Bp PLC 6-K, filed Nov 2, 2021
Bp PLC (BP)
6-K
2021-11-02
For: 2021-11-02
View Original
Added on
April 08, 2026
About this 6-K
Bp PLC filed this 6-K on November 2, 2021.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
for the
period ended 2 November,
2021
BP p.l.c.
(Translation
of registrant's name into English)
1 ST JAMES'S SQUARE, LONDON, SW1Y 4PD, ENGLAND
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file
annual
reports
under cover Form 20-F or Form 40-F.
Form
20-F |X| Form 40-F
---------------
----------------
Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act
of
1934.
Yes No
|X|
---------------
--------------
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Exhibit
1.1
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3Q21
SEA Part 1 of 1 dated 2 November 2021
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Exhibit 1.1
Top of
page 1
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FOR IMMEDIATE RELEASE
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London 2 November 2021
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BP p.l.c. Group results
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Third quarter and nine months 2021
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“For
a printer friendly version of this announcement please click on the
link below to open a PDF version of the
announcement”
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Reducing net debt, growing distributions, executing
strategy
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Financial summary
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Third
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Second
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Third
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Nine
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Nine
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|||||
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quarter
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quarter
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quarter
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months
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months
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|||||
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$ million
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2021
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2021
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2020
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2021
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2020
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|||||
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Profit (loss) for the period attributable to bp
shareholders
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(2,544)
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3,116
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(450)
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5,239
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(21,663)
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Inventory holding (gains) losses*, net of tax
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(390)
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(736)
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(194)
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(2,468)
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2,734
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Replacement cost (RC) profit (loss)*
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(2,934)
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2,380
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(644)
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2,771
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(18,929)
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Net
(favourable) adverse impact of adjusting items*(a), net of
tax
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6,256
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418
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730
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5,979
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13,124
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Underlying RC profit (loss)*
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3,322
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2,798
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86
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8,750
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(5,805)
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Operating cash flow*
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5,976
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5,411
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5,204
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17,496
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9,893
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Capital expenditure*
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(2,903)
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(2,514)
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(3,636)
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(9,215)
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(10,564)
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Divestment
and other proceeds(b)
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313
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215
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597
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5,367
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2,413
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Net issue (repurchase) of shares
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(926)
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(500)
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—
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(1,426)
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(776)
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Net
debt*(c)
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31,971
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32,706
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40,379
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31,971
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40,379
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Announced dividend per ordinary share (cents per
share)
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5.46
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5.46
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5.25
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16.17
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21.00
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||
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Underlying RC profit (loss) per ordinary share*
(cents)
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16.48
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13.80
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0.42
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43.22
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(28.72)
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Underlying RC profit (loss) per ADS* (dollars)
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0.99
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0.83
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0.03
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2.59
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(1.72)
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●
Strong underlying results and cash flow underpinning continued net
debt reduction
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●
Further $1.25 billion buyback planned – delivering on
commitment to distributions
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●
Six-year target for major project delivery completed on schedule
and around 15% under-budget
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●
Continued momentum across strategic focus areas
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This has been another good quarter for bp - our businesses are
generating strong underlying earnings and cash flow while
maintaining their focus on safe and reliable operations. Rising
commodity prices certainly helped, but I am most pleased that
quarter by quarter, we’re doing what we said we would -
delivering significant cash to strengthen our finances, grow
distributions to shareholders and invest in our strategic
transformation. This is what we mean by performing while
transforming.
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Bernard Looney
Chief executive officer
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(a)
Prior to 2021
adjusting items were reported under two different headings –
non-operating items and fair value accounting effects*. See page 30
for more information.
(b)
Divestment proceeds
are disposal proceeds as per the condensed group cash flow
statement. Other proceeds were $675 million from the sale of a 49%
interest in a controlled affiliate holding certain refined product
and crude logistics assets onshore US in the nine months 2021, $481
million in relation to the sale of an interest in bp's UK retail
property portfolio in the third quarter and nine months 2020 and
also $455 million in relation to TANAP pipeline refinancing in the
nine months 2020. There are no other proceeds in the third quarter
2021.
(c)
See Note 9 for more
information.
RC profit (loss), underlying RC profit (loss) and net debt are
non-GAAP measures. Inventory holding (gains) losses and adjusting
items are non-GAAP adjustments.
* For items marked with an asterisk throughout this document,
definitions are provided in the Glossary on page
35.
Top of
page 2
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Highlights
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Strong underlying results and cash flow underpins continued net
debt reduction
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●
Underlying
replacement cost profit* was $3.3 billion, compared with
$2.8 billion for the previous quarter. This result was driven
by higher oil and gas realizations, higher refining availability
and throughput enabling the capture of a stronger environment and a
stronger gas marketing and trading result, partly offset by a
higher underlying tax charge.
●
Reported loss for the quarter was $2.5 billion, compared with
a $3.1 billion profit for the second quarter 2021. This was
driven by significant adverse fair value accounting effects* of
$6.1 billion pre-tax, primarily due to the exceptional
increase in forward gas prices towards the end of the quarter.
Under IFRS, reported earnings include the mark-to-market value of
the hedges used to risk-manage LNG contracts, but not of the LNG
contracts themselves. This mismatch at the end of the third quarter
is expected to unwind if prices decline and as the cargoes are
delivered. The underlying result is adjusted to remove this
mismatch.
●
Operating cash
flow* of $6.0 billion includes a working capital* build of
$1.8 billion (after adjusting for inventory holding gains and
fair value accounting effects).
●
bp
received $5.4 billion of divestment and other proceeds in the
first nine months including $0.3 billion during the third
quarter. bp now expects proceeds of $6-7 billion by the end of
2021.
●
Net debt* fell to
$32.0 billion at the end of the third quarter.
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Further $1.25 billion share buyback planned - delivering on
commitment to distributions
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●
bp is committed to
the disciplined execution of its financial frame with a resilient
dividend the first priority. For the third quarter bp has announced
a dividend of 5.46 cents per ordinary share payable in the fourth
quarter – unchanged following the 4% increase announced with
second quarter results.
●
With second quarter
results, bp announced an intention to execute a buyback of $1.4
billion from first half 2021 surplus cash flow* of $2.4 billion.
This programme was completed on 1 November 2021 with
$0.9 billion executed during the third quarter.
●
Taking into account
the cumulative level of and outlook for surplus cash flow and
subject to maintaining a strong investment grade credit rating, the
board remains committed to using 60% of 2021 surplus cash flow for
share buybacks and plans to allocate the remaining 40% to continue
strengthening the balance sheet.
●
Recognizing third
quarter surplus cash flow of $0.9 billion and reflecting
confidence in the outlook bp intends to execute a further buyback
of $1.25 billion prior to announcing its fourth quarter 2021
results. bp expects to outline plans for the final tranche of
buybacks from 2021 surplus cash flow at the time of such
results.
●
On average, based
on bp’s current forecasts, at around $60 per barrel Brent and
subject to the board’s discretion each quarter, bp continues
to expect to be able to deliver buybacks of around $1.0 billion per
quarter and have capacity for an annual increase in the dividend
per ordinary share of around 4% through 2025.
●
The board will take
into account factors including the cumulative level of and outlook
for surplus cash flow, the cash balance point* and the maintenance
of a strong investment grade credit rating in setting the dividend
per ordinary share and the buyback each quarter.
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Continued momentum across our strategic focus areas
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●
In resilient and
focused hydrocarbons, bp delivered its six-year programme of major
project* execution, on average around 15% under-budget, hitting its
target of bringing online 900 thousand barrels oil equivalent per
day of new production by 2021. Six major projects have now come
online in 2021, including two in the third quarter - Matapal,
offshore Trinidad, under budget and ahead of its 2022 schedule, and
Thunder Horse South Expansion Phase 2 in the Gulf of
Mexico.
●
Operational
performance in resilient and focused hydrocarbons was robust.
Relative to the second quarter, upstream* reported production rose
by 4%, hydrocarbon plant reliability* increased to 95.4% and
refining availability* increased to 95.6%.
●
In convenience and
mobility, bp delivered record year-to-date convenience gross
margin*; strong growth in next-gen mobility, with 45% growth in
electrons sold into EV charging compared to last quarter; and
record year-to-date underlying earnings in China, a key growth
market.
●
In low carbon,
confidence in bp's 2025 target of 20GW developed renewables to FID*
has been strengthened with a further 2GW added to the renewables
pipeline* and Lightsource bp’s announcement of their
increased 25GW development target for 2025.
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Underpinned by the disciplined execution of our financial frame, we
have delivered another quarter of strong underlying earnings and
cash flow. We are maintaining a resilient dividend, have reduced
net debt for the sixth consecutive quarter, are demonstrating
capital discipline and are delivering on our distribution
commitment with a further $1.25 billion of share buybacks
planned.
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Murray Auchincloss
Chief financial officer
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The commentary above contains forward-looking statements and should
be read in conjunction with the cautionary statement on page
41.
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Top of
page 3
Financial results
At 31
December 2020, the group's reportable segments were Upstream,
Downstream and Rosneft. From the first quarter of 2021, the group's
reportable segments are gas & low carbon energy, oil production
& operations, customers & products, and Rosneft.
Comparative information for 2020 has been restated to reflect the
changes in reportable segments. For more information see note 1
Basis of preparation - Change in
segmentation.
In
addition to the highlights on page 2:
●
Loss attributable
to bp shareholders in the third quarter was $2,544 million
with a profit of $5,239 million for the nine months compared
with losses of $450 million and $21,663 million in the
third quarter and nine months of 2020 respectively. Underlying
replacement cost profits have improved as result of higher oil and
gas prices and refining margins and strong trading results, with
adjusting items* being the other significant driver of the
movements in the loss/profit attributable to bp
shareholders.
●
Adjusting items in
the third quarter and nine months were an adverse pre-tax impact of
$6,416 million and $5,712 million respectively compared
with an adverse pre-tax impact of $714 million and
$16,644 million in the same periods of 2020. The third quarter
and nine months 2021 charges were driven by adverse fair value
accounting effects* of $6,101 million in the third quarter
primarily arising from the exceptional increase in forward gas
prices towards the end of the quarter. The 2020 nine months charge
was primarily driven by net impairment charges of $12,912 million
which were mainly recorded in the second quarter. Pre-tax net
impairment reversals of $2,483 million are included in the nine
months 2021 adjusting items total.
●
Capital
expenditure* in the third quarter and nine months was $2.9 billion
and $9.2 billion respectively, compared with $3.6 billion and $10.6
billion in the same periods of 2020.
●
At the end of the
third quarter, net debt* was $32.0 billion, compared to
$32.7 billion at the end of the second quarter 2021 and
$40.4 billion at the end of the third quarter
2020.
●
Operating cash
flow* was $6.0 billion for the third quarter, and
$17.5 billion for the nine months, compared with
$5.2 billion and $9.9 billion for the same periods of
2020. Third quarter and nine months 2021 includes $0.1 billion and
$0.8 billion respectively of cash flow relating to severance costs
associated with the reinvent programme.
●
The effective tax
rate (ETR) on RC profit or loss* for the third quarter and nine
months was -175% and 57% respectively, compared with -504% and 13%
for the same periods in 2020. Excluding adjusting items*, the
underlying ETR* for the third quarter and nine months was 35% and
31% respectively, compared with 64% and -10% for the same periods a
year ago. The lower underlying ETR for the third quarter reflects
changes in the geographical mix of profits. The underlying ETR for
the nine months is higher than the same period a year ago due to
the absence of the exploration write-offs with a limited deferred
tax benefit and the reassessment of deferred tax asset recognition.
ETR on RC profit or loss and underlying ETR are non-GAAP
measures.
Analysis of RC profit (loss) before interest and tax and
reconciliation to profit (loss) for the period
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
$ million
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
RC profit (loss) before interest and tax
|
|
|
|
|
|
|
|
|||||
|
gas
& low carbon energy
|
|
(4,135)
|
|
927
|
|
252
|
|
|
222
|
|
(6,430)
|
|
|
oil
production & operations
|
|
2,692
|
|
3,118
|
|
(156)
|
|
|
7,289
|
|
(14,649)
|
|
|
customers
& products
|
|
1,060
|
|
640
|
|
915
|
|
|
2,634
|
|
2,173
|
|
|
Rosneft
|
|
868
|
|
643
|
|
(278)
|
|
|
1,874
|
|
(419)
|
|
|
other
businesses & corporate
|
|
(750)
|
|
(425)
|
|
(42)
|
|
|
(1,853)
|
|
(867)
|
|
|
Consolidation
adjustment – UPII*
|
|
(42)
|
|
(31)
|
|
34
|
|
|
(60)
|
|
166
|
|
|
RC profit (loss) before interest and tax
|
|
(307)
|
|
4,872
|
|
725
|
|
|
10,106
|
|
(20,026)
|
|
|
Finance
costs and net finance expense relating to pensions and other
post-retirement benefits
|
|
(688)
|
|
(687)
|
|
(808)
|
|
|
(2,104)
|
|
(2,389)
|
|
|
Taxation on a RC basis
|
|
(1,740)
|
|
(1,567)
|
|
(418)
|
|
|
(4,561)
|
|
2,935
|
|
|
Non-controlling interests
|
|
(199)
|
|
(238)
|
|
(143)
|
|
|
(670)
|
|
551
|
|
|
RC profit (loss) attributable to bp shareholders*
|
|
(2,934)
|
|
2,380
|
|
(644)
|
|
|
2,771
|
|
(18,929)
|
|
|
Inventory holding gains (losses)*
|
|
500
|
|
953
|
|
233
|
|
|
3,183
|
|
(3,563)
|
|
|
Taxation (charge) credit on inventory holding gains and
losses
|
|
(110)
|
|
(217)
|
|
(39)
|
|
|
(715)
|
|
829
|
|
|
Profit (loss) for the period attributable to bp
shareholders
|
|
(2,544)
|
|
3,116
|
|
(450)
|
|
|
5,239
|
|
(21,663)
|
|
Top of
page 4
Analysis of underlying RC profit (loss) before interest and
tax
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
$ million
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
Underlying RC profit (loss) before interest and tax
|
|
|
|
|
|
|
|
|||||
|
gas
& low carbon energy
|
|
1,807
|
|
1,240
|
|
502
|
|
|
5,317
|
|
535
|
|
|
oil
production & operations
|
|
2,461
|
|
2,242
|
|
367
|
|
|
6,268
|
|
(6,451)
|
|
|
customers
& products
|
|
1,158
|
|
827
|
|
636
|
|
|
2,641
|
|
2,962
|
|
|
Rosneft
|
|
923
|
|
689
|
|
(177)
|
|
|
1,975
|
|
(255)
|
|
|
other
businesses & corporate
|
|
(373)
|
|
(305)
|
|
(121)
|
|
|
(848)
|
|
(773)
|
|
|
Consolidation
adjustment – UPII
|
|
(42)
|
|
(31)
|
|
34
|
|
|
(60)
|
|
166
|
|
|
Underlying RC profit (loss) before interest and tax
|
|
5,934
|
|
4,662
|
|
1,241
|
|
|
15,293
|
|
(3,816)
|
|
|
Finance
costs and net finance expense relating to pensions and other
post-retirement benefits
|
|
(513)
|
|
(485)
|
|
(610)
|
|
|
(1,579)
|
|
(1,955)
|
|
|
Taxation on an underlying RC basis
|
|
(1,900)
|
|
(1,141)
|
|
(402)
|
|
|
(4,294)
|
|
(585)
|
|
|
Non-controlling interests
|
|
(199)
|
|
(238)
|
|
(143)
|
|
|
(670)
|
|
551
|
|
|
Underlying RC profit (loss) attributable to bp
shareholders*
|
|
3,322
|
|
2,798
|
|
86
|
|
|
8,750
|
|
(5,805)
|
|
Reconciliations
of underlying RC profit attributable to bp shareholders to the
nearest equivalent IFRS measure are provided on page 1 for the
group and on pages 6-14 for the segments.
Operating Metrics
|
Operating metrics
|
|
Nine months 2021
|
|
vs Nine months 2020
|
|
Tier 1 and tier 2 process safety events*
|
|
49
|
|
-16
|
|
Reported recordable injury frequency*
|
|
0.145
|
|
+15.4%
|
|
Group production (mboe/d)(a)
|
|
3,269
|
|
-7.7%
|
|
upstream* production (mboe/d) (excludes Rosneft
segment)
|
|
2,180
|
|
-10.9%
|
|
upstream unit production costs*(b)
($/boe)
|
|
6.96
|
|
+10.4%
|
|
bp-operated hydrocarbon plant reliability*
|
|
94.3%
|
|
+0.5
|
|
bp-operated refining availability*(a)
|
|
94.6%
|
|
-1.4
|
(a)
See Operational
updates on pages 6, 8 and 10.
(b)
Reflecting lower
volumes and higher costs including phasing impacts.
Top of
page 5
Outlook & Guidance
Macro outlook
●
Oil prices have
continued to increase, and inventories have reduced back towards
pre-pandemic levels. We expect oil prices to be supported by
continued inventory draw-down, with the potential for additional
demand from gas to oil switching.
●
OPEC+ decision
making on production levels continues to be a key factor in oil
prices and market rebalancing.
●
Gas markets were
very strong in the quarter and we expect they will remain tight
during the period of peak winter demand.
●
In the fourth
quarter industry refining margins are expected to be lower compared
to the third quarter driven by seasonal demand.
4Q21 guidance
●
Looking ahead, we
expect fourth quarter reported upstream* production to be higher
than the third quarter reflecting major project* ramp-up, mainly in
gas regions, recovery from seasonal maintenance activity and
continuing impacts from Hurricane Ida on our non-operated
production in the US Gulf of Mexico. Within this, we expect
production from both oil production & operations and gas &
low carbon to be higher.
●
In our customer
businesses, we expect lower product demand due to seasonal impacts
and continued base oil tightness and additive supply shortages in
Castrol. In products, refining margins are expected to be lower in
the fourth quarter driven by seasonal demand and we expect energy
prices to remain under pressure and maintenance activity to remain
high.
2021 Guidance
In
addition to the guidance on page 2:
●
We now expect
divestment and other proceeds for the year of $6-7 billion. Our
target of $25 billion of divestment and other proceeds between the
second half of 2020 and 2025 is now underpinned by agreed or
completed transactions of around $15.2 billion with over $10
billion of proceeds received.
●
The underlying ETR*
for 2021 is now expected to be below 35% but is sensitive to the
impact that volatility in the current price environment may have on
the geographical mix of the group’s profits and
losses.
●
For full year 2021
we continue to expect reported upstream production to be lower than
2020 due to the impact of the ongoing divestment programme.
However, we expect upstream underlying production* to be slightly
higher than 2020 with the ramp-up of major projects, primarily in
gas regions, partly offset by the impacts of reduced capital
investment and decline in lower-margin gas assets.
●
bp continues to
expect capital expenditure*, including inorganic capital
expenditure*, of around $13 billion in 2021.
●
Depreciation,
depletion and amortization is still expected to be at a similar
level to 2020.
●
Gulf of Mexico oil
spill payments for the year are still expected to be around $1.5
billion pre-tax.
●
The other
businesses & corporate underlying annual charge is still
expected to be in the range of $1.2-1.4 billion for 2021. The
quarterly charges may vary from quarter to quarter.
COVID-19 Update
●
bp's future
financial performance, including cash flows and net debt, will be
impacted by the extent and duration of the current market
conditions and the effectiveness of the actions that it and others
take, including its financial interventions. It is difficult to
predict when all current supply and demand imbalances will be
resolved and what the ultimate impact of COVID-19 will
be.
●
bp continues to
take steps to protect and support its staff through the pandemic.
Precautions in operations and offices together with enhanced
support and guidance to staff continue with a focus on safety,
health and hygiene, homeworking and mental health. Decisions on
working practices and return to office based working are being
taken with caution and in compliance with local and national
guidelines and regulations.
|
The commentary above contains forward-looking statements and should
be read in conjunction with the cautionary statement on page
41.
|
Top of
page 6
gas & low carbon energy
Financial results
●
The replacement
cost loss before interest and tax for the third quarter and profit
for the nine months was $4,135 million and $222 million
respectively, compared with a profit of $252 million and a loss of
$6,430 million for the same periods in 2020. The third quarter and
nine months included an adverse impact of net adjusting items* of
$5,942 million and $5,095 million respectively, compared with an
adverse impact of net adjusting items of $250 million and $6,965
million for the same periods in 2020.
