BP 2011 Annual Report Download - page 218

216 BP Annual Report and Form 20-F 2011
Notes on financial statements
25. Investments in associates
The significant associates of the BP group are shown in Note 45. The principal associate is TNK-BP. Summarized financial information for the group’s
share of associates is set out below. Balance sheet information shown below excludes data relating to associates reclassified as assets held for sale as at
the end of the period. Income statement information shown below includes data relating to associates reclassified as assets held for sale for the period
up until their date of reclassification as held for sale.
$ million
2011 2010 2009
TNK-BP Other Total TNK-BP Other Total TNK-BP Other Total
Sales and other operating revenues 30,100 12,145 42,245 22,323 10,031 32,354 17,377 8,301 25,678
Profit before interest and taxation 5,992 958 6,950 3,866 1,215 5,081 3,178 811 3,989
Finance costs 132 13 145 128 22 150 220 19 239
Profit before taxation 5,860 945 6,805 3,738 1,193 4,931 2,958 792 3,750
Taxation 1,333 214 1,547 913 228 1,141 871 125 996
Minority interest 342 –342 208 –208 139 –139
Profit for the year 4,185 731 4,916 2,617 965 3,582 1,948 667 2,615
Non-current assets 16,172 3,865 20,037 14,686 4,024 18,710
Current assets 4,210 2,273 6,483 4,500 1,989 6,489
Total assets 20,382 6,138 26,520 19,186 6,013 25,199
Current liabilities 3,086 2,149 5,235 3,284 1,888 5,172
Non-current liabilities 6,416 1,744 8,160 5,283 1,914 7,197
Total liabilities 9,502 3,893 13,395 8,567 3,802 12,369
Minority interest 867 –867 624 –624
10,013 2,245 12,258 9,995 2,211 12,206
Group investment in associates
Group share of net assets (as above) 10,013 2,245 12,258 9,995 2,211 12,206
Loans made by group companies to associates –1,033 1,033 –1,129 1,129
10,013 3,278 13,291 9,995 3,340 13,335
Transactions between the group and its associates are summarized below.
$ million
Sales to associates 2011 2010 2009
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, employee services 3,855 393 3,561 330 2,801 320
$ million
Purchases from associates 2011 2010 2009
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 8,159 815 4,889 633 5,110 614
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.
The amounts receivable and payable at 31 December 2011, as shown in the table above, exclude $220 million (2010 $299 million) due from and
due to an intermediate associate which provides funding for our associate The Baku-Tbilisi-Ceyhan Pipeline Company. These balances are expected to be
settled in cash throughout the period to 2015.
Dividends receivable at 31 December 2011 of $38 million (2010 $39 million) are also excluded from the table above.
BP has commitments amounting to $1,477 million (2010 $310 million) in relation to contracts with its associates for the purchase of crude oil and
oil products, transportation and storage. See Note 44 for further information on capital commitments relating to BP’s investments in associates.
On 18 October 2010, BP announced that it had reached agreement to sell assets in Vietnam, together with its upstream businesses and
associated interests in Venezuela, to TNK-BP which is an associate and therefore a related party of the group. This transaction is part of the group’s
disposal programme and is the result of normal commercial negotiations. As at 31 December 2010, a deposit of $1 billion had been received from
TNK-BP in advance of completion of this transaction and was reported within finance debt on the group balance sheet. This deposit was not reflected
in the amount payable in the table above. The sale of the Venezuelan business and the sale of the upstream and certain midstream assets in Vietnam
completed during 2011. Additional disposal proceeds of $0.7 billion were received upon completion of these transactions. The sale of the group’s
remaining equity-accounted investment in the Phu My 3 plant facility in Vietnam is expected to complete in 2012. See Note 4 for further information.
A deposit of $30 million relating to the disposal of the Phu My 3 plant facility remains reported within finance debt on the group balance sheet at
31 December 2011.
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