Stock Analysis on Net

BP PLC (NYSE:BP)

This company has been moved to the archive! The financial data has not been updated since March 3, 2015.

Analysis of Debt

Microsoft Excel

Total Debt (Carrying Amount)

BP PLC, balance sheet: debt

US$ in millions

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Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Current finance debt 6,877 7,381 10,030 9,044 14,626
Non-current finance debt 45,977 40,811 38,767 35,169 30,710
Total finance debt (carrying amount) 52,854 48,192 48,797 44,213 45,336

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

Debt item Description The company
Total finance debt (carrying amount) Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. BP PLC total debt decreased from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level.

Total Debt (Fair Value)

Microsoft Excel
Dec 31, 2014
Selected Financial Data (US$ in millions)
Total finance debt (fair value) 53,825
Financial Ratio
Debt, fair value to carrying amount ratio 1.02

Based on: 20-F (reporting date: 2014-12-31).


Weighted-average Interest Rate on Debt

Weighted-average interest rate on debt: 1.62%

Interest rate Debt amount1 Interest rate × Debt amount Weighted-average interest rate2
3.00% 14,285 429
6.00% 871 52
1.00% 36,275 363
1.00% 1,423 14
Total 52,854 858
1.62%

Based on: 20-F (reporting date: 2014-12-31).

1 US$ in millions

2 Weighted-average interest rate = 100 × 858 ÷ 52,854 = 1.62%


Interest Costs Incurred

BP PLC, interest costs incurred

US$ in millions

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12 months ended: Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Finance costs 1,148 1,068 1,125 1,246 1,170
Interest capitalized 185 238 378 347 254
Finance costs incurred 1,333 1,306 1,503 1,593 1,424

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

Debt item Description The company
Finance costs Amount of the cost of borrowed funds accounted for as interest expense for debt. BP PLC finance costs decreased from 2012 to 2013 but then increased from 2013 to 2014 exceeding 2012 level.
Interest capitalized Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. BP PLC interest capitalized decreased from 2012 to 2013 and from 2013 to 2014.
Finance costs incurred Total interest costs incurred during the period and either capitalized or charged against earnings. BP PLC finance costs incurred decreased from 2012 to 2013 but then slightly increased from 2013 to 2014.

Adjusted Interest Coverage Ratio

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Dec 31, 2014 Dec 31, 2013 Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Selected Financial Data (US$ in millions)
Profit (loss) for the year attributable to BP shareholders 3,780 23,451 11,582 25,700 (3,719)
Add: Net income attributable to noncontrolling interest 223 307 234 397 395
Add: Income tax expense 947 6,463 6,993 12,737 (1,501)
Add: Finance costs 1,148 1,068 1,125 1,246 1,170
Earnings before interest and tax (EBIT) 6,098 31,289 19,934 40,080 (3,655)
 
Finance costs incurred 1,333 1,306 1,503 1,593 1,424
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 5.31 29.30 17.72 32.17 -3.12
Adjusted interest coverage ratio (with capitalized interest)2 4.57 23.96 13.26 25.16 -2.57

Based on: 20-F (reporting date: 2014-12-31), 20-F (reporting date: 2013-12-31), 20-F (reporting date: 2012-12-31), 20-F (reporting date: 2011-12-31), 20-F (reporting date: 2010-12-31).

2014 Calculations

1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Finance costs
= 6,098 ÷ 1,148 = 5.31

2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Finance costs incurred
= 6,098 ÷ 1,333 = 4.57


Solvency ratio Description The company
Adjusted interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). BP PLC adjusted interest coverage ratio improved from 2012 to 2013 but then deteriorated significantly from 2013 to 2014.