Annual report
An overview of the key activities, events and results in 2018, together with commentary on BP’s performance and our priorities as we move forward
Helge Lund, chairman
Bob Dudley, group chief executive
The changing energy mix
The demand for energy is set to increase significantly – growing economies need energy to support their industry and infrastructure. In all the scenarios considered, world GDP more than doubles by 2040 driven by increasing prosperity in fast-growing developing economies.
The BP Energy Outlook explores the forces shaping the global energy transition out to 2040 and the key uncertainties surrounding that transition. We use the scenarios in the Outlook together with a range of other analysis and information when forming our long-term strategy.
Evolving transition
This scenario assumes that government policies, technology and social preferences continue to evolve in a manner and speed seen over the recent past.
Rapid transition
This scenario is consistent with the Paris goals, and is broadly similar to the reduction in carbon emissions in the IEA’s Sustainable Development Scenario.
Energy consumption – 2040 projections
Energy consumption - 2040 projections
How we run our business
From the deep sea to the desert, from rigs to retail, we deliver energy products and services to people around the world. We provide customers with fuel for transport, energy for heat and light, power for industry, lubricants to keep engines moving and the petrochemicals products used to make everyday items such as paints, clothes and packaging.
We have a diverse portfolio across businesses, resource types and geographies. Having upstream, downstream and renewables businesses, along with well-established trading capabilities, helps to mitigate the impact of commodity pricing cycles. Our geographic reach gives us access to growing markets and new resources, as well as diversifying exposure to geopolitical events. We are helping to meet the dual challenge of society's need for more energy while reducing emissions through our 'reduce, improve, create' framework.
We believe that our long history, well-recognized brands and customer offers, combined with our unique partnership with Rosneft, help differentiate us from our peers.
Segment performance
Bernard Looney, chief executive, Upstream
Tufan Erginbilgic, chief executive, Downstream
Case studies from 2018
Examples of our performance in action throughout the year.
From transformational deals to digital glasses – find out about our progress across the world in 2018.
Key downloads
Our key reports include information about our financial and operating performance, sustainability performance and also global energy trends and projections.
This document constitutes the Annual Report and Accounts in accordance with UK requirements and the Annual Report on Form 20-F in accordance with the US Securities Exchange Act of 1934, for BP p.l.c. for the year ended 31 December 2018. A cross reference to Form 20-F requirements is included on page 324.
This document contains the Strategic report on the inside front cover and pages 1-56 and the Directors' report on pages 57-86, 110-111, 210-237 and 273-322. The Strategic report and the Directors' report together include the management report required by DTR 4.1 of the UK Financial Conduct Authority's Disclosure Guidance and Transparency Rules. The Directors' remuneration report is on pages 87-109. The consolidated financial statements of the group are on pages 113-209 and the corresponding reports of the auditor are on pages 114-128. The parent company financial statements of BP p.l.c. are on pages 238-271.
The Directors' statements (comprising the Statement of directors' responsibilities; Risk management and internal control; Longer-term viability; Going concern; and Fair, balanced and understandable), the independent auditor's report on the annual report and accounts to the members of BP p.l.c., the parent company financial statements of BP p.l.c. and corresponding auditor's report, a non-GAAP measure of operating cash flow excluding Gulf of Mexico oil spill payments in the tables on pages 13, 16, 19 and 20 do not form part of BP's Annual Report on Form 20-F as filed with the SEC.
BP Annual Report and Form 20-F 2018 may be downloaded from bp.com/annualreport. To obtain a hard printed copy of BP's complete audited financial statements, free of charge, UK based investors should contact BP Distribution Services by clicking the link above or calling +44 (0)870 241 3269 or by emailing bpdistributionservices@bp.com. If based in the US or Canada investors should contact Issuer Direct by calling +1 888 301 2505 or by emailing bpreports@issuerdirect.com.
BP p.l.c. is the parent company of the BP group of companies. The company was incorporated in 1909 in England and Wales and changed its name to BP p.l.c. in 2001. Where we refer to the company, we mean BP p.l.c. Unless otherwise stated, the text does not distinguish between the activities and operations of the parent company and those of its subsidiaries, and information in this document reflects 100% of the assets and operations of the company and its subsidiaries that were consolidated at the date or for the periods indicated, including non-controlling interests.
BP's primary share listing is the London Stock Exchange. Ordinary shares are also traded on the Frankfurt Stock Exchange in Germany and, in the US, the company's securities are traded on the New York Stock Exchange (NYSE) in the form of ADSs (see page 306 for more details).
The term `shareholder' in this report means, unless the context otherwise requires, investors in the equity capital of BP p.l.c., both direct and indirect. As BP shares, in the form of ADSs, are listed on the NYSE, an Annual Report on Form 20-F is filed with the SEC. Ordinary shares are ordinary fully paid shares in BP p.l.c. of 25 cents each. Preference shares are cumulative first preference shares and cumulative second preference shares in BP p.l.c. of £1 each.
The material on the BP Annual Report 2018 webpage (the Material) relates to the year ended 31 December 2018 and is provided for general information only. The Material does not (i) form part of the BP Annual Report and Form 20-F 2018; or (ii) contain sufficient information to allow as full an understanding of the results and the state of affairs of BP as BP Annual Report and Form 20-F 2018. As such this Material should not be relied upon or used as the basis for making voting or investment decisions without consulting the full BP Annual Report and Form 20-F 2018 and other more complete or up-to-date sources of information. Information relating to BP's results for current and prior periods do not necessarily reflect future trends, nor do they provide indicators of results for like periods. This Material is not intended to be and shall not be deemed to be an invitation or inducement to invest in or otherwise deal in any securities of BP p.l.c. or in any other investment, nor to provide or constitute any advice or recommendation in connection with any investment decision, nor to constitute an offer to provide services in any jurisdiction in which BP p.l.c. is not permitted to do so under any applicable law or regulation.
The Material may contain certain forward-looking statements, forecasts or projections with respect to the financial condition, results of operations and businesses of BP and certain of the plans and objectives of BP with respect to these items. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may occur in the future. Actual results may differ materially from those expressed in such statements depending on a variety of factors.
Please refer to the Cautionary statement on page 303 of the full BP Annual Report and Form 20-F 2018 for further information on forward-looking statements.