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Financial disclosure framework

“The release of our new financial disclosure framework is an important step in our journey to reinvent bp. The reporting structure defines how we performance manage the company to maximise value. And the metrics provide increased transparency as we progress our strategic agenda, enhancing understanding of our business and demonstrating the significant value within our portfolio.”
Murray Auchincloss

Murray Auchincloss, chief financial officer, bp

bp’s new financial disclosure framework

Consistent with our purpose and net zero ambition we have made a commitment to reinvent bp.


We have a new strategy, a new organizational model and from the start of 2021 have also changed the way that we performance manage bp. We commenced reporting on this basis with our first quarter 2021 results.


Our new financial disclosure framework comprises our new segmental reporting structure and associated disclosures. It follows a significant review of and enhancement to, our disclosures and forms part of a broader reporting framework that includes our Annual Report, Sustainability Report and ESG data sheet.


Download the restated group databook (previously F&OI).

New reporting structure

New reporting structure

Our new reporting structure comprises five segments:

  • Oil production & operations: oil producing regions
  • Gas & low energy: gas producing regions; gas marketing & trading; integrated gas & power; and bp’s low carbon energy businesses; including low carbon electricity
  • Customers & products: customer facing businesses including convenience, mobility (fuels retail and next-gen as well as aviation, B2B and midstream) and Castrol, and products businesses – refining and oil & oil products trading
  • Rosneft
  • Other businesses & corporate: including bp ventures and Launchpad.

 

An illustration of how our old reporting structure maps to our new segments is shown above and available to download.


For each new segment we report performance on both a pre-tax and post-tax basis and also disclose EBITDA for the first three segments.

Our disclosures

Disclosure framework

A consistent set of disclosures for our hydrocarbons businesses

Organisationally, our hydrocarbons businesses, including refining, are now managed through a single combined operating model. This creates the potential for around $1.5 billion of annual cost savings by 2023, relative to 2019, as we focus on driving operational excellence and synergies. 


The financial results of oil, gas and refining are reported within three different segments as we focus on maximising commercial value:

 

  • Oil production & operations forms its own new segment comprising the results of our oil regions
  • Gas regions are reported within our gas & low carbon energy segment, consistent with the increasing integration of gas value chains with our low carbon businesses
  • Refining is reported within our customers & products segment, recognising the commercial importance of our integrated fuels value chains.


For these businesses, we are ensuring consistency with our former disclosures. bp will continue to disclose certain key metrics for aggregated oil and gas, equivalent to the old Upstream segment.


A summary of how our hydrocarbon operations are split between oil production & operations, gas & low carbon energy and customers & products segments can be found on the respective segment pages in this section.

Significantly enhancing disclosure in customers & products to provide insight into our growth drivers

The customers & products segment comprises our customer facing businesses (convenience & mobility) and our products businesses (refining & trading).

 

We have significantly enhanced our disclosures in this segment, including:

 

  • Quarterly EBITDA and earnings breakdown between convenience & mobility and refining & trading
  • Break out of key components of our convenience & mobility earnings including convenience gross margin, retail fuels gross margin, and Castrol sales and EBITDA
  • Multiple financial and operational metrics including strategic convenience sites, growth market sites, electric charge points and margin share from convenience and electrification.

 

These enhanced disclosures, some of which are on an annual basis, allow investors to track progress against our aims, including our aim to nearly double convenience & mobility EBITDA by 2030 relative to 2019 while generating returns of 15-20%. These disclosures also facilitate improved comparison with peers.

Providing visibility around our growth and returns objectives in low carbon energy

Consistent with the increasing allocation of capital to low carbon energy as we drive our transformation, we have outlined a series of new disclosures for this business.

 

Key elements include quarterly updates on:

 

  • The GW capacity and average expected returns of our portfolio of renewable power projects developed to final investment decision
  • Our renewables pipeline, including analysis by geography and technology 
  • The hopper of early stage options that support development of our pipeline.

 

Looking forward, we continue to review our financial disclosures and intend to evolve them in line with this work and as we scale up our business. Consistent with this, from the end of the 2021 financial year we plan to provide additional annual financial disclosure.

Maintaining clarity on Rosneft and other businesses & corporate

We continue to separately report the results of our Rosneft shareholding and the contribution from other businesses and corporate.

 

Other businesses & corporate includes the contribution of bp ventures and Launchpad.

Transparency against key strategic milestones

Annual updates on previously disclosed milestones include:
 

  • EBIDA and EBIDA per share
  • Group ROACE
  • The proportion of capital employed dedicated to the energy transition
  • Progress towards becoming a net zero company – Aims 1 to 5
  • Key strategic theme objectives including ROACE, EBITDA and capital employed.

 

Webcast presentation

Murray Auchincloss, chief financial officer and Craig Marshall, SVP investor relations held a webcast presentation and Q&A to discuss the new framework on 15 March 2021.

Downloads