REG - BP PLC - 3Q17 Part 1 of 1 <Origin Href="QuoteRef">BP.L</Origin> - Part 3
31/10/2017 07:06
- Part 3: For the preceding part double click ID:nRSe0280Vb
and $1,204 million respectively, compared with $260 million and $814 million for the same
periods in 2016. The underlying charge for the nine months was impacted by weaker business results, and adverse foreign
exchange effects which had a favourable effect in the same period in 2016.
Alternative energy -biofuels, wind
The net ethanol-equivalent production (which includes ethanol and sugar) for the third quarter and nine months was 362
million litres and 588 million litres respectively, compared with 352 million litres and 635 million litres for the same
periods in 2016.
Net wind generation capacity*(a) was 1,432MW at 30 September 2017 compared with 1,474MW at 30 September 2016. BP's net
share of wind generation for the third quarter and nine months was 644GWh and 2,856GWh respectively, compared with 828GWh
and 3,235GWh for the same periods in 2016.
(a) Capacity figures for 2016 include 23MW in the Netherlands managed by our Downstream segment.
Top of page 12
BP p.l.c. Group results
Third quarter and nine months 2017
Financial statements
Group income statement
Third Second Third Nine Nine
quarter quarter quarter months months
$ million 2017 2017 2016 2017 2016
Sales and other operating revenues (Note 5) 60,018 56,511 47,047 172,392 132,001
Earnings from joint ventures - after interest
and tax 231 160 174 596 477
Earnings from associates - after interest and tax 282 371 209 804 731
Interest and other income 185 127 146 434 392
Gains on sale of businesses and fixed assets 92 197 467 334 884
Total revenues and other income 60,808 57,366 48,043 174,560 134,485
Purchases 44,612 42,713 34,981 128,462 94,336
Production and manufacturing expenses(a) 5,454 5,761 5,517 16,470 22,482
Production and similar taxes (Note 6) 278 189 212 773 484
Depreciation, depletion and amortization (Note 5) 3,904 3,793 3,496 11,539 10,863
Impairment and losses on sale of businesses and
fixed assets 108 51 (1,424) 612 (1,359)
Exploration expense 297 850 803 1,559 1,407
Distribution and administration expenses 2,634 2,540 2,648 7,527 7,803
Profit (loss) before interest and taxation 3,521 1,469 1,810 7,618 (1,531)
Finance costs(a) 511 487 433 1,458 1,241
Net finance expense relating to pensions and
other post-retirement benefits 55 54 48 162 140
Profit (loss) before taxation 2,955 928 1,329 5,998 (2,912)
Taxation(a) 1,198 772 (248) 2,593 (2,541)
Profit (loss) for the period 1,757 156 1,577 3,405 (371)
Attributable to
BP shareholders 1,769 144 1,620 3,362 (382)
Non-controlling interests (12) 12 (43) 43 11
1,757 156 1,577 3,405 (371)
Earnings per share (Note 7)
Profit (loss) for the period attributable to
BP shareholders
Per ordinary share (cents)
Basic 8.95 0.73 8.61 17.10 (2.05)
Diluted 8.90 0.72 8.56 17.00 (2.05)
Per ADS (dollars)
Basic 0.54 0.04 0.52 1.03 (0.12)
Diluted 0.53 0.04 0.51 1.02 (0.12)
(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
Third quarter and nine months 2017
Group statement of comprehensive income
Third Second Third Nine Nine
quarter quarter quarter months months
$ million 2017 2017 2016 2017 2016
Profit (loss) for the period 1,757 156 1,577 3,405 (371)
Other comprehensive income
Items that may be reclassified subsequently to
profit or loss
Currency translation differences 611 (103) 192 1,722 1,031
Exchange gains (losses) on translation of
foreign operations reclassified to gain or loss
on sale of businesses and fixed assets 13 4 - 18 6
Available-for-sale investments - 1 1 3 1
Cash flow hedges marked to market 49 81 (84) 178 (435)
Cash flow hedges reclassified to the income
statement 20 31 71 93 110
Cash flow hedges reclassified to the
balance sheet 29 36 30 104 49
Share of items relating to equity-accounted
entities, net of tax 128 72 174 431 661
Income tax relating to items that may
be reclassified (59) 4 (78) (180) (84)
791 126 306 2,369 1,339
Items that will not be reclassified to profit or loss
Remeasurements of the net pension and other
post-retirement benefit liability or asset 1,002 318 (2,995) 2,047 (5,980)
Income tax relating to items that will not be
