BP 2006 Annual Report Download - page 3

Information about this report
This document constitutes the Annual Report and Accounts of BP p.l.c.
for the year ended 31 December 2006 in accordance with UK
requirements and is dated 23 February 2007. This document also contains
information set out within the company’s Annual Report on Form 20-F
in accordance with the requirements of the US Securities and Exchange
Commission (SEC). Such information will be supplemented and may
be updated at the time of filing that document with the SEC, or later
amended, if necessary.
The financial information for 2005 and 2004 has been restated to reflect
the following, all with effect from 1 January 2006: (a) the transfer of three
equity-accounted entities from Other businesses and corporate to
Refining and Marketing following the sale of Innovene; (b) the transfer
of certain mid-stream assets and activities from Refining and Marketing
and Exploration and Production to Gas, Power and Renewables; (c) the
transfer of Hydrogen for Transport activities from Gas, Power and
Renewables to Refining and Marketing; and (d) a change to the basis
of accounting for certain over-the-counter forward sale and purchase
contracts for oil, natural gas, natural gas liquids and power. (See Financial
statements – Note 2 on page 109 for further details.)
On pages 4-9, references within BP Annual Report and Accounts 2006
to ‘profits’, ‘results’ and ‘return on average capital employed’ are to those
measures on a replacement cost basis unless otherwise indicated.
Reconciliation of profit for the year to replacement cost profit
$million
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2006 2005 2004
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Profit before interest and tax from continuing operations 35,158 32,682 25,746
Finance costs and other finance expense (516) (761) (780)
Taxation (12,331) (9,473) (7,082)
Minority interest (286) (291) (187)
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Profit for the year from continuing operations attributable to BP shareholders 22,025 22,157 17,697
Profit (loss) for the year from Innovene operations (25) 184 (622)
Inventory holding (gains) losses 253 (3,027) (1,643)
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Replacement cost profita22,253 19,314 15,432
Replacement cost profit from continuing operations attributable to BP shareholders 22,278 19,513 16,336
Replacement cost loss from Innovene operations (25) (199) (904)
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Replacement cost profit 22,253 19,314 15,432
Exploration and Production 29,647 25,485 18,075
Refining and Marketing 5,283 4,394 5,194
Gas, Power and Renewables 1,376 1,077 964
Other businesses and corporate (947) (1,237) 155
Consolidation adjustments
Unrealized profit in inventory 52 (208) (191)
Net profit on transactions between continuing operations and Innovene operations –527 188
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Replacement cost profit before interest and tax 35,411 30,038 24,385
Finance costs and other finance expense (516) (761) (780)
Taxation (12,331) (9,473) (7,082)
Minority interest (286) (291) (187)
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Replacement cost profit from continuing operations attributable to BP shareholders 22,278 19,513 16,336
Per ordinary share – cents
Profit for the year attributable to BP shareholders 109.84 105.74 78.24
Replacement cost profit 111.10 91.41 70.71
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Dividends per ordinary share – cents 38.40 34.85 27.70
–pence 21.104 19.152 15.251
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Dividends paid per American depositary share (ADS) – dollars 2.304 2.091 1.662
aReplacement cost profit reflects the current cost of supplies. The replacement cost profit for the year is determined by excluding from profit inventory holding gains and
losses. BP uses this measure to assist investors to assess BP’s performance from period to period.
The Annual Report and Accounts for the year ended 31 December 2006
contains the Directors’ Report, including the Business Review, on pages 4-67,
83-91, 94 and 205. The Directors’ Remuneration Report is on pages 68-75.
The consolidated financial statements are on pages 93-175. The reports of
the auditor are on page 95 for the group and page 206 for the company.
BP p.l.c. is the parent company of the BP group of companies. Unless
otherwise stated, the text does not distinguish between the activities and
operations of the parent company and those of its subsidiaries.
The term ‘shareholder’ in the Annual Report and Accounts means,
unless the context otherwise requires, investors in the equity capital of
BP p.l.c., both direct and/or indirect.
BP Annual Report and Accounts 2006 and BP Annual Review 2006
maybedownloadedfromwww.bp.com/annualreview.Nomaterialon
the BP website, other than the items identified as BP Annual Report
and Accounts 2006 and BP Annual Review 2006, forms any part
of those documents.
As BP shares, in the form of ADSs, are listed on the New York Stock
Exchange (NYSE), an Annual Report on Form 20-F will be filed with the
SEC in accordance with the US Securities Exchange Act of 1934. When
filed, copies may be obtained, free of charge (see page 90). BP discloses
on its website at www.bp.com/NYSEcorporategovernancerules significant
ways (if any) in which its corporate governance practices differ from those
mandated for US companies under NYSE listing standards.
Cautionary statement
BP Annual Report and Accounts 2006 contains certain forward-looking
statements within the meaning of the US Private Securities Litigation
Reform Act of 1995 with respect to the financial condition, results of
operations and businesses of BP and certain of the plans and objectives
of BP with respect to these items. For further details, please see
Forward-looking statements on page 13.
The registered office of BP p.l.c. is 1 St James’s Square, London
SW1Y 4PD, UK. Telephone: [phone].
Registered in England and Wales No. 102498.
Stock exchange symbol ‘BP’.
BP Annual Report and Accounts 2006 1