BP 2013 Annual Report Download - page 62

BP Annual Report and Form 20-F 201358
Net cash used in financing activities was $10,400 million in 2013 (2012
$2,010 million and 2011 $477 million net cash provided by financing
activities). The increase in net cash used in 2013 primarily reflected the
buyback of shares of $5.5 billion as part of our $8-billion share repurchase
programme, lower net proceeds of $1,055 million from long-term financing
and an increase in the net repayment of short-term debt of $1,353 million.
The increase in net cash used in 2012 primarily reflected a net decrease in
short-term debt of $2,888 million and an increase in dividends paid of
$1,222 million, partly offset by an increase in net proceeds from long-term
financing of $1,412 million.
During the period 2011 to 2013, our total sources of cash amounted to
$101 billion, and our total uses of cash amounted to $106 billion. The
increase in cash and cash equivalents held of $4 billion was financed by an
increase in finance debt of $9 billion over the three-year period. During this
period, the price of Brent crude oil has averaged $110.53 per barrel.
Sources and uses of cash over the three-year period as a whole, are
analysed in the table below.
$ billion
Sources of cash:
Net cash provided by operating activities 64
Disposals 37
101
Uses of cash:
Capital expenditure 74
Acquisitions 11
Net repurchase of shares 5
Dividends paid to BP shareholders 15
Dividends paid to non-controlling interests 1
106
Net use of cash (5)
Increase in finance debt 9
Increase in cash and cash equivalents 4
Disposal proceeds received in cash during the three-year period exceeded
cash used for acquisitions, as a result in particular of our ongoing disposal
programme started in 2010 and the disposal of our interest in TNK-BP in
2013. Net investment (capital expenditure and acquisitions less disposal
proceeds) during this period averaged $16 billion per year. Dividends paid
to BP shareholders totalled $15 billion during the three-year period. In the
past three years, $4 billion has been contributed to funded pension plans.
This is reflected in net cash provided by operating activities in the table
above.
Acquisitions and disposals
There were no significant acquisitions in 2013 and 2012.
In 2011, we acquired a 30% interest in each of 21 oil and gas production-
sharing agreements operated by Reliance Industries Limited in India for
$7.0 billion. We also completed the purchase, for $3.6 billion, of 10
exploration and production blocks in Brazil, which was the final part of a
$7-billion transaction with Devon Energy that had been announced in
March 2010.
During 2013 BP completed sale and purchase agreements for the sale of
BP’s 50% interest in TNK-BP to Rosneft, and for BP’s further investment in
Rosneft. For more information on this transaction see Financial statements
– Note 6.
Total cash disposal proceeds received during 2013 were $22 billion. This
included $16.7 billion for the disposal of BP’s interest in TNK-BP, $1.4
billion for the disposal of our Texas City refinery and a portion of its retail
and logistics network in the south-eastern US to Marathon Petroleum
Corporation and $2.2 billion for the sale of the Carson refinery in California,
and related assets in the region to Tesoro Corporation. We also completed
the sale of our interests in a number of central North Sea oil and gas fields
to TAQA.
Total disposal proceeds received during 2012 were $11.6 billion. This
included $5.55 billion for the disposal of BP’s interests in the Marlin hub,
Horn Mountain, Holstein, Ram Powell and Diana Hoover fields in the Gulf
of Mexico, $1.5 billion for the sale of the Canadian natural gas liquids (NGL)
business to Plains Midstream Canada ULC and $1.025 billion for the sale of
BP’s interest in the Jonah and Pinedale upstream operations in Wyoming,
to LINN Energy, LLC.
Total disposal proceeds received during 2011, after the repayment of
the disposal deposit relating to Pan American Energy LLC (PAE), were
$2.8 billion.
See Financial statements – Note 3 and Note 4 for further details
of business combinations and non-current assets held for sale.
The Strategic report was approved by the board and signed on its behalf by
David J Jackson, Company Secretary on 6 March 2014.