 sites worldwide. More than 120
BP retail sites in Mexico were operational at year end. In
lubricants, BP delivered premium brand growth and increased
earnings from growth markets.
In manufacturing, both refining and petrochemicals grew earnings
with record levels of advantaged feedstock processed in
refining.
Advancing the energy transition
BP acquired a 43% interest in Lightsource, Europe’s largest
solar development company, supporting its rapid expansion
worldwide. Other progress included BP enhancing its biofuels
business in Brazil through an ethanol storage joint venture,
forming a partnership with Aria Energy to expand its renewable gas
portfolio in the US and, in January, BP Ventures investing in the
electric vehicle fast-charging company Freewire.
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Operating cash flow,
excluding Gulf of Mexico payments*, was $24.1 billion for full year
2017. This compares with $17.6 billion for full year
2016.
Organic capital expenditure*
for 2017 was $16.5 billion, in the range of $15-17 billion
previously indicated. BP expects 2018 organic capital
expenditure to be in the range of $15-16 billion.
Operating
cash flow excluding Gulf of Mexico payments in 2017 exceeded
organic capital expenditure, cash dividend payments to BP
shareholders and share buybacks by $1.1 billion.
Total
divestment and other
proceeds for the year were $4.3 billion including proceeds of
$0.8 billion received in relation to the initial public offering of
BP Midstream Partners LP’s common units. Divestment proceeds*
were $3.4 billion for the full year, including the proceeds
received in the fourth quarter for the sale of BP’s interest
in the SECCO joint venture in China. In 2018, divestments are
expected to be in the range of $2-3 billion.
Gulf of Mexico oil spill payments were $0.3 billion in the
fourth quarter, bringing the total for 2017 to $5.2 billion. Cash
outflows in 2018 are expected to be approximately $3 billion,
weighted to the first half of the year.
Gearing* was 27.4% at the end of 2017. BP continues to
target a gearing range of 20-30%.
Safety
The
3-year average for both Tier 1 process safety events* and reported
recordable injury frequency* remains on an improving trend. Safety
remains a core value and our number one priority. We are committed
to continuous improvement to drive enhanced
performance.
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Operating metrics
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Year 2017 (vs. Year
2016)
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Financial metrics
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Year 2017 (vs. Year
2016)
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Tier 1 process safety events
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18
(+2)
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Underlying RC profit
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$6.2bn
(+$3.6bn)
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Reported recordable injury frequency
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0.22
(+3%)
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Operating cash flow excluding Gulf of Mexico oil spill
payments
|
|
$24.1bn
(+$6.5bn)
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Group production
|
|
3,595mboe/d
(+10%)
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Organic capital expenditure
|
|
$16.5bn
(-$0.2bn)
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Upstream production (excludes
Rosneft segment)
|
|
2,466mboe/d
(+12%)
|
|
Gulf of Mexico oil spill payments
|
|
$5.2bn
(-$1.7bn)
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Upstream unit production costs
|
|
$7.11/boe
(-16%)
|
|
Divestment proceeds
|
|
$3.4bn
(+$0.8bn)
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BP-operated Upstream operating efficiency*
|
|
80.5%
|
|
Net debt ratio (gearing)
|
|
27.4%
(+0.6)
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BP-operated Upstream plant reliability*(a)
|
|
94.7%
(-0.6)
|
|
Dividend per ordinary share(b)
|
|
10.00 cents
(–)
|
Refining availability*
|
|
95.3%
(–)
|
|
Return on average capital employed*(c)
|
|
5.8%
(+3.0)
|
(a)
|
BP-operated
Upstream plant reliability has been included as an operating metric
this quarter. It is more comparable with the equivalent metric
disclosed for the Downstream, which is ‘Refining
availability’. BP-operated Upstream plant reliability was
94.9% for the first quarter 2017, 95.2% for the six months ended 30
June 2017 and 94.5% for the nine months ended 30 September
2017.
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(b)
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Represents
dividend announced in the quarter (vs. prior year
quarter).
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(c)
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Return
on average capital employed is included as this is a full year
report.
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The commentary above contains forward-looking statements and should
be read in conjunction with the cautionary statement on
page 34.
