Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


Form 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

for the period ended 31 December 2017
Commission File Number 1-06262

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 of Form 20-F or Form 40-F:
 
 
 
 
Form 20-F x  Form 40-F ¨  
 
 
 
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE PROSPECTUS INCLUDED IN THE REGISTRATION STATEMENT ON FORM F-3 (FILE NOS. 333-208478 AND 333-208478-01) OF BP CAPITAL MARKETS p.l.c. AND BP p.l.c.; THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-67206) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-79399) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-103924) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-123482) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-123483) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-131583) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-131584) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-132619) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-146868) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-146870) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-146873) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-173136) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-177423) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-179406) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-186462) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-186463) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-199015) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-200794) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-200795) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-207188) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-207189) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-210316) OF BP p.l.c., THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-210318) OF BP p.l.c., AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED, TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED OR FURNISHED.


1

Table of contents

BP p.l.c. and subsidiaries
Form 6-K for the period ended 31 December 2017(a) 

 
 
 
Page
1.
 
3-14, 27-32, 34-36
 
 
 
 
2.
 
14-26
 
 
 
 
3.
 
33
 
 
 
 
4.
 
37
 
 
 
 
5.
 
38
 
 
 
 
6.
 
39
 
 
 
 
7.
 
40
(a) 
In this Form 6-K, references to the full year 2017 and full year 2016 refer to full year periods ended 31 December 2017 and 31 December 2016 respectively. References to the fourth quarter 2017 and fourth quarter 2016 refer to the three-month periods ended 31 December 2017 and 31 December 2016 respectively.
(b) 
This discussion should be read in conjunction with the consolidated financial statements and related notes provided elsewhere in this Form 6-K and with the information, including the consolidated financial statements and related notes, in BP’s Annual Report on Form 20-F for the year ended 31 December 2016.


2

Table of contents

Group results fourth quarter and full year 2017

Full year
Highlights
 
Profit for the full year and fourth quarter was $3.4 billion and $27 million respectively, compared with $115 million and $497 million for the same periods in 2016. Underlying replacement cost profit* was $6.2 billion for full year 2017 and $2.1 billion for the fourth quarter, compared with $2.6 billion and $400 million for full year and fourth quarter 2016 respectively.
Operating cash flow* for 2017 was $18.9 billion, after post-tax Gulf of Mexico oil spill expenditure of $5.2 billion, compared with $10.7 billion, after post-tax Gulf of Mexico oil spill expenditure of $6.9 billion in 2016.
Downstream earnings were very strong with underlying replacement cost profit of $7.0 billion, 24% higher than 2016 and replacement cost profit of $7.2 billion, 40% higher than 2016.
Operational reliability was high, with refining availability* and Upstream BP-operated plant reliability* both 95%.
Seven new major projects* delivered, boosting oil and gas production. Upstream production, excluding BP's share of Rosneft production, was 12% higher than 2016, the highest since 2010. Including Rosneft, production was 3.6 million barrels of oil equivalent a day, 10% higher than 2016. Oil and gas realizations were 25% higher.
Exploration delivered the most successful year for BP since 2004.
Dividend unchanged at 10 cents per share.
BP began share buybacks in the fourth quarter, spending $343 million, fully offsetting the dilution from scrip dividends issued in the third quarter.
Non-operating items in the fourth quarter, which are excluded from underlying profit*, included a $0.9 billion charge for US tax changes and a $1.7 billion post-tax charge relating to a further provision for claims associated with the oil spill.

 
Financial summary
 
Fourth

Fourth

 




 
quarter

quarter

 
Year

Year

$ million
 
2017

2016

 
2017

2016

Profit for the period(a)
 
27

497

 
3,389

115

Inventory holding (gains) losses*, before tax
 
(816
)
(601
)
 
(853
)
(1,597
)
Taxation charge (credit) on inventory holding gains and losses
 
206

176

 
225

483

RC profit (loss)*
 
(583
)
72

 
2,761

(999
)
Net (favourable) adverse impact of non-operating items* and fair value
 
 
 
 
 
 
  accounting effects*, before tax
 
2,559

481

 
3,730

6,746

Taxation charge (credit) on non-operating items and fair value accounting effects
 
131

(153
)
 
(325
)
(3,162
)
Underlying RC profit
 
2,107

400

 
6,166

2,585

Profit per ordinary share (cents)
 
0.14

2.62

 
17.20

0.61

Profit per ADS (dollars)
 
0.01

0.16

 
1.03

0.04

RC profit (loss) per ordinary share (cents)*
 
(2.94
)
0.38

 
14.02

(5.33
)
RC profit (loss) per ADS (dollars)
 
(0.18
)
0.02

 
0.84

(0.32
)
Underlying RC profit per ordinary share (cents)*
 
10.64

2.11

 
31.31

13.79

Underlying RC profit per ADS (dollars)
 
0.64

0.13

 
1.88

0.83

(a) 
Profit attributable to BP shareholders.

* See definitions in the Glossary on page 34. RC profit (loss), underlying RC profit and organic capital expenditure are non-GAAP measures.
The commentary above and following should be read in conjunction with the cautionary statement on page 37.

3

Table of contents

Group headlines
Earnings
BP’s profit for the fourth quarter and full year was $27 million and $3,389 million respectively, compared with $497 million and $115 million for the same periods in 2016.
For the full year, replacement cost (RC) profit was $2,761 million, compared with a loss of $999 million in 2016. Underlying RC profit was $6,166 million, compared with $2,585 million in 2016. Underlying RC profit is after adjusting for a net charge for non-operating items of $3,309 million and net adverse fair value accounting effects of $96 million (both on a post-tax basis).
For the fourth quarter, RC loss was $583 million, compared with a profit of $72 million for the same period in 2016. Underlying RC profit was $2,107 million compared with $400 million for the same period in 2016. Underlying RC profit is after adjusting for a net charge for non-operating items of $2,515 million and net adverse fair value accounting effects of $175 million (both on a post-tax basis).
See further information on page 5.
Depreciation, depletion and amortization
The charge for depreciation, depletion and amortization was $15.6 billion in 2017, compared with $14.5 billion in 2016. In 2018, we expect the charge to be higher than 2017.
Non-operating items
Non-operating items amounted to a charge of $2,325 million pre-tax and $2,515 million post-tax for the quarter and a charge of $3,622 million pre-tax and $3,309 million post-tax for the full year. The post-tax non-operating charge for the fourth quarter includes a charge of $1.7 billion relating to business economic loss and other claims associated with the Gulf of Mexico oil spill (see Note 2 on page 19) and a $0.9 billion deferred tax charge following the change in the US tax rate. See further information on page 28.
Effective tax rate
The effective tax rate (ETR) on the profit or loss for the fourth quarter and full year was 95% and 52% respectively, compared with 12% and 107% for the same periods in 2016.
The ETR on RC profit or loss* for the fourth quarter and full year was significantly impacted by the effect of non-operating items and therefore it is not a meaningful measure.
The adjusted ETR* is calculated by eliminating the impact of non-operating items, which for the fourth quarter includes a one-off deferred tax charge in respect of the revaluation of deferred tax assets and liabilities following the reduction in the US federal corporate income tax rate from 35% to 21% enacted in December 2017; fair value accounting effects; and the impact of a reduction in the UK supplementary tax charge in the third quarter of 2016.
The adjusted ETR for the fourth quarter and full year was 27% and 38% respectively, compared with 10% and 23% for the same periods in 2016. The adjusted ETR for the fourth quarter 2017 reflects a benefit from the reassessment of the recognition of deferred tax assets. The adjusted ETR for the fourth quarter 2016 was impacted by a high proportion of equity-accounted income (which is reported net of tax in the income statement) within RC profit, and reflected a benefit from the reassessment of the recognition of deferred tax assets and other items, partly offset by charges for foreign exchange impacts.
The adjusted ETR for the full year is higher than last year predominantly due to changes in the geographical mix of profits notably the impact of the renewal of our interest in the Abu Dhabi onshore oil concession. In the current environment, and assuming no further reassessment of the
 
