BP 2006 Annual Report Download - page 193

BP Annual Report and Accounts 2006 191
53 US GAAP reconciliation continued
$ million
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2004
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
As reported Reclassification As adjusted
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Sales and other operating revenues 192,024 11,279 203,303
Profit before interest and taxation from continuing operations 25,746 (714) 25,032
Finance costs 440 – 440
Other finance expense 340 17 357
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Profit before taxation from continuing operations 24,966 (731) 24,235
Taxation 7,082 (109) 6,973
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Profit from continuing operations 17,884 (622) 17,262
Loss from Innovene operations (622) 622 –
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Profit for the year 17,262 – 17,262
(p) Energy trading contracts
The disclosure requirements of EITF 02-03 ‘Issues Involved in Accounting for Derivative Contracts Held for Trading Purposes and Contracts Involved in
Energy Trading and Risk Management Activities’, in respect of energy trading contracts are set out below. For the group, energy trading contracts in oil,
natural gas, NGLs and power comprise exchange-traded derivative instruments such as futures and options and non-exchange-traded instruments such
as swaps, ‘over-the-counter’ options and forward contracts.
The following tables show the net fair value of contracts held for trading purposes at 31 December analysed by maturity period and by methodology
of fair value estimation.
$ million
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2006
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Less than
1 year 1-3 years 4-5 years
Over
5 years Total
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Prices actively quoted –––––
Prices sourced from observable data or market corroboration 654 83 55 4 796
Prices based on models and other valuation methods 12 (26) (14) 20 (8)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
666574124788
$ million
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2005
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Less than
1 year 1-3 years 4-5 years
Over
5 years Total
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Prices actively quoted (179) (146) (4) (12) (341)
Prices sourced from observable data or market corroboration 660 (89) 49 – 620
Prices based on models and other valuation methods 12 1 77 46 136
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
493 (234) 122 34 415
The following tables show the changes during the year in the net fair value of instruments held for trading purposes for the years 2006, 2005 and 2004.
$ million
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Oil price
Natural
gas
price
Power
price
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Fair value of contracts at 1 January 2006 (34) 270 179
Contracts realized or settled in the year 83 (259) (33)
Unrealized gains (losses) recognized at inception of contract 36 249 (69)
Unrealized gains (losses) recognized as a result of changes in valuation techniques and assumptions 1––
Other unrealized gains (losses) recognized during the year (68) 469 (36)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Fair value of contracts at 31 December 2006 18 729 41
$ million
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Oil price
Natural
gas
price
Power
price
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Fair value of contracts at 1 January 2005 (140) 414 177
Contracts realized or settled in the year 144 (681) 76
Unrealized gains (losses) recognized at inception of contract (73) (41) 1
Unrealized gains (losses) recognized as a result of changes in valuation techniques and assumptions –––
Other unrealized gains (losses) recognized during the year 35 578 (75)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Fair value of contracts at 31 December 2005 (34) 270 179