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Form 20-F x Form 40-F ¨
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Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
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Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
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Page
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1.
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3-14, 29-34, 36-38
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2.
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15-28
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3.
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35
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4.
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36
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5.
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39
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6.
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40
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7
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41
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8
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42
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(a)
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In this Form 6-K, references to the half year 2020 and half year 2019 refer to the six-month periods ended 30 June 2020 and 30 June 2019 respectively. References to the second quarter 2020 and second quarter 2019 refer to the three-month periods ended 30 June 2020 and 30 June 2019 respectively.
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(b)
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This discussion should be read in conjunction with the consolidated financial statements and related notes provided elsewhere in this Form 6-K and with the information, including the consolidated financial statements and related notes, in BP’s Annual Report on Form 20-F for the year ended 31 December 2019.
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Group results second quarter and half year 2020
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Highlights
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Resetting for the future in face of difficult conditions
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–
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Loss for the quarter attributable to BP shareholders was $16.8 billion, compared with a profit of $1.8 billion for the same period a year earlier, including a net post-tax charge of $10.9 billion for non-operating items. This included $9.2 billion in post-tax non-cash impairments across the group largely arising from the revisions to its long-term price assumptions and $1.7 billion of post-tax non-cash exploration write-offs treated as non-operating items.
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–
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Underlying replacement cost loss for the quarter was $6.7 billion, compared with a profit of $2.8 billion for the same period a year earlier. The result was driven primarily by non-cash Upstream exploration write-offs – $6.5 billion after tax – principally resulting from a review of BP’s long-term strategic plans and revisions to long-term price assumptions, combined with the impact of lower oil and gas prices and very weak refining margins, reduced oil and gas production and much lower demand for fuels and lubricants. Oil trading delivered an exceptionally strong result.
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–
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Operating cash flow for the quarter was $3.7 billion including the impact of Gulf of Mexico oil spill payments(a). Gulf of Mexico oil spill payments in the quarter of $1.1 billion on a post-tax basis included the scheduled annual payment.
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–
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Total proceeds from divestments and other disposals received in the quarter were $1.1 billion. This included the first payment from the agreed sale of BP’s petrochemicals business to INEOS, which delivered BP’s plans for $15 billion of announced transactions a year earlier than expected. The sale of the upstream portion of BP’s Alaska business also completed at the end of the quarter.
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–
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Total capital expenditure in the first half of 2020 was $6.9 billion, compared with $11.3 billion for the same periods in 2019. Organic capital expenditure in the first half of 2020 was $6.6 billion, on track to meet BP’s revised full year expectation of around $12 billion, announced in April.
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–
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BP’s redesign of its organization to become leaner, faster moving and lower cost, including the announced reduction of around 10,000 jobs, is expected to make a significant contribution to the planned $2.5 billion reduction in annual cash costs by the end of 2021, relative to 2019. Restructuring costs of around $1.5 billion are expected to be recognized in 2020.
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–
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During the quarter BP issued $11.9 billion in hybrid bonds – a significant step in diversifying its capital structure, supporting its investment grade credit rating, and strengthening its finances.
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–
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Finance debt at 30 June 2020 was $76.0 billion, compared with $67.6 billion a year ago. Finance debt ratio at 30 June 2020 was 47.9%, compared with 39.5% a year ago. Net debt at the end of the quarter was $40.9 billion, $10.5 billion lower than in the first quarter. Gearing at the end of the quarter was 33.1% compared with 36.2% at the end of the previous quarter. This reflected the increase in equity associated with the issuance of hybrid bonds and the lower net debt, partly offset by the reduction in equity associated with the second-quarter loss.
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–
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A dividend of 5.25 cents per share was announced for the quarter, compared to 10.5 cents per share for the previous quarter. This dividend decision is aligned with BP’s new distribution policy announced separately today.
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(a)
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Operating cash flow excluding Gulf of Mexico oil spill payments is a measure used by management and BP believes it is useful as it allows for meaningful comparisons between reporting periods. It is not however disclosed in this SEC filing because SEC regulations do not permit the inclusion of this non-GAAP metric.
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Helge Lund – chairman:
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Together with our results, we are today announcing BP’s new strategy to deliver our net zero ambition, and a new investor proposition underpinned by a coherent financial frame. Our investor proposition includes a new distribution policy, which is designed to reward our investors with committed distributions, and which has informed the board’s decision on the dividend declared today for the second quarter of 2020.
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Financial summary
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Second
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Second
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First
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First
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|
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quarter
|
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quarter
|
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half
|
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half
|
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$ million
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2020
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2019
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2020
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2019
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Sales and other operating revenues
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31,676
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72,676
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91,326
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138,997
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Profit (loss) for the period attributable to BP shareholders
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(16,848
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)
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1,822
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(21,213
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)
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4,756
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Inventory holding (gains) losses, before tax
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(1,088
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)
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(81
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)
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3,796
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(1,169
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)
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Taxation charge (credit) on inventory holding gains and losses
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279
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34
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(868
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)
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283
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RC profit (loss)
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(17,657
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)
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1,775
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(18,285
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)
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3,870
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Net (favourable) adverse impact of non-operating items and fair value accounting effects, before tax
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14,566
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1,341
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15,930
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1,690
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Taxation charge (credit) on non-operating items and fair value accounting effects
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(3,591
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)
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(305
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)
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(3,536
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)
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(391
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)
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Underlying RC profit (loss)
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(6,682
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)
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2,811
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(5,891
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)
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5,169
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Profit (loss) per ordinary share (cents)
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(83.32
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)
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8.95
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(105.02
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)
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23.47
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Profit (loss) per ADS (dollars)
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(5.00
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)
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0.54
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(6.3
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)
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1.41
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RC profit (loss) per ordinary share (cents)
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(87.32
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)
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8.72
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(90.52
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)
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19.10
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RC profit (loss) per ADS (dollars)
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(5.24
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)
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0.52
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(5.43
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)
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1.15
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Underlying RC profit (loss) per ordinary share (cents)
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(33.05
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)
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13.82
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(29.17
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)
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25.51
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Underlying RC profit (loss) per ADS (dollars)
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(1.98
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)
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0.83
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(1.75
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)
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1.53
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Bernard Looney – chief executive officer:
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“These headline results have been driven by another very challenging quarter, but also by the deliberate steps we have taken as we continue to reimagine energy and reinvent bp. In particular, our reset of long-term price assumptions and the related impairment and exploration write-off charges had a major impact. Beneath these, however, our performance remained resilient, with good cash flow and – most importantly – safe and reliable operations.”
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–
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The ongoing severe impacts of the COVID-19 pandemic continue to create a volatile and challenging trading environment.
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–
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Looking ahead, the outlook for commodity prices and product demand remains challenging and uncertain.
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–
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Global GDP is expected to contract this year by 4-5%.
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–
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Global oil demand is expected to be around 8-9 million barrels of oil per day lower than 2019, with OECD oil stocks above their five-year range, and gas markets are likely to remain materially oversupplied. There is also a risk of the pandemic having an enduring impact on the global economy, with the potential for weaker demand for energy for a sustained period.
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–
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In July, refining margins remained under pressure, with RMM at $6.3/barrel due to lower product demand and high inventories, while BP refining utilization improved to above 80%. Retail fuel demand recovered in July to 10-15% lower than a year earlier, however, aviation fuel demand continued to be over 70% lower.
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–
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The pandemic is not expected to result in Upstream oil and gas outages but has impacted development of the Mad Dog 2, Tangguh Expansion, Trinidad Cassia Compression and Greater Tortue Ahmeyin Phase 1 major projects.
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–
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BP's future financial performance, including cash flows, net debt and gearing, will be impacted by the extent and duration of the current market conditions and the effectiveness of the actions that it and others take, including its financial interventions. It is difficult to predict when current supply and demand imbalances will be resolved and what the ultimate impact of COVID-19 will be.
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–
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BP continues to take deliberate steps to strengthen its finances and drive down its cash balance point.
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–
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These steps include issuing around $7 billion of bonds in April, issuing $12 billion in hybrid bonds in June, agreeing the $5 billion divestment of its petrochemicals business, and completing the sale of the upstream Alaska business. BP also reset its long-term price assumptions.
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–
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BP will continue to review these actions, and any further actions that may be appropriate, in response to changes in prevailing market conditions.
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–
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Organic capital expenditure was limited to $6.6 billion in the first half.
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–
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Net debt fell to $40.9 billion at quarter-end. BP had around $47 billion of liquidity, including cash and undrawn revolving credit facilities, at quarter end.
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–
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Costs that are directly attributable to COVID-19 were around $200 million for the quarter.
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–
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BP continues to monitor the impact of COVID-19 on global operations and to date there has been no direct significant operational impact, although this could change through the rest of the third quarter.
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–
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In the second quarter, Upstream production was curtailed as a result of market demand and OPEC+ restrictions, and refinery utilization was more than 10% below normal levels due to COVID-19 demand impacts.
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–
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Despite the significant challenges of the environment, BP’s operations continued safely and reliably in the quarter. BP-operated Upstream plant reliability was 95.5% and BP-operated refining availability was strong at 95.6%.
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–
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BP continues to take steps to protect and support its staff through the pandemic, including: reduced manning levels, changing working patterns, and deploying appropriate personal protective equipment (PPE), enhanced cleaning and social distancing measures at plants and retail sites. The great majority of BP staff who are able to work from home have done so since mid-March. Decisions on repopulating offices are taken with caution and in compliance with local and national guidelines and regulations.
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–
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BP is providing enhanced support and guidance to staff on safety, health and hygiene, homeworking and mental health.
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–
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BP continues to offer support in response to the pandemic in communities in which it operates.
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–
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Recent actions include: providing discounts to emergency service and health workers in the UK and US; donating PPE to health services; campaigning to promote the wearing of masks in Africa; and supporting staff in volunteering efforts, including matching employee donations to charities.
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The commentary above and following should be read in conjunction with the cautionary statement on page 39.
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The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 39.
