REG - BP PLC - 4Q17 part 1 of 1 <Origin Href="QuoteRef">BP.L</Origin> - Part 2
06/02/2018 07:05
- Part 2: For the preceding part double click ID:nRSF9787Da
BP's largest since 2004. DownstreamFuels 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 transitionBP 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.
Operating metrics Year 2017 (vs. Year 2016) Financial metrics Year 2017 (vs. Year 2016)
Tier 1 process safety events 18(+2) Underlying RC profit $6.2bn (+$3.6bn)
Reported recordable injury frequency 0.22(+3%) Operating cash flow excluding Gulf of Mexico oil spill payments $24.1bn(+$6.5bn)
Group production 3,595mboe/d(+10%) Organic capital expenditure $16.5bn (-$0.2bn)
Upstream production (excludes Rosneft segment) 2,466mboe/d (+12%) Gulf of Mexico oil spill payments $5.2bn(-$1.7bn)
Upstream unit production costs $7.11/boe (-16%) Divestment proceeds $3.4bn (+$0.8bn)
BP-operated Upstream operating efficiency* 80.5% Net debt ratio (gearing) 27.4% (+0.6)
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.
(b) Represents dividend announced in the quarter (vs. prior year quarter).
(c) Return on average capital employed is included as this is a full year report.
The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 34.
Top of page 6
BP p.l.c. Group results
Fourth quarter and full year 2017
Upstream
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.
Financial results
The replacement cost profit before interest and tax for the fourth quarter and full year was $1,928 million and $5,221
million respectively, compared with $692 million and $574 million for the same periods in 2016. The fourth quarter and full
year included a net non-operating charge of $144 million and $671 million respectively, compared with a net non-operating
gain of $636 million and $1,753 million for the same periods in 2016. Fair value accounting effects in the fourth quarter
and full year had an adverse impact of $151 million and a favourable impact of $27 million respectively, compared with an
adverse impact of $344 million and $637 million in the same periods of 2016.
After adjusting for non-operating items and fair value accounting effects, the underlying replacement cost profit before
interest and tax for the fourth quarter and full year was $2,223 million and $5,865 million respectively, compared with a
profit of $400 million and a loss of $542 million for the same periods in 2016. The result for the fourth quarter mainly
reflected higher liquids realizations and higher production including the impact of the Abu Dhabi onshore concession
renewal and major project* start-ups. The result for the full year reflected higher liquids realizations, and higher
production including the impact of the Abu Dhabi onshore concession renewal and major project start-ups, partly offset by
higher depreciation, depletion and amortization, and higher exploration write-offs.
Production
Production for the quarter was 2,581mboe/d, 18.1% higher than the fourth quarter of 2016. Fourth quarter production
reflects the fifth consecutive quarter of growth as well as the highest production since first quarter 2011. Underlying
production* for the quarter increased by 11.1%, due to the ramp-up of major projects. For the full year, production was
2,466mboe/d, 11.7% higher than 2016. Underlying production for the full year was 7.9% higher than 2016 due to major project
start-ups. The seven major project start-ups for 2017, together with the 2016 start-ups, contribute more than 500mboe/d of
new net production capacity.
Key events
On 21 November, BP agreed to sell a package of its interests in the Bruce assets in the North Sea to Serica Energy plc,
subject to regulatory approvals. The Bruce assets comprise the Bruce, Keith and Rhum fields, platforms and associated
subsea infrastructure.
On 18 December, BP completed the formation of Pan American Energy Group (PAEG) (BP 50%, Bridas Corporation 50%), which is a
combination of Pan American Energy and Axion Energy.
On 20 December, BP confirmed that production started from the Zohr gas field, offshore Egypt (ENI operator 60%, Rosneft
30%, BP 10%), BP's seventh major project to start in 2017.
Also on 20 December, BP and Statoil signed an extension agreement for the In Amenas production-sharing contract* with
Algerian state-owned energy company Sonatrach, which has been submitted to the Algerian authorities for ratification.
On 21 December, BP and Kosmos Energy (KE) were awarded five blocks offshore Côte d'Ivoire, under agreements with the
government of Côte d'Ivoire and state oil company Société Nationale d'Operations Pétrolières de la Côte d'Ivoire (PETROCI)
(BP 45%, KE 45%, PETROCI 10%).
In December Rosneft announced an agreement to develop resources within the Kharampurskoe and Festivalnoye licence areas in
Yamalo-Nenets Autonomous Okrug in northern Russia jointly with BP. Rosneft will hold a majority stake of 51% and BP will
hold a 49% stake. Completion of the deal is subject to regulatory approvals.
