BP 2009 Annual Report Download - page 3

BP Annual Report and Accounts 2009
Information about this report
1
This document constitutes the Annual Report and Accounts of BP p.l.c. for the year ended 31 December 2009 in accordance with UK requirements
and is dated 26 February 2010. This document also contains information that will be included in the company’s Annual Report on Form 20-F 2009 in
accordance with the requirements of the US Securities and Exchange Commission (SEC). Such information will be supplemented and may be updated
at the time of filing that document with the SEC, or later amended, if necessary.
The Annual Report and Accounts for the year ended 31 December 2009 contains the Directors’ Report, including the Business Review and
Management Report, on pages 3-80 and 93-108, 110 and 193. The Directors’ Remuneration Report is on pages 81-92. The consolidated financial
statements are on pages 109-192. The report of the auditor is on page 111 for the group and page 194 for the company.
BP Annual Report and Accounts 2009 and BP Annual Review 2009 may be downloaded from www.bp.com/annualreport. No material on the
BP website, other than the items identified as BP Annual Report and Accounts 2009 and BP Annual Review 2009, forms any part of those documents.
Reconciliation of profit for the year to replacement cost profit
For the year ended 31 December $ million
2009 2008 2007
Profit before interest and taxation 26,426 35,239 32,352
Finance costs and net finance expense/income relating to pensions and other post-retirement benefits (1,302) (956) (741)
Taxation (8,365) (12,617) (10,442)
Minority interest (181) (509) (324)
Profit for the year attributable to BP shareholders 16,578 21,157 20,845
Inventory holding (gains) losses, net of tax (2,623) 4,436 (2,475)
Replacement cost profita13,955 25,593 18,370
Exploration and Production 24,800 38,308 27,602
Refining and Marketing 743 4,176 2,621
Other businesses and corporate (2,322) (1,223) (1,209)
Consolidation adjustment – unrealized profit in inventory (717) 466 (220)
Replacement cost profit before interest and taxation 22,504 41,727 28,794
Finance costs and net finance expense/income relating to pensions and other post-retirement benefits (1,302) (956) (741)
Taxation on a replacement cost basis (7,066) (14,669) (9,359)
Minority interest (181) (509) (324)
Replacement cost profit attributable to BP shareholders 13,955 25,593 18,370
Per ordinary share – cents
Profit for the year attributable to BP shareholders 88.49 112.59 108.76
Replacement cost profit 74.49 136.20 95.85
Dividends paid per ordinary share – cents 56.00 55.05 42.30
– pence 36.417 29.387 20.995
Dividends paid per American depositary share (ADS) – dollars 3.360 3.303 2.538
aReplacement cost profit reflects the replacement cost of supplies. The replacement cost profit for the year is arrived at by excluding from profit inventory holding gains and losses and their associated
tax effect. Inventory holding gains and losses represent the difference between the cost of sales calculated using the average cost to BP of supplies incurred during the year and the cost of sales
calculated on the first-in first-out method, including any changes in provisions where the net realizable value of the inventory is lower than its cost. Inventory holding gains and losses, for this purpose,
are calculated for all inventories except for those that are held as part of a trading position and certain other temporary inventory positions. BP uses this measure to assist investors in assessing BP’s
performance from period to period. Replacement cost profit for the group is a non-GAAP measure.
On pages 4-9, references within BP Annual Report and Accounts 2009 to ‘profits’, ‘results’ and ‘return on average capital employed’ are to those
measures on a replacement cost basis unless otherwise indicated.
BP p.l.c. is the parent company of the BP group of companies. Unless otherwise stated, the text does not distinguish between the activities
and operations of the parent company and those of its subsidiaries.
The term ‘shareholder’ in this Annual Report and Accounts means, unless the context otherwise requires, investors in the equity capital of
BP p.l.c., both direct and/or indirect. As BP shares, in the form of ADSs, are listed on the New York Stock Exchange (NYSE), an Annual Report on
Form 20-F will be filed with the SEC in accordance with the US Securities Exchange Act of 1934. When filed, copies may be obtained free of charge
(see page 108).
Cautionary statement
BP Annual Report and Accounts 2009 contains certain forward-looking statements within the meaning of the US Private Securities Litigation Reform
Act of 1995 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. For more details, please see Forward-looking statements on page 21.
The registered office of BP p.l.c. is 1 St James’s Square, London SW1Y 4PD, UK. Tel [phone].
Registered in England and Wales No. 102498. Stock exchange symbol ‘BP’.