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|
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Fourth
|
Third
|
Fourth
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
$ million
|
|
2017
|
2017
|
2016
|
|
2017
|
2016
|
Profit before interest and tax
|
|
1,928
|
1,255
|
711
|
|
5,229
|
634
|
Inventory holding (gains) losses*
|
|
–
|
(13)
|
(19)
|
|
(8)
|
(60)
|
RC profit before interest and tax
|
|
1,928
|
1,242
|
692
|
|
5,221
|
574
|
Net (favourable) adverse impact of
|
|
|
|
|
|
|
|
non-operating items* and fair value
|
|
|
|
|
|
|
|
accounting effects*
|
|
295
|
320
|
(292)
|
|
644
|
(1,116)
|
Underlying RC profit (loss) before interest
|
|
|
|
|
|
|
|
and tax*(a)
|
|
2,223
|
1,562
|
400
|
|
5,865
|
(542)
|
(a)
|
See
page 7 for a reconciliation to segment RC profit before interest
and tax by region.
|
The commentary above contains forward-looking statements and should
be read in conjunction with the cautionary statement on
page 34.
|
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
$ million
|
|
2017
|
2017
|
2016
|
|
2017
|
2016
|
Underlying RC profit (loss) before interest and tax
|
|
|
|
|
|
|
|
US
|
|
629
|
264
|
(147)
|
|
1,238
|
(1,270)
|
Non-US
|
|
1,594
|
1,298
|
547
|
|
4,627
|
728
|
|
|
2,223
|
1,562
|
400
|
|
5,865
|
(542)
|
Non-operating items
|
|
|
|
|
|
|
|
US(a)
|
|
(187)
|
(97)
|
21
|
|
(330)
|
127
|
Non-US(b)(c)
|
|
43
|
(49)
|
615
|
|
(341)
|
1,626
|
|
|
(144)
|
(146)
|
636
|
|
(671)
|
1,753
|
Fair value accounting effects
|
|
|
|
|
|
|
|
US
|
|
8
|
(100)
|
(274)
|
|
192
|
(379)
|
Non-US
|
|
(159)
|
(74)
|
(70)
|
|
(165)
|
(258)
|
|
|
(151)
|
(174)
|
(344)
|
|
27
|
(637)
|
RC profit (loss) before interest and tax
|
|
|
|
|
|
|
|
US
|
|
450
|
67
|
(400)
|
|
1,100
|
(1,522)
|
Non-US
|
|
1,478
|
1,175
|
1,092
|
|
4,121
|
2,096
|
|
|
1,928
|
1,242
|
692
|
|
5,221
|
574
|
Exploration expense
|
|
|
|
|
|
|
|
US
|
|
27
|
190
|
511
|
|
282
|
693
|
Non-US(c)(d)
|
|
494
|
107
|
(197)
|
|
1,798
|
1,028
|
|
|
521
|
297
|
314
|
|
2,080
|
1,721
|
Of which: Exploration expenditure written off(c)(d)
|
|
372
|
217
|
166
|
|
1,603
|
1,274
|
Production (net of
royalties)(e)
|
|
|
|
|
|
|
|
Liquids* (mb/d)
|
|
|
|
|
|
|
|
US
|
|
430
|
408
|
406
|
|
426
|
391
|
Europe
|
|
117
|
123
|
122
|
|
119
|
120
|
Rest of World
|
|
796
|
809
|
650
|
|
811
|
698
|
|
|
1,344
|
1,341
|
1,178
|
|
1,356
|
1,208
|
Natural gas (mmcf/d)
|
|
|
|
|
|
|
|
US
|
|
1,759
|
1,703
|
1,675
|
|
1,659
|
1,656
|
Europe
|
|
186
|
217
|
268
|
|
235
|
264
|
Rest of World
|
|
5,231
|
4,581
|
3,903
|
|
4,543
|
3,876
|
|
|
7,176
|
6,502
|
5,846
|
|
6,436
|
5,796
|
Total hydrocarbons* (mboe/d)
|
|
|
|
|
|
|
|
US
|
|
734
|
702
|
694
|
|
712
|
676
|
Europe
|
|
150
|
161
|
168
|
|
160
|
165
|
Rest of World
|
|
1,698
|
1,599
|
1,323
|
|
1,594
|
1,366
|
|
|
2,581
|
2,462
|
2,186
|
|
2,466
|
2,208
|
Average realizations*(f)
|
|
|
|
|
|
|
|
Total liquids(g)
($/bbl)
|
|
56.16
|
47.45
|
43.89
|
|
49.92
|
38.27
|
Natural gas ($/mcf)
|
|
3.23
|
2.89
|
3.08
|
|
3.19
|
2.84
|
Total hydrocarbons ($/boe)
|
|
37.48
|
33.23
|
31.40
|
|
35.38
|
28.24
|
(a)
|
Fourth
quarter and full year 2017 include an impairment charge relating to
the US Lower 48 business, partially offset by gains associated with
asset divestments.