●
After excluding
adjusting items, the underlying replacement cost profit before
interest and tax* for the third quarter and nine months was $1,807
million and $5,317 million respectively, compared with a profit of
$502 million and $535 million for the same periods in 2020.
Adjusting items* include adverse fair value accounting effects* of
$5,808 million, primarily arising from the exceptional increase in
forward gas prices towards the end of the quarter. Under IFRS,
reported earnings include the mark-to-market value of the hedges
used to risk-manage forward LNG contracts, but not of the LNG
contracts themselves. This mismatch at the end of the third quarter
is expected to unwind if prices decline and as the cargoes are
delivered. The underlying result is adjusted to remove this
mismatch.
●
The underlying
replacement cost profit for the third quarter, compared with the
same period in 2020, reflects higher realizations, the higher
depreciation, depletion and amortization charge, and the very
strong trading result. For the nine months, compared with the same
period in 2020, the underlying replacement cost profit mainly
reflects higher realizations, the higher depreciation, depletion
and amortization charge, lower exploration write-offs and the
exceptional trading result.
Operational update
●
Reported production
for the quarter and nine months were 889mboe/d and 891mboe/d
respectively, higher than the same periods in 2020 due to growth in
underlying production*, partly offset by the partial divestment in
Oman. Underlying production was higher, mainly due to major
project* start-ups, partially offset by base decline.
●
Renewables
pipeline* at the end of the quarter was 23GW (bp net). The
renewables pipeline grew by 2GW (bp net) in the quarter due to
increases in Lightsource bp's (LSbp's) pipeline and 12.1GW (bp net)
in the nine months, as a result of growth in LSbp and the
acquisition of a 9GW development pipeline from 7X
Energy.
Strategic progress
gas
●
On 20 September, bp
Trinidad and Tobago announced that its Matapal subsea gas
development safely achieved first gas seven months ahead of
schedule and under budget.
●
On 16 September,
Gas Natural Açu (GNA), a joint venture between bp, Prumo,
Siemens and SPIC Brasil, announced the start of commercial
operations at GNA I, a LNG to power thermoelectric plant located in
Porto do Açu, Rio de Janeiro, Brazil. The project has a 1.3GW
capacity.
●
On 6 September, bp
Singapore announced its first carbon offset LNG cargo had been
delivered to CPC Corporation, Taiwan, sourced from bp’s LNG
portfolio.
●
On 7 October, bp
China signed a 10-year pipeline gas supply agreement with Shenzhen
Gas. Starting in 2023, bp has agreed to provide up to 300,000
tonnes per year of pipeline gas. The supply will be re-gasified
through Guangdong Dapeng LNG’s receiving terminal, in which
bp has a 30% stake.
low carbon energy
●
On 20 September,
Lightsource bp announced its new global growth strategy of
developing 25GW of solar projects by 2025.
●
On 16 September, bp
announced a strategic partnership with ADNOC and Masdar. Through
this partnership we aim to jointly develop a range of low carbon
energy projects, including the development of green and blue
hydrogen hubs.
●
On 19 October, the
East Coast Cluster was selected as one of the UK’s first two
carbon capture and storage projects by the UK government. The East
Coast Cluster is enabled by the Northern Endurance Partnership
– a collaboration between bp, Eni, Equinor, National Grid,
Shell and Total, with bp as operator.
●
On 7 July, bp
closed its transaction with US solar developer 7X Energy to acquire
9GW of solar development projects. Projects with a combined
generating capacity of 2.2GW are expected to reach final investment
decision (FID) by 2025, with further projects expected to progress
by 2030.
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
$ million
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
Profit (loss) before interest and tax
|
|
(4,120)
|
|
931
|
|
259
|
|
|
263
|
|
(6,421)
|
|
|
Inventory holding (gains) losses*
|
|
(15)
|
|
(4)
|
|
(7)
|
|
|
(41)
|
|
(9)
|
|
|
RC profit (loss) before interest and tax
|
|
(4,135)
|
|
927
|
|
252
|
|
|
222
|
|
(6,430)
|
|
|
Net (favourable) adverse impact of adjusting items
|
|
5,942
|
|
313
|
|
250
|
|
|
5,095
|
|
6,965
|
|
|
Underlying RC profit (loss) before interest and tax
|
|
1,807
|
|
1,240
|
|
502
|
|
|
5,317
|
|
535
|
|
|
Taxation on an underlying RC basis
|
|
(389)
|
|
(244)
|
|
(249)
|
|
|
(1,168)
|
|
(621)
|
|
|
Underlying RC profit (loss) before interest
|
|
1,418
|
|
996
|
|
253
|
|
|
4,149
|
|
(86)
|
|
Top of
page 7
gas & low carbon energy (continued)
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
$ million
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|||||
|
Total depreciation, depletion and amortization
|
|
1,230
|
|
1,115
|
|
746
|
|
|
3,199
|
|
2,736
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Exploration write-offs
|
|
|
|
|
|
|
|
|||||
|
Exploration
write-offs(a)
|
|
14
|
|
21
|
|
65
|
|
|
41
|
|
1,699
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Adjusted EBITDA*
|
|
|
|
|
|
|
|
|||||
|
Total adjusted EBITDA
|
|
3,051
|
|
2,376
|
|
1,311
|
|
|
8,557
|
|
4,300
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Capital expenditure*
|
|
|
|
|
|
|
|
|||||
|
gas
|
|
736
|
|
705
|
|
892
|
|
|
2,252
|
|
3,083
|
|
|
low
carbon energy(b)
|
|
336
|
|
42
|
|
43
|
|
|
1,452
|
|
55
|
|
|
Total capital expenditure
|
|
1,072
|
|
747
|
|
935
|
|
|
3,704
|
|
3,138
|
|
(a)
Third quarter and
nine months 2020 include a write-off of $2 million and $670 million
respectively, which have been classified within the
‘other’ category of adjusting items.
(b)
Nine months 2021
includes $712 million in respect of the remaining payment to
Equinor for our investment in our strategic US offshore wind
partnership and $326 million as a lease option fee deposit paid to
The Crown Estate in connection with our participation in the UK
Round 4 Offshore Wind Leasing together with our partner
EnBW.
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
Production (net of
royalties)(c)
|
|
|
|
|
|
|
|
|||||
|
Liquids* (mb/d)
|
|
109
|
|
109
|
|
92
|
|
|
110
|
|
96
|
|
|
Natural gas (mmcf/d)
|
|
4,520
|
|
4,440
|
|
4,343
|
|
|
4,527
|
|
4,490
|
|
|
Total hydrocarbons* (mboe/d)
|
|
889
|
|
875
|
|
841
|
|
|
891
|
|
870
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Average realizations*(d)
|
|
|
|
|
|
|
|
|||||
|
Liquids ($/bbl)
|
|
66.39
|
|
61.69
|
|
37.77
|
|
|
61.11
|
|
35.41
|
|
|
Natural gas ($/mcf)
|
|
5.26
|
|
4.14
|
|
2.99
|
|
|
4.44
|
|
3.21
|
|
|
Total hydrocarbons* ($/boe)
|
|
34.91
|
|
28.97
|
|
19.64
|
|
|
30.21
|
|
20.55
|
|
(c)
Includes bp’s
share of production of equity-accounted entities in the gas &
low carbon energy segment.
(d)
Realizations are
based on sales by consolidated subsidiaries only – this
excludes equity-accounted entities.
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
low carbon energy
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
|
|
|
|
|
|
|
|
|||||
|
Renewables (bp net, GW)
|
|
|
|
|
|
|
|
|||||
|
Installed renewables capacity*
|
|
1.7
|
|
1.6
|
|
1.2
|
|
|
1.7
|
|
1.2
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Developed
renewables to FID*(e)
|
|
3.6
|
|
3.5
|
|
3.1
|
|
|
3.6
|
|
3.1
|
|
|
Renewables pipeline
|
|
23.3
|
21.2
|
|
|
23.3
|
|
|||||
|
of which by geographical area:
|
|
|
|
|
|
|
|
|||||
|
Renewables
pipeline – Americas
|
|
16.8
|
|
15.3
|
|
|
|
16.8
|
|
|
||
|
Renewables
pipeline – Asia Pacific
|
|
1.1
|
|
0.8
|
|
|
|
1.1
|
|
|
||
|
Renewables
pipeline – Europe
|
|
5.2
|
|
5.1
|
|
|
|
5.2
|
|
|
||
|
Renewables
pipeline – Other
|
|
0.2
|
|
—
|
|
|
|
0.2
|
|
|
||
|
of which by technology:
|
|
|
|
|
|
|
|
|||||
|
Renewables
pipeline – offshore wind
|
|
3.7
|
|
3.7
|
|
|
|
3.7
|
|
|
||
|
Renewables
pipeline – solar
|
|
19.6
|
|
17.5
|
|
|
|
19.6
|
|
|
||
|
Total Developed renewables to FID and
Renewables pipeline(e)
|
|
26.9
|
|
24.7
|
|
|
|
26.9
|
|
|
||
(e) An
amendment of 0.2GW has been made to the amount presented for the
second quarter 2021 (previously Developed renewables to FID
3.7GW.)
Top of
page 8
oil production & operations
Financial results
●
The replacement
cost profit before interest and tax for the third quarter and nine
months was $2,692 million and $7,289 million respectively, compared
with a loss of $156 million and $14,649 million for the same
periods in 2020. The third quarter and nine months includes a
favourable impact of net adjusting items* of $231 million and
$1,021 million respectively, compared with an adverse impact of net
adjusting items of $523 million and $8,198 million for the same
periods in 2020.
●
After excluding
adjusting items, the underlying replacement cost profit before
interest and tax* for the third quarter and nine months was $2,461
million and $6,268 million respectively, compared with a profit of
$367 million and a loss of $6,451 million for the same periods in
2020.
●
The underlying
replacement cost profit for the third quarter, compared with the
same period in 2020, primarily reflects higher liquids and gas
realizations. For the nine months, compared with the same period in
2020, the underlying replacement cost profit mainly reflects higher
liquids and gas realizations, significantly lower exploration
write-offs, and lower volumes.
Operational update
●
Reported production
for the quarter was 1,313mboe/d, 6.3% lower than the third quarter
of 2020. This includes price impacts on PSA* and TSC* entitlement
volumes and the impact of BPX Energy divestments. Underlying
production* for the quarter was flat reflecting major project*
ramp-up offset by impacts from reduced capital investment, decline
and weather impacts in the US Gulf of Mexico.
●
Reported production
for the nine months was 1,289mboe/d, 18.3% lower than the same
period in 2020. This includes price impacts on PSA and TSC
entitlement volumes and the impact of divestments in Alaska and BPX
Energy. Underlying production for the nine months decreased by 6.1%
mainly due to impacts from reduced capital investment and
decline.
Strategic progress
●
On 28 September, bp
announced the start-up of its Thunder Horse South Expansion Phase 2
project in the deepwater Gulf of Mexico (bp 75% operator,
ExxonMobil 25%).
●
On 29 September, bp
announced it has agreed to sell a 25% participating interest in the
Shallow Water Absheron Peninsula (SWAP) exploration project in the
Azerbaijan sector of the Caspian Sea to LUKOIL. Subject to
approval, the transaction, with an effective date of 1 July 2021,
is expected to complete in the fourth quarter of 2021, following
which the participating interests will be: SOCAR Oil Affiliate 50%,
bp operator 25% and LUKOIL 25%.
●
Furthermore, Yermak
IJV (Rosneft 51%, bp 49%) secured access to two new license blocks,
Khoshgortyeganskiy and Kharayeganskiy, in the established West
Siberia basin.
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
$ million
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
Profit (loss) before interest and tax
|
|
2,691
|
|
3,112
|
|
(155)
|
|
|
7,297
|
|
(14,661)
|
|
|
Inventory holding (gains) losses*
|
|
1
|
|
6
|
|
(1)
|
|
|
(8)
|
|
12
|
|
|
RC profit (loss) before interest and tax
|
|
2,692
|
|
3,118
|
|
(156)
|
|
|
7,289
|
|
(14,649)
|
|
|
Net (favourable) adverse impact of adjusting items
|
|
(231)
|
|
(876)
|
|
523
|
|
|
(1,021)
|
|
8,198
|
|
|
Underlying RC profit (loss) before interest and tax
|
|
2,461
|
|
2,242
|
|
367
|
|
|
6,268
|
|
(6,451)
|
|
|
Taxation on an underlying RC basis
|
|
(1,220)
|
|
(939)
|
|
(247)
|
|
|
(2,888)
|
|
345
|
|
|
Underlying RC profit (loss) before interest
|
|
1,241
|
|
1,303
|
|
120
|
|
|
3,380
|
|
(6,106)
|
|
Top of
page 9
oil production & operations (continued)
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
$ million
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|||||
|
Total depreciation, depletion and amortization
|
|
1,767
|
|
1,559
|
|
1,814
|
|
|
4,900
|
|
6,001
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Exploration write-offs
|
|
|
|
|
|
|
|
|||||
|
Exploration
write-offs(a)
|
|
16
|
|
8
|
|
(15)
|
|
|
80
|
|
8,067
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Adjusted EBITDA*
|
|
|
|
|
|
|
|
|||||
|
Total adjusted EBITDA
|
|
4,244
|
|
3,809
|
|
2,166
|
|
|
11,248
|
|
6,316
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Capital expenditure*
|
|
|
|
|
|
|
|
|||||
|
Total capital expenditure
|
|
1,099
|
|
1,148
|
|
1,117
|
|
|
3,566
|
|
4,696
|
|
(a)
Nine months 2020
includes a write-off of $1,301 million which has been classified
within the ‘other’ category of adjusting
items.
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
Production (net of
royalties)(b)
|
|
|
|
|
|
|
|
|||||
|
Liquids* (mb/d)
|
|
975
|
|
938
|
|
1,037
|
|
|
970
|
|
1,171
|
|
|
Natural gas (mmcf/d)
|
|
1,961
|
|
1,786
|
|
2,115
|
|
|
1,853
|
|
2,365
|
|
|
Total hydrocarbons* (mboe/d)
|
|
1,313
|
|
1,245
|
|
1,402
|
|
|
1,289
|
|
1,578
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Average realizations*(c)
|
|
|
|
|
|
|
|
|||||
|
Liquids ($/bbl)
|
|
65.53
|
|
60.55
|
|
38.21
|
|
|
59.60
|
|
35.52
|
|
|
Natural gas ($/mcf)
|
|
5.61
|
|
3.90
|
|
1.42
|
|
|
4.59
|
|
1.31
|
|
|
Total hydrocarbons* ($/boe)
|
|
57.72
|
|
52.47
|
|
31.21
|
|
|
52.35
|
|
28.94
|
|
(b)
Includes bp’s
share of production of equity-accounted entities in the oil
production & operations segment.
(c)
Realizations are
based on sales by consolidated subsidiaries only – this
excludes equity-accounted entities.
Top of
page 10
customers & products
Financial results
●
The replacement
cost profit before interest and tax for the third quarter and nine
months was $1,060 million and $2,634 million respectively, compared
with $915 million and $2,173 million for the same periods in 2020.
The third quarter and nine months included an adverse impact of net
adjusting items* of $98 million and $7 million respectively,
compared with a favourable impact of net adjusting items of $279
million and an adverse impact of net adjusting items of $789
million for the same periods in 2020.
●
After excluding
adjusting items, the underlying replacement cost profit before
interest and tax* for the third quarter and nine months was $1,158
million and $2,641 million respectively, compared with $636 million
and $2,962 million for the same periods in 2020.
●
The customers &
products result for the third quarter reflects a materially
stronger performance, nearly double that of last year, primarily
driven by a stronger refining environment. The result for the nine
months, reflects a stronger customers performance, more than offset
by a lower trading result in products and absence of earnings from
our divested petrochemicals business.
●
customers –
convenience and mobility results, excluding Castrol, for the
quarter and nine months demonstrated resilient performance, albeit
with lower earnings than the same periods last year. These results
were supported by higher volumes and resilient fuel margins despite
rising crude prices, as well as strong convenience performance,
with record year-to-date gross margin*. Costs for both periods were
higher in support of the re-opening of some markets following COVID
and increased digital and marketing expenditure underpinning our
growth agenda.
Castrol
results in the quarter were lower than last year, with industry
base oil prices more than doubling and severe lockdown restrictions
in place across key Asian markets. For the nine months performance
was strong, with volumes and earnings materially higher than the
same period in 2020, and with China delivering record underlying
earnings.
●
products – the
products result for the quarter was materially stronger than last
year, with higher results in both refining and trading. The result
for the nine months was lower than last year due to an
exceptionally strong trading performance in the second quarter of
last year. In refining the result for the quarter and the nine
months was stronger due to higher utilization, which enabled the
capture of improved realized refining margins. This was partially
offset by a higher level of turnaround and maintenance activity and
increased energy prices.
Operational update
●
Utilization for the
quarter was around 9 percentage points higher than the same period
last year due to lower COVID related demand impacts. bp-operated
refining availability* for the third quarter and nine months was
95.6% and 94.6% respectively, lower compared with 96.2% and 96.0%
for the same periods last year, due to a higher level of
maintenance activity.
Strategic progress
●
In support of our
strategic agenda to redefine convenience, we have grown our
strategic convenience sites* to 2,050 at the end of the third
quarter. Additionally, we have:
●
expanded our
convenience partnership model with Albert Heijn, the leading
supermarket chain in the Netherlands, with plans to roll out a new
exclusive food-to-go offer to more than 100 retail sites by the end
of next year;
●
completed the
transaction to take full ownership of the Thorntons business,
positioning bp to be a leading convenience operator in the Midwest
US.
●
In next-gen
mobility, nearly half of our network is now either rapid or
ultra-fast charging and in the quarter we delivered 45% growth in
electrons sold compared to the prior quarter. In addition, in
October, our investment with Daimler and BMW in Digital Charging
Solutions completed.
●
In growth markets,
our fuels and mobility joint venture in India with Reliance,
Jio-bp, opened their first mobility station in October. The site
has a fully-integrated customer offer, including high-quality
additivised fuels, EV charging points, tailored convenience offers,
as well as our Castrol products and services. Jio-bp also announced
an agreement with EV demand partner, Swiggy, a leading food
delivery company, to roll out a network of battery swap
stations.
●
In Castrol, our
market leading position in advanced e-fluids, Castrol ON, was further strengthened
with more than two-thirds of the world’s major vehicle
manufacturers(a) having now
approved Castrol ON
products as part of their factory fill.
●
In
refining:
●
we announced plans
to invest $270 million at the Cherry Point refinery in the US, to
improve efficiency, reduce CO₂ emissions and increase its
renewable diesel production capability;
●
bp Castellón
in Spain, was the first refinery in the world to receive
accreditation from the Carbon Offsetting and Reduction Scheme for
International Aviation (CORSIA) for the production of sustainable
fuel for aviation.
(a)
Based on LMCA data for top 20 selling OEMs (total new car sales) in
2019.
Top of
page 11
customers & products (continued)
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
$ million
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
Profit (loss) before interest and tax
|
|
1,511
|
|
1,527
|
|
1,106
|
|
|
5,577
|
|
(1,273)
|
|
|
Inventory holding (gains) losses*
|
|
(451)
|
|
(887)
|
|
(191)
|
|
|
(2,943)
|
|
3,446
|
|
|
RC profit before interest and tax
|
|
1,060
|
|
640
|
|
915
|
|
|
2,634
|
|
2,173
|
|
|
Net (favourable) adverse impact of adjusting items
|
|
98
|
|
187
|
|
(279)
|
|
|
7
|
|
789
|
|
|
Underlying RC profit before interest and tax
|
|
1,158
|
|
827
|
|
636
|
|
|
2,641
|
|
2,962
|
|
|
Of
which:(a)
|
|
|
|
|
|
|
|
|||||
|
customers
– convenience & mobility
|
|
806
|
|
951
|
|
1,081
|
|
|
2,415
|
|
2,201
|
|
|
Castrol – included in customers
|
|
231
|
|
265
|
|
326
|
|
|
830
|
|
556
|
|
|
products
– refining & trading
|
|
352
|
|
(124)
|
|
(533)
|
|
|
226
|
|
561
|
|
|
petrochemicals
|
|
—
|
|
—
|
|
88
|
|
|
—
|
|
200
|
|
|
Taxation on an underlying RC basis
|
|
(314)
|
|
(123)
|
|
(51)
|
|
|
(570)
|
|
(637)
|
|
|
Underlying RC profit before interest
|
|
844
|
|
704
|
|
585
|
|
|
2,071
|
|
2,325
|
|
(a)
A reconciliation to
RC profit before interest and tax by business is provided on page
33.
