Blueprint
 
 
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 30 October 2018
 
 
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|
--------------- --------------
 
 
 
 
 
 
 
FOR IMMEDIATE RELEASE
 
 
London 30 October 2018
 
 
 
BP p.l.c. Group results
Third quarter and nine months 2018
 
 
 
 
For a printer friendly copy of this announcement, please click on the link below to open a PDF version:
 
http://www.rns-pdf.londonstockexchange.com/rns/5929F_1-2018-10-29.pdf
 
 
 
 
 
Top of page 1
 
Highlights
 
Strong earnings driven by high reliability and major project delivery
 
 
 
Strong earnings and cash flow:
-
Underlying replacement cost profit for the third quarter of 2018 was $3.8 billion, more than double a year earlier and the highest quarterly result in more than five years, including significant earnings growth from the Upstream and Rosneft.
 
-
Operating cash flow excluding Gulf of Mexico oil spill payments for the quarter was $6.6 billion, including a $0.7 billion working capital build (after adjusting for inventory holding gains).
 
-
Gulf of Mexico oil spill payments in the quarter were $0.5 billion on a post-tax basis.
 
-
Dividend of 10.25 cents a share for the third quarter, 2.5% higher than a year earlier.
 
 
Strong operating performance:
-
Very good reliability, with the highest quarterly refining availability for 15 years and BP-operated Upstream plant reliability of 95%.
 
-
Reported oil and gas production was 3.6 million barrels of oil equivalent a day. Upstream underlying production, which excludes Rosneft and is adjusted for portfolio changes and pricing effects, was 6.8% higher than a year earlier, driven by ramp-up of new projects. Rosneft production of 1.2 million barrels of oil equivalent a day was 2.8% higher than last year.
 
 
Strategic delivery:
-
The Thunder Horse Northwest expansion project in the Gulf of Mexico and the Western Flank B project in Australia began production in October, both ahead of schedule. They are BP’s fourth and fifth Upstream major projects to start up in 2018.
 
-
Further expansion in fuels marketing, with now around 1,300 convenience partnership sites worldwide and network growth in Mexico.
 
 
BHP transaction:
-
The acquisition from BHP is expected to complete on 31 October.
 
-
Reflecting confidence in cash generation and continued capital discipline, and assuming oil prices remain firm in the recent trading range, BP now expects to fund the entire transaction from available cash, rather than using equity for the deferred consideration. In this case, proceeds from the associated $5-6 billion of divestments will be used to reduce net debt.
 
 
See chart on PDF
 
Bob Dudley – Group chief executive:
 
Our focus on safe and reliable operations and delivering our strategy is driving strong earnings and growing cash flow. Operations are running well across BP and we’re bringing new, higher-margin barrels into production faster through efficient project execution. We have made very good progress with our acquisition from BHP and expect to complete the transaction tomorrow. This will transform our position in the US Lower 48 and we expect it to create significant value for BP. This progress all underpins our commitment to growing distributions for our shareholders.
 
 
Financial summary
 
 
Third
 
Second
 
Third
 
 
Nine
 
Nine
 
 
 
quarter
 
quarter
 
quarter
 
 
months
 
months
 
$ million
 
 
2018
 
2018
 
2017
 
 
2018
 
2017
 
Profit for the period(a)
 
 
3,349
 
 
2,799
 
 
1,769
 
 
 
8,617
 
 
3,362
 
 
Inventory holding (gains) losses, net of tax
 
 
(258
 
)
 
(1,010
 
)
 
(390
 
)
 
 
(1,348
 
)
 
(18
 
)
 
RC profit
 
 
3,091
 
 
1,789
 
 
1,379
 
 
 
7,269
 
 
3,344
 
 
Net (favourable) adverse impact of non-operating items and fair value accounting effects, net of tax
 
 
747
 
 
1,033
 
 
486
 
 
 
1,977
 
 
715
 
 
Underlying RC profit
 
 
3,838
 
 
2,822
 
 
1,865
 
 
 
9,246
 
 
4,059
 
 
RC profit per ordinary share (cents)
 
 
15.45
 
 
8.96
 
 
6.98
 
 
 
36.42
 
 
17.01
 
 
RC profit per ADS (dollars)
 
 
0.93
 
 
0.54
 
 
0.42
 
 
 
2.19
 
 
1.02
 
 
Underlying RC profit per ordinary share (cents)
 
 
19.18
 
 
14.14
 
 
9.44
 
 
 
46.32
 
 
20.65
 
 
Underlying RC profit per ADS (dollars)
 
 
1.15
 
 
0.85
 
 
0.57
 
 
 
2.78
 
 
1.24
 
 
 
(a)
Profit attributable to BP shareholders.
RC profit (loss), underlying RC profit, operating cash flow excluding Gulf of Mexico oil spill payments and working capital are non-GAAP measures. These measures and Upstream plant reliability, refining availability, major projects, inventory holding gains and losses, non-operating items, fair value accounting effects and underlying production are defined in the Glossary on page 31.
 
The commentary above and following should be read in conjunction with the cautionary statement on page 35.
 
 
Top of page 2
 
Group headlines
 
Results
For the nine months, underlying replacement cost (RC) profit* was $9,246 million, compared with $4,059 million in 2017. Underlying RC profit is after adjusting RC profit* for a net charge for non-operating items* of $1,619 million and net adverse fair value accounting effects* of $358 million (both on a post-tax basis). RC profit was $7,269 million for the nine months, compared with $3,344 million a year ago.
For the third quarter, underlying RC profit was $3,838 million, compared with $1,865 million in 2017. Underlying RC profit is after adjusting
RC profit for a net charge for non-operating items of $649 million and net adverse fair value accounting effects of $98 million (both on a post-tax basis). RC profit was $3,091 million for the third quarter, compared with $1,379 million in 2017.
BP’s profit for the third quarter and nine months was $3,349 million and $8,617 million respectively, compared with $1,769 million and $3,362 million for the same periods in 2017.
See further information on pages 3, 27 and 28.
 
Non-operating items
Non-operating items amounted to a post-tax charge of $649 million for the quarter and $1,619 million for the nine months. The charge for the quarter includes post-tax amounts relating to the Gulf of Mexico oil spill of $54 million for business economic loss claims and $30 million for other claims and litigation relating to the spill, as well as finance costs in respect of the unwinding of discounting effects relating to oil spill payables. See further information on page 27.
 
Effective tax rate
The effective tax rate (ETR) on RC profit or loss* for the third quarter and nine months was 38% and 41% respectively, compared with 43% for both periods in 2017. Adjusting for non-operating items and fair value accounting effects, the underlying ETR* for the third quarter and nine months was 36% and 38% respectively, compared with 40% and 42% for the same periods in 2017. The lower underlying ETR for the third quarter reflected lower adjustments in respect of prior years and re-evaluation of deferred tax positions, partly offset by deferred tax charges due to foreign exchange impacts. The lower underlying ETR for the nine months reflected lower exploration write-offs, partly offset by deferred tax charges due to foreign exchange impacts. In the current environment we now expect the underlying ETR for 2018 to be lower than 40%. ETR on RC profit or loss and underlying ETR are non-GAAP measures.
 
