REG - BP PLC - 1Q17 Part 1 of 1 <Origin Href="QuoteRef">BP.L</Origin> - Part 2
02/05/2017 07:07
- Part 2: For the preceding part double click ID:nRSB7975Da
Group production 3,530mboe/d(+5%) Organic capital expenditure $3.5bn (-$0.9bn)
Upstream production excluding Rosneft segment 2,388mboe/d (+3%) Gulf of Mexico oil spill payments $2.3bn(+$1.2bn)
Upstream unit production costs* $7.22/boe (-13%) Divestment proceeds $0.3bn (-$0.9bn)
BP-operated Upstream operating efficiency*(a) - Net debt ratio (gearing) 28.0% (+4.4)
Refining availability* 95.2% (+0.2) Dividend per ordinary share 10.00 cents(-)
(a) Will be reported on a one-quarter lagged basis - first reporting for 2017 will be in the second quarter 2017 results announcement.
The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 32.
Top of page 5
BP p.l.c. Group results
First quarter 2017
INTENTIONALLY BLANK
Top of page 6
BP p.l.c. Group results
First quarter 2017
Upstream
First Fourth First
quarter quarter quarter
$ million 2017 2016 2016
Profit (loss) before interest and tax 1,250 711 (1,236)
Inventory holding (gains) losses* 6 (19) 31
RC profit (loss) before interest and tax 1,256 692 (1,205)
Net (favourable) unfavourable impact of non-operating items*
and fair value accounting effects* 114 (292) 458
Underlying RC profit before interest and tax*(a) 1,370 400 (747)
(a) See page 7 for a reconciliation to segment RC profit before interest and tax by region.
Financial results
The replacement cost profit before interest and tax for the first quarter was $1,256 million, compared with a loss of
$1,205 million for the same period in 2016. The first quarter included a net non-operating charge of $360 million, compared
with a net non-operating charge of $355 million for the same period in 2016. Fair value accounting effects in the first
quarter had a favourable impact of $246 million, compared with an unfavourable impact of $103 million in the same period of
2016.
After adjusting for non-operating items and fair value accounting effects, the underlying replacement cost profit before
interest and tax for the first quarter was $1,370 million, compared with a loss of $747 million for the same period in
2016. The result for the first quarter mainly reflected higher liquids and gas realizations and higher production including
the impact of the Abu Dhabi ADCO concession renewal, partly offset by higher depreciation, depletion and amortization and
higher exploration write-offs.
Production
Production for the quarter was 2,388mboe/d, 3.0% higher than the first quarter of 2016. Underlying production* for the
quarter increased by 3.0%, due to the ramp-up of major projects.
Key events
On 22 February, BP's previously announced transaction with Kosmos Energy in Senegal was approved by the Senegal Minister of
Energy and of Development of Renewable Energies.
On 23 February, BP completed the purchase of a 10% interest from Eni (operator, 90%) in the Shorouk concession offshore
Egypt, which contains the Zohr gas field.
On 27 March, BP announced its third gas discovery in the North Damietta Offshore Concession (BP 100%) in the East Nile
Delta, Egypt.
On 3 April, BP announced that it had agreed to sell its Forties Pipeline System (FPS) business, with assets including the
main Forties offshore and onshore pipelines and other associated pipeline interests and facilities, to INEOS. BP's existing
rights to capacity in FPS will not be affected.
On 13 April, BP Trinidad and Tobago announced the start-up of the Trinidad onshore compression project.
Outlook
We expect second-quarter 2017 reported production to be broadly flat with the first quarter with the continued ramp-up of
major projects* offset by seasonal turnaround and maintenance activities.
The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 32.