reclassified (351) (102) 510 (699) 1,504
651 216 (2,485) 1,348 (4,476)
Other comprehensive income 1,442 342 (2,179) 3,717 (3,137)
Total comprehensive income 3,199 498 (602) 7,122 (3,508)
Attributable to
BP shareholders 3,206 472 (558) 7,041 (3,513)
Non-controlling interests (7) 26 (44) 81 5
3,199 498 (602) 7,122 (3,508)
Top of page 14
BP p.l.c. Group results
Third quarter and nine months 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 7,041 81 7,122
Dividends (4,526) (109) (4,635)
Share-based payments, net of tax 514 - 514
Share of equity-accounted entities' change in equity, net of tax 206 - 206
Transactions involving non-controlling interests - 88 88
At 30 September 2017 98,521 1,617 100,138
BP
shareholders' Non-controlling Total
$ million equity interests equity
At 1 January 2016 97,216 1,171 98,387
Total comprehensive income (3,513) 5 (3,508)
Dividends (3,429) (83) (3,512)
Share-based payments, net of tax 622 - 622
Share of equity-accounted entities' change in equity, net of tax 49 - 49
Transactions involving non-controlling interests 431 328 759
At 30 September 2016 91,376 1,421 92,797
Top of page 15
BP p.l.c. Group results
Third quarter and nine months 2017
Group balance sheet
30 September 31 December
$ million 2017 2016
Non-current assets
Property, plant and equipment 130,651 129,757
Goodwill 11,514 11,194
Intangible assets 18,586 18,183
Investments in joint ventures 6,703 8,609
Investments in associates 15,921 14,092
Other investments 1,051 1,033
Fixed assets 184,426 182,868
Loans 553 532
Trade and other receivables 1,461 1,474
Derivative financial instruments 4,470 4,359
Prepayments 1,094 945
Deferred tax assets 4,819 4,741
Defined benefit pension plan surpluses 2,297 584
199,120 195,503
Current assets
Loans 267 259
Inventories 18,078 17,655
Trade and other receivables 21,833 20,675
Derivative financial instruments 2,248 3,016
Prepayments 1,441 1,486
Current tax receivable 746 1,194
Other investments 84 44
Cash and cash equivalents 25,780 23,484
70,477 67,813
Assets classified as held for sale (Note 3) 1,892 -
72,369 67,813
Total assets 271,489 263,316
Current liabilities
Trade and other payables 39,965 37,915
Derivative financial instruments 2,154 2,991
Accruals 4,797 5,136
Finance debt 8,891 6,634
Current tax payable 1,455 1,666
Provisions 2,304 4,012
59,566 58,354
Non-current liabilities
Other payables 13,805 13,946
Derivative financial instruments 3,881 5,513
Accruals 501 469
Finance debt 56,893 51,666
Deferred tax liabilities 7,619 7,238
Provisions 20,078 20,412
Defined benefit pension plan and other post-retirement benefit plan deficits 9,008 8,875
111,785 108,119
Total liabilities 171,351 166,473
Net assets 100,138 96,843
Equity
BP shareholders' equity 98,521 95,286
Non-controlling interests 1,617 1,557
Total equity 100,138 96,843
Top of page 16
BP p.l.c. Group results
Third quarter and nine months 2017
Condensed group cash flow statement
Third Second Third Nine Nine
quarter quarter quarter months months
$ million 2017 2017 2016 2017 2016
Operating activities
Profit (loss) before taxation 2,955 928 1,329 5,998 (2,912)
Adjustments to reconcile profit (loss) before taxation
taxation to net cash provided by operating
activities
Depreciation, depletion and amortization and
exploration expenditure written off 4,121 4,546 4,183 12,770 11,971
Impairment and (gain) loss on sale of businesses
and fixed assets 16 (146) (1,891) 278 (2,243)
Earnings from equity-accounted entities,
less dividends received (111) (103) 259 (434) (250)
Net charge for interest and other finance
expense, less net interest paid 163 84 204 499 485
Share-based payments 177 156 166 495 629
Net operating charge for pensions and other post-
retirement benefits, less contributions and
benefit payments for unfunded plans (160) 54 (96) (179) (120)
Net charge for provisions, less payments (144) 183 (184) (138) 5,116
Movements in inventories and other current and
non-current assets and liabilities 305 3 (1,001) (3,292) (3,591)
Income taxes paid (1,298) (815) (461) (2,969) (822)
Net cash provided by operating activities 6,024 4,890 2,508 13,028 8,263
Investing activities
Expenditure on property, plant and equipment,
intangible and other assets (4,136) (4,181) (3,379) (12,140) (12,043)
