(a) The operational and financial information of the Rosneft segment for the fourth quarter and full year is based on preliminary operational and financial results of Rosneft for the three months and full year ended 31 December 2020. Actual results may differ from these amounts. Amounts reported for the fourth quarter are based on BP's 22.01% average economic interest for the quarter (third quarter 2020 21.96% and fourth quarter 2019 19.75%). A preliminary assessment of the fair values of the assets and liabilities acquired and the consideration transferred in respect of the acquisitions announced by Rosneft on 28 December is being undertaken and the impact, if any, on BP's accounting for its equity-accounted investment in Rosneft will be updated once this has been completed.

(b) The Rosneft segment result includes equity-accounted earnings arising from BP's economic interest in Rosneft as adjusted for accounting required under IFRS relating to BP's purchase of its interest in Rosneft, and the amortization of the deferred gain relating to the divestment of BP's interest in TNK-BP.

(c) BP's adjusted share of Rosneft's earnings after Rosneft's own finance costs, taxation and non-controlling interests is included in the BP group income statement within profit before interest and taxation. For each year-to-date period it is calculated by translating the amounts reported in Russian roubles into US dollars using the average exchange rate for the year to date.

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Other businesses and corporate 


                                                                           Fourth   Third    Fourth 
                                                                          quarter quarter   quarter        Year      Year 
USD million                                                                    2020    2020      2019        2020      2019 
Profit (loss) before interest and tax                                       308      24   (1,432)       (683)   (2,771) 
Inventory holding (gains) losses*                                             -       -         -           -         - 
RC profit (loss) before interest and tax                                    308      24   (1,432)       (683)   (2,771) 
Net (favourable) adverse impact of non-operating items* and fair value 
accounting effects*                                                       (397)   (154)     1,182       (357)     1,491 
Underlying RC profit (loss) before interest and tax*                       (89)   (130)     (250)     (1,040)   (1,280) 
Underlying RC profit (loss) before interest and tax 
US                                                                        (135)    (65)      (85)       (453)     (713) 
Non-US                                                                       46    (65)     (165)       (587)     (567) 
                                                                           (89)   (130)     (250)     (1,040)   (1,280) 
Non-operating items 
US                                                                        (303)    (62)     (268)       (475)     (559) 
Non-US                                                                      250    (50)     (914)         157     (932) 
                                                                           (53)   (112)   (1,182)       (318)   (1,491) 
Fair value accounting effects 
US                                                                            -       -         -           -         - 
Non-US                                                                      450     266         -         675         - 
                                                                            450     266         -         675         - 
RC profit (loss) before interest and tax 
US                                                                        (438)   (127)     (353)       (928)   (1,272) 
Non-US                                                                      746     151   (1,079)         245   (1,499) 
                                                                            308      24   (1,432)       (683)   (2,771)

Other businesses and corporate comprises our alternative energy business, shipping, treasury, BP ventures and corporate activities including centralized functions, and any residual costs of the Gulf of Mexico oil spill.

Financial results The replacement cost result before interest and tax for the fourth quarter and full year was a profit of USD308 million and a loss of USD683 million respectively, compared with a loss of USD1,432 million and USD2,771 million for the same periods in 2019.

The results include a net non-operating charge of USD53 million for the fourth quarter and USD318 million for the full year, compared with a charge of USD1,182 million and USD1,491 million for the same periods in 2019. Fair value accounting effects in the fourth quarter and full year had a favourable impact of USD450 million and USD675 million respectively. See page 28 for further information.

After adjusting for non-operating items and fair value accounting effects, the underlying replacement cost loss before interest and tax for the fourth quarter and full year was USD89 million and USD1,040 million respectively, compared with USD250 million and USD1,280 million for the same periods in 2019. The results include an uplift in valuation of a venture investment of USD229 million for the fourth quarter and USD284 million for the full year.

Alternative Energy BP's net ethanol-equivalent production* for the fourth quarter and full year averaged 14.9kb/d and 20.3kb/d respectively, compared with 11.6kb/d and 13.7kb/d for the 100% BP-owned business for the same periods in 2019. Net wind generation capacity* was 1,071MW at 31 December 2020, compared with 926MW at 31 December 2019. BP's net share of wind generation for the fourth quarter and full year was 902GWh and 2,806GWh respectively, compared with 785GWh and 2,752GWh for the same periods in 2019. In December Lightsource BP developed to FID the 163MW Elm Branch and 153MW Briar Creek projects in the US, 50MW South Lowfield and 21MW Thornham projects in the UK, taking their overall total capacity developed to FID to 1,403MW for the full year. In January 2021 BP and Equinor formed a strategic partnership to initially develop four projects in two existing leases located offshore New York and Massachusetts which together are expected to have a total generating capacity of 4.4GW. Early in January Empire Wind 2 and Beacon Wind 1 projects were selected to provide New York State with an additional 2.5GW of power and subject to negotiation of a purchase and sale agreement will take total secured power offtake agreements on the projects to 3.3GW which represents a material de-risking of the overall project. Beyond these initial projects, the strategic partnership expects to participate in future offshore wind developments in the US. In December, BP finalized its investment in India's Green Growth Equity Fund (GGEF) with an initial investment of USD30 million and a total commitment of USD70 million to the fund. The fund itself was established in 2018 and is focused on identifying, investing in and supporting growth in clean energy projects in India and is managed by Lightsource BP and Everstone Capital. We continue to progress our aim to build material renewable energy businesses by having developed 20GW of net renewable generating capacity to FID by 2025. Overall we have developed a total of 3.3GW of net renewable generating capacity to FID by 31 December 2020 across our businesses and are progressing a development pipeline with projects across nine countries totalling 11GW net BP. In addition our development teams are further evaluating potential options totalling over 20GW.

Outlook Other businesses and corporate charges for 2021, excluding non-operating items, fair value accounting effects and foreign exchange volatility impact, are expected to be USD1.2-1.4 billion although the quarterly charge may vary quarter to quarter. 


The commentary above contains forward-looking statements and should be read in conjunction with the cautionary 
statement on page 36.

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Financial statements

Group income statement 


                                                                          Fourth    Third   Fourth 
                                                                         quarter  quarter  quarter         Year      Year 
USD million                                                                   2020     2020     2019         2020      2019 
 
Sales and other operating revenues (Note 6)                             44,789   44,251   71,109      180,366   278,397 
Earnings from joint ventures - after interest and tax                      214       73      163        (302)       576 
Earnings from associates - after interest and tax                          575    (332)      640        (101)     2,681 
Interest and other income                                                  233      183      210          663       769 
Gains on sale of businesses and fixed assets                             2,757       27       48        2,874       193 
Total revenues and other income                                         48,568   44,202   72,170      183,500   282,616 
Purchases                                                               32,803   31,645   53,444      132,104   209,672 
Production and manufacturing expenses                                    6,111    5,073    5,809       22,494    21,815 
Production and similar taxes (Note 8)                                      228      140      412          695     1,547 
Depreciation, depletion and amortization (Note 7)                        3,426    3,467    4,434       14,889    17,780 
Impairment and losses on sale of businesses and fixed assets (Note 3)    1,168      294    3,657       14,381     8,075 
Exploration expense (Note 4)                                               214      190      266       10,280       964

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