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BP p.l.c. Group results
First quarter 2017
Upstream (continued)
First Fourth First
quarter quarter quarter
$ million 2017 2016 2016
Underlying RC profit (loss) before interest and tax
US 166 (147) (667)
Non-US 1,204 547 (80)
1,370 400 (747)
Non-operating items
US(a) (12) 21 (163)
Non-US(b)(c) (348) 615 (192)
(360) 636 (355)
Fair value accounting effects
US 192 (274) (33)
Non-US 54 (70) (70)
246 (344) (103)
RC profit (loss) before interest and tax
US 346 (400) (863)
Non-US 910 1,092 (342)
1,256 692 (1,205)
Exploration expense
US(a) 40 511 112
Non-US(c)(d) 372 (197) 142
412 314 254
Of which: Exploration expenditure written off(a)(c)(d) 261 166 161
Production (net of royalties)(e)
Liquids*(f) (mb/d)
US 448 406 403
Europe 115 122 128
Rest of World(f) 827 650 768
1,389 1,178 1,299
Natural gas (mmcf/d)
US 1,594 1,675 1,603
Europe 263 268 289
Rest of World 3,934 3,903 4,019
5,791 5,846 5,910
Total hydrocarbons*(f) (mboe/d)
US 723 694 679
Europe 160 168 178
Rest of World(f) 1,505 1,323 1,461
2,388 2,186 2,318
Average realizations*(g)
Total liquids(f)(h) ($/bbl) 49.87 43.89 29.61
Natural gas ($/mcf) 3.50 3.08 2.84
Total hydrocarbons(f) ($/boe) 37.19 31.40 23.81
(a) Fourth quarter 2016 includes the write-off of $147 million in relation to the value ascribed to licences in the deepwater Gulf of Mexico as part of the accounting for the acquisition of upstream assets from Devon Energy in 2011. This has been classified within the 'other' category of non-operating items.
(b) First quarter 2017 relates primarily to an impairment charge arising following the announcement on 3 April 2017 of the agreement to sell the Forties Pipeline System business to INEOS. An impairment reversal of $30 million was also recorded in the quarter in relation to Block KG D6 in India ($234-million impairment reversal in fourth quarter 2016).
(c) First quarter 2017 includes a $56-million write-back relating to Block KG D6 in India ($319-million write-back in fourth quarter 2016). This has been classified in the 'other' category of non-operating items.
(d) First quarter 2017 includes a $297-million write-off of exploration wells in Egypt.
(e) Includes BP's share of production of equity-accounted entities in the Upstream segment.
(f) A minor adjustment has been made to first quarter 2016. See page 27 for more information.
(g) Realizations are based on sales by consolidated subsidiaries only - this excludes equity-accounted entities.
(h) Includes condensate, natural gas liquids and bitumen.
Because of rounding, some totals may not agree exactly with the sum of their component parts.
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BP p.l.c. Group results
First quarter 2017
Downstream
First Fourth First
quarter quarter quarter
$ million 2017 2016 2016
Profit (loss) before interest and tax 1,804 1,457 1,783
Inventory holding (gains) losses* (98) (558) 97
RC profit before interest and tax 1,706 899 1,880
Net (favourable) unfavourable impact of non-operating items*
and fair value accounting effects* 36 (22) (67)
Underlying RC profit before interest and tax*(a) 1,742 877 1,813
(a) See page 9 for a reconciliation to segment RC profit before interest and tax by region and by business.
Financial results
The replacement cost profit before interest and tax for the first quarter was $1,706 million, compared with $1,880 million
for the same period in 2016.
The first quarter includes a net non-operating charge of $76 million, compared with a net non-operating gain of $286
million for the same period in 2016. Fair value accounting effects had a favourable impact of $40 million in the first
quarter, compared with an unfavourable impact of $219 million for the same period in 2016.
After adjusting for non-operating items and fair value accounting effects, the underlying replacement cost profit before
interest and tax for the first quarter was $1,742 million, compared with $1,813 million for the same period in 2016.
Replacement cost profit before interest and tax for the fuels, lubricants and petrochemicals businesses is set out on page
9.
Fuels business
The fuels business reported an underlying replacement cost profit before interest and tax of $1,200 million for the first
quarter, compared with $1,316 million for the same period in 2016. The result for the quarter reflects improved refining
margins and a higher fuels marketing performance. This was more than offset by a higher level of turnaround activity and,
whilst the supply and trading performance was strong, it reflected a lower contribution compared to the same period last
year.
Lubricants business
The lubricants business reported an underlying replacement cost profit before interest and tax of $393 million for the
first quarter, compared with $384 million for the same period in 2016.
Petrochemicals business
The petrochemicals business reported an underlying replacement cost profit before interest and tax of $149 million for the
first quarter, compared with $113 million for the same period in 2016.
Following a review of our petrochemicals portfolio to focus on areas where we have leading proprietary technologies and
competitive advantage, on 27 April 2017 we announced our intention to divest our 50% shareholding in our Shanghai SECCO
Petrochemical Company Limited joint venture in China for a consideration of $1.7 billion. This transaction is subject to
regulatory approvals.