Acquisitions, net of cash acquired (146) (123) - (311) -
Investment in joint ventures (5) (10) (1) (35) (13)
Investment in associates (176) (174) (185) (533) (474)
Total cash capital expenditure (4,463) (4,488) (3,565) (13,019) (12,530)
Proceeds from disposal of fixed assets 149 312 590 649 981
Proceeds from disposal of businesses, net of
cash disposed 92 140 (21) 305 1,181
Proceeds from loan repayments 308 19 9 341 61
Net cash used in investing activities (3,914) (4,017) (2,987) (11,724) (10,307)
Financing activities
Proceeds from long-term financing 3,078 1,720 3,925 8,511 9,373
Repayments of long-term financing (1,239) (1,463) (75) (3,619) (4,952)
Net increase (decrease) in short-term debt 123 (299) (512) 139 (324)
Net increase (decrease) in non-controlling interests - 51 323 81 761
Dividends paid - BP shareholders (1,676) (1,546) (1,161) (4,526) (3,429)
- non-controlling interests (32) (62) (31) (109) (83)
Net cash provided by (used in) financing activities 254 (1,599) 2,469 477 1,346
Currency translation differences relating to cash
and cash equivalents 146 202 13 515 (171)
Increase (decrease) in cash and cash equivalents 2,510 (524) 2,003 2,296 (869)
Cash and cash equivalents at beginning of period 23,270 23,794 23,517 23,484 26,389
Cash and cash equivalents at end of period 25,780 23,270 25,520 25,780 25,520
Top of page 17
BP p.l.c. Group results
Third quarter and nine months 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 on page 261.
The group income statement includes a pre-tax charge for the third quarter of $84 million to reflect the latest estimate
for claims and associated administration costs, and $122 million for finance costs relating to the unwinding of discounting
effects. The equivalent amounts for the nine months were $466 million and $369 million respectively. The cumulative pre-tax
income statement charge since the incident, in April 2010, amounts to $63,420 million.
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.
Third Second Third Nine Nine
quarter quarter quarter months months
$ million 2017 2017 2016 2017 2016
Income statement
Production and manufacturing expenses 84 347 66 466 5,966
Profit (loss) before interest and taxation (84) (347) (66) (466) (5,966)
Finance costs 122 121 123 369 369
Profit (loss) before taxation (206) (468) (189) (835) (6,335)
Taxation 71 154 53 273 2,837
Profit (loss) for the period (135) (314) (136) (562) (3,498)
Top of page 18
BP p.l.c. Group results
Third quarter and nine months 2017
Note 2. Gulf of Mexico oil spill (continued)
30 September 31 December
$ million 2017 2016
Balance sheet
Current assets
Trade and other receivables 214 194
Current liabilities
Trade and other payables (2,069) (3,056)
Provisions (726) (2,330)
Net current assets (liabilities) (2,581) (5,192)
Non-current assets
Deferred tax assets 2,821 2,973
Non-current liabilities
Other payables (12,197) (13,522)
Provisions - (112)
Deferred tax liabilities 5,544 5,119
Net non-current assets (liabilities) (3,832) (5,542)
Net assets (liabilities) (6,413) (10,734)
Third Second Third Nine Nine
quarter quarter quarter months months
$ million 2017 2017 2016 2017 2016
Cashflow statement - Operating activities
Profit (loss) before taxation (206) (468) (189) (835) (6,335)
Adjustments to reconcile profit (loss) before
taxation to net cash provided by
operating activities
Net charge for interest and other finance
expense, less net interest paid 122 121 123 369 369
Net charge for provisions, less payments 68 298 (494) 361 4,729
Movements in inventories and other current
and non-current assets and liabilities (548) (1,976) (1,766) (4,778) (3,825)
Pre-tax cash flows (564) (2,025) (2,326) (4,883) (5,062)
Cash outflows in 2016 and 2017 include payments made under the 2012 agreement with the US government to resolve all federal
criminal claims arising from the incident and the 2016 consent decree and settlement agreement with the United States and
the five Gulf coast states. Net cash from operating activities relating to the Gulf of Mexico oil spill, on a post-tax
basis, amounted to an outflow of $564 million and $4,883 million in the third quarter and nine months of 2017 respectively.
