BP 2014 Annual Report Download - page 19

How we deliver How we measure Strategy in action in 2014
Creating shareholder value by generating
sustainable free cash flow
Recordable injury
frequency, loss of primary
containment, greenhouse
gas emissions, tier 1
process safety events.
Reserves
replacement ratio.
Operating cash flow,
gearing, total shareholder
return, underlying
replacement cost profit
per ordinary share.
Production.
Major project delivery.
Refining availability.
We seek efficient ways to deliver projects on
time and on budget, from planning through to
day-to-day operations. Our wide-ranging project
experience makes us a valued partner and
enhances our ability to compete.
We benefit from our high-performing fuels,
lubricants, petrochemicals and biofuels
businesses. Through premium products,
powerful brands and supply and trading,
Downstream provides strong cash generation
for the group.
28
tier 1 process
safety events.
63%
reserves
replacement ratio.a
3.2
million barrels of oil
equivalent per day.a
7
major project start-ups
in Upstream.
94.9%
refining availability.
We prioritize the safety and reliability of our
operations to protect the welfare of our
workforce and the environment. This also helps
preserve value and secure our right to operate
around the world.
We target basins and prospects with the
greatest potential to create value, using our
leading subsurface capabilities. This allows us
to build a strong pipeline of future growth
opportunities.
We rigorously screen our investments and we work
to keep our annual capital expenditure within a set
range. Ongoing management of our portfolio helps
ensure focus on more value-driven propositions.
We balance funds between shareholder
distributions and investment for the future.
We are strengthening our portfolio of high-return
and longer-life assets – across deep water, giant
fields and gas value chains – to provide BP with
momentum for years to come.
Running reliably
Running operations safely
is Air BP’s first priority.
See page 40.
Increasing value
An alternative solution to
increase long-term value.
See page 21.
Unlocking hidden
resources
Using our advanced technology
and exploration experience
to access gas in Oman.
See page 27.
Extending the life of
the North Sea
Our latest discovery
demonstrates the basin’s
ongoing potential.
See page 28.
Committing to the
future
Increasing production in
the Gulf of Mexico.
See page 25.
Driving success
Our retail partnership with
Marks & Spencer is driving
sales growth.
See page 31.
Proven expertise
Our talented people help to drive our business
forward. They apply their diverse skills and
expertise to deliver complex projects across all
areas of our business.
Strong relationships
We aim to form enduring partnerships in the
countries in which we operate, building strong
relationships with governments, customers,
partners, suppliers and communities to create
mutual advantage. Co-operation helps unlock
resources found in challenging locations and
transforms them into products for our
customers.
Advanced technology
We develop and deploy technologies we
expect to make the greatest impact on our
businesses – from enhancing the safety and
reliability of our operations to creating
competitive advantage in energy discovery,
recovery, efficiency and products.
Creating shareholder value by generating
sustainabl
e
fr
ee
cash flow
★ Defined on page 252. BP Annual Report and Form 20-F 2014 15
Strategic reportStrategic report
$32.8bn
operating cash flow.
a On a combined basis of subsidiaries and equity-accounted entities.