BP PLC We believe that disclosing the amounts of RMI and paid-up RMI is useful to investors as it enables them to better understand and evaluate the group's inventories and liquidity position by enabling them to see the level of discretionary inventory held by IST and to see builds or releases of liquid trading inventory.
See the Glossary on page 32 for a more detailed definition of RMI. RMI at fair value, paid-up RMI and unpaid RMI are non-GAAP measures. A reconciliation of total inventory as reported on the group balance sheet to paid-up RMI is provided below.
31 31
December December
USD million 2020 2019
Reconciliation of total inventory to paid-up RMI
Inventories as reported on the group balance sheet under IFRS 16,873 20,880
Less: (a) inventories that are not oil and oil products and (b) oil and oil product inventories
that are not risk-managed by IST (10,810) (14,280)
6,063 6,600
Plus: difference between RMI at fair value and RMI on an IFRS basis 465 237
RMI at fair value 6,528 6,837
Less: unpaid RMI* at fair value (3,163) (3,620)
Paid-up RMI 3,365 3,217 Top of page 30
Gulf of Mexico oil spill
Fourth Third Fourth
quarter quarter quarter Year Year
USD million 2020 2020 2019 2020 2019
Net cash provided by operating activities as per condensed group cash
flow statement 2,269 5,204 7,603 12,162 25,770
Exclude net cash from operating activities relating to the Gulf of Mexico
oil spill on a post-tax basis 88 142 (42) 1,608 2,429
Operating cash flow, excluding Gulf of Mexico oil spill payments* 2,357 5,346 7,561 13,770 28,199 Net cash from operating activities relating to the Gulf of Mexico oil spill on a pre-tax basis amounted to an outflow of USD116 million and USD1,786 million in the fourth quarter and full year of 2020 respectively. For the same periods in 2019, the amount was an outflow of USD125 million and USD2,694 million respectively. Net cash outflows relating to the Gulf of Mexico oil spill in 2020 and 2019 include payments made under the 2016 consent decree and settlement agreement with the United States and the five Gulf coast states.
31 December 31 December
USD million 2020 2019
Trade and other payables (11,387) (12,480)
Provisions (49) (189)
Gulf of Mexico oil spill payables and provisions (11,436) (12,669)
Of which - current (1,444) (1,800)
Deferred tax asset 5,471 5,526 On 22 January 2021, the United States District Court for the Eastern District of Louisiana issued an order determining the completion of all claims processing operations of the Deepwater Horizon Court Supervised Settlement Programme (DHCSSP). The DHCSSP was established in 2012 to administer claims pursuant to the Economic and Property Damages Settlement Agreement (EPD Settlement Agreement). The Court also concluded that future issues concerning EPD Settlement Agreement claims would be time barred under the DHCSSP and the claim administrator would proceed to complete post-closure administrative wind down activities. The provision presented in the table above reflects the latest estimate for the remaining costs associated with the Gulf of Mexico oil spill. The amounts ultimately payable may differ from the amount provided and the timing of payments is uncertain. Further information relating to the Gulf of Mexico oil spill, including the DHCSSP and information on the nature and expected timing of payments relating to provisions and other payables, is provided in BP Annual Report and Form 20-F 2019 - Financial statements - Notes 7, 9, 20, 22, 23, 29, 33 and pages 319 to 320 of Legal proceedings.
Working capital* reconciliation
Fourth Third Fourth
quarter quarter quarter Year Year
USD million 2020 2020 2019 2020 2019
Movements in inventories and other current and non-current assets and
liabilities as per condensed group cash flow statement (715) 556 (306) (85) (2,918)
Adjustments to exclude movements in inventories and other current and
non-current assets and liabilities for the Gulf of Mexico oil spill 41 165 91 1,580 2,586
Adjusted for Inventory holding gains (losses)* (Note 5)
Upstream 20 8 - 17 (8)
Downstream 650 191 (21) (2,796) 685
Working capital release (build)[ (4) 920 (236) (1,284) 345 Top of page 31
Realizations* and marker prices
Fourth Third Fourth
quarter quarter quarter Year Year
2020 2020 2019 2020 2019
Average realizations[(a)]
Liquids* (USD/bbl)
US 32.40 31.74 49.34 33.06 51.88
Europe 43.39 43.52 63.01 41.79 63.95
Rest of World 41.60 41.46 60.34 37.42 61.50
BP Average 38.42 38.17 55.90 36.16 57.73
Natural gas (USD/mcf)
US 1.76 1.29 1.65 1.30 1.93
Europe 5.37 2.34 4.06 3.13 4.01
Rest of World 3.37 2.99 3.77 3.25 4.10
BP Average 3.10 2.56 3.12 2.75 3.39
Total hydrocarbons* (USD/boe)
US 24.20 22.04 31.84 23.25 33.30
Europe 39.39 36.14 51.91 35.52 56.87
Rest of World 29.28 27.40 37.91 26.91 39.23
BP Average 28.48 26.42 36.42 26.31 38.00
Average oil marker prices (USD/bbl)
Brent 44.16 42.94 63.08 41.84 64.21
West Texas Intermediate 42.63 40.91 56.88 39.25 57.03
Western Canadian Select 31.57 31.62 37.70 28.53 43.42
Alaska North Slope 44.82 42.75 64.32 42.20 65.00
Mars 43.26 42.01 57.85 40.20 60.84
Urals (NWE - cif) 44.29 42.83 60.74 41.71 62.96
Average natural gas marker prices
Henry Hub gas price[(b)]^(USD/mmBtu) 2.67 1.98 2.50 2.08 2.63
UK Gas - National Balancing Point (p/therm) 40.46 21.06 31.77 24.93 34.70 (a) Based on sales of consolidated subsidiaries only - this excludes equity-accounted entities.
(b) Henry Hub First of Month Index.
Exchange rates
Fourth Third Fourth
quarter quarter quarter Year Year
2020 2020 2019 2020 2019
USD/GBP average rate for the period 1.32 1.29 1.29 1.28 1.28
USD/GBP period-end rate 1.36 1.28 1.31 1.36 1.31
USD/EUR average rate for the period 1.19 1.17 1.11 1.14 1.12
USD/EUR period-end rate 1.23 1.17 1.12 1.23 1.12
USD/AUD average rate for the period 0.73 0.71 0.68 0.69 0.69
USD/AUD period-end rate 0.77 0.71 0.70 0.77 0.70
Rouble/USD average rate for the period 76.16 73.74 63.74 72.32 64.73
Rouble/USD period-end rate 74.44 77.57 61.98 74.44 61.98 Top of page 32
Legal proceedings
For a full discussion of the group's material legal proceedings, see pages 319-320 of BP Annual Report and Form 20-F 2019.
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.
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.
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