For the same periods in 2016, the amount was an outflow of $2,326 million and $4,849 million respectively.
Top of page 19
BP p.l.c. Group results
Third quarter and nine months 2017
Note 2. Gulf of Mexico oil spill (continued)
(b) Provisions and other payables
Provisions
Movements in the remaining provision, which relates to litigation and claims, are shown in the table below.
$ million
At 1 July 2017 955
Net increase in provision 75
Reclassified to other payables (19)
Utilization (285)
At 30 September 2017 726
Movements in the remaining provision during the nine months are shown in the table below.
$ million
At 1 January 2017 2,442
Net increase in provision 437
Reclassified to other payables (709)
Utilization (1,444)
At 30 September 2017 726
The provision includes amounts for the future cost of resolving claims by individuals and businesses for damage to real or
personal property, lost profits or impairment of earning capacity and loss of subsistence use of natural resources.
PSC settlement
The provision for the cost associated with the 2012 Plaintiffs' Steering Committee (PSC) settlement reflects the latest
estimate for claims, including business economic loss claims and associated administration costs. However, the amounts
ultimately payable may differ from the amount provided and the timing of payments is uncertain.
The settlement programme's determination of business economic loss claims is now expected to be substantially complete by
the end of 2017. Nevertheless a significant number of claims determined by the settlement programme have been and continue
to be appealed by BP and/or the claimants. Depending upon the resolution of these claims under appeal, the amounts payable
may differ from those currently provided.
There is additional uncertainty in relation to the impact of the May 2017 Fifth Circuit opinion (on the policy addressing
the matching of revenue with expenses in relation to business economic loss claims)including on those business economic
loss claims that have not yet been determined and those that are under appeal within the settlement programme. This
includes uncertainty in relation to the impact of recently filed appeals of the district court's orders instructing the
settlement programme on how to implement the Fifth Circuit's opinion. See Legal proceedings on page 32 for further details
on the Fifth Circuit opinion and appeal of the district court's orders.
Amounts to resolve remaining claims under the PSC settlement are expected to be substantially paid by the end of 2018. The
timing of payments is uncertain, and in particular, will be impacted by how long it takes to resolve claims that have been
appealed and may be appealed in the future.
Other payables
Other payables include amounts payable under the 2012 agreement with the US government to resolve all federal criminal
claims arising from the incident, amounts payable under the consent decree and settlement agreement with the United States
and the five Gulf coast states for natural resource damages, state claims and Clean Water Act penalties, BP's remaining
commitment to fund the Gulf of Mexico Research Initiative, and amounts payable for certain economic loss and property
damage claims.
Further information on provisions, other payables, and contingent liabilities is provided in BP Annual Report and Form
20-F 2016 - Financial statements - Note 2.
Top of page 20
BP p.l.c. Group results
Third quarter and nine months 2017
Note 3. Non-current assets held for sale and events after the reporting period
In September, BP announced that it had agreed with Bridas Corporation (Bridas) to form a new integrated energy company by
combining their interests in the oil and gas producer Pan American Energy (PAE) and the refiner and marketer Axion Energy
(Axion) in a cash-free transaction. PAE is currently owned 60% by BP and 40% by Bridas. The new company, Pan American
Energy Group, will be owned equally by BP and Bridas. The transaction, which is subject to certain pre-closing conditions
being fulfilled, is expected to complete in the first quarter 2018. As a result, one sixth of BP's investment in PAE has
been classified as held for sale in the group balance sheet at 30 September 2017.
In April, BP announced its intention to divest its 50% shareholding in the Shanghai SECCO Petrochemical Company Limited
joint venture in China. During the quarter a number of steps in the regulatory process, and certain conditions precedent,
were completed and the investment has been classified as held for sale in the group balance sheet at 30 September 2017. We
expect to complete the transaction and receive estimated proceeds of $1.4 billion in the fourth quarter.