Dividend
BP today announced a quarterly dividend of 10.25 cents per ordinary share ($0.615 per ADS), which is expected to be paid on 21 December 2018. The corresponding amount in sterling will be announced on 10 December 2018. See page 24 for further information.
 
 
 
 
Share buybacks
BP repurchased 19 million ordinary shares at a cost of $139 million, including fees and stamp duty, during the third quarter of 2018. For the nine months, BP repurchased 48 million ordinary shares at a cost of $339 million, including fees and stamp duty.
 
Operating cash flow*
Excluding post-tax amounts related to the Gulf of Mexico oil spill, operating cash flow* for the third quarter was $6.6 billion, including a $0.7 billion working capital* build (after adjusting for inventory holding gains*) and $19.0 billion in the nine months, including a $1.1 billion working capital build (after adjusting for inventory holding gains), compared with $6.6 billion and $17.9 billion for the same periods in 2017. Including amounts relating to the Gulf of Mexico oil spill, operating cash flow for the third quarter and nine months was $6.1 billion and $16.0 billion respectively (after a $1.6 billion working capital build for the quarter and $5.5 billion for the nine months), compared with $6.0 billion and $13.0 billion for the same periods in 2017. See also the Glossary on page 31 for further information on working capital.
 
Capital expenditure*
Organic capital expenditure* for the third quarter and nine months was $3.7 billion and $10.7 billion respectively, compared with $4.0 billion and $11.9 billion for the same periods in 2017.
Inorganic capital expenditure* for the third quarter and nine months was $0.7 billion and $1.5 billion respectively, compared with $0.5 billion and $1.1 billion for the same periods in 2017.
Organic capital expenditure and inorganic capital expenditure are non-GAAP measures. See page 26 for further information.
 
Divestment and other proceeds
Divestment proceeds* were $0.1 billion for the third quarter and $0.4 billion for the nine months, compared with $0.2 billion and $1.0 billion for the same periods in 2017.
 
Gearing*
Net debt* at 30 September 2018 was $39.2 billion, compared with $39.8 billion a year ago. Gearing at 30 September 2018 was 27.5%, compared with 28.4% a year ago.
We expect gearing to remain within the target band of 20-30% during the fourth quarter of 2018. As described above, assuming oil prices remain firm, we expect to fund the deferred consideration related to the BHP transaction with available cash rather than issuing equity. As a result, gearing may move temporarily above the top end of the band in early 2019, but is expected to move back down towards the middle of the band by the end of 2019, in line with the generation of free cash flow and receipt of disposal proceeds.
Net debt and gearing are non-GAAP measures. See page 24 for more information.
 
 
 
 
Brian Gilvary – Chief financial officer:
 
This quarter’s underlying result was significantly higher than the second quarter in a very similar price environment. Since we announced the BHP transaction, oil prices have firmed to levels significantly above the acquisition assumptions. While oil prices remain at these levels, we expect to finance the transaction fully using cash. In this event, the $5-6 billion divestment programme linked to the transaction will be used to reduce debt. We will also continue our share buyback programme to offset dilution from the scrip dividend.
 
 
 
* For items marked with an asterisk throughout this document, definitions are provided in the Glossary on page 31.
 
The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 35.
 
 
 
Top of page 3
Analysis of underlying RC profit* before interest and tax
 
 
 
Third    
 
Second    
 
Third    
 
 
Nine    
 
Nine
 
 
 
quarter    
 
quarter    
 
quarter    
 
 
months    
 
months
 
$ million
 
 
2018    
 
2018   
 
2017    
 
 
2018    
 
2017
 
Underlying RC profit before interest and tax
 
 
 
 
 
 
 
 
Upstream
 
 
3,999
 
 
3,508
 
 
1,562
 
 
 
10,664
 
 
3,642
 
 
Downstream
 
 
2,111
 
 
1,455
 
 
2,338
 
 
 
5,392
 
 
5,493
 
 
Rosneft
 
 
872
 
 
766
 
 
137
 
 
 
1,885
 
 
515
 
 
Other businesses and corporate
 
 
(345
 
)
 
(477
 
)
 
(398
 
)
 
 
(1,214
 
)
 
(1,204
 
)
 
Consolidation adjustment – UPII*
 
 
78
 
 
151
 
 
(130
 
)
 
 
69
 
 
(63
 
)
 
Underlying RC profit before interest and tax
 
 
6,715
 
 
5,403
 
 
3,509
 
 
 
16,796
 
 
8,383
 
 
Finance costs and net finance expense relating to pensions and other post-retirement benefits
 
 
(610
 
)
 
(448
 
)
 
(444
 
)
 
 
(1,522
 
)
 
(1,251
 
)
 
Taxation on an underlying RC basis
 
 
(2,213
 
)
 
(2,059
 
)
 
(1,212
 
)
 
 
(5,838
 
)
 
(3,030
 
)
 
Non-controlling interests
 
 
(54
 
)
 
(74
 
)
 
12
 
 
 
(190
 
)
 
(43
 
)
 
Underlying RC profit attributable to BP shareholders
 
 
3,838
 
 
2,822
 
 
1,865
 
 
 
9,246
 
 
4,059
 
 
 
 
Reconciliations of underlying RC profit or loss to the nearest equivalent IFRS measure are provided on page 1 for the group and on pages 6-11 for the segments.
 
 
 
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
 
 
2018    
 
2018    
 
2017    
 
 
2018    
 
2017
 
RC profit (loss) before interest and tax
 
 
 
 
 
 
 
 
Upstream
 
 
3,472
 
 
3,514
 
 
1,242
 
 
 
10,160
 
 
3,293
 
 
Downstream
 
 
2,249
 
 
840
 
 
2,175
 
 
 
4,802
 
 
5,448
 
 
Rosneft
 
 
808
 
 
766
 
 
137
 
 
 
1,821
 
 
515
 
 
Other businesses and corporate(a)
 
 
(815
 
)
 
(1,025
 
)
 
(460
 
)
 
 
(2,411
 
)
 
(1,612
 
)
 
Consolidation adjustment – UPII
 
 
78
 
 
151
 
 
(130
 
)
 
 
69
 
 
(63
 
)
 
RC profit (loss) before interest and tax
 
 
5,792
 
 
4,246
 
 
2,964
 
 
 
14,441
 
 
7,581
 
 
Finance costs and net finance expense relating to pensions and other post-retirement benefits
 
 
(729
 
)
 
(566
 
)
 
(566
 
)
 
 
(1,879
 
)
 
(1,620
 
)
 
Taxation on a RC basis
 
 
(1,918
 
)
 
(1,817
 
)
 
(1,031
 
)
 
 
(5,103
 
)
 
(2,574
 
)
 
Non-controlling interests
 
 
(54
 
)
 
(74
 
)
 
12
 
 
 
(190
 
)
 
(43
 
)
 
RC profit (loss) attributable to BP shareholders
 
 
3,091
 
 
1,789
 
 
1,379
 
 
 
7,269
 
 
3,344
 
 
Inventory holding gains (losses)*
 
 
371
 
 
1,310
 
 
557
 
 
 
1,773
 
 
37
 
 
Taxation (charge) credit on inventory holding gains and losses
 
 
(113
 
)
 
(300
 
)
 
(167
 
)
 
 
(425
 
)
 
(19
 
)
 
Profit (loss) for the period attributable to BP shareholders
 
 
3,349
 
 
2,799
 
 
1,769
 
 
 
8,617
 
 
3,362
 
 
 
(a)
Includes costs related to the Gulf of Mexico oil spill. See page 11 and also Note 2 from page 19 for further information on the accounting for the Gulf of Mexico oil spill.
 