|
(b)
|
Fourth
quarter and full year 2017 include BP’s share of an
impairment reversal recognized by the Angola LNG equity-accounted
entity, partially offset by other items. In addition, full year
2017 includes an impairment charge arising following the
announcement of the agreement to sell the Forties Pipeline System
business to INEOS. Fourth quarter and full year 2016 principally
relate to impairment reversals in India, Angola and the North
Sea.
|
(c)
|
See
page 25 for more information on non-operating items.
|
(d)
|
Full
year 2017 includes the write-off of exploration well and lease
costs in Angola and the write-off of exploration wells in
Egypt.
|
(e)
|
Includes
BP’s share of production of equity-accounted entities in the
Upstream segment.
|
(f)
|
Realizations
are based on sales by consolidated subsidiaries only – this
excludes equity-accounted entities.
|
(g)
|
Includes
condensate, natural gas liquids and bitumen.
|
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
$ million
|
|
2017
|
2017
|
2016
|
|
2017
|
2016
|
Profit before interest and tax
|
|
2,492
|
2,695
|
1,457
|
|
7,979
|
6,646
|
Inventory holding (gains) losses*
|
|
(719)
|
(520)
|
(558)
|
|
(758)
|
(1,484)
|
RC profit before interest and tax
|
|
1,773
|
2,175
|
899
|
|
7,221
|
5,162
|
Net (favourable) adverse impact of
|
|
|
|
|
|
|
|
non-operating items* and fair value
|
|
|
|
|
|
|
|
accounting effects*
|
|
(299)
|
163
|
(22)
|
|
(254)
|
472
|
Underlying RC profit before interest and tax*(a)
|
|
1,474
|
2,338
|
877
|
|
6,967
|
5,634
|
(a)
|
See
page 9 for a reconciliation to segment RC profit before interest
and tax by region and by business.
|
The commentary above contains forward-looking statements and should
be read in conjunction with the cautionary statement on
page 34.
|
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
$ million
|
|
2017
|
2017
|
2016
|
|
2017
|
2016
|
Underlying RC profit before interest and tax -
|
|
|
|
|
|
|
|
by region
|
|
|
|
|
|
|
|
US
|
|
501
|
640
|
(371)
|
|
1,978
|
853
|
Non-US
|
|
973
|
1,698
|
1,248
|
|
4,989
|
4,781
|
|
|
1,474
|
2,338
|
877
|
|
6,967
|
5,634
|
Non-operating items
|
|
|
|
|
|
|
|
US
|
|
(25)
|
(39)
|
(122)
|
|
(48)
|
(48)
|
Non-US(a)
|
|
407
|
(16)
|
45
|
|
437
|
24
|
|
|
382
|
(55)
|
(77)
|
|
389
|
(24)
|
Fair value accounting effects
|
|
|
|
|
|
|
|
US
|
|
3
|
20
|
22
|
|
(29)
|
(321)
|
Non-US
|
|
(86)
|
(128)
|
77
|
|
(106)
|
(127)
|
|
|
(83)
|
(108)
|
99
|
|
(135)
|
(448)
|
RC profit before interest and tax
|
|
|
|
|
|
|
|
US
|
|
479
|
621
|
(471)
|
|
1,901
|
484
|
Non-US
|
|
1,294
|
1,554
|
1,370
|
|
5,320
|
4,678
|
|
|
1,773
|
2,175
|
899
|
|
7,221
|
5,162
|
Underlying RC profit before interest and
tax -
|
|
|
|
|
|
|
|
by business(b)(c)
|
|
|
|
|
|
|
|
Fuels
|
|
976
|
1,788
|
417
|
|
4,872
|
3,727
|
Lubricants
|
|
375
|
356
|
357
|
|
1,479
|
1,523
|
Petrochemicals
|
|
123
|
194
|
103
|
|
616
|
384
|
|
|
1,474
|
2,338
|
877
|
|
6,967
|
5,634
|
Non-operating items and fair value
|
|
|
|
|
|
|
|
accounting effects(d)
|
|
|
|
|
|
|
|
Fuels
