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Our performance
Key statistics
$million
2010 2009 2008
Salesandotheroperatingrevenuesa266,751 213,050 320,039
Replacementcostprotbefore
interestandtaxb5,555 743 4,176
Capitalexpenditureandacquisitions 4,029 4,114 6,634
thousandbarrelsperday
Totalrenerythroughputs 2,426 2,287 2,155
Reningavailabilityc95.0% 93.6% 88.8%
thousandtonnes
Totalpetrochemicalsproductiond15,594 12,660 12,835
$perbarrel
Globalindicatorreningmargin(GIM)e
USWestCoast 6.16 5.88 7.42
USGulfCoast 4.96 4.63 6.78
USMidwest 5.19 5.43 5.17
NorthwestEurope 3.80 3.26 6.72
Mediterranean 3.29 2.11 6.00
Singapore 1.63 0.21 6.30
BPAverageGIM 4.44 4.00 6.50
a Includessalesbetweenbusinesses.
b Includesprotafterinterestandtaxofequity-accountedentities.
cR eningavailabilityrepresentsSolomonAssociates’operationalavailability,whichisdenedasthe
percentageoftheyearthataunitisavailableforprocessingaftersubtractingtheannualizedtime
lostduetoturnaroundactivityandallplannedmechanical,processandregulatorymaintenance
downtime.
d
Aminoramendmenthasbeenmadetocomparativeperiods.
eTheglobalindicatorreningmargin(GIM)istheaverageofregionalindustryindicatormargins
weightedforBP’scrudereningcapacityineachregion.Eachregionalindicatormarginisbased
onasinglerepresentativecrudewithproductyieldscharacteristicofthetypicallevelofupgrading
complexity.TheindicatormarginmaynotberepresentativeofthemarginsachievedbyBPinany
periodbecauseofBP’sparticularreningcongurationsandcrudeandproductslate.
2010performance
Safety and operational risk
Safety,bothprocessandpersonal,remainsourtoppriority.During2010,
personalsafetyinReningandMarketingasmeasuredbyincident
frequencieswasslightlyworsethan2009,andprocesssafetyasmeasured
byourseverity-weightedprocesssafetyincidentindeximprovedby25%.
Oneoftheprimarycontrolstomitigateorminimizesafetyand
operationalriskistheeffective,sustainedimplementationandembedding
ofouroperatingmanagementsystem(OMS).OMSalsocoversrobust
contractormanagementprocesses.AllofReningandMarketing’s
majoroperationshadtransitionedtoOMSbytheendof2010,withonly
oneregionallogisticsoperationcompletingtheprocessbytheendof
February2011.
Safetyperformanceismonitoredbyasuiteofinputandoutput
metricsthatfocusonprocessandpersonalsafetyincludingoperational
integrity,healthandallaspectsofcompliance.
During2010ReningandMarketinghadtwoworkforcefatalities.
InourRotterdamrenery,acontractorwasfatallyinjuredduringcivil
constructionworksandintheRhinefuelsvaluechaininGermany,a
contractortruckdriverwasfatallyinjuredinamultiplevehicleaccident.
Therecordableinjuryfrequency(RIF),whichmeasuresthenumber
ofrecordableinjuriestotheBPworkforceper200,000hoursworked,was
0.35.Thisisslightlyhigherthan2009whenitwas0.32,butsignicantly
lowerthanin2008whenitwas0.48.Seventy-sevenseverevehicle
accidentsoccurredinReningandMarketing’soperationsduring2010
(71in2009).
Intermsofoperationalintegrity,thenumberoflossesofprimary
containment(LOPC),whichmeasuresunplannedoruncontrolledreleases
ofmaterialfromprimarycontainment,was12%higherin2010thanin
2009,howeverthiswasstillover20%lowerthanin2008.Theprocess
safetyincidentindex(PSII),whichisaweightedindextoreectboththe
numberandseverityofeventsper200,000hoursworked,fellfrom0.48
in2009to0.36in2010.Theaverageseverityoftheprocesssafety-related
LOPCeventshasreducedrelativeto2009.