 
Top of page 4
Strategic progress
Upstream
Upstream production, which excludes Rosneft, was 2,460mboe/d for the third quarter, flat with last year. Adjusted for portfolio and PSA* impacts, underlying production* was 6.8% higher, driven by continued ramp-up of production from major projects*. Upstream unit production costs* were higher year-to-date due to increased wellwork* activity and the impact of higher prices on production entitlements.
Five Upstream major projects have been delivered to date in 2018. The Thunder Horse Northwest expansion in the Gulf of Mexico and Western Flank B in Australia started up in October, both ahead of schedule. Shah Deniz 2 in Azerbaijan, Taas-Yuryakh expansion in Russia, and Atoll in Egypt, started up during the first half of the year.
In September, BP accessed new acreage in the prolific Santos basin, offshore Brazil, by winning the licence for the Pau Brasil block. This represents BP’s first operated position in the Santos basin.
The acquisition of the significant portfolio of onshore US oil and gas assets from BHP, announced in July, is expected to complete by end of October.
 
Downstream
In manufacturing, refining and petrochemicals operations have both been strong in the quarter. Refining availability was 96.3%, the highest in 15 years.
In marketing, BP’s convenience partnership model has now been rolled out to around 1,300 sites across our network worldwide, and more than 370 BP-branded retail sites are now open in Mexico.
 
 
 
Advancing the energy transition
BP completed the acquisition of Chargemaster, the UK’s largest electric vehicle charging company, in the quarter.
Air BP entered into an agreement with Neste to explore opportunities to increase the supply and availability of sustainable aviation fuel.
In the quarter Lightsource BP agreed to form a joint venture to fund, develop and operate solar projects in Egypt and also announced an expansion of its position in the US, acquiring a portfolio of solar projects in Pennsylvania.
 
Financial framework
Operating cash flow excluding Gulf of Mexico oil spill payments* was $6.6 billion in the quarter and $19.0 billion in the nine months. These compare with $6.6 billion for the third quarter of 2017 and $17.9 billion for the nine months of 2017.
 
Organic capital expenditure* of $3.7 billion in the quarter brought the total for the nine months of 2018 to $10.7 billion. BP expects 2018 organic capital expenditure to be around $15 billion.
 
Divestments and other proceeds totalled $0.4 billion for the nine months. 2018 total proceeds are expected to be over $3 billion.
Gulf of Mexico oil spill payments on a post-tax basis totalled $2.9 billion in the nine months of 2018. Payments for the full year are expected to be just over $3 billion on a post-tax basis.
 
Gearing* at the end of the quarter was 27.5%, within BP’s target band of 20-30%. Gearing is expected to remain within the target band during the fourth quarter of 2018.
 
 
 
Operating metrics
 
 
Nine months 2018
 
 
Financial metrics
 
 
Nine months 2018
 
 
(vs. Nine months 2017)
 
 
 
(vs. Nine months 2017)
 
Tier 1 process safety events*
 
 
13
 
 
Underlying RC profit*
 
 
$9.2bn
 
 
(+1)
 
 
 
(+$5.2bn)
 
Reported recordable injury frequency*
 
 
0.21
 
 
Operating cash flow excluding Gulf of Mexico oil spill payments (post-tax)
 
 
$19.0bn
 
 
(-4%)
 
 
 
(+$1.1bn)
 
Group production
 
 
3,645mboe/d
 
 
Organic capital expenditure
 
 
$10.7bn
 
 
(+2.5%)
 
 
 
(-$1.1bn)
 
Upstream production (excludes Rosneft segment)
 
 
2,510mboe/d
 
 
Gulf of Mexico oil spill payments (post-tax)
 
 
$2.9bn
 
 
(+3.4%)
 
 
 
(-$1.9bn)
 
Upstream unit production costs
 
 
$7.27/boe
 
 
Divestment proceeds*
 
 
$0.4bn
 
 
(+1.5%)
 
 
 
(-$0.5bn)
 
BP-operated Upstream plant reliability*(a)
 
 
95.6%
 
 
Net debt ratio* (gearing)
 
 
27.5%
 
 
(+1.0)
 
 
 
(-0.9)
 
Refining availability*
 
 
94.8%
 
 
Dividend per ordinary share(b)
 
 
10.25 cents
 
 
(-0.2)
 
 
 
(+2.5%)
 
 
(a)
BP-operated Upstream operating efficiency* has been replaced with Upstream plant reliability as a group operating metric in the first quarter 2018. It is more comparable with the equivalent metric disclosed for the Downstream, which is ‘Refining availability’.
(b)
Represents dividend announced in the quarter (vs. prior year quarter).
 
 
 
The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 35.
 
 
Top of page 5
 
 
 
 
 
This page is intentionally left blank
 
 
Top of page 6
Upstream
 
 
 
Third
 
Second
 
Third
 
 
Nine
 
Nine
 
 
 
quarter
 
quarter
 
quarter
 
 
months
 
months
 
$ million
 
 
2018
 
2018
 
2017
 
 
2018
 
2017
 
Profit before interest and tax
 
 
3,473
 
 
3,518
 
 
1,255
 
 
 
10,166
 
 
3,301
 
 
Inventory holding (gains) losses*
 
 
(1
 
)
 
(4
 
)
 
(13
 
)
 
 
(6
 
)
 
(8
 
)
 
RC profit before interest and tax
 
 
3,472
 
 
3,514
 
 
1,242
 
 
 
10,160
 
 
3,293
 
 
Net (favourable) adverse impact of non-operating items* and fair value accounting effects*
 
 
527
 
 
(6
 
)
 
320
 
 
 
504
 
 
349
 
 
Underlying RC profit before interest and tax*(a)
 
 
3,999
 
 
3,508
 
 
1,562
 
 
 
10,664
 
 
3,642
 
 
 
(a)
See page 7 for a reconciliation to segment RC profit before interest and tax by region.
 
Financial results
The replacement cost profit before interest and tax for the third quarter and nine months was $3,472 million and $10,160 million respectively, compared with $1,242 million and $3,293 million for the same periods in 2017. The third quarter and nine months included a net non-operating charge of $242 million and $319 million respectively, compared with a net charge of $146 million and $527 million for the same periods in 2017. Fair value accounting effects in the third quarter and nine months had an adverse impact of $285 million and $185 million respectively, compared with an adverse impact of $174 million and a favourable impact of $178 million in the same periods of 2017.
 
