BP PLC
Adjusted EBITDA - by business
customers - convenience & mobility 982 1,006 975
Castrol - included in customers 373 304 205
products - refining & trading 419 (167) 578
petrochemicals - 35 115
1,401 874 1,668 Top of page 31 Reconciliation of customers & products RC profit before interest and tax* to convenience gross margin at constant foreign exchange
First First
quarter quarter
USD million 2021 2020
RC profit before interest and tax for customers & products 934 664
Less RC profit before interest and tax for refining & trading and petrochemicals 348 (20)
RC profit before interest and tax for customers - convenience & mobility 586 684
Net (favourable) adverse impact of adjusting items 72 4
Underlying RC profit before interest and tax for customers - convenience & mobility 658 688
Less underlying RC profit (loss) for Castrol 334 167
Add back:
customers - convenience & mobility (excluding Castrol) depreciation, depletion and amortization 285 249
customers - convenience & mobility (excluding Castrol) production and manufacturing, distribution and
administration expenses and adjusted for aviation, B2B, midstream, retail fuels and next-gen gross
margin (194) (445)
Adjusted for earnings from equity-accounted entities in customers - convenience & mobility (excluding
Castrol) (69) (40)
Convenience gross margin 346 284
Foreign exchange effects - 24
Convenience gross margin at constant foreign exchange 346 308 Top of page 32 Realizations* and marker prices
First Fourth First
quarter quarter quarter
2021 2020 2020
Average realizations[(a)]
Liquids* (USD/bbl)
US 45.21 32.40 45.96
Europe 61.72 43.39 50.71
Rest of World 57.48 41.60 48.13
BP Average 53.20 38.42 47.47
Natural gas (USD/mcf)
US 3.45 1.76 1.28
Europe 6.89 5.37 3.23
Rest of World 3.94 3.37 3.51
BP Average 3.98 3.10 2.83
Total hydrocarbons* (USD/boe)
US 36.91 24.20 29.94
Europe 55.34 39.39 43.97
Rest of World 36.06 29.28 31.61
BP Average 37.75 28.48 31.80
Average oil marker prices (USD/bbl)
Brent 61.12 44.16 50.10
West Texas Intermediate 58.13 42.63 45.56
Western Canadian Select 46.12 31.57 28.71
Alaska North Slope 61.07 44.82 51.07
Mars 58.65 43.26 45.57
Urals (NWE - cif) 59.36 44.29 47.84
Average natural gas marker prices
Henry Hub gas price[(b)]^(USD/mmBtu) 2.71 2.67 1.95
UK Gas - National Balancing Point (p/therm) 49.82 40.46 24.81
. (a) Based on sales of consolidated subsidiaries only - this excludes equity-accounted entities. . (b) Henry Hub First of Month Index. Exchange rates
First Fourth First
quarter quarter quarter
2021 2020 2020
USD/GBP average rate for the period 1.38 1.32 1.28
USD/GBP period-end rate 1.37 1.36 1.24
USD/EUR average rate for the period 1.21 1.19 1.10
USD/EUR period-end rate 1.17 1.23 1.10
USD/AUD average rate for the period 0.77 0.73 0.66
USD/AUD period-end rate 0.76 0.77 0.62
Rouble/USD average rate for the period 74.41 76.16 66.75
Rouble/USD period-end rate 76.09 74.44 78.14 Top of page 33 Legal proceedings For a full discussion of the group's material legal proceedings, see pages 226-227 of bp Annual Report and Form 20-F 2020. Glossary Non-GAAP measures are provided for investors because they are closely tracked by management to evaluate bp's operating performance and to make financial, strategic and operating decisions. Non-GAAP measures are sometimes referred to as alternative performance measures. New metrics have been introduced in 2021 to provide transparency against key strategic value drivers. Adjusted EBITDA is a non-GAAP measure and is defined as underlying replacement cost (RC) profit* before interest and tax, add back depreciation, depletion and amortization and exploration write-offs (net of adjusting items). bp believes it is helpful to disclose adjusted EBITDA because it reflects how the segment measures underlying business delivery. The nearest equivalent measure on an IFRS basis for the segment is RC profit or loss before interest and tax. RC profit or loss before interest and tax is the measure of profit or loss that is required to be disclosed for each operating segment under IFRS. Adjusting items are items that bp discloses separately because it considers such disclosures to be meaningful and relevant to investors. They are items that management considers to be important to period-on-period analysis of the group's results and are disclosed in order to enable investors to better understand and evaluate the group's reported financial performance. Adjusting items include fair value accounting effects. Adjusting items within equity-accounted earnings are reported net of incremental income tax reported by the equity-accounted entity. An analysis of adjusting items by segment and type is shown on page 28. Prior to 2021 adjusting items were reported under two different headings - non-operating items and fair value accounting effects. Bioenergy production is average thousands of barrels of biofuel production per day during the period covered, net to bp. This includes equivalent ethanol production, bp Bunge biopower for grid export, biogas and refining co-processing and standalone hydrogenated vegetable oil (HVO). Capital expenditure is total cash capital expenditure as stated in the condensed group cash flow statement. Consolidation adjustment - UPII is unrealized profit in inventory arising on inter-segment transactions. Convenience gross margin is a non-GAAP measure. Convenience gross margin is RC profit before interest and tax for convenience & mobility, excluding adjusting items to derive underlying RC profit before interest and tax. convenience & mobility underlying RC profit before interest and tax is further adjusted by subtracting underlying RC profit before interest and tax for Castrol; adding-back depreciation, depletion and amortization, production and manufacturing, distribution and administration expenses for convenience and mobility (excluding Castrol); subtracting earnings from equity-accounted entities in convenience and mobility (excluding Castrol) and gross margin for retail fuels, next-gen, aviation, B2B and midstream. Convenience gross margin growth - the year-on-year change in convenience gross margin at constant foreign exchange. This metric requires a calculation based on convenience gross margin (USD billion) at constant foreign exchange. The foreign exchange calculation compares the current period value over the restated comparative period value which results in the growth % at constant foreign exchange rates. bp believes it is helpful to disclose the convenience gross margin because this measure may help investors to understand and evaluate, in the same way as management, our progress against our strategic objectives of redefining convenience. The nearest GAAP measure is RC profit before interest and tax. A reconciliation to GAAP information is provided on page 30. Developed renewables to final investment decision (FID) - Total generating capacity for assets developed to FID by all entities where bp has an equity share (proportionate to equity share). If asset is subsequently sold bp will continue to record capacity as developed to FID. If bp equity share increases developed capacity to FID will increase proportionately to share increase for any assets where bp held equity at the point of FID. Divestment proceeds are disposal proceeds as per the condensed group cash flow statement. Effective tax rate (ETR) on replacement cost (RC) profit or loss is a non-GAAP measure. The ETR on RC profit or loss is calculated by dividing taxation on a RC basis by RC profit or loss before tax. Information on RC profit or loss is provided below. bp believes it is helpful to disclose the ETR on RC profit (MORE TO FOLLOW) Dow Jones Newswires
April 27, 2021 04:16 ET (08:16 GMT)
