BP 2014 Annual Report Download - page 135

14. Investments in joint ventures
The following table provides aggregated summarized financial information relating to the group’s share of joint ventures.
$ million
2014 2013 2012
Sales and other operating revenues 12,208 12,507 12,507
Profit before interest and taxation 1,210 1,076 778
Finance costs 125 130 113
Profit before taxation 1,085 946 665
Taxation 515 499 405
Profit for the year 570 447 260
Other comprehensive income (15) 38 (52)
Total comprehensive income 555 485 208
Non-current assets 11,586 11,576
Current assets 2,853 3,095
Total assets 14,439 14,671
Current liabilities 2,222 2,276
Non-current liabilities 3,774 3,499
Total liabilities 5,996 5,775
Net assets 8,443 8,896
Group investment in joint ventures
Group share of net assets (as above) 8,443 8,896
Loans made by group companies to joint ventures 310 303
8,753 9,199
Transactions between the group and its joint ventures are summarized below.
$ million
Sales to joint ventures 2014 2013 2012
Product Sales
Amount
receivable at
31 December Sales
Amount
receivable at
31 December Sales
Amount
receivable at
31 December
LNG, crude oil and oil products, natural gas 3,148 300 4,125 342 4,272 379
$ million
Purchases from joint ventures 2014 2013 2012
Product Purchases
Amount
payable at
31 December Purchases
Amount
payable at
31 December Purchases
Amount
payable at
31 December
LNG, crude oil and oil products, natural gas, refinery operating
costs, plant processing fees 907 129 503 51 1,107 116
The terms of the outstanding balances receivable from joint ventures 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 statementin
respect of bad or doubtful debts. Dividends receivable are not included in the table above.
15. Investments in associates
The following table provides aggregated summarized financial information for the group’s associates as it relates to the amounts recognized in the
group income statement and on the group balance sheet.
$ million
Income statement Balance sheet
Earnings from associates –
after interest and tax
Investments
in associates
2014 2013 2012 2014 2013
Rosneft 2,101 2,058 – 7,312 13,681
TNK-BP –– 2,986 ––
Other associates 701 684 689 3,091 2,955
2,802 2,742 3,675 10,403 16,636
The associate that is material to the group at both 31 December 2014 and 2013 is Rosneft. In 2013, BP sold its 50% interest in TNK-BP to Rosneft and
increased its investment in Rosneft. The net cash inflow in 2013 relating to the transaction included in Net cash used in investing activities in the cash
flow statement was $11.8 billion. From 22 October 2012, the investment in TNK-BP was classified as an asset held for sale and, therefore, equity
accounting ceased. Profits of approximately $738 million and $731 million were not recognized in 2013 and 2012 respectively as a result of the
discontinuance of equity accounting.
Financial statements
BP Annual Report and Form 20-F 2014 131