On 30 October, we completed the initial public offering of common units in our subsidiary, BP Midstream Partners LP. As a
result of the initial public offering, we received net proceeds of around $0.7 billion.
Note 4. Analysis of replacement cost profit (loss) before interest and tax and
reconciliation to profit (loss) before taxation
Third Second Third Nine Nine
quarter quarter quarter months months
$ million 2017 2017 2016 2017 2016
Upstream 1,242 795 1,196 3,293 (118)
Downstream 2,175 1,567 978 5,448 4,263
Rosneft 137 279 120 515 432
Other businesses and corporate(a) (460) (721) (441) (1,612) (7,040)
3,094 1,920 1,853 7,644 (2,463)
Consolidation adjustment - UPII* (130) 135 17 (63) (64)
RC profit (loss) before interest and tax* 2,964 2,055 1,870 7,581 (2,527)
Inventory holding gains (losses)*
Upstream 13 1 (13) 8 41
Downstream 520 (579) (35) 39 926
Rosneft (net of tax) 24 (8) (12) (10) 29
Profit (loss) before interest and tax 3,521 1,469 1,810 7,618 (1,531)
Finance costs 511 487 433 1,458 1,241
Net finance expense relating to pensions and
other post-retirement benefits 55 54 48 162 140
Profit (loss) before taxation 2,955 928 1,329 5,998 (2,912)
RC profit (loss) before interest and tax*
US 428 302 (15) 1,243 (6,665)
Non-US 2,536 1,753 1,885 6,338 4,138
2,964 2,055 1,870 7,581 (2,527)
(a) Includes costs related to the Gulf of Mexico oil spill. See Note 2 for further information.
Top of page 21
BP p.l.c. Group results
Third quarter and nine months 2017
Note 5. Segmental analysis
Sales and other operating revenues Third Second Third Nine Nine
quarter quarter quarter months months
$ million 2017 2017 2016 2017 2016
By segment
Upstream 10,969 10,493 8,452 32,789 24,059
Downstream 54,881 52,195 43,488 157,156 120,849
Other businesses and corporate 378 326 425 989 1,243
66,228 63,014 52,365 190,934 146,151
Less: sales and other operating revenues
between segments
Upstream 5,312 6,161 4,952 17,250 12,886
Downstream 765 208 175 887 768
Other businesses and corporate 133 134 191 405 496
6,210 6,503 5,318 18,542 14,150
Third party sales and other operating revenues
Upstream 5,657 4,332 3,500 15,539 11,173
Downstream 54,116 51,987 43,313 156,269 120,081
Other businesses and corporate 245 192 234 584 747
Total sales and other operating revenues 60,018 56,511 47,047 172,392 132,001
By geographical area
US 21,853 21,577 18,853 64,582 50,130
Non-US 44,212 41,103 31,762 125,335 91,390
66,065 62,680 50,615 189,917 141,520
Less: sales and other operating revenues
between areas 6,047 6,169 3,568 17,525 9,519
60,018 56,511 47,047 172,392 132,001
Depreciation, depletion and amortization Third Second Third Nine Nine
quarter quarter quarter months months
$ million 2017 2017 2016 2017 2016
Upstream
US 1,154 1,133 1,027 3,524 3,180
Non-US 2,154 2,090 1,879 6,298 5,976
3,308 3,223 2,906 9,822 9,156
Downstream
US 222 219 217 657 637
Non-US 287 274 275 840 821
509 493 492 1,497 1,458
Other businesses and corporate
US 17 16 16 49 51
Non-US 70 61 82 171 198
87 77 98 220 249
3,904 3,793 3,496 11,539 10,863
Note 6. Production and similar taxes
Third Second Third Nine Nine
quarter quarter quarter months months
$ million 2017 2017 2016 2017 2016
US (69) 41 32 8 117
Non-US 347 148 180 765 367
278 189 212 773 484
Top of page 22
BP p.l.c. Group results
Third quarter and nine months 2017
Note 7. Earnings per share and shares in issue
Basic earnings per ordinary share (EpS) amounts are calculated by dividing the profit for the period attributable to
ordinary shareholders by the weighted average number of ordinary shares outstanding during the period.