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
$ million
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
Adjusted EBITDA*(b)
|
|
|
|
|
|
|
|
|||||
|
customers – convenience & mobility
|
|
1,130
|
|
1,280
|
|
1,387
|
|
|
3,392
|
|
3,077
|
|
|
Castrol – included in customers
|
|
267
|
|
304
|
|
364
|
|
|
944
|
|
675
|
|
|
products – refining & trading
|
|
775
|
|
301
|
|
(98)
|
|
|
1,495
|
|
1,825
|
|
|
petrochemicals
|
|
—
|
|
—
|
|
90
|
|
|
—
|
|
302
|
|
|
|
|
1,905
|
|
1,581
|
|
1,379
|
|
|
4,887
|
|
5,204
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Depreciation, depletion and amortization
|
|
|
|
|
|
|
|
|||||
|
Total depreciation, depletion and amortization
|
|
747
|
|
754
|
|
743
|
|
|
2,246
|
|
2,242
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Capital expenditure*
|
|
|
|
|
|
|
|
|||||
|
customers – convenience & mobility
|
|
301
|
|
255
|
|
1,266
|
|
|
872
|
|
1,756
|
|
|
Castrol – included in customers
|
|
37
|
|
42
|
|
33
|
|
|
120
|
|
104
|
|
|
products – refining & trading
|
|
296
|
|
264
|
|
244
|
|
|
776
|
|
702
|
|
|
petrochemicals
|
|
—
|
|
—
|
|
9
|
|
|
—
|
|
87
|
|
|
Total capital expenditure
|
|
597
|
|
519
|
|
1,519
|
|
|
1,648
|
|
2,545
|
|
(b)
A reconciliation to
RC profit before interest and tax by business is provided on page
33.
|
Retail(c)
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
bp retail sites* – total (#)
|
|
20,350
|
|
20,300
|
|
20,550
|
|
|
20,350
|
|
20,550
|
|
|
bp
retail sites in growth markets*
|
|
2,650
|
|
2,700
|
|
2,700
|
|
|
2,650
|
|
2,700
|
|
|
Strategic
convenience sites*
|
|
2,050
|
|
2,000
|
|
1,900
|
|
|
2,050
|
|
1,900
|
|
(c)
Reported to the
nearest 50.
|
Marketing sales of refined products (mb/d)
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
US
|
|
1,161
|
|
1,131
|
|
1,083
|
|
|
1,103
|
|
997
|
|
|
Europe
|
|
968
|
|
838
|
|
849
|
|
|
838
|
|
830
|
|
|
Rest of World
|
|
439
|
|
469
|
|
422
|
|
|
450
|
|
435
|
|
|
|
|
2,568
|
|
2,438
|
|
2,354
|
|
|
2,391
|
|
2,262
|
|
|
Trading/supply
sales of refined products(d)
|
|
425
|
415
|
|
435
|
|
|
392
|
432
|
|
||
|
Total sales volume of refined products
|
|
2,993
|
2,853
|
|
2,789
|
|
|
2,783
|
2,694
|
|
||
(d)
Comparative
information for 2020 has been restated for the changes to net
presentation of revenues and purchases relating to physically
settled derivative contracts effective 1 January 2021. For more
information see Note 1 basis of preparation - Voluntary change in accounting
policy.
Top of
page 12
customers & products (continued)
|
Refining marker
margin*(a)
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
bp average refining marker margin (RMM) ($/bbl)
|
|
15.2
|
|
13.7
|
|
6.2
|
|
|
12.6
|
|
7.0
|
|
(a)
In 2021 the RMM has
been updated to reflect changes in bp’s portfolio, and the
update of crude reference for Mediterranean region. On this basis
the third quarter and nine months 2020 RMM would be $6.4/bbl and
$7.1/bbl respectively.
|
Refinery throughputs – operated refineries
(mb/d)
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
US
|
|
737
|
|
692
|
|
701
|
|
|
719
|
|
687
|
|
|
Europe
|
|
804
|
|
763
|
|
699
|
|
|
771
|
|
750
|
|
|
Rest of World
|
|
81
|
|
52
|
|
187
|
|
|
87
|
|
189
|
|
|
Total refinery throughputs
|
|
1,622
|
|
1,507
|
|
1,587
|
|
|
1,577
|
|
1,626
|
|
|
bp-operated refining availability* (%)
|
|
95.6
|
|
93.5
|
|
96.2
|
|
|
94.6
|
|
96.0
|
|
Top of
page 13
Rosneft
Financial results
●
The replacement
cost (RC) profit before interest and tax for the third quarter and
nine months was $868 million and $1,874 million respectively,
compared with a loss of $278 million and $419 million for the same
periods in 2020. The third quarter and nine months included an
adverse impact of net adjusting items* of $55 million and $101
million respectively, compared with an adverse impact of net
adjusting items of $101 million and $164 million for the same
periods in 2020.
●
After excluding
adjusting items, the underlying RC profit before interest and tax*
for the third quarter and nine months was $923 million and $1,975
million respectively, compared with a loss of $177 million and $255
million for the same periods in 2020.
●
Compared with the
same periods in 2020, the results for the third quarter and nine
months primarily reflect higher oil prices and favourable foreign
exchange effects.
●
The extraordinary
general meeting held on 30 September adopted a resolution to pay
interim dividends of 18.03 roubles per ordinary share which
constitute 50% of Rosneft’s IFRS net profit for the first
half of 2021. bp expects to receive dividends of 34 billion roubles
(net of withholding tax) in the fourth quarter.
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
$ million
|
|
2021(a)
|
2021
|
2020
|
|
2021(a)
|
2020
|
|||||
|
Profit
(loss) before interest and tax(b)(c)
|
|
903
|
|
711
|
|
(244)
|
|
|
2,065
|
|
(533)
|
|
|
Inventory holding (gains) losses*
|
|
(35)
|
|
(68)
|
|
(34)
|
|
|
(191)
|
|
114
|
|
|
RC profit (loss) before interest and tax
|
|
868
|
|
643
|
|
(278)
|
|
|
1,874
|
|
(419)
|
|
|
Net (favourable) adverse impact of adjusting items
|
|
55
|
|
46
|
|
101
|
|
|
101
|
|
164
|
|
|
Underlying RC profit (loss) before interest and tax
|
|
923
|
|
689
|
|
(177)
|
|
|
1,975
|
|
(255)
|
|
|
Taxation on an underlying RC basis
|
|
(93)
|
|
(68)
|
|
17
|
|
|
(196)
|
|
28
|
|
|
Underlying RC profit (loss) before interest
|
|
830
|
|
621
|
|
(160)
|
|
|
1,779
|
|
(227)
|
|
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
|
|
2021(a)
|
2021
|
2020
|
|
2021(a)
|
2020
|
|||||
|
Production: Hydrocarbons (net
of royalties, bp share)
|
|
|
|
|
|
|
|
|||||
|
Liquids* (mb/d)
|
|
876
|
|
858
|
|
858
|
|
|
854
|
|
877
|
|
|
Natural gas (mmcf/d)
|
|
1,418
|
|
1,374
|
|
1,260
|
|
|
1,363
|
|
1,261
|
|
|
Total hydrocarbons* (mboe/d)
|
|
1,120
|
|
1,095
|
|
1,075
|
|
|
1,089
|
|
1,094
|
|
(a)
The operational and
financial information of the Rosneft segment for the third quarter
and nine months is based on preliminary operational and financial
results of Rosneft for the three months and nine months ended 30
September 2021. Actual results may differ from these amounts.
Amounts reported for the third quarter are based on bp’s
22.03% average economic interest for the quarter (second quarter
2021 22.03% and third quarter 2020 21.96%).
(b)
The Rosneft segment
result includes equity-accounted earnings arising from bp’s
economic interest in Rosneft as adjusted for 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.
(c)
bp’s adjusted
share of Rosneft’s earnings after Rosneft's own finance
costs, taxation and non-controlling interests is included in the bp
group income statement within profit before interest and taxation.
For each year-to-date period it is calculated by translating the
amounts reported in Russian roubles into US dollars using the
average exchange rate for the year to date.
Top of
page 14
other businesses & corporate
Other
businesses & corporate comprises our innovation &
engineering business including bp ventures and Launchpad, regions,
cities & solutions, our corporate activities & functions
and any residual costs of the Gulf of Mexico oil
spill.
Financial results
●
The replacement
cost loss before interest and tax for the third quarter and nine
months was $750 million and $1,853 million respectively, compared
with $42 million and $867 million for the same periods in 2020. The
third quarter and nine months included an adverse impact of net
adjusting items* of $377 million and $1,005 million respectively,
including $263 million and $637 million of adverse fair value
accounting effects* respectively, compared with a favourable impact
of net adjusting items of $79 million and an adverse impact of net
adjusting items of $94 million, including $266 million and $225
million of favourable fair value accounting effects respectively,
for the same periods in 2020.
●
After excluding
adjusting items*, the underlying replacement cost loss before
interest and tax* for the third quarter and nine months was $373
million and $848 million respectively, compared with $121 million
and $773 million for the same periods in 2020, reflecting foreign
exchange and employee cost impacts.
Strategic progress
●
bp and NYK Line
signed a memorandum of understanding on 24 August to collaborate on
future fuels and transportation solutions to help industrial
sectors, including shipping, decarbonize.
●
On 2 September, bp
Launchpad acquired Blueprint Power (Blueprint), a US-based company
whose technology is focused on optimizing the power networks of
buildings by connecting them to energy markets through cloud-based
software. Blueprint’s technology presents an opportunity to
help decarbonize commercial real estate, help real estate owners
meet their environmental goals and give them access to new revenue
streams.
●
On 24 September, bp
ventures led a $25 million investment round in all-electric ride
hailing & EV charging start-up BluSmart. BluSmart is India's
first and largest integrated EV ride-hailing and charging service.
BluSmart intends to use the capital to expand its fleet of electric
vehicles and charging stations in its home city of Delhi and into
five additional Indian cities in the next two years.
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
$ million
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
Profit (loss) before interest and tax
|
|
(750)
|
|
(425)
|
|
(42)
|
|
|
(1,853)
|
|
(867)
|
|
|
Inventory holding (gains) losses*
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
RC profit (loss) before interest and tax
|
|
(750)
|
|
(425)
|
|
(42)
|
|
|
(1,853)
|
|
(867)
|
|
|
Net
(favourable) adverse impact of adjusting items(a)
|
|
377
|
|
120
|
|
(79)
|
|
|
1,005
|
|
94
|
|
|
Underlying RC profit (loss) before interest and tax
|
|
(373)
|
|
(305)
|
|
(121)
|
|
|
(848)
|
|
(773)
|
|
|
Taxation on an underlying RC basis
|
|
11
|
|
101
|
|
13
|
|
|
166
|
|
(18)
|
|
|
Underlying RC profit (loss) before interest
|
|
(362)
|
|
(204)
|
|
(108)
|
|
|
(682)
|
|
(791)
|
|
(a)
Includes fair value
accounting effects relating to the hybrid bonds that were issued on
17 June 2020. See page 36 for more information.
Top of
page 15
Financial statements
Group income statement
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
$ million
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
|
|
|
|
|
|
|
|
|||||
|
Sales
and other operating revenues (Note 5)(a)
|
|
36,174
|
|
36,467
|
|
26,312
|
|
|
107,185
|
|
78,547
|
|
|
Earnings from joint ventures – after interest and
tax
|
|
197
|
|
(57)
|
|
73
|
|
|
300
|
|
(516)
|
|
|
Earnings from associates – after interest and
tax
|
|
1,103
|
|
856
|
|
(332)
|
|
|
2,560
|
|
(676)
|
|
|
Interest and other income
|
|
158
|
|
82
|
|
183
|
|
|
322
|
|
430
|
|
|
Gains on sale of businesses and fixed assets
|
|
235
|
|
250
|
|
27
|
|
|
1,590
|
|
117
|
|
|
Total revenues and other income
|
|
37,867
|
|
37,598
|
|
26,263
|
|
|
111,957
|
|
77,902
|
|
|
Purchases(a)
|
|
23,937
|
|
21,241
|
|
13,706
|
|
|
60,834
|
|
42,271
|
|
|
Production and manufacturing expenses
|
|
6,026
|
|
6,562
|
|
5,073
|
|
|
19,446
|
|
16,383
|
|
|
Production and similar taxes
|
|
354
|
|
295
|
|
140
|
|
|
902
|
|
467
|
|
|
Depreciation, depletion and amortization (Note 6)
|
|
3,944
|
|
3,631
|
|
3,467
|
|
|
10,942
|
|
11,463
|
|
|
Impairment and losses on sale of businesses and fixed assets (Note
3)
|
|
220
|
|
(2,937)
|
|
294
|
|
|
(2,344)
|
|
13,213
|
|
|
Exploration expense
|
|
116
|
|
107
|
|
190
|
|
|
322
|
|
10,066
|
|
|
Distribution and administration expenses
|
|
3,077
|
|
2,874
|
|
2,435
|
|
|
8,566
|
|
7,628
|
|
|
Profit (loss) before interest and taxation
|
|
193
|
|
5,825
|
|
958
|
|
|
13,289
|
|
(23,589)
|
|
|
Finance costs
|
|
693
|
|
682
|
|
800
|
|
|
2,098
|
|
2,366
|
|
|
Net
finance (income) expense relating to pensions and other
post-retirement benefits
|
|
(5)
|
|
5
|
|
8
|
|
|
6
|
|
23
|
|
|
Profit (loss) before taxation
|
|
(495)
|
|
5,138
|
|
150
|
|
|
11,185
|
|
(25,978)
|
|
|
Taxation
|
|
1,850
|
|
1,784
|
|
457
|
|
|
5,276
|
|
(3,764)
|
|
|
Profit (loss) for the period
|
|
(2,345)
|
|
3,354
|
|
(307)
|
|
|
5,909
|
|
(22,214)
|
|
|
Attributable to
|
|
|
|
|
|
|
|
|||||
|
BP
shareholders
|
|
(2,544)
|
|
3,116
|
|
(450)
|
|
|
5,239
|
|
(21,663)
|
|
|
Non-controlling
interests
|
|
199
|
|
238
|
|
143
|
|
|
670
|
|
(551)
|
|
|
|
|
(2,345)
|
|
3,354
|
|
(307)
|
|
|
5,909
|
|
(22,214)
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Earnings per share (Note 7)
|
|
|
|
|
|
|
|
|||||
|
Profit (loss) for the period attributable to BP
shareholders
|
|
|
|
|
|
|
|
|||||
|
Per
ordinary share (cents)
|
|
|
|
|
|
|
|
|||||
|
Basic
|
|
(12.63)
|
|
15.37
|
|
(2.22)
|
|
|
25.88
|
|
(107.15)
|
|
|
Diluted
|
|
(12.63)
|
|
15.30
|
|
(2.22)
|
|
|
25.72
|
|
(107.15)
|
|
|
Per
ADS (dollars)
|
|
|
|
|
|
|
|
|||||
|
Basic
|
|
(0.76)
|
|
0.92
|
|
(0.13)
|
|
|
1.55
|
|
(6.43)
|
|
|
Diluted
|
|
(0.76)
|
|
0.92
|
|
(0.13)
|
|
|
1.54
|
|
(6.43)
|
|
(a)
2020 numbers have
been restated as a result of changes to the net presentation of
revenues and purchases relating to physically settled derivative
contracts effective 1 January 2021. For more information see Note 1
Basis of preparation - Voluntary
change in accounting policy.
Top of
page 16
Condensed group statement of comprehensive income
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
$ million
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
|
|
|
|
|
|
|
|
|||||
|
Profit (loss) for the period
|
|
(2,345)
|
|
3,354
|
|
(307)
|
|
|
5,909
|
|
(22,214)
|
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
|||||
|
Items that may be reclassified subsequently to profit or
loss
|
|
|
|
|
|
|
|
|||||
|
Currency
translation differences(a)
|
|
(599)
|
|
902
|
|
(166)
|
|
|
(302)
|
|
(3,437)
|
|
|
Exchange
(gains) losses on translation of foreign operations reclassified to
gain or loss on sale of businesses and fixed assets
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
4
|
|
|
Cash
flow hedges and costs of hedging
|
|
(398)
|
|
(207)
|
|
(90)
|
|
|
(667)
|
|
63
|
|
|
Share
of items relating to equity-accounted entities, net of
tax
|
|
(3)
|
|
(68)
|
|
308
|
|
|
(60)
|
|
417
|
|
|
Income
tax relating to items that may be reclassified
|
|
80
|
|
8
|
|
(16)
|
|
|
89
|
|
64
|
|
|
|
|
(920)
|
|
635
|
|
36
|
|
|
(940)
|
|
(2,889)
|
|
|
Items that will not be reclassified to profit or loss
|
|
|
|
|
|
|
|
|||||
|
Remeasurements of
the net pension and other post-retirement benefit liability or
asset(b)
|
|
494
|
|
590
|
|
78
|
|
|
3,110
|
|
(163)
|
|
|
Cash
flow hedges that will subsequently be transferred to the balance
sheet
|
|
(2)
|
|
1
|
|
8
|
|
|
1
|
|
(2)
|
|
|
Income
tax relating to items that will not be reclassified
|
|
(130)
|
|
(165)
|
|
(16)
|
|
|
(883)
|
|
(16)
|
|
|
|
|
362
|
|
426
|
|
70
|
|
|
2,228
|
|
(181)
|
|
|
Other comprehensive income
|
|
(558)
|
|
1,061
|
|
106
|
|
|
1,288
|
|
(3,070)
|
|
|
Total comprehensive income
|
|
(2,903)
|
|
4,415
|
|
(201)
|
|
|
7,197
|
|
(25,284)
|
|
|
Attributable to
|
|
|
|
|
|
|
|
|||||
|
BP
shareholders
|
|
(3,084)
|
|
4,183
|
|
(364)
|
|
|
6,559
|
|
(24,723)
|
|
|
Non-controlling
interests
|
|
181
|
|
232
|
|
163
|
|
|
638
|
|
(561)
|
|
|
|
|
(2,903)
|
|
4,415
|
|
(201)
|
|
|
7,197
|
|
(25,284)
|
|
(a)
Second quarter 2021
and nine months 2020 principally affected by movements in the
Russian rouble against the US dollar.
(b)
See Note 1 - Basis
of preparation - Pensions and other post-retirement benefits for
further information.
Top of
page 17
Condensed group statement of changes in equity
|
|
|
bp shareholders’
|
Non-controlling interests
|
Total
|
|||||
|
$ million
|
|
equity
|
Hybrid bonds
|
Other interest
|
equity
|
||||
|
At 1 January 2021
|
|
71,250
|
|
12,076
|
|
2,242
|
|
85,568
|
|
|
|
|
|
|
|
|
||||
|
Total comprehensive income
|
|
6,559
|
|
377
|
|
261
|
|
7,197
|
|
|
Dividends
|
|
(3,236)
|
|
—
|
|
(245)
|
|
(3,481)
|
|
|
Cash
flow hedges transferred to the balance sheet, net of
tax
|
|
(8)
|
|
—
|
|
—
|
|
(8)
|
|
|
Repurchase of ordinary share capital
|
|
(1,897)
|
|
—
|
|
—
|
|
(1,897)
|
|
|
Share-based payments, net of tax
|
|
407
|
|
—
|
|
—
|
|
407
|
|
|
Share
of equity-accounted entities’ changes in equity, net of
tax
|
|
558
|
|
—
|
|
—
|
|
558
|
|
|
Issue
of perpetual hybrid bonds(a)
|
|
(24)
|
|
883
|
|
—
|
|
859
|
|
|
Payments on perpetual hybrid bonds
|
|
(7)
|
|
(431)
|
|
—
|
|
(438)
|
|
|
Transactions
involving non-controlling interests, net of tax
|
|
873
|
|
—
|
|
(372)
|
|
501
|
|
|
At 30 September 2021
|
|
74,475
|
|
12,905
|
|
1,886
|
|
89,266
|
|
|
|
|
|
|
|
|
||||
|
|
|
bp shareholders’
|
Non-controlling interests
|
Total
|
|||||
|
$ million
|
|
equity
|
Hybrid bonds
|
Other interest
|
equity
|
||||
|
At 1 January 2020
|
|
98,412
|
|
—
|
|
2,296
|
|
100,708
|
|
|
|
|
|
|
|
|
||||
|
Total comprehensive income
|
|
(24,723)
|
|
133
|
|
(694)
|
|
(25,284)
|
|
|
Dividends
|
|
(5,305)
|
|
—
|
|
(163)
|
|
(5,468)
|
|
|
Cash
flow hedges transferred to the balance sheet, net of
tax
|
|
7
|
|
—
|
|
—
|
|
7
|
|
|
Repurchase of ordinary share capital
|
|
(776)
|
|
—
|
|
—
|
|
(776)
|
|
|
Share-based payments, net of tax
|
|
547
|
|
—
|
|
—
|
|
547
|
|
|
Issue of perpetual hybrid bonds
|
|
(48)
|
|
11,909
|
|
—
|
|
11,861
|
|
|
Payments on perpetual hybrid bonds
|
|
—
|
|
(27)
|
|
—
|
|
(27)
|
|
|
Tax on issue of perpetual hybrid bonds
|
|
1
|
|
—
|
|
—
|
|
1
|
|
|
Transactions
involving non-controlling interests, net of tax
|
|
(160)
|
|
—
|
|
746
|
|
586
|
|
|
At 30 September 2020
|
|
67,955
|
|
12,015
|
|
2,185
|
|
82,155
|
|
(a) See
note 1 - Issuance of hybrid securities for further
information.
