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, commencing 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
Our new reporting structure comprises five segments:
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 will report performance on both a pre-tax and post-tax basis and will also disclose EBITDA for the first three segments.
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 will be reported within three different segments as we focus on maximising commercial value:
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.
The customers & products segment comprises our customer facing businesses (convenience & mobility) and our products businesses (refining & trading).
We will significantly enhance our disclosures in this segment, including:
These enhanced disclosures, some of which will be on an annual basis, will 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 will also facilitate improved comparison with peers.
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:
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.
We will 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.
Annual updates on previously disclosed milestones will include:
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.
We aim to be a very different kind of energy company by 2030 as we scale up investment in low-carbon, focus our oil and gas production and make headway on reducing emissions.
We deliver heat, light and mobility products and services to people all around the world in ways that will help to drive the transition to a lower carbon future
As we reinvent bp for a lower carbon future, we remain committed to delivering for the millions of people who depend on us