BP PLC
Surplus cash flow 2,382
Top of page 35 Reconciliation of customers & products RC profit before interest and tax* to underlying RC profit before interest and tax to adjusted EBITDA* by business
Second First Second First First
quarter quarter quarter half half
USD million 2021 2021 2020 2021 2020
RC profit before interest and tax for customers & products 640 934 594 1,574 1,258
Less: Adjusting items gains (charges) (187) 278 (811) 91 (1,068)
Underlying RC profit before interest and tax for customers & products 827 656 1,405 1,483 2,326
By business:
customers - convenience & mobility 951 658 432 1,609 1,120
Castrol - included in customers 265 334 63 599 230
products - refining & trading (124) (2) 926 (126) 1,094
petrochemicals - - 47 - 112
Add back: Depreciation, depletion and amortization 754 745 752 1,499 1,499
By business:
customers - convenience & mobility 329 324 283 653 570
Castrol - included in customers 39 39 43 78 81
products - refining & trading 425 421 419 846 829
petrochemicals - - 50 - 100
Adjusted EBITDA for customers & products 1,581 1,401 2,157 2,982 3,825
By business:
customers - convenience & mobility 1,280 982 715 2,262 1,690
Castrol - included in customers 304 373 106 677 311
products - refining & trading 301 419 1,345 720 1,923
petrochemicals - - 97 - 212 Top of page 36 Realizations* and marker prices
Second First Second First First
quarter quarter quarter half half
2021 2021 2020 2021 2020
Average realizations[(a)]
Liquids* (USD/bbl)
US 53.64 45.21 21.63 49.36 33.80
Europe 69.19 61.72 28.91 64.83 40.30
Rest of World 64.44 57.48 22.58 61.04 33.79
BP Average 60.69 53.20 22.75 56.91 34.39
Natural gas (USD/mcf)
US 3.03 3.45 0.97 3.24 1.15
Europe 8.94 6.89 1.38 7.78 2.17
Rest of World 4.13 3.94 3.12 4.03 3.32
BP Average 4.08 3.98 2.53 4.03 2.69
Total hydrocarbons* (USD/boe)
US 41.14 36.91 16.05 39.02 23.37
Europe 63.85 55.34 23.00 58.93 33.46
Rest of World 40.27 36.06 20.21 38.16 25.63
BP Average 41.84 37.75 19.06 39.77 25.36
Average oil marker prices (USD/bbl)
Brent 68.97 61.12 29.56 64.98 40.07
West Texas Intermediate 66.19 58.13 27.96 62.22 36.69
Western Canadian Select 53.10 46.12 22.19 49.57 25.48
Alaska North Slope 68.58 61.07 30.28 64.89 40.59
Mars 66.01 58.65 30.02 62.39 37.73
Urals (NWE - cif) 66.69 59.36 31.36 62.96 39.80
Average natural gas marker prices
Henry Hub gas price[(b)] (USD/mmBtu) 2.83 2.71 1.71 2.77 1.83
UK Gas - National Balancing Point (p/therm) 64.79 49.82 12.88 57.19 18.98
(b) Henry Hub First of Month Index. Exchange rates
Second First Second First First
quarter quarter quarter half half
2021 2021 2020 2021 2020
USD/GBP average rate for the period 1.40 1.38 1.24 1.39 1.26
USD/GBP period-end rate 1.38 1.37 1.23 1.38 1.23
USD/EUR average rate for the period 1.21 1.21 1.10 1.21 1.10
USD/EUR period-end rate 1.19 1.17 1.12 1.19 1.12
USD/AUD average rate for the period 0.77 0.77 0.66 0.77 0.66
USD/AUD period-end rate 0.75 0.76 0.69 0.75 0.69
Rouble/USD average rate for the period 74.20 74.41 72.40 74.31 69.64
Rouble/USD period-end rate 72.70 76.09 71.25 72.70 71.25 Top of page 37 Principal risks and uncertainties The principal risks and uncertainties affecting bp are described in the Risk factors section of bp Annual Report and Form 20-F 2020 (pages 67-70) and are summarized below. There are no material changes in those principal risks and uncertainties for the remaining six months of the financial year. The risks and uncertainties summarized below, separately or in combination, could have a material adverse effect on the implementation of our strategy, our business, financial performance, results of operations, cash flows, liquidity, prospects, shareholder value and returns and reputation. Strategic and commercial risks * Prices and markets - our financial performance is impacted by fluctuating prices of oil, gas and refined products, technological change, exchange rate fluctuations, and the general macroeconomic outlook. * Access, renewal and reserves progression - inability to access, renew and progress upstream resources in a timely manner could adversely affect our long-term replacement of reserves. * Major project* delivery - failure to invest in the best opportunities or deliver major projects successfully could adversely affect our financial performance. * Geopolitical - exposure to a range of political developments and consequent changes to the operating and regulatory environment could cause business disruption. * Liquidity, financial capacity and financial, including credit, exposure - failure to work within our financial framework could impact our ability to operate and result in financial loss. * Joint arrangements and contractors - varying levels of control over the standards, operations and compliance of our partners, contractors and sub-contractors could result in legal liability and reputational damage. * Digital infrastructure and cyber security - breach or failure of our or third parties' digital infrastructure or cyber security, including loss or misuse of sensitive information could damage our operations, increase costs and damage our reputation. * Climate change and the transition to a lower carbon economy - developments in policy, law, regulation, technology and markets, including societal and investor sentiment, related to the issue of climate change could increase costs, constrain our operations and affect our business plans and financial performance. * Competition - inability to remain efficient, maintain a high-quality portfolio of assets, innovate and retain an appropriately skilled workforce could negatively impact delivery of our strategy in a highly competitive market. * Crisis management and business continuity - failure to address an incident effectively could potentially disrupt our business. * Insurance - our insurance strategy could expose the group to material uninsured losses. Safety and operational risks * Process safety, personal safety, and environmental risks - exposure to a wide range of health, safety, security and environmental risks could cause harm to people, the environment and our assets and result in regulatory action, legal liability, business interruption, increased costs, damage to our reputation and potentially denial of our licence to operate. * Drilling and production - challenging operational environments and other uncertainties could impact drilling and production activities. * Security - hostile acts against our staff and activities could cause harm to people and disrupt our operations. * Product quality - supplying customers with off-specification products could damage our reputation, lead to regulatory action and legal liability, and impact our financial performance. Compliance and control risks * Ethical misconduct and non-compliance - ethical misconduct or breaches of applicable laws by our businesses or our employees could be damaging to our reputation, and could result in litigation, regulatory action and penalties. * Regulation - changes in the law and regulation could increase costs, constrain our operations and affect our business plans and financial performance. * Treasury and trading activities - ineffective oversight of treasury and trading activities could lead to business (MORE TO FOLLOW) Dow Jones Newswires
August 03, 2021 02:00 ET (06:00 GMT)