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|
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Second
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Second
|
|
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First
|
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First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
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$ million
|
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2020
|
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2019
|
|
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2020
|
|
2019
|
|
|
Underlying RC profit (loss) before interest and tax
|
|
|
|
|
|
|
||||
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Upstream
|
|
(8,487
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)
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3,413
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|
|
(6,616
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)
|
6,341
|
|
|
Downstream
|
|
1,405
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|
1,365
|
|
|
2,326
|
|
3,098
|
|
|
Rosneft
|
|
(61
|
)
|
638
|
|
|
(78
|
)
|
1,205
|
|
|
Other businesses and corporate
|
|
(260
|
)
|
(290
|
)
|
|
(821
|
)
|
(708
|
)
|
|
Consolidation adjustment – UPII*
|
|
(46
|
)
|
34
|
|
|
132
|
|
21
|
|
|
Underlying RC profit (loss) before interest and tax
|
|
(7,449
|
)
|
5,160
|
|
|
(5,057
|
)
|
9,957
|
|
|
Finance costs and net finance expense relating to pensions and other post-retirement benefits
|
|
(677
|
)
|
(752
|
)
|
|
(1,345
|
)
|
(1,506
|
)
|
|
Taxation on an underlying RC basis
|
|
770
|
|
(1,515
|
)
|
|
(183
|
)
|
(3,135
|
)
|
|
Non-controlling interests
|
|
674
|
|
(82
|
)
|
|
694
|
|
(147
|
)
|
|
Underlying RC profit (loss) attributable to BP shareholders
|
|
(6,682
|
)
|
2,811
|
|
|
(5,891
|
)
|
5,169
|
|
|
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
$ million
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
RC profit (loss) before interest and tax
|
|
|
|
|
|
|
||||
|
Upstream
|
|
(22,008
|
)
|
2,469
|
|
|
(20,985
|
)
|
5,353
|
|
|
Downstream
|
|
594
|
|
1,288
|
|
|
1,258
|
|
3,053
|
|
|
Rosneft
|
|
(124
|
)
|
525
|
|
|
(141
|
)
|
1,011
|
|
|
Other businesses and corporate
|
|
(317
|
)
|
(381
|
)
|
|
(1,015
|
)
|
(927
|
)
|
|
Consolidation adjustment – UPII
|
|
(46
|
)
|
34
|
|
|
132
|
|
21
|
|
|
RC profit (loss) before interest and tax
|
|
(21,901
|
)
|
3,935
|
|
|
(20,751
|
)
|
8,511
|
|
|
Finance costs and net finance expense relating to pensions and other post-retirement benefits
|
|
(791
|
)
|
(868
|
)
|
|
(1,581
|
)
|
(1,750
|
)
|
|
Taxation on a RC basis
|
|
4,361
|
|
(1,210
|
)
|
|
3,353
|
|
(2,744
|
)
|
|
Non-controlling interests
|
|
674
|
|
(82
|
)
|
|
694
|
|
(147
|
)
|
|
RC profit (loss) attributable to BP shareholders
|
|
(17,657
|
)
|
1,775
|
|
|
(18,285
|
)
|
3,870
|
|
|
Inventory holding gains (losses)*
|
|
1,088
|
|
81
|
|
|
(3,796
|
)
|
1,169
|
|
|
Taxation (charge) credit on inventory holding gains and losses
|
|
(279
|
)
|
(34
|
)
|
|
868
|
|
(283
|
)
|
|
Profit (loss) for the period attributable to BP shareholders
|
|
(16,848
|
)
|
1,822
|
|
|
(21,213
|
)
|
4,756
|
|
|
Operating metrics
|
|
First half 2020
|
|
Financial metrics
|
|
First half 2020
|
|
|
(vs. First half 2019)
|
|
|
(vs. First half 2019)
|
||
|
Tier 1 and tier 2 process safety events
|
|
47
|
|
Underlying RC profit (loss)*i
|
|
$(5.9)bn
|
|
|
(-2)
|
|
|
(-$11.1bn)
|
||
|
Reported recordable injury frequency*
|
|
0.131
|
|
Operating cash flow excluding Gulf of Mexico oil spill payments (post-tax)
|
|
(b)
|
|
|
(-29.8%)
|
|
|
|
||
|
Group production
|
|
3,655mboe/d
|
|
Organic capital expenditureii
|
|
$6.6bn
|
|
|
(-3.5%)
|
|
|
(-$0.8bn)
|
||
|
Upstream production (excludes Rosneft segment)
|
|
2,552mboe/d
|
|
Gulf of Mexico oil spill payments (post-tax)
|
|
$1.4bn
|
|
|
(-3.3%)
|
|
|
(-$0.7bn)
|
||
|
Upstream unit production costs*(a)
|
|
$6.13/boe
|
|
Divestment proceeds*
|
|
$1.4bn
|
|
|
(-12.6%)
|
|
|
(+$0.7bn)
|
||
|
BP-operated Upstream plant reliability*
|
|
94.2%
|
|
Gearingiii
|
|
33.1%
|
|
|
(-0.7)
|
|
|
(+2.1)
|
||
|
BP-operated refining availability*
|
|
95.9%
|
|
Dividend per ordinary share(c)
|
|
5.25 cents
|
|
|
(+2.0)
|
|
|
(-48.8%)
|
||
|
(a)
|
Reflecting divestment impacts and lower costs.
|
|
(b)
|
SEC regulations do not permit inclusion of this non-GAAP metric in this SEC filing. Operating cash flow excluding Gulf of Mexico oil spill payments is calculated by excluding post-tax payments relating to the Gulf of Mexico oil spill from net cash provided by operating activities, as reported in the condensed group cash flow statement. For the half year, net cash provided by operating activities was $5 billion and post-tax Gulf of Mexico oil spill payments were $1.4 billion.
|
|
(c)
|
Represents dividend announced in the quarter (vs. prior year quarter).
|
|
Nearest GAAP equivalent measures
|
||
|
i
|
(Loss) for the period att. to BP shareholders:
|
$(21.2)bn
|
|
ii
|
Capital expenditure*:
|
$6.9bn
|
|
iii
|
Finance debt ratio*:
|
47.9%
|
|
The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 39.
|
|
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
$ million
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
Sales and other operating revenues(a)
|
|
7,194
|
|
13,556
|
|
|
18,658
|
|
28,150
|
|
|
Profit (loss) before interest and tax
|
|
(21,951
|
)
|
2,459
|
|
|
(20,996
|
)
|
5,345
|
|
|
Inventory holding (gains) losses*
|
|
(57
|
)
|
10
|
|
|
11
|
|
8
|
|
|
RC profit (loss) before interest and tax
|
|
(22,008
|
)
|
2,469
|
|
|
(20,985
|
)
|
5,353
|
|
|
Net (favourable) adverse impact of non-operating items* and fair value accounting effects*
|
|
13,521
|
|
944
|
|
|
14,369
|
|
988
|
|
|
Underlying RC profit (loss) before interest and tax*(b)
|
|
(8,487
|
)
|
3,413
|
|
|
(6,616
|
)
|
6,341
|
|
|
(a)
|
Includes sales to other segments.
|
|
(b)
|
See page 10 for a reconciliation to segment RC profit before interest and tax by region.
|
|
The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 39.
|
|
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
$ million
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
Underlying RC profit (loss) before interest and tax
|
|
|
|
|
|
|
||||
|
US
|
|
(2,960
|
)
|
861
|
|
|
(2,421
|
)
|
1,473
|
|
|
Non-US
|
|
(5,527
|
)
|
2,552
|
|
|
(4,195
|
)
|
4,868
|
|
|
|
|
(8,487
|
)
|
3,413
|
|
|
(6,616
|
)
|
6,341
|
|
|
Non-operating items(a)(b)
|
|
|
|
|
|
|
||||
|
US
|
|
(2,122
|
)
|
(446
|
)
|
|
(2,754
|
)
|
(476
|
)
|
|
Non-US
|
|
(11,332
|
)
|
(320
|
)
|
|
(11,771
|
)
|
(294
|
)
|
|
|
|
(13,454
|
)
|
(766
|
)
|
|
(14,525
|
)
|
(770
|
)
|
|
Fair value accounting effects
|
|
|
|
|
|
|
||||
|
US
|
|
39
|
|
(225
|
)
|
|
37
|
|
(318
|
)
|
|
Non-US
|
|
(106
|
)
|
47
|
|
|
119
|
|
100
|
|
|
|
|
(67
|
)
|
(178
|
)
|
|
156
|
|
(218
|
)
|
|
RC profit (loss) before interest and tax
|
|
|
|
|
|
|
||||
|
US
|
|
(5,043
|
)
|
190
|
|
|
(5,138
|
)
|
679
|
|
|
Non-US
|
|
(16,965
|
)
|
2,279
|
|
|
(15,847
|
)
|
4,674
|
|
|
|
|
(22,008
|
)
|
2,469
|
|
|
(20,985
|
)
|
5,353
|
|
|
Exploration expense
|
|
|
|
|
|
|
||||
|
US
|
|
2,560
|
|
69
|
|
|
2,580
|
|
94
|
|
|
Non-US
|
|
7,114
|
|
77
|
|
|
7,296
|
|
419
|
|
|
|
|
9,674
|
|
146
|
|
|
9,876
|
|
513
|
|
|
Of which: Exploration expenditure written off(b)
|
|
9,618
|
|
77
|
|
|
9,716
|
|
361
|
|
|
Production (net of royalties)(c)(d)
|
|
|
|
|
|
|
||||
|
Liquids* (mb/d)
|
|
|
|
|
|
|
||||
|
US
|
|
472
|
|
506
|
|
|
488
|
|
480
|
|
|
Europe
|
|
166
|
|
137
|
|
|
156
|
|
148
|
|
|
Rest of World
|
|
728
|
|
658
|
|
|
691
|
|
672
|
|
|
|
|
1,366
|
|
1,301
|
|
|
1,336
|
|
1,300
|
|
|
Of which equity-accounted entities
|
|
146
|
|
130
|
|
|
146
|
|
134
|
|
|
Natural gas (mmcf/d)
|
|
|
|
|
|
|
||||
|
US
|
|
1,549
|
|
2,410
|
|
|
1,799
|
|
2,360
|
|
|
Europe
|
|
298
|
|
132
|
|
|
271
|
|
139
|
|
|
Rest of World
|
|
4,878
|
|
5,138
|
|
|
4,985
|
|
5,276
|
|
|
|
|
6,725
|
|
7,680
|
|
|
7,056
|
|
7,775
|
|
|
Of which equity-accounted entities
|
|
467
|
|
454
|
|
|
478
|
|
457
|
|
|
Total hydrocarbons* (mboe/d)
|
|
|
|
|
|
|
||||
|
US
|
|
739
|
|
921
|
|
|
799
|
|
887
|
|
|
Europe
|
|
217
|
|
160
|
|
|
203
|
|
172
|
|
|
Rest of World
|
|
1,569
|
|
1,544
|
|
|
1,551
|
|
1,581
|
|
|
|
|
2,525
|
|
2,625
|
|
|
2,552
|
|
2,640
|
|
|
Of which equity-accounted entities
|
|
227
|
|
209
|
|
|
228
|
|
212
|
|
|
Average realizations*(e)
|
|
|
|
|
|
|
||||
|
Total liquids(e) ($/bbl)
|
|
22.75
|
|
62.63
|
|
|
34.39
|
|
59.61
|
|
|
Natural gas ($/mcf)
|
|
2.53
|
|
3.35
|
|
|
2.69
|
|
3.68
|
|
|
Total hydrocarbons ($/boe)
|
|
19.06
|
|
40.64
|
|
|
25.36
|
|
40.02
|
|
|
(a)
|
Second quarter 2020 principally relates to impairments in a number of our businesses resulting from the revisions to BP’s long-term price assumptions. Half year 2020 includes impairment charges and loss principally related to the disposal of our Alaska business, BPX Energy assets and oil price impacts in the UK North Sea. Second quarter and first half 2019 include impairment charges related to the disposal of BPX Energy assets and GUPCO divestment. See Note 3 for further information.
|
|
(b)
|
Second quarter 2020 includes the write-off of $1,969 million relating to value ascribed to certain licences as part of the accounting for the acquisition of upstream assets in Brazil, India and the Gulf of Mexico. This has been classified within the ‘other’ category of non-operating items. See Note 4 for further information.
|
|
(c)
|
Includes BP’s share of production of equity-accounted entities in the Upstream segment.
|
|
(d)
|
Because of rounding, some totals may not agree exactly with the sum of their component parts.
|
|
(e)
|
Realizations are based on sales by consolidated subsidiaries only – this excludes equity-accounted entities.
