BP 2010 Annual Report Download - page 195
Download and view the complete annual report
Please find page 195 of the 2010 BP annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.
Notesonnancialstatements
Financial statements
34.Derivativenancialinstrumentscontinued
Derivatives held for trading
Thegroupmaintainsactivetradingpositionsinavarietyofderivatives.Thecontractsmaybeenteredintoforriskmanagementpurposes,tosatisfysupply
requirementsorforentrepreneurialtrading.Certaincontractsareclassiedasheldfortrading,regardlessoftheiroriginalbusinessobjective,andare
recognizedatfairvaluewithchangesinfairvaluerecognizedintheincomestatement.Tradingactivitiesareundertakenbyusingarangeofcontracttypes
incombinationtocreateincrementalgainsbyarbitragingpricesbetweenmarkets,locationsandtimeperiods.Thenetoftheseexposuresismonitored
usingmarketvalue-at-risktechniquesasdescribedinNote27.
Thefollowingtablesshowfurtherinformationonthefairvalueofderivativesandothernancialinstrumentsheldfortradingpurposes.
Derivativeassetsheldfortradinghavethefollowingfairvaluesandmaturities.
$million
2010
Less than Over
1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years Total
Currencyderivatives 124 41 18 11 – – 194
Oilpricederivatives 797 128 82 64 21 7 1,099
Naturalgaspricederivatives 2,591 1,100 652 375 231 401 5,350
Powerpricederivatives 389 125 35 11 1 – 561
3,901 1,394 787 461 253 408 7,204
$million
2009
Lessthan Over
1year 1-2years 2-3years 3-4years 4-5years 5years Total
Currencyderivatives 162 83 33 22 16 2 318
Oilpricederivatives 814 136 69 59 44 18 1,140
Naturalgaspricederivatives 2,958 1,059 582 354 186 497 5,636
Powerpricederivatives 496 139 32 12 3 – 682
Otherderivatives 47 – – – – – 47
4,477 1,417 716 447 249 517 7,823
Derivativeliabilitiesheldfortradinghavethefollowingfairvaluesandmaturities.
$million
2010
Less than Over
1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years Total
Currencyderivatives (228) (6) (46) – – – (280)
Oilpricederivatives (794) (76) (6) (1) – – (877)
Naturalgaspricederivatives (2,174) (741) (484) (161) (114) (277) (3,951)
Powerpricederivatives (287) (103) (32) (9) (1) – (432)
Otherderivatives – (29) (60) – – – (89)
(3,483) (955) (628) (171) (115) (277) (5,629)
$million
2009
Lessthan Over
1year 1-2years 2-3years 3-4years 4-5years 5years Total
Currencyderivatives (110) (58) (20) (32) (4) (2) (226)
Oilpricederivatives (1,083) (67) (29) (11) (1) – (1,191)
Naturalgaspricederivatives (2,381) (607) (248) (222) (78) (424) (3,960)
Powerpricederivatives (335) (109) (39) (11) (3) – (497)
Otherderivatives (47) – – – – – (47)
(3,956) (841) (336) (276) (86) (426) (5,921)
Ifatinceptionofacontractthevaluationcannotbesupportedbyobservablemarketdata,anygainorlossdeterminedbythevaluationmethodologyisnot
recognizedintheincomestatementbutisdeferredonthebalancesheetandiscommonlyknownas‘day-oneprotorloss’.Thisdeferredgainorlossis
recognizedintheincomestatementoverthelifeofthecontractuntilsubstantiallyalloftheremainingcontracttermcanbevaluedusingobservablemarket
dataatwhichpointanyremainingdeferredgainorlossisrecognizedintheincomestatement.Changesinvaluationfromthisinitialvaluationarerecognized
immediatelythroughtheincomestatement.
BPAnnualReportandForm20-F2010 193