BP PLC statement on page 39. Top of page 3 Financial results bp announced a change in strategy and a new organizational model in 2020. From the start of 2021 we have also changed the way that we performance manage bp. From the first quarter of 2021, the group's reportable segments are gas & low carbon energy, oil production & operations, customers & products, and Rosneft. In customers & products, as we respond to the energy transition, convenience and electrification are expected to form a greater proportion of our margins and to provide visibility we have provided further information on customers - convenience & mobility and products - refining and trading. Customers - convenience & mobility includes our customer-focused businesses, spanning convenience and mobility, which includes fuels retail and next-gen offers such as electrification, as well as aviation, midstream, and Castrol lubricants. Products business includes refining and oil & oil products trading. At 31 December 2020, the group's reportable segments were Upstream, Downstream and Rosneft. 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. In addition to the highlights on page 2: . Divestment and other proceeds of USD4.8 billion in the first quarter include USD2.4 billion from the divestment of a
20% stake in Oman Block 61, USD1.0 billion final instalment relating to the sale of the petrochemicals business and
USD0.7 billion from the sale of a 49% interest in a controlled affiliate holding certain refined product and crude
logistics assets onshore US. . The divestment of the stake in Oman Block 61 has resulted in a gain on disposal of USD1.0 billion. . Capital expenditure* in the first quarter was USD3.8 billion, consistent with the USD3.9 billion spend in the first
quarter 2020 and higher than the USD3.5 billion in the fourth quarter 2020. This includes payments of USD0.7 billion
following completion of the formation of the offshore wind joint venture with Equinor and a USD0.3 billion payment in
connection with our share of UK offshore wind leases in partnership with EnBW. . Included in the operating cash flow* of USD6.1 billion for the first quarter was USD0.5 billion of cash flow relating
to severance costs associated with the reinvent programme. . The effective tax rate (ETR) on RC profit* for the first quarter was 26%, compared with 280% for the same period in
2020. Excluding adjusting items, the underlying ETR* for the first quarter was 30%, compared with 55% for the same
period a year ago. The lower underlying ETR for the first quarter reflects changes in the geographical mix of
profits, and an absence of charges for the reassessment of the recognition of deferred tax assets. ETR on RC profit
or loss and underlying ETR are non-GAAP measures. . A dividend of 5.25 cents per share was announced for the quarter. Analysis of RC profit (loss)* before interest and tax and reconciliation to profit (loss) for the period
First Fourth First
quarter quarter quarter
USD million 2021 2020 2020
RC profit (loss) before interest and tax
gas & low carbon energy 3,430 (638) 1,070
oil production & operations 1,479 66 (179)
customers & products 934 1,245 664
Rosneft 363 270 (17)
other businesses & corporate (678) 288 (566)
Consolidation adjustment - UPII* 13 (77) 178
RC profit before interest and tax 5,541 1,154 1,150
Finance costs and net finance expense relating to pensions and other post-retirement
benefits (729) (759) (790)
Taxation on a RC basis (1,254) 557 (1,008)
Non-controlling interests (233) (127) 20
RC profit (loss) attributable to bp shareholders 3,325 825 (628)
Inventory holding gains (losses)* 1,730 695 (4,884)
Taxation (charge) credit on inventory holding gains and losses (388) (162) 1,147
Profit (loss) for the period attributable to bp shareholders 4,667 1,358 (4,365) Top of page 4 Analysis of underlying RC profit (loss)* before interest and tax
First Fourth First
quarter quarter quarter
USD million 2021 2020 2020
Underlying RC profit (loss) before interest and tax
gas & low carbon energy 2,270 154 847
oil production & operations 1,565 563 895
customers & products 656 126 921
Rosneft 363 311 (17)
other businesses & corporate (170) (109) (432)
Consolidation adjustment - UPII 13 (77) 178
Underlying RC profit before interest and tax 4,697 968 2,392
Finance costs and net finance expense relating to pensions and other post-retirement
benefits (581) (568) (668)
Taxation on an underlying RC basis (1,253) (158) (953)
Non-controlling interests (233) (127) 20
Underlying RC profit attributable to bp shareholders 2,630 115 791 measure are provided on page 1 for the group and on pages 6-13 for the segments. Operating Metrics
Operating metrics First quarter 2021 vs First quarter 2020
Tier 1 and tier 2 process safety events* 23 -3
Reported recordable injury frequency* 0.160 +8.1%
Group production (mboe/d) 3,268 -12.0%
upstream* production (mboe/d) (excludes Rosneft segment) 2,218 -14.0%
upstream unit production costs*[(a) ](USD/boe) 7.36 +4.1%
bp-operated hydrocarbon plant reliability* 93.0% 0.0
bp-operated refining availability* 94.8% -1.3 1. Reflecting lower volumes. Top of page 5 Outlook & Guidance Macro outlook . The oil market is set to continue its rebalancing process. Global stocks are expected to decline and reach historical levels (in terms of days of forward cover) at the end of 2021. . Oil demand is expected to recover in 2021 due to strong growth in US and China and as the distribution of
vaccinations gains momentum and lockdown restrictions are gradually lifted. . OPEC+ behaviour is a key factor in oil prices and market rebalancing. . We expect global gas demand to recover to above 2019 levels, and LNG demand to increase as a result of higher Asian
imports. . Industry refining margins are expected to improve over the course of 2021 compared to the first quarter, with the
recovery in demand and the closure of some capacity supporting higher utilization rates compared to the
exceptionally low levels seen last year. However, refining margins are expected to remain weaker than pre-COVID-19
levels. 2Q21 guidance . We expect second quarter reported upstream* production to be lower than the first quarter mainly due to divestments
and seasonal maintenance activities, primarily in the Gulf of Mexico, the North Sea and Trinidad, partly offset by
the ramp-up of the Raven and KG D6 R Cluster major projects*. Within this, we expect both gas & low carbon energy
and oil production & operations to be lower. . We expect higher product demand across our customer businesses in the second quarter as restrictions begin to ease
and vaccination rollouts continue. This should help provide some support to industry refining margins. However,
realized refining margins are expected to show a smaller improvement due to the slower recovery in diesel and jet
demand and a narrower North American heavy crude oil differential. In addition, we expect a higher level of
turnaround activity in our refining portfolio. 2021 Guidance In addition to the guidance on page 2: . We now expect disposal proceeds for the year to reach USD5-6 billion during the latter stages of 2021. As a result of
this quarter's divestments, our target of USD25 billion of disposal and other proceeds between the second half of
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