BP 2012 Annual Report Download - page 37

Business review: BP in more depth
Business review: BP in more depth
BP Annual Report and Form 20-F 2012
35
Selected financial information – continued
$ million except per share amounts
2012 2011 2010 2009 2008
Per ordinary share – cents
Profit (loss) for the year attributable to BP shareholders
Basic 60.86 135.93 (19.81) 88.49 112.59
Diluted 60.45 13 4.29 (19.81) 87.54 111.56
Replacement cost profit (loss) for the year attributable to BP shareholders 63.02 126.41 (26.17) 74.49 136.20
Underlying replacement cost profit for the year attributable to BP shareholders 92.68 114.55 109.23 77.81 139.66
Dividends paid per share – cents 33.00 28.00 14.00 56.00 55.05
Dividends paid per share – pence 20.852 17.404 8.679 36.417 29.387
Capital expenditure and acquisitionsa24,342 31,518 23,016 20,309 30,700
Acquisitions and asset exchanges 200 11,283 3,406 308 2,514
Organic capital expenditureb23,088 19,139 18,218 20,001 21,697
Balance sheet data (at 31 December)
Total assets 300,193 293,068 272,262 235,968 228,238
Net assets 119,620 112,482 95,891 102,113 92,109
Share capital 5,261 5,224 5,183 5,179 5,176
BP shareholders’ equity 118,414 111,465 94,987 101,613 91,303
Finance debt due after more than one year 38,767 35,169 30,710 25,518 17,464
Net debt to net debt plus equityc18.7% 20.5% 21.2% 20.4% 21.4%
Ordinary share datad Shares million
Average number outstanding of 25 cent ordinary shares (undiluted) 19,028 18,905 18,786 18,732 18,790
Average number outstanding of 25 cent ordinary shares (diluted) 19,158 19,136 18,998 18,936 18,963
a Includes asset exchanges. All capital expenditure and acquisitions during the past five years have been financed from cash flow from operations, disposal proceeds and external financing.
b Organic capital expenditure excludes acquisitions and asset exchanges, and: in 2012, $1,054 million associated with deepening our US natural gas and North Sea asset bases; in 2011, $1,096 million
associated with deepening our US natural gas asset bases; in 2010, $900 million relating to the formation of a partnership with Value Creation Inc. to develop the Terre de Grace oil sands acreage and
$492 million for the purchase of additional interests in the Valhall and Hod fields in the North Sea; and, in 2008, $3,667 million in respect of our purchase of all Chesapeake Energy Corporation’s
interest in the Arkoma Basin Woodford Shale assets and the purchase of a 25% interest in Chesapeake’s Fayetteville Shale assets and $2,822 million relating to the formation of an integrated North
American oil sands business with Husky Energy Inc.
c Net debt and the ratio of net debt to net debt plus equity are not recognized GAAP measures. We believe that these measures provide useful information to investors. Further information on net debt
is given in Financial statements – Note 35 on page 234.
d The number of ordinary shares shown has been used to calculate per share amounts.
Profit or loss for the year
Profit attributable to BP shareholders for the year ended 31 December
2012 was $11,582 million. After adjusting for $411 million in respect of
inventory holding losses and their associated tax effect, replacement cost
(RC) profit attributable to BP shareholders in 2012 was $11,993 million.
After further adjusting for a net charge of $5,300 million for non-operating
items and adverse fair value accounting effects (relative to management’s
measure of performance) of $345 million, both net of tax, underlying RC
profit attributable to BP shareholders in 2012 was $17,638 million. RC
profit or loss for the group, underlying RC profit and fair value accounting
effects are non-GAAP measures, see footnote b on page 34 for further
information.
Non-operating items in 2012, on a pre-tax basis, mainly related to further
charges associated with the Gulf of Mexico oil spill (primarily the cost of
the agreement with the US government to settle all federal criminal
charges) and impairment charges, partially offset by gains on disposals.
More information on non-operating items, and fair value accounting
effects, can be found on page 37. See Gulf of Mexico oil spill on pages
59-62 and Financial statements – Note 2 on page 194 for further
information on the impact of the Gulf of Mexico oil spill on BP’s financial
results.
For the year ended 31 December 2011, profit attributable to BP
shareholders was $25,700 million, replacement cost profit attributable to
BP shareholders in 2011 was $23,900 million and underlying RC profit
attributable to BP shareholders in 2011 was $21,658 million. Inventory
holding gains and their associated tax effect were $1,800 million in 2011.
There was a net post-tax credit for non-operating items of $2,195 million,
which included a $3.7 billion pre-tax credit relating to the Gulf of Mexico
oil spill, and fair value accounting effects had a favourable impact, net of
tax, of $47 million.
Compared with 2011, underlying replacement cost profit in 2012 was
impacted by higher upstream costs (driven primarily by sector inflation),
lower production and realizations, the absence of equity-accounted
earnings from TNK-BP as of 22 October 2012 (when our investment was
reclassified as an asset held for sale, as required under IFRS), weak
petrochemicals margins and a significant reduction in the supply and
trading contribution. These factors were partially offset by an improved
refining environment, which we were able to capture as a result of strong
refinery operations.
For the year ended 31 December 2010, there was a loss attributable to BP
shareholders of $3,719 million, which included inventory holding gains,
net of tax, of $1,195 million leading to a replacement cost loss attributable
to BP shareholders of $4,914 million. After adjusting for a net charge for
non-operating items of $25,449 million and net favourable fair value
accounting effects of $13 million, both net of tax, underlying profit
attributable to BP shareholders in 2010 was $20,522 million. Non-
operating items in 2010 included a pre-tax charge relating to the Gulf of
Mexico oil spill of $40.9 billion.
Compared with 2010, in 2011 there were higher realizations, higher
earnings from equity-accounted entities, a higher refining margin
environment and a stronger supply and trading contribution, partly offset
by lower production volumes, rig standby costs in the Gulf of Mexico,
higher costs related to turnarounds, higher exploration write-offs, and
negative impacts of increased relative sweet crude prices in Europe and
Australia, primarily caused by the loss of Libya production and the
weather-related power outages in the US.
See Upstream on page 63, Downstream on page 72, TNK-BP on page 80
and Other businesses and corporate on page 82 for further information on
segment results.