|
|
(202)
|
(154)
|
103
|
|
(193)
|
(390)
|
Lubricants
|
|
(14)
|
(3)
|
(81)
|
|
(22)
|
(84)
|
Petrochemicals(a)
|
|
515
|
(6)
|
–
|
|
469
|
2
|
|
|
299
|
(163)
|
22
|
|
254
|
(472)
|
RC profit before interest and tax(b)(c)
|
|
|
|
|
|
|
|
Fuels
|
|
774
|
1,634
|
520
|
|
4,679
|
3,337
|
Lubricants
|
|
361
|
353
|
276
|
|
1,457
|
1,439
|
Petrochemicals
|
|
638
|
188
|
103
|
|
1,085
|
386
|
|
|
1,773
|
2,175
|
899
|
|
7,221
|
5,162
|
|
|
|
|
|
|
|
|
BP average refining marker margin (RMM)* ($/bbl)
|
|
14.4
|
16.3
|
11.4
|
|
14.1
|
11.8
|
Refinery throughputs (mb/d)
|
|
|
|
|
|
|
|
US
|
|
714
|
737
|
604
|
|
713
|
646
|
Europe
|
|
741
|
768
|
806
|
|
773
|
803
|
Rest of World
|
|
243
|
240
|
234
|
|
216
|
236
|
|
|
1,698
|
1,745
|
1,644
|
|
1,702
|
1,685
|
Refining availability* (%)
|
|
96.1
|
95.3
|
94.9
|
|
95.3
|
95.3
|
Marketing sales of refined products (mb/d)
|
|
|
|
|
|
|
|
US
|
|
1,127
|
1,186
|
1,146
|
|
1,151
|
1,134
|
Europe
|
|
1,132
|
1,204
|
1,166
|
|
1,140
|
1,179
|
Rest of World
|
|
542
|
480
|
540
|
|
508
|
512
|
|
|
2,801
|
2,870
|
2,852
|
|
2,799
|
2,825
|
Trading/supply sales of refined products
|
|
3,549
|
3,088
|
2,836
|
|
3,149
|
2,775
|
Total sales volumes of refined products
|
|
6,350
|
5,958
|
5,688
|
|
5,948
|
5,600
|
Petrochemicals production (kte)
|
|
|
|
|
|
|
|
US
|
|
641
|
617
|
546
|
|
2,428
|
2,564
|
Europe
|
|
1,559
|
1,285
|
930
|
|
5,462
|
3,729
|
Rest of World
|
|
1,306
|
2,025
|
2,071
|
|
7,405
|
7,934
|
|
|
3,506
|
3,927
|
3,547
|
|
15,295
|
14,227
|
(a)
|
Fourth
quarter and full year 2017 gain primarily reflects the disposal of
our shareholding in the SECCO joint venture.
|
(b)
|
Segment-level
overhead expenses are included in the fuels business
result.
|
(c)
|
Results
from petrochemicals at our Gelsenkirchen and Mülheim sites in
Germany is reported in the fuels business.
|
(d)
|
For
Downstream, fair value accounting effects arise solely in the fuels
business.
|
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
$ million
|
|
2017(a)
|
2017
|
2016
|
|
2017(a)
|
2016
|
Profit before interest and tax(b)
|
|
418
|
161
|
182
|
|
923
|
643
|
Inventory holding (gains) losses*
|
|
(97)
|
(24)
|
(24)
|
|
(87)
|
(53)
|
RC profit before interest and tax
|
|
321
|
137
|
158
|
|
836
|
590
|
Net charge (credit) for non-operating items*
|
|
–
|
–
|
(23)
|
|
–
|
(23)
|
Underlying RC profit before interest and tax*
|
|
321
|
137
|
135
|
|
836
|
567
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
|
2017(a)
|
2017
|
2016
|
|
2017(a)
|
2016
|
Production (net of royalties) (BP
share)
|
|
|
|
|
|
|
|
Liquids* (mb/d)
|
|
899
|
903
|
919
|
|
904
|
840
|
Natural gas (mmcf/d)
|
|
1,333
|
1,263
|
1,347
|
|
1,308
|
1,279
|
Total hydrocarbons* (mboe/d)
|
|
1,129
|
1,120
|
1,152
|
|
1,129
|
1,060
|
(a)
|
The
operational and financial information of the Rosneft segment for
the fourth quarter and full year is based on preliminary
operational and financial results of Rosneft for the full year
ended 31 December 2017. Actual results may differ from these
amounts.