recognition of deferred tax assets, the adjusted ETR in 2018 is expected to be above 40%. ETR on RC profit or loss and adjusted ETR are non-GAAP measures.
Dividend
BP today announced a quarterly dividend of 10.00 cents per ordinary share ($0.600 per ADS), which is expected to be paid on 29 March 2018. The corresponding amount in sterling will be announced on 19 March 2018. See page 25 for further information.
Share buybacks
BP recommenced a share buyback programme in the fourth quarter to offset the dilution of the scrip issue and repurchased 51 million ordinary shares at a cost of $343 million, including fees and stamp duty, during the fourth quarter of 2017.
Operating cash flow*
Operating cash flow for the fourth quarter and full year was $5.9 billion and $18.9 billion respectively, after post-tax expenditure relating to the Gulf of Mexico oil spill of $0.3 billion and $5.2 billion. For the same periods in 2016 the equivalent amounts were $2.4 billion and $10.7 billion, after post-tax Gulf of Mexico oil spill expenditure of $2.0 billion and $6.9 billion.
Capital expenditure*
Total capital expenditure for the fourth quarter and full year was $4.8 billion and $17.8 billion respectively, compared with $4.9 billion and $17.5 billion for the same periods in 2016.
Organic capital expenditure* for the fourth quarter and full year was $4.6 billion and $16.5 billion respectively, compared with $4.5 billion and $16.7 billion for the same periods in 2016. In 2018, we expect organic capital expenditure to be in the range of $15-16 billion.
Inorganic capital expenditure* for the fourth quarter and full year was $0.2 billion and $1.3 billion respectively, compared with $0.4 billion and $0.8 billion for the same periods in 2016.
See page 27 for further information.
Divestment and other proceeds
Total divestment and other proceeds for the year were $4.3 billion including proceeds of $0.8 billion received in relation to the initial public offering of BP Midstream Partners LP’s common units. Divestment proceeds* were $2.5 billion for the fourth quarter and $3.4 billion for the full year, compared with $0.5 billion and $2.6 billion for the same periods in 2016. In 2018, divestments are expected to be in the range of $2-3 billion.
Debt
Gross debt at 31 December 2017 was $63.2 billion compared with $58.3 billion a year ago. The ratio of gross debt to gross debt plus equity at 31 December 2017 was 38.6%, compared with 37.6% a year ago.
Net debt* at 31 December 2017 was $37.8 billion, compared with $35.5 billion a year ago. The net debt ratio* at 31 December 2017 was 27.4%, compared with 26.8% a year ago. We continue to target a net debt ratio in the range of 20-30%. Net debt and the net debt ratio are non-GAAP measures. See page 25 for more information.
Reserves replacement ratio*
The reserves replacement ratio on a combined basis of subsidiaries and equity-accounted entities was estimated at 143%(a) for the year.
(a) Includes estimated reserves data for Rosneft. The reserves replacement ratio will be finalized and reported in BP Annual Report and Form 20-F 2017.
The commentary above and following should be read in conjunction with the cautionary statement on page 37.

4

Table of contents

Analysis of underlying RC profit before interest and tax
 
 
Fourth

Fourth

 




 
 
quarter

quarter

 
Year

Year

$ million
 
2017

2016

 
2017

2016

Underlying RC profit before interest and tax*
 
 
 
 
 
 
Upstream
 
2,223

400

 
5,865

(542
)
Downstream
 
1,474

877

 
6,967

5,634

Rosneft
 
321

135

 
836

567

Other businesses and corporate
 
(394
)
(424
)
 
(1,598
)
(1,238
)
Consolidation adjustment – UPII*
 
(149
)
(132
)
 
(212
)
(196
)
Underlying RC profit before interest and tax
 
3,475

856

 
11,858

4,225

Finance costs and net finance expense relating to pensions and other
 
 
 
 
 
 
  post-retirement benefits
 
(550
)
(359
)
 
(1,801
)
(1,371
)
Taxation on an underlying RC basis
 
(782
)
(51
)
 
(3,812
)
(212
)
Non-controlling interests
 
(36
)
(46
)
 
(79
)
(57
)
Underlying RC profit attributable to BP shareholders
 
2,107

400

 
6,166

2,585


Reconciliations of underlying RC profit or loss to the nearest equivalent IFRS measure are provided on page 3 for the group and on pages 8-13 for the segments.
 
Analysis of RC profit (loss) before interest and tax and reconciliation to profit (loss) for the period
 
 
Fourth

Fourth

 




 
 
quarter

quarter

 
Year

Year

$ million
 
2017

2016

 
2017

2016

RC profit (loss) before interest and tax*
 
 
 
 
 
 
Upstream
 
1,928

692

 
5,221

574

Downstream
 
1,773

899

 
7,221

5,162

Rosneft
 
321

158

 
836

590

  Other businesses and corporate(a)
 
(2,833
)
(1,117
)
 
(4,445
)
(8,157
)
Consolidation adjustment – UPII
 
(149
)
(132
)
 
(212
)
(196
)
RC profit (loss) before interest and tax
 
1,040

500

 
8,621

(2,027
)
Finance costs and net finance expense relating to pensions and other
 
 
 
 
 
 
post-retirement benefits
 
(674
)
(484
)
 
(2,294
)
(1,865
)
Taxation on a RC basis
 
(913
)
102

 
(3,487
)
2,950

Non-controlling interests
 
(36
)
(46
)
 
(79
)
(57
)
RC profit (loss) attributable to BP shareholders
 
(583
)
72

 
2,761

(999
)
Inventory holding gains (losses)
 
816

601

 
853

1,597

Taxation (charge) credit on inventory holding gains and losses
 
(206
)
(176
)
 
(225
)
(483
)
Profit for the period attributable to BP shareholders
 
27

497

 
3,389

115

(a) 
Includes costs related to the Gulf of Mexico oil spill. See page 13 and also Note 2 from page 19 for further information on the accounting for the Gulf of Mexico oil spill.




