BP 2005 Annual Report Download - page 81

36 Financial instruments (UK GAAP) continued
MATURITY PROFILE OF FINANCIAL LIABILITIES
The profile of the maturity of the financial liabilities included in the group’s balance sheet at 31 December is shown in the table below.
$ million
2004 2003
Other Other
Finance financial Finance financial
debt liabilities Total debt liabilities Total
Due within
1 year 10,184 5,152 15,336 9,456 4,857 14,313
1 to 2 years 3,046 2,640 5,686 2,702 1,617 4,319
2 to 5 years 6,105 810 6,915 5,105 2,034 7,139
Thereafter 3,756 1,603 5,359 5,062 2,042 7,104
23,091 10,205 33,296 22,325 10,550 32,875
INTEREST RATE AND CURRENCY OF FINANCIAL LIABILITIES
The interest rate and currency profile of the financial liabilities of the group at 31 December, after taking into account the effect of interest rate
swaps, currency swaps and forward contracts, is set out below.
Fixed rate Floating rate Interest free
Weighted
Weighted average Weighted Weighted
average time for average average
interest which rate interest time until
rate is fixed Amount rate Amount maturity Amount Total
% Years $ million % $ million Years $ million $ million
2004
Finance debt
US dollar 7 11 707 3 21,789 – – 22,496
Sterling – – – 5 96 – – 96
Other currencies 9 15 167 4 332 – – 499
874 22,217 – 23,091
Other financial liabilities
US dollar 3 2 1,522 5 573 4 6,561 8,656
Sterling –––––4 716716
Other currencies 4 4 15 2 46 4 772 833
1,537 619 8,049 10,205
To t al 2,411 22,836 8,049 33,296
2003
Finance debt
US dollar 8 14 578 2 20,991 – – 21,569
Sterling – – – 4 107 – – 107
Other currencies 9 15 141 3 508 – – 649
719 21,606 22,325
Other financial liabilities
US dollar 3 3 2,899 6 242 4 5,552 8,693
Sterling –––––5 716716
Other currencies 5 4 303 – – 6 838 1,141
3,202 242 7,106 10,550
To t al 3,921 21,848 7,106 32,875
$ million
2004 2003
Analysis of the above financial liabilities by balance sheet caption
Current liabilities
Finance debt 10,184 9,456
Derivative financial instruments 5,074 4,145
Provisions 78 214
Non-current liabilities
Other payables 3,581 4,630
Derivative financial instruments 158 344
Finance debt 12,907 12,869
Provisions 1,314 1,217
33,296 32,875
The other financial liabilities comprise various accruals, sundry creditors and provisions relating to the group’s normal commercial operations, with
payment dates spread over a number of years.
The proportion of floating rate debt at 31 December 2004 was 96% of total finance debt outstanding. Aside from debt issued in the US
municipal bond markets, interest rates on floating rate debt denominated in US dollars are linked principally to London Inter-Bank Offer Rate
(LIBOR), while rates on debt in other currencies are based on local market equivalents. The group monitors interest rate risk using a process
of sensitivity analysis. Assuming no changes to the finance debt and hedges described above, it is estimated that a change of 1% in the general
level of interest rates on 1 January 2005 would change 2005 profit before tax by approximately $215 million.
BP Annual Report and Accounts 2005 79