|
|
(f)
|
Includes condensate, natural gas liquids and bitumen.
|
|
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
$ million
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
Sales and other operating revenues(a)
|
|
27,241
|
|
66,396
|
|
|
81,205
|
|
124,812
|
|
|
Profit (loss) before interest and tax
|
|
1,572
|
|
1,381
|
|
|
(2,379
|
)
|
4,192
|
|
|
Inventory holding (gains) losses*
|
|
(978
|
)
|
(93
|
)
|
|
3,637
|
|
(1,139
|
)
|
|
RC profit before interest and tax
|
|
594
|
|
1,288
|
|
|
1,258
|
|
3,053
|
|
|
Net (favourable) adverse impact of non-operating items* and fair value accounting effects*
|
|
811
|
|
77
|
|
|
1,068
|
|
45
|
|
|
Underlying RC profit before interest and tax*(b)
|
|
1,405
|
|
1,365
|
|
|
2,326
|
|
3,098
|
|
|
(a)
|
Includes sales to other segments.
|
|
(b)
|
See page 12 for a reconciliation to segment RC profit before interest and tax by region and by business.
|
|
The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 39.
|
|
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
$ million
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
Underlying RC profit before interest and tax - by region
|
|
|
|
|
|
|
||||
|
US
|
|
719
|
|
566
|
|
|
1,276
|
|
1,097
|
|
|
Non-US
|
|
686
|
|
799
|
|
|
1,050
|
|
2,001
|
|
|
|
|
1,405
|
|
1,365
|
|
|
2,326
|
|
3,098
|
|
|
Non-operating items
|
|
|
|
|
|
|
||||
|
US
|
|
(69
|
)
|
2
|
|
|
(63
|
)
|
3
|
|
|
Non-US
|
|
(711
|
)
|
(33
|
)
|
|
(715
|
)
|
(38
|
)
|
|
|
|
(780
|
)
|
(31
|
)
|
|
(778
|
)
|
(35
|
)
|
|
Fair value accounting effects(a)
|
|
|
|
|
|
|
||||
|
US
|
|
(71
|
)
|
8
|
|
|
74
|
|
69
|
|
|
Non-US
|
|
40
|
|
(54
|
)
|
|
(364
|
)
|
(79
|
)
|
|
|
|
(31
|
)
|
(46
|
)
|
|
(290
|
)
|
(10
|
)
|
|
RC profit before interest and tax
|
|
|
|
|
|
|
||||
|
US
|
|
579
|
|
576
|
|
|
1,287
|
|
1,169
|
|
|
Non-US
|
|
15
|
|
712
|
|
|
(29
|
)
|
1,884
|
|
|
|
|
594
|
|
1,288
|
|
|
1,258
|
|
3,053
|
|
|
Underlying RC profit before interest and tax - by business(b)(c)
|
|
|
|
|
|
|
||||
|
Fuels
|
|
1,295
|
|
961
|
|
|
1,984
|
|
2,253
|
|
|
Lubricants
|
|
63
|
|
321
|
|
|
230
|
|
593
|
|
|
Petrochemicals
|
|
47
|
|
83
|
|
|
112
|
|
252
|
|
|
|
|
1,405
|
|
1,365
|
|
|
2,326
|
|
3,098
|
|
|
Non-operating items and fair value accounting effects(a)
|
|
|
|
|
|
|
||||
|
Fuels
|
|
(748
|
)
|
(99
|
)
|
|
(1,005
|
)
|
(62
|
)
|
|
Lubricants
|
|
(51
|
)
|
22
|
|
|
(51
|
)
|
18
|
|
|
Petrochemicals
|
|
(12
|
)
|
—
|
|
|
(12
|
)
|
(1
|
)
|
|
|
|
(811
|
)
|
(77
|
)
|
|
(1,068
|
)
|
(45
|
)
|
|
RC profit before interest and tax(b)(c)
|
|
|
|
|
|
|
||||
|
Fuels
|
|
547
|
|
862
|
|
|
979
|
|
2,191
|
|
|
Lubricants
|
|
12
|
|
343
|
|
|
179
|
|
611
|
|
|
Petrochemicals
|
|
35
|
|
83
|
|
|
100
|
|
251
|
|
|
|
|
594
|
|
1,288
|
|
|
1,258
|
|
3,053
|
|
|
|
|
|
|
|
|
|
||||
|
BP average refining marker margin (RMM)* ($/bbl)
|
|
5.9
|
|
15.2
|
|
|
7.4
|
|
12.7
|
|
|
|
|
|
|
|
|
|
||||
|
Refinery throughputs (mb/d)
|
|
|
|
|
|
|
||||
|
US
|
|
614
|
|
673
|
|
|
681
|
|
703
|
|
|
Europe
|
|
716
|
|
715
|
|
|
776
|
|
741
|
|
|
Rest of World
|
|
157
|
|
209
|
|
|
190
|
|
223
|
|
|
|
|
1,487
|
|
1,597
|
|
|
1,647
|
|
1,667
|
|
|
BP-operated refining availability* (%)
|
|
95.6
|
|
93.4
|
|
|
95.9
|
|
93.9
|
|
|
|
|
|
|
|
|
|
||||
|
Marketing sales of refined products (mb/d)
|
|
|
|
|
|
|
||||
|
US
|
|
872
|
|
1,174
|
|
|
955
|
|
1,126
|
|
|
Europe
|
|
685
|
|
1,091
|
|
|
820
|
|
1,042
|
|
|
Rest of World
|
|
364
|
|
520
|
|
|
441
|
|
520
|
|
|
|
|
1,921
|
|
2,785
|
|
|
2,216
|
|
2,688
|
|
|
Trading/supply sales of refined products
|
|
3,172
|
|
3,099
|
|
|
3,274
|
|
3,197
|
|
|
Total sales volumes of refined products
|
|
5,093
|
|
5,884
|
|
|
5,490
|
|
5,885
|
|
|
|
|
|
|
|
|
|
||||
|
Petrochemicals production (kte)
|
|
|
|
|
|
|
||||
|
US
|
|
410
|
|
584
|
|
|
1,021
|
|
1,185
|
|
|
Europe
|
|
1,246
|
|
1,226
|
|
|
2,617
|
|
2,386
|
|
|
Rest of World
|
|
1,271
|
|
1,156
|
|
|
2,424
|
|
2,455
|
|
|
|
|
2,927
|
|
2,966
|
|
|
6,062
|
|
6,026
|
|
|
(a)
|
For Downstream, fair value accounting effects arise solely in the fuels business. See page 31 for further information.
|
|
(b)
|
Segment-level overhead expenses are included in the fuels business result.
|
|
(c)
|
Results from petrochemicals at our Gelsenkirchen and Mülheim sites in Germany are reported in the fuels business.
|
|
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
$ million
|
|
2020(a)
|
|
2019
|
|
|
2020(a)
|
|
2019
|
|
|
Profit (loss) before interest and tax(b)(c)
|
|
(71
|
)
|
523
|
|
|
(289
|
)
|
1,049
|
|
|
Inventory holding (gains) losses*
|
|
(53
|
)
|
2
|
|
|
148
|
|
(38
|
)
|
|
RC profit (loss) before interest and tax
|
|
(124
|
)
|
525
|
|
|
(141
|
)
|
1,011
|
|
|
Net charge (credit) for non-operating items*
|
|
63
|
|
113
|
|
|
63
|
|
194
|
|
|
Underlying RC profit (loss) before interest and tax*
|
|
(61
|
)
|
638
|
|
|
(78
|
)
|
1,205
|
|
|
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
|
|
2020(a)
|
|
2019
|
|
|
2020(a)
|
|
2019
|
|
|
Production (net of royalties) (BP share)
|
|
|
|
|
|
|
||||
|
Liquids* (mb/d)
|
|
856
|
|
912
|
|
|
886
|
|
924
|
|
|
Natural gas (mmcf/d)
|
|
1,248
|
|
1,250
|
|
|
1,261
|
|
1,288
|
|
|
Total hydrocarbons* (mboe/d)
|
|
1,071
|
|
1,127
|
|
|
1,103
|
|
1,146
|
|
|
(a)
|
The operational and financial information of the Rosneft segment for the second quarter and half year is based on preliminary operational and financial results of Rosneft for the three months and six months ended 30 June 2020. Actual results may differ from these amounts. Amounts reported for the second quarter are based on BP’s 21.2% average economic interest for the quarter and include adjustments to reflect the finalization of Rosneft’s first quarter results. Amounts reported for the first quarter and all comparative periods are based on BP’s 19.75% economic interest.
|
|
(b)
|
The Rosneft segment result includes equity-accounted earnings arising from BP’s economic interest in Rosneft for the second quarter 2020 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.
|
|
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
$ million
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
Sales and other operating revenues(a)
|
|
450
|
|
433
|
|
|
903
|
|
789
|
|
|
Profit (loss) before interest and tax
|
|
(317
|
)
|
(381
|
)
|
|
(1,015
|
)
|
(927
|
)
|
|
Inventory holding (gains) losses*
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
RC profit (loss) before interest and tax
|
|
(317
|
)
|
(381
|
)
|
|
(1,015
|
)
|
(927
|
)
|
|
Net (favourable) adverse impact of non-operating items* and fair value accounting effects*
|
|
57
|
|
91
|
|
|
194
|
|
219
|
|
|
Underlying RC profit (loss) before interest and tax*
|
|
(260
|
)
|
(290
|
)
|
|
(821
|
)
|
(708
|
)
|
|
Underlying RC profit (loss) before interest and tax
|
|
|
|
|
|
|
||||
|
US
|
|
(129
|
)
|
(224
|
)
|
|
(253
|
)
|
(379
|
)
|
|
Non-US
|
|
(131
|
)
|
(66
|
)
|
|
(568
|
)
|
(329
|
)
|
|
|
|
(260
|
)
|
(290
|
)
|
|
(821
|
)
|
(708
|
)
|
|
Non-operating items
|
|
|
|
|
|
|
||||
|
US
|
|
(62
|
)
|
(78
|
)
|
|
(110
|
)
|
(206
|
)
|
|
Non-US
|
|
46
|
|
(13
|
)
|
|
(43
|
)
|
(13
|
)
|
|
|
|
(16
|
)
|
(91
|
)
|
|
(153
|
)
|
(219
|
)
|
|
Fair value accounting effects
|
|
|
|
|
|
|
||||
|
US
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
Non-US
|
|
(41
|
)
|
—
|
|
|
(41
|
)
|
—
|
|
|
|
|
(41
|
)
|
—
|
|
|
(41
|
)
|
—
|
|
|
RC profit (loss) before interest and tax
|
|
|
|
|
|
|
||||
|
US
|
|
(191
|
)
|
(302
|
)
|
|
(363
|
)
|
(585
|
)
|
|
Non-US
|
|
(126
|
)
|
(79
|
)
|
|
(652
|
)
|
(342
|
)
|
|
|
|
(317
|
)
|
(381
|
)
|
|
(1,015
|
)
|
(927
|
)
|
|
(a)
|
Includes sales to other segments.
|
|
The commentary above contains forward-looking statements and should be read in conjunction with the cautionary statement on page 39.