5

Table of contents

Strategic progress

Upstream
2017 oil and gas production, excluding Rosneft, was 12% higher than in 2016, the highest since 2010. Upstream unit production costs* were 16% lower, benefiting from production growth and continued cost discipline.
Zohr in Egypt completed BP’s programme of seven major project* start-ups in 2017. Together with 2016 start-ups, the projects contribute more than 500mboe/d new net production capacity and are expected to deliver operating cash margins* around 35% greater than Upstream’s assets in 2015.
In the quarter BP accessed significant new exploration acreage in the Santos basin of Brazil and in Côte d’Ivoire with Kosmos Energy. BP announced six exploration discoveries in 2017 - the cumulative discovery of resources was BP’s largest since 2004.
Downstream
Fuels marketing earnings increased by more than 10% in 2017. Premium fuel volumes grew by 6% and BP’s convenience partnership model increased to 1,100 sites worldwide. More than 120 BP retail sites in Mexico were operational at year end. In lubricants, BP delivered premium brand growth and increased earnings from growth markets.
In manufacturing, both refining and petrochemicals grew earnings with record levels of advantaged feedstock processed in refining.
Advancing the energy transition
BP acquired a 43% interest in Lightsource, Europe’s largest solar development company, supporting its rapid expansion worldwide. Other progress included BP enhancing its biofuels business in Brazil through an ethanol storage joint venture, forming a partnership with Aria Energy to expand its renewable gas portfolio in the US and, in January, BP Ventures investing in the electric vehicle fast-charging company Freewire.
 
Financial framework

Operating cash flow* for full year 2017, after post-tax expenditure relating to the Gulf of Mexico oil spill of $5.2 billion, was $18.9 billion. This compares with $10.7 billion, after post-tax Gulf of Mexico oil spill expenditure of $6.9 billion, for full year 2016.
Organic capital expenditure* for 2017 was $16.5 billion, in the range of $15-17 billion previously indicated. BP expects 2018 organic capital expenditure to be in the range of $15-16 billion.

Total divestment and other proceeds for the year were $4.3 billion including $0.8 billion received in relation to the initial public offering of BP Midstream Partners LP’s common units. Divestment proceeds* were $3.4 billion for the full year, including the proceeds received in the fourth quarter for the sale of BP’s interest in the SECCO joint venture in China. In 2018, divestments are expected to be in the range of $2-3 billion.

Gulf of Mexico oil spill payments were $0.3 billion in the fourth quarter, bringing the total for 2017 to $5.2 billion. Cash outflows in 2018 are expected to be approximately $3 billion, weighted to the first half of the year.

Gearing* was 27.4% at the end of 2017. BP continues to target a gearing range of 20-30%.

Safety
The 3-year average for both Tier 1 process safety events* and reported recordable injury frequency* remains on an improving trend. Safety remains a core value and our number one priority. We are committed to continuous improvement to drive enhanced performance.

Operating
metrics
 
 Year 2017
 
Financial
metrics
 
 Year 2017
 
(vs. Year 2016)
 
 
(vs. Year 2016)
Tier 1 process safety events
 
18
 
Underlying RC profiti
 
$6.2bn
 
(+2)
 
 
(+$3.6bn)
Reported recordable injury frequency
 
0.22
 
Operating cash flow excluding Gulf of Mexico oil spill payments
 
(b) 
 
(+3%)
 
 
 
Group production
 
3,595mboe/d
 
Organic capital expenditureii
 
$16.5bn
 
(+10%)
 
 
(-$0.2bn)
Upstream production (excludes Rosneft segment)
 
2,466mboe/d
 
Gulf of Mexico oil spill payments
 
$5.2bn
 
(+12%)
 
 
(-$1.7bn)
Upstream unit production costs
 
$7.11/boe
 
Divestment proceeds
 
$3.4bn
 
(-16%)
 
 
(+$0.8bn)
BP-operated Upstream operating efficiency*
 
80.5%
 
Net debt ratio (gearing)iii
 
27.4%
 
 
 
 
(+0.6)
BP-operated Upstream plant reliability* (a)
 
94.7%
 
Dividend per ordinary share(c)
 
10.00 cents
 
(-0.6)
 
 
Refining availability*
 
95.3%
 
Return on average capital employed*(d)iv
 
5.8%
 
 
 
(+3.0)
(a) 
BP-operated Upstream plant reliability has been included as an operating metric this quarter. It is more comparable with the equivalent metric disclosed for the Downstream, which is ‘Refining availability’. BP-operated Upstream plant reliability was 94.9% for the first quarter 2017, 95.2% for the six months ended 30 June 2017 and 94.5% for the nine months ended 30 September 2017.
(b) 
SEC regulations do not permit inclusion of this non-GAAP metric in this SEC filing. Operating cash flow excluding Gulf of Mexico oil spill payments is calculated by excluding post-tax expenditure relating to the Gulf of Mexico oil spill from net cash provided by operating activities, as reported in the condensed group cash flow statement. For the full year, net cash provided by operating activities was $18.9 billion and post-tax Gulf of Mexico oil spill expenditure was $5.2 billion.

6

Table of contents

(c) 
Represents dividend announced in the quarter (vs. prior year quarter).
(d) 
Return on average capital employed is included as this is a full year report.


 
Nearest GAAP equivalent measures
i
Profit for the period:
$3.4bn
ii
Capital expenditure*:
$17.8bn
iii
Gross debt ratio:
38.6%
iv
Numerator: Profit attributable to BP shareholders
$3.4bn
 
Denominator: Average capital employed
$159.4bn


The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 37.

7

Table of contents

Upstream
 
 
Fourth

Fourth

 




 
 
quarter

quarter

 
Year

Year

$ million
 
2017

2016

 
2017

2016

Profit before interest and tax
 
1,928

711

 
5,229

634

Inventory holding (gains) losses*
 

(19
)
 
(8
)
(60
)
RC profit before interest and tax
 
1,928

692

 
5,221

574

Net (favourable) adverse impact of non-operating items* and fair value accounting effects*
 
295

(292
)
 
644

(1,116
)
Underlying RC profit (loss) before interest and tax*(a)
 
2,223

400

 
5,865

(542
)
(a) 
See page 9 for a reconciliation to segment RC profit before interest and tax by region.