Top of
page 18
Group balance sheet
|
|
|
30 September
|
31 December
|
||
|
$ million
|
|
2021
|
2020
|
||
|
Non-current assets
|
|
|
|
||
|
Property, plant and equipment
|
|
114,458
|
|
114,836
|
|
|
Goodwill
|
|
12,428
|
|
12,480
|
|
|
Intangible assets
|
|
6,261
|
|
6,093
|
|
|
Investments in joint ventures
|
|
9,777
|
|
8,362
|
|
|
Investments in associates
|
|
21,359
|
|
18,975
|
|
|
Other investments
|
|
2,396
|
|
2,746
|
|
|
Fixed assets
|
|
166,679
|
|
163,492
|
|
|
Loans
|
|
972
|
|
840
|
|
|
Trade and other receivables
|
|
3,815
|
|
4,351
|
|
|
Derivative financial instruments
|
|
7,203
|
|
9,755
|
|
|
Prepayments
|
|
473
|
|
533
|
|
|
Deferred tax assets
|
|
6,259
|
|
7,744
|
|
|
Defined benefit pension plan surpluses
|
|
10,659
|
|
7,957
|
|
|
|
|
196,060
|
|
194,672
|
|
|
Current assets
|
|
|
|
||
|
Loans
|
|
478
|
|
458
|
|
|
Inventories
|
|
25,232
|
|
16,873
|
|
|
Trade and other receivables
|
|
25,327
|
|
17,948
|
|
|
Derivative financial instruments
|
|
6,542
|
|
2,992
|
|
|
Prepayments
|
|
1,479
|
|
1,269
|
|
|
Current tax receivable
|
|
494
|
|
672
|
|
|
Other investments
|
|
191
|
|
333
|
|
|
Cash and cash equivalents
|
|
30,694
|
|
31,111
|
|
|
|
|
90,437
|
|
71,656
|
|
|
Assets classified as held for sale (Note 2)
|
|
39
|
|
1,326
|
|
|
|
|
90,476
|
|
72,982
|
|
|
Total assets
|
|
286,536
|
|
267,654
|
|
|
Current liabilities
|
|
|
|
||
|
Trade and other payables
|
|
49,406
|
|
36,014
|
|
|
Derivative financial instruments
|
|
10,666
|
|
2,998
|
|
|
Accruals
|
|
5,623
|
|
4,650
|
|
|
Lease liabilities
|
|
1,762
|
|
1,933
|
|
|
Finance debt
|
|
3,693
|
|
9,359
|
|
|
Current tax payable
|
|
1,346
|
|
1,038
|
|
|
Provisions
|
|
5,585
|
|
3,761
|
|
|
|
|
78,081
|
|
59,753
|
|
|
Liabilities directly associated with assets classified as held for
sale (Note 2)
|
|
31
|
|
46
|
|
|
|
|
78,112
|
|
59,799
|
|
|
Non-current liabilities
|
|
|
|
||
|
Other payables
|
|
10,603
|
|
12,112
|
|
|
Derivative financial instruments
|
|
6,095
|
|
5,404
|
|
|
Accruals
|
|
978
|
|
852
|
|
|
Lease liabilities
|
|
6,866
|
|
7,329
|
|
|
Finance debt
|
|
59,521
|
|
63,305
|
|
|
Deferred tax liabilities
|
|
8,044
|
|
6,831
|
|
|
Provisions
|
|
18,820
|
|
17,200
|
|
|
Defined benefit pension plan and other post-retirement benefit plan
deficits
|
|
8,231
|
|
9,254
|
|
|
|
|
119,158
|
|
122,287
|
|
|
Total liabilities
|
|
197,270
|
|
182,086
|
|
|
Net assets
|
|
89,266
|
|
85,568
|
|
|
Equity
|
|
|
|
||
|
BP shareholders’ equity
|
|
74,475
|
|
71,250
|
|
|
Non-controlling interests
|
|
14,791
|
|
14,318
|
|
|
Total equity
|
|
89,266
|
|
85,568
|
|
Top of
page 19
Condensed group cash flow statement
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
$ million
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
Operating activities
|
|
|
|
|
|
|
|
|||||
|
Profit (loss) before taxation
|
|
(495)
|
|
5,138
|
|
150
|
|
|
11,185
|
|
(25,978)
|
|
|
Adjustments to
reconcile profit (loss) before taxation to net cash provided by
operating activities
|
|
|
|
|
|
|
|
|||||
|
Depreciation,
depletion and amortization and exploration expenditure written
off
|
|
3,976
|
|
3,659
|
|
3,517
|
|
|
11,063
|
|
21,229
|
|
|
Impairment and
(gain) loss on sale of businesses and fixed assets
|
|
(15)
|
|
(3,187)
|
|
267
|
|
|
(3,934)
|
|
13,096
|
|
|
Earnings from
equity-accounted entities, less dividends received
|
|
(784)
|
|
(539)
|
|
1,018
|
|
|
(1,956)
|
|
2,383
|
|
|
Net
charge for interest and other finance expense, less net interest
paid
|
|
63
|
|
300
|
|
60
|
|
|
392
|
|
214
|
|
|
Share-based
payments
|
|
219
|
|
228
|
|
199
|
|
|
401
|
|
544
|
|
|
Net
operating charge for pensions and other post-retirement benefits,
less contributions and benefit payments for unfunded
plans
|
|
(80)
|
|
(371)
|
|
(46)
|
|
|
(471)
|
|
(100)
|
|
|
Net
charge for provisions, less payments
|
|
666
|
|
1,172
|
|
293
|
|
|
2,740
|
|
(131)
|
|
|
Movements in
inventories and other current and non-current assets and
liabilities
|
|
3,850
|
|
26
|
|
556
|
|
|
1,083
|
|
630
|
|
|
Income
taxes paid
|
|
(1,424)
|
|
(1,015)
|
|
(810)
|
|
|
(3,007)
|
|
(1,994)
|
|
|
Net cash provided by operating activities
|
|
5,976
|
|
5,411
|
|
5,204
|
|
|
17,496
|
|
9,893
|
|
|
Investing activities
|
|
|
|
|
|
|
|
|||||
|
Expenditure on
property, plant and equipment, intangible and other
assets
|
|
(2,647)
|
|
(2,435)
|
|
(2,577)
|
|
|
(8,115)
|
|
(9,384)
|
|
|
Acquisitions, net of cash acquired
|
|
(53)
|
|
—
|
|
(10)
|
|
|
(54)
|
|
(27)
|
|
|
Investment in joint ventures
|
|
(70)
|
|
(47)
|
|
(12)
|
|
|
(859)
|
|
(38)
|
|
|
Investment in associates
|
|
(133)
|
|
(32)
|
|
(1,037)
|
|
|
(187)
|
|
(1,115)
|
|
|
Total cash capital expenditure
|
|
(2,903)
|
|
(2,514)
|
|
(3,636)
|
|
|
(9,215)
|
|
(10,564)
|
|
|
Proceeds from disposal of fixed assets
|
|
(19)
|
|
93
|
|
32
|
|
|
625
|
|
52
|
|
|
Proceeds from disposal of businesses, net of cash
disposed
|
|
332
|
|
122
|
|
84
|
|
|
4,067
|
|
1,425
|
|
|
Proceeds from loan repayments
|
|
33
|
|
67
|
|
50
|
|
|
161
|
|
656
|
|
|
Cash provided from investing activities
|
|
346
|
|
282
|
|
166
|
|
|
4,853
|
|
2,133
|
|
|
Net cash used in investing activities
|
|
(2,557)
|
|
(2,232)
|
|
(3,470)
|
|
|
(4,362)
|
|
(8,431)
|
|
|
Financing activities
|
|
|
|
|
|
|
|
|||||
|
Net issue (repurchase) of shares (Note 7)
|
|
(926)
|
|
(500)
|
|
—
|
|
|
(1,426)
|
|
(776)
|
|
|
Lease liability payments
|
|
(506)
|
|
(514)
|
|
(578)
|
|
|
(1,580)
|
|
(1,811)
|
|
|
Proceeds from long-term financing
|
|
2,398
|
|
1,985
|
|
2,587
|
|
|
6,339
|
|
12,117
|
|
|
Repayments of long-term financing
|
|
(6,745)
|
|
(67)
|
|
(4,307)
|
|
|
(13,841)
|
|
(8,988)
|
|
|
Net increase (decrease) in short-term debt
|
|
(81)
|
|
(33)
|
|
(2,630)
|
|
|
108
|
|
(328)
|
|
|
Issue
of perpetual hybrid bonds(a)
|
|
859
|
|
—
|
|
—
|
|
|
859
|
|
11,861
|
|
|
Payments on perpetual hybrid bonds
|
|
(55)
|
|
(328)
|
|
(27)
|
|
|
(438)
|
|
(27)
|
|
|
Payments
relating to transactions involving non-controlling interests (Other
interest)
|
|
(560)
|
|
—
|
|
—
|
|
|
(560)
|
|
(8)
|
|
|
Receipts
relating to transactions involving non-controlling interests (Other
interest)
|
|
—
|
|
3
|
|
483
|
|
|
671
|
|
492
|
|
|
Dividends paid - BP shareholders
|
|
(1,101)
|
|
(1,062)
|
|
(1,060)
|
|
|
(3,227)
|
|
(5,281)
|
|
|
-
non-controlling interests
|
|
(87)
|
|
(107)
|
|
(58)
|
|
|
(245)
|
|
(163)
|
|
|
Net cash provided by (used in) financing activities
|
|
(6,804)
|
|
(623)
|
|
(5,590)
|
|
|
(13,340)
|
|
7,088
|
|
|
Currency translation differences relating to cash and cash
equivalents
|
|
(177)
|
|
24
|
|
268
|
|
|
(211)
|
|
43
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
(3,562)
|
|
2,580
|
|
(3,588)
|
|
|
(417)
|
|
8,593
|
|
|
Cash and cash equivalents at beginning of period
|
|
34,256
|
|
31,676
|
|
34,653
|
|
|
31,111
|
|
22,472
|
|
|
Cash
and cash equivalents at end of period(b)
|
|
30,694
|
|
34,256
|
|
31,065
|
|
|
30,694
|
|
31,065
|
|
(a) See
note 1 - Issuance of hybrid securities for further
information.
(b)
Third quarter and nine months 2020 includes $316 million of cash
and cash equivalents classified as assets held for sale in the
group balance sheet.
Top of
page 20
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 2020 included in BP Annual Report and Form 20-F
2020.
The
directors consider it appropriate to adopt the going concern basis
of accounting in preparing the interim financial statements. The
ongoing impact of COVID-19 and the current economic environment has
been considered as part of the going concern assessment. Forecast
liquidity has been assessed under a number of stressed scenarios to
support this assertion. Reverse stress tests indicated that the
group will continue to operate as a going concern for at least 12
months from the date of approval of the interim financial
statements even if the Brent price fell to zero.
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 as applicable to companies reporting under
international accounting standards. As a result of the UK's
withdrawal from the EU, with effect from 1 January 2021, the
consolidated financial statements are also prepared in accordance
with IFRS as adopted by the UK. IFRS as adopted by the UK does not
differ from IFRS as adopted by the EU. IFRS as adopted by the EU
and UK differ 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 2021 which are the same as those used in preparing
BP Annual Report and Form 20-F
2020 with the exception of the changes described in the
'Updates to significant accounting policies' section below. There
are no other new or amended standards or interpretations adopted
from 1 January 2021 onwards that have a significant impact on the
financial information.
Considerations in respect of COVID-19 and the current economic
environment
bp's
significant accounting judgements and estimates were disclosed in
BP Annual Report and Form 20-F
2020. These have been subsequently considered at the end of
each quarter to determine if any changes were required to those
judgements and estimates as a result of current market conditions.
The conditions also result in the valuation of certain assets and
liabilities remaining subject to more uncertainty, including those
set out below.
Impairment testing assumptions
The
group’s price assumption for Brent oil was revised during the
second quarter. The assumption up to 2030 was increased to reflect
near-term supply constraints whereas the long-term assumption was
decreased reaching $55 per barrel by 2040 and $45 per barrel by
2050 (in real 2020 terms) as bp's management expects an
acceleration of the pace of transition to a lower carbon economy.
The price assumption for Henry Hub gas were unchanged from those
disclosed in BP Annual Report and
Form 20-F 2020. A summary of the group’s price
assumptions, in real 2020 terms, is provided below:
|
|
|
|
4Q21
|
2025
|
2030
|
2040
|
2050
|
|
Brent oil ($/bbl)
|
|
|
60
|
60
|
60
|
55
|
45
|
|
Henry Hub gas ($/mmBtu)
|
|
|
3.00
|
3.00
|
3.00
|
3.00
|
2.75
|
The
group has identified upstream oil and gas properties with carrying
amounts totalling approximately $30 billion where the headroom,
based on the most recent impairment tests performed, was less than
or equal to 20% of the carrying value. A change in price or other
assumptions within the next financial year may result in a
recoverable amount of one or more of these assets above or below
the current carrying amount and therefore there is a significant
risk of impairment reversals or charges in that
period.
The
discount rates used in value-in-use impairment testing as
disclosed in
BP Annual Report and Form 20-F
2020, are unchanged.
Provisions
The
nominal risk-free discount rate applied to provisions is reviewed
on a quarterly basis. The discount rate applied to the group's
provisions remains at 2.0% (31 December 2020 2.5%).
Pensions and other post-retirement benefits
The
group's defined benefit pension plans are reviewed quarterly to
determine any changes to the fair value of the plan assets or
present value of the defined benefit obligations. As a result of
the review during the third quarter of 2021, the group's total net
defined benefit pension plan surplus as at 30 September 2021 is
$2.4 billion, compared to a surplus of $2.0 billion and a deficit
of $1.3 billion at 30 June 2021 and 31 December 2020
respectively.
The
movement for the nine months principally reflects net actuarial
gains reported in other comprehensive income arising from increases
in the UK, US and Eurozone discount rates and positive asset
performance, partly offset by increases in inflation rates. Also
reflected in the nine months is a reduction in the liability of the
UK funded final salary pension plan which was closed to future
accrual on 30 June 2021. A curtailment gain of $0.3 billion was
recognized in the income statement in the second quarter. For
active members of the scheme at 30 June 2021, benefits payable are
now linked to salary as at that date rather than to salary on
retirement. The current environment is likely to continue to affect
the values of the plan assets and obligations resulting in
potential volatility in the amount of the net defined benefit
pension plan surplus/deficit recognized.
Top of
page 21
Note 1. Basis of preparation (continued)
Impairment of financial assets measured at amortized
cost
The
estimate of the loss allowance recognized on financial assets
measured at amortized cost using an expected credit loss approach
was determined not to be a significant accounting estimate in
preparing BP Annual Report and
Form 20-F 2020. Expected credit loss allowances are,
however, reviewed and updated quarterly. Allowances are recognized
on assets where there is evidence that the asset is credit-impaired
and on a forward-looking expected credit loss basis for assets that
are not credit-impaired. The current economic environment and
future credit risk outlook have been considered in updating the
estimate of loss allowances with no significant impact in the
quarter.
The
group continues to believe that the calculation of expected credit
loss allowances is not a significant accounting estimate. The group
continues to apply its credit policy as disclosed in BP Annual Report and Form 20-F 2020 -
Financial statements - Note 29 Financial instruments and financial
risk factors - credit risk.
Other accounting judgements and estimates
All
other significant accounting judgements and estimates disclosed in
BP Annual Report and Form 20-F
2020 remain applicable and no new significant accounting
judgements or estimates have been identified specifically arising
from the impact of COVID-19.
Issuance of hybrid securities
During
the quarter, a group subsidiary issued perpetual subordinated
hybrid capital securities of $0.9 billion. The proceeds from this
issuance were specifically earmarked to fund a forward purchase and
leaseback of an under-construction floating, production, storage,
and offloading vessel (FPSO) to be used on one of the group’s
major projects.
As the
group has the unconditional right to defer interest and principal
indefinitely, they are classified as equity instruments and
reported within non-controlling interests in the condensed
consolidated financial statements.
Updates to significant accounting policies
Change in accounting policy - Interest Rate Benchmark Reform -
Phase II
Financial
authorities have announced the timing of interest rate benchmark
transitions with market discussions continuing around benchmark
application. The replacement of key interest rate benchmarks such
as the London Inter-bank Offered Rate (LIBOR) with alternative
benchmarks in the US, UK, EU and other territories is expected at
the end of 2021 for most benchmarks, with remaining USD tenors
expected to cease in 2023. bp is primarily exposed to USD LIBORs
that will be available until June 2023.
Amendments
to IFRS 9 'Financial instruments', IFRS 16 ‘Leases’ and
other IFRSs were issued by the IASB in August 2020 to provide
practical expedients and reliefs when changes are made to
contractual cash flows or hedging relationships because of the
transition from Inter-bank Offered Rates to alternative risk-free
rates. bp adopted these amendments from 1 January 2021 and they
will be applied prospectively.
bp has
set up an internal working group on interest rate benchmark reform
to monitor market developments and manage the transition to
alternative benchmark rates. The impacts on contracts and
arrangements that are linked to existing interest rate benchmarks,
for example, borrowings, leases and derivative contracts have been
assessed and transition plans are being developed. bp is also
participating on external committees and task forces dedicated to
interest rate benchmark reform.
Change in segmentation
During
the first quarter of 2021, the group's reportable segments were
changed consistent with a change in the way that resources are
allocated and performance is assessed by the chief operating
decision maker, who for bp is the group chief executive, from that
date. From the first quarter of 2021, the group's reportable
segments are gas & low carbon energy, oil production &
operations, customers & products, and Rosneft. At 31 December
2020, the group's reportable segments were Upstream, Downstream and
Rosneft.
Gas
& low carbon energy comprises regions with upstream businesses
that predominantly produce natural gas, gas marketing and trading
activities and the group's renewables businesses, including
biofuels, solar and wind. Gas producing regions were previously in
the Upstream segment. The group's renewables businesses were
previously part of 'Other businesses and corporate'.
Oil
production & operations comprises regions with upstream
activities that predominantly produce crude oil. These activities
were previously in the Upstream segment.
Customers
& products comprises the group’s customer-focused
businesses, spanning convenience and mobility, which includes fuels
retail and next-gen offers such as electrification, as well as
aviation, midstream, and Castrol lubricants. It also includes our
oil products businesses, refining & trading. The petrochemicals
business will also be reported in restated comparative information
as part of the customers and products segment up to its sale in
December 2020. The customers & products segment is, therefore,
substantially unchanged from the former Downstream segment with the
exception of the Petrochemicals disposal.
The
Rosneft segment is unchanged and continues to include
equity-accounted earnings from the group's investment in
Rosneft.
The
segment measure of profit or loss continues to be replacement cost
profit or loss before interest and tax, which reflects the
replacement cost of supplies by excluding from profit or loss
before interest and tax inventory holding gains and losses. See
Note 4 for further information.