Outlook
In the second quarter, we expect improved industry refining margins to be offset by both narrower North American heavy
crude oil differentials and a higher level of turnaround activity compared with the first quarter.
The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 32.
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BP p.l.c. Group results
First quarter 2017
Downstream (continued)
First Fourth First
quarter quarter quarter
$ million 2017 2016 2016
Underlying RC profit before interest and tax - by region
US 554 (371) 540
Non-US 1,188 1,248 1,273
1,742 877 1,813
Non-operating items
US (12) (122) 113
Non-US (64) 45 173
(76) (77) 286
Fair value accounting effects
US (62) 22 (87)
Non-US 102 77 (132)
40 99 (219)
RC profit before interest and tax
US 480 (471) 566
Non-US 1,226 1,370 1,314
1,706 899 1,880
Underlying RC profit before interest and tax - by business(a)(b)
Fuels 1,200 417 1,316
Lubricants 393 357 384
Petrochemicals 149 103 113
1,742 877 1,813
Non-operating items and fair value accounting effects(c)
Fuels 4 103 55
Lubricants (3) (81) (1)
Petrochemicals (37) - 13
(36) 22 67
RC profit (loss) before interest and tax(a)(b)
Fuels 1,204 520 1,371
Lubricants 390 276 383
Petrochemicals 112 103 126
1,706 899 1,880
BP average refining marker margin (RMM)*($/bbl) 11.7 11.4 10.5
Refinery throughputs (mb/d)
US 694 604 699
Europe 801 806 807
Rest of World 181 234 238
1,676 1,644 1,744
Refining availability* (%) 95.2 94.9 95.0
Marketing sales of refined products (mb/d)
US 1,116 1,146 1,071
Europe 1,069 1,166 1,144
Rest of World 512 540 488
2,697 2,852 2,703
Trading/supply sales of refined products 2,959 2,836 2,810
Total sales volumes of refined products 5,656 5,688 5,513
Petrochemicals production (kte)
US 498 546 896
Europe 1,253 930 992
Rest of World 2,073 2,071 1,909
3,824 3,547 3,797
(a) Segment-level overhead expenses are included in the fuels business result.
(b) BP's income from petrochemicals at our Gelsenkirchen and Mülheim sites in Germany is reported in the fuels business.
(c) For Downstream, fair value accounting effects arise solely in the fuels business.
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BP p.l.c. Group results
First quarter 2017
Rosneft
First Fourth First
quarter quarter quarter
$ million 2017(a) 2016 2016
Profit before interest and tax(b) 73 182 62
Inventory holding (gains) losses* 26 (24) 4
RC profit before interest and tax 99 158 66
Net charge (credit) for non-operating items* - (23) -
Underlying RC profit before interest and tax* 99 135 66
Financial results
Replacement cost profit before interest and tax and underlying replacement cost profit before interest and tax for the
first quarter was $99 million, compared with $66 million for the same period in 2016. There were no non-operating items in
the first quarter of either year.
Compared with the same period in 2016, the result for the first quarter was primarily affected by adverse foreign exchange
effects and higher oil prices.
On 24 April 2017, Rosneft announced that the board of directors had given their preliminary approval of the company's 2016
annual report and recommended that the annual general meeting (AGM) adopts a resolution to pay dividends of 5.98 roubles
per one ordinary share which constitutes 35% of the company's IFRS net profit. BP expects to receive a dividend in relation
to the 2016 annual results of 11.3 billion roubles, after the deduction of withholding tax, subject to approval at the
AGM.
Key events
In April Rosneft completed the acquisition of a 100% interest in the Kondaneft project that is developing four licence
areas in the Khanty-Mansiysk Autonomous District in West Siberia. The acquisition price is expected to be approximately
$700 million.
First Fourth First
quarter quarter quarter
2017(a) 2016 2016
Production(net of royalties) (BP share)
Liquids* (mb/d) 912 919 808
Natural gas (mmcf/d) 1,334 1,347 1,282
Total hydrocarbons* (mboe/d) 1,142 1,152 1,029
(a) The operational and financial information of the Rosneft segment for the first quarter is based on preliminary operational and financial results of Rosneft for the three months ended 31 March 2017. Actual results may differ from these amounts.