Financial results
The replacement cost profit before interest and tax for the fourth quarter and full year was $1,928 million and $5,221 million respectively, compared with $692 million and $574 million for the same periods in 2016. The fourth quarter and full year included a net non-operating charge of $144 million and $671 million respectively, compared with a net non-operating gain of $636 million and $1,753 million for the same periods in 2016. Fair value accounting effects in the fourth quarter and full year had an adverse impact of $151 million and a favourable impact of $27 million respectively, compared with an adverse impact of $344 million and $637 million in the same periods of 2016.

After adjusting for non-operating items and fair value accounting effects, the underlying replacement cost profit before interest and tax for the fourth quarter and full year was $2,223 million and $5,865 million respectively, compared with a profit of $400 million and a loss of $542 million for the same periods in 2016. The result for the fourth quarter mainly reflected higher liquids realizations and higher production including the impact of the Abu Dhabi onshore concession renewal and major project* start-ups. The result for the full year reflected higher liquids realizations, and higher production including the impact of the Abu Dhabi onshore concession renewal and major project start-ups, partly offset by higher depreciation, depletion and amortization, and higher exploration write-offs.

Production
Production for the quarter was 2,581mboe/d, 18.1% higher than the fourth quarter of 2016. Fourth quarter production reflects the fifth consecutive quarter of growth as well as the highest production since first quarter 2011. Underlying production* for the quarter increased by 11.1%, due to the ramp-up of major projects. For the full year, production was 2,466mboe/d, 11.7% higher than 2016. Underlying production for the full year was 7.9% higher than 2016 due to major project start-ups. The seven major project start-ups for 2017, together with the 2016 start-ups, contribute more than 500mboe/d of new net production capacity.

Key events
On 21 November, BP agreed to sell a package of its interests in the Bruce assets in the North Sea to Serica Energy plc, subject to regulatory approvals. The Bruce assets comprise the Bruce, Keith and Rhum fields, platforms and associated subsea infrastructure.
On 18 December, BP completed the formation of Pan American Energy Group (PAEG) (BP 50%, Bridas Corporation 50%), which is a combination of Pan American Energy and Axion Energy.
On 20 December, BP confirmed that production started from the Zohr gas field, offshore Egypt (ENI operator 60%, Rosneft 30%, BP 10%), BP’s seventh major project to start in 2017.
Also on 20 December, BP and Statoil signed an extension agreement for the In Amenas production-sharing contract* with Algerian state-owned energy company Sonatrach, which has been submitted to the Algerian authorities for ratification.
On 21 December, BP and Kosmos Energy (KE) were awarded five blocks offshore Côte d’Ivoire, under agreements with the government of Côte d’Ivoire and state oil company Société Nationale d'Operations Pétrolières de la Côte d'Ivoire (PETROCI) (BP 45%, KE 45%, PETROCI 10%).
In December Rosneft announced an agreement to develop resources within the Kharampurskoe and Festivalnoye licence areas in Yamalo-Nenets Autonomous Okrug in northern Russia jointly with BP. Rosneft will hold a majority stake of 51% and BP will hold a 49% stake. Completion of the deal is subject to regulatory approvals.
On 31 January, BP announced the oil discovery Capercaillie (BP 100%) and the oil discovery Achmelvich (BP 52.6%, Shell 28%, and Chevron 19.4%) in the UK North Sea, both operated by BP. These two discoveries bring the total exploration discoveries in 2017 to six, and our most successful exploration campaign in the UK North Sea since 2008.
Outlook
We expect full-year 2018 underlying production to be higher than 2017 due to the ramp-up of major projects. The actual reported outcome will depend on the exact timing of project start-ups, acquisition and divestment activities, OPEC quotas and entitlement impacts in our production-sharing agreements*. We expect first-quarter 2018 reported production to be broadly flat with the fourth quarter 2017, reflecting continued growth from the 2017 major project start-ups, offset by the expiration of the Abu Dhabi offshore concession and divestment impacts.

The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 37.

8

Table of contents

Upstream (continued)
 
 
Fourth

Fourth

 




 
 
quarter

quarter

 
Year

Year

$ million
 
2017

2016

 
2017

2016

Underlying RC profit (loss) before interest and tax
 
 
 
 
 
 
US
 
629

(147
)
 
1,238

(1,270
)
Non-US
 
1,594

547

 
4,627

728

 
 
2,223

400

 
5,865

(542
)
Non-operating items
 
 
 
 
 
 
US(a)
 
(187
)
21

 
(330
)
127

Non-US(b)(c)
 
43

615

 
(341
)
1,626

 
 
(144
)
636

 
(671
)
1,753

Fair value accounting effects
 
 
 
 
 
 
US
 
8

(274
)
 
192

(379
)
Non-US
 
(159
)
(70
)
 
(165
)
(258
)
 
 
(151
)
(344
)
 
27

(637
)
RC profit (loss) before interest and tax
 
 
 
 
 
 
US
 
450

(400
)
 
1,100

(1,522
)
Non-US
 
1,478

1,092

 
4,121

2,096

 
 
1,928

692

 
5,221

574

Exploration expense
 
 
 
 
 
 
US
 
27

511

 
282

693

Non-US(c)(d)
 
494

(197
)
 
1,798

1,028

 
 
521

314

 
2,080

1,721

Of which: Exploration expenditure written off(c)(d)
 
372

166

 
1,603

1,274

Production (net of royalties)(e)
 
 
 
 
 
 
Liquids* (mb/d)
 
 
 
 
 
 
US
 
430

406

 
426

391

Europe
 
117

122

 
119

120

Rest of World
 
796

650

 
811

698

 
 
1,344

1,178

 
1,356

1,208

Of which equity-accounted entities
 
209

210

 
207

184

Natural gas (mmcf/d)
 
 
 
 
 
 
US
 
1,759

1,675

 
1,659

1,656

Europe
 
186

268

 
235

264

Rest of World
 
5,231

3,903

 
4,543

3,876

 
 
7,176

5,846

 
6,436

5,796

Of which equity-accounted entities
 
534

517

 
547

494

Total hydrocarbons* (mboe/d)
 
 
 
 
 
 
US
 
734

694

 
712

676

Europe
 
150

168

 
160

165

Rest of World
 
1,698

1,323

 
1,594

1,366

 
 