Comparative
information for 2020 has been restated in Notes 4, 5 and 6 to
reflect the changes in reportable segments.
Top of
page 22
Note 1. Basis of preparation (continued)
Voluntary change in accounting policy - Net presentation of
revenues and purchases relating to physically settled derivative
contracts
bp
routinely enters into transactions for the sale and purchase of
commodities that are physically settled and meet the definition of
a derivative financial instrument. These contracts are within the
scope of IFRS 9 and as such, prior to settlement, changes in the
fair value of these derivative contracts are presented as gains and
losses within other operating revenues. The group previously
presented revenues and purchases for such contracts on a gross
basis in the income statement upon physical
settlement.
These
transactions have historically represented a substantial portion of
the revenues and purchases reported in the group’s
consolidated financial statements.
The
change in strategic direction of the group supported by
organisational changes to implement the strategy from 1 January
2021, resulted in the group determining that the revenue and
corresponding purchases relating to such transactions should be
presented net, as gains or losses within other operating revenues,
from that date.
Additionally
the group’s trading activity has continued to evolve over
time from one of capturing third-party physical trades to provide
flow assurance to one with increasing levels of optimisation,
taking advantage of price volatility and fluctuations in demand and
supply, which will continue under the new strategy, further
supporting the change in presentation. The new presentation
provides reliable and more relevant information for users of the
accounts as the group’s revenue recognition is more closely
aligned with its assessment of ‘Scope 3’ emissions from
its products, its ‘Net Zero’ ambition and how
management monitors and manages performance of such contracts.
Comparative information for sales and other operating revenues and
purchases for 2020 has been restated as shown in the table below.
There is no significant impact on comparative information for
profit before income and tax or earnings per share.
In
addition, as disclosed in the group's 2020 financial statements, in
2020 revenues from physically settled derivative contracts were
reclassified as other operating revenues and were no longer
presented together with revenues from contracts with customers. In
these financial statements certain other similar contracts have
been reclassified as other operating revenues and then been subject
to net presentation as described above. Comparative information for
natural gas, LNG and NGLs, and non-oil products and other revenue
from contracts with customers in Note 5 has been amended to align
with current period presentation as shown in the table
below.
Top of
page 23
Note 1. Basis of preparation (continued)
|
|
|
Third
|
Third
|
|
Nine
|
Nine
|
|
||||||
|
|
|
quarter
|
quarter
|
|
months
|
months
|
|
||||||
|
|
|
2020
|
2020
|
Impact of net
|
2020
|
2020
|
Impact of net
|
||||||
|
$ million
|
|
|
Restated
|
presentation(a)
|
|
Restated
|
presentation(a)
|
||||||
|
Sales and other operating revenues (Note 5)
|
|
|
|
|
|||||||||
|
gas & low carbon energy
|
|
4,141
|
|
3,518
|
|
(623)
|
|
14,376
|
|
12,270
|
|
(2,106)
|
|
|
oil production & operations
|
|
3,998
|
|
3,998
|
|
—
|
|
13,133
|
|
13,133
|
|
—
|
|
|
customers & products
|
|
40,256
|
|
22,940
|
|
(17,316)
|
|
121,461
|
|
66,537
|
|
(54,924)
|
|
|
other businesses & corporate
|
|
383
|
|
383
|
|
—
|
|
1,262
|
|
1,262
|
|
—
|
|
|
|
|
48,778
|
|
30,839
|
|
(17,939)
|
|
150,232
|
|
93,202
|
|
(57,030)
|
|
|
Less: sales and other revenues between segments
|
|
|
|
|
|
|
|
||||||
|
gas & low carbon energy
|
|
254
|
|
254
|
|
—
|
|
2,092
|
|
2,092
|
|
—
|
|
|
oil production & operations
|
|
3,726
|
|
3,726
|
|
—
|
|
12,097
|
|
12,097
|
|
—
|
|
|
customers & products
|
|
124
|
|
124
|
|
—
|
|
(328)
|
|
(328)
|
|
—
|
|
|
other businesses & corporate
|
|
423
|
|
423
|
|
—
|
|
794
|
|
794
|
|
—
|
|
|
|
|
4,527
|
|
4,527
|
|
—
|
|
14,655
|
|
14,655
|
|
—
|
|
|
External sales and other operating revenues
|
|
|
|
|
|
|
|
||||||
|
gas & low carbon energy
|
|
3,887
|
|
3,264
|
|
(623)
|
|
12,284
|
|
10,178
|
|
(2,106)
|
|
|
oil production & operations
|
|
272
|
|
272
|
|
—
|
|
1,037
|
|
1,037
|
|
—
|
|
|
customers & products
|
|
40,132
|
|
22,816
|
|
(17,316)
|
|
121,789
|
|
66,865
|
|
(54,924)
|
|
|
other businesses & corporate
|
|
(40)
|
|
(40)
|
|
—
|
|
467
|
|
467
|
|
—
|
|
|
Total sales and other operating revenues
|
|
44,251
|
|
26,312
|
|
(17,939)
|
|
135,577
|
|
78,547
|
|
(57,030)
|
|
|
Sales and other operating revenues include the following in
relation to revenues from contracts with customers:
|
|
|
|
|
|
|
|
||||||
|
Crude
oil
|
|
1,366
|
|
1,366
|
|
—
|
|
3,863
|
|
3,863
|
|
—
|
|
|
Oil
products
|
|
16,642
|
|
16,642
|
|
—
|
|
47,348
|
|
47,348
|
|
—
|
|
|
Natural
gas, LNG and NGLs
|
|
2,844
|
|
1,443
|
|
(1,401)
|
|
9,474
|
|
6,693
|
|
(2,781)
|
|
|
Non-oil
products and other revenues from contracts with
customers
|
|
2,624
|
|
2,580
|
|
(44)
|
|
7,232
|
|
7,149
|
|
(83)
|
|
|
Revenues from contracts with customers
|
|
23,476
|
|
22,031
|
|
(1,445)
|
|
67,917
|
|
65,053
|
|
(2,864)
|
|
|
Other operating revenues
|
|
20,775
|
|
4,281
|
|
(16,494)
|
|
67,660
|
|
13,494
|
|
(54,166)
|
|
|
Total sales and other operating revenues
|
|
44,251
|
|
26,312
|
|
(17,939)
|
|
135,577
|
|
78,547
|
|
(57,030)
|
|
(a) Total
purchases for the third quarter and nine months 2020 have been
re-stated by the equal and opposite amount as total sales and other
operating revenues.
Note 2. Non-current assets held for sale
The
carrying amount of assets classified as held for sale at 30
September 2021 is $39 million, with associated liabilities of $31
million.
At 31
December 2020 the balance consists primarily of a 20% participating
interest from BP’s 60% participating interest in Block 61 in
Oman, which is reported in the gas & low carbon energy segment.
As announced on 1 February 2021, BP agreed to sell this interest to
PTT Exploration and Production Public Company Limited (PTTEP) of
Thailand for a total consideration of up to $2.6 billion, subject
to final adjustments. On 28 March, a royal decree was published
approving the sale and $2.4 billion was received in March
2021.
Top of
page 24
Note 3. Impairment and losses on sale of businesses and fixed
assets(a)
Impairment
charges net of losses on sale of businesses and fixed assets for
the third quarter were $220 million and impairment reversals
net of losses on sale of businesses and fixed assets for the nine
months 2021 were $2,344 million respectively (charges of
$294 million and $13,213 million for the comparative
periods in 2020) and include net impairment charges for the third
quarter of 2021 of $256 million and net impairment reversals
for the nine months 2021 of $2,488 million (charges of
$278 million and $12,924 million for the comparative
periods in 2020).
gas & low carbon energy segment
In the
gas & low carbon energy segment there was a net impairment
charge of $197 million for the third quarter and a net
impairment reversal of $951 million for the nine months 2021
(charges of $76 million and $6,188 million for the
comparative periods in 2020).
Impairment
reversals for the nine months 2021 mainly relate to producing
assets and principally arose as a result of changes to the
group’s oil and gas price assumptions. They include amounts
in Azerbaijan, India and Trinidad. The recoverable amounts of the
cash generating units within these businesses were based on
value-in-use calculations.
oil production & operations segment
In the
oil production & operations segment there was a net impairment
charge of $5 million for the third quarter and a net
impairment reversal of $1,652 million for the nine months 2021
(charges of $197 million and $5,989 million for the
comparative periods in 2020).
Impairment
reversals for the nine months 2021 mainly relate to producing
assets and principally arose as a result of changes to the
group’s oil and gas price assumptions. They include amounts
in BPX Energy and the North Sea. The recoverable amounts of the
cash generating units within these businesses were based on
value-in-use calculations.
(a) All
disclosures are pre-tax.
Note 4. Analysis of replacement cost profit (loss) before interest
and tax and reconciliation to profit (loss) before
taxation(a)
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
$ million
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
gas & low carbon energy
|
|
(4,135)
|
|
927
|
|
252
|
|
|
222
|
|
(6,430)
|
|
|
oil production & operations
|
|
2,692
|
|
3,118
|
|
(156)
|
|
|
7,289
|
|
(14,649)
|
|
|
customers & products
|
|
1,060
|
|
640
|
|
915
|
|
|
2,634
|
|
2,173
|
|
|
Rosneft
|
|
868
|
|
643
|
|
(278)
|
|
|
1,874
|
|
(419)
|
|
|
other businesses & corporate
|
|
(750)
|
|
(425)
|
|
(42)
|
|
|
(1,853)
|
|
(867)
|
|
|
|
|
(265)
|
|
4,903
|
|
691
|
|
|
10,166
|
|
(20,192)
|
|
|
Consolidation adjustment – UPII*
|
|
(42)
|
|
(31)
|
|
34
|
|
|
(60)
|
|
166
|
|
|
RC profit (loss) before interest and tax*
|
|
(307)
|
|
4,872
|
|
725
|
|
|
10,106
|
|
(20,026)
|
|
|
Inventory holding gains (losses)*
|
|
|
|
|
|
|
|
|||||
|
gas
& low carbon energy
|
|
15
|
|
4
|
|
7
|
|
|
41
|
|
9
|
|
|
oil
production & operations
|
|
(1)
|
|
(6)
|
|
1
|
|
|
8
|
|
(12)
|
|
|
customers
& products
|
|
451
|
|
887
|
|
191
|
|
|
2,943
|
|
(3,446)
|
|
|
Rosneft
(net of tax)
|
|
35
|
|
68
|
|
34
|
|
|
191
|
|
(114)
|
|
|
Profit (loss) before interest and tax
|
|
193
|
|
5,825
|
|
958
|
|
|
13,289
|
|
(23,589)
|
|
|
Finance costs
|
|
693
|
|
682
|
|
800
|
|
|
2,098
|
|
2,366
|
|
|
Net
finance expense/(income) relating to pensions and other
post-retirement benefits
|
|
(5)
|
|
5
|
|
8
|
|
|
6
|
|
23
|
|
|
Profit (loss) before taxation
|
|
(495)
|
|
5,138
|
|
150
|
|
|
11,185
|
|
(25,978)
|
|
|
|
|
|
|
|
|
|
|
|||||
|
RC profit (loss) before interest and tax*
|
|
|
|
|
|
|
|
|||||
|
US
|
|
1,964
|
|
955
|
|
105
|
|
|
4,826
|
|
(3,995)
|
|
|
Non-US
|
|
(2,271)
|
|
3,917
|
|
620
|
|
|
5,280
|
|
(16,031)
|
|
|
|
|
(307)
|
|
4,872
|
|
725
|
|
|
10,106
|
|
(20,026)
|
|
(a)
Comparative
information for 2020 has been restated to reflect the changes in
reportable segments. For more information see Note 1 basis of
preparation - Change in
segmentation.
Top of
page 25
Note 5. Sales and other operating revenues(a)
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
$ million
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
By segment
|
|
|
|
|
|
|
|
|||||
|
gas & low carbon energy
|
|
2,554
|
|
5,739
|
|
3,518
|
|
|
16,295
|
|
12,270
|
|
|
oil production & operations
|
|
6,285
|
|
5,597
|
|
3,998
|
|
|
17,037
|
|
13,133
|
|
|
customers & products
|
|
34,382
|
|
31,160
|
|
22,940
|
|
|
92,649
|
|
66,537
|
|
|
other businesses & corporate
|
|
423
|
|
381
|
|
383
|
|
|
1,240
|
|
1,262
|
|
|
|
|
43,644
|
|
42,877
|
|
30,839
|
|
|
127,221
|
|
93,202
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Less: sales and other operating revenues between
segments
|
|
|
|
|
|
|
|
|||||
|
gas & low carbon energy
|
|
1,269
|
|
1,063
|
|
254
|
|
|
3,364
|
|
2,092
|
|
|
oil production & operations
|
|
5,423
|
|
4,928
|
|
3,726
|
|
|
15,206
|
|
12,097
|
|
|
customers & products
|
|
354
|
|
112
|
|
124
|
|
|
576
|
|
(328)
|
|
|
other businesses & corporate
|
|
424
|
|
307
|
|
423
|
|
|
890
|
|
794
|
|
|
|
|
7,470
|
|
6,410
|
|
4,527
|
|
|
20,036
|
|
14,655
|
|
|
|
|
|
|
|
|
|
|
|||||
|
External sales and other operating revenues
|
|
|
|
|
|
|
|
|||||
|
gas & low carbon energy
|
|
1,285
|
|
4,676
|
|
3,264
|
|
|
12,931
|
|
10,178
|
|
|
oil production & operations
|
|
862
|
|
669
|
|
272
|
|
|
1,831
|
|
1,037
|
|
|
customers & products
|
|
34,028
|
|
31,048
|
|
22,816
|
|
|
92,073
|
|
66,865
|
|
|
other businesses & corporate
|
|
(1)
|
|
74
|
|
(40)
|
|
|
350
|
|
467
|
|
|
Total sales and other operating revenues
|
|
36,174
|
|
36,467
|
|
26,312
|
|
|
107,185
|
|
78,547
|
|
|
|
|
|
|
|
|
|
|
|||||
|
By geographical area
|
|
|
|
|
|
|
|
|||||
|
US
|
|
15,372
|
|
15,305
|
|
8,319
|
|
|
45,168
|
|
25,516
|
|
|
Non-US
|
|
28,578
|
|
29,700
|
|
22,583
|
|
|
85,161
|
|
66,361
|
|
|
|
|
43,950
|
|
45,005
|
|
30,902
|
|
|
130,329
|
|
91,877
|
|
|
Less: sales and other operating revenues between areas
|
|
7,776
|
|
8,538
|
|
4,590
|
|
|
23,144
|
|
13,330
|
|
|
|
|
36,174
|
|
36,467
|
|
26,312
|
|
|
107,185
|
|
78,547
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Revenues from contracts with customers
|
|
|
|
|
|
|
|
|||||
|
Sales and other operating revenues include the following in
relation to revenues from contracts with customers:
|
|
|
|
|
|
|
|
|||||
|
Crude oil
|
|
2,292
|
|
1,291
|
|
1,366
|
|
|
4,917
|
|
3,863
|
|
|
Oil products
|
|
27,699
|
|
24,651
|
|
16,642
|
|
|
71,628
|
|
47,348
|
|
|
Natural
gas, LNG and NGLs(b)
|
|
4,458
|
|
4,273
|
|
1,443
|
|
|
12,912
|
|
6,693
|
|
|
Non-oil
products and other revenues from contracts with
customers(b)
|
|
2,275
|
|
1,603
|
|
2,580
|
|
|
5,276
|
|
7,149
|
|
|
Revenue from contracts with customers
|
|
36,724
|
|
31,818
|
|
22,031
|
|
|
94,733
|
|
65,053
|
|
|
Other
operating revenues(c)
|
|
(550)
|
|
4,649
|
|
4,281
|
|
|
12,452
|
|
13,494
|
|
|
Total sales and other operating revenues
|
|
36,174
|
|
36,467
|
|
26,312
|
|
|
107,185
|
|
78,547
|
|
(a)
Comparative
information for 2020 has been restated for the changes in
reportable segments and also for the changes to net presentation of
revenues and purchases relating to physically settled derivative
contracts effective 1 January 2021. For more information see Note 1
Basis of preparation - Voluntary
change in accounting policy and Change in segmentation.
(b)
Comparative
information has been amended for certain contracts that have been
reclassified to other operating revenues and restated to reflect
the net presentation described in Note 1 Basis of preparation -
Voluntary change in accounting
policy.
(c)
Principally relates
to commodity derivative transactions.
Top of
page 26
Note 6. Depreciation, depletion and amortization(a)
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
$ million
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
Total depreciation, depletion and amortization by
segment
|
|
|
|
|
|
|
|
|||||
|
gas & low carbon energy
|
|
1,230
|
|
1,115
|
|
746
|
|
|
3,199
|
|
2,736
|
|
|
oil production & operations
|
|
1,767
|
|
1,559
|
|
1,814
|
|
|
4,900
|
|
6,001
|
|
|
customers & products
|
|
747
|
|
754
|
|
743
|
|
|
2,246
|
|
2,242
|
|
|
other businesses & corporate
|
|
200
|
|
203
|
|
164
|
|
|
597
|
|
484
|
|
|
|
|
3,944
|
|
3,631
|
|
3,467
|
|
|
10,942
|
|
11,463
|
|
|
Total depreciation, depletion and amortization by geographical
area
|
|
|
|
|
|
|
|
|||||
|
US
|
|
1,206
|
|
1,161
|
|
1,191
|
|
|
3,488
|
|
4,020
|
|
|
Non-US
|
|
2,738
|
|
2,470
|
|
2,276
|
|
|
7,454
|
|
7,443
|
|
|
|
|
3,944
|
|
3,631
|
|
3,467
|
|
|
10,942
|
|
11,463
|
|
(a)
Comparative
information for 2020 has been restated to reflect the changes in
reportable segments. For more information see Note 1 basis of
preparation - Change in
segmentation.
Note 7. Earnings per share and shares in issue
Basic
earnings per ordinary share (EpS) amounts are calculated by
dividing the profit (loss) for the period attributable to ordinary
shareholders by the weighted average number of ordinary shares
outstanding during the period. During the third quarter 2021 221
million of ordinary shares were repurchased for cancellation for a
total cost of $926 million, including transaction costs of $5
million, as part of the share buyback programme announced on 27
April 2021. This brings the total number of shares repurchased in
the nine months to 336 million for a total cost of $1,426 million.
The number of shares in issue is reduced when shares are
repurchased.
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
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
Results for the period
|
|
|
|
|
|
|
|
|||||
|
Profit (loss) for the period attributable to bp
shareholders
|
|
(2,544)
|
|
3,116
|
|
(450)
|
|
|
5,239
|
|
(21,663)
|
|
|
Less: preference dividend
|
|
1
|
|
—
|
|
—
|
|
|
2
|
|
1
|
|
|
Profit (loss) attributable to bp ordinary shareholders
|
|
(2,545)
|
|
3,116
|
|
(450)
|
|
|
5,237
|
|
(21,664)
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Number of shares (thousand)(a)(b)
|
|
|
|
|
|
|
|
|||||
|
Basic
weighted average number of shares outstanding
|
|
20,150,186
|
|
20,272,111
|
|
20,251,199
|
|
|
20,239,365
|
|
20,217,559
|
|
|
ADS
equivalent(c)
|
|
3,358,364
|
|
3,378,685
|
|
3,375,199
|
|
|
3,373,228
|
|
3,369,593
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Weighted average
number of shares outstanding used to calculate diluted earnings per
share
|
|
20,150,186
|
|
20,366,731
|
|
20,251,199
|
|
|
20,359,280
|
|
20,217,559
|
|
|
ADS
equivalent(c)
|
|
3,358,364
|
|
3,394,455
|
|
3,375,199
|
|
|
3,393,213
|
|
3,369,593
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Shares in issue at period-end
|
|
20,008,900
|
|
20,224,314
|
|
20,254,417
|
|
|
20,008,900
|
|
20,254,417
|
|
|
ADS
equivalent(c)
|
|
3,334,816
|
|
3,370,719
|
|
3,375,736
|
|
|
3,334,816
|
|
3,375,736
|
|
(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. The numbers of potentially issuable shares that have been
excluded from the calculation for the third quarter 2021, third
quarter 2020 and nine months 2020 are 123,543 thousand (ADS
equivalent 20,591 thousand), 81,097 thousand (ADS equivalent 13,516
thousand) and 94,302 thousand (ADS equivalent 15,717 thousand)
respectively.