The calculation of EpS is performed separately for each discrete quarterly period, and for the year-to-date period. As a
result, the sum of the discrete quarterly EpS amounts in any particular year-to-date period may not be equal to the EpS
amount for the year-to-date period.
For the diluted EpS calculation the weighted average number of shares outstanding during the period is adjusted for the
number of shares that are potentially issuable in connection with employee share-based payment plans using the treasury
stock method.
Third Second Third Nine Nine
quarter quarter quarter months months
$ million 2017 2017 2016 2017 2016
Results for the period
Profit (loss) for the period attributable to
BP shareholders 1,769 144 1,620 3,362 (382)
Less: preference dividend - 1 - 1 1
Profit (loss) attributable to BP ordinary
shareholders 1,769 143 1,620 3,361 (383)
Number of shares (thousand)(a)(b)
Basic weighted average number of
shares outstanding 19,756,117 19,686,613 18,824,739 19,654,608 18,660,397
ADS equivalent 3,292,686 3,281,102 3,137,456 3,275,768 3,110,066
Weighted average number of shares
outstanding used to calculate
diluted earnings per share 19,866,745 19,783,548 18,920,920 19,771,579 18,660,397
ADS equivalent 3,311,124 3,297,258 3,153,486 3,295,263 3,110,066
Shares in issue at period-end 19,797,657 19,738,566 18,912,989 19,797,657 18,912,989
ADS equivalent 3,299,609 3,289,761 3,152,164 3,299,609 3,152,164
(a) Excludes treasury shares and includes certain shares that will be issued in the future under employee share-based payment plans.
(b) If the inclusion of potentially issuable shares would decrease loss per share, the potentially issuable shares are excluded from the weighted average number of shares outstanding used to calculate diluted earnings per share.
Note 8. Dividends
Dividends payable
BP today announced an interim dividend of 10.00 cents per ordinary share which is expected to be paid on 21 December 2017
to shareholders and American Depositary Share (ADS) holders on the register on 10 November 2017. The corresponding amount
in sterling is due to be announced on 11 December 2017, calculated based on the average of the market exchange rates for
the four dealing days commencing on 5 December 2017. Holders of ADSs are expected to receive $0.600 per ADS (less
applicable fees). A scrip dividend alternative is available, allowing shareholders to elect to receive their dividend in
the form of new ordinary shares and ADS holders in the form of new ADSs. Details of the third quarter dividend and
timetable are available at bp.com/dividends and details of the scrip dividend programme are available at bp.com/scrip.
Third Second Third Nine Nine
quarter quarter quarter months months
2017 2017 2016 2017 2016
Dividends paid per ordinary share
cents 10.000 10.000 10.000 30.000 30.000
pence 7.621 7.756 7.558 23.536 21.487
Dividends paid per ADS (cents) 60.00 60.00 60.00 180.00 180.00
Scrip dividends
Number of shares issued (millions) 51.3 70.1 130.0 236.5 418.8
Value of shares issued ($ million) 298 420 714 1,360 2,148
Top of page 23
BP p.l.c. Group results
Third quarter and nine months 2017
Note 9. Net Debt*
Net debt ratio * Third Second Third Nine Nine
quarter quarter quarter months months
$ million 2017 2017 2016 2017 2016
Gross debt 65,784 63,004 58,997 65,784 58,997
Fair value (asset) liability of hedges related
to finance debt(a) (227) 60 (1,113) (227) (1,113)
65,557 63,064 57,884 65,557 57,884
Less: cash and cash equivalents 25,780 23,270 25,520 25,780 25,520
Net debt 39,777 39,794 32,364 39,777 32,364
Equity 100,138 98,461 92,797 100,138 92,797
Net debt ratio 28.4% 28.8% 25.9% 28.4% 25.9%
Analysis of changes in net debt Third Second Third Nine Nine
quarter quarter quarter months months
$ million 2017 2017 2016 2017 2016
Opening balance
Finance debt 63,004 61,832 55,727 58,300 53,168
Fair value (asset) liability of hedges related to
finance debt(a) 60 597 (1,279) 697 379
Less: cash and cash equivalents 23,270 23,794 23,517 23,484 26,389
Opening net debt 39,794 38,635 30,931 35,513 27,158
Closing balance
Finance debt 65,784 63,004 58,997 65,784 58,997
Fair value (asset) liability of hedges related to
finance debt(a) (227) 60 (1,113) (227) (1,113)
Less: cash and cash equivalents 25,780 23,270 25,520 25,780 25,520
Closing net debt 39,777 39,794 32,364 39,777 32,364
Decrease (increase) in net debt 17 (1,159) (1,433) (4,264) (5,206)
Movement in cash and cash equivalents
(excluding exchange adjustments) 2,364 (726) 1,990 1,781 (698)
Net cash outflow (inflow) from financing
(excluding share capital and dividends) (1,962) 42 (3,338) (5,031) (4,097)
Other movements (186) (13) 29 (265) 424
Movement in net debt before exchange effects 216 (697) (1,319) (3,515) (4,371)
Exchange adjustments (199) (462) (114) (749) (835)
Decrease (increase) in net debt 17 (1,159) (1,433) (4,264) (5,206)
(a) Derivative financial instruments entered into for the purpose of managing interest rate and foreign currency exchange risk associated with net debt with a fair value liability position of $883 million (second quarter 2017 liability of $1,167 million and third quarter 2016 liability of $1,323 million) are not included in the calculation of net debt shown above as hedge accounting is not applied for these instruments.