(b) The Rosneft segment result includes equity-accounted earnings arising from BP's 19.75% shareholding in Rosneft as adjusted for the accounting required under IFRS relating to BP's purchase of its interest in Rosneft and the amortization of the deferred gain
relating to the divestment of BP's interest in TNK-BP. These adjustments have increased the reported profit before interest and tax for the first quarter in 2017, as shown in the table above, compared with the equivalent amount in Russian roubles that we
expect Rosneft to report in its own financial statements under IFRS. BP's share of Rosneft's profit before interest and tax for each year-to-date period is calculated by translating the amounts reported in Russian roubles into US dollars using the average
exchange rate for the year to date. BP's share of Rosneft's earnings after finance costs, taxation and non-controlling interests, as adjusted, is included in the BP group income statement within profit before interest and taxation.
Top of page 11
BP p.l.c. Group results
First quarter 2017
Other businesses and corporate
First Fourth First
quarter quarter quarter
$ million 2017 2016 2016
Profit (loss) before interest and tax
Gulf of Mexico oil spill (35) (674) (794)
Other (396) (443) (280)
Profit (loss) before interest and tax (431) (1,117) (1,074)
Inventory holding (gains) losses* - - -
RC profit (loss) before interest and tax (431) (1,117) (1,074)
Net charge (credit) for non-operating items*
Gulf of Mexico oil spill 35 674 794
Other (44) 19 102
Net charge (credit) for non-operating items (9) 693 896
Underlying RC profit (loss) before interest and tax* (440) (424) (178)
Underlying RC profit (loss) before interest and tax
US (197) 50 (110)
Non-US (243) (474) (68)
(440) (424) (178)
Non-operating items
US (38) (672) (848)
Non-US 47 (21) (48)
9 (693) (896)
RC profit (loss) before interest and tax
US (235) (622) (958)
Non-US (196) (495) (116)
(431) (1,117) (1,074)
Other businesses and corporate comprises our alternative energy business, shipping, treasury, corporate activities
including centralized functions, and the costs of the Gulf of Mexico oil spill.
Financial results
The replacement cost loss before interest and tax for the first quarter was $431 million, compared with $1,074 million for
the same period in 2016.
The first-quarter result included a net non-operating gain of $9 million, compared with a net non-operating charge of $896
million for the same period in 2016.
After adjusting for non-operating items, the underlying replacement cost loss before interest and tax for the first quarter
was $440 million, compared with $178 million for the same period in 2016. The underlying charge in the first quarter was
impacted by adverse foreign exchange effects, which had a favourable effect in the first quarter of 2016.
Alternative energy - wind
Net wind generation capacity*(a) was 1,454MW at 31 March 2017 compared with 1,578MW at 31 March 2016. BP's net share of
wind generation for the first quarter was 1,159GWh, compared with 1,347GWh for the same period in 2016.
(a) Capacity figures include 23MW in the Netherlands managed by our Downstream segment at 31 March 2017 (23MW at 31 March 2016).
Top of page 12
BP p.l.c. Group results
First quarter 2017
Financial statements
Group income statement
First Fourth First
quarter quarter quarter
$ million 2017 2016 2016
Sales and other operating revenues (Note 4) 55,863 51,007 38,512
Earnings from joint ventures - after interest and tax 205 489 29
Earnings from associates - after interest and tax 151 263 142
Interest and other income 122 114 145
Gains on sale of businesses and fixed assets 45 248 338
Total revenues and other income 56,386 52,121 39,166
Purchases 41,137 37,883 26,603
Production and manufacturing expenses(a) 5,255 6,595 6,519
Production and similar taxes (Note 5) 306 199 14
Depreciation, depletion and amortization 3,842 3,642 3,730
Impairment and losses on sale of businesses and fixed assets 453 (305) 13
Exploration expense 412 314 254
Distribution and administration expenses 2,353 2,692 2,458
Profit (loss) before interest and taxation 2,628 1,101 (425)
Finance costs(a) 460 434 394
Net finance expense relating to pensions and other
post-retirement benefits 53 50 46
Profit (loss) before taxation 2,115 617 (865)
Taxation(a) 623 74 (307)
Profit (loss) for the period 1,492 543 (558)
Attributable to
BP shareholders 1,449 497 (583)
Non-controlling interests 43 46 25
1,492 543 (558)
Earnings per share (Note 6)
Profit (loss) for the period attributable to BP shareholders
Per ordinary share (cents)
Basic 7.42 2.62 (3.16)
Diluted 7.38 2.60 (3.16)
Per ADS (dollars)
Basic 0.45 0.16 (0.19)
Diluted 0.44 0.16 (0.19)
(a) See Note 2 for information on the impact of the Gulf of Mexico oil spill on these income statement line items.