(c)
One ADS is
equivalent to six ordinary shares.
Top of
page 27
Note 8. Dividends
Dividends payable
BP
today announced an interim dividend of 5.46 cents per ordinary
share which is expected to be paid on 17 December 2021 to ordinary
shareholders and American Depositary Share (ADS) holders on the
register on 12 November 2021. The ex-dividend date will be 10
November 2021 for ADS holders and 11 November 2021 for ordinary
shareholders. The corresponding amount in sterling is due to be
announced on 7 December 2021, calculated based on the average of
the market exchange rates over three dealing days between 1
December 2021 and 3 December 2021. Holders of ADSs are expected to
receive $0.3276 per ADS (less applicable fees). The board has
decided not to offer a scrip dividend alternative in respect of the
third quarter 2021 dividend. Ordinary shareholders and ADS holders
(subject to certain exceptions) will be able to participate in a
dividend reinvestment programme. Details of the third quarter
dividend and timetable are available at bp.com/dividends and further details of
the dividend reinvestment programmes are available at bp.com/drip.
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
Dividends paid per ordinary share
|
|
|
|
|
|
|
|
|||||
|
cents
|
|
5.460
|
|
5.250
|
|
5.250
|
|
|
15.960
|
|
26.250
|
|
|
pence
|
|
3.953
|
|
3.712
|
|
4.043
|
|
|
11.433
|
|
20.541
|
|
|
Dividends paid per ADS (cents)
|
|
32.76
|
|
31.50
|
|
31.50
|
|
|
95.76
|
|
157.50
|
|
Note 9. Net debt
|
Net debt*
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
$ million
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
Finance
debt(a)(b)
|
|
63,214
|
|
68,247
|
|
72,828
|
|
|
63,214
|
|
72,828
|
|
|
Fair
value (asset) liability of hedges related to finance
debt(c)
|
|
(549)
|
|
(1,285)
|
|
(1,384)
|
|
|
(549)
|
|
(1,384)
|
|
|
|
|
62,665
|
|
66,962
|
|
71,444
|
|
|
62,665
|
|
71,444
|
|
|
Less:
cash and cash equivalents(b)
|
|
30,694
|
|
34,256
|
|
31,065
|
|
|
30,694
|
|
31,065
|
|
|
Net
debt(d)
|
|
31,971
|
|
32,706
|
|
40,379
|
|
|
31,971
|
|
40,379
|
|
|
Total equity
|
|
89,266
|
|
93,232
|
|
82,155
|
|
|
89,266
|
|
82,155
|
|
|
Gearing*
|
|
26.4%
|
26.0%
|
33.0%
|
|
26.4%
|
33.0%
|
|||||
(a)
The fair value of
finance debt at 30 September 2021 was $65,316 million (30 June 2021
$70,589 million, 30 September 2020 $75,338 million).
(b)
Third quarter and
nine months 2020 include $316 million of cash and $19 million of
finance debt included in assets and liabilities held
for
sale in
the group balance sheet.
(c)
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 $151 million
at 30 September 2021 (second quarter 2021 liability of
$308 million and third quarter 2020 liability of
$372 million) are not included in the calculation of net debt
shown above as hedge accounting is not applied for these
instruments.
(d)
Net debt does not
include accrued interest, which is reported within other
receivables and other payables on the balance sheet and for which
the associated cash flows are presented as operating cash flows in
the group cash flow statement.
As part
of actively managing its debt portfolio, in the third quarter the
group bought back $4.2 billion equivalent of finance debt (second
quarter 2021 $nil; third quarter 2020 $4.0 billion) consisting of
$2.4 billion of USD bonds in July 2021, and a further $1.8 billion
equivalent in September 2021 comprising $1.4 billion euro and
sterling bonds and $0.4 billion other USD debt. Year to date the
group has bought back a total of $8.1 billion equivalent of finance
debt ($4.0 billion for the comparative period in 2020). Derivatives
associated with debt bought back in each of these periods were also
terminated. There was no significant impact on net debt or gearing
as a result of these transactions.
Note 10. Inventory valuation
A
provision of $129 million was held against hydrocarbon inventories
at 30 September 2021 ($17 million at 30 June 2021 and $544 million
at 30 September 2020) to write them down to their net realizable
value. As a result of the changes in strategic direction of the
group and the evolution of the trading strategy set out in Note 1,
from 1 January, certain inventory, totalling $12.8 billion as
at 30 September 2021 ($11.0 billion as at 30 June 2021), is now
treated as trading inventory and is valued at fair value whereas
the equivalent inventory was previously valued at the lower of cost
or net realisable value in prior periods.
Top of
page 28
Note 11. Statutory accounts
The
financial information shown in this publication, which was approved
by the Board of Directors on 1 November 2021, is unaudited and does
not constitute statutory financial statements. Audited financial
information will be published in BP Annual Report and Form 20-F 2021. BP Annual
Report and Form 20-F 2020 has been filed with the Registrar
of Companies in England and Wales. The report of the auditor on
those accounts was unqualified, did not include a reference to any
matters to which the auditor drew attention by way of emphasis
without qualifying the report and did not contain a statement under
section 498(2) or section 498(3) of the UK Companies Act
2006.
Top of
page 29
Additional information
Capital expenditure*(a)
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
$ million
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
Capital expenditure
|
|
|
|
|
|
|
|
|||||
|
Organic capital expenditure*
|
|
2,850
|
|
2,511
|
|
2,512
|
|
|
8,267
|
|
9,085
|
|
|
Inorganic
capital expenditure*(b)(c)
|
|
53
|
|
3
|
|
1,124
|
|
|
948
|
|
1,479
|
|
|
|
|
2,903
|
|
2,514
|
|
3,636
|
|
|
9,215
|
|
10,564
|
|
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
$ million
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
Capital expenditure by segment
|
|
|
|
|
|
|
|
|||||
|
gas
& low carbon energy(b)
|
|
1,072
|
|
747
|
|
935
|
|
|
3,704
|
|
3,138
|
|
|
oil production & operations
|
|
1,099
|
|
1,148
|
|
1,117
|
|
|
3,566
|
|
4,696
|
|
|
customers & products
|
|
597
|
|
519
|
|
1,519
|
|
|
1,648
|
|
2,545
|
|
|
other businesses & corporate
|
|
135
|
|
100
|
|
65
|
|
|
297
|
|
185
|
|
|
|
|
2,903
|
|
2,514
|
|
3,636
|
|
|
9,215
|
|
10,564
|
|
|
Capital expenditure by geographical area
|
|
|
|
|
|
|
|
|||||
|
US
|
|
1,176
|
|
890
|
|
741
|
|
|
3,553
|
|
3,177
|
|
|
Non-US
|
|
1,727
|
|
1,624
|
|
2,895
|
|
|
5,662
|
|
7,387
|
|
|
|
|
2,903
|
|
2,514
|
|
3,636
|
|
|
9,215
|
|
10,564
|
|
(a)
Comparative
information for 2020 has been restated to reflect the changes in
reportable segments. For more information see Note 1 Basis of
preparation - Change in
segmentation.
(b)
Nine months 2021
includes the final payment of $712 million in respect of the
strategic partnership with Equinor.
(c)
Third quarter and
nine months 2020 include $1 billion relating to an investment in a
49% interest in the group's Indian fuels and mobility venture with
Reliance industries. Nine months 2020 also includes amounts
relating to the 25-year extension to our ACG production-sharing
agreement* in Azerbaijan.
Top of
page 30
Adjusting items*(a)
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
$ million
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
gas & low carbon energy
|
|
|
|
|
|
|
|
|||||
|
Gains
on sale of businesses and fixed assets(b)
|
|
—
|
|
—
|
|
—
|
|
|
1,034
|
|
—
|
|
|
Impairment
and losses on sale of businesses and fixed assets(c)
|
|
(197)
|
|
1,270
|
|
(83)
|
|
|
950
|
|
(6,197)
|
|
|
Environmental and other provisions
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
Restructuring,
integration and rationalization costs(d)
|
|
—
|
|
(21)
|
|
(36)
|
|
|
(29)
|
|
(40)
|
|
|
Fair
value accounting effects(e)(f)
|
|
(5,808)
|
|
(1,311)
|
|
(217)
|
|
|
(6,872)
|
|
(61)
|
|
|
Other(g)
|
|
63
|
|
(251)
|
|
86
|
|
|
(178)
|
|
(667)
|
|
|
|
|
(5,942)
|
|
(313)
|
|
(250)
|
|
|
(5,095)
|
|
(6,965)
|
|
|
oil production & operations
|
|
|
|
|
|
|
|
|||||
|
Gains on sale of businesses and fixed assets
|
|
261
|
|
216
|
|
9
|
|
|
645
|
|
103
|
|
|
Impairment
and losses on sale of businesses and fixed assets(c)
|
|
33
|
|
1,751
|
|
(191)
|
|
|
1,575
|
|
(6,182)
|
|
|
Environmental
and other provisions(h)
|
|
(68)
|
|
(776)
|
|
(9)
|
|
|
(909)
|
|
(22)
|
|
|
Restructuring,
integration and rationalization costs(d)
|
|
4
|
|
(90)
|
|
(129)
|
|
|
(90)
|
|
(153)
|
|
|
Fair value accounting effects
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
Other(g)(i)
|
|
1
|
|
(225)
|
|
(203)
|
|
|
(200)
|
|
(1,944)
|
|
|
|
|
231
|
|
876
|
|
(523)
|
|
|
1,021
|
|
(8,198)
|
|
|
customers & products
|
|
|
|
|
|
|
|
|||||
|
Gains on sale of businesses and fixed assets
|
|
(25)
|
|
8
|
|
16
|
|
|
(114)
|
|
10
|
|
|
Impairment and losses on sale of businesses and fixed
assets
|
|
(58)
|
|
(35)
|
|
(20)
|
|
|
(136)
|
|
(823)
|
|
|
Environmental and other provisions
|
|
(1)
|
|
(8)
|
|
—
|
|
|
(9)
|
|
—
|
|
|
Restructuring,
integration and rationalization costs(d)
|
|
16
|
|
(10)
|
|
(142)
|
|
|
(35)
|
|
(111)
|
|
|
Fair
value accounting effects(f)
|
|
(30)
|
|
(139)
|
|
425
|
|
|
290
|
|
135
|
|
|
Other
|
|
—
|
|
(3)
|
|
—
|
|
|
(3)
|
|
—
|
|
|
|
|
(98)
|
|
(187)
|
|
279
|
|
|
(7)
|
|
(789)
|
|
|
Rosneft
|
|
|
|
|
|
|
|
|||||
|
Other
|
|
(55)
|
|
(46)
|
|
(101)
|
|
|
(101)
|
|
(164)
|
|
|
|
|
(55)
|
|
(46)
|
|
(101)
|
|
|
(101)
|
|
(164)
|
|
|
other businesses & corporate
|
|
|
|
|
|
|
|
|||||
|
Gains on sale of businesses and fixed assets
|
|
—
|
|
—
|
|
2
|
|
|
—
|
|
4
|
|
|
Impairment and losses on sale of businesses and fixed
assets
|
|
1
|
|
(50)
|
|
—
|
|
|
(50)
|
|
—
|
|
|
Environmental and other provisions
|
|
(65)
|
|
(72)
|
|
(32)
|
|
|
(137)
|
|
(55)
|
|
|
Restructuring,
integration and rationalization costs(d)
|
|
(12)
|
|
(74)
|
|
(155)
|
|
|
(111)
|
|
(201)
|
|
|
Gulf of Mexico oil spill
|
|
(17)
|
|
(18)
|
|
(63)
|
|
|
(46)
|
|
(115)
|
|
|
Fair
value accounting effects(f)
|
|
(263)
|
|
73
|
|
266
|
|
|
(637)
|
|
225
|
|
|
Other
|
|
(21)
|
|
21
|
|
61
|
|
|
(24)
|
|
48
|
|
|
|
|
(377)
|
|
(120)
|
|
79
|
|
|
(1,005)
|
|
(94)
|
|
|
Total before interest and taxation
|
|
(6,241)
|
|
210
|
|
(516)
|
|
|
(5,187)
|
|
(16,210)
|
|
|
Finance
costs(j)(k)
|
|
(175)
|
|
(202)
|
|
(198)
|
|
|
(525)
|
|
(434)
|
|
|
Total before taxation
|
|
(6,416)
|
|
8
|
|
(714)
|
|
|
(5,712)
|
|
(16,644)
|
|
|
Taxation credit (charge) on adjusting items
|
|
193
|
|
(396)
|
|
(101)
|
|
|
(191)
|
|
3,686
|
|
|
Taxation
– impact of foreign exchange(l)
|
|
(33)
|
|
(30)
|
|
85
|
|
|
(76)
|
|
(166)
|
|
|
Total taxation on adjusting items
|
|
160
|
|
(426)
|
|
(16)
|
|
|
(267)
|
|
3,520
|
|
|
Total after taxation for period
|
|
(6,256)
|
|
(418)
|
|
(730)
|
|
|
(5,979)
|
|
(13,124)
|
|
(a)
Prior to 2021
adjusting items were reported under two different headings –
non-operating items and fair value accounting effects. Comparative
information for 2020 has been restated to reflect the changes in
reportable segments. For more information see Note 1 Basis of
preparation – Change in
segmentation.
(b)
Nine months 2021
relates to a gain from the divestment of a 20% stake in Oman Block
61.
(c)
See Note 3 for
further information.
(d)
All periods in 2021
include recognized provisions for restructuring costs associated
with the reinvent programme that was formalized in
2020.
(e)
Under IFRS bp
marks-to-market the derivative financial instruments used to
risk-manage LNG contracts, but does not mark-to-market the physical
LNG contracts themselves, resulting in a mismatch in accounting
treatment. The fair value accounting effect removes this mismatch,
and the underlying result reflects how bp risk-manages its LNG
contracts.
(f)
For further
information, including the nature of fair value accounting effects
reported in each segment, see page 36.
(g)
Nine months 2020
includes the exploration write-off of $670 million in gas and low
carbon energy relating to fair value ascribed to certain licences
as part of the accounting at the time of acquisition of gas &
low carbon assets in India and the impairment of certain intangible
assets in Mauritania and Senegal and $1,301 million in oil
production & operations relating to fair value ascribed to
certain licences as part of the accounting at the time of
acquisition of oil production & operations assets in Brazil and
the Gulf of Mexico.
Top of
page 31
(h)
Second quarter and
nine months 2021 include adjustments relating to the change in
discount rate on retained decommissioning provisions and the
recognition of a decommissioning provision in relation to certain
assets previously sold to a third party where the decommissioning
obligation transferred may revert to bp due to the financial
condition of the current owner.
(i)
Nine months 2021
includes a $415 million charge relating to a remeasurement of
deferred tax balances in our equity-accounted entity in Argentina
following income tax rate changes partially offset by impairment
reversals in equity-accounted entities.
(j)
All periods
presented include the unwinding of discounting effects relating to
Gulf of Mexico oil spill payables and the income statement impact
associated with the buyback of finance debt. See Note 9 for further
information.
(k)
From first quarter
2021 bp is presenting temporary valuation differences associated
with the group’s interest rate and foreign currency exchange
risk management of finance debt as an adjusting item within finance
costs. In 2020 these amounts were presented within production and
manufacturing expenses and as an 'other' adjusting item in the
other business & corporate segment. Relevant amounts in the
comparative periods presented were not material.
(l)
bp is presenting
certain foreign exchange effects on tax as adjusting items. These
amounts represent the impact of: (i) foreign exchange on deferred
tax balances arising from the conversion of local currency tax base
amounts into functional currency, and (ii) taxable gains and losses
from the retranslation of US dollar-denominated intra-group loans
to local currency.
Net debt including leases
|
Net debt including leases*
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
$ million
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
Net debt
|
|
31,971
|
|
32,706
|
|
40,379
|
|
|
31,971
|
|
40,379
|
|
|
Lease liabilities
|
|
8,628
|
|
8,863
|
|
9,282
|
|
|
8,628
|
|
9,282
|
|
|
Net
partner (receivable) payable for leases entered into on behalf of
joint operations
|
|
111
|
|
109
|
|
(41)
|
|
|
111
|
|
(41)
|
|
|
Net debt including leases
|
|
40,710
|
|
41,678
|
|
49,620
|
|
|
40,710
|
|
49,620
|
|
|
Total
equity
|
|
89,266
|
|
93,232
|
|
82,155
|
|
|
89,266
|
|
82,155
|
|
|
Gearing including leases*
|
|
31.3%
|
30.9%
|
37.7%
|
|
31.3%
|
37.7%
|
|||||
Gulf of Mexico oil spill
|
|
|
30 September
|
31 December
|
||
|
$ million
|
|
2021
|
2020
|
||
|
Gulf of Mexico oil spill payables and provisions
|
|
(10,329)
|
|
(11,436)
|
|
|
Of
which - current
|
|
(1,272)
|
|
(1,444)
|
|
|
|
|
|
|
||
|
Deferred tax asset
|
|
4,016
|
|
5,471
|
|
During
the second quarter pre-tax payments of $1,199 million were made
relating to the 2016 consent decree and settlement agreement with
the United States and the five Gulf coast states. Payables and
provisions presented in the table above reflect the latest estimate
for the remaining costs associated with the Gulf of Mexico oil
spill. Where amounts have been provided on an estimated basis, the
amounts ultimately payable may differ from the amounts provided and
the timing of payments is uncertain. Further information relating
to the Gulf of Mexico oil spill, including information on the
nature and expected timing of payments relating to provisions and
other payables, is provided in BP
Annual Report and Form 20-F 2020 - Financial
statements - Notes 7, 9, 20, 22, 23, 29, and 33.
Top of
page 32
Working capital* reconciliation(a)
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
$ million
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
Movements in
inventories and other current and non-current assets and
liabilities as per condensed group cash flow statement(b)
|
|
3,850
|
|
26
|
|
556
|
|
|
1,083
|
|
630
|
|
|
Adjusted
for inventory holding gains (losses)* (Note 4 excluding
Rosneft)
|
|
465
|
|
885
|
|
199
|
|
|
2,992
|
|
(3,449)
|
|
|
Adjusted for fair value accounting effects
|
|
(6,101)
|
|
(1,377)
|
|
474
|
|
|
(7,219)
|
|
299
|
|
|
Working capital release (build) after adjusting for net inventory
gains (losses) and fair value accounting effects
|
|
(1,786)
|
|
(466)
|
|
1,229
|
|
|
(3,144)
|
|
(2,520)
|
|
(a) Commencing
with second quarter 2021 results fair value accounting effects have
been included in the working capital reconciliation. For further
information see Glossary page 40.
(b) The
movement in working capital includes outflows relating to the Gulf
of Mexico oil spill on a pre-tax basis of $37 million and $1,375
million in the third quarter and nine months of 2021 respectively.
For the same periods in 2020 the amount was an outflow of $180
million and $1,670 million respectively. Net cash outflows relating
to the Gulf of Mexico oil spill in 2021 and 2020 include payments
made under the 2016 consent decree and settlement agreement with
the United States and the five Gulf coast states.