|
|
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
$ million
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
||||
|
Sales and other operating revenues (Note 6)
|
|
31,676
|
|
72,676
|
|
|
91,326
|
|
138,997
|
|
|
Earnings from joint ventures – after interest and tax
|
|
(567
|
)
|
138
|
|
|
(589
|
)
|
323
|
|
|
Earnings from associates – after interest and tax
|
|
(100
|
)
|
608
|
|
|
(344
|
)
|
1,257
|
|
|
Interest and other income
|
|
107
|
|
270
|
|
|
247
|
|
433
|
|
|
Gains on sale of businesses and fixed assets
|
|
74
|
|
55
|
|
|
90
|
|
144
|
|
|
Total revenues and other income
|
|
31,190
|
|
73,747
|
|
|
90,730
|
|
141,154
|
|
|
Purchases
|
|
18,778
|
|
55,683
|
|
|
67,656
|
|
103,955
|
|
|
Production and manufacturing expenses
|
|
5,211
|
|
5,391
|
|
|
11,310
|
|
10,747
|
|
|
Production and similar taxes (Note 8)
|
|
124
|
|
371
|
|
|
327
|
|
795
|
|
|
Depreciation, depletion and amortization (Note 7)
|
|
3,937
|
|
4,588
|
|
|
7,996
|
|
9,049
|
|
|
Impairment and losses on sale of businesses and fixed assets (Note 3)
|
|
11,770
|
|
906
|
|
|
12,919
|
|
1,002
|
|
|
Exploration expense (Note 4)
|
|
9,674
|
|
146
|
|
|
9,876
|
|
513
|
|
|
Distribution and administration expenses
|
|
2,509
|
|
2,646
|
|
|
5,193
|
|
5,413
|
|
|
Profit (loss) before interest and taxation
|
|
(20,813
|
)
|
4,016
|
|
|
(24,547
|
)
|
9,680
|
|
|
Finance costs
|
|
783
|
|
853
|
|
|
1,566
|
|
1,720
|
|
|
Net finance expense relating to pensions and other post-retirement benefits
|
|
8
|
|
15
|
|
|
15
|
|
30
|
|
|
Profit (loss) before taxation
|
|
(21,604
|
)
|
3,148
|
|
|
(26,128
|
)
|
7,930
|
|
|
Taxation
|
|
(4,082
|
)
|
1,244
|
|
|
(4,221
|
)
|
3,027
|
|
|
Profit (loss) for the period
|
|
(17,522
|
)
|
1,904
|
|
|
(21,907
|
)
|
4,903
|
|
|
Attributable to
|
|
|
|
|
|
|
||||
|
BP shareholders
|
|
(16,848
|
)
|
1,822
|
|
|
(21,213
|
)
|
4,756
|
|
|
Non-controlling interests
|
|
(674
|
)
|
82
|
|
|
(694
|
)
|
147
|
|
|
|
|
(17,522
|
)
|
1,904
|
|
|
(21,907
|
)
|
4,903
|
|
|
|
|
|
|
|
|
|
||||
|
Earnings per share (Note 9)
|
|
|
|
|
|
|
||||
|
Profit (loss) for the period attributable to BP shareholders
|
|
|
|
|
|
|
||||
|
Per ordinary share (cents)
|
|
|
|
|
|
|
||||
|
Basic
|
|
(83.32
|
)
|
8.95
|
|
|
(105.02
|
)
|
23.47
|
|
|
Diluted
|
|
(83.32
|
)
|
8.92
|
|
|
(105.02
|
)
|
23.35
|
|
|
Per ADS (dollars)
|
|
|
|
|
|
|
||||
|
Basic
|
|
(5.00
|
)
|
0.54
|
|
|
(6.30
|
)
|
1.41
|
|
|
Diluted
|
|
(5.00
|
)
|
0.54
|
|
|
(6.30
|
)
|
1.40
|
|
|
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
$ million
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
||||
|
Profit (loss) for the period
|
|
(17,522
|
)
|
1,904
|
|
|
(21,907
|
)
|
4,903
|
|
|
Other comprehensive income
|
|
|
|
|
|
|
||||
|
Items that may be reclassified subsequently to profit or loss
|
|
|
|
|
|
|
||||
|
Currency translation differences(a)
|
|
1,371
|
|
131
|
|
|
(3,271
|
)
|
1,120
|
|
|
Exchange (gains) losses on translation of foreign operations reclassified to gain or loss on sale of businesses and fixed assets
|
|
3
|
|
—
|
|
|
4
|
|
—
|
|
|
Cash flow hedges and costs of hedging
|
|
68
|
|
133
|
|
|
153
|
|
152
|
|
|
Share of items relating to equity-accounted entities, net of tax
|
|
(333
|
)
|
(30
|
)
|
|
109
|
|
(80
|
)
|
|
Income tax relating to items that may be reclassified
|
|
(37
|
)
|
(9
|
)
|
|
80
|
|
(43
|
)
|
|
|
|
1,072
|
|
225
|
|
|
(2,925
|
)
|
1,149
|
|
|
Items that will not be reclassified to profit or loss
|
|
|
|
|
|
|
||||
|
Remeasurements of the net pension and other post-retirement benefit liability or asset(b)
|
|
(1,960
|
)
|
(39
|
)
|
|
(241
|
)
|
(892
|
)
|
|
Cash flow hedges that will subsequently be transferred to the balance sheet
|
|
(2
|
)
|
(7
|
)
|
|
(10
|
)
|
1
|
|
|
Income tax relating to items that will not be reclassified
|
|
623
|
|
2
|
|
|
—
|
|
275
|
|
|
|
|
(1,339
|
)
|
(44
|
)
|
|
(251
|
)
|
(616
|
)
|
|
Other comprehensive income
|
|
(267
|
)
|
181
|
|
|
(3,176
|
)
|
533
|
|
|
Total comprehensive income
|
|
(17,789
|
)
|
2,085
|
|
|
(25,083
|
)
|
5,436
|
|
|
Attributable to
|
|
|
|
|
|
|
||||
|
BP shareholders
|
|
(17,142
|
)
|
2,001
|
|
|
(24,359
|
)
|
5,282
|
|
|
Non-controlling interests
|
|
(647
|
)
|
84
|
|
|
(724
|
)
|
154
|
|
|
|
|
(17,789
|
)
|
2,085
|
|
|
(25,083
|
)
|
5,436
|
|
|
(a)
|
Second quarter and half year 2020 was principally affected by movements in the Russian rouble against the US dollar.
|
|
(b)
|
See Note 1 for further information.
|
|
|
|
BP shareholders’
|
|
Non-controlling interests
|
|
Total
|
|
||
|
$ million
|
|
equity
|
|
Hybrid bonds
|
|
Other interest
|
|
equity
|
|
|
At 1 January 2020
|
|
98,412
|
|
—
|
|
2,296
|
|
100,708
|
|
|
|
|
|
|
|
|
||||
|
Total comprehensive income
|
|
(24,359
|
)
|
—
|
|
(724
|
)
|
(25,083
|
)
|
|
Dividends
|
|
(4,242
|
)
|
—
|
|
(105
|
)
|
(4,347
|
)
|
|
Cash flow hedges transferred to the balance sheet, net of tax
|
|
6
|
|
—
|
|
—
|
|
6
|
|
|
Repurchase of ordinary share capital
|
|
(776
|
)
|
—
|
|
—
|
|
(776
|
)
|
|
Share-based payments, net of tax
|
|
342
|
|
—
|
|
—
|
|
342
|
|
|
Share of equity-accounted entities’ changes in equity, net of tax
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
Issue of perpetual hybrid bonds
|
|
(48
|
)
|
11,909
|
|
—
|
|
11,861
|
|
|
Transactions involving non-controlling interests, net of tax
|
|
(471
|
)
|
—
|
|
571
|
|
100
|
|
|
At 30 June 2020
|
|
68,864
|
|
11,909
|
|
2,038
|
|
82,811
|
|
|
|
|
|
|
|
|
||||
|
|
|
BP shareholders’
|
|
Non-controlling interests
|
|
Total
|
|
||
|
$ million
|
|
equity
|
|
Hybrid bonds
|
|
Other interest
|
|
equity
|
|
|
At 31 December 2018
|
|
99,444
|
|
—
|
|
2,104
|
|
101,548
|
|
|
Adjustment on adoption of IFRS 16, net of tax(a)
|
|
(329
|
)
|
—
|
|
(1
|
)
|
(330
|
)
|
|
At 1 January 2019
|
|
99,115
|
|
—
|
|
2,103
|
|
101,218
|
|
|
|
|
|
|
|
|
||||
|
Total comprehensive income
|
|
5,282
|
|
—
|
|
154
|
|
5,436
|
|
|
Dividends
|
|
(3,200
|
)
|
—
|
|
(119
|
)
|
(3,319
|
)
|
|
Cash flow hedges transferred to the balance sheet, net of tax
|
|
12
|
|
—
|
|
—
|
|
12
|
|
|
Repurchase of ordinary share capital
|
|
(125
|
)
|
—
|
|
—
|
|
(125
|
)
|
|
Share-based payments, net of tax
|
|
398
|
|
—
|
|
—
|
|
398
|
|
|
Share of equity-accounted entities’ changes in equity, net of tax
|
|
3
|
|
—
|
|
—
|
|
3
|
|
|
At 30 June 2019
|
|
101,485
|
|
—
|
|
2,138
|
|
103,623
|
|
|
(a)
|
See Note 1 in BP Annual Report and Form 20-F 2019 for further information.
