quarter   quarter   quarter 
USD million                                                             2021      2020      2020 
Finance debt[(a)]                                                     66,123    72,664    69,117 
Fair value (asset) liability of hedges related to finance debt[(b)]   (1,134)   (2,612)   426 
                                                                      64,989    70,052    69,543 
Less: cash and cash equivalents                                       31,676    31,111    18,139 
Net debt                                                              33,313    38,941    51,404 
Total equity[(c)]                                                     90,586    85,568    90,480 
Gearing*                                                              26.9%     31.3%     36.2%   . (a) The fair value of finance debt at 31 March 2021 was USD67,775 million (31 March 2020 USD67,500 million).   . (b) Derivative financial instruments entered into for the purpose of managing interest rate and foreign currency

exchange risk associated with net debt with a fair value liability position of USD346 million (fourth quarter 2020

liability of USD236 million and first quarter 2020 liability of USD663 million) are not included in the calculation of

net debt shown above as hedge accounting is not applied for these instruments. . (c) Total equity in the first quarter 2021 and fourth quarter 2020 includes perpetual hybrid bonds issued in June

2020. As part of actively managing its debt portfolio, the group bought back finance debt with an outstanding aggregate principal amount of USD2.0 billion in January 2021 and a further USD1.9 billion equivalent of euro and sterling bonds in March 2021. Derivatives associated with non-USD debt bought back were also terminated. There was no significant impact on net debt or gearing as a result of these transactions. Note 9. Inventory valuation A provision of USD80 million was held against hydrocarbon inventories at 31 March 2021 (USD216 million at 31 December 2020 and USD3,596 million at 31 March 2020) to write them down to their net realizable value. As a result of the changes in strategic direction of the group and the evolution of the trading strategy set out in Note 1, from 1 January, certain inventory, totalling USD10.2 billion as at 31 March 2021, is now treated as trading inventory and is valued at fair value whereas the equivalent inventory was previously valued at the lower of cost or net realisable value in prior periods. Note 10. Statutory accounts The financial information shown in this publication, which was approved by the Board of Directors on 26 April 2021, is unaudited and does not constitute statutory financial statements. Audited financial information will be published in BP Annual Report and Form 20-F 2021. BP Annual Report and Form 20-F 2020 has been filed with the Registrar of Companies in England and Wales. The report of the auditor on those accounts was unqualified, did not include a reference to any matters to which the auditor drew attention by way of emphasis without qualifying the report and did not contain a statement under section 498(2) or section 498(3) of the UK Companies Act 2006. Top of page 26 Additional information Capital expenditure*[(a)] 


                                       First    Fourth   First 
                                       quarter  quarter  quarter 
USD million                              2021     2020     2020 
Capital expenditure 
Organic capital expenditure*           2,906    2,949    3,539 
Inorganic capital expenditure*[(b)]    892      542      322 
                                       3,798    3,491    3,861 
                                                 First    Fourth   First 
                                                 quarter  quarter  quarter 
USD million                                        2021     2020     2020 
Total capital expenditure by segment 
gas & low carbon energy[(b)]                     1,885    1,470    1,184 
oil production & operations                      1,319    1,133    1,960 
customers & products                             532      770      657 
other businesses & corporate                     62       118      60 
                                                 3,798    3,491    3,861 
Total capital expenditure by geographical area 
US                                               1,487    1,305    1,323 
Non-US                                           2,311    2,186    2,538 
                                                 3,798    3,491    3,861   . (a) Comparative information for 2020 has been restated to reflect the changes in reportable segments. For more

information see Note 1 Basis of preparation - Change in segmentation. . (b) Fourth quarter 2020 includes a USD500 million deposit in respect of the strategic partnership with Equinor and

first quarter 2021 includes the final payment of USD712 million. Top of page 27 Adjusting items*[(a)] 


                                                                    First    Fourth   First 
                                                                    quarter  quarter  quarter 
USD million                                                           2021     2020     2020 
gas & low carbon energy 
Gains on sale of businesses and fixed assets[(b)]                   1,034    -        - 
Impairment and losses on sale of businesses and fixed assets        (123)    (23)     (3) 
Environmental and other provisions                                  -        -        - 
Restructuring, integration and rationalization costs[(c)]           (8)      (87)     2 
Fair value accounting effects[(d)]                                  247      (677)    223 
Other                                                               10       (5)      1 
                                                                    1,160    (792)    223 
oil production & operations 
Gains on sale of businesses and fixed assets                        168      257      7 
Impairment and losses on sale of businesses and fixed assets[(e)]   (209)    (830)    (1,130) 
Environmental and other provisions                                  (65)     20       (13) 
Restructuring, integration and rationalization costs[(c)]           (4)      (125)    (6) 
Fair value accounting effects                                       -        -        - 
Other                                                               24       181      68 
                                                                    (86)     (497)    (1,074) 
customers & products 
Gains on sale of businesses and fixed assets[(f)]                   (97)     2,310    7 
Impairment and losses on sale of businesses and fixed assets        (43)     (313)    (5) 
Environmental and other provisions                                  -        (33)     - 
Restructuring, integration and rationalization costs[(c)]           (41)     (522)    - 
Fair value accounting effects[(d)]                                  459      (284)    (259) 
Other                                                               -        (39)     - 
                                                                    278      1,119    (257) 
Rosneft 
Other                                                               -        (41)     - 
                                                                    -        (41)     - 
other businesses & corporate 
Gains on sale of businesses and fixed assets                        -        190      2 
Impairment and losses on sale of businesses and fixed assets        (1)      (1)      - 
Environmental and other provisions                                  -        (122)    (23) 
Restructuring, integration and rationalization costs[(c)]           (25)     (57)     (13) 
Gulf of Mexico oil spill                                            (11)     (140)    (21) 
Fair value accounting effects[(d)]                                  (447)    450      - 
Other                                                               (24)     77       (79) 
                                                                    (508)    397      (134) 
Total before interest and taxation                                  844      186      (1,242) 
Finance costs[(g)(h)]                                               (148)    (191)    (122) 
Total before taxation                                               696      (5)      (1,364) 
Taxation credit (charge) on adjusting items                         12       648      310 
Taxation - impact of foreign exchange[(i)]                          (13)     67       (365) 
Total taxation on adjusting items                                   (1)      715      (55) 
Total after taxation for period                                     695      710      (1,419)   . (a) Prior to 2021 adjusting items were reported under two different headings - non-operating items and fair value

accounting effects. Comparative information for 2020 has been restated to reflect the changes in reportable

segments. For more information see Note 1 Basis of preparation - Change in segmentation. . (b) First quarter 2021 relates to a gain from the divestment of a 20% stake in Oman Block 61. . (c) First quarter 2021 and fourth quarter 2020 include recognized provisions for restructuring costs associated

with the reinvent programme that was formalized in 2020. . (d) For further information, including the nature of fair value accounting effects reported in each segment, see

page 34. . (e) Fourth quarter 2020 includes USD156 million in relation to the likely disposal of an exploration asset. . (f) Fourth quarter 2020 includes a gain of USD2.3 billion on the sale of our petrochemicals business. . (g) All periods presented include the unwinding of discounting effects relating to Gulf of Mexico oil spill

payables. First quarter 2021 and fourth quarter 2020 also include the income statement impact associated with the

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