BP 2015 Annual Report Download - page 142

16. Investments in associates – continued
Summarized financial information for the group’s share of associates is shown below.
$ million
BP share
2015 2014 2013
RosneftaOther Total RosneftaOther Total Rosneft Other Total
Sales and other operating revenues 16,604 6,000 22,604 28,214 9,724 37,938 24,266 12,998 37,264
Profit before interest and taxation 2,420 661 3,081 3,825 938 4,763 2,786 908 3,694
Finance costs 730 6 736 1,033 7 1,040 264 11 275
Profit before taxation 1,690 655 2,345 2,792 931 3,723 2,522 897 3,419
Taxation 354 146 500 677 230 907 422 213 635
Non-controlling interests 6– 614 – 14 42 – 42
Profit for the year 1,330 509 1,839 2,101 701 2,802 2,058 684 2,742
Other comprehensive income (812) (2) (814) (2,575) 10 (2,565) (87) 2 (85)
Total comprehensive income 518 507 1,025 (474) 711 237 1,971 686 2,657
Non-current assets 16,726 3,914 20,640 19,962 2,975 22,937
Current assets 6,891 1,621 8,512 7,560 2,199 9,759
Total assets 23,617 5,535 29,152 27,522 5,174 32,696
Current liabilities 5,074 1,134 6,208 7,189 1,614 8,803
Non-current liabilities 12,552 1,311 13,863 12,890 921 13,811
Total liabilities 17,626 2,445 20,071 20,079 2,535 22,614
Net assets 5,991 3,090 9,081 7,443 2,639 10,082
Less: non-controlling interests 194 – 194 131 – 131
5,797 3,090 8,887 7,312 2,639 9,951
Group investment in associates
Group share of net assets (as above) 5,797 3,090 8,887 7,312 2,639 9,951
Loans made by group companies to
associates – 535 535 – 452 452
5,797 3,625 9,422 7,312 3,091 10,403
aFrom 1 October 2014, Rosneft adopted hedge accounting in relation to a portion of highly probable future export revenue denominated in US dollars over a five-year period. Foreign exchange gains and
losses arising on the retranslation of borrowings denominated in currencies other than the Russian rouble and designated as hedging instruments are recognized initially in other comprehensive
income, and are reclassified to the income statement as the hedged revenue is recognized.
Transactions between the group and its associates are summarized below.
$ million
Sales to associates 2015 2014 2013
Product Sales
Amount
receivable at
31 December Sales
Amount
receivable at
31 December Sales
Amount
receivable at
31 December
LNG, crude oil and oil products, natural gas 5,302 1,058 9,589 1,258 5,170 783
$ million
Purchases from associates 2015 2014 2013
Product Purchases
Amount
payable at
31 December Purchases
Amount
payable at
31 December Purchases
Amount
payable at
31 December
Crude oil and oil products, natural gas, transportation tariff 11,619 2,026 22,703 2,307 21,205 3,470
In addition to the transactions shown in the table above, in 2015 the group acquired a 20% participatory interest in Taas-Yuryakh Neftegazodobycha, a
Rosneft subsidiary.
The terms of the outstanding balances receivable from associates are typically 30 to 45 days. The balances are unsecured and will be settled in cash.
There are no significant provisions for doubtful debts relating to these balances and no significant expense recognized in the income statement in
respect of bad or doubtful debts. Dividends receivable are not included in the table above.
The majority of the sales to and purchases from associates relate to crude oil and oil products transactions with Rosneft.
BP has commitments amounting to $11,446 million (2014 $6,946 million), primarily in relation to contracts with its associates for the purchase of
transportation capacity.
138 BP Annual Report and Form 20-F 2015