|
|
|
|
30 June
|
|
31 December
|
|
|
$ million
|
|
2020
|
|
2019
|
|
|
Non-current assets
|
|
|
|
||
|
Property, plant and equipment
|
|
117,208
|
|
132,642
|
|
|
Goodwill
|
|
12,352
|
|
11,868
|
|
|
Intangible assets
|
|
5,987
|
|
15,539
|
|
|
Investments in joint ventures
|
|
8,015
|
|
9,991
|
|
|
Investments in associates
|
|
16,982
|
|
20,334
|
|
|
Other investments
|
|
2,559
|
|
1,276
|
|
|
Fixed assets
|
|
163,103
|
|
191,650
|
|
|
Loans
|
|
724
|
|
630
|
|
|
Trade and other receivables
|
|
4,270
|
|
2,147
|
|
|
Derivative financial instruments
|
|
7,381
|
|
6,314
|
|
|
Prepayments
|
|
495
|
|
781
|
|
|
Deferred tax assets
|
|
6,891
|
|
4,560
|
|
|
Defined benefit pension plan surpluses
|
|
6,346
|
|
7,053
|
|
|
|
|
189,210
|
|
213,135
|
|
|
Current assets
|
|
|
|
||
|
Loans
|
|
370
|
|
339
|
|
|
Inventories
|
|
12,504
|
|
20,880
|
|
|
Trade and other receivables
|
|
16,522
|
|
24,442
|
|
|
Derivative financial instruments
|
|
4,751
|
|
4,153
|
|
|
Prepayments
|
|
679
|
|
857
|
|
|
Current tax receivable
|
|
637
|
|
1,282
|
|
|
Other investments
|
|
122
|
|
169
|
|
|
Cash and cash equivalents
|
|
34,217
|
|
22,472
|
|
|
|
|
69,802
|
|
74,594
|
|
|
Assets classified as held for sale (Note 2)
|
|
4,169
|
|
7,465
|
|
|
|
|
73,971
|
|
82,059
|
|
|
Total assets
|
|
263,181
|
|
295,194
|
|
|
Current liabilities
|
|
|
|
||
|
Trade and other payables
|
|
32,134
|
|
46,829
|
|
|
Derivative financial instruments
|
|
3,678
|
|
3,261
|
|
|
Accruals
|
|
3,670
|
|
5,066
|
|
|
Lease liabilities
|
|
1,958
|
|
2,067
|
|
|
Finance debt
|
|
11,452
|
|
10,487
|
|
|
Current tax payable
|
|
1,159
|
|
2,039
|
|
|
Provisions
|
|
2,074
|
|
2,453
|
|
|
|
|
56,125
|
|
72,202
|
|
|
Liabilities directly associated with assets classified as held for sale (Note 2)
|
|
948
|
|
1,393
|
|
|
|
|
57,073
|
|
73,595
|
|
|
Non-current liabilities
|
|
|
|
||
|
Other payables
|
|
11,777
|
|
12,626
|
|
|
Derivative financial instruments
|
|
5,652
|
|
5,537
|
|
|
Accruals
|
|
936
|
|
996
|
|
|
Lease liabilities
|
|
7,373
|
|
7,655
|
|
|
Finance debt
|
|
64,527
|
|
57,237
|
|
|
Deferred tax liabilities
|
|
6,585
|
|
9,750
|
|
|
Provisions
|
|
17,986
|
|
18,498
|
|
|
Defined benefit pension plan and other post-retirement benefit plan deficits
|
|
8,461
|
|
8,592
|
|
|
|
|
123,297
|
|
120,891
|
|
|
Total liabilities
|
|
180,370
|
|
194,486
|
|
|
Net assets
|
|
82,811
|
|
100,708
|
|
|
Equity
|
|
|
|
||
|
BP shareholders’ equity
|
|
68,864
|
|
98,412
|
|
|
Non-controlling interests
|
|
13,947
|
|
2,296
|
|
|
Total equity
|
|
82,811
|
|
100,708
|
|
|
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
$ million
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
Operating activities
|
|
|
|
|
|
|
||||
|
Profit (loss) before taxation
|
|
(21,604
|
)
|
3,148
|
|
|
(26,128
|
)
|
7,930
|
|
|
Adjustments to reconcile profit (loss) before taxation to net cash provided by operating activities
|
|
|
|
|
|
|
||||
|
Depreciation, depletion and amortization and exploration expenditure written off
|
|
13,555
|
|
4,665
|
|
|
17,712
|
|
9,410
|
|
|
Impairment and (gain) loss on sale of businesses and fixed assets
|
|
11,696
|
|
851
|
|
|
12,829
|
|
858
|
|
|
Earnings from equity-accounted entities, less dividends received
|
|
860
|
|
(395
|
)
|
|
1,365
|
|
(984
|
)
|
|
Net charge for interest and other finance expense, less net interest paid
|
|
17
|
|
62
|
|
|
154
|
|
150
|
|
|
Share-based payments
|
|
351
|
|
117
|
|
|
345
|
|
414
|
|
|
Net operating charge for pensions and other post-retirement benefits, less contributions and benefit payments for unfunded plans
|
|
(34
|
)
|
(68
|
)
|
|
(54
|
)
|
(145
|
)
|
|
Net charge for provisions, less payments
|
|
(365
|
)
|
(198
|
)
|
|
(424
|
)
|
(314
|
)
|
|
Movements in inventories and other current and non-current assets and liabilities
|
|
(609
|
)
|
(58
|
)
|
|
74
|
|
(2,753
|
)
|
|
Income taxes paid
|
|
(130
|
)
|
(1,309
|
)
|
|
(1,184
|
)
|
(2,455
|
)
|
|
Net cash provided by operating activities
|
|
3,737
|
|
6,815
|
|
|
4,689
|
|
12,111
|
|
|
Investing activities
|
|
|
|
|
|
|
||||
|
Expenditure on property, plant and equipment, intangible and other assets
|
|
(3,018
|
)
|
(3,833
|
)
|
|
(6,807
|
)
|
(7,528
|
)
|
|
Acquisitions, net of cash acquired
|
|
—
|
|
(1,747
|
)
|
|
(17
|
)
|
(3,542
|
)
|
|
Investment in joint ventures
|
|
(8
|
)
|
(20
|
)
|
|
(26
|
)
|
(20
|
)
|
|
Investment in associates
|
|
(41
|
)
|
(54
|
)
|
|
(78
|
)
|
(199
|
)
|
|
Total cash capital expenditure
|
|
(3,067
|
)
|
(5,654
|
)
|
|
(6,928
|
)
|
(11,289
|
)
|
|
Proceeds from disposal of fixed assets
|
|
10
|
|
70
|
|
|
20
|
|
305
|
|
|
Proceeds from disposal of businesses, net of cash disposed
|
|
670
|
|
8
|
|
|
1,341
|
|
373
|
|
|
Proceeds from loan repayments
|
|
543
|
|
64
|
|
|
606
|
|
119
|
|
|
Net cash used in investing activities
|
|
(1,844
|
)
|
(5,512
|
)
|
|
(4,961
|
)
|
(10,492
|
)
|
|
Financing activities
|
|
|
|
|
|
|
||||
|
Net issue (repurchase) of shares (Note 9)
|
|
—
|
|
(80
|
)
|
|
(776
|
)
|
(125
|
)
|
|
Lease liability payments
|
|
(664
|
)
|
(595
|
)
|
|
(1,233
|
)
|
(1,212
|
)
|
|
Proceeds from long-term financing
|
|
6,846
|
|
4,381
|
|
|
9,530
|
|
6,505
|
|
|
Repayments of long-term financing
|
|
(964
|
)
|
(3,602
|
)
|
|
(4,681
|
)
|
(6,242
|
)
|
|
Net increase (decrease) in short-term debt
|
|
(215
|
)
|
(119
|
)
|
|
2,302
|
|
970
|
|
|
Issue of perpetual hybrid bonds
|
|
11,861
|
|
—
|
|
|
11,861
|
|
—
|
|
|
Payments relating to transactions involving non-controlling interests (other)
|
|
(8
|
)
|
—
|
|
|
(8
|
)
|
—
|
|
|
Receipts relating to transactions involving non-controlling interests (other)
|
|
—
|
|
—
|
|
|
9
|
|
—
|
|
|
Dividends paid - BP shareholders
|
|
(2,119
|
)
|
(1,779
|
)
|
|
(4,221
|
)
|
(3,214
|
)
|
|
- non-controlling interests
|
|
(74
|
)
|
(83
|
)
|
|
(105
|
)
|
(119
|
)
|
|
Net cash provided by (used in) financing activities
|
|
14,663
|
|
(1,877
|
)
|
|
12,678
|
|
(3,437
|
)
|
|
Currency translation differences relating to cash and cash equivalents
|
|
(42
|
)
|
(8
|
)
|
|
(225
|
)
|
24
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
16,514
|
|
(582
|
)
|
|
12,181
|
|
(1,794
|
)
|
|
Cash and cash equivalents at beginning of period
|
|
18,139
|
|
21,256
|
|
|
22,472
|
|
22,468
|
|
|
Cash and cash equivalents at end of period(a)
|
|
34,653
|
|
20,674
|
|
|
34,653
|
|
20,674
|
|
|
(a)
|
Second quarter and first half 2020 includes $436 million of cash and cash equivalents classified as assets held for sale in the group balance sheet.
|
|
|
|
Second half 2020
|
|
2021
|
|
2025
|
|
2030
|
|
2040
|
|
2050
|
|
|
Brent oil ($/bbl)
|
|
40
|
|
50
|
|
50
|
|
60
|
|
60
|
|
50
|
|
|
Henry Hub gas ($/mmBtu)
|
|
2.00
|
|
3.00
|
|
3.00
|
|
3.00
|
|
3.00
|
|
2.75
|
|
|
–
|
the interest rate benchmark component of fair value hedges only needs to be assessed as separately identifiable at initial designation; and
|
|
–
|
the interest rate benchmark is not altered for the purposes of assessing the economic relationship between the hedged item and the hedging instrument for fair value hedges.
|
|
–
|
Revenues and purchases from such contracts are measured at the contractual transaction price plus the carrying amount of the related derivative at the date of settlement. Realized derivative gains and losses on physically settled derivative contracts are included in other revenues.
|
|
–
|
There is no significant effect on current period or comparative information for ‘Sales and other operating revenues’ and ‘Purchases’ as presented in the group income statement, therefore no comparative information has been re-stated.
|
|
–
|
There is no significant effect on net assets or on comparative information for ‘Profit before taxation’ or ‘Profit after taxation’ as presented in the group income statement.