 
After adjusting for non-operating items and fair value accounting effects, the underlying replacement cost profit before interest and tax for the third quarter and nine months was $3,999 million and $10,664 million respectively, compared with $1,562 million and $3,642 million for the same periods in 2017. The result for the third quarter mainly reflected higher liquids and gas realizations and higher production from the ramp-up of major projects*, partially offset by higher exploration write-offs. The result for the nine months mainly reflected higher liquids and gas realizations, higher production from the ramp-up of major projects and lower exploration write-offs.
 
 
Production
Production for the quarter was 2,460mboe/d, flat with the third quarter of 2017. Underlying production* for the quarter increased by 6.8%, due to the ramp-up of major projects.
 
For the nine months, production was 2,510mboe/d, 3.4% higher than 2017. Underlying production for the nine months was 10.0% higher than 2017 due to the ramp-up of major projects.
 
 
Key events
On 28 September, BP won the licence for the Pau Brasil block located in the Santos basin, offshore Brazil, in the fifth Pre-Salt Production Sharing Contract Bid Round (BP operator 50%, CNOOC 30% and Ecopetrol 20%). BP will now have an operated position in the Santos basin for the first time.
 
 
On 1 October, EnQuest notified BP of the exercise of its option to acquire the remaining 75% of BP’s stake in the Magnus field and associated infrastructure. EnQuest acquired 25% of BP’s interest in Magnus field and associated infrastructure on 1 December 2017.
 
 
On 8 October, BP, Eni, and Libya’s National Oil Corporation (NOC) signed a letter of intent to resume exploration activities under a major exploration and production sharing agreement (EPSA) in Libya. On completion, Eni would become operator of the EPSA with a 42.5% interest. BP and the Libyan Investment Authority would hold the remaining 42.5% and 15% interest, respectively. Currently, BP is the operator of the EPSA with an 85% interest and the Libyan Investment Authority holds the remaining 15% interest.
 
 
On 18 October, BP announced the start-up of the Thunder Horse Northwest Expansion project in the deepwater Gulf of Mexico. This is the fourth major project to begin production this year. The project was delivered under budget and ahead of schedule (BP operator 75% and ExxonMobil 25%).
 
 
On 25 October, the Western Flank B project in Australia commenced gas production. This is the fifth major project to start up this year. The project was delivered under budget and ahead of schedule (Woodside operator, BP, BHP, Chevron, Shell, and Japan Australia LNG, each 16.67%).
 
 
Outlook
Looking ahead, we expect fourth-quarter reported production to be higher than the third quarter due to the acquisition of BHP assets in the US Lower 48.
 
The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 35.
 
 
 
 
Top of page 7
Upstream (continued)
 
 
Third
 
Second
 
Third
 
 
Nine
 
Nine
 
 
 
quarter
 
quarter
 
quarter
 
 
months
 
months
 
$ million
 
 
2018
 
2018
 
2017
 
 
2018
 
2017
 
Underlying RC profit before interest and tax
 
 
 
 
 
 
 
 
US
 
 
1,025
 
 
742
 
 
264
 
 
 
2,293
 
 
609
 
 
Non-US
 
 
2,974
 
 
2,766
 
 
1,298
 
 
 
8,371
 
 
3,033
 
 
 
 
3,999
 
 
3,508
 
 
1,562
 
 
 
10,664
 
 
3,642
 
 
Non-operating items
 
 
 
 
 
 
 
 
US(a)
 
 
(149
 
)
 
(29
 
)
 
(97
 
)
 
 
(323
 
)
 
(143
 
)
 
Non-US(b)
 
 
(93
 
)
 
56
 
 
(49
 
)
 
 
4
 
 
(384
 
)
 
 
 
(242
 
)
 
27
 
 
(146
 
)
 
 
(319
 
)
 
(527
 
)
 
Fair value accounting effects
 
 
 
 
 
 
 
 
US
 
 
(10
 
)
 
(143
 
)
 
(100
 
)
 
 
(162
 
)
 
184
 
 
Non-US
 
 
(275
 
)
 
122
 
 
(74
 
)
 
 
(23
 
)
 
(6
 
)
 
 
 
(285
 
)
 
(21
 
)
 
(174
 
)
 
 
(185
 
)
 
178
 
 
RC profit before interest and tax
 
 
 
 
 
 
 
 
US
 
 
866
 
 
570
 
 
67
 
 
 
1,808
 
 
650
 
 
Non-US
 
 
2,606
 
 
2,944
 
 
1,175
 
 
 
8,352
 
 
2,643
 
 
 
 
3,472
 
 
3,514
 
 
1,242
 
 
 
10,160
 
 
3,293
 
 
Exploration expense
 
 
 
 
 
 
 
 
US(a)
 
 
39
 
 
77
 
 
190
 
 
 
425
 
 
255
 
 
Non-US(c)
 
 
271
 
 
87
 
 
107
 
 
 
563
 
 
1,304
 
 
 
 
310
 
 
164
 
 
297
 
 
 
988
 
 
1,559
 
 
Of which: Exploration expenditure written off(a)(c)
 
 
227
 
 
81
 
 
217
 
 
 
734
 
 
1,231
 
 
Production (net of royalties)(d)
 
 
 
 
 
 
 
 
Liquids* (mb/d)
 
 
 
 
 
 
 
 
US
 
 
424
 
 
411
 
 
408
 
 
 
428
 
 
425
 
 
Europe
 
 
128
 
 
147
 
 
123
 
 
 
138
 
 
120
 
 
Rest of World
 
 
663
 
 
659
 
 
809
 
 
 
684
 
 
816
 
 
 
 
1,216
 
 
1,217
 
 
1,341
 
 
 
1,250
 
 
1,360
 
 
Natural gas (mmcf/d)
 
 
 
 
 
 
 
 
US
 
 
1,805
 
 
1,744
 
 
1,703
 
 
 
1,780
 
 
1,625
 
 
Europe
 
 
212
 
 
202
 
 
217
 
 
 
210
 
 
251
 
 
Rest of World
 
 
5,201
 
 
5,297
 
 
4,581
 
 
 
5,317
 
 
4,311
 
 
 
 
7,218
 
 
7,242
 
 
6,502
 
 
 
7,307
 
 
6,187
 
 
Total hydrocarbons* (mboe/d)
 
 
 
 
 
 
 
 
US
 
 
736
 
 
711
 
 
702
 
 
 
734
 
 
705
 
 
Europe
 
 
165
 
 
182
 
 
161
 
 
 
175
 
 
163
 
 
Rest of World
 
 
1,560
 
 
1,572
 
 
1,599
 
 
 
1,601
 
 
1,559
 
 
 
 
2,460
 
 
2,465
 
 
2,462
 
 
 
2,510
 
 
2,427
 
 
Average realizations*(e)
 
 
 
 
 
 
 
 
Total liquids(f) ($/bbl)
 
 
69.68
 
 
67.24
 
 
47.45
 
 
 
66.11
 
 
47.87
 
 
Natural gas ($/mcf)
 
