|Fourth quarter 2012||Third quarter 2013||Fourth quarter 2013||
|Year 2013||Year 2012|
|1,488||3,504||1,042||Profit for the period(a)||23,451||11,017|
|521||(326)||465||Inventory holding (gains) losses, net of tax||230||411|
|2,009||3,178||1,507||Replacement cost profit(b)||23,681||11,428|
|1,843||514||1,302||Net (favourable) unfavourable impact of non-operating items and fair value accounting effects, net of tax(c)||(10,253)||5,643|
|3,852||3,692||2,809||Underlying replacement cost profit(b)
|Replacement cost profit
per ordinary share (cents)
per ADS (dollars)
Underlying replacement cost profit
per ordinary share (cents)
per ADS (dollars)
(a) Profit attributable to BP shareholders.
(b) See page 3 for definitions of RC profit and underlying RC profit.
(c) See pages 20 and 21 respectively for further information on non-operating items and fair value accounting effects.
(d) Fourth quarter 2012 included 21 days of earnings for TNK-BP, for the period 1 October to 21 October, at which point equity accounting for TNK-BP ceased as it was classified as held for sale.
(e) Assumes $100/bbl oil and $5/mmBtu Henry Hub gas. The projection includes BP’s estimate of the Rosneft dividend and the impact of payments in respect of federal criminal and securities claims with the US government and Securities and Exchange Commission where settlements have already been reached, but does not reflect any cash flows relating to other liabilities, contingent liabilities, settlements or contingent assets arising from the Gulf of Mexico oil spill, which may or may not arise at that time.
(f) Includes BP’s share of TNK-BP’s production and reserves additions from 1 January 2013 to 20 March 2013, and BP’s share of Rosneft production and reserves additions from 21 March 2013 to 31 December 2013.
(g) Organic capital expenditure excludes acquisitions, asset exchanges, and other inorganic capital expenditure. See page 18 for further information.
The commentaries above and on the above download are based on RC profit and should be read in conjunction with the cautionary statement.
Cautionary statement regarding forward-looking statements: The discussion in this results announcement contains certain forecasts, projections and forward-looking statements – that is, statements related to future, not past events – with respect to the financial condition, results of operation and businesses of BP and certain of the plans and objectives of BP with respect to these items. These statements may generally, but not always, be identified by the use of words such as ‘will’, ‘expects’, ‘is expected to’, ‘aims’, ‘should’, ‘may’, ‘objective’, ‘is likely to’, ‘intends’, ‘believes’, ‘anticipates’, ‘plans’, ‘we see’ or similar expressions. In particular, among other statements, BP’s intentions in respect of its announced share repurchase programme, including the total value of shares expected to be purchased in connection therewith and programme timing; the expected range of net cash that will be provided by operating activities in 2014; BP’s target net debt ratio; the expected organic capital expenditures for 2014; BP’s plans to divest a further $10 billion of assets before the end of 2015; the expected underlying effective tax rate for 2014; the expected quarterly dividend payment and timing of the payment; the expected increase in the charge for depreciation, depletion and amortization in 2014; the expected ramp-up of production from new upstream projects; the expected level of reported production in the first quarter of 2014 and the impact of the expiry of the Abu Dhabi onshore concession and divestments on the expected level of reported production in the first quarter of 2014; the expected level of reported and underlying production for the full year 2014; the expected timing for satisfaction of conditions precedent to completion of BP’s planned purchase of an additional 3.3% equity stake in Shah Deniz and the South Caucasus Pipeline from Statoil; the expected timing for completion of the sale of the specialist global aviation turbine oils business; BP’s expectations regarding the improvement of refining margins and the challenging conditions in the fuels and petrochemicals environments in 2014; the expected increase in exposure to heavy crude differentials in the US due to the ramp-up of heavy crude processing at Whiting refinery; the expected range for Other businesses and corporate average quarterly charges in 2014; and certain statements regarding the legal and trial proceedings, court decisions, potential investigations and civil actions by regulators, government entities and/or other entities or parties, and the risks associated with such proceedings; are all forward looking in nature. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will or may occur in the future. Actual results may differ from those expressed in such statements, depending on a variety of factors including the timing of bringing new fields onstream; the timing and level of maintenance and/or turnaround activity; the nature, timing and volume of refinery additions and outages; the timing, quantum and nature of divestments; the receipt of relevant third-party and/or regulatory approvals; future levels of industry product supply; demand and pricing; OPEC quota restrictions; PSA effects; operational problems; economic and financial market conditions generally or in various countries and regions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations; regulatory or legal actions including court decisions, the types of enforcement action pursued and the nature of remedies sought or imposed; the impact on our reputation following the Gulf of Mexico oil spill; exchange rate fluctuations; development and use of new technology; the success or otherwise of partnering; the actions of competitors, trading partners, creditors, rating agencies and others; decisions by Rosneft’s management and board of directors; natural disasters and adverse weather conditions; changes in public expectations and other changes to business conditions; wars and acts of terrorism, cyber-attacks or sabotage; and other factors discussed under “Principal risks and uncertainties” in our Form 6-K for the period ended 30 June 2013 and under “Risk factors” in BP Annual Report and Form 20-F 2012, each as filed with the US Securities and Exchange Commission.