|
|
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
$ million
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
Upstream
|
|
(22,008
|
)
|
2,469
|
|
|
(20,985
|
)
|
5,353
|
|
|
Downstream
|
|
594
|
|
1,288
|
|
|
1,258
|
|
3,053
|
|
|
Rosneft
|
|
(124
|
)
|
525
|
|
|
(141
|
)
|
1,011
|
|
|
Other businesses and corporate
|
|
(317
|
)
|
(381
|
)
|
|
(1,015
|
)
|
(927
|
)
|
|
|
|
(21,855
|
)
|
3,901
|
|
|
(20,883
|
)
|
8,490
|
|
|
Consolidation adjustment – UPII*
|
|
(46
|
)
|
34
|
|
|
132
|
|
21
|
|
|
RC profit (loss) before interest and tax*
|
|
(21,901
|
)
|
3,935
|
|
|
(20,751
|
)
|
8,511
|
|
|
Inventory holding gains (losses)*
|
|
|
|
|
|
|
||||
|
Upstream
|
|
57
|
|
(10
|
)
|
|
(11
|
)
|
(8
|
)
|
|
Downstream
|
|
978
|
|
93
|
|
|
(3,637
|
)
|
1,139
|
|
|
Rosneft (net of tax)
|
|
53
|
|
(2
|
)
|
|
(148
|
)
|
38
|
|
|
Profit (loss) before interest and tax
|
|
(20,813
|
)
|
4,016
|
|
|
(24,547
|
)
|
9,680
|
|
|
Finance costs
|
|
783
|
|
853
|
|
|
1,566
|
|
1,720
|
|
|
Net finance expense relating to pensions and other post-retirement benefits
|
|
8
|
|
15
|
|
|
15
|
|
30
|
|
|
Profit (loss) before taxation
|
|
(21,604
|
)
|
3,148
|
|
|
(26,128
|
)
|
7,930
|
|
|
|
|
|
|
|
|
|
||||
|
RC profit (loss) before interest and tax*
|
|
|
|
|
|
|
||||
|
US
|
|
(4,695
|
)
|
498
|
|
|
(4,100
|
)
|
1,269
|
|
|
Non-US
|
|
(17,206
|
)
|
3,437
|
|
|
(16,651
|
)
|
7,242
|
|
|
|
|
(21,901
|
)
|
3,935
|
|
|
(20,751
|
)
|
8,511
|
|
|
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
$ million
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
By segment
|
|
|
|
|
|
|
||||
|
Upstream
|
|
7,194
|
|
13,556
|
|
|
18,658
|
|
28,150
|
|
|
Downstream
|
|
27,241
|
|
66,396
|
|
|
81,205
|
|
124,812
|
|
|
Other businesses and corporate
|
|
450
|
|
433
|
|
|
903
|
|
789
|
|
|
|
|
34,885
|
|
80,385
|
|
|
100,766
|
|
153,751
|
|
|
|
|
|
|
|
|
|
||||
|
Less: sales and other operating revenues between segments
|
|
|
|
|
|
|
||||
|
Upstream
|
|
2,613
|
|
7,481
|
|
|
9,520
|
|
13,805
|
|
|
Downstream
|
|
330
|
|
62
|
|
|
(452
|
)
|
648
|
|
|
Other businesses and corporate
|
|
266
|
|
166
|
|
|
372
|
|
301
|
|
|
|
|
3,209
|
|
7,709
|
|
|
9,440
|
|
14,754
|
|
|
|
|
|
|
|
|
|
||||
|
Third party sales and other operating revenues
|
|
|
|
|
|
|
||||
|
Upstream
|
|
4,581
|
|
6,075
|
|
|
9,138
|
|
14,345
|
|
|
Downstream
|
|
26,911
|
|
66,334
|
|
|
81,657
|
|
124,164
|
|
|
Other businesses and corporate
|
|
184
|
|
267
|
|
|
531
|
|
488
|
|
|
Total sales and other operating revenues
|
|
31,676
|
|
72,676
|
|
|
91,326
|
|
138,997
|
|
|
|
|
|
|
|
|
|
||||
|
By geographical area
|
|
|
|
|
|
|
||||
|
US
|
|
10,117
|
|
26,086
|
|
|
31,336
|
|
47,934
|
|
|
Non-US
|
|
24,776
|
|
52,933
|
|
|
68,731
|
|
102,551
|
|
|
|
|
34,893
|
|
79,019
|
|
|
100,067
|
|
150,485
|
|
|
Less: sales and other operating revenues between areas
|
|
3,217
|
|
6,343
|
|
|
8,741
|
|
11,488
|
|
|
|
|
31,676
|
|
72,676
|
|
|
91,326
|
|
138,997
|
|
|
|
|
|
|
|
|
|
||||
|
Revenues from contracts with customers(a)
|
|
|
|
|
|
|
||||
|
Sales and other operating revenues include the following in relation to revenues from contracts with customers:
|
|
|
|
|
|
|
||||
|
Crude oil
|
|
1,062
|
|
2,577
|
|
|
2,497
|
|
5,067
|
|
|
Oil products
|
|
10,452
|
|
27,211
|
|
|
30,706
|
|
49,915
|
|
|
Natural gas, LNG and NGLs
|
|
2,992
|
|
4,294
|
|
|
6,630
|
|
9,651
|
|
|
Non-oil products and other revenues from contracts with customers
|
|
2,118
|
|
3,258
|
|
|
4,608
|
|
6,321
|
|
|
Revenue from contracts with customers
|
|
16,624
|
|
37,340
|
|
|
44,441
|
|
70,954
|
|
|
Other operating revenues(b)
|
|
15,052
|
|
35,336
|
|
|
46,885
|
|
68,043
|
|
|
Total sales and other operating revenues
|
|
31,676
|
|
72,676
|
|
|
91,326
|
|
138,997
|
|
|
(a)
|
Amounts shown for revenue from contracts with customers and other operating revenues for second quarter and first half 2019 have been represented to align with the current period. See Note 1 for further information.
|
|
(b)
|
Principally relates to physically settled derivative sales contracts.
|
|
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
$ million
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
Upstream
|
|
|
|
|
|
|
||||
|
US
|
|
1,044
|
|
1,288
|
|
|
2,112
|
|
2,401
|
|
|
Non-US
|
|
1,973
|
|
2,396
|
|
|
4,055
|
|
4,894
|
|
|
|
|
3,017
|
|
3,684
|
|
|
6,167
|
|
7,295
|
|
|
Downstream
|
|
|
|
|
|
|
||||
|
US
|
|
344
|
|
333
|
|
|
686
|
|
656
|
|
|
Non-US
|
|
408
|
|
392
|
|
|
813
|
|
775
|
|
|
|
|
752
|
|
725
|
|
|
1,499
|
|
1,431
|
|
|
Other businesses and corporate
|
|
|
|
|
|
|
||||
|
US
|
|
16
|
|
14
|
|
|
31
|
|
27
|
|
|
Non-US
|
|
152
|
|
165
|
|
|
299
|
|
296
|
|
|
|
|
168
|
|
179
|
|
|
330
|
|
323
|
|
|
Total group
|
|
3,937
|
|
4,588
|
|
|
7,996
|
|
9,049
|
|
|
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
$ million
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
US
|
|
13
|
|
79
|
|
|
26
|
|
160
|
|
|
Non-US
|
|
111
|
|
292
|
|
|
301
|
|
635
|
|
|
|
|
124
|
|
371
|
|
|
327
|
|
795
|
|
|
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
$ million
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
Results for the period
|
|
|
|
|
|
|
||||
|
Profit (loss) for the period attributable to BP shareholders
|
|
(16,848
|
)
|
1,822
|
|
|
(21,213
|
)
|
4,756
|
|
|
Less: preference dividend
|
|
1
|
|
1
|
|
|
1
|
|
1
|
|
|
Profit (loss) attributable to BP ordinary shareholders
|
|
(16,849
|
)
|
1,821
|
|
|
(21,214
|
)
|
4,755
|
|
|
|
|
|
|
|
|
|
||||
|
Number of shares (thousand)(a)(b)
|
|
|
|
|
|
|
||||
|
Basic weighted average number of shares outstanding
|
|
20,222,575
|
|
20,336,347
|
|
|
20,200,694
|
|
20,256,254
|
|
|
ADS equivalent
|
|
3,370,429
|
|
3,389,391
|
|
|
3,366,782
|
|
3,376,042
|
|
|
|
|
|
|
|
|
|
||||
|
Weighted average number of shares outstanding used to calculate diluted earnings per share
|
|
20,222,575
|
|
20,421,184
|
|
|
20,200,694
|
|
20,368,125
|
|
|
ADS equivalent
|
|
3,370,429
|
|
3,403,530
|
|
|
3,366,782
|
|
3,394,687
|
|
|
|
|
|
|
|
|
|
||||
|
Shares in issue at period-end
|
|
20,249,046
|
|
20,373,332
|
|
|
20,249,046
|
|
20,373,332
|
|
|
ADS equivalent
|
|
3,374,841
|
|
3,395,555
|
|
|
3,374,841
|
|
3,395,555
|
|
|
(a)
|
Excludes treasury shares and includes certain shares that will be issued in the future under employee share-based payment plans.
|
|
(b)
|
If the inclusion of potentially issuable shares would decrease loss per share, the potentially issuable shares are excluded from the weighted average number of shares outstanding used to calculate diluted earnings per share. The numbers of potentially issuable shares that have been excluded from the calculation for the second quarter 2020 and first half 2020 are 63,119 thousand (ADS equivalent 10,520 thousand) and 85,469 thousand (ADS equivalent 14,245 thousand) respectively.
|
|
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
Dividends paid per ordinary share
|
|
|
|
|
|
|
||||
|
cents
|
|
10.500
|
|
10.250
|
|
|
21.000
|
|
20.500
|
|
|
pence
|
|
8.342
|
|
8.066
|
|
|
16.498
|
|
15.804
|
|
|
Dividends paid per ADS (cents)
|
|
63.00
|
|
61.50
|
|
|
126.00
|
|
123.00
|
|
|
Scrip dividends
|
|
|
|
|
|
|
||||
|
Number of shares issued (millions)
|
|
—
|
|
46.3
|
|
|
—
|
|
136.4
|
|
|
Value of shares issued ($ million)
|
|
—
|
|
318
|
|
|
—
|
|
947
|
|
|
Net debt*
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
Year
|
|
|
$ million
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
2019
|
|
|
Finance debt(a)(b)
|
|
76,003
|
|
67,553
|
|
|
76,003
|
|
67,553
|
|
67,724
|
|
|
Fair value (asset) liability of hedges related to finance debt(c)
|
|
(430
|
)
|
(378
|
)
|
|
(430
|
)
|
(378
|
)
|
190
|
|
|
|
|
75,573
|
|
67,175
|
|
|
75,573
|
|
67,175
|
|
67,914
|
|
|
Less: cash and cash equivalents(b)
|
|
34,653
|
|
20,674
|
|
|
34,653
|
|
20,674
|
|
22,472
|
|
|
Net debt
|
|
40,920
|
|
46,501
|
|
|
40,920
|
|
46,501
|
|
45,442
|
|
|
Total equity(d)
|
|
82,811
|
|
103,623
|
|
|
82,811
|
|
103,623
|
|
100,708
|
|
|
Gearing*
|
|
33.1%
|
31.0%
|
|
33.1
|
%
|
31.0
|
%
|
31.1
|
%
|
||
|
(a)
|
The fair value of finance debt at 30 June 2020 was $77,990 million (31 December 2019 $69,376 million).
|
|
(b)
|
Second quarter and first half 2020 includes $436 million of cash and $24 million of finance debt included in assets and liabilities held for sale in the group balance sheet.
|
|
(c)
|
Derivative financial instruments entered into for the purpose of managing interest rate and foreign currency exchange risk associated with net debt with a fair value liability position of $554 million (second quarter 2019 liability of $563 million) are not included in the calculation of net debt shown above as hedge accounting is not applied for these instruments.
|
|
(c)
|
Total equity in the second quarter and first half 2020 includes $11.9 billion related to perpetual hybrid bonds issued on 17 June 2020. See Note 1 for further information.
|
|
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
$ million
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
Capital expenditure on a cash basis
|
|
|
|
|
|
|
||||
|
Organic capital expenditure*
|
|
3,034
|
|
3,686
|
|
|
6,573
|
|
7,334
|
|
|
Inorganic capital expenditure*(a)
|
|
33
|
|
1,968
|
|
|
355
|
|
3,955
|
|
|
|
|
3,067
|
|
5,654
|
|
|
6,928
|
|
11,289
|
|
|
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
$ million
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
Organic capital expenditure by segment
|
|
|
|
|
|
|
||||
|
Upstream
|
|
|
|
|
|
|
||||
|
US
|
|
1,018
|
|
972
|
|
|
2,186
|
|
1,954
|
|
|
Non-US
|
|
1,517
|
|
1,858
|
|
|
3,179
|
|
3,746
|
|
|
|
|
2,535
|
|
2,830
|
|
|
5,365
|
|
5,700
|
|
|
Downstream
|
|
|
|
|
|
|
||||
|
US
|
|
135
|
|
271
|
|
|
256
|
|
458
|
|
|
Non-US
|
|
295
|
|
470
|
|
|
826
|
|
1,004
|
|
|
|
|
430
|
|
741
|
|
|
1,082
|
|
1,462
|
|
|
Other businesses and corporate
|
|
|
|
|
|
|
||||
|
US
|
|
21
|
|
15
|
|
|
53
|
|
24
|
|
|
Non-US
|
|
48
|
|
100
|
|
|
73
|
|
148
|
|
|
|
|
69
|
|
115
|
|
|
126
|
|
172
|
|
|
|
|
3,034
|
|
3,686
|
|
|
6,573
|
|
7,334
|
|
|
Organic capital expenditure by geographical area
|
|
|
|
|
|
|
||||
|
US
|
|
1,174
|
|
1,258
|
|
|
2,495
|
|
2,436
|
|
|
Non-US
|
|
1,860
|
|
2,428
|
|
|
4,078
|
|
4,898
|
|
|
|
|
3,034
|
|
3,686
|
|
|
6,573
|
|
7,334
|
|
|
(a)
|
On 31 October 2018, BP acquired from BHP Billiton Petroleum (North America) Inc. 100% of the issued share capital of Petrohawk Energy Corporation, a wholly owned subsidiary of BHP that holds a portfolio of unconventional onshore US oil and gas assets. The entire consideration payable of $10,268 million, after customary closing adjustments, was paid in instalments between July 2018 and April 2019. The amounts presented as inorganic capital expenditure include $1,748 million for the second quarter 2019 and $3,480 million for the first half 2019 relating to this transaction. First half 2020 and 2019 also include amounts relating to the 25-year extension to our ACG production-sharing agreement* in Azerbaijan.