On 31 January, BP announced the oil discovery Capercaillie (BP 100%) and the oil discovery Achmelvich (BP 52.6%, Shell 28%,
and Chevron 19.4%) in the UK North Sea, both operated by BP. These two discoveries bring the total exploration discoveries
in 2017 to six, and our most successful exploration campaign in the UK North Sea since 2008.
Outlook
We expect full-year 2018 underlying production to be higher than 2017 due to the ramp-up of major projects. The actual
reported outcome will depend on the exact timing of project start-ups, acquisition and divestment activities, OPEC quotas
and entitlement impacts in our production-sharing agreements*. We expect first-quarter 2018 reported production to be
broadly flat with the fourth quarter 2017, reflecting continued growth from the 2017 major project start-ups, offset by the
expiration of the Abu Dhabi offshore concession and divestment impacts.
The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 34.
Top of page 7
BP p.l.c. Group results
Fourth quarter and full year 2017
Upstream (continued)
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.
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
Fourth quarter and full year 2017
Downstream
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.
Financial results
The replacement cost profit before interest and tax for the fourth quarter and full year was $1,773 million and $7,221
million respectively, compared with $899 million and $5,162 million for the same periods in 2016.
The fourth quarter and full year include a net non-operating gain of $382 million and $389 million respectively, compared
with a net non-operating charge of $77 million and $24 million for the same periods in 2016. Fair value accounting effects
had an adverse impact of $83 million in the fourth quarter and $135 million for the full year, compared with a favourable
impact of $99 million and an adverse impact of $448 million for the same periods in 2016.
After adjusting for non-operating items and fair value accounting effects, the underlying replacement cost profit before
interest and tax for the fourth quarter and full year was $1,474 million and $6,967 million respectively, compared with
$877 million and $5,634 million for the same periods in 2016.
Replacement cost profit before interest and tax for the fuels, lubricants and petrochemicals businesses is set out on page
9.
Fuels
The fuels business reported an underlying replacement cost profit before interest and tax of $976 million for the fourth
quarter and $4,872 million for the full year, compared with $417 million and $3,727 million for the same periods in
2016.The result for the quarter and full year reflects stronger refining performance. In addition, the full-year
improvement reflects growth in fuels marketing, partly offset by a weaker contribution from supply and trading.
The refining result for the quarter and full year reflects continued strong operational performance, capturing higher
industry refining margins, efficiency benefits as well as increased commercial optimization including the benefits of
higher levels of advantaged feedstock. The full year result was, however, impacted by a higher level of planned turnaround
activity.
The fuels marketing result for the full year reflects continued profit growth supported by higher premium fuel volumes
which grew by 6% and the continued rollout of our convenience partnership model to more than 220 sites, bringing the total
number of convenience partnership sites to 1,100 across our retail network.
We continue to grow in Mexico, where, by the end of 2017 we had more than 120 operational sites after becoming the first
international oil company to enter the deregulated fuel retail market earlier in the year.
In December, the Australian Competition and Consumer Commission announced that it intends to oppose our proposed
acquisition of Woolworths' fuel and convenience sites in Australia. We are currently considering our next steps.
On 1 February 2018, we entered into joint ventures with Shandong Dongming Petrochemical Group to develop a leading branded
retail fuels and convenience business in Shandong, Henan and Hebei provinces in China.
Lubricants
The lubricants business reported an underlying replacement cost profit before interest and tax of $375 million for the
fourth quarter and $1,479 million for the full year, compared with $357 million and $1,523 million for the same periods in
2016. The result for the quarter and full year reflects growth in premium brands and growth markets, offset by the adverse
lag impact of increasing base oil prices.
Petrochemicals
The petrochemicals business reported an underlying replacement cost profit before interest and tax of $123 million for the
fourth quarter and $616 million for the full year, compared with $103 million and $384 million for the same periods in
2016. The result for the quarter and full year reflects an improved margin environment, stronger margin optimization, the
benefits from our efficiency programmes and a lower level of turnaround activity. The result was, however, impacted by the
divestment of our interest in the SECCO joint venture, which completed in the fourth quarter and was classified as held for
sale in the group balance sheet at 30 September 2017.
Outlook
Looking to the first quarter of 2018, we expect higher discounts for North American heavy crude oil but lower industry
refining margins. In addition, we expect our turnaround activity to be lower in refining but significantly higher in
petrochemicals.
The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 34.