2,581

2,186

 
2,466

2,208

Of which equity-accounted entities
 
301

300

 
302

269

Average realizations*(f)
 
 
 
 
 
 
Total liquids(g) ($/bbl)
 
56.16

43.89

 
49.92

38.27

Natural gas ($/mcf)
 
3.23

3.08

 
3.19

2.84

Total hydrocarbons ($/boe)
 
37.48

31.40

 
35.38

28.24

(a) 
Fourth quarter and full year 2017 include an impairment charge relating to the US Lower 48 business, partially offset by gains associated with asset divestments.
(b) 
Fourth quarter and full year 2017 include BP's share of an impairment reversal recognized by the Angola LNG equity-accounted entity, partially offset by other items. In addition, full year 2017 includes an impairment charge arising following the announcement of the agreement to sell the Forties Pipeline System business to INEOS. Fourth quarter and full year 2016 principally relate to impairment reversals in India, Angola and the North Sea.
(c) 
See page 28 for more information on non-operating items.
(d) 
Full year 2017 includes the write-off of exploration well and lease costs in Angola and the write-off of exploration wells in Egypt.
(e) 
Includes BP’s share of production of equity-accounted entities in the Upstream segment.
(f) 
Realizations are based on sales by consolidated subsidiaries only – this excludes equity-accounted entities.
(g) 
Includes condensate, natural gas liquids and bitumen.

Because of rounding, some totals may not agree exactly with the sum of their component parts.

9

Table of contents

Downstream
 
 
Fourth

Fourth

 




 
 
quarter

quarter

 
Year

Year

$ million
 
2017

2016

 
2017

2016

Profit before interest and tax
 
2,492

1,457

 
7,979

6,646

Inventory holding (gains) losses*
 
(719
)
(558
)
 
(758
)
(1,484
)
RC profit before interest and tax
 
1,773

899

 
7,221

5,162

Net (favourable) adverse impact of non-operating items*
 
 
 
 
 
 
  and fair value accounting effects*
 
(299
)
(22
)
 
(254
)
472

Underlying RC profit before interest and tax*(a)
 
1,474

877

 
6,967

5,634

(a) 
See page 11 for a reconciliation to segment RC profit before interest and tax by region and by business.

Financial results
The replacement cost profit before interest and tax for the fourth quarter and full year was $1,773 million and $7,221 million respectively, compared with $899 million and $5,162 million for the same periods in 2016.
The fourth quarter and full year include a net non-operating gain of $382 million and $389 million respectively, compared with a net non-operating charge of $77 million and $24 million for the same periods in 2016. Fair value accounting effects had an adverse impact of $83 million in the fourth quarter and $135 million for the full year, compared with a favourable impact of $99 million and an adverse impact of $448 million for the same periods in 2016.
After adjusting for non-operating items and fair value accounting effects, the underlying replacement cost profit before interest and tax for the fourth quarter and full year was $1,474 million and $6,967 million respectively, compared with $877 million and $5,634 million for the same periods in 2016.
Replacement cost profit before interest and tax for the fuels, lubricants and petrochemicals businesses is set out on page 11.
Fuels
The fuels business reported an underlying replacement cost profit before interest and tax of $976 million for the fourth quarter and $4,872 million for the full year, compared with $417 million and $3,727 million for the same periods in 2016. The result for the quarter and full year reflects stronger refining performance. In addition, the full-year improvement reflects growth in fuels marketing, partly offset by a weaker contribution from supply and trading.
The refining result for the quarter and full year reflects continued strong operational performance, capturing higher industry refining margins, efficiency benefits as well as increased commercial optimization including the benefits of higher levels of advantaged feedstock. The full year result was, however, impacted by a higher level of planned turnaround activity.
The fuels marketing result for the full year reflects continued profit growth supported by higher premium fuel volumes which grew by 6% and the continued rollout of our convenience partnership model to more than 220 sites, bringing the total number of convenience partnership sites to 1,100 across our retail network.
We continue to grow in Mexico, where, by the end of 2017 we had more than 120 operational sites after becoming the first international oil company to enter the deregulated fuel retail market earlier in the year.
In December, the Australian Competition and Consumer Commission announced that it intends to oppose our proposed acquisition of Woolworths’ fuel and convenience sites in Australia. We are currently considering our next steps.
On 1 February 2018, we entered into joint ventures with Shandong Dongming Petrochemical Group to develop a leading branded retail fuels and convenience business in Shandong, Henan and Hebei provinces in China.

Lubricants
The lubricants business reported an underlying replacement cost profit before interest and tax of $375 million for the fourth quarter and $1,479 million for the full year, compared with $357 million and $1,523 million for the same periods in 2016. The result for the quarter and full year reflects growth in premium brands and growth markets, offset by the adverse lag impact of increasing base oil prices.

Petrochemicals
The petrochemicals business reported an underlying replacement cost profit before interest and tax of $123 million for the fourth quarter and $616 million for the full year, compared with $103 million and $384 million for the same periods in 2016. The result for the quarter and full year reflects an improved margin environment, stronger margin optimization, the benefits from our efficiency programmes and a lower level of turnaround activity. The result was, however, impacted by the divestment of our interest in the SECCO joint venture, which completed in the fourth quarter and was classified as held for sale in the group balance sheet at 30 September 2017.

Outlook
Looking to the first quarter of 2018, we expect higher discounts for North American heavy crude oil but lower industry refining margins. In addition, we expect our turnaround activity to be lower in refining but significantly higher in petrochemicals.

The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 37.


10

Table of contents

Downstream (continued)
 
 
Fourth

Fourth

 




 
 
quarter

quarter

 
Year

Year

$ million
 
2017

2016

 
2017

2016

Underlying RC profit before interest and tax - by region
 
 
 
 
 
 
US
 
501

(371
)
 
1,978

853

Non-US
 
973

1,248

 
4,989

4,781

 
 
1,474

877

 
6,967

5,634

Non-operating items
 
 
 
 
 
 
US
 
(25
)
(122
)
 
(48
)
(48
)
Non-US(a)
 
407

45

 
437

24

 
 
382

(77
)
 
389

(24
)
Fair value accounting effects
 
 
 
 
 
 
US
 
3

22

 
(29
)
(321
)
Non-US
 
(86
)
77

 
(106
)
(127
)
 
 
(83
)
99

 
(135
)
(448
)
RC profit before interest and tax
 
 
 
 
 
 
US
 
479

(471
)
 
1,901

484

Non-US
 
1,294

1,370

 
5,320

4,678

 
 
1,773

899

 
7,221

5,162

 
 
 
 
 
 
 
Underlying RC profit before interest and tax - by business(b)(c)
 
 
 
 
 