Note 10. Inventory valuation
A provision of $501 million was held at 30 September 2017 ($635 million at 30 June 2017 and $509 million at 30 September
2016) to write inventories down to their net realizable value. The net movement credited to the income statement during the
third quarter 2017 was $131 million (second quarter 2017 was a charge of $132 million and third quarter 2016 was a credit
of $178 million).
Note 11. Statutory accounts
The financial information shown in this publication, which was approved by the Board of Directors on 30 October 2017, is
unaudited and does not constitute statutory financial statements. Audited financial information will be published in BP
Annual Report and Form 20-F2017. BP Annual Report and Form 20-F 2016 has been filed with the Registrar of Companies in
England and Wales. The report of the auditor on those accounts was unqualified and did not contain a statement under
section 498(2) or section 498(3) of the UK Companies Act 2006.
Top of page 24
BP p.l.c. Group results
Third quarter and nine months 2017
Additional information
Capital expenditure*
Third Second Third Nine Nine
quarter quarter quarter months months
$ million 2017 2017 2016 2017 2016
Capital expenditure on a cash basis
Organic capital expenditure* 3,993 4,348 3,519 11,879 12,202
Inorganic capital expenditure*(a) 470 140 46 1,140 328
4,463 4,488 3,565 13,019 12,530
Third Second Third Nine Nine
quarter quarter quarter months months
$ million 2017 2017 2016 2017 2016
Organic capital expenditure by segment
Upstream
US 827 805 618 2,273 2,813
Non-US 2,601 3,005 2,433 7,945 8,011
3,428 3,810 3,051 10,218 10,824
Downstream
US 159 149 159 460 471
Non-US 356 316 272 992 798
515 465 431 1,452 1,269
Other businesses and corporate
US 10 3 3 34 7
Non-US 40 70 34 175 102
50 73 37 209 109
3,993 4,348 3,519 11,879 12,202
Organic capital expenditure by geographical area
US 996 957 780 2,767 3,291
Non-US 2,997 3,391 2,739 9,112 8,911
3,993 4,348 3,519 11,879 12,202
(a) Third quarter and nine months 2017 include amounts paid to acquire interests in Mauritania and Senegal and other items. Nine months 2017 also includes amounts paid to purchase an interest in the Zohr gas field in Egypt and in exploration blocks in Senegal.
Top of page 25
BP p.l.c. Group results
Third quarter and nine months 2017
Non-operating items*
Third Second Third Nine Nine
quarter quarter quarter months months
$ million 2017 2017 2016 2017 2016
Upstream
Impairment and gain (loss) on sale of businesses
and fixed assets(a) 18 (18) 1,908 (382) 1,912
Environmental and other provisions - - (8) - (8)
Restructuring, integration and rationalization costs (3) (19) (36) (20) (302)
Fair value gain (loss) on embedded derivatives 1 5 8 31 49
Other(b) (162) 11 (407) (156) (534)
(146) (21) 1,465 (527) 1,117
Downstream
Impairment and gain (loss) on sale of businesses
and fixed assets (35) 156 (11) 110 333
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