|
(b)
|
The
Rosneft segment result includes equity-accounted earnings arising
from BP’s 19.75% shareholding in Rosneft as adjusted for the
accounting required under IFRS relating to BP’s purchase of
its interest in Rosneft and the amortization of the deferred gain
relating to the divestment of BP’s interest in TNK-BP. These
adjustments have increased the reported profit before interest and
tax for the fourth quarter and full year 2017, as shown in the
table above, compared with the equivalent amount in Russian roubles
that we expect Rosneft to report in its own financial statements
under IFRS. BP’s share of Rosneft’s profit before
interest and tax for each year-to-date period is calculated by
translating the amounts reported in Russian roubles into US dollars
using the average exchange rate for the year to date. BP's share of
Rosneft’s earnings after finance costs, taxation and
non-controlling interests, as adjusted, is included in the BP group
income statement within profit before interest and
taxation.
|
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
$ million
|
|
2017
|
2017
|
2016
|
|
2017
|
2016
|
Profit (loss) before interest and tax
|
|
|
|
|
|
|
|
Gulf of Mexico oil spill
|
|
(2,221)
|
(84)
|
(674)
|
|
(2,687)
|
(6,640)
|
Other
|
|
(612)
|
(376)
|
(443)
|
|
(1,758)
|
(1,517)
|
Profit (loss) before interest and tax
|
|
(2,833)
|
(460)
|
(1,117)
|
|
(4,445)
|
(8,157)
|
Inventory holding (gains) losses*
|
|
–
|
–
|
–
|
|
–
|
–
|
RC profit (loss) before interest and tax
|
|
(2,833)
|
(460)
|
(1,117)
|
|
(4,445)
|
(8,157)
|
Net charge (credit) for non-operating items*
|
|
|
|
|
|
|
|
Gulf of Mexico oil spill
|
|
2,221
|
84
|
674
|
|
2,687
|
6,640
|
Other
|
|
218
|
(22)
|
19
|
|
160
|
279
|
Net charge (credit) for non-operating items
|
|
2,439
|
62
|
693
|
|
2,847
|
6,919
|
Underlying RC profit (loss) before interest and tax*
|
|
(394)
|
(398)
|
(424)
|
|
(1,598)
|
(1,238)
|
Underlying RC profit (loss) before interest and
tax
|
|
|
|
|
|
|
|
US
|
|
(29)
|
(145)
|
50
|
|
(475)
|
(276)
|
Non-US
|
|
(365)
|
(253)
|
(474)
|
|
(1,123)
|
(962)
|
|
|
(394)
|
(398)
|
(424)
|
|
(1,598)
|
(1,238)
|
Non-operating items
|
|
|
|
|
|
|
|
US
|
|
(2,381)
|
(92)
|
(672)
|
|
(2,861)
|
(6,824)
|
Non-US
|
|
(58)
|
30
|
(21)
|
|
14
|
(95)
|
|
|
(2,439)
|
(62)
|
(693)
|
|
(2,847)
|
(6,919)
|
RC profit (loss) before interest and tax
|
|
|
|
|
|
|
|
US
|
|
(2,410)
|
(237)
|
(622)
|
|
(3,336)
|
(7,100)
|
Non-US
|
|
(423)
|
(223)
|
(495)
|
|
(1,109)
|
(1,057)
|
|
|
(2,833)
|
(460)
|
(1,117)
|
|
(4,445)
|
(8,157)
|
(a)
|
Capacity
figures for 2016 include 23MW in the Netherlands managed by our
Downstream segment.
|
The commentary above contains forward-looking statements and should
be read in conjunction with the cautionary statement on
page 34.