Top of page 9
BP p.l.c. Group results
Fourth quarter and full year 2017
Downstream (continued)
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.
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BP p.l.c. Group results
Fourth quarter and full year 2017
Rosneft
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
Financial results
Replacement cost profit before interest and tax for the fourth quarter and full year was $321 million and $836 million
respectively, compared with $158 million and $590 million for the same periods in 2016.
There were no non-operating items in the fourth quarter and full year of 2017, compared with a non-operating gain of $23
million in the same periods of 2016.
After adjusting for non-operating items, the underlying replacement cost profit before interest and tax for the fourth
quarter and full year was $321 million and $836 million respectively, compared with $135 million and $567 million for the
same periods in 2016.
Compared with the same periods in 2016, the results primarily reflected higher oil prices. The results for the fourth
quarter and the full year also benefited from a $163-million gain representing the BP share of a voluntary out-of-court
settlement between Sistema, Sistema-Invest and the Rosneft subsidiary, Bashneft. These positive effects were partially
offset by adverse foreign exchange effects.
In September 2017 the extraordinary general meeting adopted a resolution to pay interim dividends for the first half of
2017 of 3.83 Russian roubles per ordinary share. In October BP received a dividend of $124 million after the deduction of
withholding tax.
Key events
In October Rosneft completed the acquisition of a 30% stake for $1.1 billion in a concession agreement to develop the Zohr
field in Egypt from the Italian company Eni. Eni retains a 60% stake and BP holds the remaining 10%.
In December Rosneft announced an agreement to develop subsoil resources within the Kharampurskoe and Festivalnoye licence
areas in Yamalo-Nenets Autonomous Okrug in northern Russia jointly with BP. Rosneft will hold a majority stake of 51% and
BP will hold a 49% stake. Completion of the deal is subject to regulatory approvals.
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.
Top of page 11
BP p.l.c. Group results
Fourth quarter and full year 2017
Other businesses and corporate
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) beforeinterest 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)
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 fourth quarter and full year was $2,833 million and $4,445
million respectively, compared with $1,117 million and $8,157 million for the same periods in 2016.
The results included a net non-operating charge of $2,439 million for the fourth quarter and $2,847 million for the full
year, mainly relating to the Gulf of Mexico oil spill, compared with a net non-operating charge of $693 million and $6,919
million for the same periods in 2016. See Note 2 on page 17 for more information on the Gulf of Mexico oil spill.
After adjusting for non-operating items, the underlying replacement cost loss before interest and tax for the fourth
quarter and full year was $394 million and $1,598 million respectively, compared with $424 million and $1,238 million for
the same periods in 2016. The underlying charge for the full year was impacted by weaker business results, higher corporate
costs and adverse foreign exchange effects which had a favourable effect in 2016.
Alternative energy
The net ethanol-equivalent production (which includes ethanol and sugar) for the fourth quarter and full year was 188
million litres and 776 million litres respectively, compared with 98 million litres and 733 million litres for the same
periods in 2016.
Net wind generation capacity*(a) was 1,432MW at 31 December 2017 compared with 1,474MW at 31 December 2016. BP's net share
of wind generation for the fourth quarter and full year was 1,148GWh and 4,004GWh respectively, compared with 1,154GWh and
4,389GWh for the same periods in 2016.
(a) Capacity figures for 2016 include 23MW in the Netherlands managed by our Downstream segment.
BP formed a strategic partnership with Lightsource, Europe's largest developer of large-scale solar projects, with the aim
of driving further growth of solar power development worldwide. Under the terms of the deal, which completed on 31 January
2018, BP acquired a 43% equity share in Lightsource for a total consideration of $200 million, payable over three years.
The move will combine BP's global scale, technology and trading capabilities with Lightsource's expertise in solar
development. The company will rebrand as Lightsource BP.
Outlook
In 2018, Other businesses and corporate average quarterly charges, excluding non-operating items, are expected to be around
$350 million although this will fluctuate from quarter to quarter.
The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 34.
Top of page 12
BP p.l.c. Group results
Fourth quarter and full year 2017
Financial statements
Group income statement
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.
Top of page 13
BP p.l.c. Group results
Fourth quarter and full year 2017
Group statement of comprehensive income
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)
Top of page 14
BP p.l.c. Group results
Fourth quarter and full year 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 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
Top of page 15
BP p.l.c. Group results
Fourth quarter and full year 2017
Group balance sheet
31 December 31 December
$ million 2017 2016
Non-current assets
Property, plant and equipment 129,471
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