 
3.86
 
 
3.65
 
 
2.89
 
 
 
3.77
 
 
3.18
 
 
Total hydrocarbons ($/boe)
 
 
46.14
 
 
43.37
 
 
33.23
 
 
 
43.64
 
 
34.63
 
 
 
(a)
Third quarter and nine months 2017 include the write-off of $145 million in relation to the value ascribed to certain licences in the deepwater Gulf of Mexico as part of the accounting for the acquisition of upstream assets from Devon Energy in 2011. This has been classified within the ‘other’ category of non-operating items.
(b)
Nine months 2017 relates primarily to an impairment charge related to the sale of the Forties Pipeline System business to INEOS.
(c)
Nine months 2017 predominantly relates to the write-off of exploration well and lease costs in Angola. Nine months 2017 also includes the write-off of exploration well costs in Egypt.
(d)
Includes BP’s share of production of equity-accounted entities in the Upstream segment.
(e)
Realizations are based on sales by consolidated subsidiaries only - this excludes equity-accounted entities.
(f)
Includes condensate, natural gas liquids and bitumen.
 
 
Because of rounding, some totals may not agree exactly with the sum of their component parts.
 
 
 
Top of page 8
Downstream
 
 
 
Third
 
Second
 
Third
 
 
Nine
 
Nine
 
 
 
quarter
 
quarter
 
quarter
 
 
months
 
months
 
$ million
 
 
2018
 
2018
 
2017
 
 
2018
 
2017
 
Profit before interest and tax
 
 
2,592
 
 
2,036
 
 
2,695
 
 
 
6,410
 
 
5,487
 
 
Inventory holding (gains) losses*
 
 
(343
 
)
 
(1,196
 
)
 
(520
 
)
 
 
(1,608
 
)
 
(39
 
)
 
RC profit before interest and tax
 
 
2,249
 
 
840
 
 
2,175
 
 
 
4,802
 
 
5,448
 
 
Net (favourable) adverse impact of non-operating items* and fair value accounting effects*
 
 
(138
 
)
 
615
 
 
163
 
 
 
590
 
 
45
 
 
Underlying RC profit before interest and tax*(a)
 
 
2,111
 
 
1,455
 
 
2,338
 
 
 
5,392
 
 
5,493
 
 
 
(a)
See page 9 for a reconciliation to segment RC profit before interest and tax by region and by business.
 
Financial results
The replacement cost profit before interest and tax for the third quarter and nine months was $2,249 million and $4,802 million respectively, compared with $2,175 million and $5,448 million for the same periods in 2017.
 
The third quarter and nine months include a net non-operating charge of $37 million and $315 million respectively, compared with a charge of $55 million and a gain of $7 million for the same periods in 2017. Fair value accounting effects had a favourable impact of $175 million in the third quarter and an adverse impact of $275 million for the nine months, compared with an adverse impact of $108 million and $52 million for the same periods in 2017.
 
After adjusting for non-operating items and fair value accounting effects, the underlying replacement cost profit before interest and tax for the third quarter and nine months was $2,111 million and $5,392 million respectively, compared with $2,338 million and $5,493 million for the same periods in 2017.
 
Replacement cost profit before interest and tax for the fuels, lubricants and petrochemicals businesses is set out on page 9.
 
 
Fuels
The fuels business reported an underlying replacement cost profit before interest and tax of $1,566 million for the third quarter and $4,018 million for the nine months, compared with $1,788 million and $3,896 million for the same periods in 2017.
 
The refining result for the quarter reflects strong operational performance and higher North American heavy crude oil discounts net of pipeline capacity apportionment impacts. These factors were more than offset by lower industry refining margins and a higher level of turnaround activity in the US. The stronger refining result for the nine months reflects the benefits of increased commercial optimization and higher net North American heavy crude oil discounts.
 
In fuels marketing the rollout of our convenience partnership model continued across the network and retail volumes grew.
 
For the quarter the contribution from supply and trading was similar to last year and higher than the second quarter. The result for the nine months was, however, impacted by a lower contribution from supply and trading in the first half of the year.
 
 
Lubricants
The lubricants business reported an underlying replacement cost profit before interest and tax of $324 million for the third quarter and $981 million for the nine months, compared with $356 million and $1,104 million for the same periods in 2017. The result for the quarter and nine months reflects continued premium volume growth, more than offset by the adverse lag impact of increasing base oil prices, as well as adverse foreign exchange rate movements in the quarter.
 
 
Petrochemicals
The petrochemicals business reported an underlying replacement cost profit before interest and tax of $221 million for the third quarter and $393 million for the nine months, compared with $194 million and $493 million for the same periods in 2017. The result for the quarter and nine months reflects an improved margin environment, increased margin optimization and continued strong cost management. These factors were partially offset by the impact from the divestment of our interest in the SECCO joint venture, which completed in the fourth quarter of last year. The result for the nine months was also impacted by a significantly higher level of turnaround activity in the first half of the year.
 
 
Outlook
Looking to the fourth quarter, we expect lower industry refining margins. We also expect higher levels of turnaround driven by activity at our Whiting refinery in the US.
 
The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 35.
 
 
 
Top of page 9
 
Downstream (continued)
 
 
 
Third
 
Second
 
Third
 
 
Nine
 
Nine
 
 
 
quarter
 
quarter
 
quarter
 
 
months
 
months
 
$ million
 
 
2018
 
2018
 
2017
 
 
2018
 
2017
 
Underlying RC profit before interest and tax - by region
 
 
 
 
 
 
 
 
US
 
 
835
 
 
399
 
 
640
 
 
 
1,823
 
 
1,477
 
 
Non-US
 
 
1,276
 
 
1,056
 
 
1,698
 
 
 
3,569
 
 
4,016
 
 
 
 
2,111
 
 
1,455
 
 
2,338
 
 
 
5,392
 
 
5,493
 
 
Non-operating items
 
 
 
 
 
 
 
 
US
 
 
(14
 
)
 
(155
 
)
 
(39
 
)
 
 
(186
 
)
 
(23
 
)
 
Non-US
 
 
(23
 
)
 
(70
 
)
 
(16
 
)
 
 
(129
 
)
 
30
 
 
 
 
(37
 
)
 
(225
 
)
 
(55
 
)
 
 
(315
 
)
 
7
 
 
Fair value accounting effects(a)
 
 
 
 
 
 
 
 
US
 
 
81
 
 
(299
 
)
 
20
 
 
 
(339
 
)
 
(32
 
)
 
Non-US
 
 
94
 
 
(91
 
)
 
(128
 
)
 
 
64
 
 
(20
 
)
 
 
 
175
 
 
(390
 
)
 
(108
 
)
 
 
(275
 
)
 
(52
 
)
 
RC profit before interest and tax
 
 
 
 
 
 
 
 
US
 
 
902
 
 
(55
 
)
 
621
 
 
 
1,298
 
 
1,422
 
 
Non-US
 
 
1,347
 
 
895
 
 
1,554
 
 
 
3,504
 
 
4,026
 
 
 
