BP 2011 Annual Report Download - page 58

56 BP Annual Report and Form 20-F 2011
Business review
Financial review
Selected financial informationa
$ million except per share amounts
2011 2010 2009 2008 2007
Income statement data
Sales and other operating revenues 375,517 297,107 239,272 361,143 284,365
Replacement cost profit (loss) before interest and taxb
By business
Exploration and Production 30,500 30,886 24,800 38,308 27,602
Refining and Marketing 5,474 5,555 743 4,176 2,621
Other businesses and corporate (2,478) (1,516) (2,322) (1,223) (1,209)
Gulf of Mexico oil spill responsec3,800 (40,858) – – –
Consolidation adjustment (113) 447 (717) 466 (220)
Replacement cost profit (loss) before interest and taxationb37,183 (5,486) 22,504 41,727 28,794
Inventory holding gains (losses) 2,634 1,784 3,922 (6,488) 3,558
Profit (loss) before interest and taxation 39,817 (3,702) 26,426 35,239 32,352
Finance costs and net finance expense/income relating to pensions and other
post-retirement benefits
(983)
(1,123) (1,302) (956) (741)
Taxation (12,737) 1,501 (8,365) (12,617) (10,442)
Profit (loss) for the year 26,097 (3,324) 16,759 21,666 21,169
Profit (loss) for the year attributable to BP shareholders 25,700 (3,719) 16,578 21,157 20,845
Inventory holding (gains) losses, net of tax (1,800) (1,195) (2,623) 4,436 (2,475)
Replacement cost profit (loss) for the year attributable to BP shareholdersb23,900 (4,914) 13,955 25,593 18,370
Per ordinary share – cents
Profit (loss) for the year attributable to BP shareholders
Basic 135.93 (19.81) 88.49 112.59 108.76
Diluted 134.29 (19.81) 87.54 111.56 107.84
Replacement cost profit (loss) for the year attributable to BP shareholdersb (basic) 126.41 (26.17) 74.49 136.20 95.85
Dividends paid per share – cents 28.00 14.00 56.00 55.05 42.30
– pence 17.4035 8.679 36.417 29.387 20.995
Capital expenditure and acquisitionsd31,518 23,016 20,309 30,700 20,641
Capital expenditure, excluding acquisitions and asset exchangese20,235 19,610 20,001 28,186 19,194
Ordinary share dataf
Average number outstanding of 25 cent ordinary shares (shares million undiluted) 18,905 18,786 18,732 18,790 19,163
Average number outstanding of 25 cent ordinary shares (shares million diluted) 19,136 18,998 18,936 18,963 19,327
Balance sheet data (at 31 December)
Total assets 293,068 272,262 235,968 228,238 236,076
Net assets 112,482 95,891 102,113 92,109 94,652
Share capital 5,224 5,183 5,179 5,176 5,237
BP shareholders’ equity 111,465 94,987 101,613 91,303 93,690
Finance debt due after more than one year 35,169 30,710 25,518 17,464 15,651
Net debt to net debt plus equityg20.5% 21.2% 20.4% 21.4% 22.1%
a
This information, insofar as it relates to 2011, has been extracted or derived from the audited consolidated financial statements of the BP group presented on pages 173-258. Note 1 to the financial
statements includes details on the basis of preparation of these financial statements. The selected information should be read in conjunction with the audited financial statements and related notes
elsewhere herein.
b
Replacement cost profit or loss reflects the replacement cost of supplies. The replacement cost profit or loss for the year is arrived at by excluding from profit inventory holding gains and losses and
their associated tax effect. Replacement cost profit or loss for the group is not a recognized GAAP measure. The equivalent measure on an IFRS basis is ‘Profit (loss) for the year attributable to BP
shareholders’. Further information on inventory holding gains and losses is provided on page 110.
c
Under IFRS these costs are presented as a reconciling item between the sum of the results of the reportable segments and the group results.
d
All capital expenditure and acquisitions during the past five years have been financed from cash flow from operations, disposal proceeds and external financing. 2008 included capital expenditure of
$2,822 million and an asset exchange of $1,909 million, both in respect of our transaction with Husky Energy Inc., as well as capital expenditure of $3,667 million in respect of our purchase of all of
Chesapeake Energy Corporation’s interest in the Arkoma Basin Woodford shale assets and the purchase of a 25% interest in Chesapeake’s Fayetteville shale assets. 2007 included $1,132 million for the
acquisition of Chevron’s Netherlands manufacturing company.
e
2011 included $1,096 million associated with deepening our natural gas asset base. 2010 included capital expenditure of $900 million relating to the formation of a partnership with Value Creation Inc.
f
The number of ordinary shares shown has been used to calculate per share amounts.
g
Net debt and the ratio of net debt to net debt plus equity are non-GAAP measures. We believe that these measures provide useful information to investors. Further information on net debt is given in
Financial statements – Note 35 on page 230.
Profit or loss for the year
Profit attributable to BP shareholders for the year ended 31 December
2011 was $25,700 million and included inventory holding gainsa, net of
tax, of $1,800 million and a net credit for non-operating items, after tax, of
$2,195 million. In addition, fair value accounting effects had a favourable
impact, net of tax, of $47 million relative to management’s measure of
performance. Non-operating items in 2011 included a $3.7 billion pre-tax
credit relating to the Gulf of Mexico oil spill. More information on non-
operating items and fair value accounting effects can be found on page 58.
See Gulf of Mexico oil spill on page 76 and in Financial statements – Note 2
on page 190 for further information on the impact of the Gulf of Mexico oil
spill on BP’s financial results.
Loss attributable to BP shareholders for the year ended 31 December 2010
included inventory holding gains, net of tax, of $1,195 million and a net charge
for non-operating items, after tax, of $25,449 million. In addition, fair value
accounting effects had a favourable impact, net of tax, of $13 million relative
to management’s measure of performance. Non-operating items in 2010
included a $40.9 billion pre-tax charge relating to the Gulf of Mexico oil spill.
Profit attributable to BP shareholders for the year ended
31 December 2009 included inventory holding gains, net of tax, of
$2,623 million and a net charge for non-operating items, after tax, of
$1,067 million. In addition, fair value accounting effects had a favourable
impact, net of tax, of $445 million relative to management’s measure of
performance.