 
Fuels
 
976

417

 
4,872

3,727

Lubricants
 
375

357

 
1,479

1,523

Petrochemicals
 
123

103

 
616

384

 
 
1,474

877

 
6,967

5,634

Non-operating items and fair value accounting effects(d)
 
 
 
 
 
 
Fuels
 
(202
)
103

 
(193
)
(390
)
Lubricants
 
(14
)
(81
)
 
(22
)
(84
)
Petrochemicals(a)
 
515


 
469

2

 
 
299

22

 
254

(472
)
RC profit before interest and tax(b)(c)
 
 
 
 
 
 
Fuels
 
774

520

 
4,679

3,337

Lubricants
 
361

276

 
1,457

1,439

Petrochemicals
 
638

103

 
1,085

386

 
 
1,773

899

 
7,221

5,162

 
 
 
 
 
 
 
BP average refining marker margin (RMM)* ($/bbl)
 
14.4

11.4

 
14.1

11.8

Refinery throughputs (mb/d)
 
 
 
 
 
 
US
 
714

604

 
713

646

Europe
 
741

806

 
773

803

Rest of World
 
243

234

 
216

236

 
 
1,698

1,644

 
1,702

1,685

Refining availability* (%)
 
96.1

94.9

 
95.3

95.3

 
 
 
 
 
 
 
Marketing sales of refined products (mb/d)
 
 
 
 
 
 
US
 
1,127

1,146

 
1,151

1,134

Europe
 
1,132

1,166

 
1,140

1,179

Rest of World
 
542

540

 
508

512

 
 
2,801

2,852

 
2,799

2,825

Trading/supply sales of refined products
 
3,549

2,836

 
3,149

2,775

Total sales volumes of refined products
 
6,350

5,688

 
5,948

5,600

 
 
 
 
 
 
 
Petrochemicals production (kte)
 
 
 
 
 
 
US
 
641

546

 
2,428

2,564

Europe
 
1,559

930

 
5,462

3,729

Rest of World
 
1,306

2,071

 
7,405

7,934

 
 
3,506

3,547

 
15,295

14,227

(a) 
Fourth quarter and full year 2017 gain primarily reflects the disposal of our shareholding in the SECCO joint venture.
(b) 
Segment-level overhead expenses are included in the fuels business result.
(c) 
Results from petrochemicals at our Gelsenkirchen and Mülheim sites in Germany is reported in the fuels business.
(d) 
For Downstream, fair value accounting effects arise solely in the fuels business.


11

Table of contents

Rosneft
 
 
Fourth

Fourth

 




 
 
quarter

quarter

 
Year

Year

$ million
 
2017(a)

2016

 
2017(a)

2016

Profit before interest and tax(b)
 
418

182

 
923

643

Inventory holding (gains) losses*
 
(97
)
(24
)
 
(87
)
(53
)
RC profit before interest and tax
 
321

158

 
836

590

Net charge (credit) for non-operating items*
 

(23
)
 

(23
)
Underlying RC profit before interest and tax*
 
321

135

 
836

567


Financial results
Replacement cost profit before interest and tax for the fourth quarter and full year was $321 million and $836 million respectively, compared with $158 million and $590 million for the same periods in 2016.
There were no non-operating items in the fourth quarter and full year of 2017, compared with a non-operating gain of $23 million in the same periods of 2016.
After adjusting for non-operating items, the underlying replacement cost profit before interest and tax for the fourth quarter and full year was $321 million and $836 million respectively, compared with $135 million and $567 million for the same periods in 2016.
Compared with the same periods in 2016, the results primarily reflected higher oil prices. The results for the fourth quarter and the full year also benefited from a $163-million gain representing the BP share of a voluntary out-of-court settlement between Sistema, Sistema-Invest and the Rosneft subsidiary, Bashneft. These positive effects were partially offset by adverse foreign exchange effects.
In September 2017 the extraordinary general meeting adopted a resolution to pay interim dividends for the first half of 2017 of 3.83 Russian roubles per ordinary share. In October BP received a dividend of $124 million after the deduction of withholding tax.
Key events
In October Rosneft completed the acquisition of a 30% stake for $1.1 billion in a concession agreement to develop the Zohr field in Egypt from the Italian company Eni. Eni retains a 60% stake and BP holds the remaining 10%.
In December Rosneft announced an agreement to develop subsoil resources within the Kharampurskoe and Festivalnoye licence areas in Yamalo-Nenets Autonomous Okrug in northern Russia jointly with BP. Rosneft will hold a majority stake of 51% and BP will hold a 49% stake. Completion of the deal is subject to regulatory approvals.

 
 
Fourth

Fourth

 




 
 
quarter

quarter

 
Year

Year

 
 
2017(a)

2016

 
2017(a)

2016

Production (net of royalties) (BP share)
 
 
 
 
 
 
Liquids* (mb/d)
 
899

919

 
904

840

Natural gas (mmcf/d)
 
1,333

1,347

 
1,308

1,279

Total hydrocarbons* (mboe/d)
 
1,129

1,152

 
1,129

1,060

(a) 
The operational and financial information of the Rosneft segment for the fourth quarter and full year is based on preliminary operational and financial results of Rosneft for the full year ended 31 December 2017. Actual results may differ from these amounts.
(b) 
The Rosneft segment result includes equity-accounted earnings arising from BP’s 19.75% shareholding in Rosneft as adjusted for the accounting required under IFRS relating to BP’s purchase of its interest in Rosneft and the amortization of the deferred gain relating to the divestment of BP’s interest in TNK-BP. These adjustments have increased the reported profit before interest and tax for the fourth quarter and full year 2017, as shown in the table above, compared with the equivalent amount in Russian roubles that we expect Rosneft to report in its own financial statements under IFRS. BP’s share of Rosneft’s profit before interest and tax for each year-to-date period is calculated by translating the amounts reported in Russian roubles into US dollars using the average exchange rate for the year to date. BP's share of Rosneft’s earnings after finance costs, taxation and non-controlling interests, as adjusted, is included in the BP group income statement within profit before interest and taxation.