|
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
$ million
|
|
2017
|
2017
|
2016
|
|
2017
|
2016
|
|
|
|
|
|
|
|
|
Sales and other operating revenues (Note 4)
|
|
67,816
|
60,018
|
51,007
|
|
240,208
|
183,008
|
Earnings from joint ventures – after
interest
|
|
|
|
|
|
|
|
and tax
|
|
581
|
231
|
489
|
|
1,177
|
966
|
Earnings from associates – after interest and
tax
|
|
526
|
282
|
263
|
|
1,330
|
994
|
Interest and other income
|
|
223
|
185
|
114
|
|
657
|
506
|
Gains on sale of businesses and fixed assets
|
|
876
|
92
|
248
|
|
1,210
|
1,132
|
Total revenues and other income
|
|
70,022
|
60,808
|
52,121
|
|
244,582
|
186,606
|
Purchases(a)
|
|
51,745
|
44,441
|
37,883
|
|
179,716
|
132,219
|
Production and manufacturing expenses(b)
|
|
7,759
|
5,454
|
6,595
|
|
24,229
|
29,077
|
Production and similar taxes (Note 5)(a)
|
|
511
|
449
|
199
|
|
1,775
|
683
|
Depreciation, depletion and amortization (Note 4)
|
|
4,045
|
3,904
|
3,642
|
|
15,584
|
14,505
|
Impairment and losses on sale of businesses
|
|
|
|
|
|
|
|
and fixed assets
|
|
604
|
108
|
(305)
|
|
1,216
|
(1,664)
|
Exploration expense
|
|
521
|
297
|
314
|
|
2,080
|
1,721
|
Distribution and administration expenses
|
|
2,981
|
2,634
|
2,692
|
|
10,508
|
10,495
|
Profit (loss) before interest and taxation
|
|
1,856
|
3,521
|
1,101
|
|
9,474
|
(430)
|
Finance costs(b)
|
|
616
|
511
|
434
|
|
2,074
|
1,675
|
Net finance expense relating to pensions and
|
|
|
|
|
|
|
|
other post-retirement benefits
|
|
58
|
55
|
50
|
|
220
|
190
|
Profit (loss) before taxation
|
|
1,182
|
2,955
|
617
|
|
7,180
|
(2,295)
|
Taxation(b)
|
|
1,119
|
1,198
|
74
|
|
3,712
|
(2,467)
|
Profit (loss) for the period
|
|
63
|
1,757
|
543
|
|
3,468
|
172
|
Attributable to
|
|
|
|
|
|
|
|
BP shareholders
|
|
27
|
1,769
|
497
|
|
3,389
|
115
|
Non-controlling interests
|
|
36
|
(12)
|
46
|
|
79
|
57
|
|
|
63
|
1,757
|
543
|
|
3,468
|
172
|
|
|
|
|
|
|
|
|
Earnings per share (Note 6)
|
|
|
|
|
|
|
|
Profit (loss) for the period attributable to
|
|
|
|
|
|
|
|
BP shareholders
|
|
|
|
|
|
|
|
Per ordinary share (cents)
|
|
|
|
|
|
|
|
Basic
|
|
0.14
|
8.95
|
2.62
|
|
17.20
|
0.61
|
Diluted
|
|
0.14
|
8.90
|
2.60
|
|
17.10
|
0.60
|
Per ADS (dollars)
|
|
|
|
|
|
|
|
Basic
|
|
0.01
|
0.54
|
0.16
|
|
1.03
|
0.04
|
Diluted
|
|
0.01
|
0.53
|
0.16
|
|
1.03
|
0.04
|
(a)
|
Amounts
reported in prior quarters of 2017 for Purchases and Production and
similar taxes have been amended, with no effect on profit for the
period. See Note 5 for further information.
|
(b)
|
See
Note 2 for information on the impact of the Gulf of Mexico oil
spill on these income statement line items.