|
|
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
$ million
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
Upstream
|
|
|
|
|
|
|
||||
|
Gains on sale of businesses and fixed assets
|
|
87
|
|
47
|
|
|
94
|
|
105
|
|
|
Impairment and losses on sale of businesses and fixed assets(a)
|
|
(10,953
|
)
|
(843
|
)
|
|
(12,084
|
)
|
(912
|
)
|
|
Environmental and other provisions
|
|
—
|
|
—
|
|
|
(13
|
)
|
—
|
|
|
Restructuring, integration and rationalization costs
|
|
(24
|
)
|
(17
|
)
|
|
(28
|
)
|
(52
|
)
|
|
Other(b)(c)
|
|
(2,564
|
)
|
47
|
|
|
(2,494
|
)
|
89
|
|
|
|
|
(13,454
|
)
|
(766
|
)
|
|
(14,525
|
)
|
(770
|
)
|
|
Downstream
|
|
|
|
|
|
|
||||
|
Gains on sale of businesses and fixed assets
|
|
(13
|
)
|
10
|
|
|
(6
|
)
|
42
|
|
|
Impairment and losses on sale of businesses and fixed assets(a)
|
|
(798
|
)
|
(61
|
)
|
|
(803
|
)
|
(89
|
)
|
|
Environmental and other provisions
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|
Restructuring, integration and rationalization costs
|
|
31
|
|
20
|
|
|
31
|
|
18
|
|
|
Other
|
|
—
|
|
—
|
|
|
—
|
|
(6
|
)
|
|
|
|
(780
|
)
|
(31
|
)
|
|
(778
|
)
|
(35
|
)
|
|
Rosneft
|
|
|
|
|
|
|
||||
|
Other(c)
|
|
(63
|
)
|
(113
|
)
|
|
(63
|
)
|
(194
|
)
|
|
|
|
(63
|
)
|
(113
|
)
|
|
(63
|
)
|
(194
|
)
|
|
Other businesses and corporate
|
|
|
|
|
|
|
||||
|
Gains on sale of businesses and fixed assets
|
|
—
|
|
(4
|
)
|
|
2
|
|
(4
|
)
|
|
Impairment and losses on sale of businesses and fixed assets
|
|
(19
|
)
|
—
|
|
|
(21
|
)
|
—
|
|
|
Environmental and other provisions
|
|
—
|
|
(22
|
)
|
|
(23
|
)
|
(28
|
)
|
|
Restructuring, integration and rationalization costs
|
|
(33
|
)
|
(3
|
)
|
|
(46
|
)
|
7
|
|
|
Gulf of Mexico oil spill
|
|
(31
|
)
|
(57
|
)
|
|
(52
|
)
|
(172
|
)
|
|
Other(d)
|
|
67
|
|
(5
|
)
|
|
(13
|
)
|
(22
|
)
|
|
|
|
(16
|
)
|
(91
|
)
|
|
(153
|
)
|
(219
|
)
|
|
Total before interest and taxation
|
|
(14,313
|
)
|
(1,001
|
)
|
|
(15,519
|
)
|
(1,218
|
)
|
|
Finance costs(e)
|
|
(114
|
)
|
(116
|
)
|
|
(236
|
)
|
(244
|
)
|
|
Total before taxation
|
|
(14,427
|
)
|
(1,117
|
)
|
|
(15,755
|
)
|
(1,462
|
)
|
|
Taxation credit (charge) on non-operating items
|
|
3,456
|
|
256
|
|
|
3,758
|
|
349
|
|
|
Taxation – impact of foreign exchange(f)
|
|
114
|
|
—
|
|
|
(251
|
)
|
—
|
|
|
Total after taxation for period
|
|
(10,857
|
)
|
(861
|
)
|
|
(12,248
|
)
|
(1,113
|
)
|
|
(a)
|
See Note 3 for further information.
|
|
(b)
|
Second quarter and first half 2020 include the exploration write-off of $1,969 million ($1,670 million after tax) relating to fair value ascribed to certain licences as part of the accounting at the time of acquisition of upstream assets in Brazil, India and the Gulf of Mexico and the impairment of certain intangible assets in Mauritania and Senegal.
|
|
(c)
|
Second quarter and first half 2020 include $585 million and $63 million of impairments reported by equity-accounted entities in the Upstream and Rosneft segments respectively.
|
|
(d)
|
From first quarter 2020, BP is presenting temporary valuation differences associated with the group’s interest rate and foreign currency exchange risk management of finance debt as non-operating items. These amounts represent: (i) the impact of ineffectiveness and the amortisation of cross currency basis resulting from the application of fair value hedge accounting; and (ii) the net impact of foreign currency exchange movements on finance debt and associated derivatives where hedge accounting is not applied. Relevant amounts in the comparative periods presented were not material.
|
|
(e)
|
Relates to the unwinding of discounting effects relating to Gulf of Mexico oil spill payables.
|
|
(f)
|
From first quarter 2020, BP is presenting certain foreign exchange effects on tax as non-operating items. These amounts represent the impact of: (i) foreign exchange on deferred tax balances arising from the conversion of local currency tax base amounts into functional currency, and (ii) taxable gains and losses from the retranslation of US dollar-denominated intra-group loans to local currency. Relevant amounts in the comparative periods presented were not material.
|
|
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
$ million
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
Favourable (adverse) impact relative to management’s measure of performance
|
|
|
|
|
|
|
||||
|
Upstream
|
|
(67
|
)
|
(178
|
)
|
|
156
|
|
(218
|
)
|
|
Downstream
|
|
(31
|
)
|
(46
|
)
|
|
(290
|
)
|
(10
|
)
|
|
Other businesses and corporate
|
|
(41
|
)
|
—
|
|
|
(41
|
)
|
—
|
|
|
|
|
(139
|
)
|
(224
|
)
|
|
(175
|
)
|
(228
|
)
|
|
Taxation credit (charge)
|
|
21
|
|
49
|
|
|
29
|
|
42
|
|
|
|
|
(118
|
)
|
(175
|
)
|
|
(146
|
)
|
(186
|
)
|
|
Net debt including leases*
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
$ million
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
Net debt
|
|
40,920
|
|
46,501
|
|
|
40,920
|
|
46,501
|
|
|
Lease liabilities
|
|
9,331
|
|
10,379
|
|
|
9,331
|
|
10,379
|
|
|
Net partner (receivable) payable for leases entered into on behalf of joint operations
|
|
(90
|
)
|
(230
|
)
|
|
(90
|
)
|
(230
|
)
|
|
Net debt including leases
|
|
50,161
|
|
56,650
|
|
|
50,161
|
|
56,650
|
|
|
Total equity(a)
|
|
82,811
|
|
103,623
|
|
|
82,811
|
|
103,623
|
|
|
Gearing including leases*
|
|
37.7%
|
35.3%
|
|
37.7%
|
35.3%
|
||||
|
(a)
|
Total equity in the second quarter and first half 2020 includes $11.9 billion related to perpetual hybrid bonds issued on 17 June 2020. See Note 1 for further information.
|
|
|
|
30 June
|
|
31 December
|
|
|
$ million
|
|
2020
|
|
2019
|
|
|
RMI at fair value*
|
|
4,111
|
|
6,837
|
|
|
Paid-up RMI*
|
|
1,971
|
|
3,217
|
|
|
|
|
30 June
|
|
31 December
|
|
|
$ million
|
|
2020
|
|
2019
|
|
|
Reconciliation of total inventory to paid-up RMI
|
|
|
|
||
|
Inventories as reported on the group balance sheet under IFRS
|
|
12,504
|
|
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
|
|
(8,793
|
)
|
(14,280
|
)
|
|
|
|
3,711
|
|
6,600
|
|
|
Plus: difference between RMI at fair value and RMI on an IFRS basis
|
|
400
|
|
237
|
|
|
RMI at fair value
|
|
4,111
|
|
6,837
|
|
|
Less: unpaid RMI* at fair value
|
|
(2,140
|
)
|
(3,620
|
)
|
|
Paid-up RMI
|
|
1,971
|
|
3,217
|
|
|
|
|
30 June
|
|
31 December
|
|
|
$ million
|
|
2020
|
|
2019
|
|
|
Trade and other payables
|
|
(11,294
|
)
|
(12,480
|
)
|
|
Provisions
|
|
(29
|
)
|
(189
|
)
|
|
Gulf of Mexico oil spill payables and provisions
|
|
(11,323
|
)
|
(12,669
|
)
|
|
Of which - current
|
|
(1,511
|
)
|
(1,800
|
)
|
|
|
|
|
|
||
|
Deferred tax asset
|
|
5,456
|
|
5,526
|
|
|
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
Per ordinary share (cents)
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
Profit (loss) for the period
|
|
(83.32
|
)
|
8.95
|
|
|
(105.02
|
)
|
23.47
|
|
|
Inventory holding (gains) losses*, before tax
|
|
(5.38
|
)
|
(0.40
|
)
|
|
18.79
|
|
(5.77
|
)
|
|
Taxation charge (credit) on inventory holding gains and losses
|
|
1.38
|
|
0.17
|
|
|
(4.29
|
)
|
1.40
|
|
|
Replacement cost (RC) profit (loss)*
|
|
(87.32
|
)
|
8.72
|
|
|
(90.52
|
)
|
19.10
|
|
|
Net (favourable) adverse impact of non-operating items* and fair value accounting effects*, before tax
|
|
72.03
|
|
6.59
|
|
|
78.86
|
|
8.34
|
|
|
Taxation charge (credit) on non-operating items and fair value accounting effects
|
|
(17.76
|
)
|
(1.49
|
)
|
|
(17.51
|
)
|
(1.93
|
)
|
|
Underlying RC profit (loss)*
|
|
(33.05
|
)
|
13.82
|
|
|
(29.17
|
)
|
25.51
|
|
|
Taxation (charge) credit
|
|
|
|
|
|
|
||||
|
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
$ million
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
Taxation on profit or loss
|
|
4,082
|
|
(1,244
|
)
|
|
4,221
|
|
(3,027
|
)
|
|
Taxation on inventory holding gains and losses
|
|
(279
|
)
|
(34
|
)
|
|
868
|
|
(283
|
)
|
|
Taxation on a replacement cost (RC) profit or loss basis
|
|
4,361
|
|
(1,210
|
)
|
|
3,353
|
|
(2,744
|
)
|
|
Taxation on non-operating items and fair value accounting effects
|
|
3,591
|
|
305
|
|
|
3,536
|
|
391
|
|
|
Taxation on underlying replacement cost profit or loss
|
|
770
|
|
(1,515
|
)
|
|
(183
|
)
|
(3,135
|
)
|
|
Effective tax rate
|
|
|
|
|
|
|
||||
|
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
%
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
ETR on profit or loss
|
|
19
|
|
40
|
|
|
16
|
|
38
|
|
|
Adjusted for inventory holding gains or losses
|
|
0
|
|
(1
|
)
|
|
(1
|
)
|
3
|
|
|
ETR on RC profit or loss*
|
|
19
|
|
39
|
|
|
15
|
|
41
|
|
|
Adjusted for non-operating items and fair value accounting effects
|
|
(10
|
)
|
(5
|
)
|
|
(18
|
)
|
(4
|
)
|
|
Underlying ETR*
|
|
9
|
|
34
|
|
|
(3
|
)
|
37
|
|
|
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
Average realizations(a)
|
|
|
|
|
|
|
||||
|
Liquids* ($/bbl)
|
|
|
|
|
|
|
||||
|
US
|
|
21.63
|
|
56.98
|
|
|
33.80
|
|
53.91
|
|
|
Europe
|
|
28.91
|
|
68.73
|
|
|
40.30
|
|
65.04
|
|
|
Rest of World
|
|
22.58
|
|
66.24
|
|
|
33.79
|
|
63.18
|
|
|
BP Average
|
|
22.75
|
|
62.63
|
|
|
34.39
|
|