12

Table of contents

Other businesses and corporate
 
 
Fourth

Fourth

 




 
 
quarter

quarter

 
Year

Year

$ million
 
2017

2016

 
2017

2016

Profit (loss) before interest and tax
 
 
 
 
 
 
Gulf of Mexico oil spill
 
(2,221
)
(674
)
 
(2,687
)
(6,640
)
Other
 
(612
)
(443
)
 
(1,758
)
(1,517
)
Profit (loss) before interest and tax
 
(2,833
)
(1,117
)
 
(4,445
)
(8,157
)
Inventory holding (gains) losses*
 


 


RC profit (loss) before interest and tax
 
(2,833
)
(1,117
)
 
(4,445
)
(8,157
)
Net charge (credit) for non-operating items*
 
 
 
 
 
 
Gulf of Mexico oil spill
 
2,221

674

 
2,687

6,640

Other
 
218

19

 
160

279

Net charge (credit) for non-operating items
 
2,439

693

 
2,847

6,919

Underlying RC profit (loss) before interest and tax*
 
(394
)
(424
)
 
(1,598
)
(1,238
)
Underlying RC profit (loss) before interest and tax
 
 
 
 
 
 
US
 
(29
)
50

 
(475
)
(276
)
Non-US
 
(365
)
(474
)
 
(1,123
)
(962
)
 
 
(394
)
(424
)
 
(1,598
)
(1,238
)
Non-operating items
 
 
 
 
 
 
US
 
(2,381
)
(672
)
 
(2,861
)
(6,824
)
Non-US
 
(58
)
(21
)
 
14

(95
)
 
 
(2,439
)
(693
)
 
(2,847
)
(6,919
)
RC profit (loss) before interest and tax
 
 
 
 
 
 
US
 
(2,410
)
(622
)
 
(3,336
)
(7,100
)
Non-US
 
(423
)
(495
)
 
(1,109
)
(1,057
)
 
 
(2,833
)
(1,117
)
 
(4,445
)
(8,157
)

Other businesses and corporate comprises our alternative energy business, shipping, treasury, corporate activities including centralized functions, and the costs of the Gulf of Mexico oil spill.
Financial results
The replacement cost loss before interest and tax for the fourth quarter and full year was $2,833 million and $4,445 million respectively, compared with $1,117 million and $8,157 million for the same periods in 2016.
The results included a net non-operating charge of $2,439 million for the fourth quarter and $2,847 million for the full year, mainly relating to the Gulf of Mexico oil spill, compared with a net non-operating charge of $693 million and $6,919 million for the same periods in 2016. See Note 2 on page 19 for more information on the Gulf of Mexico oil spill.
After adjusting for non-operating items, the underlying replacement cost loss before interest and tax for the fourth quarter and full year was $394 million and $1,598 million respectively, compared with $424 million and $1,238 million for the same periods in 2016. The underlying charge for the full year was impacted by weaker business results, higher corporate costs and adverse foreign exchange effects which had a favourable effect in 2016.
Alternative energy
The net ethanol-equivalent production (which includes ethanol and sugar) for the fourth quarter and full year was 188 million litres and 776 million litres respectively, compared with 98 million litres and 733 million litres for the same periods in 2016.
Net wind generation capacity*(a) was 1,432MW at 31 December 2017 compared with 1,474MW at 31 December 2016. BP’s net share of wind generation for the fourth quarter and full year was 1,148GWh and 4,004GWh respectively, compared with 1,154GWh and 4,389GWh for the same periods in 2016.
(a) 
Capacity figures for 2016 include 23MW in the Netherlands managed by our Downstream segment.

BP formed a strategic partnership with Lightsource, Europe's largest developer of large-scale solar projects, with the aim of driving further growth of solar power development worldwide. Under the terms of the deal, which completed on 31 January 2018, BP acquired a 43% equity share in Lightsource for a total consideration of $200 million, payable over three years. The move will combine BP’s global scale, technology and trading capabilities with Lightsource’s expertise in solar development. The company will rebrand as Lightsource BP.

Outlook
In 2018, Other businesses and corporate average quarterly charges, excluding non-operating items, are expected to be around $350 million although this will fluctuate from quarter to quarter.
The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 37.


13

Table of contents

Financial statements
Group income statement
 
 
Fourth

Fourth

 




 
 
quarter

quarter

 
Year

Year

$ million
 
2017

2016

 
2017

2016

 
 
 
 
 
 
 
Sales and other operating revenues (Note 4)
 
67,816

51,007

 
240,208

183,008

Earnings from joint ventures - after interest and tax
 
581

489

 
1,177

966

Earnings from associates - after interest and tax
 
526

263

 
1,330

994

Interest and other income
 
223

114

 
657

506

Gains on sale of businesses and fixed assets
 
876

248

 
1,210

1,132

Total revenues and other income
 
70,022

52,121

 
244,582

186,606

Purchases(a)
 
51,745

37,883

 
179,716

132,219

Production and manufacturing expenses(b)
 
7,759

6,595

 
24,229

29,077

Production and similar taxes (Note 5)(a)
 
511

199

 
1,775

683

Depreciation, depletion and amortization (Note 4)
 
4,045

3,642

 
15,584

14,505

Impairment and losses on sale of businesses and fixed assets
 
604

(305
)
 
1,216

(1,664
)
Exploration expense
 
521

314

 
2,080

1,721

Distribution and administration expenses
 
2,981

2,692

 
10,508

10,495

Profit (loss) before interest and taxation
 
1,856

1,101

 
9,474

(430
)
Finance costs(b)
 
616

434

 
2,074

1,675

Net finance expense relating to pensions and other post retirement benefits
 
58

50

 
220

190

Profit (loss) before taxation
 
1,182

617

 
7,180

(2,295
)
Taxation(b)
 
1,119

74

 
3,712

(2,467
)
Profit (loss) for the period
 
63

543

 
3,468

172

Attributable to
 
 
 
 
 
 
  BP shareholders
 
27

497

 
3,389

115

  Non-controlling interests
 
36

46

 
79

57

 
 
63

543

 
3,468

172

 
 
 
 
 
 
 
Earnings per share (Note 6)
 
 
 
 
 
 
Profit (loss) for the period attributable to BP shareholders
 
 
 
 
 
 
  Per ordinary share (cents)
 
 
 
 
 
 
    Basic
 
0.14

2.62

 
17.20

0.61

    Diluted
 
0.14

2.60

 
17.10

0.60

  Per ADS (dollars)
 
 
 
 
 
 
    Basic
 
0.01

0.16

 
1.03

0.04

    Diluted
 
0.01

0.16

 
1.03

0.04

(a) 
Amounts reported in prior quarters of 2017 for Purchases and Production and similar taxes have been amended, with no effect on profit for the period. See Note 5 for further information.
(b) 
See Note 2 for information on the impact of the Gulf of Mexico oil spill on these income statement line items.


