BP 2006 Annual Report Download - page 55

Gas, Power and Renewables
$million
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2006 2005 2004
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Sales and other operating revenues from continuing operations 23,708 25,696 23,969
Profit before interest and tax from continuing operationsa1,321 1,172 1,003
aIncludes profit after interest and tax of equity-accounted entities.
The changes in sales and other operating revenues are explained in more detail below.
$million
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2006 2005 2004
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gas marketing sales 11,428 15,222 13,532
Other sales (including NGLs marketing) 12,280 10,474 10,437
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
23,708 25,696 23,969
mmcf/d
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2006 2005 2004
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Gas marketing sales volumes 3,685 5,096 5,244
Natural gas sales by Exploration and Production 5,152 4,747 3,670
Sales and other operating revenues for 2006 was $24 billion, compared
with $26 billion in 2005. Gas marketing sales declined by $3.8 billion,
reflecting a decrease of $4.2 billion related to lower volumes, partially
offset by an increase of $0.4 billion related to higher prices. Other sales
(including NGLs marketing) increased by $1.8 billion due to higher prices.
Sales and other operating revenues were $26 billion in 2005, compared
with $24 billion in 2004. Gas marketing sales increased by $1.7 billion
as price increases of $2.1 billion more than offset lower volumes of
$0.4 billion. Other sales (including NGLs marketing) remained flat,
reflecting $0.1 billion related to higher prices and $0.1 billion to lower
volumes. Gas marketing sales volumes declined in 2005 and 2006
primarily due to customer portfolio changes and, in 2005, production loss
caused by hurricanes in the Gulf of Mexico.
Profit before interest and tax for the year ended 31 December 2006
was $1,321 million, including net gains of $193 million, primarily on the
disposal of our interest in Enagas, and net fair value gains of $88 million
on embedded derivatives, and was after inventory holding losses of $55
million and a charge $100 million for the impairment of a North American
NGLs asset.
Profit before interest and tax for the year ended 31 December 2005
was $1,172 million, including inventory holding gains of $95 million,
compensation of $265 million received on the cancellation of an
intra-group gas supply contract and net gains of $55 million primarily on
the disposal of BP’s interest in the Interconnector pipeline and a power
plant in the UK, and was after net fair value losses of $346 million on
embedded derivatives and a credit of $6 million related to new, and
revisions to existing, environmental and other provisions.
Profit before interest and tax for the year ended 31 December 2004
was $1,003 million, including inventory holding gains of $39 million and
a net gain on disposal of $56 million.
The primary additional factors reflected in profit before interest and tax
for the year ended 31 December 2006, compared with the equivalent
period in 2005, were higher contributions from the operating businesses
of around $160 million partially offset by higher IFRS fair value accounting
charges reducing the result by around $60 million.
The primary additional factors reflected in profit before interest and tax
for the year ended 31 December 2005, compared with the equivalent
period in 2004 were higher contributions from the operating businesses
of around $170 million.
Other businesses and corporate
$million
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
2006 2005 2004
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Sales and other operating revenues from continuing operations 1,009 668 546
Profit (loss) before interest and tax from continuing operationsa(885) (1,237) 155
aIncludes profit after interest and tax of equity-accounted entities.
Other businesses and corporate comprises Finance, the group’s
aluminium asset, its investments in PetroChina and Sinopec (both
divested in early 2004), interest income and costs relating to corporate
activities worldwide. Following the sale of Innovene to INEOS in 2005,
three equity-accounted entities (Shanghai SECCO Petrochemical
Company Limited in China and Polyethylene Malaysia Sdn Bhd and
Ethylene Malaysia Sdn Bhd, both in Malaysia) previously reported in
Other businesses and corporate were transferred to Refining and
Marketing, effective 1 January 2006.
The loss before interest and tax for the year ended 31 December 2006
was $885 million, including inventory holding gains of $62 million, a credit
of $94 million in relation to new, and revisions to existing, environmental
and other provisions, a net gain on disposal of $95 million and a net fair
value gain of $5 million on embedded derivatives, and was after a charge
of $200 million relating to the reassessment of certain provisions and an
impairment charge of $69 million.
The loss before interest and tax for the year ended 31 December 2005
was $1,237 million, including a net gain on disposal of $38 million, and
was after a net charge of $278 million relating to new, and revisions to
existing, environmental and other provisions and the reversal of
environmental provisions no longer required, a charge of $134 million in
respect of the separation of the Olefins and Derivatives business and net
fair value losses of $13 million on embedded derivatives.
The profit before interest and tax for the year ended 31 December
2004 was $155 million, including net gains on disposals of $949 million,
primarily related to the sale of our interests in PetroChina and Sinopec,
and a credit of $66 million primarily resulting from the reversal of vacant
space provisions in the UK and the US, and was after a charge of $283
million related to new, and revisions to existing, environmental and other
provisions, and a charge of $102 million relating to the separation of the
Olefins and the Derivatives business.
BP Annual Report and Accounts 2006 53