Our key performance indicators

We track our performance against key financial and non-financial indicators

We assess our performance across a wide range of measures and indicators. Our key performance indicators (KPIs) help the board and executive management measure performance against our strategic priorities and business plans. We periodically review our metrics and test their relevance to our strategy.

We believe non-financial measures – such as safety and an engaged and diverse workforce – have a useful role to play as leading indicators of future performance.
  • [S] KPIs used to measure progress against our strategy.
  • [R] KPIs used to determine 2015 and 2016 remuneration.

Underlying replacement cost profit per ordinary share (cents)

Underlying RC profit is a useful measure for investors because it is one of the profitability measures BP management uses to assess performance. It assists management in understanding the underlying trends in operational performance on a comparable year-on-year basis.

It reflects the replacement cost of inventories sold in the period and is arrived at by excluding inventory holding gains and losses from profit or loss. Adjustments are also made for non-operating items and fair value accounting effects. The IFRS equivalent can be found in the BP annual report 2015.

2015 performance: The significant reduction in underlying RC profit per ordinary share for the year compared with 2014 was mainly due to lower profit in Upstream.

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Operating cash flow ($ billion)

Operating cash flow is net cash flow provided by operating activities, as reported in the group cash flow statement. Operating activities are the principal revenue-generating activities of the group and other activities that are not investing or financing activities.

2015 performance: Operating cash flow was lower in 2015, largely reflecting the impact of the lower oil price environment.

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Gearing (net debt ratio) (%)

Our gearing (net debt ratio) shows investors how significant net debt is relative to equity from shareholders in funding BP’s operations. We aim to keep our gearing around 20% to give us the flexibility to deal with an uncertain environment.

Gearing is calculated by dividing net debt by total equity plus net debt. Net debt is equal to gross finance debt, plus associated derivative financial instruments, less cash and cash equivalents. For the nearest equivalent measure on an IFRS basis and for further information see Financial statements in the BP annual report 2015.

2015 performance: Gearing at the end of 2015 was 21.6%, up 4.9% on 2014.


Total shareholder return (%)

Total shareholder return (TSR) represents the change in value of a BP shareholding over a calendar year. It assumes that dividends are reinvested to purchase additional shares at the closing price on the ex-dividend date. We are committed to maintaining a progressive and sustainable dividend policy.

2015 performance: Negative TSR in the year reflects the fall in the BP share price exceeding the dividend.

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Proved reserves replacement ratio (%)

Proved reserves replacement ratio is the extent to which the year’s production has been replaced by proved reserves added to our reserve base. The ratio is expressed in oil-equivalent terms and includes changes resulting from discoveries, improved recovery and extensions and revisions to previous estimates, but excludes changes resulting from acquisitions and disposals. The ratio reflects both subsidiaries and equity-accounted entities.

This measure helps to demonstrate our success in accessing, exploring and extracting resources.

2015 performance: This year’s reserves replacement ratio was similar to 2014.

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Major project delivery

Major projects are defined as those with a BP net investment of at least $250 million, or considered to be of strategic importance to BP, or of a high degree of complexity. We monitor the progress of our major projects to gauge whether we are delivering our core pipeline of activity. Projects take many years to complete, requiring differing amounts of resource, so a smooth or increasing trend should not be anticipated.

2015 performance: We delivered three major projects in Upstream – two in Angola and one in Asia Pacific, and started up Zhuhai 3 in Downstream.

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Production (mboe/d)

We report production of crude oil, condensate, natural gas liquids (NGLs), natural bitumen and natural gas on a volume per day basis for our subsidiaries and equity-accounted entities. Natural gas is converted to barrels of oil equivalent at 5,800 standard cubic feet of natural gas = 1 boe.

2015 performance: BP’s total reported production including Upstream and Rosneft segments was 4.0% higher than in 2014. This was mainly due to favourable entitlement impact in our production-sharing agreements in the Upstream segment.


Refining availability (%)

Refining availability represents Solomon Associates’ operational availability. The measure shows the percentage of the year that a unit is available for processing after deducting the time spent on turnaround activity and all mechanical, process and regulatory downtime.

Refining availability is an important indicator of the operational performance of our Downstream businesses.

2015 performance: Refining availability was similar to 2014.


Reported recordable injury frequency (a)

Reported recordable injury frequency (RIF) measures the number of reported work-related employee and contractor incidents that result in a fatality or injury (apart from minor first aid cases) per 200,000 hours worked. The measure gives an indication of the personal safety of our workforce.

2015 performance: Our workforce RIF, which includes employees and contractors combined, was 0.24. This improvement on 2014 was also reflected in our other occupational safety metrics. While this is encouraging, continued vigilance is needed.

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Loss of primary containment (a)

Loss of primary containment (LOPC) is the number of unplanned or uncontrolled releases of oil, gas or other hazardous materials from a tank, vessel, pipe, railcar or other equipment used for containment or transfer. By tracking these losses we can monitor the safety and efficiency of our operations as well as our progress in making improvements.

2015 performance We have seen a decrease in our loss of primary containment to 235. Figures for 2014 and 2015 include increased reporting due to the introduction of enhanced automated monitoring for remote sites in our Lower 48 business. Using a like-for-like approach with prior years’ reporting, our 2015 loss of primary containment figure is 208 (2014: 246).

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Tier 1 process safety events (a)

We report tier 1 process safety events, which are the losses of primary containment of greatest consequence – causing harm to a member of the workforce, costly damage to equipment or exceeding defined quantities. 

2015 performance: The number of tier 1 process safety events has decreased substantially since 2011. We believe our systematic approach to safety management and assurance is contributing to improved performance over the long term and will maintain our focus in these areas.

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Greenhouse gas emissions (b) (million tonnes of CO2 equivalent)

We provide data on greenhouse gas (GHG) emissions material to our business on a carbon dioxide-equivalent basis. This includes CO2 and methane for direct emissions. Our GHG KPI encompasses all BP’s consolidated entities as well as our share of equity-accounted entities other than BP’s share of TNK-BP and Rosneft.(c)

2015 performance: The increase in our reported emissions is due to updating the global warming potential for methane. Without this update, our emissions would have decreased primarily due to divestments in Alaska.


Group priorities index (d) (%)

We track how engaged our employees are with our strategic priorities using our group priorities index. This is derived from survey questions about their perceptions of BP as a company and how it is managed in terms of leadership and standards.

2015 performance: Our group priorities engagement measure fell slightly in 2015, as expected in the current low oil price environment.

Diversity and inclusion (d) (%)

Each year we report the percentage of women and individuals from countries other than the UK and the US among BP’s group leaders. This helps us track progress in building a diverse and well-balanced leadership team.

2015 performance: The percentage of our group leaders who are women or non-UK/US rose slightly. We remain committed to our aim that women will represent at least 25% of our group leaders by 2020.


(a) This represents reported incidents occurring within BP’s operational HSSE reporting boundary. That boundary includes BP’s own operated facilities and certain other locations or situations.
(b) The 2015 figure reflects our update of the global warming potential for methane from 21 to 25, in line with IPIECA’s guidelines.
(c) For more information see the BP annual report 2015.
(d) Relates to BP employees.

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