14

Table of contents

Group statement of comprehensive income
 
 
Fourth

Fourth

 




 
 
quarter

quarter

 
Year

Year

$ million
 
2017

2016

 
2017

2016

 
 
 
 
 
 
 
Profit (loss) for the period
 
63

543

 
3,468

172

Other comprehensive income
 
 
 
 
 
 
Items that may be reclassified subsequently to profit or loss
 
 
 
 
 
 
  Currency translation differences
 
264

(777
)
 
1,986

254

  Exchange (gains) losses on translation of foreign operations reclassified to gain
 
 
 
 
 
 
     or loss on sale of businesses and fixed assets
 
(138
)
24

 
(120
)
30

  Available-for-sale investments
 
11


 
14

1

  Cash flow hedges marked to market
 
19

(204
)
 
197

(639
)
  Cash flow hedges reclassified to the income statement
 
23

86

 
116

196

  Cash flow hedges reclassified to the balance sheet
 
8

32

 
112

81

  Share of items relating to equity-accounted entities, net of tax
 
133

172

 
564

833

  Income tax relating to items that may be reclassified
 
(81
)
97

 
(261
)
13

 
 
239

(570
)
 
2,608

769

Items that will not be reclassified to profit or loss
 
 
 
 
 
 
  Remeasurements of the net pension and other post-retirement
 
 
 
 
 
 
    benefit liability or asset
 
1,599

3,484

 
3,646

(2,496
)
  Income tax relating to items that will not be reclassified
 
(539
)
(765
)
 
(1,238
)
739

 
 
1,060

2,719

 
2,408

(1,757
)
Other comprehensive income
 
1,299

2,149

 
5,016

(988
)
Total comprehensive income
 
1,362

2,692

 
8,484

(816
)
Attributable to
 
 
 
 
 
 
  BP shareholders
 
1,312

2,667

 
8,353

(846
)
  Non-controlling interests
 
50

25

 
131

30

 
 
1,362

2,692

 
8,484

(816
)

15

Table of contents

Group statement of changes in equity
 
 
BP shareholders’

Non-controlling

Total

$ million
 
equity

interests

equity

 
 
 
 
 
At 1 January 2017
 
95,286

1,557

96,843

 
 
 
 
 
Total comprehensive income
 
8,353

131

8,484

Dividends
 
(6,153
)
(141
)
(6,294
)
Repurchase of ordinary share capital
 
(343
)

(343
)
Share-based payments, net of tax
 
687


687

Share of equity-accounted entities’ changes in equity, net of tax
 
215


215

Transactions involving non-controlling interests, net of tax
 
446

366

812

At 31 December 2017
 
98,491

1,913

100,404

 
 
 
 
 
 
 
BP shareholders’

Non-controlling

Total

$ million
 
equity

interests

equity

 
 
 
 
 
At 1 January 2016
 
97,216

1,171

98,387

 
 
 
 
 
Total comprehensive income
 
(846
)
30

(816
)
Dividends
 
(4,611
)
(107
)
(4,718
)
Share-based payments, net of tax
 
2,991


2,991

Share of equity-accounted entities' changes in equity, net of tax
 
106


106

Transactions involving non-controlling interests, net of tax
 
430

463

893

At 31 December 2016
 
95,286

1,557

96,843


16

Table of contents

Group balance sheet
 
 
31 December

31 December

$ million
 
2017

2016

Non-current assets
 
 
 
Property, plant and equipment
 
129,471

129,757

Goodwill
 
11,551

11,194

Intangible assets
 
18,355

18,183

Investments in joint ventures
 
7,994

8,609

Investments in associates
 
16,991

14,092

Other investments
 
1,245

1,033

Fixed assets
 
185,607

182,868

Loans
 
646

532

Trade and other receivables
 
1,434

1,474

Derivative financial instruments
 
4,110

4,359

Prepayments
 
1,112

945

Deferred tax assets
 
4,469

4,741

Defined benefit pension plan surpluses
 
4,169

584

 
 
201,547

195,503

Current assets
 
 
 
Loans
 
190

259

Inventories
 
19,011

17,655

Trade and other receivables
 
24,849

20,675

Derivative financial instruments
 
3,032

3,016

Prepayments
 
1,414

1,486

Current tax receivable
 
761

1,194

Other investments
 
125

44

Cash and cash equivalents
 
25,586

23,484

 
 
74,968

67,813

Total assets
 
276,515

263,316

Current liabilities
 
 
 
Trade and other payables
 
44,209

37,915

Derivative financial instruments
 
2,808

2,991

Accruals
 
4,960

5,136

Finance debt
 
7,739

6,634

Current tax payable
 
1,686

1,666

Provisions
 
3,324

4,012

 
 
64,726

58,354

Non-current liabilities
 
 
 
Other payables
 
13,889

13,946

Derivative financial instruments
 
3,761

5,513

Accruals
 
505

469

Finance debt
 
55,491

51,666

Deferred tax liabilities
 
7,982

7,238

Provisions
 
20,620

20,412

Defined benefit pension plan and other post-retirement benefit plan deficits
 
9,137

8,875

 
 
111,385

108,119

Total liabilities
 
176,111

166,473

Net assets
 
100,404

96,843

Equity
 
 
 
BP shareholders’ equity
 
98,491

95,286

Non-controlling interests
 
1,913

1,557

Total equity
 
100,404

96,843



17

Table of contents

Condensed group cash flow statement
 
 
Fourth

Fourth

 




 
 
quarter

quarter

 
Year

Year

$ million
 
2017

2016

 
2017

2016

Operating activities
 
 
 
 
 
 
Profit (loss) before taxation
 
1,182

617

 
7,180

(2,295
)
Adjustments to reconcile profit (loss) before taxation to net cash
 
 
 
 
 
 
  provided by operating activities
 
 
 
 
 
 
  Depreciation, depletion and amortization and exploration expenditure
 
 
 
 
 
 
    written off
 
4,417

3,808

 
17,187

15,779

  Impairment and (gain) loss on sale of businesses and fixed assets
 
(272
)
(553
)
 
6

(2,796
)
  Earnings from equity-accounted entities, less dividends received
 
(820
)
(605
)
 
(1,254
)
(855
)
  Net charge for interest and other finance expense, less net interest paid
 
294

310

 
793

795

  Share-based payments
 
166

150

 
661

779

  Net operating charge for pensions and other post-retirement benefits, less
 
 
 
 
 
 
    contributions and benefit payments for unfunded plans
 
(215
)
(347
)
 
(394
)
(467
)
  Net charge for provisions, less payments
 
2,244

(629
)
 
2,106

4,487

  Movements in inventories and other current and non-current assets and
 
 
 
 
 
 
    liabilities
 
(60
)
393

 
(3,352
)
(3,198
)
  Income taxes paid
 
(1,033
)
(716
)
 
(4,002
)
(1,538
)
Net cash provided by operating activities
 
5,903

2,428

 
18,931

10,691

Investing activities
 
 
 
 
 
 
Expenditure on property, plant and equipment, intangible and other assets