BP 2015 Annual Report Download - page 141

16. Investments in associates – continued
Since 21 March 2013, BP has owned 19.75% of the voting shares of Rosneft. Rosneft shares are listed on the MICEX stock exchange in Moscow and
its global depository receipts are listed on the London Stock Exchange. The Russian federal government, through its investment company OJSC
Rosneftegaz, owned 69.5% of the voting shares of Rosneft at 31 December 2015.
BP classifies its investment in Rosneft as an associate because, in management’s judgement, BP has significant influence over Rosneft; see Note 1 –
Interests in other entities – Significant estimate or judgement: accounting for interests in other entities. The group’s investment in Rosneft is a foreign
operation whose functional currency is the Russian rouble. The reduction in the group’s equity-accounted investment balance for Rosneft at
31 December 2015 compared with 31 December 2014 was principally due to the weakening of the rouble compared to the US dollar, the effects of
which have been recognized in other comprehensive income.
The value of BP’s 19.75% shareholding in Rosneft based on the quoted market share price of $3.48 per share (2014 $3.51 per share) was
$7,283 million at 31 December 2015 (2014 $7,346 million).
The following table provides summarized financial information relating to Rosneft. This information is presented on a 100% basis and reflects
adjustments made by BP to Rosneft’s own results in applying the equity method of accounting. BP adjusts Rosneft’s results for the accounting
required under IFRS relating to BP’s purchase of its interest in Rosneft and the amortization of the deferred gain relating to the disposal of BP’s interest
in TNK-BP. These adjustments have increased the reported profit for 2015, as shown in the table below, compared with the equivalent amount in
Russian roubles that we expect Rosneft to report in its own financial statements under IFRS.
$ million
Gross amount
2015 2014 2013
Sales and other operating revenues 84,071 142,856 122,866
Profit before interest and taxation 12,253 19,367 14,106
Finance costs 3,696 5,230 1,337
Profit before taxation 8,557 14,137 12,769
Taxation 1,792 3,428 2,137
Non-controlling interests 30 71 213
Profit for the year 6,735 10,638 10,419
Other comprehensive income (4,111) (13,038) (441)
Total comprehensive income 2,624 (2,400) 9,978
Non-current assets 84,689 101,073
Current assets 34,891 38,278
Total assets 119,580 139,351
Current liabilities 25,691 36,400
Non-current liabilities 63,554 65,266
Total liabilities 89,245 101,666
Net assets 30,335 37,685
Less: non-controlling interests 982 663
29,353 37,022
The group received dividends, net of withholding tax, of $271 million from Rosneft in 2015 (2014 dividends of $693 million and 2013 dividends of
$456 million).
BP Annual Report and Form 20-F 2015 137
Financial statements