Top of page 13
BP p.l.c. Group results
First quarter 2017
Group statement of comprehensive income
First Fourth First
quarter quarter quarter
$ million 2017 2016 2016
Profit (loss) for the period 1,492 543 (558)
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Currency translation differences 1,214 (777) 874
Exchange gains (losses) on translation of foreign operations
reclassified to gain or loss on sale of businesses and fixed assets 1 24 6
Available-for-sale investments 2 - -
Cash flow hedges marked to market 48 (204) (62)
Cash flow hedges reclassified to the income statement 42 86 23
Cash flow hedges reclassified to the balance sheet 39 32 13
Share of items relating to equity-accounted entities, net of tax 231 172 290
Income tax relating to items that may be reclassified (125) 97 (86)
1,452 (570) 1,058
Items that will not be reclassified to profit or loss
Remeasurements of the net pension and other post-retirement
benefit liability or asset 727 3,484 (1,222)
Income tax relating to items that will not be reclassified (246) (765) 402
481 2,719 (820)
Other comprehensive income 1,933 2,149 238
Total comprehensive income 3,425 2,692 (320)
Attributable to
BP shareholders 3,363 2,667 (351)
Non-controlling interests 62 25 31
3,425 2,692 (320)
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BP p.l.c. Group results
First quarter 2017
Group statement of changes in equity
BP shareholders' Non-controlling Total
$ million equity interests equity
At 1 January 2017 95,286 1,557 96,843
Total comprehensive income 3,363 62 3,425
Dividends (1,304) (15) (1,319)
Share-based payments, net of tax 177 - 177
Share of equity-accounted entities' changes in equity, net of tax 118 - 118
Transactions involving non-controlling interests - 38 38
At 31 March 2017 97,640 1,642 99,282
BP shareholders' Non-controlling Total
$ million equity interests equity
At 1 January 2016 97,216 1,171 98,387
Total comprehensive income (351) 31 (320)
Dividends (1,099) (9) (1,108)
Share-based payments, net of tax 265 - 265
Transactions involving non-controlling interests (1) 66 65
At 31 March 2016 96,030 1,259 97,289
Top of page 15
BP p.l.c. Group results
First quarter 2017
Group balance sheet
31 March 31 December
$ million 2017 2016
Non-current assets
Property, plant and equipment 129,817 129,757
Goodwill 11,256 11,194
Intangible assets 18,366 18,183
Investments in joint ventures 8,765 8,609
Investments in associates 15,484 14,092
Other investments 1,011 1,033
Fixed assets 184,699 182,868
Loans 550 532
Trade and other receivables 1,448 1,474
Derivative financial instruments 4,189 4,359
Prepayments 1,022 945
Deferred tax assets 4,883 4,741
Defined benefit pension plan surpluses 1,162 584
197,953 195,503
Current assets
Loans 259 259
Inventories 17,236 17,655
Trade and other receivables 21,004 20,675
Derivative financial instruments 2,467 3,016
Prepayments 1,092 1,486
Current tax receivable 1,115 1,194
Other investments 39 44
Cash and cash equivalents 23,794 23,484
67,006 67,813
Total assets 264,959 263,316
Current liabilities
Trade and other payables 37,548 37,915
Derivative financial instruments 2,330 2,991
Accruals 4,096 5,136
Finance debt 7,360 6,634
Current tax payable 1,821 1,666
Provisions 2,971 4,012
56,126 58,354
Non-current liabilities
Other payables 13,067 13,946
Derivative financial instruments 5,187 5,513
Accruals 451 469
Finance debt 54,472 51,666
Deferred tax liabilities 7,295 7,238
Provisions 20,272 20,412
Defined benefit pension plan and other post-retirement benefit plan deficits 8,807 8,875
109,551 108,119
Total liabilities 165,677 166,473
Net assets 99,282 96,843
Equity
BP shareholders' equity 97,640 95,286
Non-controlling interests 1,642 1,557
Total equity 99,282 96,843
Top of page 16
BP p.l.c. Group results
First quarter 2017
Condensed group cash flow statement
First Fourth First
quarter quarter quarter
$ million 2017 2016 2016
Operating activities
Profit (loss) before taxation 2,115 617 (865)
Adjustments to reconcile profit (loss) before taxation to net cash
provided by operating activities
Depreciation, depletion and amortization and exploration
expenditure written off 4,103 3,808 3,891
Impairment and (gain) loss on sale of businesses and fixed assets 408 (553) (325)
Earnings from equity-accounted entities, less dividends received (220) (605) (24)