59.61
|
|
|
Natural gas ($/mcf)
|
|
|
|
|
|
|
||||
|
US
|
|
0.97
|
|
1.80
|
|
|
1.15
|
|
2.18
|
|
|
Europe
|
|
1.38
|
|
3.63
|
|
|
2.17
|
|
4.75
|
|
|
Rest of World
|
|
3.12
|
|
4.12
|
|
|
3.32
|
|
4.40
|
|
|
BP Average
|
|
2.53
|
|
3.35
|
|
|
2.69
|
|
3.68
|
|
|
Total hydrocarbons* ($/boe)
|
|
|
|
|
|
|
||||
|
US
|
|
16.05
|
|
35.94
|
|
|
23.37
|
|
35.08
|
|
|
Europe
|
|
23.00
|
|
63.40
|
|
|
33.46
|
|
61.02
|
|
|
Rest of World
|
|
20.21
|
|
41.60
|
|
|
25.63
|
|
41.06
|
|
|
BP Average
|
|
19.06
|
|
40.64
|
|
|
25.36
|
|
40.02
|
|
|
Average oil marker prices ($/bbl)
|
|
|
|
|
|
|
||||
|
Brent
|
|
29.56
|
|
68.86
|
|
|
40.07
|
|
65.95
|
|
|
West Texas Intermediate
|
|
27.96
|
|
59.90
|
|
|
36.69
|
|
57.42
|
|
|
Western Canadian Select
|
|
22.19
|
|
47.37
|
|
|
25.48
|
|
46.14
|
|
|
Alaska North Slope
|
|
30.28
|
|
68.29
|
|
|
40.59
|
|
66.37
|
|
|
Mars
|
|
30.02
|
|
65.20
|
|
|
37.73
|
|
63.20
|
|
|
Urals (NWE – cif)
|
|
31.36
|
|
67.62
|
|
|
39.80
|
|
65.23
|
|
|
Average natural gas marker prices
|
|
|
|
|
|
|
||||
|
Henry Hub gas price(b) ($/mmBtu)
|
|
1.71
|
|
2.64
|
|
|
1.83
|
|
2.90
|
|
|
UK Gas – National Balancing Point (p/therm)
|
|
12.88
|
|
31.53
|
|
|
18.98
|
|
40.01
|
|
|
(a)
|
Based on sales of consolidated subsidiaries only – this excludes equity-accounted entities.
|
|
(b)
|
Henry Hub First of Month Index.
|
|
|
|
Second
|
|
Second
|
|
|
First
|
|
First
|
|
|
|
|
quarter
|
|
quarter
|
|
|
half
|
|
half
|
|
|
|
|
2020
|
|
2019
|
|
|
2020
|
|
2019
|
|
|
$/£ average rate for the period
|
|
1.24
|
|
1.29
|
|
|
1.26
|
|
1.29
|
|
|
$/£ period-end rate
|
|
1.23
|
|
1.27
|
|
|
1.23
|
|
1.27
|
|
|
|
|
|
|
|
|
|
||||
|
$/€ average rate for the period
|
|
1.10
|
|
1.12
|
|
|
1.10
|
|
1.13
|
|
|
$/€ period-end rate
|
|
1.12
|
|
1.14
|
|
|
1.12
|
|
1.14
|
|
|
|
|
|
|
|
|
|
||||
|
Rouble/$ average rate for the period
|
|
72.40
|
|
64.58
|
|
|
69.64
|
|
65.29
|
|
|
Rouble/$ period-end rate
|
|
71.25
|
|
63.09
|
|
|
71.25
|
|
63.09
|
|
|
•
|
Prices and markets – our financial performance is impacted by fluctuating prices of oil, gas and refined products, technological change, exchange rate fluctuations, and the general macroeconomic outlook.
|
|
•
|
Access, renewal and reserves progression – inability to access, renew and progress upstream resources in a timely manner could adversely affect our long-term replacement of reserves.
|
|
•
|
Major project* delivery – failure to invest in the best opportunities or deliver major projects successfully could adversely affect our financial performance.
|
|
•
|
Geopolitical – exposure to a range of political developments and consequent changes to the operating and regulatory environment could cause business disruption.
|
|
•
|
Liquidity, financial capacity and financial, including credit, exposure – failure to work within our financial framework could impact our ability to operate and result in financial loss.
|
|
•
|
Joint arrangements and contractors – varying levels of control over the standards, operations and compliance of our partners, contractors and sub-contractors could result in legal liability and reputational damage.
|
|
•
|
Digital infrastructure and cyber security – breach or failure of our or third parties’ digital infrastructure or cyber security, including loss or misuse of sensitive information could damage our operations, increase costs and damage our reputation.
|
|
•
|
Climate change and the transition to a lower carbon economy – policy, legal, regulatory, technology and market developments related to the issue of climate change could increase costs, reduce demand for our products, reduce revenue and limit certain growth opportunities.
|
|
•
|
Competition – inability to remain efficient, maintain a high-quality portfolio of assets, innovate and retain an appropriately skilled workforce could negatively impact delivery of our strategy in a highly competitive market.
|
|
•
|
Crisis management and business continuity – failure to address an incident effectively could potentially disrupt our business.
|
|
•
|
Insurance – our insurance strategy could expose the group to material uninsured losses.
|
|
•
|
Process safety, personal safety, and environmental risks – exposure to a wide range of health, safety, security and environmental risks could cause harm to people, the environment and our assets and result in regulatory action, legal liability, business interruption, increased costs, damage to our reputation and potentially denial of our licence to operate.
|
|
•
|
Drilling and production – challenging operational environments and other uncertainties could impact drilling and production activities.
|
|
•
|
Security – hostile acts against our staff and activities could cause harm to people and disrupt our operations.
|
|
•
|
Product quality – supplying customers with off-specification products could damage our reputation, lead to regulatory action and legal liability, and impact our financial performance.
|
|
•
|
Ethical misconduct and non-compliance – ethical misconduct or breaches of applicable laws by our businesses or our employees could be damaging to our reputation, and could result in litigation, regulatory action and penalties.
|
|
•
|
Regulation – changes in the regulatory and legislative environment could increase the cost of compliance, affect our provisions and limit our access to new growth opportunities.
|
|
•
|
Treasury and trading activities – ineffective oversight of treasury and trading activities could lead to business disruption, financial loss, regulatory intervention or damage to our reputation.
|
|
•
|
Reporting – failure to accurately report our data could lead to regulatory action, legal liability and reputational damage.
|
|
|
|
|
|
30 June
|
|
|
$ million
|
|
2020
|
|
|
Share capital and reserves
|
|
|
|
|
Capital shares (1-2)
|
|
5,374
|
|
|
Paid-in surplus (3)
|
|
14,109
|
|
|
Merger reserve (3)
|
|
27,206
|
|
|
Treasury shares
|
|
(13,379
|
)
|
|
Cash flow hedge reserve
|
|
(736
|
)
|
|
Costs of hedging reserve
|
|
(43
|
)
|
|
Foreign currency translation reserve
|
|
(9,695
|
)
|
|
Issue of perpetual hybrid bonds
|
|
(48
|
)
|
|
Profit and loss account
|
|
46,076
|
|
|
BP shareholders' equity
|
|
68,864
|
|
|
|
|
|
|
|
Finance debt and lease liabilities (4-6)
|
|
|
|
|
Lease liabilities due within one year
|
|
1,958
|
|
|
Finance debt due within one year
|
|
11,452
|
|
|
Lease liabilities due after more than one year
|
|
7,373
|
|
|
Finance debt due after more than one year
|
|
64,527
|
|
|
Total finance debt and lease liabilities
|
|
85,310
|
|
|
Total (7)(8)
|
|
154,174
|
|
|
1.
|
Issued share capital as of 30 June 2020 comprised 20,262,823,584 ordinary shares, par value US$0.25 per share, and 12,706,252 preference shares, par value £1 per share. This excludes 1,152,958,766 ordinary shares which have been bought back and are held in treasury by BP. These shares are not taken into consideration in relation to the payment of dividends and voting at shareholders’ meetings.
|
|
2.
|
Capital shares represent the ordinary and preference shares of BP which have been issued and are fully paid.
|
|
3.
|
Paid-in surplus and merger reserve represent additional paid-in capital of BP which cannot normally be returned to
|
|
4.
|
Finance debt and lease liabilities recorded in currencies other than US dollars has been translated into US dollars at the relevant exchange rates existing on 30 June 2020.
|
|
5.
|
Finance debt and lease liabilities presented in the table above consists of borrowings and obligations under finance leases. This includes one hundred percent of lease liabilities for joint operations where BP is the only party with the legal obligation to make lease payments to the lessor. Other contractual obligations are not presented in the table above – see BP Annual Report and Form 20-F 2019 – Liquidity and capital resources for further information.
|
|
6.
|
At 30 June 2020, the parent company, BP p.l.c. had issued guarantees totalling $71,391 million relating to group finance debt issued by subsidiaries. Thus 94% of the group’s finance debt had been guaranteed by BP p.l.c.. In addition, BP p.l.c. guarantees $11.9 billion of perpetual subordinated hybrid bonds issued by a subsidiary.
|
|
7.
|
At 30 June 2020 the group had issued third-party guarantees under which amounts outstanding, incremental to amounts recognized on the group balance sheet, were $1,169 million in respect of the borrowings of equity-accounted entities and $535 million in respect of the borrowings of other third parties.
|
|
8.
|
Total capitalization and indebtedness does not include non-controlling interests of $13.9 billion at 30 June 2020 which includes $11.9 billion related to perpetual hybrid bonds issued on 17 June 2020. See Note 1 to the consolidated financial statements for further information.
|
|
9.
|
There has been no material change since 30 June 2020 in the consolidated capitalization and indebtedness of BP.
|
|
Dated:
|
4 August 2020
|
|
/s/ BEN MATHEWS
|
|
|
|
|
Ben J. S. Mathews
|
|
|
|
|
Company Secretary
|