- Organic capital expenditure in 2020 was USD12.0 billion, in line with the guidance given in April and compared with USD15.2 billion in 2019.

- Costs that are directly attributable to COVID-19 were around USD0.1 billion for the quarter (full year 2020 around USD0.4 billion).

- At year end net debt was USD39 billion, and BP continues to actively manage the profile of its debt portfolio. During the third quarter and January 2021, the group bought back an aggregate of USD6 billion of debt. At year-end BP had around USD44 billion of liquidity, including cash and undrawn revolving credit facilities.

- Net debt is expected to increase in the first half of 2021 before reducing in the second half of the year supported by growing operating cash flow and the receipt of divestment proceeds. BP continues to expect to reach our USD35 billion net debt target around fourth quarter 2021 and first quarter 2022. This assumes oil prices in the range of USD45-50 a barrel and BP planning assumptions for RMM and gas prices. Protecting our people and operations:

- BP continues to take steps to protect and support its staff through the pandemic. The great majority of BP staff who are able to work from home continue to do so. Precautions in operations and offices include: reduced manning levels, changing working patterns, deploying appropriate personal protective equipment (PPE) and enhanced cleaning and social distancing measures at plants and retail sites. Decisions on working practices are being taken with caution and in compliance with local and national guidelines and regulations.

- BP is providing enhanced support and guidance to staff on safety, health and hygiene, homeworking and mental health.

- While the pandemic did not result in significant outages in our ongoing operations, it resulted in delays to in-year major projects in the North Sea and India and has impacted development of the Mad Dog 2, Tangguh Expansion, Trinidad Cassia Compression and Greater Tortue Ahmeyin Phase 1 major projects. However production from four major projects commenced during the year.

- Refinery utilization for the full year was around 6% lower than 2019 due to the impact of COVID-19 on demand, with refining margins remaining extremely weak. Year on year, demand for retail fuels was lower by 14% and for aviation by 50%. Despite this, convenience gross margin grew by 6% at BP retail sites for the full year.

- Despite the challenges of the environment, BP's operations have performed safely and reliably over the course of the year. BP-operated Upstream plant reliability was 94% and BP-operated refining availability was 96% for the year. Outlook:

- From the oil supply side, limited growth from non-OPEC+ countries coupled with active market management from OPEC+ means that for 2021 we anticipate a normalization of the currently high inventory levels.

- Oil demand is anticipated to recover in 2021. The speed and degree of the rebound depends on governments' policies and individuals' self-imposed actions as vaccine distribution proceeds.

- Oil prices have risen since the end of October, supported by vaccine rollout programmes and continued active supply management by OPEC+ countries. Prices are expected to remain subject to the decisions of OPEC+, confidence in efforts to manage the rollout of vaccination and further virus control measures.

- We expect the US gas market to tighten in 2021 as supply declines and demand for LNG exports recovers. The current tightness on global LNG markets and higher US gas prices will lift other regional gas prices.

- US gas markets are likely to benefit from lower production and a recovery in international LNG demand driven by demand in Asia.

- In the first quarter of 2021 we expect material impacts in Downstream as a result of the pandemic, with increased COVID-19 restrictions resulting in lower product demand. We expect industry refining margins and utilization to remain under pressure. In our marketing businesses we expect renewed COVID-19 restrictions to have a greater impact on product demand, with January retail volumes down by around 20% year on year, compared with a decline of 11% in the fourth quarter.

- BP will continue to review all actions and respond to any further changes in prevailing market conditions. 


The commentary above and following should be read in conjunction with the cautionary statement on page 36.