Net charge for interest and other finance expense, less net interest paid 252 310 168
Share-based payments 162 150 259
Net operating charge for pensions and other post-retirement benefits,
less contributions and benefit payments for unfunded plans (73) (347) 32
Net charge for provisions, less payments (177) (629) 735
Movements in inventories and other current and non-current
assets and liabilities (3,600) 393 (1,727)
Income taxes paid (856) (716) (272)
Net cash provided by operating activities 2,114 2,428 1,872
Investing activities
Expenditure on property, plant and equipment, intangible and other assets (3,823) (4,658) (4,381)
Acquisitions, net of cash acquired (42) (1) -
Investment in joint ventures (20) (37) (4)
Investment in associates (183) (226) (93)
Total cash capital expenditure (4,068) (4,922) (4,478)
Proceeds from disposal of fixed assets 188 391 238
Proceeds from disposal of businesses, net of cash disposed 73 78 911
Proceeds from loan repayments 14 7 46
Net cash used in investing activities (3,793) (4,446) (3,283)
Financing activities
Proceeds from long-term financing 3,713 3,069 2,738
Repayments of long-term financing (917) (1,733) (3,559)
Net increase (decrease) in short-term debt 315 375 (112)
Net increase (decrease) in non-controlling interests 30 126 70
Dividends paid - BP shareholders (1,304) (1,182) (1,099)
- non-controlling interests (15) (24) (9)
Net cash provided by (used in) financing activities 1,822 631 (1,971)
Currency translation differences relating to cash and cash equivalents 167 (649) 42
Increase (decrease) in cash and cash equivalents 310 (2,036) (3,340)
Cash and cash equivalents at beginning of period 23,484 25,520 26,389
Cash and cash equivalents at end of period 23,794 23,484 23,049
Top of page 17
BP p.l.c. Group results
First quarter 2017
Notes
Note 1. Basis of preparation
The interim financial information included in this report has been prepared in accordance with IAS 34 'Interim Financial
Reporting'.
The results for the interim periods are unaudited and, in the opinion of management, include all adjustments necessary for
a fair presentation of the results for each period. All such adjustments are of a normal recurring nature. This report
should be read in conjunction with the consolidated financial statements and related notes for the year ended 31 December
2016 included in BP Annual Report and Form 20-F 2016.
BP prepares its consolidated financial statements included within BP Annual Report and Form 20-F on the basis of
International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), IFRS
as adopted by the European Union (EU) and in accordance with the provisions of the UK Companies Act 2006. IFRS as adopted
by the EU differs in certain respects from IFRS as issued by the IASB. The differences have no impact on the group's
consolidated financial statements for the periods presented.
The financial information presented herein has been prepared in accordance with the accounting policies expected to be used
in preparing BP Annual Report and Form 20-F 2017, which do not differ significantly from those used in BP Annual Report and
Form 20-F 2016.
Note 2. Gulf of Mexico oil spill
(a) Overview
The information presented in this note should be read in conjunction with BP Annual Report and Form 20-F 2016 - Financial
statements - Note 2 and Legal proceedings from page 261.
The group income statement includes a pre-tax charge of $161 million for the first quarter in relation to the Gulf of
Mexico oil spill. The cumulative pre-tax income statement charge since the incident, in April 2010, amounts to $62,746
million. The charge for the first quarter predominantly reflects finance costs relating to the unwinding of discounting
effects.
The amounts set out below reflect the impacts on the financial statements of the Gulf of Mexico oil spill for the periods
presented. The income statement, balance sheet and cash flow statement impacts are included within the relevant line items
in those statements as set out below.
First Fourth First
quarter quarter quarter
$ million 2017 2016 2016
Income statement
Production and manufacturing expenses 35 674 794
Profit (loss) before interest and taxation (35) (674) (794)
Finance costs
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