Surplus cash flow* reconciliation
|
|
|
Third
|
Nine
|
||
|
|
|
quarter
|
months
|
||
|
$ million
|
|
2021
|
2021
|
||
|
Sources:
|
|
|
|
||
|
Net cash provided by operating activities
|
|
5,976
|
|
17,496
|
|
|
Cash provided from investing activities
|
|
346
|
|
4,853
|
|
|
Receipts relating to transactions involving non-controlling
interests
|
|
—
|
|
671
|
|
|
Cash inflow
|
|
6,322
|
|
23,020
|
|
|
|
|
|
|
||
|
Uses:
|
|
|
|
||
|
Lease liability payments
|
|
(506)
|
|
(1,580)
|
|
|
Payments on perpetual hybrid bonds
|
|
(55)
|
|
(438)
|
|
|
Dividends paid – BP shareholders
|
|
(1,101)
|
|
(3,227)
|
|
|
–
non-controlling interests
|
|
(87)
|
|
(245)
|
|
|
Total capital expenditure*
|
|
(2,903)
|
|
(9,215)
|
|
|
Net repurchase of shares relating to employee share
schemes
|
|
—
|
|
(500)
|
|
|
Payments relating to transactions involving non-controlling
interests
|
|
(560)
|
|
(560)
|
|
|
Currency translation differences relating to cash and cash
equivalents
|
|
(177)
|
|
(211)
|
|
|
Cash outflow
|
|
(5,389)
|
|
(15,976)
|
|
|
|
|
|
|
||
|
Cash used to meet net debt target
|
|
—
|
|
(3,729)
|
|
|
|
|
|
|
||
|
Surplus cash flow
|
|
933
|
|
3,315
|
|
Top of
page 33
Reconciliation of customers & products RC profit before
interest and tax* to underlying RC profit before interest and tax
to adjusted EBITDA* by business
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
$ million
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
RC profit before interest and tax for customers &
products
|
|
1,060
|
|
640
|
|
915
|
|
|
2,634
|
|
2,173
|
|
|
Less: Adjusting items gains (charges)
|
|
(98)
|
|
(187)
|
|
279
|
|
|
(7)
|
|
(789)
|
|
|
Underlying RC profit before interest and tax for customers
& products
|
|
1,158
|
|
827
|
|
636
|
|
|
2,641
|
|
2,962
|
|
|
By business:
|
|
|
|
|
|
|
|
|||||
|
customers
– convenience & mobility
|
|
806
|
|
951
|
|
1,081
|
|
|
2,415
|
|
2,201
|
|
|
Castrol – included in customers
|
|
231
|
|
265
|
|
326
|
|
|
830
|
|
556
|
|
|
products
– refining & trading
|
|
352
|
|
(124)
|
|
(533)
|
|
|
226
|
|
561
|
|
|
petrochemicals
|
|
—
|
|
—
|
|
88
|
|
|
—
|
|
200
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Add back: Depreciation, depletion and amortization
|
|
747
|
|
754
|
|
743
|
|
|
2,246
|
|
2,242
|
|
|
By business:
|
|
|
|
|
|
|
|
|||||
|
customers
– convenience & mobility
|
|
324
|
|
329
|
|
306
|
|
|
977
|
|
876
|
|
|
Castrol – included in customers
|
|
36
|
|
39
|
|
38
|
|
|
114
|
|
119
|
|
|
products
– refining & trading
|
|
423
|
|
425
|
|
435
|
|
|
1,269
|
|
1,264
|
|
|
petrochemicals
|
|
—
|
|
—
|
|
2
|
|
|
—
|
|
102
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Adjusted EBITDA for customers & products
|
|
1,905
|
|
1,581
|
|
1,379
|
|
|
4,887
|
|
5,204
|
|
|
By business:
|
|
|
|
|
|
|
|
|||||
|
customers
– convenience & mobility
|
|
1,130
|
|
1,280
|
|
1,387
|
|
|
3,392
|
|
3,077
|
|
|
Castrol – included in customers
|
|
267
|
|
304
|
|
364
|
|
|
944
|
|
675
|
|
|
products
– refining & trading
|
|
775
|
|
301
|
|
(98)
|
|
|
1,495
|
|
1,825
|
|
|
petrochemicals
|
|
—
|
|
—
|
|
90
|
|
|
—
|
|
302
|
|
Top of
page 34
Realizations* and marker prices
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
Average realizations(a)
|
|
|
|
|
|
|
|
|||||
|
Liquids* ($/bbl)
|
|
|
|
|
|
|
|
|||||
|
US
|
|
59.87
|
|
53.64
|
|
31.74
|
|
|
52.92
|
|
33.24
|
|
|
Europe
|
|
74.02
|
|
69.19
|
|
43.52
|
|
|
67.79
|
|
41.35
|
|
|
Rest of World
|
|
68.67
|
|
64.44
|
|
41.46
|
|
|
63.51
|
|
36.13
|
|
|
BP Average
|
|
65.63
|
|
60.69
|
|
38.17
|
|
|
59.78
|
|
35.51
|
|
|
Natural gas ($/mcf)
|
|
|
|
|
|
|
|
|||||
|
US
|
|
3.51
|
|
3.03
|
|
1.29
|
|
|
3.33
|
|
1.19
|
|
|
Europe
|
|
17.07
|
|
8.94
|
|
2.34
|
|
|
10.96
|
|
2.22
|
|
|
Rest of World
|
|
5.26
|
|
4.13
|
|
2.99
|
|
|
4.44
|
|
3.21
|
|
|
BP Average
|
|
5.35
|
|
4.08
|
|
2.56
|
|
|
4.48
|
|
2.65
|
|
|
Total hydrocarbons* ($/boe)
|
|
|
|
|
|
|
|
|||||
|
US
|
|
45.39
|
|
41.14
|
|
22.04
|
|
|
41.24
|
|
23.01
|
|
|
Europe
|
|
81.99
|
|
63.85
|
|
36.14
|
|
|
66.51
|
|
34.34
|
|
|
Rest of World
|
|
45.13
|
|
40.27
|
|
27.40
|
|
|
40.45
|
|
26.19
|
|
|
BP Average
|
|
47.57
|
|
41.84
|
|
26.42
|
|
|
42.37
|
|
25.68
|
|
|
Average oil marker prices ($/bbl)
|
|
|
|
|
|
|
|
|||||
|
Brent
|
|
73.51
|
|
68.97
|
|
42.94
|
|
|
67.92
|
|
41.06
|
|
|
West Texas Intermediate
|
|
70.54
|
|
66.19
|
|
40.91
|
|
|
65.06
|
|
38.12
|
|
|
Western Canadian Select
|
|
56.95
|
|
53.10
|
|
31.62
|
|
|
52.06
|
|
27.54
|
|
|
Alaska North Slope
|
|
72.66
|
|
68.58
|
|
42.75
|
|
|
67.53
|
|
41.32
|
|
|
Mars
|
|
69.09
|
|
66.01
|
|
42.01
|
|
|
64.67
|
|
39.18
|
|
|
Urals (NWE – cif)
|
|
70.63
|
|
66.69
|
|
42.83
|
|
|
65.60
|
|
40.83
|
|
|
Average natural gas marker prices
|
|
|
|
|
|
|
|
|||||
|
Henry
Hub gas price(b) ($/mmBtu)
|
|
4.02
|
|
2.83
|
|
1.98
|
|
|
3.19
|
|
1.88
|
|
|
UK Gas – National Balancing Point (p/therm)
|
|
118.81
|
|
64.79
|
|
21.06
|
|
|
78.38
|
|
19.69
|
|
|
|
|
|
|
|
|
|
|
|||||
(a)
Based on sales of
consolidated subsidiaries only – this excludes equity-accounted
entities.
(b)
Henry Hub First of
Month Index.
Exchange rates
|
|
|
Third
|
Second
|
Third
|
|
Nine
|
Nine
|
|||||
|
|
|
quarter
|
quarter
|
quarter
|
|
months
|
months
|
|||||
|
|
|
2021
|
2021
|
2020
|
|
2021
|
2020
|
|||||
|
$/£ average rate for the period
|
|
1.38
|
|
1.40
|
|
1.29
|
|
|
1.39
|
|
1.27
|
|
|
$/£ period-end rate
|
|
1.34
|
|
1.38
|
|
1.28
|
|
|
1.34
|
|
1.28
|
|
|
|
|
|
|
|
|
|
|
|||||
|
$/€ average rate for the period
|
|
1.18
|
|
1.21
|
|
1.17
|
|
|
1.20
|
|
1.12
|
|
|
$/€ period-end rate
|
|
1.16
|
|
1.19
|
|
1.17
|
|
|
1.16
|
|
1.17
|
|
|
|
|
|
|
|
|
|
|
|||||
|
$/AUD average rate for the period
|
|
0.73
|
|
0.77
|
|
0.71
|
|
|
0.76
|
|
0.67
|
|
|
$/AUD period-end rate
|
|
0.72
|
|
0.75
|
|
0.71
|
|
|
0.72
|
|
0.71
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Rouble/$ average rate for the period
|
|
73.52
|
|
74.20
|
|
73.74
|
|
|
74.04
|
|
71.00
|
|
|
Rouble/$ period-end rate
|
|
72.78
|
|
72.70
|
|
77.57
|
|
|
72.78
|
|
77.57
|
|
Top of
page 35
Legal proceedings
For a
full discussion of the group’s material legal proceedings,
see pages 226-227 of bp Annual
Report and Form 20-F 2020.
Glossary
Non-GAAP
measures are provided for investors because they are closely
tracked by management to evaluate bp’s operating performance
and to make financial, strategic and operating decisions. Non-GAAP
measures are sometimes referred to as alternative performance
measures.
New
metrics have been introduced in 2021 to provide transparency
against key strategic value drivers.
Adjusted EBITDA is a non-GAAP measure presented for bp's
operating segments and is defined as replacement cost (RC) profit
before interest and tax, excluding net adjusting items*, adding
back depreciation, depletion and amortization and exploration
write-offs (net of adjusting items). Adjusted EBITDA by business is
a further analysis of adjusted EBITDA for the customers &
products businesses. bp believes it is helpful to disclose adjusted
EBITDA by operating segment and by business because it reflects how
the segments measure underlying business delivery. The nearest
equivalent measure on an IFRS basis for the segment is RC profit or
loss before interest and tax, which is bp's measure of profit or
loss that is required to be disclosed for each operating segment
under IFRS.
Adjusting items are items that bp discloses separately
because it considers such disclosures to be meaningful and relevant
to investors. They are items that management considers to be
important to period-on-period analysis of the group's results and
are disclosed in order to enable investors to better understand and
evaluate the group’s reported financial performance.
Adjusting items include gains and losses on the sale of businesses
and fixed assets, impairments, environmental and other provisions,
restructuring, integration and rationalization costs, fair value
accounting effects, costs relating to the Gulf of Mexico oil spill
and other items. Adjusting items within equity-accounted earnings
are reported net of incremental income tax reported by the
equity-accounted entity. Adjusting items are used as a reconciling
adjustment to derive underlying RC profit or loss and related
underlying measures which are non-GAAP measures. An analysis of
adjusting items by segment and type is shown on page 30. Prior to
2021 adjusting items were reported under two different headings
– non-operating items and fair value accounting
effects.
Capital expenditure is total cash capital expenditure as
stated in the condensed group cash flow statement. Capital
expenditure for the operating segments and customers & products
businesses is presented on the same basis.
Cash balance point is defined as the implied Brent oil price
for the quarter that would cause the sum of operating cash flow
excluding Gulf of Mexico oil spill payments (assuming actual
refining marker margins and Henry Hub gas prices for the quarter)
and proceeds from loan repayments to equate to the sum of total
cash capital expenditure, lease liability payments, dividend paid,
and payments on perpetual hybrid bonds.
Consolidation adjustment – UPII is unrealized profit
in inventory arising on inter-segment transactions.
Convenience gross margin is a non-GAAP measure. Convenience
gross margin is calculated as RC profit before interest and tax for
the customers & products segment, excluding RC profit before
interest and tax for the refining & trading and petrochemicals
businesses, and adjusting items* (as defined above) for the
convenience & mobility business to derive underlying RC profit
before interest and tax for the convenience & mobility
business; subtracting underlying RC profit before interest and tax
for the Castrol business; adding back depreciation, depletion and
amortization, production and manufacturing, distribution and
administration expenses for convenience & mobility (excluding
Castrol); subtracting earnings from equity-accounted entities in
the convenience & mobility business (excluding Castrol) and
gross margin for the retail fuels, next-gen, aviation, B2B and
midstream businesses.
Convenience gross margin growth at constant foreign exchange
is a non-GAAP measure. This metric requires a calculation of the
comparative convenience gross margin ($ million) at current period
foreign exchange rates (constant foreign exchange) and compares the
current period value with the restated comparative period value,
which results in the growth % at constant foreign exchange rates.
bp believes the convenience gross margin and growth at constant
foreign exchange are useful measures because these measures may
help investors to understand and evaluate, in the same way as
management, our progress against our strategic objectives of
redefining convenience. The nearest GAAP measure to convenience
gross margin is RC profit before interest and tax for the customer
& products segment.
Developed renewables to final investment decision (FID)
– Total generating capacity for assets developed to FID by
all entities where bp has an equity share (proportionate to equity
share). If asset is subsequently sold bp will continue to record
capacity as developed to FID. If bp equity share increases
developed capacity to FID will increase proportionately to share
increase for any assets where bp held equity at the point of
FID.
Divestment proceeds are disposal proceeds as per the
condensed group cash flow statement.
Effective tax rate (ETR) on replacement cost (RC) profit or
loss is a non-GAAP measure. The ETR on RC profit or loss is
calculated by dividing taxation on a RC basis by RC profit or loss
before tax. Taxation on a RC basis for the group is calculated as
taxation as stated on the group income statement adjusted for
taxation on inventory holding gains and losses. Information on RC
profit or loss is provided below. bp believes it is helpful to
disclose the ETR on RC profit or loss because this measure excludes
the impact of price changes on the replacement of inventories and
allows for more meaningful comparisons between reporting periods.
Taxation on a RC basis and ETR on RC profit or loss are non-GAAP
measures. The nearest equivalent measure on an IFRS basis is the
ETR on profit or loss for the period.
Top of
page 36
Glossary (continued)
Electric vehicle charge points are defined as charge points
operated by either bp or a bp joint venture.
Fair value accounting effects are non-GAAP adjustments to
our IFRS profit (loss). They reflect the difference between the way
bp manages the economic exposure and internally measures
performance of certain activities and the way those activities are
measured under IFRS. Fair value accounting effects are included
within adjusting items. They relate to certain of the group's
commodity, interest rate and currency risk exposures as detailed
below. Other than as noted below, the fair value accounting effects
described are reported in both the gas & low carbon energy and
customer & products segments.
bp uses
derivative instruments to manage the economic exposure relating to
inventories above normal operating requirements of crude oil,
natural gas and petroleum products. Under IFRS, these inventories
are recorded at historical cost. The related derivative
instruments, however, are required to be recorded at fair value
with gains and losses recognized in the income statement. This is
because hedge accounting is either not permitted or not followed,
principally due to the impracticality of effectiveness-testing
requirements. Therefore, measurement differences in relation to
recognition of gains and losses occur. Gains and losses on these
inventories, other than net realizable value provisions, are not
recognized until the commodity is sold in a subsequent accounting
period. Gains and losses on the related derivative commodity
contracts are recognized in the income statement, from the time the
derivative commodity contract is entered into, on a fair value
basis using forward prices consistent with the contract
maturity.
bp
enters into physical commodity contracts to meet certain business
requirements, such as the purchase of crude for a refinery or the
sale of bp’s gas production. Under IFRS these physical
contracts are treated as derivatives and are required to be fair
valued when they are managed as part of a larger portfolio of
similar transactions. Gains and losses arising are recognized in
the income statement from the time the derivative commodity
contract is entered into.
IFRS
require that inventory held for trading is recorded at its fair
value using period-end spot prices, whereas any related derivative
commodity instruments are required to be recorded at values based
on forward prices consistent with the contract maturity. Depending
on market conditions, these forward prices can be either higher or
lower than spot prices, resulting in measurement
differences.
bp
enters into contracts for pipelines and other transportation,
storage capacity, oil and gas processing, liquefied natural gas
(LNG) and certain gas and power contracts that, under IFRS, are
recorded on an accruals basis. These
contracts are risk-managed using a variety of derivative
instruments that are fair valued under IFRS. This results in
measurement differences in relation to recognition of gains and
losses.
The way
that bp manages the economic exposures described above, and
measures performance internally, differs from the way these
activities are measured under IFRS. bp calculates this difference
for consolidated entities by comparing the IFRS result with
management’s internal measure of performance. Under
management’s internal measure of performance the inventory,
transportation and capacity contracts in question are valued based
on fair value using relevant forward prices prevailing at the end
of the period. The
fair values of derivative instruments used to risk manage certain
oil, gas, power and other contracts, are deferred to match with the
underlying exposure and the commodity contracts for business
requirements are accounted for on an accruals basis. We believe
that disclosing management’s estimate of this difference
provides useful information for investors because it enables
investors to see the economic effect of these activities as a
whole.
Fair
value accounting effects also include changes in the fair value of
the near-term portions of LNG contracts that fall within bp’s
risk management framework. LNG contracts are not considered
derivatives, because there is insufficient market liquidity, and
they are therefore accrual accounted under IFRS. However, oil and
natural gas derivative financial instruments (used to risk manage
the near-term portions of the LNG contracts) are fair valued under
IFRS. The fair value accounting effect, which is reported in the
gas and low carbon energy segment, reduces the measurement
differences between that of the derivative financial instruments
used to risk manage the LNG contracts and the measurement of the
LNG contracts themselves, which therefore gives a better
representation of performance in each period.
In
addition, from the second quarter 2020 fair value accounting
effects include changes in the fair value of derivatives entered
into by the group to manage currency exposure and interest rate
risks relating to hybrid bonds to their respective first call
periods. The hybrid bonds which were issued on 17 June 2020
are classified as equity instruments and were recorded in the
balance sheet at that date at their USD equivalent issued value.
Under IFRS these equity instruments are not remeasured from period
to period, and do not qualify for application of hedge accounting.
The derivative instruments relating to the hybrid bonds, however,
are required to be recorded at fair value with mark to market gains
and losses recognized in the income statement. Therefore,
measurement differences in relation to the recognition of gains and
losses occur. The fair value accounting effect, which is reported
in the other businesses & corporate segment, eliminates the
fair value gains and losses of these derivative financial
instruments that are recognized in the income statement. We
believe that this gives a better representation of performance, by
more appropriately reflecting the economic effect of these risk
management activities, in each period.
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Glossary (continued)
Gearing and net debt are non-GAAP measures. Net debt is
calculated as finance debt, as shown in the balance sheet, plus the
fair value of associated derivative financial instruments that are
used to hedge foreign currency exchange and interest rate risks
relating to finance debt, for which hedge accounting is applied,
less cash and cash equivalents. Net debt does not include accrued
interest, which is reported within other receivables and other
payables on the balance sheet and for which the associated cash
flows are presented as operating cash flows in the group cash flow
statement. Gearing is defined as the ratio of net debt to the total
of net debt plus total equity. bp believes these measures provide
useful information to investors. Net debt enables investors to see
the economic effect of finance debt, related hedges and cash and
cash equivalents in total. Gearing enables investors to see how
significant net debt is relative to total equity. The derivatives
are reported on the balance sheet within the headings
‘Derivative financial instruments’. The nearest
equivalent GAAP measures on an IFRS basis are finance debt and
finance debt ratio. A reconciliation of finance debt to net debt is
provided on page 27.
We are
unable to present reconciliations of forward-looking information
for net debt or gearing to finance debt and total equity, because
without unreasonable efforts, we are unable to forecast accurately
certain adjusting items required to present a meaningful comparable
GAAP forward-looking financial measure. These items include fair
value asset (liability) of hedges related to finance debt and cash
and cash equivalents, that are difficult to predict in advance in
order to include in a GAAP estimate.
Gearing including leases and net debt including leases are
non-GAAP measures. Net debt including leases is calculated as net
debt plus lease liabilities, less the net amount of partner
receivables and payables relating to leases entered into on behalf
of joint operations. Gearing including leases is defined as the
ratio of net debt including leases to the total of net debt
including leases plus total equity. bp believes these measures
provide useful information to investors as they enable investors to
understand the impact of the group’s lease portfolio on net
debt and gearing. The nearest equivalent GAAP measures on an IFRS
basis are finance debt and finance debt ratio. A reconciliation of
finance debt to net debt including leases is provided on page
31.
Hydrocarbons –
Liquids and natural gas. Natural gas is converted to oil equivalent
at 5.8 billion cubic feet = 1 million barrels.
Inorganic capital expenditure is a non-GAAP measure.
Inorganic capital expenditure comprises consideration in business
combinations and certain other significant investments made by the
group. It is reported on a cash basis. bp believes that this
measure provides useful information as it allows investors to
understand how bp’s management invests funds in projects
which expand the group’s activities through acquisition. The
nearest equivalent measure on an IFRS basis is capital expenditure
on a cash basis. Further information and a reconciliation to GAAP
information is provided on page 29.
Installed renewables capacity is bp's share of capacity for
operating assets owned by entities where bp has an equity
share.