 
2,249
 
 
840
 
 
2,175
 
 
 
4,802
 
 
5,448
 
 
Underlying RC profit before interest and tax - by business(b)(c)
 
 
 
 
 
 
 
 
Fuels
 
 
1,566
 
 
1,054
 
 
1,788
 
 
 
4,018
 
 
3,896
 
 
Lubricants
 
 
324
 
 
326
 
 
356
 
 
 
981
 
 
1,104
 
 
Petrochemicals
 
 
221
 
 
75
 
 
194
 
 
 
393
 
 
493
 
 
 
 
2,111
 
 
1,455
 
 
2,338
 
 
 
5,392
 
 
5,493
 
 
Non-operating items and fair value accounting effects(a)
 
 
 
 
 
 
 
 
Fuels
 
 
140
 
 
(584
 
)
 
(154
 
)
 
 
(554
 
)
 
9
 
 
Lubricants
 
 
 
 
(26
 
)
 
(3
 
)
 
 
(29
 
)
 
(8
 
)
 
Petrochemicals
 
 
(2
 
)
 
(5
 
)
 
(6
 
)
 
 
(7
 
)
 
(46
 
)
 
 
 
138
 
 
(615
 
)
 
(163
 
)
 
 
(590
 
)
 
(45
 
)
 
RC profit before interest and tax(b)(c)
 
 
 
 
 
 
 
 
Fuels
 
 
1,706
 
 
470
 
 
1,634
 
 
 
3,464
 
 
3,905
 
 
Lubricants
 
 
324
 
 
300
 
 
353
 
 
 
952
 
 
1,096
 
 
Petrochemicals
 
 
219
 
 
70
 
 
188
 
 
 
386
 
 
447
 
 
 
 
2,249
 
 
840
 
 
2,175
 
 
 
4,802
 
 
5,448
 
 
 
 
 
 
 
 
 
 
BP average refining marker margin (RMM)* ($/bbl)
 
 
14.7
 
 
14.9
 
 
16.3
 
 
 
13.8
 
 
14.0
 
 
 
 
 
 
 
 
 
 
Refinery throughputs (mb/d)
 
 
 
 
 
 
 
 
US
 
 
740
 
 
666
 
 
737
 
 
 
707
 
 
713
 
 
Europe
 
 
805
 
 
786
 
 
768
 
 
 
796
 
 
784
 
 
Rest of World
 
 
248
 
 
228
 
 
240
 
 
 
242
 
 
207
 
 
 
 
1,793
 
 
1,680
 
 
1,745
 
 
 
1,745
 
 
1,704
 
 
Refining availability* (%)
 
 
96.3
 
 
93.3
 
 
95.3
 
 
 
94.8
 
 
95.0
 
 
 
 
 
 
 
 
 
 
Marketing sales of refined products (mb/d)
 
 
 
 
 
 
 
 
US
 
 
1,169
 
 
1,161
 
 
1,186
 
 
 
1,142
 
 
1,160
 
 
Europe
 
 
1,166
 
 
1,135
 
 
1,204
 
 
 
1,116
 
 
1,143
 
 
Rest of World
 
 
497
 
 
477
 
 
480
 
 
 
485
 
 
496
 
 
 
 
2,832
 
 
2,773
 
 
2,870
 
 
 
2,743
 
 
2,799
 
 
Trading/supply sales of refined products
 
 
3,147
 
 
3,247
 
 
3,088
 
 
 
3,192
 
 
3,015
 
 
Total sales volumes of refined products
 
 
5,979
 
 
6,020
 
 
5,958
 
 
 
5,935
 
 
5,814
 
 
 
 
 
 
 
 
 
 
Petrochemicals production (kte)
 
 
 
 
 
 
 
 
US
 
 
660
 
 
404
 
 
617
 
 
 
1,563
 
 
1,787
 
 
Europe
 
 
1,209
 
 
1,094
 
 
1,285
 
 
 
3,431
 
 
3,903
 
 
Rest of World
 
 
1,146
 
 
1,358
 
 
2,025
 
 
 
3,896
 
 
6,099
 
 
 
 
3,015
 
 
2,856
 
 
3,927
 
 
 
8,890
 
 
11,789
 
 
 
(a)
For Downstream, fair value accounting effects arise solely in the fuels business. See page 28 for further information.
(b)
Segment-level overhead expenses are included in the fuels business result.
(c)
Results from petrochemicals at our Gelsenkirchen and Mülheim sites in Germany are reported in the fuels business.
 
 
Top of page 10
 
Rosneft
 
 
 
Third
 
Second
 
Third
 
 
Nine
 
Nine
 
 
 
quarter
 
quarter
 
quarter
 
 
months
 
months
 
$ million
 
 
2018(a)
 
2018
 
2017
 
 
2018(a)
 
2017
 
Profit before interest and tax(b)
 
 
835
 
 
876
 
 
161
 
 
 
1,980
 
 
505
 
 
Inventory holding (gains) losses*
 
 
(27
 
)
 
(110
 
)
 
(24
 
)
 
 
(159
 
)
 
10
 
 
RC profit before interest and tax
 
 
808
 
 
766
 
 
137
 
 
 
1,821
 
 
515
 
 
Net charge (credit) for non-operating items*
 
 
64
 
 
 
 
 
 
 
64
 
 
 
 
Underlying RC profit before interest and tax*
 
 
872
 
 
766
 
 
137
 
 
 
1,885
 
 
515
 
 
 
 
Financial results
Replacement cost (RC) profit before interest and tax for the third quarter and nine months was $808 million and $1,821 million respectively, compared with $137 million and $515 million for the same periods in 2017.
 
After adjusting for a non-operating item, the underlying RC profit before interest and tax for the third quarter and nine months was $872 million and $1,885 million respectively. There were no non-operating items in the third quarter and nine months of 2017.
 
Compared with the same periods in 2017, the results for the third quarter and nine months were primarily affected by higher oil prices, significant foreign exchange impacts and certain one-off items.
 
Following the approval at the annual general meeting in June of a resolution to pay a final dividend for 2017 of 6.65 roubles per ordinary share, BP received a payment of $200 million, after the deduction of withholding tax, on 31 July.
 
The extraordinary general meeting held on 28 September adopted a resolution to pay interim dividends of 14.58 Russian roubles per ordinary share which constitute 50% of Rosneft's IFRS net profit for the first half of 2018. BP expects to receive a dividend of approximately $410 million after the deduction of withholding tax, subject to fluctuations in foreign exchange, in the fourth quarter.
 
