BP Annual Report and Form 20-F 2011 - Company Reporting

Notes on financial statements46. Condensed consolidating information on certain US subsidiariesBP p.l.c. fully and unconditionally guarantees the payment obligations of its 100%-owned subsidiary BP Exploration (Alaska) Inc. under the BP PrudhoeBay Royalty Trust. The following financial information for BP p.l.c., BP Exploration (Alaska) Inc. and all other subsidiaries on a condensed consolidatingbasis is intended to provide investors with meaningful and comparable financial information about BP p.l.c. and its subsidiary issuers of registeredsecurities and is provided pursuant to Rule 3-10 of Regulation S-X in lieu of the separate financial statements of each subsidiary issuer of public debtsecurities. Investments include the investments in subsidiaries recorded under the equity method for the purposes of the condensed consolidatingfinancial information. Equity income of subsidiaries is the group’s share of profit related to such investments. The eliminations and reclassificationscolumn includes the necessary amounts to eliminate the intercompany balances and transactions between BP p.l.c., BP Exploration (Alaska) Inc. and othersubsidiaries. The financial information presented in the following tables for BP Exploration (Alaska) Inc. for all years includes equity income arising fromsubsidiaries of BP Exploration (Alaska) Inc., some of which operate outside of Alaska and excludes the BP group’s midstream operations in Alaska that arereported through different legal entities and that are included within the ‘other subsidiaries’ column in these tables. BP p.l.c. also fully and unconditionallyguarantees securities issued by BP Capital Markets p.l.c. and BP Capital Markets America Inc. These companies are 100%-owned finance subsidiaries ofBP p.l.c.Income statement$ millionFor the year ended 31 December 2011Issuer GuarantorBPExploration(Alaska) Inc. BP p.l.c.OthersubsidiariesEliminationsandreclassifications BP groupSales and other operating revenues 6,159 – 375,517 (6,159) 375,517Earnings from jointly controlled entities – after interest and tax – – 1,304 – 1,304Earnings from associates – after interest and tax – – 4,916 – 4,916Equity-accounted income of subsidiaries – after interest and tax 313 26,158 – (26,471) –Interest and other revenues 10 242 664 (320) 596Gains on sale of businesses and fixed assets – 1 4,129 – 4,130Total revenues and other income 6,482 26,401 386,530 (32,950) 386,463Purchases 978 – 290,799 (6,159) 285,618Production and manufacturing expenses 1,280 – 22,865 – 24,145Production and similar taxes 1,684 – 6,596 – 8,280Depreciation, depletion and amortization 335 – 10,800 – 11,135Impairment and losses on sale of businesses and fixed assets – – 2,058 – 2,058Exploration expense 4 – 1,516 – 1,520Distribution and administration expenses 27 1,048 12,992 (109) 13,958Fair value gain on embedded derivatives – – (68) – (68)Profit before interest and taxation 2,174 25,353 38,972 (26,682) 39,817Finance costs 32 47 1,378 (211) 1,246Net finance (income) expense relating to pensions andother post-retirement benefits – (533) 270 – (263)Profit before taxation 2,142 25,839 37,324 (26,471) 38,834Taxation 729 139 11,869 – 12,737Profit for the year 1,413 25,700 25,455 (26,471) 26,097Attributable toBP shareholders 1,413 25,700 25,058 (26,471) 25,700Minority interest – – 397 – 3971,413 25,700 25,455 (26,471) 26,097Financial statementsBP Annual Report and Form 20-F 2011 253