tax inventory holding gains and losses. See Note 3 for further information. Comparative information for 2020 has been restated in Notes 3, 4 and 5 to reflect the changes in reportable segments. Voluntary change in accounting policy - Net presentation of revenues and purchases relating to physically settled derivative contracts bp routinely enters into transactions for the sale and purchase of commodities that are physically settled and meet the definition of a derivative financial instrument. These contracts are within the scope of IFRS 9 and as such, prior to settlement, changes in the fair value of these derivative contracts are presented as gains and losses within other operating revenues. The group previously presented revenues and purchases for such contracts on a gross basis in the income statement upon physical settlement. These transactions have historically represented a substantial portion of the revenues and purchases reported in the group's consolidated financial statements. The change in strategic direction of the group supported by organisational changes to implement the strategy from 1 January 2021, results in the group determining that the revenue and corresponding purchases relating to such transactions should be presented net, as gains or losses within other operating revenues, from that date. Additionally the group's trading activity has continued to evolve over time from one of capturing third-party physical trades to provide flow assurance to one with increasing levels of optimisation, taking advantage of price volatility and fluctuations in demand and supply, which will continue under the new strategy, further supporting the change in presentation. The new presentation provides reliable and more relevant information for users of the accounts as the group's revenue recognition is more closely aligned with its assessment of 'Scope 3' emissions from its products, its 'Net Zero' ambition and how management monitors and manages performance of such contracts. Comparative information for sales and other operating revenues and purchases for 2020 has been restated as shown in the table below. There is no significant impact on comparative information for profit before income and tax or earnings per share. Top of page 21 Note 1. Basis of preparation (continued) In addition, as disclosed in the group's 2020 financial statements, in 2020 revenues from physically settled derivative contracts were reclassified as other operating revenues and were no longer presented together with revenues from contracts with customers.In these first quarter 2021 financial statements certain other similar contracts have been reclassified as other operating revenues and then been subject to net presentation as described above. Comparative information for natural gas, LNG and NGLs, and non-oil products and other revenue from contracts with customers in Note 4 has been amended to align with current period presentation as shown in the table below.


                                                      First     First                  Fourth    Fourth 
                                                      quarter   quarter                quarter   quarter 
                                                      2020      2020      Impact of    2020      2020      Impact of 
                                                                          net                              net 
USD million                                                                 presentation                     presentation 
                                                                Restated  [(a)]                  Restated  [(a)] 
Sales and other operating revenues (note 4) 
gas & low carbon energy                               6,052     5,525     (527)        4,091     2,371     (1,720) 
oil production & operations                           5,831     5,831     -            4,101     4,101     - 
customers & products                                  53,964    25,814    (28,150)     41,513    24,158    (17,355) 
other businesses & corporate                          437       437       -            404       404       - 
                                                      66,284    37,607    (28,677)     50,109    31,034    (19,075) 
Less: sales and other revenues between segments 
gas & low carbon energy                               1,811     1,811     -            616       616       - 
oil production & operations                           5,501     5,501     -            3,782     3,782     - 
customers & products                                  (782)     (782)     -            486       486       - 
other businesses & corporate                          104       104       -            436       436       - 
                                                      6,634     6,634     -            5,320     5,320     - 
External sales and other operating revenues 
gas & low carbon energy                               4,241     3,714     (527)        3,475     1,755     (1,720) 
oil production & operations                           330       330       -            319       319       - 
customers & products                                  54,746    26,596    (28,150)     41,027    23,672    (17,355) 
other businesses & corporate                          333       333       -            (32)      (32)      - 
Total sales and other operating revenues              59,650    30,973    (28,677)     44,789    25,714    (19,075) 
Sales and other operating revenues include the 
following in relation to revenues from contracts 
with customers: 
Crude oil                                             1,435     1,435     -            1,185     1,185     - 
Oil products                                          20,254    20,254    -            16,216    16,216    - 
Natural gas, LNG and NGLs                             3,638     3,178     (460)        3,252     1,369     (1,883) 
Non-oil products and other revenues from contracts 
with customers                                        2,490     2,477     (13)         2,608     2,546     (62) 
Revenues from contracts with customers                27,817    27,344    (473)        23,261    21,316    (1,945) 
Other operating revenues                              31,833    3,629     (28,204)     21,528    4,398     (17,130) 
Total sales and other operating revenues              59,650    30,973    (28,677)     44,789    25,714    (19,075) amount as total sales and other operating revenues. Top of page 22 Note 2. Non-current assets held for sale The carrying amount of assets classified as held for sale at 31 March 2021 is USD31 million, with associated liabilities of USD34 million. At 31 December 2020 the balance consists primarily of a 20% participating interest from BP's 60% participating interest in Block 61 in Oman, which is reported in the gas & low carbon energy segment. As announced on 1 February 2021, BP agreed to sell this interest to PTT Exploration and Production Public Company Limited (PTTEP) of Thailand for a total consideration of up to USD2.6 billion, subject to final adjustments. On 28 March, a royal decree was published approving the sale and USD2.4 billion was received in March 2021. Note 3. Analysis of replacement cost profit (loss) before interest and tax and reconciliation to profit (loss) before taxation[(a)] 
                                                                              First    Fourth   First 
                                                                              quarter  quarter  quarter 
USD million                                                                     2021     2020     2020 
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) 
                                                                              5,528    1,231    972 
Consolidation adjustment - UPII*                                              13       (77)     178 
RC profit (loss) before interest and tax*                                     5,541    1,154    1,150 
Inventory holding gains (losses)* 
gas & low carbon energy                                                       22       10       (9) 
oil production & operations                                                   15       10       (59) 
customers & products                                                          1,605    650      (4,615) 
Rosneft (net of tax)                                                          88       25       (201) 
Profit (loss) before interest and tax                                         7,271    1,849    (3,734) 
Finance costs                                                                 723      749      783 
Net finance expense relating to pensions and other post-retirement benefits   6        10       7 
Profit (loss) before taxation                                                 6,542    1,090    (4,524) 
 
RC profit (loss) before interest and tax* 
US                                                                            1,907    (21)     595 
Non-US                                                                        3,634    1,175    555 
                                                                              5,541    1,154    1,150 (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. Top of page 23 Note 4. Sales and other operating revenues[(a)] 
                                                                                           First     Fourth    First 
                                                                                           quarter   quarter   quarter 

(MORE TO FOLLOW) Dow Jones Newswires

April 27, 2021 04:16 ET (08:16 GMT)