 
 
 
 
 
 
Third
 
Second
 
Third
 
 
Nine
 
Nine
 
 
 
quarter
 
quarter
 
quarter
 
 
months
 
months
 
 
 
2018(a)
 
2018
 
2017
 
 
2018(a)
 
2017
 
Production (net of royalties) (BP share)
 
 
 
 
 
 
 
 
Liquids* (mb/d)
 
 
933
 
 
909
 
 
903
 
 
 
915
 
 
906
 
 
Natural gas (mmcf/d)
 
 
1,260
 
 
1,262
 
 
1,263
 
 
 
1,276
 
 
1,300
 
 
Total hydrocarbons* (mboe/d)
 
 
1,151
 
 
1,127
 
 
1,120
 
 
 
1,135
 
 
1,130
 
 
 
(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 nine months ended 30 September 2018. 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 increase the reported profit before interest and tax, as shown in the table above, compared with the equivalent amount in Russian roubles in Rosneft’s IFRS financial statements. In particular, in third quarter 2018 these adjustments resulted in BP reporting a lower amount relating to impairment charges of downstream goodwill than the equivalent amounts expected to be reported by Rosneft. BP’s share of Rosneft’s profit before interest and tax for each year-to-date period is calculated by translating the amounts reported in Russian roubles into US dollars using the average exchange rate for the year to date. BP's share of Rosneft’s earnings after finance costs, taxation and non-controlling interests, as adjusted, is included in the BP group income statement within profit before interest and taxation.
 
 
Top of page 11
Other businesses and corporate
 
 
 
Third
 
Second
 
Third
 
 
Nine
 
Nine
 
 
 
quarter
 
quarter
 
quarter
 
 
months
 
months
 
$ million
 
 
2018
 
2018
 
2017
 
 
2018
 
2017
 
Profit (loss) before interest and tax
 
 
 
 
 
 
 
 
Gulf of Mexico oil spill - business economic loss claims
 
 
(69
 
)
 
(249
 
)
 
 
 
 
(318
 
)
 
(260
 
)
 
Gulf of Mexico oil spill - other
 
 
(59
 
)
 
(184
 
)
 
(84
 
)
 
 
(329
 
)
 
(206
 
)
 
Other
 
 
(687
 
)
 
(592
 
)
 
(376
 
)
 
 
(1,764
 
)
 
(1,146
 
)
 
Profit (loss) before interest and tax
 
 
(815
 
)
 
(1,025
 
)
 
(460
 
)
 
 
(2,411
 
)
 
(1,612
 
)
 
Inventory holding (gains) losses*
 
 
 
 
 
 
 
 
 
 
 
 
 
RC profit (loss) before interest and tax
 
 
(815
 
)
 
(1,025
 
)
 
(460
 
)
 
 
(2,411
 
)
 
(1,612
 
)
 
Net charge (credit) for non-operating items*
 
 
 
 
 
 
 
 
Gulf of Mexico oil spill - business economic loss claims
 
 
69
 
 
249
 
 
 
 
 
318
 
 
260
 
 
Gulf of Mexico oil spill - other
 
 
59
 
 
184
 
 
84
 
 
 
329
 
 
206
 
 
Other
 
 
342
 
 
115
 
 
(22
 
)
 
 
550
 
 
(58
 
)
 
Net charge (credit) for non-operating items
 
 
470
 
 
548
 
 
62
 
 
 
1,197
 
 
408
 
 
Underlying RC profit (loss) before interest and tax*
 
 
(345
 
)
 
(477
 
)
 
(398
 
)
 
 
(1,214
 
)
 
(1,204
 
)
 
Underlying RC profit (loss) before interest and tax
 
 
 
 
 
 
 
 
US
 
 
(166
 
)
 
(123
 
)
 
(145
 
)
 
 
(436
 
)
 
(446
 
)
 
Non-US
 
 
(179
 
)
 
(354
 
)
 
(253
 
)
 
 
(778
 
)
 
(758
 
)
 
 
 
(345
 
)
 
(477
 
)
 
(398
 
)
 
 
(1,214
 
)
 
(1,204
 
)
 
Non-operating items
 
 
 
 
 
 
 
 
US
 
 
(438
 
)
 
(498
 
)
 
(92
 
)
 
 
(1,084
 
)
 
(480
 
)
 
Non-US
 
 
(32
 
)
 
(50
 
)
 
30
 
 
 
(113
 
)
 
72
 
 
 
 
(470
 
)
 
(548
 
)
 
(62
 
)
 
 
(1,197
 
)
 
(408
 
)
 
RC profit (loss) before interest and tax
 
 
 
 
 
 
 
 
US
 
 
(604
 
)
 
(621
 
)
 
(237
 
)
 
 
(1,520
 
)
 
(926
 
)
 
Non-US
 
 
(211
 
)
 
(404
 
)
 
(223
 
)
 
 
(891
 
)
 
(686
 
)
 
 
 
(815
 
)
 
(1,025
 
)
 
(460
 
)
 
 
(2,411
 
)
 
(1,612
 
)
 
 
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 third quarter and nine months was $815 million and $2,411 million respectively, compared with $460 million and $1,612 million for the same periods in 2017.
 
The results included a net non-operating charge of $470 million for the third quarter and $1,197 million for the nine months, compared with a charge of $62 million and $408 million for the same periods in 2017. 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 third quarter and nine months was $345 million and $1,214 million respectively, compared with $398 million and $1,204 million for the same periods in 2017.
 
Alternative Energy
The net ethanol-equivalent production (which includes ethanol and sugar) for the third quarter and nine months was 354 million litres and 621 million litres respectively, compared with 362 million litres and 588 million litres for the same periods in 2017.
 
Net wind generation capacity* was 1,431MW at 30 September 2018, compared with 1,432MW at 30 September 2017. BP’s net share of wind generation for the third quarter and nine months was 687GWh and 2,888GWh respectively, compared with 644GWh and 2,856GWh for the same periods in 2017.
 
In July, Lightsource BP, the solar development company (BP 43%), formed a joint venture with Hassan Allam Holding in Egypt. The joint venture will fund, develop and operate solar projects locally, offering commercial and residential customers in Egypt world-class solutions in solar energy and energy storage. Lightsource BP is also evaluating new opportunities in a number of other countries, including Brazil and Australia.
 
 
 
 
Top of page 12
Financial statements
 
 
Group income statement
 
 
 
Third
 
Second
 
Third
 
 
Nine
 
Nine
 
 
 
quarter
 
quarter
 
quarter
 
 
months
 
months
 
$ million
 
 
2018
 
2018
 
2017
 
 
2018
 
2017
 
 
 
 
 
 
 
 
 
Sales and other operating revenues (Note 6)
 
 
79,468
 
 
75,439
 
 
60,018
 
 
 
223,079
 
 
172,392
 
 
Earnings from joint ventures – after interest and tax
 
 
148
 
 
220
 
 
231
 
 
 
661
 
 
596
 
 
Earnings from associates – after interest and tax
 
 
990
 
 
1,027
 
 
282
 
 
 
2,431
 
 
804
 
 
Interest and other income
 
 
154
 
 
165
 
 
185
 
 
 
478
 
 
434
 
 
Gains on sale of businesses and fixed assets
 
 
43
 
 
56
 
 
92
 
 
 
204
 
 
334
 
 
Total revenues and other income
 
 
80,803
 
 
76,907
 
 
60,808
 
 
 
226,853
 
 
174,560
 
 
Purchases
 
 
60,923
 
 
58,424
 
 
44,441
 
 
 
