BP 2009 Annual Report Download - page 145

BP Annual Report and Accounts 2009
Notes on financial statements
Financial statements
23. Investments in associates
–
143
The significant associates of the group are shown in Note 43. The principal associate in 2009 is TNK-BP. Summarized financial information for the
group’s share of associates is set out below.
$ million
2009 2008 2007
TNK-BP Other Total
Sales and other operating revenues 17,377 8,301 25,678 11,709 9,855
Profit before interest and taxation 3,178 811 3,989 1,065 947
Finance costs 220 19 239 33 57
Profit before taxation 2,958 792 3,750 1,032 890
Taxation 871 125 996 234 193
Minority interest 139 – 139 –
Profit for the year 1,948 667 2,615 798 697
Non-current assets 13,437 4,573 18,010 4,292
Current assets 4,205 1,887 6,092 1,912
Total assets 17,642 6,460 24,102 6,204
Current liabilities 3,122 1,640 4,762 1,669
Non-current liabilities 4,797 2,277 7,074 1,852
Total liabilities 7,919 3,917 11,836 3,521
Minority interest 582 – 582 –
9,141 2,543 11,684 2,683
Group investment in associates
Group share of net assets (as above) 9,141 2,543 11,684 2,683
Loans made by group companies to associates – 1,279 1,279 1,317
9,141 3,822 12,963 4,000
Our investment in TNK-BP was reclassified from a jointly controlled entity to an associate with effect from 9 January 2009. See Note 22 for
further information.
Transactions between the group and its associates are summarized below.
$ million
Sales to associates 2009 2008 2007
Amount Amount Amount
receivable at receivable at receivable at
Product Sales 31 December Sales 31 December Sales 31 December
LNG, crude oil and oil products, natural gas, employee services 2,801 320 3,248 219 697 60
Purchases from associates 2009 2008 2007
Amount Amount Amount
payable at payable at payable at
Product Purchases 31 December Purchases 31 December Purchases 31 December
Crude oil and oil products, natural gas, transportation tariff 5,110 614 4,635 295 2,905 574
The terms of the outstanding balances receivable from associates are typically 30 to 45 days. The balances are unsecured and will be settled in cash.
There are no significant provisions for doubtful debts relating to these balances and no significant expense recognized in the income statement in
respect of bad or doubtful debts.
The amounts receivable and payable at 31 December 2009, as shown in the table above, exclude $376 million due from and due to an
intermediate associate which provides funding for our associate The Baku-Tbilisi-Ceyhan Pipeline Company. These balances are expected to be settled
in cash throughout the period to 2015.
Dividends receivable at 31 December 2009 of $19 million are also excluded from the table above.