Thenumberofoilspillsgreaterthanonebarrelincreasedin2010(132)
comparedwith2009(113),althoughthiswasstillsignicantlylowerboth
innumberandvolumethanfor2008.
InourUSreneries,wecontinuedtoimplementthe
recommendationsoftheBPUSReneriesIndependentSafetyReview
Panelandregulatorybodiesandhavemadesignicantprogressin2010.
SeeCorporateresponsibility,Safetysectiononpage68forfurther
informationonprogress.
Toenhancefurtherthefocusonsafetyduring2010,Reningand
Marketingestablishedasegmentoperationalriskcommitteethatmeetson
aquarterlybasis,chairedbythesegmentchiefexecutive.Thiscommittee
reviewscriticalrisks,conductsanin-depthreviewofprocesssafetyand
alsoaimstoensureappropriateriskmanagementandmitigatingactions
areinplaceandprioritized.
Financial and Operating performance
Our2010performancecontinuedtobenetfromthefundamental
improvementswehavebeenmakingacrossthebusiness,including
improvedavailabilitywithinourreningsystem,theefciencyofour
operationsandgrowingmarginshareinourmarketingbusinesses.
Replacementcostprotbeforeinterestandtaxfortheyearended
31December2010was$5,555million,comparedwith$743millionforthe
previousyear.2010includedanetgainfornon-operatingitemsof
$630million,mainlyrelatingtogainsondisposalpartlyoffsetby
restructuringcharges.(See page 25 for further information on non-
operating items.)Inaddition,fairvalueaccountingeffectshadafavourable
impactof$42millionrelativetomanagement’smeasureofperformance.
(See page 26 for further information on fair value accounting effects.)
Theprimaryadditionalfactorscontributingtotheincreasein
replacementcostprotbeforeinterestandtaxwereimprovedoperational
performanceinthefuelsvaluechains,continuedstrongoperational
performanceintheinternationalbusinessesandfurthercostefciencies,
aswellasamorefavourablereningenvironment.Againstthisverygood
operationaldelivery,theresultswereimpactedbyasignicantlylower
contributionfromsupplyandtradingcomparedwith2009.
Salesandotheroperatingrevenuesfor2010,analysedinthetable
below,were$267billioncomparedwith$213billionin2009.Thisincrease
wasprimarilyduetoincreasingprices.Thedecreasein2009compared
with2008primarilyreectedadecreaseinprices.
$million
2010 2009 2008
Saleofcrudeoilthroughspotand
termcontracts 44,290 35,625 54,901
Marketing,spotandtermsales
ofrenedproducts 209,221 166,088 248,561
Othersalesandoperatingrevenues 13,240 11,337 16,577
266,751 213,050 320,039
Thefollowingtablessetoutoilsalesvolumesbytypeforthepastthree
yearsandgivefurtherdetailsofrenedproductmarketingsalesby
producttype:
thousandbarrelsperday
Renedproducts 2010 2009 2008
US 1,433 1,426 1,460
Europe 1,402 1,504 1,566
RestofWorld 610 630 685
Totalmarketingsalesa3,445 3,560 3,711
Trading/supplysalesb2,482 2,327 1,987
Totalrenedproductsales 5,927 5,887 5,698
Crudeoilc 1,658 1,824 1,689
Totaloilsales 7,585 7,711 7,387
aMark etingsalesaresalestoservicestations,end-consumers,bulkbuyersandjobbers(i.e.third
partieswhoownnetworksofanumberofservicestationsandsmallresellers).
bT
rading/supplysalesaresalestolargeunbrandedresellersandotheroilcompanies.
c113 thousandbarrelsperdayofthecrudevolumesrelatestorevenuesreportedbyExploration
andProduction.
56BPAnnualReportandForm20-F2010