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Group headlines 
Results                                                             Operating cash flow* 
For the full year, underlying replacement cost (RC) loss* was       Operating cash flow excluding Gulf of Mexico oil 
USD5,690 million, compared with a profit of USD9,990 million in 2019.   spill payments* was USD2.4 billion for the fourth 
Underlying RC loss is after adjusting RC loss* for a net charge for quarter and USD13.8 billion for the full year. These 
non-operating items* of USD12,191 million and net adverse fair value  amounts include a working capital* build of USD4.0 
accounting effects* of USD223 million (both on a post-tax basis).     million in the fourth quarter and USD1.3 billion in 
                                                                    the full year, after adjusting for net inventory 
RC loss was USD18,104 million for the full year, compared with a      holding gains or losses* and working capital 
profit of USD3,515 million in 2019.                                   effects of the Gulf of Mexico oil spill. The 
                                                                    comparable amount for the same periods in 2019 was 
For the fourth quarter, underlying RC profit was USD115 million,      USD7.6 billion and USD28.2 billion. 
compared with USD2,567 million in 2019. Underlying RC profit is after 
adjusting RC profit for a net gain for non-operating items of       Operating cash flow as reported in the group cash 
USD1,166 million and net adverse fair value accounting effects of     flow statement was USD2.3 billion for the fourth 
USD456 million (both on a post-tax basis).                            quarter and USD12.2 billion for the full year, 
                                                                    including a working capital build of USD0.7 billion 
RC profit was USD825 million for the fourth quarter, compared with a  and USD0.1 billion respectively, compared with USD7.6 
loss of USD4 million in 2019.                                         billion and USD25.8 billion for the same periods in 
                                                                    2019. 
Profit or loss for the fourth quarter and full year attributable to 
BP shareholders was a profit of USD1,358 million and a loss of        See page 30 and Glossary for further information on 
USD20,305 million respectively, compared with a profit of USD19 million Gulf of Mexico oil spill cash flows and on working 
and USD4,026 million for the same periods in 2019.                    capital. 
See further information on pages 4, 27 and 28.                      Capital expenditure* 
                                                                    Organic capital expenditure* for the fourth quarter 
Depreciation, depletion and amortization                            and full year was USD2.9 billion and USD12.0 billion 
The charge for depreciation, depletion and amortization was USD3.4    respectively, compared with USD4.0 billion and USD15.2 
billion in the quarter and USD14.9 billion in the full year, compared billion for the same periods in 2019. 
with USD4.4 billion and USD17.8 billion for the same periods in 2019. 
In 2021, we expect the full-year charge to be similar to the 2020   Inorganic capital expenditure* for the fourth 
level.                                                              quarter and full year was USD0.5 billion and USD2.0 
                                                                    billion respectively, compared with USD0.2 billion 
Effective tax rate                                                  and USD4.2 billion for the same periods in 2019. 
The effective tax rate (ETR) on RC profit or loss* for the fourth 
quarter and full year was -141% and 16% respectively, compared with Organic capital expenditure and inorganic capital 
102% and 51% for the same periods in 2019. Adjusting for            expenditure are non-GAAP measures. See page 26 for 
non-operating items and fair value accounting effects, the          further information. 
underlying ETR* for the fourth quarter and full year was 40% and 
-14% respectively, compared with 27% and 36% for the same periods a Divestment and other proceeds 
year ago. The higher underlying ETR for the fourth quarter reflects Divestment proceeds* for the fourth quarter and 
changes in the mix of profits and losses. The lower underlying ETR  full year were USD4.0 billion and USD5.5 billion 
for the full year mainly reflects the exploration write-offs with a respectively, including USD3.5 billion and USD3.9 
limited deferred tax benefit and the reassessment of deferred tax   billion of proceeds from the petrochemicals 
asset recognition in the second quarter. The underlying ETR for     divestment respectively. For the same periods in 
2021 is expected to be higher than 40% but is sensitive to the      2019 divestment proceeds were USD0.8 billion and USD2.2 
impact that volatility in the current environment may have on the   billion respectively. 
geographical mix of the group's profits and losses. ETR on RC 
profit or loss and underlying ETR are non-GAAP measures.            In addition, USD0.2 billion was received in the 
                                                                    fourth quarter in relation to the sale of an 
Dividend                                                            interest in BP's New Zealand retail property 
BP today announced a quarterly dividend of 5.25 cents per ordinary  portfolio. For the full year, USD1.1 billion in other 
share (USD0.315 per ADS), which is expected to be paid on 26 March    proceeds were received including from the TANAP

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