2021. The corresponding amount in sterling is due to be announced pipeline refinancing and the sale of an interest in on 15 March 2021, calculated based on the average of the market BP's UK retail property portfolio. Other proceeds exchange rates for the four dealing days commencing on 9 March for the fourth quarter and full year in 2019 were 2021. See page 24 for more information. USD0.6 billion. Share buybacks Total divestment and other proceeds for the quarter BP repurchased 120 million ordinary shares at a cost of USD776 and full year in 2020 were USD4.2 billion and USD6.6 million (including fees and stamp duty) in the full year 2020, all billion respectively. Total divestment and other of which was completed in the first quarter of 2020. In January proceeds for the fourth quarter and full year in 2020, the share dilution buyback programme had fully offset the 2019 were USD1.4 billion and USD2.8 billion impact of scrip dilution since the third quarter 2017. respectively. Net debt* and gearing* Net debt at 31 December 2020 was USD38.9 billion, compared with USD45.4 billion a year ago. Gearing at 31 December 2020 was 31.3%, compared with 31.1% a year ago. Gearing including leases* at 31 December 2020 was 36.0%, compared with 35.3% a year ago. Net debt, gearing and gearing including leases are non-GAAP measures. See pages 25 and 29 for more information. Reserves replacement ratio* The organic reserves replacement ratio on a combined basis of subsidiaries and equity-accounted entities was 78% for the year. Including acquisitions and divestments, the total reserves replacement ratio was -5%. * For items marked with an asterisk throughout this document, definitions are provided in the Glossary on page 32. The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 36.
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Analysis of underlying RC profit (loss)* before interest and tax
Fourth Third Fourth quarter quarter quarter Year Year USD million 2020 2020 2019 2020 2019 Underlying RC profit (loss) before interest and tax Upstream 697 878 2,678 (5,041) 11,158 Downstream 126 636 1,438 3,088 6,419 Rosneft 311 (177) 412 56 2,419 Other businesses and corporate (89) (130) (250) (1,040) (1,280) Consolidation adjustment - UPII* (77) 34 24 89 75 Underlying RC profit (loss) before interest and tax 968 1,241 4,302 (2,848) 18,791 Finance costs and net finance expense relating to pensions and other post-retirement benefits (568) (610) (781) (2,523) (3,041) Taxation on an underlying RC basis (158) (402) (955) (743) (5,596) Non-controlling interests (127) (143) 1 424 (164) Underlying RC profit (loss) attributable to BP shareholders 115 86 2,567 (5,690) 9,990 Reconciliations of underlying RC profit or loss attributable to BP shareholders to the nearest equivalent IFRS measure are provided on page 1 for the group and on pages 6-11 for the segments.
Analysis of RC profit (loss)* before interest and tax and reconciliation to profit (loss) for the period
Fourth Third Fourth quarter quarter quarter Year Year USD million 2020 2020 2019 2020 2019 RC profit (loss) before interest and tax Upstream (592) 30 614 (21,547) 4,917 Downstream 1,245 915 1,433 3,418 6,502 Rosneft 270 (278) 503 (149) 2,316 Other businesses and corporate 308 24 (1,432) (683) (2,771) Consolidation adjustment - UPII (77) 34 24 89 75 RC profit (loss) before interest and tax 1,154 725 1,142 (18,872) 11,039 Finance costs and net finance expense relating to pensions and other post-retirement benefits (759) (808) (903) (3,148) (3,552) Taxation on a RC basis 557 (418) (244) 3,492 (3,808) Non-controlling interests (127) (143) 1 424 (164) RC profit (loss) attributable to BP shareholders 825 (644) (4) (18,104) 3,515 Inventory holding gains (losses)* 695 233 10 (2,868) 667 Taxation (charge) credit on inventory holding gains and losses (162) (39) 13 667 (156) Profit (loss) for the period attributable to BP shareholders 1,358 (450) 19 (20,305) 4,026
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Operational updates Strategic progress Upstream At the end of 2020, BP had developed 3.3GW net renewable Upstream production, which excludes Rosneft, for the full generating capacity to FID, compared with 2.6GW a year year averaged 2,375mboe/d, 9.9% lower than for 2019, earlier. driven primarily by divestments in BPX Energy and Alaska. Underlying production* for the full year was 3.5% lower The formation of BP's strategic partnership with Equinor for than 2019. offshore wind opportunities in the US was completed in January 2021, including BP's purchase of a 50% interest in For the full year of 2020, BP-operated Upstream plant the Empire Wind and Beacon Wind projects. Empire Wind 2 and reliability* was 94.0% and Upstream unit production Beacon Wind 1 were selected to provide New York state with costs* of USD6.39/boe were 6.5% lower than in 2019. additional offshore wind power which, subject to negotiation of a purchase and sale agreement, will bring the total Production from three Upstream major projects started in secured by the projects to 3.3GW, 75% of the maximum the quarter - the Ghazeer project in Oman, Vorlich in the potential installed capacity across the projects. UK North Sea and the KG D6 R Cluster project offshore India. This follows the Gulf of Mexico Atlantis Phase 3 In the quarter BP also acquired a majority stake in Finite project in the previous quarter. The Raven project in Carbon, the biggest developer of forest carbon offsets in the Egypt is currently undergoing commissioning. The Trans US. BP's investment is expected to support the accelerated Adriatic Pipeline began gas deliveries, completing the growth of the business, including international expansion. Southern Gas Corridor pipeline system. Financial framework BP reached agreement to sell its interests in the Wamsutter asset in Wyoming to Williams Field Services Operating cash flow excluding Gulf of Mexico oil spill LLC. In February 2021 BP also agreed to sell a 20% payments* was USD13.8 billion for the full year of 2020, participating interest in Oman's Block 61 to PTT compared with USD28.2 billion for the same period in 2019. Exploration and Production Public Company Limited. Organic capital expenditure* for the full year of 2020 was Downstream USD12.0 billion. BP expects total capital expenditure, BP-operated refining availability for the full year was including inorganic capital expenditure, to be around USD13 96.0%. In the quarter BP announced plans to cease billion in 2021. production at the Kwinana refinery and convert it to an
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