|
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
$ million
|
|
2017
|
2017
|
2016
|
|
2017
|
2016
|
|
|
|
|
|
|
|
|
Profit (loss) for the period
|
|
63
|
1,757
|
543
|
|
3,468
|
172
|
Other comprehensive income
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to
|
|
|
|
|
|
|
|
profit or loss
|
|
|
|
|
|
|
|
Currency translation differences
|
|
264
|
611
|
(777)
|
|
1,986
|
254
|
Exchange (gains) losses on translation of
|
|
|
|
|
|
|
|
foreign operations reclassified to gain or
loss
|
|
|
|
|
|
|
|
on sale of businesses and fixed
assets
|
|
(138)
|
13
|
24
|
|
(120)
|
30
|
Available-for-sale investments
|
|
11
|
–
|
–
|
|
14
|
1
|
Cash flow hedges marked to market
|
|
19
|
49
|
(204)
|
|
197
|
(639)
|
Cash flow hedges reclassified to the
income
|
|
|
|
|
|
|
|
statement
|
|
23
|
20
|
86
|
|
116
|
196
|
Cash flow hedges reclassified to the
|
|
|
|
|
|
|
|
balance sheet
|
|
8
|
29
|
32
|
|
112
|
81
|
Share of items relating to
equity-accounted
|
|
|
|
|
|
|
|
entities, net of tax
|
|
133
|
128
|
172
|
|
564
|
833
|
Income tax relating to items that may
|
|
|
|
|
|
|
|
be reclassified
|
|
(81)
|
(59)
|
97
|
|
(261)
|
13
|
|
|
239
|
791
|
(570)
|
|
2,608
|
769
|
Items that will not be reclassified to profit or loss
|
|
|
|
|
|
|
|
Remeasurements
of the net pension and
other
|
|
|
|
|
|
|
|
post-retirement
benefit liability or
asset
|
|
1,599
|
1,002
|
3,484
|
|
3,646
|
(2,496)
|
Income tax relating to items that will not
be
|
|
|
|
|
|
|
|
reclassified
|
|
(539)
|
(351)
|
(765)
|
|
(1,238)
|
739
|
|
|
1,060
|
651
|
2,719
|
|
2,408
|
(1,757)
|
Other comprehensive income
|
|
1,299
|
1,442
|
2,149
|
|
5,016
|
(988)
|
Total comprehensive income
|
|
1,362
|
3,199
|
2,692
|
|
8,484
|
(816)
|
Attributable to
|
|
|
|
|
|
|
|
BP shareholders
|
|
1,312
|
3,206
|
2,667
|
|
8,353
|
(846)
|
Non-controlling interests
|
|
50
|
(7)
|
25
|
|
131
|
30
|
|
|
1,362
|
3,199
|
2,692
|
|
8,484
|
(816)
|
|
|
|
BP
|
|
|
|
|
shareholders’
|
Non-controlling
|
Total
|
$ million
|
|
equity
|
interests
|
equity
|
|
|
|
|
|
At 1 January 2017
|
|
95,286
|
1,557
|
96,843
|
|
|
|
|
|
Total comprehensive income
|
|
8,353
|
131
|
8,484
|
Dividends
|
|
(6,153)
|
(141)
|
(6,294)
|
Repurchase of ordinary share capital
|
|
(343)
|
–
|
(343)
|
Share-based payments, net of tax
|
|
687
|
–
|
687
|
Share of equity-accounted entities’ change in equity, net of
tax
|
|
215
|
–
|
215
|
Transactions involving non-controlling interests, net of
tax
|
|
446
|
366
|
812
|
At 31 December 2017
|
|
98,491
|
1,913
|
100,404
|
|
|
|
|
|
|
|
BP
|
|
|
|
|
shareholders’
|
Non-controlling
|
Total
|
$ million
|
|
equity
|
interests
|
equity
|
|
|
|
|
|
At 1 January 2016
|
|
97,216
|
1,171
|
98,387
|
|
|
|
|
|
Total comprehensive income
|
|
(846)
|
30
|
(816)
|
Dividends
|
|
(4,611)
|
(107)
|
(4,718)
|
Share-based payments, net of tax
|
|
2,991
|
–
|
2,991
|
Share of equity-accounted entities’ change in equity, net of
tax
|
|
106
|
–
|
106
|
Transactions involving non-controlling interests, net of
tax
|
|
430
|
463
|
893
|
At 31 December 2016
|
|
95,286
|
1,557
|
96,843
|
|
|
|
31 December
|
31 December
|
$ million
|
|
