Annual report

An overview of the key activities, events and results in 2017, together with commentary on BP’s performance and our priorities as we move forward

Introductions

Carl-Henric Svanberg, chairman

“Our goals aim to balance society’s need for more energy with our clear ambition of playing our part in the transition to a lower carbon world. We are investing for the future in both hydrocarbons and in technologies which will be important in that transition.”

Bob Dudley, group chief executive

"One year into our five-year plan I am pleased to report that your company has just delivered a significant year of both disciplined execution and exciting growth. We said that 2017 would be a very important year for BP. We set out ambitious plans for the year and we delivered on them."

The changing world of energy

The world of energy is changing every day. With rising concerns about climate, technological advances and geopolitical shifts, the energy mix is moving towards lower carbon sources.

BP Energy Outlook provides our projections of future energy trends and factors that could affect them out to 2040.

Evolving transition
In this scenario government policies, technology and social preferences evolve in a manner and speed seen in the recent past. The growing world economy requires more energy but consumption increases less quickly than in the past.

Faster transition
This scenario sees carbon prices rising faster than in the evolving transition scenario with other policy interventions encouraging more rapid energy efficiency gains and fuel switching.

Even faster transition
This scenario matches carbon emissions similar to the International Energy Agency’s sustainable development scenario which aims to limit the global temperature rise to well below 2°C.

Energy consumption - 2040 projections

energy-consumption-2040-forecasts

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, 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 and downstream 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 believe that our long history, well-recognized brands and customer offers, combined with our unique partnership with Rosneft, help differentiate us from our peers.

Our strategy

Segment performance

Bernard Looney, chief executive, Upstream

“2017 was a strong year of delivery, demonstrated by the start-up of seven major projects. This shows we are creating real value and tangible growth – with opportunities out to 2021 and beyond.”

Tufan Erginbilgic, chief executive, Downstream

“The execution of our strategy is delivering results and building a business that is fit for now and the future. In 2017, we had our best year ever, with a replacement cost profit of $7.2 billion.”

Case studies from 2017

Examples of our performance in action throughout the year.

From convenience partnerships to blockchain – find out about our progress across the world in 2017.

Key downloads

Our key reports include information about our financial and operating performance, sustainability performance and also global energy trends and projections.

Information for shareholders

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 2017. A cross reference to Form 20-F requirements is included on page 298.

This document contains the Strategic report on the inside front cover and pages 1-58 and the Directors' report on pages 59-89, 113-114, 191-218 and 247-296. 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 90-112. The consolidated financial statements of the group are on pages 115-190 and the corresponding reports of the auditor are on pages 116-124. The parent company financial statements of BP p.l.c. are on pages 219-245.

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 18, 21, 22 and 25 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 2017 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. 

No material on the BP website, other than the items identified as BP Annual Report and Form 20-F 2017, forms any part of this document. References in this document to other documents on the BP website, such as BP Energy Outlook, BP Sustainability Report, BP Statistical Review of World Energy and BP Technology Outlook are included as an aid to their location and are not incorporated by reference into this document.

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 280 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.

Legal notice in relation to the material on this page

The material on this BP Annual Report 2017 webpage (the Material) relates to the year ended 31 December 2017 and is provided for general information only. The Material does not (i) form part of the BP Annual Report and Form 20-F 2017; 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 2017. 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 2017 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.

Cautionary statement

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 305 of the full BP Annual Report and Form 20-F 2017 for further information on forward-looking statements.