Inventory holding gains and losses are non-GAAP adjustments
to our IFRS profit (loss) and represent:
a.
the difference
between the cost of sales calculated using the replacement cost of
inventory and the cost of sales calculated on the first-in
first-out (FIFO) method after adjusting for any changes in
provisions where the net realizable value of the inventory is lower
than its cost. Under the FIFO method, which we use for IFRS
reporting of inventories other than for trading inventories, the
cost of inventory charged to the income statement is based on its
historical cost of purchase or manufacture, rather than its
replacement cost. In volatile energy markets, this can have a
significant distorting effect on reported income. The amounts
disclosed as inventory holding gains and losses represent the
difference between the charge to the income statement for inventory
on a FIFO basis (after adjusting for any related movements in net
realizable value provisions) and the charge that would have arisen
based on the replacement cost of inventory. For this purpose, the
replacement cost of inventory is calculated using data from each
operation’s production and manufacturing system, either on a
monthly basis, or separately for each transaction where the system
allows this approach; and
b.
an adjustment
relating to certain trading inventories that are not price risk
managed which relate to a minimum inventory volume that is required
to be held to maintain underlying business activities. This
adjustment represents the movement in fair value of the inventories
due to prices, on a grade by grade basis, during the period. This
is calculated from each operation’s inventory management
system on a monthly basis using the discrete monthly movement in
market prices for these inventories.
The
amounts disclosed are not separately reflected in the financial
statements as a gain or loss. No adjustment is made in respect of
the cost of inventories held as part of a trading position and
certain other temporary inventory positions that are price
risk-managed. See Replacement cost (RC) profit or loss definition
below.
Liquids – Liquids for oil production & operations,
gas & low carbon energy and Rosneft comprises crude oil,
condensate and natural gas liquids. For oil production &
operations and gas & low carbon energy, liquids also includes
bitumen.
Major projects have a bp net investment of at least $250
million, or are considered to be of strategic importance to bp or
of a high degree of complexity.
Operating cash flow is
net cash provided by (used in) operating activities as stated in
the condensed group cash flow statement.
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Glossary (continued)
Organic capital expenditure is a non-GAAP measure. Organic
capital expenditure comprises capital expenditure on a cash basis
less inorganic capital expenditure. bp believes that this measure
provides useful information as it allows investors to understand
how bp’s management invests funds in developing and
maintaining the group’s assets. The nearest equivalent
measure on an IFRS basis is capital expenditure on a cash basis and
a reconciliation to GAAP information is provided on page
29.
We are
unable to present reconciliations of forward-looking information
for organic capital expenditure to total cash capital expenditure,
because without unreasonable efforts, we are unable to forecast
accurately the adjusting item, inorganic capital expenditure, that
is difficult to predict in advance in order to derive the nearest
GAAP estimate.
Production-sharing agreement/contract (PSA/PSC) is an
arrangement through which an oil and gas company bears the risks
and costs of exploration, development and production. In return, if
exploration is successful, the oil company receives entitlement to
variable physical volumes of hydrocarbons, representing recovery of
the costs incurred and a stipulated share of the production
remaining after such cost recovery.
Realizations are the result of dividing revenue generated
from hydrocarbon sales, excluding revenue generated from purchases
made for resale and royalty volumes, by revenue generating
hydrocarbon production volumes. Revenue generating hydrocarbon
production reflects the bp share of production as adjusted for any
production which does not generate revenue. Adjustments may include
losses due to shrinkage, amounts consumed during processing, and
contractual or regulatory host committed volumes such as
royalties.
Refining availability represents
Solomon Associates’ operational availability for bp-operated
refineries, which is defined as the percentage of the year that a
unit is available for processing after subtracting the annualized
time lost due to turnaround activity and all planned mechanical,
process and regulatory downtime.
The
Refining marker
margin (RMM) is the average of regional indicator margins
weighted for bp’s crude refining capacity in each region.
Each regional marker margin is based on product yields and a marker
crude oil deemed appropriate for the region. The regional indicator
margins may not be representative of the margins achieved by bp in
any period because of bp’s particular refinery configurations
and crude and product slate.
Renewables pipeline – Renewable projects satisfying
criteria to the point they can be considered developed to final
investment decision (FID): Site based projects have obtained land
exclusivity rights, or for PPA based projects an offer has been
made to the counterparty, or for auction projects pre-qualification
criteria has been met, or for acquisition projects post a binding
offer being accepted.
Replacement cost (RC) profit or loss / RC profit or loss
attributable to bp shareholders reflects the replacement
cost of inventories sold in the period and is calculated as profit
or loss attributable to bp shareholders, adjusting for inventory
holding gains and losses (net of tax). RC profit or loss for the
group is not a recognized GAAP measure. bp believes this measure is
useful to illustrate to investors the fact that crude oil and
product prices can vary significantly from period to period and
that the impact on our reported result under IFRS can be
significant. Inventory holding gains and losses vary from period to
period due to changes in prices as well as changes in underlying
inventory levels. In order for investors to understand the
operating performance of the group excluding the impact of price
changes on the replacement of inventories, and to make comparisons
of operating performance between reporting periods, bp’s
management believes it is helpful to disclose this measure. The
nearest equivalent measure on an IFRS basis is profit or loss
attributable to bp shareholders. A reconciliation to GAAP
information is provided on page 1. RC profit or loss before
interest and tax is bp's measure of profit or loss that is required
to be disclosed for each operating segment under IFRS.
Reported recordable injury frequency measures the number of
reported work-related employee and contractor incidents that result
in a fatality or injury per 200,000 hours worked. This represents
reported incidents occurring within bp’s operational HSSE
reporting boundary. That boundary includes bp’s own operated
facilities and certain other locations or situations. Reported
incidents are investigated throughout the year and as a result
there may be changes in previously reported incidents. Therefore
comparative movements are calculated against internal data
reflecting the final outcomes of such investigations, rather than
the previously reported comparative period, as this this represents
a more up to date reflection of the safety
environment.
Retail sites include sites operated by dealers, jobbers,
franchisees or brand licensees or joint venture (JV) partners,
under the bp brand. These may move to and from the bp brand as
their fuel supply agreement or brand licence agreement expires and
are renegotiated in the normal course of business. Retail sites are
primarily branded bp, ARCO,
Amoco, Aral and Thorntons, and also includes sites in
India through our Jio-bp JV.
Retail sites in growth markets are retail sites that are
either bp branded or co-branded with our partners in China, Mexico
and Indonesia and also include sites in India through our Jio-bp
JV.
Solomon availability – See Refining availability
definition.
Strategic convenience sites are retail sites, within the bp
portfolio, which both sell bp branded fuel and carry one of the
strategic convenience brands (e.g. M&S, Rewe to Go). To be
considered a strategic convenience brand the convenience offer
should be a strategic differentiator in the market in which it
operates. Strategic convenience site count includes sites under a
pilot phase.
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Glossary (continued)
Surplus cash flow is a non-GAAP measure and refers to the
net surplus of sources of cash over uses of cash, after reaching
the $35 billion net debt target. Sources of cash include net cash
provided by operating activities, cash provided from investing
activities and cash receipts relating to transactions involving
non-controlling interests. Uses of cash include lease liability
payments, payments on perpetual hybrid bond, dividends paid, cash
capital expenditure, the cash cost of share buybacks to offset the
dilution from vesting of awards under employee share schemes, cash
payments relating to transactions involving non-controlling
interests and currency translation differences relating to cash and
cash equivalents as presented on the condensed group cash flow
statement. See page 32 for the
components of our sources of cash and uses of cash.
Technical service contract (TSC) – Technical service
contract is an arrangement through which an oil and gas company
bears the risks and costs of exploration, development and
production. In return, the oil and gas company receives entitlement
to variable physical volumes of hydrocarbons, representing recovery
of the costs incurred and a profit margin which reflects
incremental production added to the oilfield.
Tier 1 and tier 2 process safety events – Tier 1
events are losses of primary containment from a process of greatest
consequence – causing harm to a member of the workforce,
damage to equipment from a fire or explosion, a community impact or
exceeding defined quantities. Tier 2 events are those of lesser
consequence. These represent reported incidents occurring within
bp’s operational HSSE reporting boundary. That boundary
includes bp’s own operated facilities and certain other
locations or situations. Reported process safety events are
investigated throughout the year and as a result there may be
changes in previously reported events. Therefore comparative
movements are calculated against internal data reflecting the final
outcomes of such investigations, rather than the previously
reported comparative period, as this this represents a more up to
date reflection of the safety environment.
Underlying effective tax rate (ETR) is a non-GAAP measure.
The underlying ETR is calculated by dividing taxation on an
underlying replacement cost (RC) basis by underlying RC profit or
loss before tax. Taxation on an underlying RC basis for the group
is calculated as taxation as stated on the group income statement
adjusted for taxation on inventory holding gains and losses and
total taxation on adjusting items. Information on underlying RC
profit or loss is provided below. Taxation on an underlying RC
basis presented for the operating segments is calculated through an
allocation of taxation on an underlying RC basis to each segment.
bp believes it is helpful to disclose the underlying ETR because
this measure may help investors to understand and evaluate, in the
same manner as management, the underlying trends in bp’s
operational performance on a comparable basis, period on period.
Taxation on an underlying RC basis and underlying ETR are non-GAAP
measures. The nearest equivalent measure on an IFRS basis is the
ETR on profit or loss for the period.
We are
unable to present reconciliations of forward-looking information
for underlying ETR to ETR on profit or loss for the period, because
without unreasonable efforts, we are unable to forecast accurately
certain adjusting items required to present a meaningful comparable
GAAP forward-looking financial measure. These items include the
taxation on inventory holding gains and losses and adjusting items,
that are difficult to predict in advance in order to include in a
GAAP estimate.
Underlying production – 2021 underlying production,
when compared with 2020, is production after adjusting for
acquisitions and divestments, curtailments, and entitlement impacts
in our production-sharing agreements/contracts and technical
service contract.
Underlying RC profit or loss / underlying RC profit or loss
attributable to bp shareholders is a non-GAAP measure and is
RC profit or loss* (as defined on page 38) after excluding net
adjusting items and related taxation. See page 30 for additional
information on the adjusting items that are used to arrive at
underlying RC profit or loss in order to enable a full
understanding of the items and their financial impact. Underlying RC profit or loss
before interest and tax for the operating segments or
customers & products businesses is calculated as RC profit or
loss (as defined above) including profit or loss attributable to
non-controlling interests before interest and tax for the operating
segments and excluding net adjusting items for the respective
operating segment or business.
bp
believes that underlying RC profit or loss is a useful measure for
investors because it is a measure closely tracked by management to
evaluate bp’s operating performance and to make financial,
strategic and operating decisions and because it may help investors
to understand and evaluate, in the same manner as management, the
underlying trends in bp’s operational performance on a
comparable basis, period on period, by adjusting for the effects of
these adjusting items. The nearest equivalent measure on an IFRS
basis for the group is profit or loss attributable to bp
shareholders. The nearest equivalent measure on an IFRS basis for
segments and businesses is RC profit or loss before interest and
taxation. A reconciliation to GAAP information is provided on page
1 for the group and pages 6-14 for the segments.
Top of
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Glossary (continued)
Underlying RC profit or loss per share is a non-GAAP
measure. Earnings per share is defined in Note 7. Underlying RC
profit or loss per ordinary share is calculated using the same
denominator as earnings per share as defined in the consolidated
financial statements. The numerator used is underlying RC profit or
loss attributable to bp shareholders rather than profit or loss
attributable to bp shareholders. Underlying RC profit or loss
per ADS is calculated as outlined above for underlying RC
profit or loss per share except the denominator is adjusted to
reflect one ADS equivalent to six ordinary shares. bp believes it
is helpful to disclose the underlying RC profit or loss per
ordinary share and per ADS because these measures may help
investors to understand and evaluate, in the same manner as
management, the underlying trends in bp’s operational
performance on a comparable basis, period on period. The nearest
equivalent measure on an IFRS basis is basic earnings per share
based on profit or loss for the period attributable to bp
shareholders.
upstream includes oil and natural gas field development and
production within the gas & low carbon energy and oil
production & operations segments. References to upstream
exclude Rosneft.
upstream/hydrocarbon plant reliability (bp-operated) is
calculated taking 100% less the ratio of total unplanned plant
deferrals divided by installed production capacity. Unplanned plant
deferrals are associated with the topside plant and where
applicable the subsea equipment (excluding wells and reservoir).
Unplanned plant deferrals include breakdowns, which does not
include Gulf of Mexico weather related downtime.
upstream unit production cost is calculated as production
cost divided by units of production. Production cost does not
include ad valorem and severance taxes. Units of production are
barrels for liquids and thousands of cubic feet for gas. Amounts
disclosed are for bp subsidiaries only and do not include
bp’s share of equity-accounted entities.
Working capital is movements in inventories and other
current and non-current assets and liabilities as reported in the
condensed group cash flow statement.
Change
in working capital adjusted for inventory holding gains/losses and
fair value accounting effects is a non-GAAP measure. It is
calculated by adjusting for inventory holding gains/losses reported
in the period and from the second quarter onwards, it is also
adjusted for fair value accounting effects reported within
adjusting items for the period. This represents what would have
been reported as movements in inventories and other current and
non-current assets and liabilities, if the starting point in
determining net cash provided by operating activities had been
underlying replacement cost profit rather than profit for the
period. The nearest equivalent measure on an IFRS basis for this is
movements in inventories and other current and non-current assets
and liabilities.
bp
utilizes various arrangements in order to manage its working
capital including discounting of receivables and, in the supply and
trading business, the active management of supplier payment terms,
inventory and collateral.
Trade marks
Trade
marks of the bp group appear throughout this announcement. They
include:
bp, Amoco,
Aral, Castrol ON and
Thorntons
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Cautionary statement
In order to utilize the ‘safe harbor’ provisions of the
United States Private Securities Litigation Reform Act of 1995 (the
‘PSLRA’) and the general doctrine of cautionary
statements, bp is providing the following cautionary
statement:
The discussion in this results announcement contains certain
forecasts, projections and forward-looking statements - that is,
statements related to future, not past events and circumstances -
with respect to the financial condition, results of operations and
businesses of bp and certain of the plans and objectives of bp with
respect to these items. These statements may generally, but not
always, be identified by the use of words such as
‘will’, ‘expects’, ‘is expected
to’, ‘aims’, ‘should’,
‘may’, ‘objective’, ‘is likely
to’, ‘intends’, ‘believes’,
‘anticipates’, ‘plans’, ‘we
see’ or similar expressions.
In particular, the following, among other statements, are all
forward looking in nature: expectations regarding the COVID-19
pandemic, including its risks, impacts, consequences, duration,
continued restrictions, challenges, bp’s response, the impact
on bp’s financial performance (including cash flows and net
debt), operations and credit losses, and the impact on the trading
environment, oil and gas prices, and global GDP; expectations
regarding the shape of the COVID-19 recovery and the pace of
transition to a lower-carbon economy and energy system; plans,
expectations and assumptions regarding oil and gas demand, supply
or prices, the timing of production of reserves, or decision making
by OPEC+; expectations regarding refining margins, refinery
utilization rates and product demand; expectations regarding
bp’s future financial performance and cash flows;
expectations regarding future upstream production and project
ramp-up; expectations regarding supply shortages; expectations with
respect to completion of transactions and the timing and amount of
proceeds of agreed disposals; expectations with regards to
bp’s transformation to an IEC; plans and expectations
regarding bp’s financial framework; expectations regarding
price assumptions used in accounting estimates; bp’s plans
and expectations regarding the amount and timing of share buybacks;
expectations regarding future quarterly dividends; plans and
expectations regarding net debt; plans and expectations regarding
bp’s credit rating, including in respect of maintaining a
strong investment grade credit rating; plans and expectations
regarding the allocation of surplus cash flow to share buybacks and
strengthening the balance sheet; plans and expectations regarding
bp’s 2025 target of 20GW renewables developed to FID and
Lightsource bp’s increased development target for 2025; plans
and expectations regarding the East Coast Cluster and the Northern
Endurance Partnership; plans and expectations with respect to the
total capital expenditure, depreciation, depletion and
amortization, expected tax rate and business and corporate
underlying annual charge for 2021; plans and expectations regarding
net debt; plans and expectations regarding the divestment
programme, including the amount and timing of proceeds in 2021, and
plans and expectations in respect of reaching $25 billion of
divestment and other proceeds by 2025 and expectations that
divestment and other proceeds for 2021 will be $6-7 billion; plans
and expectations regarding bp’s renewable energy and
alternative energy businesses; expectations regarding reported and
underlying production and related major project ramp-up, capital
investments, divestment and maintenance activity; expectations
regarding price assumptions used in accounting estimates;
expectations regarding the underlying effective tax rate for 2021;
expectations regarding the timing and amount of future payments
relating to the Gulf of Mexico oil spill; plans and expectations
that capital expenditure, including inorganic capital expenditure,
will reach around $13 billion in 2021; expectations regarding
Rosneft’s operational and financial results and expectations
with respect to Rosneft dividends; plans and expectations regarding
new joint ventures and other agreements, including partnerships and
other collaborations with Prumo, Siemens, SPIC Brazil, Reliance
Industries, Shenzhen Gas, Swiggy, ADNOC, Masdar, Eni, Equinor,
National Grid, Shell, Total, EnBW, Albert Heijn, NYK Line,
ExxonMobil, Daimler, BMW, Albert Heijn and our Jio-bp JV, as well
as plans and expectations regarding the solar development projects
acquired from 7X Energy, the Thunder Horse South Expansion Phase 2
project, the sale of bp’s participating interest in the
Shallow Water Absheron Peninsula exploration project to LUKOIL,
Yermak IJV’s access to new license blocks, the Thorntons
business, bp’s investment in Digital Charging Solutions,
bp’s planned investment in the Cherry Point refinery, the
acquisition of Blueprint Power, and bp ventures’ investment
in BluSmart.
By their nature, forward-looking statements involve risk and
uncertainty because they relate to events and depend on
circumstances that will or may occur in the future and are outside
the control of bp.
Actual results may differ materially from those expressed in such
statements, depending on a variety of factors, including: the
extent and duration of the impact of current market conditions
including the volatility of oil prices, the impact of COVID-19,
overall global economic and business conditions impacting our
business and demand for our products as well as the specific
factors identified in the discussions accompanying such
forward-looking statements; changes in consumer preferences and
societal expectations; the pace of development and adoption of
alternative energy solutions; developments in policy, law,
regulation, technology and markets, including societal and investor
sentiment related to the issue of climate change; the receipt of
relevant third party and/or regulatory approvals; the timing and
level of maintenance and/or turnaround activity; the timing and
volume of refinery additions and outages; the timing of bringing
new fields onstream; the timing, quantum and nature of certain
acquisitions and divestments; future levels of industry product
supply, demand and pricing, including supply growth in North
America and continued base oil and additive supply shortages; OPEC+
quota restrictions; PSA and TSC effects; operational and safety
problems; potential lapses in product quality; economic and
financial market conditions generally or in various countries and
regions; political stability and economic growth in relevant areas
of the world; changes in laws and governmental regulations;
regulatory or legal actions including the types of enforcement
action pursued and the nature of remedies sought or imposed; the
actions of prosecutors, regulatory authorities and courts; delays
in the processes for resolving claims; amounts ultimately payable
and timing of payments relating to the Gulf of Mexico oil spill;
exchange rate fluctuations; development and use of new technology;
recruitment and retention of a skilled workforce; the success or
otherwise of partnering; the actions of competitors, trading
partners, contractors, subcontractors, creditors, rating agencies
and others; our access to future credit resources; business
disruption and crisis management; the impact on our reputation of
ethical misconduct and non-compliance with regulatory obligations;
trading losses; major uninsured losses; decisions by
Rosneft’s management and board of directors; the actions of
contractors; natural disasters and adverse weather conditions;
changes in public expectations and other changes to business
conditions; wars and acts of terrorism; cyber-attacks or sabotage;
and other factors discussed elsewhere in this report, as well those
factors discussed under “Risk factors” in bp Annual
Report and Form 20-F 2020 as filed with the US Securities and
Exchange Commission.
Top of
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Contacts
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London
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Houston
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Press Office
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David Nicholas
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Brett Clanton
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+44 (0)20 7496 4708
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+1 281 366 8346
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Investor Relations
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Craig Marshall
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Geoff Carr
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bp.com/investors
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+44 (0)20 7496 4962
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+1 281 892 3065
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BP
p.l.c.’s LEI Code 213800LH1BZH3D16G760
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
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BP
p.l.c.
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(Registrant)
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Dated: 2
November 2021
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/s/ Ben
J. S. Mathews
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Ben J.
S. Mathews
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Company
Secretary
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