170,859
 
 
127,971
 
 
Production and manufacturing expenses(a)
 
 
5,879
 
 
5,515
 
 
5,454
 
 
 
16,832
 
 
16,470
 
 
Production and similar taxes (Note 8)
 
 
451
 
 
531
 
 
449
 
 
 
1,350
 
 
1,264
 
 
Depreciation, depletion and amortization (Note 7)
 
 
3,728
 
 
3,811
 
 
3,904
 
 
 
11,470
 
 
11,539
 
 
Impairment and losses on sale of businesses and fixed assets
 
 
548
 
 
(23
 
)
 
108
 
 
 
616
 
 
612
 
 
Exploration expense
 
 
310
 
 
164
 
 
297
 
 
 
988
 
 
1,559
 
 
Distribution and administration expenses
 
 
2,801
 
 
2,929
 
 
2,634
 
 
 
8,524
 
 
7,527
 
 
Profit (loss) before interest and taxation
 
 
6,163
 
 
5,556
 
 
3,521
 
 
 
16,214
 
 
7,618
 
 
Finance costs(a)
 
 
698
 
 
535
 
 
511
 
 
 
1,786
 
 
1,458
 
 
Net finance expense relating to pensions and other post-retirement benefits
 
 
31
 
 
31
 
 
55
 
 
 
93
 
 
162
 
 
Profit (loss) before taxation
 
 
5,434
 
 
4,990
 
 
2,955
 
 
 
14,335
 
 
5,998
 
 
Taxation(a)
 
 
2,031
 
 
2,117
 
 
1,198
 
 
 
5,528
 
 
2,593
 
 
Profit (loss) for the period
 
 
3,403
 
 
2,873
 
 
1,757
 
 
 
8,807
 
 
3,405
 
 
Attributable to
 
 
 
 
 
 
 
 
BP shareholders
 
 
3,349
 
 
2,799
 
 
1,769
 
 
 
8,617
 
 
3,362
 
 
Non-controlling interests
 
 
54
 
 
74
 
 
(12
 
)
 
 
190
 
 
43
 
 
 
 
3,403
 
 
2,873
 
 
1,757
 
 
 
8,807
 
 
3,405
 
 
 
 
 
 
 
 
 
 
Earnings per share (Note 9)
 
 
 
 
 
 
 
 
Profit (loss) for the period attributable to BP shareholders
 
 
 
 
 
 
 
 
Per ordinary share (cents)
 
 
 
 
 
 
 
 
Basic
 
 
16.74
 
 
14.03
 
 
8.95
 
 
 
43.17
 
 
17.10
 
 
Diluted
 
 
16.65
 
 
13.96
 
 
8.90
 
 
 
42.91
 
 
17.00
 
 
Per ADS (dollars)
 
 
 
 
 
 
 
 
Basic
 
 
1.00
 
 
0.84
 
 
0.54
 
 
 
2.59
 
 
1.03
 
 
Diluted
 
 
1.00
 
 
0.84
 
 
0.53
 
 
 
2.57
 
 
1.02
 
 
 
(a)
See Note 2 for information on the impact of the Gulf of Mexico oil spill on these income statement line items.
 
 
 
Top of page 13
Condensed group statement of comprehensive income
 
 
 
Third
 
Second
 
Third
 
 
Nine
 
Nine
 
 
 
quarter
 
quarter
 
quarter
 
 
months
 
months
 
$ million
 
 
2018
 
2018
 
2017
 
 
2018
 
2017
 
 
 
 
 
 
 
 
 
Profit (loss) for the period
 
 
3,403
 
 
2,873
 
 
1,757
 
 
 
8,807
 
 
3,405
 
 
Other comprehensive income
 
 
 
 
 
 
 
 
Items that may be reclassified subsequently to profit or loss
 
 
 
 
 
 
 
 
Currency translation differences
 
 
(753
 
)
 
(2,612
 
)
 
611
 
 
 
(2,834
 
)
 
1,722
 
 
Exchange (gains) losses on translation of foreign operations reclassified to gain or loss on sale of businesses and fixed assets
 
 
 
 
 
 
13
 
 
 
 
 
18
 
 
Available-for-sale investments
 
 
 
 
 
 
 
 
 
 
 
3
 
 
Cash flow hedges and costs of hedging
 
 
65
 
 
(107
 
)
 
98
 
 
 
(124
 
)
 
375
 
 
Share of items relating to equity-accounted entities, net of tax
 
 
95
 
 
(33
 
)
 
128
 
 
 
217
 
 
431
 
 
Income tax relating to items that may be reclassified
 
 
9
 
 
52
 
 
(59
 
)
 
 
(29
 
)
 
(180
 
)
 
 
 
(584
 
)
 
(2,700
 
)
 
791
 
 
 
(2,770
 
)
 
2,369
 
 
Items that will not be reclassified to profit or loss
 
 
 
 
 
 
 
 
Remeasurements of the net pension and other post-retirement benefit liability or asset
 
 
389
 
 
1,714
 
 
1,002
 
 
 
2,968
 
 
2,047
 
 
Cash flow hedges that will subsequently be transferred to the balance sheet
 
 
(7
 
)
 
(35
 
)
 
 
 
 
(29
 
)
 
 
 
Income tax relating to items that will not be reclassified
 
 
(119
 
)
 
(557
 
)
 
(351
 
)
 
 
(941
 
)
 
(699
 
)
 
 
 
263
 
 
1,122
 
 
651
 
 
 
1,998
 
 
1,348
 
 
Other comprehensive income
 
 
(321
 
)
 
(1,578
 
)
 
1,442
 
 
 
(772
 
)
 
3,717
 
 
Total comprehensive income
 
 
3,082
 
 
1,295
 
 
3,199
 
 
 
8,035
 
 
7,122
 
 
Attributable to
 
 
 
 
 
 
 
 
BP shareholders
 
 
3,040
 
 
1,268
 
 
3,206
 
 
 
7,888
 
 
7,041
 
 
Non-controlling interests
 
 
42
 
 
27
 
 
(7
 
)
 
 
147
 
 
81
 
 
 
 
3,082
 
 
1,295
 
 
3,199
 
 
 
8,035
 
 
7,122
 
 
 
 
Top of page 14
Condensed group statement of changes in equity
 
 
 
BP shareholders’
 
Non-controlling
 
Total
 
$ million
 
 
equity
 
interests
 
equity
 
At 31 December 2017
 
 
98,491
 
 
1,913
 
 
100,404
 
 
Adjustment on adoption of IFRS 9, net of tax(a)
 
 
(180
 
)
 
 
 
(180
 
)
 
At 1 January 2018
 
 
98,311
 
 
1,913
 
 
100,224
 
 
 
 
 
 
 
Total comprehensive income
 
 
7,888
 
 
147
 
 
8,035
 
 
Dividends
 
 
(4,965
 
)
 
(129
 
)
 
(5,094
 
)
 
Cash flow hedges transferred to the balance sheet, net of tax
 
 
17
 
 
 
 
17
 
 
Repurchase of ordinary share capital
 
 
(339
 
)
 
 
 
(33