2017
|
2016
|
Non-current assets
|
|
|
|
Property, plant and equipment
|
|
129,471
|
129,757
|
Goodwill
|
|
11,551
|
11,194
|
Intangible assets
|
|
18,355
|
18,183
|
Investments in joint ventures
|
|
7,994
|
8,609
|
Investments in associates
|
|
16,991
|
14,092
|
Other investments
|
|
1,245
|
1,033
|
Fixed assets
|
|
185,607
|
182,868
|
Loans
|
|
646
|
532
|
Trade and other receivables
|
|
1,434
|
1,474
|
Derivative financial instruments
|
|
4,110
|
4,359
|
Prepayments
|
|
1,112
|
945
|
Deferred tax assets
|
|
4,469
|
4,741
|
Defined benefit pension plan surpluses
|
|
4,169
|
584
|
|
|
201,547
|
195,503
|
Current assets
|
|
|
|
Loans
|
|
190
|
259
|
Inventories
|
|
19,011
|
17,655
|
Trade and other receivables
|
|
24,849
|
20,675
|
Derivative financial instruments
|
|
3,032
|
3,016
|
Prepayments
|
|
1,414
|
1,486
|
Current tax receivable
|
|
761
|
1,194
|
Other investments
|
|
125
|
44
|
Cash and cash equivalents
|
|
25,586
|
23,484
|
|
|
74,968
|
67,813
|
Total assets
|
|
276,515
|
263,316
|
Current liabilities
|
|
|
|
Trade and other payables
|
|
44,209
|
37,915
|
Derivative financial instruments
|
|
2,808
|
2,991
|
Accruals
|
|
4,960
|
5,136
|
Finance debt
|
|
7,739
|
6,634
|
Current tax payable
|
|
1,686
|
1,666
|
Provisions
|
|
3,324
|
4,012
|
|
|
64,726
|
58,354
|
Non-current liabilities
|
|
|
|
Other payables
|
|
13,889
|
13,946
|
Derivative financial instruments
|
|
3,761
|
5,513
|
Accruals
|
|
505
|
469
|
Finance debt
|
|
55,491
|
51,666
|
Deferred tax liabilities
|
|
7,982
|
7,238
|
Provisions
|
|
20,620
|
20,412
|
Defined benefit pension plan and other post-retirement benefit plan
deficits
|
|
9,137
|
8,875
|
|
|
111,385
|
108,119
|
Total liabilities
|
|
176,111
|
166,473
|
Net assets
|
|
100,404
|
96,843
|
Equity
|
|
|
|
BP shareholders’ equity
|
|
98,491
|
95,286
|
Non-controlling interests
|
|
1,913
|
1,557
|
Total equity
|
|
100,404
|
96,843
|
|
|
|
Fourth
|
Third
|
Fourth
|
|
|
|
|
|
|
quarter
|
quarter
|
quarter
|
|
Year
|
Year
|
|
$ million
|
|
2017
|
2017
|
2016
|
|
2017
|
2016
|
|
Operating activities
|
|
|
|
|
|
|
|
|
Profit (loss) before taxation
|
|
1,182
|
2,955
|
617
|
|
7,180
|
(2,295)
|
|
Adjustments to reconcile profit (loss) before taxation
|
|
|
|
|
|
|
|
|
taxation to net cash provided by operating
|
|
|
|
|
|
|
|
|
activities
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization
and
|
|
|
|
|
|
|
|
|
exploration expenditure written
off
|
|
4,417
|
4,121
|
3,808
|
|
17,187
|
15,779
|
|
Impairment and (gain) loss on sale of
|
|
|
|
|
|
|
|
|
businesses and fixed assets
|
|
(272)
|
16
|
(553)
|
|
6
|
(2,796)
|
|
Earnings from equity-accounted entities,
|
|
|
|
|
|
|
|
|
less dividends received
|
|
(820)
|
(111)
|
(605)
|
|
(1,254)
|
(855)
|
|
Net charge for interest and other finance
|
|
|
|
|
|
|
|
|
expense, less net interest
paid
|
|
294
|
163
|
310
|
|
793
|
795
|
|
Share-based payments
|
|
166
|
177
|
150
|
|
661
|
779
|
|
Net operating charge for pensions and
other
|
|
|
|
|
|
|
|
|
post-retirement benefits, less
contributions
|
|
|
|
|
|
|
|
|
and benefit payments for unfunded
plans
|
|
(215)
|
(160)
|
(347)
|
|
(394)
|
|